-- 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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As an accountant, I will say that of course GASB should implement changes that require reporting these liabilities more clearly and openly.
But I will also say that it is not possible that any responsible person is unaware of the unfunded liabilities, even under the current reporting requirements. The problem is not that those in power don’t know there are massive unfunded pension promises. The problem is that they don’t care as long as they get the votes.
Heyjude, the issue that we constantly encounter, even when talking to our allies, is that most people really don’t know the full scope of the problem. They appear on the surface to be in full agreement with us that it’s horrible, but on further discussion it becomes clear that they are still way off. Consequently, their remedies don’t match the malady.
It’s certainly not from lack of information. Even Quinn was discussing it years ago! Apparently the problem is “Innumeracy”, as outlined in the excellent book by that title. Same problem with the disconnect between public perception and actual statistics for Covid.
That book, Innumeracy, should be mandatory in every school.