-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
Who cares what the law says? Dictator Jabba will pay these bonds back whenever he feels like it, if at all. It’s a permanent state of emergency!
If you lend money to the state of Illinois you deserve to lose some or all of that money
Who in their right mind would lend Illinois money?
And to boot construction here costs three times as much as in Wisconsin and takes three times as long and involves three times as many lawsuits and approvals. We build one mile of road for every three Wisconsin can build.
“However, Pritzker’s budget office said projected revenues for the next fiscal year are expected to fall by $4.6 billion from previous projections.” I think this is wildly optimistic to lose only $4.6B in revenue. Sales taxes alone bring in something close to $8B and the only money I’ve spent in two months now is on food at the 1% tax rate. I have no plans to spend money I would have otherwise spent. I was thinking of upgrading my vehicle, but now that it’s just sitting unused in my garage, I don’t need to. I wanted a new couch, but… Read more »
Borrow from who exactly?
Pension Funds again! Then our wallets with no IOU’s
Don’t know why I’m getting down votes. This has happened many times. Citizens Budget Commission Feb 25, 2015 from an article. New York should stop borrowing from its pension fund. New York Times June 11,2010 State plan makes fund both borrower and lender. Wants to borrow $9B over 6 years. There are many more. Here in Illinois TRS has $50B or so in assets. Very tempting for the state to borrow and probably repayment rates like late vendor program which pays 1%/month after 90 days. I don’t see the state reducing late payment interest to reflect current near 0 rates… Read more »
You are getting down-votes because there are some big spending government lovers and Public Sector Union members who read Wirepoints. The Rich Millers of the world. The down-vote anything that doesn’t equate to “steal from the taxpayers”.
I’m fine with the state borrowing from pensions since I don’t care if they are paid back. As far as I’m concerned they can borrow all the money in the pensions and put it all down on 22 black. That actually may be Illinois best bet at this point.