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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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Cut Pensions.
The legislature doesn’t have the power to cut the debt the state owes without actually paying it. So anything but bondholder payments and pensions can be cut. So now what?
Close public sector schemes now. Reform pensions, transfer all of them to market 401k’s etc, called defined contribution schemes as opposed to define benefit schemes. This has been done in Europe. This needs a change to the Illinois constitution, which can be presented.
You may be right in theory, but in reality you’re not up to date this issue at all. That idea has been bandied about for a few years already and with no near-term readiness for adopting it. One of the most obvious roadblocks is that current public workers help to fund their respective retirement systems through payroll deductions as required of them by state law. Removing that to allow them to contribute to their own 401k plans means the state would have to pick-up those lost employee contributions. If you think the current unfunded public employee retirements system unfunded liabilities… Read more »
Even if the state were to change the constitution (a huge if with no support among the current politicians and a long time frame to accomplish) you would most likely be unable to “close public sector schemes now” as you state. The best a constitutional amendment would get you would be to treat pensions as mere contracts. This may allow for minor modifications but not some massive overhaul or as you suggest elimination. Even in Rhode Island where they were able to get some concessions in the courts they were only able to eliminate increases every other year. While that… Read more »
The truth is just leave the state and tell the pensioners to f-off. When the pensions inevitably collapse and are cut (one way or another), you will be somewhere else enjoying a better life.
The truth is just leave the state and tell the pensioners to f-off. When the pensions inevitably collapse and are cut (one way or another), you will be somewhere else enjoying a better life.
CUT PENSIONS.
So instead of enacting spending cuts when the Wuhan Virus shutdown started in March – as many other states did – JB/Madigan wait five months to ponder cuts? Of course any spending cuts will be planned by JB/Madigan to minimize the impact of the Priority citizens of Illinois: AFSCME, SEIU, IFT and CTU. Everyone else can go pound sand.
and where does the Fed Gov get that $ ??????
IL is insolvent and should be treated as such via bankruptcy or special legislation that allows for restructuring of pension obligations.
There is only one solution: Illinois bankruptcy now. Bust all public sector unions.
It’s inevitable and the sooner the better. Everything else is a waste of time.
Pull It .. now!
It seems like our mostly self appointed leaders in Springfield need an Exorcism! Instead of spitting out green goo their heads spin around yelling Tax! Tax! Tax! Where’s Linda Blair when you need here?
Sounds to me like J Beluga better open up the State of Intoxication asap, Chinese Virus be damned!
JB: “It’s not my fault Illinois Small Businesses are shutting the doors, this is the cost of containing COVID and there’s nothing I can do to help them make up their revenue loss.”
Also JB: “It’s the Federal Governments responsibility to make up for the State’s lost revenue.”
*These aren’t direct quotes but loose translations of his sentiments in recent days.
Pritzker said just a few months ago the budget passed was balanced. Then Pritzker handed out to his donors a unearned, unwarranted +$250M pay increase to state union employees. Most people would call that fraud, and malfeasance.
CUT, DEEP CUTS. Not one givernment employee was laid off because of COVID. Private industry was forced to shut down, along with government picking and choosing the winners and losers.
One reason to vote for Republicans and Trump, no bailouts of profligate states.
Downstate IL Republicans support AFSCME prison unions. See Rep. Bryant
https://en.wikipedia.org/wiki/Terri_Bryant
exactly! as disliked as Trump is, and is strongly disliked, he is more likely to oppose a blue-state bailout. which is what most Dem states really want. IL, NJ, CT, RI & CA are all broke and want a bailout
One reap what one sows. Chickens coming home to roost now for the Public Sector. About time too. Nothing personal. I have had to shut down my business because of the Governor’s orders, considered non-essential. My City Government Palos Heights continues to whistle past the graveyard. $400k spent on a park project during COVID. If the kids do not go back to school, I want my taxes back I hand to the schools, as the President has indicated. The President is right with his plan; stop evictions and send money direct to Americans. No bail outs. Keep it simple. God… Read more »
Spend like a drunken sailor then blame it on the Feds not giving a bailout…the Illinois way.
Give Federal Aid to Governors, mayors who tell police to stand down to violence, riots and let police get hurt, I say NO WAY!
These Governors and mayors made their BED, now lie in it!
Did he ever think about cutting the out of control pensions ? Hes threatening because he knows hes going to lose .
They have made it perfectly clear in the past that pensions will be the very last thing to be cut — because “a pension is a pwomise”.
“A contract is a contract.”
He’ll say until we all have collective nausea.
Empty threats.
Why just why can’t this man worry about Illinois and Illinois only, stop worrying about what is going on across the country. Governor chuckles stop comparing Illinois to the rest of the country because this state shouldn’t be compared to anything but Illinois alone. Focus on are state because we are done for and your attitude and lack there of leadership is nonexistent. And yes start cutting your union jobs need a ax I have several for you.
Because, he is going to run for President. Do you think this billionaire wants to settle for running a bankrupt state with no future and the Cryptkeeper running things?
Everything is a performance for the real prize. My guess is that he will put in a primary bid in 2024.
He couldn’t care less about the future of Illinois, but he does care about how he looks while running it.
LOL…that’s a job way above his pay-grade. Can you imagine this man as Pres? Talk about deer-in-the-headlights. Pritz can’t handle one state in crisis. Imagine what he’d do to an entire country?!
Good. Cut away.
Wow this guy want his cake, the pie, and all of the candy too! To bad that nobody listened when the last Governor wanted to save for a rainy day. Well the rainy day is here and we don’t have money. What a putz!
Start with the teachers and work your way out. No teach. No pay. 1 teacher and a ton of notebooks which has already been done. One teacher can teach an entire grade. If they dont want to work in a school. Go work at McDonalds
Completely agree. Walmart, Target, Menards, Dicks are all hiring, cannot get people. Fire all the teachers. Give parents a choice and their money back.