-- Connecting the dots between our economy, government and business --
Chicago's CEO recently revised the first-year deficit upward to $700 million after acknowledging that the four city employee pension funds had fallen short of the assumed 7% return on investments.
But Lightfoot said Friday that $700 million figure isn’t high enough.
“I know that number has been put out by the current administration, but it’s not $700 million. It’s worse than that. I’m not sure why they choose to put that number out because it’s not accurate,” Lightfoot said.
The situation that Lightfoot is inheriting may well go beyond the familiar script fornew mayors.
“We do need help from Springfield. We’re looking at a variety of options,” she said. “I’ve had extensive personal conversations with the governor and the legislative leaders on both sides of the aisle. We are actively engaged with them and looking at ways we can get some relief from Springfield and we hope that will happen — whether it’s this session or in the fall veto session.”
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
Bigger red flag—how long has rahm, who makes big claims about saving city finances bin lying to us. First it $500 mil, then $700mil, now lighfoot says thats all a sham. Nobody in press is calling him out
No article just a url and that doesn’t work.
Lightfoot is wanting help from Springfield??? Get a clue, honey. Come to wirepoints.com Read the articles. They are in as bad a shape, or worse, than we are. Help from Springfield ain’t gonna happen, nor from Wash DC, either.
I encourage you to pay close attention to Lightfoot’s words. Listen very closely to the way she talks, to the things she says. ““I know that number has been put out by the current administration, but it’s not $700 million. It’s worse than that. I’m not sure why they choose to put that number out because it’s not accurate,” Lightfoot said.” This is not her first comment of this nature. What is glaringly obvious is that she is not a politician talking. She is talking a like a court appointed receiver. She’s telling the truth. She’s taken over the finances… Read more »
I mentioned the day after her election that it was a very inopportune time to be a socialist because there is no money. My guess is that the productive class is at or near its tax saturation point, although the city no doubt will continue to raise taxes. So that leaves even more borrowing, which is what Lightfoot as a corporate lawyer fears because she knows the one sided and burdensome nature of those future loan instruments. She knows she may be the one to be in office when lenders no longer will participate, the real day of reckoning irrespective… Read more »