-- 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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I sincerely doubt these are investors. They likely are crony-capitalist or speculators. Most likely corny-capitalist who take on no risk themselves. the old, socialize the risk, privatize the profit motto that rules throughout Illinois, but especially in Chicago and Aurora.
If there is any financial progress, it isn’t for the Chicago taxpayer. The proof is in the pudding. If your property taxes continue to climb at a rate of over five percent per year, that would be the opposite of financial progress. Maybe that’s what he meant.
raise the discount rates to cover over the pension debit and use the new city Sales Tax Securitization Corp for the GO debit–all seems like another form of scoop and toss. but the bond investors keep buying