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"Thanks to a roaring stock market and a massive increase in taxpayer funding, Illinois is making progress in taming the unfunded pension liability monster that has haunted state finances for a generation."
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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Pension debt will be the number 1 cause of the death of Illinois.
Crain’s gives credit to a large influx of taxpayer cash, which should not be the solution to the pension problems. The solution is cutting spending and benefits.
The “benefits shall not be diminished” phrase that is so often quoted by left needs to be frozen at the then level at retirement for anyone in the system and absolutely eliminated going forward. Excessive future benefits that people feel entitled to (on the backs of others) should never be part of the argument to keep grossly obscene spending at its current levels.
It’s not quoted by the left but rather the constitution. It was sponsored by the right when it was introduced over 50 years ago.
Your argument has already received a response from the courts. Pensioners have a right to their pension which includes a 3% annual increase. This has been known for decades. Any shortages are the responsibility of state and its taxpayers. There is no getting around that.
Bankruptcy is looming. Game changer.
States can’t go bankrupt. Thanks for playing.
…yet
There is nothing “looming” for bankruptcy for a state. You’re just playing make believe at this point.
“… at this point.” It’s difficult to tell whether you personally support the Pritzker agenda in Illinois or whether you are simply pointing out flaws in the Chicago Way or the Illinois Way. Either Way, your comments are useful in reminding us that the politics and the law and the society here are profoundly out of touch with the national voting majority that gave Trump his “mandate.” It won’t surprise you when Trump sends I.C.E. and the National Guard to Chicago and begins an alien and thug roundup. It’s the new and more emphatic form of his (and others’) revolution.… Read more »
“It’s my prediction that, when Trump and his supporters [I didn’t vote for him] get around to fixing finances, there’ll be some changes to the Bankruptcy Code enabling state bankruptcy.” Trump and his “supporters” don’t have the votes. How do you think this would actually happen? Do you honestly believe he has 60 votes for something that he hasn’t even indicated is a priority? Trump is only left with Executive Orders that can’t change the bankruptcy code. Also, “his supporters” don’t have a vote in the matter as it would be up to congress. FYI, not allowing bankruptcy isn’t “Pritzker’s… Read more »
Legal reality. Political reality. Does fiscal reality mean anything?
Yes. That’s why I say taxes will go up and/or services will be cut. That’s the fiscal reality based on the legal and political reality.
Political reality will determine legal reality and I predict the right turn will happen more quickly than you hope or envision. Being an Illinois resident clouds your vision but Cook County is seriously out of step and Trump is marching north. It’s conjecture all the way down but when one controls the purse and the army he’s got more power than the press and its Medill and Columbia grads who are getting unemployment comp. The jury is out on where this decade will end but maybe we’ll both be around to crow or eat crow. If Chicago still stands, it’d… Read more »
Shocking Hinz would give more coverage of the WP position on pension disater vrs his pals at CTBA!! What’s going on?? Must be trouble in paradise??
Keep in mind that the year covered for this new report (7/1/33 to 6-30-24) was an exceptional year for the markets, with the S&P’s total return being about 25%. That boosted pension assets and improves funding levels. And props to Hinz for doing a fair job on this.
And monster $ billions in fed COVID funds which freed up cash to make big pension payments. But still not the actuarial recommended…..but the COVID $good times$ are now gone for Illinois