Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
There has also been an article suggesting empty Chicago Public Schools be converted into affordable residences for retired Chicago teachers. This could lead to counting the cost savings as part of any pension payment or assessing a 2nd state income tax on those who move out of Illinois. Both actions reduce the pension fund deficit.
You can’t pay pensioners with housing in lieu of actual cash payment. You could sell any buildings and put that money into the pensions funds. You also can’t tax their income if they move out of state. That violates federal law.
Laws can change, we never authorized these outrageous pensions.
Hmm, we now have a public charge jobs program. Lori should expand it to other nearly empty schools for a dem party twofer.