-- 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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I like how the bar graph splits up the PBO’s into buckets. Those are Pension Benefit Obligations, for you unacquainted with the term. These are all state pensions.
Interestingly, Illinois as a whole did the same dumb tactic of spending as if Uncle Fed’s Coof money would never end as many of our esteemed Executive Directors did. Another, even larger fiscal cliff.
Chicago media on the subjects? Crickets. Like usual.
I can see the headline now:
Trump to Illinois: Drop Dead.
More like, “You intentionally made this mess. You fix it.”
No more allowance money from Uncle Fed.
But, but, but, wasn’t Chubby recently and proudly patting his own back for a balanced budget (ahead of a new Harris admin making cabinet choices?).
Can you hear that train a comin’? Comin’ round the bend.
Yes, you guessed it. Your prize is higher taxes. Much higher given these numbers. At this point, you deserve it. Don’t complain. You asked for it. Now you are going to get exactly what you asked for in spades. Enjoy.