-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
Typing on behalf of the Illinois Democratic Party for their NPR-owned pamphlet, Tina Sfondeles and Mitchell Armentrout consolidate the talking points from JB the Hutt and his aligned organizations, such as the day drinkers of the Civic Federation. Checking his authorship history at NPR/Sun-Times, one can see that Mitch is a particularly useful idiot to Illinois’ elite political animals. I’ll help you, Mitch. I’ll quote your typing and provide the context you eschewed. “The Governor’s Office of Management and Budget in November projected a $3.2 billion deficit — and warned that “the ability to fund new programs will be severely limited.”…”… Read more »
High debt states that harbor high debt sanctuary cities with already high taxes, deficits, crime and poor fiscal stewardship face a dismal outlook. While hardly alone, Illinois and Chicago are good examples of what lies ahead at the local level. Masking the problem, Chicago and Illinois have benefited from Covid funds and billions in Federal grants. After much infighting and a new round of tax hikes & fees, Chicago’s 2025 budget was passed. Already burdened by some of the highest local taxes, the liability heavy Chicago is facing a near $2 billion 2026 deficit. Looking to the state for solutions is pointless because Illinois is also facing a… Read more »
Previous studies, including by Stanford University and WP, estimated Illinois’ debt to be quite a bit higher than $300B.
Given that actuaries can manufacture the output, I don’t think we can be sure about anything. One thing for sure, the debt is higher than the official numbers. We can also be sure that the Trump administration is going to decimate state and local governments, entities that were already in fiscal trouble. The unwinding of multi-level debt accumulation across the world is going to be painful