-- 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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Illinois is starting to sound like it’s ready for the perfect storm in August with the DNC.
Eye opening for me, the “safe harbor” /Tier 2 pension fix has nothing to do with making Tier 2 pension payouts comparable with SS $ for $ but is only about raising maximum bases by which Tier 2 pensions are calculated using SS comparable bases…..the few dopey voter/taxpayers that are even paying attention will be clueless one can bet.
But the bigger national issue, this “must read” article points out, is that Illinois interpretation of “safe harbor” will be ruinous for state & municipal pension negotiations nationally. The Tier 2 fix is a national issue being tested out in Illinois with 99% of dopey Illinoisans asleep at the wheel as usual:
“If you just use common sense, and you know the Constitution gives you the right to own property and have someplace to live, which is obviously a substantive right. How can they tax that. How can they claim you have to pay a tax on it in order to have a home. … I’ve had people tell me it’s the law. So I said, then show me the law. I’ve got property appraisers, tax collectors, my county commissioners, city commissioners, administrative directors, the mayors. And nobody has been able to show me any law that says they can do what… Read more »
Brings the question: do I truly “own” my home? Or am I occupying it by grace of the state?
Skip paying property taxes and know that you will eventually be homeless.
So, do you really own it?
We can “own” our vehicle, but unless we pay tribute to the state, we can’t drive it on the roadways.
At least the state doesn’t claim the right to confiscate vehicles that aren’t licensed … you just can’t use the roadways.
Not yet, that is.
Deep thoughts.
Simple solution would be to put the employees under the Social Security system but that would rob the legislature of that pension piggy bank to rob to pay for their assorted feel good vote buying programs that the Illinois citizenry seem to love so much.
The first delayed or missed pension check out of Chicago/Cook county will cause a panic across sunbelt retirement communities.
Housing collapse in LeHigh Acres is my guess.
Once the first of the credit cards are cut-off they will ALL be cut-off and then the government pension house of cards will cascade into oblivion.”Retired” (did they ever really work?) CTU thieves better have stocked up on bags of Gravy Train because ultimately that will be their source of food.
Pensions will be paid first. Don’t worry though, that 55 year old retired pensioner that has a starting pension of 130k per year will get what they deserve. A 260k a year pension when they are 78.
Plenty of places to raise taxes.