Posted on 06/27/2016 1:35:32 PM PDT by Zakeet
It is well known that Chicago's pension liabilities have completely decimated the city's finances and currently stand at close to $20 billion. Faced with a significant challenge of meeting funding obligations as a result of a 2010 state law, Mayor Rahm Emanuel recently won a slight reprieve in the amount of money the city would have to contribute to fund the liabilities over the next few years, as recently Illinois lawmakers overrode Governor Bruce Rauner's veto and will now change the legislation in order to allow the city to defer payments to fund pensions.
Under the prior legislation, Chicago was required to have its public safety workers pensions 90% funded by 2040, and called for an $834 million payment to be made in 2016 alone. The revised legislation reduces that amount to $619 million, and allows for smaller increases through 2020 while pushing the timeline for 90% funding out to 2055 - at which time the timeline will be extended once again of course, as it will never be possible for the City to come up with such funds.
Perhaps riding high on that small victory, Rahm Emanuel is now quietly asking the city to change investment rules that would allow Chicago to purchase debt from sister agencies such as the Chicago Public School system - said differently, Rahm Emanuel wants to bail out the Chicago Public School system.
Although as expected, nobody wants to refer to the maneuver as a bailout, only as an "investment."
From the Chicago Tribune
(Excerpt) Read more at zerohedge.com ...
Chicago’s pension obligations grew about 20% more impossible to fund based upon the giant move in the bond market today. More impossible? Yup!
Ummmm.......NO
Wait a minute!!! Are you suggesting that we’ve been had? Government lied to us and spent more in commitments than they actually accounted for or reported? You jest! This is the most transparent government in the history of the United States!
It isn’t the public school system that need bailing out. It’s the Teachers Union! Fug ‘em! They’re billions of dollars in the hole!
Illinois Lotto can not pay anyone any winnings if they win the Illinois Lotto. All the pension funds for Chicago not just the teachers is being taken from the Illinois Lotto Funds
Don’t worry. Omuslim will send them a few trillion.
Have Teacher’s union pension fund buy the debt instead of City hall
I actually did invoke Laz in a haiku once but the experience left me, I dunno, feeling icky and in need of a bath, or something, as if I had somehow been violated.
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