-- 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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Wirepoints, I’m concerned about your phrase “particular pension reforms needed.” It indicates that you may be weakening your stance on what’s needed to reform IL. As you know, draconian cuts are needed in pensions and health care benefits to reform IL. Tweaking the current setup; e.g., changing the three percent annually compounded raise in pensions to some lesser percentage won’t result in much of a change in the tax burden of IL residents. Just lessening the retirement packages for new hires won’t result in much of a change in the burden, either; especially, for current residents. Unfortunately, what’ll likely happen… Read more »