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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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these pols who are proposing these job killing/ table scrapes benefits for us chumbalone class while they enjoy their guaranteed TIER 1 or 2 upper-income deals are the farthest thing from being “progressives” by any definition of the word. If they where true to their progressive rhetoric they would equitably pass mandatory TIER 1 deals for all. Which obviously can never happen. This is simply more ‘table scraps for thee and gold plated deals for me’ elitism hypocrisy…..In BANKRUPT ILLINOIS!!!
is the bigger machine grifft being played, is dopey taxpayer supposed to be “stepin-fetchit” thankful Springfield’s throw-en us a bone with Paid Family and Medical Leave Insurance Program Act while are public sec heroes class are landing $$gigantic$$ Tier 2 “fix” deal?
This looks like one of those programs where the frauds and cheats will win big while everybody else loses.
I wonder whether this has anything to do with anticipated changes to the federal government’s Medicaid funding. Currently, there aren’t that many states mandating short term disability coverage.
Re Medicaid, keep in mind that the proposed changed to Medicaid are merely a cap on growth in cost of the program by 2% for each of the next five years. That will mean some cuts because costs are growing more rapidly than that and more people are expected to qualify because of demographics. But it’s not being gutted as Pritzker and many others claim.
This is the natural outcome of a Leftist Democrat party that gave $B’s in bailouts to IL via monetized debt.
My Fortune 50 employers already provides these benefits for their employees – What’s in it for them other than more wasteful taxes?
This is a boondoggle by Democrats to create yet another pot of funds to raid by Pritzker.
The political animal brain trust strikes again.
Illinois political animals, an inbreed apart.
To fund the Illinois Mismanagement Machine, no idea is too stupid. The Illinois Mismanagement Machine must be fed taxes and fees at an ever-increasing rate. Abusing taxpayer and resident funding is a big part of what Illinois is all about. It’s amazing to so very many of us that this continues to be standard operating procedure in this state.
By God they are serious about this, too. The bill has at least ten sponsors already. https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2413&GAID=18&DocTypeID=SB&LegID=162438&SessionID=114&SpecSess=&Session=&GA=104
Do you think businesses will leave Illinois if this is passed? What are these idiot legislators thinking? It’s like they want Illinois to collapse.
Even if it doesn’t pass, businesses see lawmakers as wearing a big face tattoo that says “We Hate Employers.”
Mark. Thanks. And please answer: why would they do this? Are they really this dumb? I guess they want the pensions to collapse and the state to cease to exist.
As best as I can tell from talking to progressives, which I try to do all the time, it’s that they have this view that “there’s so much money out there, and corporations have lots of it. We are a wealthy state and nation.” And they simply don’t seem to accept that, without a healthy private sector in IL, there will be no tax revenue for their projects. They seem indifferent to the numbers on flight of our tax base, and the reality that money walks if not treated right. That seems to apply from what I know of the… Read more »
In other words they are stupid. Thanks Mark. I wouldn’t be surprised if where I work moves if this is enacted. I will gladly move with them if they do. Illinois is run by corrupt idiots, and the majority of Chicago voters are idiots as well.
Yes, they do all seem to believe that money just exists, and all they have to do is get their hands on it. I wonder where they got that idea.
Private sector, schmivate sector. Who cares? As long as the gravy train rolls on and the friends and pals get paid.
This is just more political animals trying to lift a bucket of water while standing in it.
This unfunded, state-mandated, benefit entitlement eventually applies to all Illinois employers including governmental employers. Employees will pay 40% of the premium which will be set based on 135% of the prior period’s claim experience and 100% of the administrative costs. It will apply to compensation up to $352,200 or 2 X the Social Security wage base maximum.Any waiver of participation must be granted by the Administrator after submission of documentation supporting the employer provided benefit is at least as good as the state mandated benefit. Given the cost structure, premium rate setting methodology and the claim service expenses (which will… Read more »
This has got to be the stupidest one yet. How could any of them believe this is a good thing to do??
Pritzker will tax everything and anything to fund his left agenda at the expense of US citizens in IL.
This state is a$$ backwards in their thinking
Employers would change their short-term disability policies to offset costs. Net benefit: Zero
The state has shown no expertise in managing any risk pools cost effectively. Why would they do better with this?
Keep it up, socialists . There are still a few hundred thousand decent jobs and workers to run out of IL before you achieve your utopia of welfare recipients, abortion seekers, trans radicals, pot heads, gamblers and prostitute customers.
You forgot illegal aliens and gang bangers!
OMG, are they INSANE?
More likely evil.
Just another reason for employers to locate in Illinois. NOT111
Illinois doing its best to chase away the job creators. No one should wonder why Illinois is losing population year after year.