-- 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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High property taxes are mostly to blame for high rents especially here in Rockford. Around 50% of my rent goes to property taxes and I have not yet received the new tax bill. Most of my bill goes to the school district-community college and pensions with no end in sight. The only saving grace is that property values are going up due to very low inventory and not much new construction so I will wait it out just a little longer.
These certainly contribute but housing costs are a problem nationwide. We are in housing bubble 2.0 which is larger than housing 1.0.