-- 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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What about the harm done to minority communities by crime?
The scavenger sale is how small business people, investors, builders buy inventory to build on later, all the while getting the property back on the tax rolls. Why would you take that away? Because it’s logical and beneficial to the whole city and county to get taxes flowing again even if you wait to build until the area changes? Every time I think the IL D’s couldn’t get any dumber they find a way. Here’s a hint Pappas, it’s not the land that’s keeping the building and reinvestment levels low, it’s the animals who live on it who prevent serious… Read more »
Tax bills cannot be reduced or foregiven. All land sold must come current on taxes. So vacant land and buildings accrue decades of tax bills that exceed the marketable value of the land. Many of the buildings destroyed in the ’68 riots are still vacant today because no one wants to come current and pay years worth of unpaid tax bills, even on vacant land. Many scavenger sales go unsold and say unsold forever.
Spot on Marko. Detroit has dozens of paved street blocks with no houses. Some of which are reverting to farmland. Yes, it really can happen.
It’s a man made problem with no political will to fix it. A few years back, like 2011, I know a guy who let his property in Maywood go into foreclosure. The lender stopped paying the taxes when he stopped paying the mortgage. I wonder what happened to it. So I just looked it up, it was purchased for $52,000 in back taxes by the Cook County Land Bank. The land bank buys the taxes and gets tax deed. The money to buy properties comes from grants. Taxes stop accruing after the land bank takes possession. But the cook county… Read more »
If I’m not mistaken if the property is in a Ptell jurisdiction county (38 counties) if anybody does not pay their taxes or gets some sort of abatement or reduction the tax rate is adjusted to compensate so taxing bodies do not get less than was levied the year before but not 2 or more years before. If in the case you presented back taxes were paid which can be a few years to find a buyer then the tax rate should be less. First the tax rate went up for everyone then second back taxes were paid a few… Read more »
Not entirely – the land bank as I understand it buys the land at sales and a judge removes the liens, back taxes, etc. and makes the land attractive again. The point of the Land Bank was exactly this issue, nobody wanted to deal with the BS.