Totaling the unsustainable tax increases and windfall revenue during Pritzker Administration – Wirepoints
May 26, 2026
23 Comments
With $162 billion more from taxpayers, couldn’t you deliver a few bond upgrades, too
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A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Borrow, Pritzker and Mendoza said Illinois is in the best fiscal situation in years, but again they borrowed more money unrealistic
What Illinois Pensioner in their right mind would take a “Buyout”? They have a gold plated entitlement happily paid out by the most pro-public sector union state in the country and a State govenrment that will fight tooth and nail to pay out these criminally ill-gotten gained pensions over and above the taxpayers, the law, fiscal responsibility and common sense. Illinois government EXISTS to support the public sector union leeches and will do anything and everything to protect these vermin. So…. why take a buyout? Of course at some point the financial reality will destroy this mythological financial model and… Read more »
Get your blood pressure down before you die of a stroke. None of us can control our environment, but we move to another one. Simple enough.
Borrow your way out of debt…what a neat concept
“We have not seen any actuarial analysis for the cost of the borrowing compared to the savings ….”
So we don’t even know if this idea works, and we’re doubling down on it.
What we do know for a certainty is, “The $1 billion in borrowing to pay for the extended buyout program will have to be paid back by taxpayers with interest.”
How “Illinois”…..
Some details and critique at https://www.illinoispolicy.org/illinois-may-borrow-1b-for-pension-buyouts/ — from February so may not be the last word.
I presume that buyout money comes from bond proceeds rather than system assets. Therefore, some reduction in system liabilities. Basically, transfers system liabilities to taxpayers so it’s a combination of can-kick and an invitation to adverse selection by retirees with diminished life expectancies. With higher interest rates these days the “present value” might be lower than previously but that depends how that value will be calculated. Lots of room for manipulation there. Does present value include anticipated COLA increases over the retiree’s life expectancy?
The Governor’s spin is that this program already has saved the state $1.5B. Maybe, but I bet that assumes that all such people choosing it have normal life expectancies. Even common sense says that’s not likely true. The whole concept as its designed invites those who will use “adverse selection,” people having some reason to believe they will not have normal lifespans. If so, the eventual savings are likely a reduced savings figure and maybe greatly reduced. In theory, this program may even cost the state more money if the preponderance people who take it live only a few years… Read more »
One supposes that the system investments have recently taken a big hit. So, dumping as many liabilities as possible may restore the asset||liability balance. I would also expect that they’ll monkey with the discount rates to get the lump sums as high as possible. Let’s not forget about the consultants’ and bond lawyers’ and actuaries’ fees paid up-front. Best of all, nobody understands what’s going on and the results won’t be evident for a decade or so. Governmental immunity plus votes plus payoffs now easily trump future opprobrium. Three birds in the hand vs. one in the bush.