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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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Democrats have a big decision to make. There has never been a better time to remove the all powerful puppeteer. The only problem is they also know that tax increases are inevitable and the next speaker will have the to do some heavy lifting. Unless that person is in an extremely safe district (or willing to start the speakership by gerrymandering his/her own district) they end up putting their own future at risks. What democrat would really want that job?
They want him on that wall. They need him on that wall.
Tax increases aren’t inevitable. Massive pension cuts ARE inevitable.
Do you actually believe that TPG? Even if the legislature had a come to Jesus and put a constitutional amendment on the ballot to reduce pensions and if the courts allowed those cuts when do you think savings would kick in? That would be years away it it happened at all. In the meantime the state needs more in taxes since no one has the appetite to make those large cuts to the discretionary portion of the budget. So go out and find 60% in both the house and senate that will put that on the ballot. Hint, they are… Read more »
Massive pension cuts are inevitable. Illinois bankruptcy is inevitable. Maybe not tomorrow. maybe not next week but eventually. Illinois is out of money. Inevitably, Illinois will no longer be able to borrow money. Then the entire charade collapses. Pensions will be bare naked exposed in a financial default or bankruptcy and they will be cut. Ask the Greeks about it. The arithmetic is inexorable. Period.
Tax increases are inevitable TPG. You obviously don’t want to believe that but it’s coming your way. If the state runs short on money then the courts will step in just as they did during the Rauner years. What happened after that? Oh that’s right even republicans got on board with a tax increase. Lots of things left to tax. Several years with various tax increases before you see one penny cut from pensions.
I’m curious…what type of “massive” pension cut do you think is on the way? Give me a percentage. When?
United van lines better be ready