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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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I always laugh a little at articles like this. With Crain’s I can never tell if they are letting their inner Millennial socialist out to gleefully report a “stick it to the man,” story, or if they are genuinely concerned about the impact on business. The idea that the burden shifted to “commercial landlords” is absurd. Yes, in the short term there will be some small dollar amount that the landlord will have to eat, but as leases are up and renewed (usually 1, 2 and maybe even 3 year leases), guess who pays for those increases? The working guy/gal… Read more »
“All you have in the end is a bunch of rentals that cost that much more for everyone. The landlord isn’t going to absorb any “shift,” whatsoever.”
Incorrect. If it’s too expensive, then renters will look in other parts of the county or leave the county entirely. So less demand for higher rents. It’s not socialist, its just renter unfriendly.
Not really. We’re not talking about pricing people out, just costing them more. It’s like the gas tax. Yes, there is some small coefficient of demand drop, but there will likely still be someone who will pay it. Less housing stock will be built to offset the lower demand. People live where their jobs are, unless you are retired. Are you going to go live in Kane County and work downtown? Maybe some will, but not renters. No, you’ll pay the extra hundred bucks a month in rent to live closer, which is what we’re talking about here. Long term,… Read more »
“The big disparity has shifted the tax burden from homeowners to commercial landlords. ”
What a business friendly tax environment! This will certainly bring more businesses and investment to vacant strip malls, empty office buildings and idle commercial buildings all over Chicagoland!!
Who is responsible for this amazing thing?
Be careful what you wish for, north shore progressives, because you might actually get it.