-- 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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A good analysis metric is: “Percentage of Household Income” necessary to pay property taxes. A household must have a budget, and a required allocation for property taxes is not then available for other budgetary needs or discretionary spending. BLS produces detailed Household Expenditures data on a regular basis. In America, households across all regions and income brackets pay around 4% of hh income for real estate taxes. In Woodstock Illinois, with a 3.5% property tax rate, households must pay around 9% of household income for property taxes. Here is an example: Home assessed at $200,000 after deducting homestead exemption. P-tax… Read more »