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It was somewhat surprising that it wasn’t passed unanimously, considering the fact that the budget holds the line on taxes and increases spending for an array of popular programs — even compared to the record-high spending made possible by federal funding that poured into Chicago during the pandemic. Before casting their dissenting votes, several naysayers argued Johnson’s first budget is “not balanced” because it earmarks only $150 million for a migrant crisis now costing the city more than twice that.
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’s great that the city continues with actuarially determined contributions for pensions. Now just quit spending so much money on migrants and raise taxes for future years and Chicago can further improve its financial situation.
The backlog is staggering. Bankruptcy is inevitable.
Or higher taxes. Or a federal bailout. Or both.
Bankruptcy is the only viable option.
That and jail for those who overpromised the pensions and mismanaged the finances.
It’s not even an option until state legislators say it’s an option. Benefits weren’t overpromised (that’s merely an opinion) they were underfunded (fact) based on what was contractually offered. Maybe Chicago will eventually stop paying other bills while state tax dollars are automatically diverted to the pension fund. Take a look at Harvey for an idea as to how other debts are simply not paid while pensions continue to be covered and even other tax dollars are sent to pensions through the pension intercept law. Nobody is going to jail for not setting aside enough money. Just more taxes and… Read more »
Harvey is a warning of just how ridiculous things will get, as the pensions overwhelm the rest of the budget due to actual, real overpromising and underfunding. Thank you for graphically describing the peril in which Illinois politicians and government employees have placed the state. Of course you won’t hold any of the politicians accountable, preferring instead to stick it to Illinois taxpayers who choose to remain in this failing state.
Eventually, a judge will have no choice except to cut benefits. They should start by limiting annual pension benefits to $100k per year in aggregate per retiree.
Your last sentence is just one random guy’s no-thought-given wild response; it’s MEANINGLESS. Now, my similar sort of wish is to make it $250,000. There, just like you I fee so much better giving my opinion. I’m sure the IL government will be appropriately appreciative.
“Of course you won’t hold any of the politicians accountable, preferring instead to stick it to Illinois taxpayers who choose to remain in this failing state.” Just because I disagree with a politicians choices doesn’t mean I think they should be jailed. That’s an extremely dangerous way of thinking. That’s reserved for crimes that are committed. Not funding the pensions doesn’t break any laws. It’s funny that you want to lock up people for not breaking any laws but you advocate for stealing from retirees which is a blatant violation of the constitution. You just want to lock up your… Read more »
I’m glad to see you are FINALLY Understanding. Of course we want to lock up our political enemies. I’m all for locking up Democrats and throwing away the key. That’s what Democrats are doing to Republicans now. Why do you think they passed the gun-grabber law that won’t stop even one shooting in inner-city Chicago, but makes felons out of law abiding citizens downstate for failing to register their legally purchased 17 clip magazines? Yes, JB Pritzer belongs in prison, so does Kwame, I don’t care the reason, just lock them up and throw away the key. I sure hope… Read more »
I’d gladly participate in that kangaroo court.
I’m glad you admit that it’s not about truth or fairness and you only want to lock up your policy enemy. Yet you wonder why you are consistently in the minority? lol
It’s not at all clear that even bankruptcy would help. For a bankruptcy to work you need unencumbered assets and the city has little of that.
“Not balanced” – Maybe Pritzker and Mendoza can help with that. All you need is some Federal Funny Money.
So spending goes up without a commensurate increase in taxes. A great idea I didn’t know was possible. It must be this new common core maff stuff that makes everything in Illinois possible.
It’s Million Man Math all over again!
continuing the fine tradition of kicking the can (or more precisely, a barrel) down the road…
no political will to make needed cuts…
Yet another example of how Chicago’s business organizations, press, accounting community and the very few people in government who know better, are unwilling to stand up and say what a bunch of phony baloney this budget is. That’s how the City and the State (and so many school boards, local governments an pension funds) got into such a mess. The whole sorry bunch is to blame, not just the politicians.