-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
“The proposed budget – with or without graduated tax revenues – includes the full $8.6 billion general revenue fund contribution to the state’s pension fund that is mandated by law. ” Left unsaid in that article, Pritzker’s budget address, and in the Governor’s budget brief is the “full” “contribution to the state’s pension fund that is mandated by law” is less than the actuarial required contribution. And, the unfunded pension liability will continue to grow. Currently the 5 state pension funds collectively are only about 40% funded. http://www.reuters.com/article/us-illinois-pensions/illinois-unfunded-pension-liability-rises-to-137-3-billion-idUSKBN1Y82ZP There is no good reason to hide such information, and doing so… Read more »
I would like to see another picture painted. One in which there are no Democratic politicians left in Illinois for at least 3 years. What would the state be like in 2 or 3 years? Anyone care to guess? Better-Worse-Same!
I understand what the Gov says about long-term litigation towards pension cuts (or reductions in the rate of growth), but that is the only solution to save the plans. sure, it might takes years, but under the current projections IL will need a decade to make any real progress towards the funding ratio. Turning off the 3% COLA would be HUGE.