-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
And yet you choose to live there.
The sympathy well is dry.
Illinois needs a ‘No New Taxes’ pledge from the next gov to help pathetic economic growth. Also a freeze on hiring. Get out the budget axe and end some sacred cows.
The state is already short $5 billion per year for actuarial required payments to pensions. So get out your budget axe and let us know where you will find this $5 billion. The influx of federal money may delay these future tax increases but rest assured they are on the horizon.
You can cut union employees and outsource to start.
Show your work. Which employees will be cut? You realize that the highest paid employees are typically the last to be cut per their union contract? How many are you going to cut? How much savings will you actually obtain per employee? Where are all these potential contract employees that will receive low pay and minimal benefits going to come from? Before you would see one dime of savings you would most likely need to eliminate rights to collective bargaining. Do you think lawmakers are willing to change those laws? Certainly doesn’t look like it considering both republicans and democrats… Read more »
Its been said repeatedly that there is no complex problem that some presume can’t be solved by a simple (generally unworkable) solution. We see that here, there and everywhere from wanna-be experts.
Rauner was unsuccessful because Madigan made sure he was unsuccessful. Simply put, Madigan was to Rauner as Mitch McConnell was to Obama. It’s not much more complicated than that. Rauner basically admitted this too. His only power was the veto. He said that IL government is full of life time bureaucrat Democrat employees who can’t be fired, can’t be controlled, can’t be disciplined, and actively resisted and blocked change he tried to make through executive order. Madigan was behind all of it. Last I heard, Rauner became so frustrated with the impotence of the gov’s office, that he didn’t really… Read more »
Thanks for further driving home my point debtsor. A “no new taxes” pledge from a prospective governor means absolutely nothing. A governor proposing a hiring freeze would do absolutely nothing. The legislature has no appetite for any of these things so it won’t matter.
Getting rid of Pritzker will be a net positive just to remove his executive orders. Other than that, not much will change in terms of the financials. More taxes will be needed regardless of who is elected governor.
A R governor + non-supermajority legislature would be a fantastic win. It means the legislature can stop making things worse.
The communist surveys the carnage they alone created and is always disappointed they can’t cause more.
That forcing section 8 bill onto all landlords in the state is just another example of the damage they cause, and they keep looking for more.
An R veto that cannot be overrode would stop things from getting worse for at least four years. Giving many of us more breathing room as we prepare to leave the state.
Layoffs, furloughs, outsourcing are part of it all. Time for changes to be made to state government, changes which have been done in the private sector for decades in Illinois to reduce costs. This constant coddling of union workers needs to end if Illinois is to come close to fixing it’s rising costs.
Add this fact to the state’s financial deficit, unbalanced budget, looming pension debt, and tax and spend mentality, remaining in IL is becoming less and less attractive.
And, don’t forget, in November vote the bum out!
Don’t forget according to Illinois politicians it is never a spending problem. It is ALWAYS a Revenue problem.
But no worries, his lordship jb is going to grant us carnival barker class a one time $300 prop tax break and a couple $cent off on a gl of gas on the federal dime…systemically equitably sho-nuff proper!
And to think, the King wants more fees and taxes.
Not only does Illinois have the highest tax burden, it has the highest by more the 10% over the nearest competitor. When King Pritzker sticks those sausage fingers into your pockets, he grabs as much as he can.
The Fair Tax would’ve made it worse.