Illinois payments into state pension systems on hold

[Knowing]

http://www.chicagobusiness.com/arti...ll-delay-pension-payment-citing-cash-shortage

Munger said her office will postpone a $560 million retirement-fund payment next month, and may make the December contribution late.“This decision is choosing the least of a number of bad options,” Munger told reporters in Chicago on Wednesday. “For all intents and purposes, we are out of money now.”
Munger said the pension systems will be paid in full by the end of the fiscal year in June. The state still is making bond payments, and retirees are receiving checks, she said.
“We prioritize the bond payments above everything else,” Munger told reporters.

http://www.chicagotribune.com/news/...pension-payment-delay-met-20151014-story.html

The state has until the middle of 2016 to catch up on the payments, and the comptroller's office expects to have more cash available during the peak tax collection times around the holidays and in the spring.
...
The state has a $7 billion bill backlog, Munger said, in part because it is spending billions of dollars beyond what it is set to collect while the impasse continues.

http://www.cnbc.com/2015/07/16/sticker-shock-sales-taxes-in-chicago.html

astounding 10.25% sales tax about to go into effect in Chicago and the rest of Cook County

http://www.chicagotribune.com/news/local/politics/ct-cook-county-budget-met-1015-20151014-story.html

Months after winning approval for a controversial penny-on-the-dollar sales tax increase, Cook County Board President Toni Preckwinkle now wants to extend the county's 3 percent amusement tax to cable TV and recreational activities such as bowling, golf and many for-profit sports leagues.
The additional $20 million — most of it coming from cable taxes — would help close a projected $199 million hole in the operating budget, Preckwinkle said.

This will probably all work out okay. I'm sure nowhere else in the United States has irrational expectations of returns on their pension plans. Our great economy will unwind all this nastiness in a safe direction.

 

[Greenman]

That's a clusterfuck of biblical proportions. They've dug the deepest hole in the country and they're trying to raise money for more shovels.

 

[chucky2]

Just need some more illegals doing jobs we're paying able bodied people to not do, a little more Links abuse (Pepsi and Cheetos!), graft, corruption, etc etc.

Ahhh IL, a Dem paradise of their own making. Worst thing the Reps ever did here was to get Rauner elected. Now the Dems and the sheeple will be blaming him for the state getting the spins while going down the drain. Fucking idiots...

 

[boomerang]

Why not just tax the rich, expand social programs and start giving more free stuff to everyone? Seems like a simple solution.

FeelTheBern

 

[Mursilis]

You mean a representative democracy has overvalued the short-term? That's so shocking!!

 

[s0me0nesmind1]

I believe the (sales) tax rate in Chicago is already the highest in the nation @ 10.25%.... Just keep taxing guiz! We will get there some-day! In addition, they also have incredibly high property taxes as well - usually for most states/cities it's one or the other, not both.

Chicago is living proof why Democrats fail in life. They want all the idealistic things in life (More money, more projects, more budget), but without the logic of planning or budgeting appropriately. Don't worry guiz, just Chawwwge it to yo credit card!

 

[fskimospy]

I believe the (sales) tax rate in Chicago is already the highest in the nation @ 10.50%.... Just keep taxing guiz! We will get there some-day!

Chicago is living proof why Democrats fail in life. They want all the idealistic things in life (More money, more projects, more budget), but without the logic of planning or budgeting appropriately. Don't worry guiz, just Chawwwge it to yo credit card!

You realize raising taxes to pay for things is the exact opposite of charging it to a credit card, right?

I would strongly suggest you look at the budget proposals of liberals and conservatives in recent years and see which ones are better grounded in sound budgeting principles. You might be surprised at who relies on magical thinking to close budget gaps more often.

 

[PokerGuy]

Is this at all surprising? This is what happens when you start running out of other people's money to hand out. Unsustainable benefits/pensions, crazy spending, graft, corruption, too much union influence, sky high taxes etc etc. Fiscal sanity is nowhere to be found there.

 

[waggy]

they need to do something drastic. Like sell the parking meter rights for pennies on the dollar! oh..wait that was tried..and backfired.

uhm what else?

Chicago is fucked right now. unfortunately they are going to fuck the rest of the state to get out of it.

 

[unokitty]

You mean a representative democracy has overvalued the short-term? That's so shocking!!

“There are now 12,154 Illinois government pensions over $100,000 and 85,893 over $50,000,” TUA President Jim Tobin said. “Those are staggering numbers considering the taxpayers who fund these pensions get an average Social Security pension of about $15,000 a year.”

Making tax payers that are going to retire on $15K dollars a year in Social Security pay more so that government workers can retire with fat pensions is representative democracy?

Poor people should feel honored to pay more taxes?

Uno:whiste:

 

[bozack]

You realize raising taxes to pay for things is the exact opposite of charging it to a credit card, right?

I would strongly suggest you look at the budget proposals of liberals and conservatives in recent years and see which ones are better grounded in sound budgeting principles. You might be surprised at who relies on magical thinking to close budget gaps more often.

you mean like the budget proposals submitted in Chicago right? seems like some sound principles that were better grounded were leveraged in setting up their stellar situation no?

 

[fskimospy]

Making tax payers that are going to retire on $15K dollars a year in Social Security pay more so that government workers can retire with fat pensions is representative democracy?

Poor people should feel honored to pay more taxes?

Uno:whiste:

You realize how dumb relating pensions to social security is, right? Do you relate 401(k) disbursements to what people get in social security?

 

[glenn1]

You realize raising taxes to pay for things is the exact opposite of charging it to a credit card, right?

I look forward to a lot more tax raising in Chicago to pay for their choices. I'm sure once the rates get high enough the city will be even more of a progressive utopia, a true shining example of how to best organize a society.

 

[fskimospy]

you mean like the budget proposals submitted in Chicago right? seems like some sound principles that were better grounded were leveraged in setting up their stellar situation no?

I mean in general. All politicians can be prone to magical thinking when it suits them but only one party is currently wedded to it as part of their ideology. Look at literally any tax plan from a republican candidate for president. All magical thinking. Look at Paul Ryan's touted budget. Magical thinking. Look at Kansas and the result of their magical thinking there. Look at the ACA vs Medicare Part D.

Now who do you think has more realistic and fiscally responsible budgets? Hint: conservatives don't actually care about budget deficits and they never have.

 

[highland145]

Best to avoid the stupid tax...er...lottery, ATM, too.
http://www.foxnews.com/politics/201...-lottery-halts-payouts-over-600/?intcmp=hpbt3

 

[michal1980]

You realize raising taxes to pay for things is the exact opposite of charging it to a credit card, right?

I would strongly suggest you look at the budget proposals of liberals and conservatives in recent years and see which ones are better grounded in sound budgeting principles. You might be surprised at who relies on magical thinking to close budget gaps more often.

The dems in chicago rose taxes to pay for things? Then how come the pension is in such a big hole?

LOL.

They didnt pay for jack.

 

[Exterous]

All magical thinking

If you want to talk about magical thinking there is plenty going on on the Union side of things. Chicago is at a point where something needs to be done but the unions are completely opposed to any sort or reduction or diminishing of pension benefits. They feel that they don't need to bargain as it is enshrined in the state constitution and attempts at reform have been (rightly from a legal standpoint) overturned when the unions sued.

“There is no option. The Illinois Supreme Court said these are vested benefits. They must make the payment. Under the Illinois Constitution they must honor the law,” said CTU spokeswoman Stephanie Gadlin.

http://www.chicagotribune.com/news/local/politics/ct-chicago-schools-pension-payment-met-0702-20150701-story.html

To me it strikes me as either head in the sand that something magical will save the fund or people hoping to get theirs and be done before the whole thing slams into a wall.

Encouraged by a recent Supreme Court ruling that broadly protects pension benefits, the police and fire unions have refused to negotiate higher worker contributions to shore up their pension funds.

http://www.chicagotribune.com/news/opinion/editorials/ct-edit-pension-0607-20150605-story.html

The CTU is refusing to give on the paltry 2% teacher contribution. 2%! Thats absurdly small. Its 7% for Michigan for a slightly smaller multiplier (Or 3.6% with a further reduced multiplier). Seriously - how hard is it to give on 1 or 2% to try and alleviate the obvious and gigantic issues?

 

[fskimospy]

I look forward to a lot more tax raising in Chicago to pay for their choices. I'm sure once the rates get high enough the city will be even more of a progressive utopia, a true shining example of how to best organize a society.

Chicago is a net contributor to Illinois' tax base and economy. Maybe they should pull a glenn1 and just take back all their money they contribute to the rest of the state, your area included most likely. Seems like the kind of plan you would support, haha.

 

[fskimospy]

If you want to talk about magical thinking there is plenty going on on the Union side of things. Chicago is at a point where something needs to be done but the unions are completely opposed to any sort or reduction or diminishing of pension benefits. They feel that they don't need to bargain as it is enshrined in the state constitution and attempts at reform have been (rightly from a legal standpoint) overturned when the unions sued.

http://www.chicagotribune.com/news/local/politics/ct-chicago-schools-pension-payment-met-0702-20150701-story.html

To me it strikes me as either head in the sand that something magical will save the fund or people hoping to get theirs and be done before the whole thing slams into a wall.

http://www.chicagotribune.com/news/opinion/editorials/ct-edit-pension-0607-20150605-story.html

The CTU is refusing to give on the paltry 2% teacher contribution. 2%! Thats absurdly small. Its 7% for Michigan for a slightly smaller multiplier (Or 3.6% with a further reduced multiplier). Seriously - how hard is it to give on 1 or 2% to try and alleviate the obvious and gigantic issues?

I totally agree on this, and I think those unions are being incredibly myopic. You sacrifice a bit of what you thought you were getting in order to secure the solvency of the whole system going forward. They are fools for not doing it.

 

[glenn1]

Chicago is a net contributor to Illinois' tax base and economy. Maybe they should pull a glenn1 and just take back all their money they contribute to the rest of the state, your area included most likely. Seems like the kind of plan you would support, haha.

Maybe you should, Chicago has the votes to do so. Either way it's dishonest to complain about something you could change but continue to vote for and enthusiastically support.

 

[fskimospy]

Maybe you should, Chicago has the votes to do so. Either way it's dishonest to complain about something you could change but continue to vote to continue and enthusiastically support.

Maybe I should? I don't live in Chicago.

Can you show me how Chicago has the votes to do this? Please be as specific as possible.

 

[glenn1]

Maybe I should? I don't live in Chicago.

Can you show me how Chicago has the votes to do this? Please be as specific as possible.

Chicago metropolitan statistical area has 9.72MM residents, and the entire state population is 12.88MM. They have the numbers to dominate the state legislature, and could even secede from the state right now if they wanted to. I'm sure the rest of the state would be happy for Chicago to take their corruption and pension plan thieves and go away. Once that happens you can happily raise taxes as much as you want to fund the pension system of your dreams.

 

[waggy]

Problem is the Union has a strong legal base. they can be major dicks. This is 100% on the city not taking care of this years ago. they continued to kick the can down the road and with the idea that its someone else's problem. well it's time time to pay thepiper.

Chicago just does not have the money to pay it.

Both the union and chicago want the state to pay it. Last idea floated (i think by the union) was to make each person in IL accountable for it. that's a additional $18k for each person in IL to cover it.

Another idea was to get the state to pay 1 billion for a casino where all the revenue was directly going to the pension fund (ahahahahhaha sure it will.right all of it..uh huh).

The problem is that IL really can't cut much topay for it. they have cut back education (many college grants for poor are gone), cuts for disabled, cuts for elderly help etc. Every year i hear of more and more cuts.

it's going to fall on the rest of the state to pay for this. as it is tax in IL is already high. not sure how much more people can take.

HOw would other people feel about paying a $18k bill you have nothing to do with?

 

[waggy]

Chicago metropolitan statistical area has 9.72MM residents, and the entire state population is 12.88MM. They have the numbers to dominate the state legislature, and could even secede from the state right now if they wanted to. I'm sure the rest of the state would be happy for Chicago to take their corruption and pension plan thieves and go away. Once that happens you can happily raise taxes as much as you want to fund the pension system of your dreams.

most would.

Right now taxes in northern IL are insane. I think the rest of IL would be far better off without the mess that is chicago. the last 20 years it has been a blight. with this recent pension shithole its going to get worse.

 

[fskimospy]

Chicago metropolitan statistical area has 9.72MM residents, and the entire state population is 12.88MM. They have the numbers to dominate the state legislature, and could even secede from the state right now if they wanted to. I'm sure the rest of the state would be happy for Chicago to take their corruption and pension plan thieves and go away. Once that happens you can happily raise taxes as much as you want to fund the pension system of your dreams.

Why are you using the metropolitan statistical area? That makes no sense, as the metropolitan statistical area is not subject to the same tax and governance. Duh.

Just show me how Chicago has a majority of state house and state senate seats and you're good to go! For secession I imagine you'll need some sort of supermajority so please account for that too.

Why do I have to tell you how your own state works? lol.