Pension chaos hits Chicago, Illinois budgets

Crain's Chicago Business ^ | July 04, 2014 | GregHinz.

[george76]

yesterday's decision in a key Illinois Supreme Court case has set off a first-class explosion in state and local government, potentially punching tens of billions of dollars in holes in their collective budgets.

Some elements of the court's decision are drawing intense debate. But if the overnight consensus is anywhere near correct, everyone from City Hall and the Capitol to your local village and school board will have little option now but to dig deep, cut services and raise taxes a lot — and labor unions little incentive to compromise.

"The law in Illinois is now crystal clear: Politicians cannot break the promises made to Chicago teachers and other city employees," crowed the Chicago Teachers Union in a statement. "Recently passed laws to cut promised retirement benefits are clearly unconstitutional."

[TigerClaws]

Declare bankruptcy. Pennies on the dollar.

Seems to be working for Detroit.

Just not sure how well it’ll work out for the U.S. Government...

[Fungi]

Love it. Let the “king” with half a finger squirm as tries to scale back union influence. Watch as he tries everything except the right thing—make the union thugs pay for their own pensions.

[Chode]

guess they gotta cut the EBT Nation then...

[Born to Conserve]

There is another option: “walk away”.

If taxes in you municipality are scheduled to become unbearable, then schedule yourself to move.

[AllAmericanGirl44]

On it, getting things lined up right now.
So damn done with the pukes in this county.

[RightGeek]

Last one out of Illinois, please turn off the lights.

[Williams]

I don’t blame teachers who worked and were promised brnefits. I blame politicians who have overspent on this and everything else. They are like 3 year olds in a candy store with no concept of how much money they have. Or rather, we have.

[PGR88]

Argentina, here we come

[Lurker]

This is the beginning of the end.

[Chode]

Beautiful Friend, the End....

[willywill]

“cannot write (the Illinois Constitution) to include restrictions and limitations that the drafters did not express and the citizens of Illinois did not approve,”

oh, we’re following the constitution now.

[GeronL]

They want to pretend they didn’t know this was coming. They did.

[Secret Agent Man]

unless you rent, you’ll be stuck with property taxes.

[GeronL]

Government officials gave unions whatever they wanted, it wasn’t their money after all. The whole thing should be considered illegitimate from the get-go

[Kozy]

Watch property values tank. It's called PIT. Principle, interest and taxes. PIT should be below 40% of owner's monthly income. I might think my home is worth $500,000 but the buyers can only pay $400,000; there goes $100,000 of equity to the unions.

I am waiting for the collapse here in California. Already moving my business to Nevada. Screw them all

[Born to Conserve]

Huh?

[Secret Agent Man]

if you on property in a massively worsening tax hell, you may not be able to get a buyer and you will be stuck with huge property taxes, whether you move or not.

[Myrddin]

If you have little equity, stop paying the taxes and mortgage. Let it default and repo. The bank can have the bad property.

[ken5050]

Did you see this little gem of insane reasoning in the article:

"Some still see hope in a negotiated approach in which labor groups, for instance, agree to pay more for their pensions in exchange for pay hikes. That's the "consideration" approach pushed by Mr. Cullerton.

OK, boys and girls....what's wrong with that??