-- 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.
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I never understood why police and fire have separate pension systems in each municipality. Is there anything preventing a town from merging those today, besides political will? Also, not a fan of transferring ownership of taxpayer assets to a tiny subset of taxpayers, some of which no longer reside in the state. Are they going to over-estimate market value to make the pension appear to be better funded? What happens if the pensions have to liquidate physical assets to pay benefits? Guessing that state retiree in Florida expects currency, not a chunk of the Tri-State Tollway. Do highways become tollways… Read more »