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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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Pension payouts need to come into line with what is actually being funded. Gaps can be made up by union member contributions.
So, any time conservatives want to disobey the IL Constitution by reducing payments to public employee pensioners it’s okay apparently according to you. Not so much! To think so suggests such pensioner payments would ever be subject to lower funding with no recourse. Dream on.
If you get an IOU from the state, you’ve been paid on time – that’s the way it’s worked in IL for a long time.
That’s a great way to describe how the “budget” works. Pensions included. All they really give is an IOU but they pretend as if they paid on time.
Pensioners have been paid on time, every time. If the state needs more money for pensions and is unwilling to cut other spending, your tax bill will be increased. That’s the way it’s worked in IL for a long time.
Gaps will be made up by more taxpayer contributions. More taxes for you JB.
Was there ever a “honeymoon”? Think business community, Crains readership-base, were already well-aware that its interests are of ZERO concern to new administration.
Nope, “corporations cause disinvestment” is prevailing theme of Mayor Johnson’s viewpoint. And resulting continued rising crime-rates will accelerate that “disinvestment”, regardless what Johnson says or ultimately does.
So far, all what Johnson has accomplished is gravy-train of new benefits for CTU members.
I became curious about just what all the moving parts are in BJ’s Chicago public employee union pension fund crisis.
WP linked this article from the Bond Buyer. It’s a long read, but does a thorough job explaining what’s going on. The Pension Working Group has a lot more big guns on it than other articles I’ve read imply, and they’re up against the fall veto session as a deadline to put pen to paper with the bad news.
https://fixedincome.fidelity.com/ftgw/fi/FINewsArticle?id=202306221412SM______BNDBUYER_00000188-e41f-d5b0-afdb-f5dfd4720000_110.1
Well that means tax increases. Now just determine who is getting taxed. While business groups aren’t on the panel, the commercial club of Chicago has offered up their plan. Increase income taxes to 5.95% and start taxing services. Pension consolidation and PO bonds are gimmicks. It’s time to get serious and figure out the necessary tax increases.
Not to put too fine a point on it, constitutionally, but slavery used to be legal in our country, and drinking alcohol was against the law. Women weren’t allowed to vote.
And, of course, public employee pensions weren’t always guaranteed against impairment or diminishment in Illinois.
Haircuts all the way round is what I say. Change the constitution again.
Demanding you are paid according to your legal contract is the same as slavery or not allowing women to vote. lol
Good luck changing the constitution to allow those reductions. I wonder how many on the committee support that?
Tax increases all the way round is what the courts say.
Yes, in the sense that going to be a lot easier to cut pensions than it was to end slavery, end prohibition or even give women the right to vote!
Then you’ve got nothing to worry about. Our budget problems are solved.
Taxing the services of the Democrat party Illinois trial lawyers? Good idea but good luck getting that passed.
I’m sure when services are eventually taxed there will be some carve outs for favored constituencies. Lawyer fees exempt followed by a tax on the use of gun ranges. Maybe even a tax break on services for hair salons that provide services in historically disadvantaged areas for people of color. I’m not a fan of those types of deals but such is the political reality.
Like you I am not a fan but yes I can see that happening, Also in my local area we have millions and millions of lawyers cleaning up the nationwide asbestos cases that are all untaxed. Democrat trial lawyers though you know…
I agree, the bond buyer articale is really good. Obviously, the machines going to come up with new tax revenue scource and taxpayers have ZERO say because machine controls 100% of everything. But other huge issues ,is what changes will be made to TIER II? Will state make overall statewide change to all TIER IIs in fall veto section? Just make minimum change to meet ‘safe harbor’ or make TIER II equal to TIER I? Or who knows what? All you know, is the chump taxpayer is not even in conversation. $$$EQUITABLE$$$$$
The taxpayers are represented by their elected leaders. Government is not run by some town hall meeting where people yell out their support or frustration. If your duly elected leaders decide to improve tier 2 benefits its because they believe that is the right thing to do even if you and others don’t. That’s how government works. If you don’t like what they are doing, work to elect a different set of leaders. If the right candidate isn’t on the ballot, work to find the better candidate. If you can’t find a candidate to run in a certain area against… Read more »
Off course that’s obvious. But shouldn’t the elected officials then ,at very least, discuss pension challenges in public? Or possibly let voters vote on charges?
PPF, didn’t Brandon run on TRANSPARENCY?????
What were you envisioning? 24 hour c-span type coverage where every participant is wired to listen to every meeting including bath room trips? He’s told you about the committee and you know the members. You don’t have an individual seat at the table. You have a representative that chose other people and he’s told you about it. What is it that you are looking for? You continue to bring up this same complaint without outlining exactly what you want. I literally have no idea what you want other than you don’t want taxes to go up. That’s hardly insightful to… Read more »
“Or possibly let voters vote on charges?” Voters don’t vote for legislation they vote for representation. We are a constitutional republic not a direct democracy. “But shouldn’t the elected officials then ,at very least, discuss pension challenges in public?” They have and are continuing to discuss them. All constitutional options need to be on the table, Martwick said in an interview after the working group was first announced.That includes fund consolidation, pension obligation bonds, new tax revenue streams, such as video gaming at establishments, moving to a 100% funding goal from 90% and to a true actuarially determined contribution from… Read more »
Yup, martwick’s talking about all the pension changes behind closed doors, nothing new. But then why even bother to announce you have a ‘working group’ and pretend there’s some collaborative public process/imput involved? I didn’t vote for all the public sec unions folks in the group or Martwick or any of the other elected officials. When Martwick pushed thru recent 3% cola for Chicago cop & fire hired after 2010 on Chicagoans was there any ‘working group’? Brandon & the machine should skip all the ‘working group’ show and just do whatever the F thier going to do as they… Read more »
“I didn’t vote for all the public sec unions folks in the group or Martwick or any of the other elected officials.” It doesn’t matter who YOU voted for only who the MAJORITY voted for. That’s the way it works. The majority elected leaders that want those people on the committee. “martwick’s talking about all the pension changes behind closed doors, nothing new.” He is talking about the possibilities being discussed within the group with the press. No, not every meeting needs to be published for your approval. Don’t like it? Then get people into office that want the same… Read more »
It’s always good to know there’s a grownup in the room—what about the Martwick bill to add 3% COLA for Chicago cops & fire hired after 2010. Do you feel that was passed by or with the “MAJORITY” of Chicago taxpayers in mind? Or simply more “the majority will elect leaders that will decide how things are done” Illinois politics, as usual, with no public taxpayer/voter input/opinion required?
Also, moving all pension tax funding and TIER II changes to fall veto section 1.) after elections is key 2.) and rushing pension changes thru before all the fed Covid free stuff/ equity tidbits run out is key as the Covid giveaways serve as distraction cover to the endless duping of dullard voter/taxpayers
They’re going to loot businesses until they leave. It’s that simple. It’s South Africa in Chicago. They’ll even try to pass laws denying the right of businesses to leave. They’ll tax city residents who leave Chicago. They’ll tax suburbanites who work or travel into Chicago. They’ll institute a Cook County wide tax to pay for Chicago. Sage words from a Cook County Commissioner: When I was running for office, I said this all the time. I said we need to tax corporations, because we can’t just keep nickel-and-diming poor and working-class people. And people would say well, what are you… Read more »
I’m sure the reason to keep business and taxpayer group out of pension “working group” is because the machine in Springfield already has big plans, maybe has for years, on pension taxing deal and they don’t want anyone spilling the beans until opportune taxpayer/biz group duping time. Maybe to coincide with dem convention. CTU/Brandon’s going to do whatever Springfield tells him to do because he’s dependent on Springfield to give him authorization to raise taxes. Martwicks the guy running the show behind the scenes, as usual, to get all the Chicago unions on board. The bigger question to ask–is the… Read more »
Johnson is smart enough to know what Lenin supposedly said, that “capitalists will sell us the rope to hang them with.” Johnson and the CTU hate capitalism. Behind Johnson’s warm words and demeanor is a Marxist in all but name.
a Marxist who’s also in line for gigantic guaranteed $multi-million$ pension for himself. So, in some ways this pension “working group”s about his insuring his personnel enrichment. Where you find the EQUITY in all that is beyond me?..(I call them the “$six-figure-socialists$”)
Yep. Some of these retired six-figure pensioner teachers call themselves socialists, too. I don’t get it.
Socialism and Communism are basically the same thing, except socialism is a lighter sounding term than the harsh communism. But in today’s world, there are little differences between the two. Communism is the a religion of malcontented people. Angry, ticked off people who feel they got ‘screwed’ in life in some way or another become communists. They have different tentacles that all lead to the same place – angry LGBTAPedo activists, BLM race hustlers, eco-enviromental nutjobs – they are all the fingers on the same fist. The limosuine liberal lakeshore socialist in Lincoln Park. They all lead to same place:… Read more »