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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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So at two notches above junk IL “basks” in the Moody’s upgrade? Is that like having two new trolls arrive at the bar so now you are celebrating at no longer being the ugliest girl in the bar??
From Moody’s “Illinois still faces longer-term challenges from unusually large unfunded pension liabilities, which are routinely shortchanged under the state’s funding statute. These liabilities could exert growing pressure as the impact of federal support dissipates, barring significant revenue increases or other fiscal changes,” the ratings upgrade analysis reads.Moody’s warns that Illinois’ progress could be thwarted should the state attempt to scrimp on pensions in the future. Looks like Moody’s is telling the state that they will need to increase taxes since we know cuts are unlikely. Pay the pensions or risk a downgrade. Raise the income taxes to 6.95% and… Read more »
Remember the words of Pepetitus. “If they are based, do not quarrel with them. If they are shills, ignore them.”
Since the structural budget issues still exist and will only get worse with growing pension requirements, there isn’t much time to bask.
And a round of low interest loans to everyone. Payback terms lax to nonexistent. Lori’s aces will establish the term sheets when the water pipe replacement is completed. Please be patient, this is an abundance of caution….?
Yes, first upgrade after 20 years of downgrades. Strange how the downgrades didn’t get any press. Hmmmm.
Shows how fragile the ego is of Illinois leadership.