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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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I’d give about 7:1 that they uphold the trial court and invalidate the reforms.
Mark what are the odds the Supremes over turn the lower courts decision?
It will be interesting to watch how the Supremes handle the Cities arguement that thier is no city duty to capitalize into the fund. The trial court Judge did not take the bait here but sidestepped it in dicta. Allot rides on the viability for a city or municipality to be able to dry up a fund, and walk away, and start up a new fund with new rules and qualifications. Or weather the Constitution and the impairment clause mandates the duty to a city or municipality to appropriate into the fund. This issue, I expect, will have Wirepoints attention.
Pam, you are exactly right. We’ve written about that before and that issue is far more important than the validity of the reforms. I suspect they won’t address the issue, and will, instead, simply rule that it makes no difference — that the reforms are invalid under their previous SB-1 ruling.