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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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1. Pensions can’t be diminished … until they can.
2. This add-on expense to property owners is just another way to incentivize residents to move out of state.
3. “Public safety pension fees” – does anyone else find this be a strange phrase? So, if you don’t pay for these exorbitant pensions, I guess your safety will be at risk. Unless you relocate, you’re being held hostage.
As you’re moving out of IL, you can sing the line from the Don Henley song: “This is the last worthless evening that you’ll have to spend.”
This new Peoria Public Safety Pension fee is a hidden property tax as it is based on the size of the property.
The fee makes property tax comparisons more difficult as now the fee needs to be factored in.
The same is true of communities that jack up the cost of the water bill to subsidize other costs such as pensions.
So you end up with property tax comparisons with a bunch of asterisks, assuming one can even figure out all the tricks.
I love Illinois politicians. Not because I *love* them, but I love their entertainment value. “Council leaders said they don’t want to increase property taxes, so they plan to utilize this fee to cover the costs of pension contributions.” Then, the punch line: “The amount of money you will be billed is based on the size of your property.” I literally laughed out loud. For added good measure–because they don’t want to listen to their nasty constituents, who will rightfully and bitterly complain about this open wealth grab: “Next week, the city council is voting on a plan to open… Read more »
Makes me wish Carlin and Hicks were both still alive. Imagine the material the current Illinois pols could give them.
This will backfire. Now people realize how cheap police and fire is compared to the thousands sent to everything else. Shame on shifting a line item to blame public safety first.