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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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Why are people fleeing Illinois? Land of Lincoln now one of the most unpopular states in the nation.
Taxes are already way too high. The answer is to cut the pensions to a more reasonable level. Taxes are going to double every 3 to 5 years for many years to come. There is a HUGE PENSION TIME BOMB going off right now. It has started and will last 30 to 40 years. Only answer is to vote with your feet. PPF and the likes of him have destroyed the quality of life for the honest working family. So much more opportunities elsewhere. Out migration will exceed 200,000 per year very soon and then go higher. The remaining taxpayers… Read more »
Steve, you’re on the right track but the “problem” is that public employee unions have legal protections in Illinois (and other states) too.
Over time these protections have metastasized into a gigantic claim on the publics private real estate holdings.
It can only end in tears for both parties involved. The public employee was promised X by his union steward and the Illinois legislature and Illinois property owners will eventually see Illinois real estate as a financial hot potato and try to offload it onto a greater fool than he was.
Very interesting issue contained in the TRS spokesman’ response. He can’t say which taxing bodies are responsible for unfounded pension liabilities- maybe the state – maybe the municipality/school district. But the practical answer appears that an increase in local property taxes must happen – and according to the legislator they will go to “Mars”. This will not be a workable solution – there are municipalities where significant tax increases won’t result in revenue increases (e.g. Harvey, and quite a few others). Perhaps this is the reason for the spokesman’s waffling – the system lacks accountability. Anyone here willing to make… Read more »