-- 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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The assumptions the state pension plans use don’t correlate to 90% funding. The ratings agencies have known this for years. Why are they complaining now?
You’re right. It also appears to be a coordinated effort with the ratings agency along with the commercial club of Chicago getting on this issue. Throw in Martwick and JB floating progressive tax trial balloons and it all makes sense. They will keep the drum beat going for awhile and eventually decide to raise more taxes. Perhaps another push for a progressive tax with the fall back flat tax increase to 5.95% if it doesn’t pass. If it passes, “rich” retirees pay more as well. If not, taxing services will be on the table. It’s going to happen it’s just… Read more »
The ratings agencies are in a constant loop, stating “revenues aren’t enough,” then when taxes are raised, they say “OK, but these high taxes will limit future growth, so not good.” The truth is they are never satisfied with any solution. The only way out of ratings jail is to never enter tbw.
Taxing the services of t he Democrat trial lawyers would be great considering the many out of state lawsuit such as the asbestos liability suits. The trial lawyers are making millions and as Democrats should, after all, pay their fair share. After all the Courthouses and all related expenses are paid for by the common taxpayers while the plaintiffs, so often out state residents, in these cases pay zilch.
I’m good with that although I don’t think that would ever happen while democrats are in charge.
One change, ….. while CORRUPT Dems are in charge.
A huge amount of that money is spent in Florida, helping that economy and hurting the Illinois economy. This number is growing every year as more and more people are fleeing Illinois with overly generous pensions.