-- 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’m pretty certain that this is unconstitutional. The utilities provide a product so you can’t charge different people different prices for the same product.The may be able to offer a low income discount but they can’t directly transfer the discounted amount directly onto the other customers.
What about companies that offer senior discounts? or discounts for members of the military?
While these discounts are great for the beneficiary, everyone else just ends up paying the difference. Not sure they are unconstitutional though. If they are, then a lot of companies will need to change their pricing.
The issue is the direct transfer of revenue from one category of customer to another category of customer. Companies that offer senior discounts/military discounts, etc can claim that the discount comes out of their profits. A utility as a quasi public entity with a preordained profit margin cant make such a claim. They have to show their math. Second, as a non-discount available patron I can choose to not patronize companies that offer senior discounts/military discounts. With a utility that isn’t a choice.I’m held hostage.
I agree with you that it’s unfair I’m just stating that it happens all the time. Utility providers around the country offer discounts based on age and income. Clearly they are charging the others more to pay for this as it doesn’t come out of profits. I believe an Indiana energy provider has senior and military veteran discounts. It’s not a new idea and I’m not aware of how it would be unconstitutional.
Not everything that is unfair is unconstitutional.
Medicare already does it with their ‘IRMAA’ charge based on previous year’s IRS adjusted gross income (AGI).
All Medicare recipients receive the same benefits, but some pay as much as nearly triple what others pay.
Have a difficult year and take too much from your retirement savings or have a job in retirement and voila! The next year you’ll have to pay an additional monthly IRMAA premium.
Prorating utilities based on income is simply wrong. BTW … how would the utilities determine income? Self-reporting or in collusion with the IRS … asking for a friend.
i got a notice from Ameren saying more or less the same thing and unfortunately they are the only electric distributer in my area.