-- 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 downsized in 2012 to a nice ranch tpwmhome on a golf course. Sold a mcmamsion for 400k which is worth less today to the angel that came along and bought it, it had 10k property taxes. This townhome cost 140k but taxes are still 5k! A home is NOT an investment, nor should one prepay a mortgage to gain equity in the traditional manner. In Illinois you rent, even if you hold a mortgage you are really a renter. The property tax drag has already changed the landscape of everyone to renters. Downsize now, and invest any left over… Read more »
Why is this a problem? State and local workers need their pensions! They earned it!
Ha! (Love the snark) The public employee unions will fight to the death for the pensions. This is their number 1 issue. They have probably told every legislator in their pocket that if they even hint at “pension reform” the unions will mount war against them with everything they have. Our legislators are petrified of the public employee unions, and there will be no crossing them. Public unions are the primary constituent for Illinois democrats. The media plays along, sympathizing that the tens of thousands of six figure earning public employees not receiving even COLA increases is “just not fair,”… Read more »