Skip to comments.Chicago pension crisis called worst in nation
Posted on 12/31/2013 5:49:17 AM PST by SeekAndFind
Calling the Chicago pension crisis the worst in the nation is saying something - like, how bad can it get?
The city's underfunded pension system for teachers, firefighters, police, and transit workers threatens to punch a hole in the city budget that would devastate city services. The teachers' alone are $1 billion short of funds, while the city as a whole is looking at a whopping $27 billion shortfall.
The state of Illinois is even worse off with more than $100 billion in unfunded pension liabilities. Where is the money going to come from to fix the problem?
But this month, after years of inaction, Illinois passed a bill to tackle its unfunded pension liability. The state hopes the new law will save $160bn over the next 30 years - savings that will come from cuts in retirement benefits for state workers and forcing the state to make its pension contributions. The law has won plaudits as a first step towards fiscal reform. But it comes only after repeated downgrades that have left Illinois with the lowest credit rating of any US state.
Now it is up to Mr Emanuel, the hard-nosed former Obama administration official, to do the same for Chicago. Any proposal to solve the city's pension problem is bound to look much like the state deal - cutting benefits for public workers and raising contributions.
(Excerpt) Read more at americanthinker.com ...
IL residents voted these people in, now they can live with the consequences.
Democrats and unions wrecking yet another city.
When will people wake up and realize these two entities are not their friends?
When will people wake up and realize these two entities are not their friends?
I hate to say it, but NEVER! The media & democRATs & union thugs, along with their non-stop hate filled demagoguery, will always proclaim that they just need a "little" bit more (ie billions more) to fix all the problems that they will blame on conservatives.
I believe it will take a complete collapse of our entire monetary system, & hauling out the politicians feet first, in order to reset the entire system back to zero and start over!
I really hope Chicago learns from the Detroit experience and be forced to do major pension reforms to avoid Detroit's fate.
RE: I really hope Chicago learns from the Detroit experience and be forced to do major pension reforms to avoid Detroit’s fate.
Well, the first thing they’ll have to do is kick out the Democrats in control of the entire city. Fat chance of that.
I repeat what I wrote here several months ago....
When former WH CoS Bill Daley resigned..everyone assumed it was to run for governor. The Daleys are the ruling family in Illinois. Everyone wants Quinn gone...and Daley would forced Quinn to retire, and won the general election easily. Being governor is his birthright, if you will. So then, why did he unexpectedly walk away? Easy..he knows the whole thing is about to collapse...so why take the job as the Captain of the Titanic. Especially since the many special interest groups that make of the Democrat party won't give an inch, cede any reforms. Look at the Chicago Teachers Union, the strike, and Emanuel..
Illinois is likely far worse off than anyone knows..and the buffalo chips are about to hit the fan. Daley knows it, and he wanted NO part of it..
Oh dear; they’ve run out of other people’s money.
At the very end of the article was the traditional solution to every economic problem ever faced by the Republic - have Washington bail them out.
The Federal Government is drowning in a deeper sea of red ink than anyone else. Plus, they are running pumps adding to the depth of water they are drowning in 24/7/365.
The Federal fiscal debt is bad enough, like Chicago, but the under/un-funded liabilities is a hundred times worse.
So, how can a broke bum (the Federal Government) bailout an other broke bum (Chicago)?
Just remember folks, every dollar the Federal Government wants to spend starts its life in your wallet - there ain’t no stash of money in any Federal vault, anywhere and hasn’t been since Nixon took us off the gold standard.
BTW, the argument for and against unlimited printing of paper money first started in the 1880s and there is no change between the arguments/forecasts made then and today.
RE: have Washington bail them out.
AKA have responsible cities and municipalities bail out the irresponsible ones.
Is this why we have a Union?
DIEversity ain’t cheap folks.
That is a definite possibility...very astute observation..
Once upon a time, there was a grasshopper and an ant. It was the summer. The ant was busy working and putting food away for the winter. The grasshopper sang and played his fiddle and thought not about the coming winter. Winter finally arrived. The grasshopper burned his fiddle to stay warm, but that was only good for a little while, and he still had no food. But, the grasshopper had voted Democrat. He went to his Democrat politician and said, “I have no food while the ant has plenty! Take some food from him and give it to me or I won’t vote for you and then you won’t be able to steal from the public treasury.”
So the Democrat politician told the ant to give him some of his food to give to the grasshopper or he’d have the ant thrown in prison so the ant gave up some of his food.
The grasshopper had lots and lots of children and they all voted and played the fiddle and got hungry in the winter. The ant had to give up more of his food every year.
Finally, one winter, the ant had no food left for himself, and he starved to death. The grasshoppers looked for more ants.
MORAL OF THE STORY: The ant should have teamed up with the other ants and ate the grasshoppers.
“I hate to say it, but NEVER!”
Absolutely correct! All you have to do is look at the private businesses that the unions have rode into extinction. Take Steelmaking as an example. And we have not seen the end to their influence in the big three automakers. If they are smart, they will abandon their UAW plants for RTW states or leave the country entirely. We have two Chevy Avalanche’s. Both were built in Monterrey, Mexico. Best vehicles we have ever owned in terms of reliability. To the UAW, Adios MFer’s!
Top Illinois public school administrators split nearly $1 billion in pensions
The First 10 City Pensions That Will Run Out Of Money
The Business Insider ^ | 10/27/10 | Gus Lubin
#2 Chicago...Unfunded liability: $44.8 billion Unfunded liability per household: $41,966 Solvency horizon: 2019
#1 Philadelphia..Unfunded liability: $9 billion Unfunded liability per household: $16,690 Solvency horizon: 2015
looks like Chicago and Philly are in a race to the bottom.
It’s the fault of these “CONSERVATIVES” I tell ya. Instead of turning their hard earned money to the government, they’d rather leave the state or stash it where the liberals can’t find it. What will these liberal, socialist and communist politicians to do? I know, do what Nazi Germany did in the 30’s. Make a law that no one can leave the state without turning over every cent they earned in the state. That means, the only thing they can take with them are the clothes on their backs. There, that should scare all of these liberals into staying.
Yep. Now they are beginning to realize that “ELECTIONS HAVE CONSEQUENCES”. But, I’m afraid it’s too late for that. The city and the state will have to go through, what has happened in Detroit, before they open their eyes real wide. But, I assure you, all these liberal, socialists and communist politicians will be long gone, to pitch their snake oil to another unsuspecting, stupid VOTERS. Where are all these liberal, socialists and communists politicians that were prevalent in Detroit, many years ago? Yep, they have gone away. The same thing will happen in Chicago and Illinois.
Didn’t Scott Walker prevent this from happening in Wisconsin a couple of years ago? Didn’t the WI lawmakers flee to Chicago for a few weeks during the showdown?