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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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The new safety act will clear those visitors off when they realize the thugs will look at places like these as hunting grounds.
Because more people walking down a path surrounded by trees caused great stress to the forest? Forest preserve services being consumed was pretty vague the entire campaign. I get the need for maintenance and such, but it’s not like semi trucks were wearing things down.
I predicted this would pass with 65% of the vote. Looks like I underestimated.
Government is NEVER satiated; it can never have “enough” of someone else’s money.
Twenty-one percent of this levy, the largest portion of this increase, will go to pension debt.
Debt needs to be paid one way or the other so might as well start using tax increases accordingly. Letting the debt pile up only means more tax increases in the future will be required. They should raise the flat income tax to 6.5% with the entire increase going to pensions. The state could also start taxing retirement income. We need more money if we want a balanced budget that so many desire.
PPF, you must feel the reason that other people exist is keep you in high cotton.
Most of us public pensioners are not in *high cotton* as you say…
We are collecting our decent pensions because we sacrificed a normal life to serve (I was an LEO 30+ yrs) & paid many prices to achieve this goal…
However there are many elites who are collecting several pensions, or outrageous pensions such as school administrators, politicians etc…
When reform comes, as it most certainly will, it will be us little guys biting the bullet as always…
Let’s get those immigrants to work paying for pensioners vacation homes in florida. Get to work, pay up!
Just the need to honor constitutional obligations. Older generations used to understand the value of keeping your word and the value of the constitution. Now it seems some Old Joe types want to steal because they don’t want their income tax rate to increase a little. Of course, Old Joe types don’t currently pay any income taxes on their retirement income but want to steal from others. All while acting like they are over taxed. You don’t just get to pick and choose what to follow. Taxes will be raised and the debt will be paid. If you don’t like… Read more »
https://www.wsj.com/articles/pennsylvania-city-chester-files-for-bankruptcy-to-cut-pension-debt-11668191506 Pennsylvania City Chester Files for Bankruptcy to Cut Pension Debt The Philadelphia area city fell behind on pension and other bills that amounted to hundreds of millions of dollars “The residents of Chester have borne too much burden for too long, and the city can no longer afford to mortgage its future to pay for past and present financial peril,” Mr. Doweary said. One of the biggest financial burdens for the city near Philadelphia has been its obligations to its retirees. The city of about 32,500 people failed to make payments to its three pension plans — for police,… Read more »
Yes. Failing to make payments between 2013 and 2020 is a problem. That’s why Illinois has the pension intercept law so cities like Harvey has money going to pensions first. Also, cities like these have massive poverty. Think Harvey and East St. Louis. I’m sure those pensions will receive some cut but it will be done through bankruptcy. I’ve stated all along that pensions will be paid first but that doesn’t mean they will never get cut. Now a judge will decide how much pensioners will get vs bondholders. Past experience suggest that pensioners will get the better of the… Read more »
PPF, you need to do some research on Depression era scrip. You can buy one of these IOUs from yesteryear at a local coin show for about $12.00.
You do make good arguments for your worldview and your good with numbers and know history. I think you’d fit right in as a seasonal temp at H&R Block for your eventual side hustle.
No side hustle needed. I have multiple revenue streams. 6 figure pension money is just fun money. Perhaps you could get a part time job as a greeter at Walmart. You’re going to need some additional money to pay some more taxes.
I don’t think you get it. Those pensions were extorted from the tax payers by unions and mobsters over the last 50 years. If they didn’t get what they wanted they unleashed crippling strikes. Our unions are organized crime syndicates and I don’t feel bad not paying them. The collective members of those unions willingly and knowingly participate in the extortion racket, so Fuq’m all.
More accurately, the county was paying out higher salaries than they could afford.
If you cannot afford the pension payment, you cannot afford the salary upon which it is based.
So don’t agree to pay more money than you can afford. Hire less workers. Have fewer services. Stealing from those that traded labor is not an option. Either cut services or raise taxes.
Or lower their salaries and/or have them pay more for health insurance. Unless they’d rather not have a pension, but I don’t think that is an option.
Compensation is compensation. If the pension is becoming too expensive, freeze current compensation until you catch up.
“freeze current compensation until you catch up.”
I agree. Try to negotiate for lower salaries. Would save money now as well as future pension liabilities. I often thought the best way for Illinois would have been to eliminate collective bargaining and just offer a take it leave it pay amount. If tier 1 people quit out of frustration even more savings. Of course, now the Illinois voters decided that isn’t an option by enshrining collective bargaining into our constitutional rights. Cuts will need to some from somewhere else now.
It’s what the voters want.
You’re misconstruing salaries for compensation. If your salary remains the same but I put $1,000 more into your pension, your compensation increased $1,000. This happens all the time with the trade unions. Their contract might allow for an extra $2/hour, but they have to break that out across salary, benefits, and pension. Take look at the prevailing wage schedule and you’ll see what I mean.
I’m not misconstruing anything. If you lower salaries then pension cost will also go down since they are calculated based on an average salary of the last x number of years. What statement gave you the impression that I misconstrued anything. I understand perfectly total compensation. I get that if health care cost go up then a local school district may offer less salary to adjust total compensation. It happens all the time in contract negotiation. Keep in mind that the pension cost for these local school contracts are not adjusted at the local level. The state is on the… Read more »
Fortunately, federal insolvency law is not constrained by some ridiculous voter referendum guaranteeing pensions to union members.
State is no where near insolvency. If that happens I’m sure it will look similar to the Arkansas insolvency in 1933. You know, a massive tax hike, massive layoffs, service cuts, etc… Oh and those NY Bonds they tried to get out of paying? Forced by the courts to pay.
A lot more taxes to be raised until that day.
So if they wouldn’t work for the low sum of money offered they withheld their labor? People aren’t required to work for any wage offered. Unionized people negotiate and will only trade their labor at a fair and agreed upon price. If you don’t want to pay it then you don’t get the labor. Pretty simple. You are not entitled to their labor at any price.
So Marko, you don’t feel bad screwing over people that are retired? I don’t feel bad that you are going to pay more in taxes. I wonder what’s more likely? Pensioners getting a cut or taxes going up? Lol