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.
Perhaps it’s in there and I missed it, but I haven’t seen what recourse the Fed has if Illinois decides to not repay it’s MLF ‘loan’? I strongly suspect that Pritzker could by ‘executive order’ declare the MLF Fed loan to be canceled due to the Covid-19.
Borrow all you want from Municipal Issue Liquidity Facility, won’t do any good without spending reform which the Democrats staunchly refuse to do.