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.
The biggest problem with consolidating school districts is with the pay and benefits of existing employees, in particular, organized labor.
The employees from the lower compensated district want a compensation hike to be commensurate with the higher paid district.
They are generally successful in doing so, in large part from temporary state financial incentives to the new consolidated school district.
For local taxpayers to save money through consolidation, state taxpayers have historically expended more money.
That is correct. Everyone assumes the new district will just use average salaries but that never happens. The higher salary schedule always wins out. What is saved in admin redundancy is eaten up by the higher salaries.