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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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Ald. Brendan Reilly said it’s “great” Johnson is “obligating more of that money so we don’t have to turn it back.”
Wouldn’t it be better to “turn it back” to reduce the federal deficit?
I am a much happier person when I avoid WirePoints… Isn’t that sad?
Chicago deserves to go up in flames – where’s that damn cow when we need her… No, not the old one or the new one – the actual kind that can kick over the lamp…
The Chicago blow it before it’s gone plan.
That’s the general mindset of government for eons. I was on active duty in the Army long ago during the Vietnam War era and had management duties where I had accounting responsibilities. That was the drumbeat clearly given to me at new budgeting time: spend what’s already authorized for this fiscal year even if you have to dream up reasons for doing so. The higher level command needs justification to ask for more funds for the next fiscal year, after all. You quickly learn to get that message soon enough if you want your own world to keep spinning without… Read more »
It truly is insane, and it is across party lines. Some less populated states will tear up perfectly good roads and re-pave them because they have to use their allotted funds for that fiscal year. Of course Pritzker saw fit to double the gasoline tax in Illinois and we now have cosmetic work done to bridges that are structurally sound. Crazy.
Thank You for your Service!!!
I earlier worked with an exceptionally good CPA/lawyer who likewise worked in Saigon during the war on procurement and accounting. He told me it took him about one day to conclude there was no way we would win because of all the waste and stupidity.
Sprinkling magic money to cronies. Reilly pegs it well. This isn’t much different than selling parking and skyway for short term spending desires.