-- 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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Maybe the pension fund’s goal is that the city hands over the airport (and many other assets in the future) to them for free. This will then temporarily increase the assets of the fund thus reducing the unfunded liability percentage. Then after a short time the pension fund will sell back the airport to the city with a handsome profit. On the books this will be a Win-Win for the pension fund and the city except for the taxpayers who will be footing the entire transaction costs without any say in the matter whatsoever!!