-- 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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14 million a year against a likely budget deficit this year near $1B? A tiny dollop of revenue, but likely to chase the most productive away? How will this work?
Five minutes have passed; so, it’s time for another goofy idea to fund pensions. Once again, more taxes on the affluent like this real estate transfer tax will accelerate the rate of the affluent relocating to another state. Remember, whatever you do, don’t try to resolve the underlying problem of bloated salaries, pensions, and health care benefits.