-- 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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It should be interesting to see how the asbestos fiasco in Philly schools plays out. The state reform commission that ran the district until a year ago tried to make teachers pay more for their healthcare. The teachers’ union refused, of course. Now those pension and benefits costs are crowding out building repair, so what is PFT doing? Suing the school district, of course, which will leave less money for building repair. Money doesn’t grow on trees but apparently it comes from a magic ATM with infinite money. Incidentally, real ATM’s only hold around $10,000.
https://thenotebook.org/articles/2020/02/12/two-more-schools-to-close-for-asbestos-cleanup/
“But of those who place reform at a 10, only 67% support reducing pensions.” Here in lies the problem. These are people that support “reform” but do not support reducing pensions. You can’t make this stuff up. In fairness politicians use the word “reform” to make one group lose money and another group gets the benefit. Does their definition of reform include increasing taxes (losing taxpayer) and increasing payments to (winning pensioners) pension funds? Look at SS reform. Some people think the cap should be eliminated (increasing taxpayer burden) while others think reform may be means testing or reducing benefits.… Read more »
Yes! Money does grows on trees but the trees look more like homes and businesses rather than the standard tree with leaves. Since they believe money grows on trees I will plant trees that grow $100 BILLS (instead of leaves) to replace my $20 and $50 trees. Can’t pay my tax’s with just trees growing $50 dollar bills. Hope they don’t find out about my magic beanstalk and the goose that lays the golden eggs!!