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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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This will be interesting but I think it is part of the strategy to pass the amendment to allow a graduated income tax. Be prepared for the oncoming media storm. First the confabulation the effect of what are currently undefined cuts. Then suggested cuts will be released that target the most vulnerable. Someone will be hurt. Children, elderly, veterans, state employees. Human suffering on an previously unknown scale. Every rent seeking defendant of state spending will decry the cuts. Health care, social services, public union ..etc. But instead of demanding pension reform they will demand more tax revenue.. Graduated income… Read more »
That’s our feeling exactly. If he is serious about it, he would just do it and not condition anything on a progressive income tax (which, in any event, won’t raise much and is already spent).
Agree, very fishy. And i’m sure still blame rauner & mr t
Mark- What still concerns me IF the graduated tax does not pass even with them possibly dangling some sort of minor property tax relief at us what would Plan B be? It is always a good idea to plan ahead for the unexpected that’s why we have insurance. But there are no insurance plans for out of control spendthrift politicians who really cannot grasp the concept of live WITHIN your means (just raise the means). Think of what the premiums would be! They could just raise the state tax across the board. The 1% state wide property tax would be… Read more »
That kind of minor property tax could they even offer? 55% of my bill is the local school district, and the rest is the park district, the township, and the mosquito abatement district. Not sure show the state could force them to all accept less. They all have pensions to pay too.