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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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Imagine electing someone like JB (never earned a penny in his life) and expecting your taxes to go down… at any income level… imagine being this dumb and thinking that this clown can spend your hard earned money better than you can
Illinois in a nutshell.
The state gave the democrats the governorship and a supermajority in the legislature. The democrats ran on this platform.
What did people really think was going to happen? That it will somehow all be ok because now that Rauner “the obstructionist who can’t get along” is gone they’ll all get to work with their sleeves rolled up, and come up with magical solutions that will make everyone happy? That the democrats will suddenly turn rightward towards reform, fiscal sanity, and caring about non-public-sector-union middle class people?
Ha!
What an absurd and pointless article. Crains repeatedly says “illinois politicians must honestly….”. Until Illinois finally goes bankrupt, Illinois politicians and honesty will be vastly separated.
Moody’s has already smiled widely over the tax plan, the markets have blessed it, the sacrificing of taxpayers at the alter of high yields is what the rating agencies are all about. And the fake “just above junk” phrase we always hear is going to be the states reward for continuing the Ponzi. Until the bond holders get a crew cut this is exactly what a well designed colluded “can kick” looks like.
“But nearly half of Illinois income comes from people making between $50,000 and $200,000 – that means you have a red bull’s-eye on your back pocket already for a tax hike soon to be announced if the progressive amendment passes.”
This needs to be drilled into everyone’s head for the next 12 months.
I’ve discussed this with people and all of them just repeat the same line that the law would give the middle class a tax break; and it’s fearmongering and lies that taxes would increase for households between $50,000 and $200,000. I say “come on, we live in IL” and like robots they repeat the same thing.
The media in Illinois don’t ask any tough questions. Two tax hikes – one in 2011 and another in 2017 – yet the deficit continues to grow. Does it occur to any journalists to ask Pritzker to explain why giving money to the same government run by people with the same tax and spend mindset will bring about anything but higher deficits than before? Like it or not, that is the track record.
Most voters don’t care or don’t want to know the answers to these tough questions. All they care about is (D) next to their name and it’s a blank check to the politicians. Sometimes the apathy among voters is so infuriating, the only answer is to leave the state. I mean really, the state isn’t worth fixing or even fighting for because its a losing battle; you may as well be a refugee to another state.
This is a great article that hit the nail on the head!
The only thing I would’ve changed in this and many other articles is replacing the phrases “pension reform” with “pension and health care benefits reform” and “pension liability” with “pension and health care benefits liabilities,” and adjust any related dollar amounts accordingly.
There’s also the issue of bloated salaries, but let’s work that later.
I would add that health care that is subsidized by taxpayers the only option should be the basic ACA (obamacare) package not the Platinum version they negotiate without any taxpayer input and it should start under S.S. rules (age 65) not 55 as is the case for many. If they want the platinum care they make up the difference. Taxpayers are mostly on the hook for over $73 Billion in lifetime health benefits for which the prices (RX and medical procedures) are rarely or never negotiated.
When the state is short of cash they delay payments to the contracted health insurers (for government employee and teachers) and Medicaid providers. A significant part of the current ?$ 8 + billion plus in deferred vendor payments is owed to the health insurers. In the past providers and insurers have waited over 12 months for payment. They already pay Medicaid rates at or near the bottom of the nation on a per capital basis for all Medicaid services, in most instances less than 50 % of costs, with hospitals and nursing homes can wait 6-9+ months for payments. It… Read more »
My doctor won’t accept Medicaid patients, maybe this is why.
Rick, a lot of doctors around here won’t, either. And I would imagine that’s the reason, too. It’s not as though their malpractice insurers would accept that sort of thing, so they’ve got money going out either wat
My wife’s hospital is owed literally hundreds of millions of dollars in medicaid money.