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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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Not one mention of pensions in the entire document. Here’s an article dated April 4, 2018 written by Raphael Janove, an associate at the Chicago law firm Eimer Stahl, titled, “The Takings Clause in Bankruptcy and How It Might Protect Illinois’ Creditors.” It’s on the Bloomberg BNA website. https://www.bna.com/takings-clause-bankruptcy-n57982090844 The article makes a distinction between pre-petition collateral and post-petition collateral. It identifies various bonds, bond funds, and bond securitization present in Illinois, such as Chicago Sales Tax Securitization Corporation (STSC), the General Obligation Bond Retirement and Interest Fund (GOBRI), the Build Illinois Bonds Retirement and Interest Fund (BIBRI), and some… Read more »