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At a time when union leaders claim another $38 million could end the teachers strike, Mayor Lori Lightfoot’s 2020 budget requires the Chicago Public Schools to reimburse the city for $60 million in pension contributions previously covered by City Hall. The historic about-face is buried in the mayor’s budget overview. It states, “In 2020, an additional $60 million is expected from Chicago Public Schools to cover a portion of its share of the city’s annual contribution to the Municipal Employees’ Annuity and Benefit Fund.”
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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