-- 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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PPF says raise taxes to cover pension contracts. He is right the way the law is. A judge can order pensions payments but cannot make money appear that is not there. Only the Legislator can raise taxes.
The Covid pandemic proved useful for IL. It allowed the Federal Gov. an excuse to print trillions of dollars to dump on the state to balance budgets. The entire nation helped bail us out. Fair enough because of the huge number of Illinois pensioners now living elsewhere.
Great job, Illinois! Leading from the bottom – we’re #1!
Even with that underfunded pension liability, JB claims that IL has a balanced budget. Try that with your family or business finances and see how far that gets ya.’
That’s the difference between government accounting standards and the
financial standard for citizens and business and how he gets away
with misleading the public.
And chances are excellent the reserved funds are invested in ESG (Equity/Social/Governance) products; historically low yield investments.
Stupid chickens.