-- 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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Would you say that because of property taxes, the value has actually decreased?
Michael, yes, I think everybody agrees that higher property taxes drive down values, and that’s been very apparent in Illinois. Think about how it works to qualify for a mortgage. They add up your mortgage payment, insurance and property taxes and the total has to be below some percentage of income — 30% – 33%. Higher taxes mean fewer qualified buyers.