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"We see some potential for broad use of the intercept mechanism given chronic underfunding among a substantial share of the state's approximately 656 suburban and downstate public-safety pension plans," the report states. "Should use of the intercept law become commonplace, it could cause significant credit pressures across a sector that has already struggled to effectively deal with rising pension costs."
The 2011 law, which directs the state to seize income tax, sales tax and other money that should go to a municipality and redirect it to pensions.
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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