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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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“And whether voters approve an amendment to the state constitution in November allowing for a graduated income tax system could have an impact, Moody’s said. The graduated system pushed by Pritzker “would add some revenue volatility but would greatly improve flexibility to respond to pension contribution and other spending needs as well as shifting economic conditions,” Moody’s analysts wrote. “Rejection of the amendment probably will force the state to consider other alternatives, such as aggressive spending reductions, an increase in the existing flat income tax rate or application of the state sales taxes to services.”” WOW, this is amazing, it’s… Read more »