-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
I think the reason IL cost estimates for large expenditures so often end up drastically under actual costs is because IL doesn’t factor in what I like to affectionately call corruption costs. Therefore, estimates for future, large expenditures should include a 50 percent add-on for corruption, so the estimates will be much closer to actual costs.
What the actual cost is not the inflated cost hopefully to get reimbursed from the federal govt are entirely separate matters. Right now the cost is well over $80K for a family of four for the jumpers mostly going to those allegedly taking care of them. Right now a family of four citizens making $80K are paying the mortgage/auto payments/clothing/insurance/food/taxes/etc which none of the jumpers are doing or paying for. Totally inflated costs for purpose of getting reimbursed down the road.
P.S. Does not include all the charity many are getting from local organizations.