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In addition to extending the program through 2028, the proposal introduced Tuesday would reduce maximum annual contributions awarded by the state to $50 million from $75 million. Instead of the 75% tax credit, the donors would get a 100% credit for the first $5,000 they contribute, then a maximum 65% tax credit for any additional amount if the children they sponsor live in underserved communities and a 55% credit if the children don’t. The annual limit for tax credits of $1 million would also be reduced to $500,000.
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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The CTU members children deserve a good private education.
Do I understand this right? A person can make a donation to the program and get a 100% state tax credit, up to $5,000?
I think that’s the change they’re proposing. But they’re also trying to reduce the cap to $50 million.
Here’s what they’re really trying to do: Sour wealthier big time donors in order to starve the program.