-- 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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I laughed at the very first sentence lauding the “independent” analysts at the rating agencies. As Wirepoints has pointed out before, rating agencies are paid by the City, hope to get more business, and know darn well that they won’t get future work with negative comments. To determine just how “independent ” these folks are, it might be helpful to know how many millions of dollars the City, School Board, Park District and Public Building Commission have paid them over the years. I’ll bet the rating agencies have millions of reasons to be so nice.
Lightfoot’s office issued a one-word statement: Suckers!
1. How can Chicago, with its huge and ever-increasing debt, get affirmative credit ratings?
2. If I’m a Chicago property owner, I don’t care about Chicago’s credit rating. I care about whether my next tax bill jumped another 5-10 percent. If it did, I’d strongly consider moving out of Chicago, even though I’d take a hit due to my property depreciating in recent years. It’s called cutting your losses.
to answer #1 – promises of massive tax hikes, fees, and nickle and dimes pried from your already nearly empty pockets