-- 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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If the voters of Illinois really want a balanced budget they will start increasing funding to the pension funds. Increase taxes or cut spending. Increasing income taxes to 5.95% should get the 4 billion the state needs.
Instead we get people that complain about the budget but don’t want to increase taxes or cut spending elsewhere to pay for it.
Though I wholeheartedly agree that pension payment holidays have to go and an influx of tax revenues and ceasation of state giveaways are the only way to get past this financial mess, I don’t see IL voters tolerating much more taxation. When the governor starts up new revenue sucking programs without identifying new funding, you know there’s a major disconnect. But consider this: JB has NEVER had to budget for anything. He’s a billionaire! His life has been one of unfettered indulgence. How can you expect someone with that kind of background to be fiscally responsible? Especially since he declared… Read more »
I’ve said this many times before. When we get our tax bills and within that are our pension payments obligations either directly or indirectly that are included in the contracts. So the bill we receive indicates that our responsibility for that year is paid in full but it never is. This is on the local level. Nowhere on any tax bill does it say This is only a partial payment and you are still responsible for pension managers not getting expected returns of 7%. So the money we pay from property and other taxes is credited to current employees on… Read more »