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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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Someone should declare a public emergency and start issuing city-backed scrip that can be redeemed for groceries. Surely stores will accept it and demonstrate how much faith the business community has in Chicago. Surely the food producers and dairies will also accept the scrip as will the growers and ranchers. Gas stations and oil companies too, don’thcha think? Then the governor could rewrite his rent and foreclosure moratoria. And who pays water bills anymore?
Wages and benefits should be frozen or reduced until revenues equal or exceed expenditures. For lack of any consensus on priority of debts, pay the oldest ones first. When pension funds run out of money, THEN they go to the end of the line. Missed pension payments can “age” the same as unpaid contractors and other vendors. Start cutting jobs and salaries except prioritize public safety and health. Zero base future budgets. Keep only essentials. ACT like the insolvent entity that you are … That is, you want to stay alive and you are resolved to address your financial emergency.… Read more »
Try and negotiate wage freezes. Good luck with that. When/If pension funds run out of money they will be paid first. Pensions and bondholders are at the front of the line. Don’t have enough money to pay pensions, bondholders and the current annual spending? Cuts for the other areas and tax increases for all. Pensions will remain whole as long as revenue can be raised and other spending can be cut. Until then, dig in your pockets and tighten your belt. I do love these recycled ideas. It shows people truly don’t know what is legally allowable and instead just… Read more »
Way to bury the lede. You think you can convince “the voters” you are on their side? No wage freezes! No cuts to personnel! Union strong!
Oh by the way, I am in the front of the line. I’ll take every last dime if needed to satisfy my demands. But really, I’m on your side!
Mayor 6% is finding out that “the voters” understand who is a threat. They don’t like it when somebody stands between them and their money. They really don’t like it.
But you have the ILSC , so no need to worry. Good luck with that.
I am on their side PP. If they don’t pay more towards pensions now they will pay much more later. I’m trying to save them money. I also believe by paying actuarial contributions instead of the lower statutory ones, so Illinois will be forced to address spending versus raising taxes. The status quo of spending more and not taxing enough in a massive lie to the voters and is causing more pain. Instead you’ll buy the lies of politicians that will tell you they can get out of paying for pensions and taxes won’t need to be raised. That’s the… Read more »
I think you’ve invented a new tactic PPF. Let’s call it belligerent altruism. I’m going to beat the crap out of you now, but only so I don’t have to beat you up even harder later.
It might sell. You should become a political consultant.
It’s not “belligerent altruism” PP. It’s more like a parent explaining to their whiny toddler that they shouldn’t eat candy and a gallon of ice cream for dinner. The toddler, much like Illinois voters such as yourself, don’t want to do what is best and don’t care about the consequences of their bad choices. Unfortunately for Illinois, these toddlers get to vote and continue to make bad decisions. Now the toddler has a tummy ache and is mad at the parent for telling them it will continue to happen if they don’t make better choices.
On second thought, I doubt if you can sell it. You’re dealing with people who would go on strike over a 10 minute break. You assured me that they have every right to do so, and this would be normal union behavior. I don’t think they will buy the take your beat down now plan. We’ve known the pensions are unsustainable for decades. Many plans have been put out to try to bring them in line with reality. All rejected, in favor of demanding your pound of flesh. But of course in the end Shylock didn’t get his pound of… Read more »
Why lie PP? They aren’t going on strike for a 10 minute break. That’s some next level ignorance. They are fighting over 10 minutes of planning time. You know to plan for the next lesson, meet with support staff, call or email a parent back, etc… Also, you and others tried to steal from the pensioners and the courts told you NO. So now you must be an adult and pay your bills and instead you want to whine and complain just like a toddler. The pensions are perfectly sustainable but you need to pay the actuarial payment not run… Read more »
Ah, yes. Planning time. Semantics Olympics. Wouldn’t want to cut the time to prepare the gender identity lesson for 2nd graders, would we?
Following one lie with another I see. Speaking to a a a parent about their child or meeting with a specialists to discuss a child’s 504 Plan is not the same as a break. You clearly don’t know the meaning of semantics as they are not the same thing. I guess a stay at home mom who never had her own career wouldn’t know about that. If it’s so easy go show us how it’s done instead of just complaining. Go get one of those big pensions you whine about.
Stick to demanding your pound of flesh. You failed miserably at your attempt at “guess the occupation of someone you don’t know” circus act.
Considering you have lied in your last two post I have no reason to believe you now. All you’ve done is proven why teachers unions are necessary. This way they can negotiate what they need and don’t need to worry about the distractions of the uneducated peanut gallery.
Easy boys, easy. Some times I feel like my kids are little again and I’m adjudicating fights.
Teachers unions are primordial scum and fail at everything that these terrorists touch. Thank God that all Public Sector Unions will soon all be abolished to the septic tank of history.
Who obeys laws anymore, let alone observes contracts? Who obeys judges? We dpn’t need no stinkin’ badges. Declare a state of emergency and do what the governor or his/her surrogate wants for as long as (s)he thinks or pretends the emergency exists. When we face budget and debt emergencies and education emergencies, it just takes one elected oligarch to turn the switch. Someone could run for governor, for example, on the promise of fixing the economy and cutting or refunding taxes (e.g. by closing underutilized schools) – all to address the emergencies – and that would bring out more voters… Read more »
Good luck with that plan Jerry. In the meantime on planet earth contracts will continue to be negotiated collectively and paid accordingly.
CCFU’s new best friends haven’t “ done s—t”, as Gates would phrase it , for them the last four years that they’ve worked without a contract. They should chat with SEIU about jumping into bed with the CTU.
“Right now, both the city and CTU say they’re about $8.5 million away from an agreement.” That means the city already gave away the store at the expense of the taxpayers. Wonderful.
Our heros….
Will CFFU be demanding 9% as well?….look out taxpayer chumbalones, as CTU sets the $$$$standard$$$ city & statewide for Illinois CRAZY 7,000 units of gov
This is about a city and state looted by its elected officials.
… and by its unelected workers via their corrupt unions.
You mean Chicago union employees and residents that are utilizing their constitutional rights to collectively bargain with duly elected leaders of the city for fair wages and benefits. Hating on the constitution is so un-American.
You win the semantics Olympics.
Lewis Carrol could not have said it better.
They must have worked this out at the last meeting of the Politburo.