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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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Chicagoland is indeed broke. If you add the rarely discussed non-pension unfunded liabilities to the well discussed pension liabilities, you will see how dire the fiscal situation is. No way out without bankruptcy and or restructuring.
“Progressive” sounds so much better than rabble rousing or taxing the rich or extortion. Like Planned Parenthood vs abortion or infanticide. Orwell rules!
Want to know what else would put millions on the table? Closing schools that are not being fully utilized and forcing teachers to only get raises commensurate with their performance. When under 20% of kids graduated out of school cannot read or do math at high school level teachers are primarily responsible. And yet they have the gall to demand raises!
Behind every socialist/ communist/ Marxist sounding organization, you’ll probably see the shadow of Soros.
“Progressive Revenue Options” is Socialist doublespeak for “take money from people who actually work and give it to our supporters, the lazy and the vermin of CTU (sorry, redundant).” The bottomless greed of CTU can not be exaggerated. When Chicago becomes financially insolvent – the sooner the better – give no charity or aid to the begging former CTU grifters in the gutter. Step over them and let them starve. They aren’t even worth Dog Food.
Good article to remind Wirepoint readers that Chicago and Illinois can raise taxes to pay us a fair contract. Enough whining about taxes can’t be raised or go higher. We are responsible for negotiating the best contract for our fellow members. The government is responsible for getting the funding. Raise taxes or get the money from TIFs. Either way you will pay us a fair contract.
What you don’t understand is that Chicago is past the top of the curve on taxes and revenue. Any higher taxes drive off so taxpayers and business activity, reducing the total revenue collected. Stay blind to that if you want, but it has been true for a number of years. The die is already cast. This will get much worse, regardless of whether still more taxes speed up the process.
You are wasting time your time here. The feeding hogs will continue to feed until there is no more. All they care about is their share of the pie.
I know. Let me remind you of what we often say: Nothing will get better here until it gets far, far worse, and that’s coming. We are under no delusions.
The best part is that it is very likely that most CTU members live paycheck to paycheck despite their absurd and obscene take home pay. They likely have mountains of credit card debt and, just like their role model Davis-Gates, dont pay water bills, property taxes and the like. These entitled socialists resent paying for anything. When Chicago financially collapses most CTU members will have no money, no savings and be unable to pay incoming bills or even afford groceries. I look forward to that suffering and pain upon CTU.It will be well deserved.
Some places get worse and then never get better. There’s no guarantee things will get better after they get worse.
Good point, and a scary thought.
Illinois is DOA, Mark is just stating what I have said for years.
Taxes will go higher, and more people will leave the state.
One day in the future the courts will order pensions to be paid, but there will be no money. The courts cannot order money to appear that is not there.
NO. In the end, the courts will acquiesce to bankruptcy and restructuring because there is no other way. Repayment is not possible. There simply isn’t enough money. The municipality purpose is to manage the needed services, not fund unaffordable pensions.
The state, of course, would have to authorize formal bankruptcy for Chicago or any of its municipalities. BTW, I would not be shocked to see Trump and the new Congress eventually authorize bankruptcy for states. That came far closer to reality in 2017 than has been reported. Not on the agenda now, however, with so much else going on.
CTU members are obscenely overpaid. Since only 40% of CTU students function at grade level anyone without CTU brain rot would consider 30% of current CTU contract (40% – 10% to encourage improvement) a fair contract. Any CTU contract beyond 30% of current contract is robbery. In fact how about we the people clawback that 60% failure from CTU. I’m thinking the easy money is to simply nullify all the pensions. Current and former.
I won’t argue the fairness of your contract issues but do agree with you on the TIFs. Those TIFs are feeding favored development interests at a time when the taxpayers need tax relief and existing bills need paid.
Please define ‘fair contract’ vrs ‘best contract’?
A whole lot of unfairness is going to come down to many different interest groups and some, of course, are already feeling it. That’s what happens when you are broke. You try to minimize the unfairness and spread it appropriately, but that’s the best you can do. Most of Chicago, particularly the CTU, doesn’t understand that that’s where we are. They don’t understand the scope of the calamity we are dealing with and that more taxes won’t fix it.
The mask is off. We appreciate the clear expression of the real teacher union. No more “it’s for the children”. No recognition of fiscal realities. It’s only ever been about grasping for more power and making more demands.
Keep displaying this level of contempt for taxpayers. Keep showing us that, far from being the “public servants” you try to paint yourselves, you actually believe we the public are your servants and should cower before you.
We are getting the message, loud and clear.
Based on the data showing how poorly children are being taught It would seem that the CTU owes taxpayers a refund. Put that in your contract and smoke it!
I believe Jankov is the main behind the scenes go between guy at CTU and national AFT, AOC types and other progressive wacko groups who dream up all this crazy and then try and test it out on dopes in a Chicago…….of course all on the taxpayers dive. Brando has or had Bill Neidhardt (is he still on board?) and Lee (votes in Texas).
Idk but I heard Bill Neidhardt is pretty cool.
Within the article is an interesting point regarding TIFs “The fund balance last year in TIF accounts was $3 billion and it brings in over $1.3 billion annually.” That is one heck of a lot of money considering that the City is looking to hike taxes at the moment. The TIfs have become tax monsters and while I do not agree with the teachers on the situation I think they have it right on the TIFs. The City can no longer afford them.
As John Stossel says. Give Me a Break.
The CTU wants to confiscate wealth from the wealthy but are unwilling to define what “fair share” means. Here’s an idea, when are the poor CTU members going to start producing their “fair share” of wealth? How about all of the Chicagoans living off government largess, when will they start producing more wealth? Those that produce more for less tend to accumulate wealth for themselves and others.
So did Ralph Martire write this for CTU or did CTU write the piece by Ralph Martire. Two sides of the same coin. Since you morons are hopeless in your slavery, CTU is correct. Raise taxes on the “rich” however they are defining it right now. The “rich” need to keep those CTU hacks in a life style they are accustomed to. After all, it is extremely difficult to remember to call in sick to a job you work 9 months of the year. It’s also very taxing to manage to not teach anything when you do show up. You… Read more »
Income taxes started out as a 1% tax, with the promise that it would only apply to the “rich”. Now, even a minimum wage worker pays income taxes. There’s your answer: “rich” is anyone making at least the minimum wage!