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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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Issuing bonds to pay current expenses. Where have we heard this one before? Aha! It’s the Amtrak 1990’s business plan. The ‘glide path to self sufficiency’ that the late George Warrington preened about before congress.
As you may surmise, this was an abject failure.
BJ’s goal since he was elected by his CTU parasites is “First lets get the money”. Taking on debt to cover debt to cover debt to pay off debt is entirely in the public sector scum theft mentality.
Zippy the Pin Head wants to borrow money to pay pensions. The stupidest idea ever…which means its already being done. But, hell, what do we expect. On the License Plates…not Land of Lincoln…now “Kicking the can down the road for 100 years”
Brandon obviously failed in all his math classes plus accounting too.
And remember folks, the added unknown $100s of million tab for new “negotiated” CTU contract isn’t even included…..an absolute joke. For those of us who live here, we’ve all had enough of phony ‘Equity Hustle’ CTU/Brandon & CO
“For those of us who live here, we’ve all had enough”
Yet you voted exactly for this with Mayor Johnson. Doesn’t seem like the people that live there have had nearly enough. Maybe the next election. lol
classic kick the can down the road strategy…ugh
Utterly stupid idea — taking on debt to pay debt. It’s called a pension obligation bond, that we’ve written about often. It’s just moving debt from one credit card to another.
If it is the worst possible choice that could be made, then it will happen.
This is how government works.
Sounds like a Ponzi scheme.
Borrowing your way out of debt! The politician’s solution to all the problems.
How much do consultants, underwriters and bond lawyers (not to mention actuaries and CPA’s) take off the top? All they have to do is toss dozens of pages of boilerplate warnings into official statements that nobody reads and they’re protected. Meanwhile the teachers and the unions begin the publicity campaigns to muster voter support — if a vote is required — and get out their bushel baskets to catch the money. If any of the money gets to the pension funds, it will enable the retired and older teachers and staff to suck up their pensions and COLA in along… Read more »
As Winston Churchill said , “ trying to tax or borrow your way out of debt is like standing
In a bucket while trying to lift it.”
Great reference, but BJ and other “progressives” aren’t interested in any advice given by old, white men. In fact, these “progressives” aren’t much interested in learning from history what works and what doesn’t. Furthermore, BJ isn’t trying to get out of debt; he’s more into can-kicking, aka let future generations clean up this ever-worsening mess.