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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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A text book example of municipal malgovernance. No amount of property taxes paid will be enough to satisfy a progressive manager.
How about Bankruptcy?
Wait, the police pension fund won a judgment against the city for $7 million dollars. Wow, there’s the solution as PPF stated. Increase taxes by court order. I’m sure that $7 million solved the problem. OOPS! I guess not. Crisis averted. No need to lay off police and fire. OOPS I guess not. Can’t get blood from a turnip. Maybe, but it sounds like they’ll need to keep trying. Maybe another court judgment will do it. After all who needs cops and firemen? I’m sure whatever happens it won’t doom Harvey to a 100 years of spiraling into oblivion.
As I’ve stated all along, PENSIONS WILL BE PAID FIRST!!!!
People love to tell me that there is no way towns will lay off a large chunk of their police and firefighters. Yet they laid off massive numbers of those employees and now are talking about furloughing over 40% of city workers. The pension intercept law will continue to put pensioners at the front of the line. If you want other services, taxes will need to be increased or the state will need to provide additional funds.
Kick, scream, squeal and downvote all you want. Pensions will be paid first.
Yes they will. The peoples’ Republic of Illinois has assured that. Nobody kicking and screaming here. I’m enjoying the view. I think the real questions are why didn’t the $7 million solve the problem? When and how much will the next judgment be for? And what will be left of Harvey after that? There is no way that the democrats will allow bankruptcy. So that leaves massive layoffs and tax increases. My thinking is that the golden goose in Harvey may be pretty close to dead. So does that mean that the union gets a court order to make the… Read more »
Yep you’re fully right on this and yet across the State people still have not woke up to the reality of it all. I wouldn’t doubt that a considerable amount of Harvey citizenry still don’t recognize the reality of it all yet.
Just have to leave Illinois and give it the 1 finger salute as you cross the state line. Let PPF stay and pay. Go for the fun and sun.
Wasn’t there an article about 16% or more property tax delinquencies and a huge amount of foreclosures in Harvey? Even if properties are foreclosed, who is going to buy them and pay the back taxes? Sure, you can raise taxes to pay pensions, but what if residents just don’t have the money? We’re talking about Harvey here, not Wilmette or Kenilworth.
Hence the other portion of my statement “or the state will need to provide additional funds”. More spending cuts in the meantime along with the continual use of the pension intercept law.
Supposedly, there’s another six or so southern suburbs in the same boat as Harvey. Is IL legally liable to cover the pension debt of delinquent suburbs despite its own and Chicago’s massive debt?
I would imagine they will help them the way they’ve been helping other financially struggling cities such as East St. Louis. Why do you think Harvey is furloughing over 40% of their employees? If you can’t afford to pay your employees for work already performed why should you still think you can have so many current employees? If taxpayers aren’t paying their taxes, why should those people have access to city services such as firefighters and police? Is IL legally liable to help? I don’t think so but that’s what will happen if they don’t want all of these layoffs.… Read more »
I am interested in that prediction about how this will go down. Seems like chaos to me with no clear resolution at this point.
Chaos? Definitely. Solution? Not in the democrats’ vocabulary. Higher taxes? For sure. Rinse and repeat until the whole state looks like Harvey.
Wonderful news! You all get to pay for Harvey’s malfeasance, corruption and all around incompetence. Isn’t Illinois wonderful. I’m sure this is a one off and will never happen again. Whatever you do, do not let up on that accelerator. That democrat created wall is not approaching and I’m sure it’s all just a mirage.