-- 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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Bond rating agencies evaluate risk of default on bonds. For the private sector, ratings can be an indication of the fiscal health of the bond issuer. For government bonds backed by the power of taxation, ratings don’t necessarily reflect fiscal health.
The uptick in Illinois’ bond rating merely reflects the rating agency’s confidence that Illinois politicians are willing to tax the state into oblivion to keep the gravy train running.
The Democrats think that’s something to brag about.