-- 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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Expenses are primarily compensation for faculty and administrators + expenses related to upkeep of the physical plant (repairs, utilities, etc.). Revenues are tuition and state/federal aid including research grants. Probably other things, but I expect the foregoing comprise the bulk of expenses and revenues. Pensions are for those still working and for those already retired. But whatever goes into pensions is part of the compensation category. I expect we would find that the compensation category is excessive compared to almost any other enterprise other than professional firms (lawyers, CPA’s, doctors) and large corporations. However, the high compensation that is paid… Read more »
Well said, j.a.
Great points. You have identified a hidden tax shelter…tenure in public institutions. Maybe IL needs a tenure tax.
Could a professor make more in the private sector? Perhaps, but if he could, wouldn’t he already be there? It always comes back to how we value risk.