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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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Illinoisans should pay very close attention to this situation. Significant property tax hikes are on the horizon for Rockford for the pension issue. So a new casino is scheduled to provide funding to the City. So does the City put the funding towards its pension obligations that, like it or not, will be paid? In true Illinois style the funds are to be scattered among assorted feel good spending programs and who knows what else to “uplift” peoples lives instead. A token two million will be devoted to pensions that will delay the funding issue perhaps a year or two.… Read more »
Do Rockford residents have a higher PT threshold of pain than most other Illinoisans? I know Rockford residents already have significantly higher PT rates than most Illinoisans, so I’d think the info you presented in your comment would start at least a mini-wave of out-migration.
Not one word about money used for property tax reductions. Here’s an article on the recent school contract. Notice it is for $594M far above the previous contract .This contract is from 2021 to 2025 so the high inflation is most likely not factored in but the next contract will be for sure. https://www.rrstar.com/story/news/education/2021/08/31/rockford-public-schools-teachers-get-new-4-year-labor-agreement/8254921002/ https://www.wifr.com/2021/08/25/rockford-school-board-approves-4-year-contract-teachers/ Notice the next to last paragraph of the previous link at WIFR. Nothing mentioned about abysmal student results and declining enrollment. I’m curious in how much the state will get from gambling proceeds vs the city at only $7M. Seems like most of Rockford’s allocation… Read more »
Yet out of the projected 7 million only 2 million is projected for the pensions and, from what I have seen in my lifetime, there will be no doubt assorted little programs that will take a chunk out of that as well.