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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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Pensions take up money that should go to classrooms? That really means pensions take up money that the currently-working union members want in their own pockets.
Before it all implodes, the final battle will be public union workers vs public union retirees.
Cannibalism at its finest. Lord of the Flies.
Much more money will go towards pension funding in the future. It will be over 50% of the gross tax receipts in most every city and in the State in the future. This is a form of economic cancer that there is no cure for. The private sector has gamed the voting system, they win and the taxpayer loses. The Only way out is to get out.
Just curious. Why are cities like Chicago still offering a defined benefit pension if they are not able to properly fund it? What is their end game.
Their end game? They don’t care. They know state law protects them and it is up to the Government entities to figure it out and pay the pensions. Like frequent circumstances in a third world nation, things seem to work until they don’t. Then watch out. Look at cities like Peoria. They have a city manager who appears to be a hard working guy just trying to get the bills paid and run the city. In 2028 100 percent of their general fund will be taken up with pensions. Sure they can raise property taxes and collect an extra few… Read more »
IMO its a massive RACKET hoisted on Illinois taxpayers by the Dems and their masters the public sector unions.
The end game is to continue raising taxes and adding new taxes to keep this pension disaster afloat for as long as possible.
Realize that maybe 60% of teachers in Illinois pay nothing towards their pensions. Also they don’t pay the social security tax either so that is a nice 15-18% extra in their paychecks every 2 weeks.