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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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States cannot go bankrupt but can become insolvent. States are sovereign entities, almost like small countries unto themselves. The state even runs its own court system, the court of claims, the only place to sue the state of Illinois for non-payment of debts. The reality is that Illinois will eventually partially default on its debt and then lose access to credit markets, and then stop paying the pensions. PPF thinks that pensions will be paid first, but that’s not going to happen, especially when pensioners are merely parties to a contract, and not a secured creditor or bond holder. When… Read more »
Pritzker doesn’t care. He has much bigger plans. He wants to become president and bankrupt the entire country.
God help us if this tax cheat, Guv Pigchop, runs for Prez.
He’s your typical lying, big spending, and big taxing Dem.
I did not say corrupt as so far he’s avoided all the corruption in Dem controlled Illinois.
Wow, this is a good article. I think I’m going to read Aaron Withe’s book–Freedom is the Foundation.
There is no provision for States to go bankrupt. Pritzker certainly knows that but apparently the writer of that article doesn’t. What it does mean then is higher taxes. Bankruptcy would let taxpayers off the hook but that can not happen. So cut spending or hike taxes and my guess is the Illinois voters will chose higher taxes.
No Federal provision yet…
Perhaps in law but in practice entire countries have been bankrupted. Google on Venezuela for a recent example.
RICO
It is already bankrupt. It is morally corrupt in every way. Sold out to the Public Sector Unions. The poor taxpayers should flee like the hundreds of thousands have already.