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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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As far as I can tell this news has not been on local Rockford stations yet. Will let them know soon.They did report a few weeks ago that average Rockford sale prices for the month (Oct) was around $143K much higher than the year before. But what they don’t say is what was the average purchase price of those homes sold? Most likely they paid much more than what they got so the news outlets are not lying just withholding some of the facts. With tax’s still higher than the mortgage how do you build equity? In about 24 years… Read more »
Right, you read it here first. Thank one of our smart, regular readers who brought it to my attention.
Put another way, We seem to be at the point where, if you want to buy a home in IL and live there for 20 years, you’d have to buy the home for $0 to break even due to the losses from depreciation, high property taxes, high other taxes, and high user fees, all from being an IL resident. I’m looking at homes in the Chicago area, but they’re not listed at $0 yet. I can be patient.
Yup. When a former $300,000 the home is free, I won’t mind paying $12,000 in real estate taxes. Basically, you will be renting from the state, which is what you are doing now anyway without realizing it. It’s just that now, you are being grossly ripped off. Capitalism will fix this in time. It’s not perfect, but it works.
Here in Rockford on the $300K home you would pay $13,413 in tax’s or $402,241 over 30 years. Even if you bought your home from a tax sale at pennies on the dollar or a foreclosure the city thru their quadrennial reassessment they would value it compared to similar properties so you would pay the full value amount in tax’s within a few years. I spoke to many who after thinking they got a deal are now sacked with huge tax’s. Those who flipped their home probably made out well. Taxing bodies have every angle figured out except when taxpayers… Read more »
Suicidal, confiscatory taxes.
I gotta ask. Is that assuming the current tax rate stays constant for 30 years, or did you add the factor of traditional increases in the tax rate? In DuPage the assessment may go up or down, but the tax rate always ratchets up.
The tax rate will fluctuate over the years but according to PTELL rules taxing bodies can get was was levied the year before plus up to 5% or 1/2 of inflation whichever is less if they want to so tax’s may not go down. So if values keep going down the tax rate keeps going up to compensate a real Catch-22. But if values go up they are limited to 5% and the tax rate will go down but they can collect the same as the year before. Unless all or most of the taxing bodies reduce their levy and… Read more »
Peoria & Rockford highest foreclosure rates in country while springfield and the news media are silent??? Pathetic
They don’t want to scare the children. That’s part of why our readership is soaring and theirs is flat.