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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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Remember that Chicago Public Schools (CPS) aka the City of Chicago School District 299 and the Chicago Teachers Union (CTU) are in negotiations right now over a new collective bargaining agreement. The old contract expired June 30, 2015. What about cutting administrator and teacher salaries instead of a $500 million loan from the pension fund? How much of the $500 million loan would go to hikes and perks in the newly negotiated collective bargaining agreement. Mayor Emanuel provided salary hikes in the previous agreement negotiated in 2012, after the teachers went on strike. The pension fund was in poor shape… Read more »
How much more evidence is needed to conclude that the best way out of the hiked pension mess is a statewide voter referendum to repeal in its entirety the pension sentence added to the Illinois State Constitution on December 15, 1970. Elected delegates including Michael Madigan and the first Mayor RIchard Daley rewrote the state constitution in 1970 that was approved by voters on December 15, 1970. The pension sentence was one of many changes to the state constitution in 1970. The result of the pension sentence has been hiked pensions, not better funded pensions. The pension benefits were hiked… Read more »
Exactly right. And remember that in this case, and for other municipal pensions, you do not need to repeal the constitutional provision. Just stop paying into the old one and fund a new, supplementary one in reasonable, affordable amounts. Maybe not even necessary to put the old one into bankruptcy.
Simple solution just dont pay the contractual obligation. Afterall the constitution says a pension obligation is a contractual obligation that shall not be diminished. So simply ignore the contract and create new one at lessor benifits and such (waving a wand) abracadabra will not be a diminishment or impairment. So simple. So easy. Amazing it hasnt been done. Magical. Such slight of hand Remember…The hand is quicker than the eye.