-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
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.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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Until the voters and their elected leaders acknowledge that more money is needed to pay into the pension funds, we will continue to pay even more money down the road.
As I’ve stated here many times, pay more now or pay even more later.
In my personal budget I always pay the oldest bills first. Illinois on the other hand always finds new ways to spend money without providing for its old debts namely the pensions. No plan is needed on the pension issue other than quit new spending until the old bills, pensions, are paid. I know though Illinois voters think old bills are to be ignored so that funds can be devoted to silly new feel good vote buying programs.