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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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From Chalkbeat and Illinois Policy, what Johnson wants to is to have the new union contract locked down giving the union a number of points they have asked for e.g., raises, additional staff and so on. Because CPS can’t afford it, he then wants to borrow 300M thinking this will buy CPS time to lobby Springfield for the billions in shortfall. Of course, the State has already rejected CPS’ plea for additional funds. This strategy, if you can call it that, is unrealistic and reflects really poor judgment. Little wonder Martinez isn’t going along with it. If this indeed reflects… Read more »