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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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But, but, but…It’s for the children
(lmao)
One thing to say fu school districts
OK. Now pay 5% more in property taxes. Feel better?
Sorry, I will be long gone
This guy is a complete fraud to ignore the fact we are already grossly overtaxed for the substandard education delivered.
The inflation rate may soon overtake the rate of students actually able to read at grade level.
They need to cut their salaries, benefits and spending accounts on conventions, eating out and cavorting around before they tax to the mass. Not to mention the academic failure of the students. These people are a greedy disgrace.
Salaries aren’t going down. If anything I would expect most union contracts to be increased around 5%. Not sure how much is spent on conventions and eating out so no real savings there. Inflation causes prices to go up. Labor costs for running a school are no different. If anything they need more than 5% but it sounds like that’s the max.
They are grossly overpaid and fail to deliver not to mention the insane pension plan.
You need to get used to the idea of their wages increasing. They are underpaid and most of the new contracts have multiple years of 5% increases built in. Those pensions are a contract and the people of Illinois have stated that they can not be reduced or diminished. The state needs to increase taxes or cut spending where allowed and pay its bills. Providing tax breaks when revenue goes up should not be allowed until the state budget is truly balanced, including actuarial contributions to pensions. Go ahead and spend your time outraged, just make sure you keep paying… Read more »
PPF – again the issue is not being outraged but rather whether this state of affairs is sustainable. Inflation throws a difficult wrench into the debate because it is destructive to everyone. The infrastructure costs in Illinois are very high with very little means to control them (yes, complaining is often futile). I think the demographic to watch is the 250-500k in income per annum crowd. If they continue to leave in even modest numbers, lots of pain will obtain for those who stay. That is where the money is. I tend to think Illinois will slowly grind into misery,… Read more »
While I don’t like the content of your post I gotta admit…you are 100% correct. Illinoisan’s must, as their voting record shows, are fully satisfied with the situation.
The great news is that if salaries cannot be reduced, then they can be fired instead! I look forward to seeing these useless fools taking my order at McDonalds.
You’re right debtsor. School districts can reduce headcount. If a fiscally responsible school district can’t afford the new wages they will need to cut elsewhere. Just keep in mind that typically these negotiations bargain for money but also class size. It’s not very easy for a school district to negotiate to reduce worker headcount. Therefore, most school districts will ask for the maximum of 5%.
Inflation impacts everything. The cost of government is no different so it shouldn’t surprise anyone that property taxes will need to increase to cover for inflation.