-- 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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One of the problems with the upcoming progressive state income tax is that it will significantly increase the tax rates for many IL residents in the middle class. Therefore, not only will many affluent residents relocate out of state, but many middle-class residents will, too.
If IL had its act together where its taxpayers weren’t already over-burdened, the progressive state income tax might not be as disagreeable as it is. However, for many residents, this will be the straw that broke the camel’s back, and they’ll scoot.
“Illinois General Fund spending on the core services of education, healthcare, social services, and public safety is down by over $1 billion” – Is it really down if we factor in pension contributions for each of those sectors?
Martire has a sneaky habit of separating pension costs from operational expenses.