-- 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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ANOTHER STUDY or just another delay? Start with – Consolidate tax districts, tax property under construction, raise the senior exemption so the seniors can still live in their homes on fixed income to name a few. The rest you can argue about…
Cutting property taxes would require the state to provide more school/local funding. That would mean more taxes at the state level or cutting from other areas of the budget. On top of this, the state doesn’t operate with a true balanced budget as we continue to short pension funding by around 5 billion each year. Politically, there just isn’t enough to cut. So more taxes it is. No amount of consolidation is going to provide enough savings. We would also now have our local schools funding at the mercy of Springfield. You think additional state funding is going to be… Read more »
You are correct about this, giving Springfield access to local real estate tax dollars would siphon that money not only away from performing schools to underperforming schools, in the name of equity, but likely away from education entirely, into other pet projects, in the name of equity. You can’t have good schools without first having good union jobs building infrastructure in underserved neighborhoods, right, etc? And local school unions would then have to pay off Springfield legislators for pay increases and the like. It could be done, but it would be a free for all. It would also anger many… Read more »
The good news is that, in theory, substantial savings can be achieved in schools at the local level. Local school boards have near total control over district spending. There’s plenty of places to cut, of course, but not without pain. Larger classes, fewer resources for IEP students, fewer after school programs, more PTA fundraising, etc. The local school boards are unfortunately run by the elite educators who feel that THEY know what is best for ‘stakeholders’ without regard for the taxpayer who is paying for it all, and they’ve never seen an expense they can’t justify. They spend profligately on… Read more »
PPF you win and so do I. See you in Florida on my Yacht (money I saved by not paying income taxes).
Two questions:
1. The state has vast taxing authority. Raise the flat income tax rate Change constitution for progressive income tax. This time passing a higher flat tax rate that will kick in if the amendment doesn’t pass. Either higher taxes for the “rich” or higher taxes for all. Taxing services Taxing retirement income Real estate transfer tax. Tax the sellers of property 9 percent. If they purchase another home in Illinois a credit could be set up to offset the tax. If they don’t invest in another property (say they leave the state) then it could be one last tax before… Read more »
Raising the flat tax, taxing services, taxing retirement income and a real estate transfer tax are all “regressive taxes” and will affect lower wage earners more, particularly retirees on a fixed income who end up selling their home to move into an independent living/assisted living facility. That will not be popular and will not not fly because the legislators do not have the courage to rile up their base. Look at what is going on now in Springfield over the budget and JB the Hutt threatening legislators with cuts to their pork allocations if they don’t bend to the knee… Read more »
:These morons in Springfield had the chance to significantly improve the pension funding with the Federal dollars that any moron knew were eventually going to dry up but instead they kept increasing the spending instead of keeping th budget flat.” 100 percent agree. However, being fiscally responsible with the money versus spending doesn’t seem to shore up the votes in Illinois. New spending programs seem to really excite the voting base though. “That will not be popular and will not not fly because the legislators do not have the courage to rile up their base.” No tax increase is ever… Read more »
If as a senior on a fixed income you can afford to move into an independent living/assisted living facility you can afford property taxes. Have you looked into the monthly prices of these facilities.
Yeah, your statement is missing so many other parts.Yes, I have looked at those prices when I had to move my mother into one. My post and my point about seniors on a fixed income were not about property taxes but rather about a property transfer tax. We had to sell my mother’s condo to help pay for her facility. If there was a transfer tax, there would be less money for her to be able to live in the facility.
I could not disagree more with you.
When your taxes are raised at some point down the road, make sure you make that little note on your tax forms. It won’t lower your tax bill but you can at least let them know that you disagree. lol
You think the state is going to steal 9% of my home sale. Screw you.
I don’t think it’s next on the list of new taxes but it’s clearly an option if needed. The state has vast taxing authority. If you don’t want that to happen I would suggest that you work on electing more fiscally prudent leaders. Otherwise, everything is on the table. My guess is taxing services will happen in the not too distant future.
PPF you sound and comment like a Illinois politician
I’m not here telling you what I want to happen or what you want to hear. Instead I’m pointing out the reality of the situation based on our current political climate. I wish our politicians talked to us like that but instead they prefer to fool the electorate with lies of more services and the “other” guy will pay for it. I’m here to tell you that YOU are the other guy. I don’t know too many politicians that will do that.
But when you don’t have a study to analyze the results of the previous study and then another study to consider the consequences of changing the study, there are no experts and analysts getting paid tax dollars to do so. Don’t try to derail the grift train in IL.
Start with mandatory school consolidations, don’t need another Chicago or Elgin, but any district without at least 5 (maybe more) schools within 10 miles needs forced consolidation. No teachers will be lost but the school overhead costs would drop considerably.
Do it or funding drops immediately.
Take a look at all the school districts around Harvey. There are at least 11 within a 40 block radius. Each has their own supers and full staff. These towns like Dolton/Harvey all have high property taxes and lower home values.
We do not need another study! We need to consolidate our nation leading 9,500 units of local government. 46 six states function with less thank 2,500 units!!!