-- 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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Failed Governor Pritzker Has An Embarrassing, Sweaty, Red-Faced, Fat-Kid Temper Tantrum, When Critics Point Out The Fraud In His Fake Budget Projections – Crain’s Chicago Business
Who could possibly downvote this comment??
The crux of the matter is the differences between FASB (financial accounting standards board) and GASB (government accounting standards board) accounting rules. Businesses and individual a required to follow FASB which recognizes income (money brought in), liabilities (what you owe). If you borrow money, the income is recognized, but so is the liability (money has to be paid back). So they essentially offset one another. Governments follow GASB which has standards that don’t require all liabilities (like pension debt) be included. Some might call it lack of transparency or slight of hand – but it’s following GASB standards. Fortunately for… Read more »