Pension chaos hits Chicago, Illinois budgets

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

[FreedomNotSafety]

So you believe promises made by politicians are somehow sacred or sacrosanct? Once a promise is made by a politician it must be kept not matter how ridiculous?

Pensions can be funded by actual hard money deposits into trust accounts that are invested in hard assets (not government bonds). Or they can be funded by promises to pay future promises which means the politicians promise to pay future benefits by collecting from future taxpayers. Unions comprised of the teachers you are so sympathetic towards opted for promises and not hard money. They did so to maximize current salary and benefits and betting they could force taxpayers to cough up even more later on. No sympathy.

[Chode]

100%

[expat2]

That's what happened to Detroit -- the effect snowballs with the vicious circle of tax-hikes, lost taxpayers, and lower receipts.

I've been there, just done it. The PPRMD is already wondering why their tax receipts are down, despite the new rain tax they imposed.

[expat2]

That’s why you have to move out at an early enough stage in the death spiral.

[PapaBear3625]

One solution is to eliminate pensions for all new hires. New hires get a 401K, like the rest of us.

One question is, at what point will the non-public-employees of Illinois turn on the public employee unions, and support politicians who will pass right-to-work laws like Wisconsin and Michigan did?

[Secret Agent Man]

true but it’s easier for renters to escape that than property owners. they can just move out. property owners still have to pay taxes, full building or empty building.

[Myrddin]

Bleed to death slowly or leave while you have the means. The smart approach is to never settle in a liberal cesspool from the start. I moved out of CA in Dec 2000. I rent a room in San Diego. My wife and kids are comfortable in Idaho. I’m uncomfortable, but able to walk away immediately if necessary.

[john drake]

Correct. Worse, the rents stagnate or go down as renters leave, unit supply increases and the landlords see less revenue and increasing costs, at least short term.

[RoadGumby]

Thats a laugher statement.

Grow up?

FRiend, an attitude like that is a great big part of the problem. Money, money, money. Get the most you can, regardless.

I HAVE turned down a good job. Why? Because it was union. And unions are evil.

[DuncanWaring]

I don’t blame teachers who worked and were promised brnefits.

What about teachers who went "on strike" or threatened to strike unless they were paid copiously?

There's a resort area in Wisconsin, "Door County" (the penninsula that isolates Green Bay from Lake Michigan).

A significant portion of the property owners there are Chicago Public School teachers.

[Velveeta]

I hear you. I’m on countdown to finally leave Chicago. If all goes according to plan, next summer I will make the move to Florida.

[Myrddin]

Good luck on the move. I like the late sunsets that come with being in the northern latitudes. Idaho was suitable. It took almost a year of planning and prep to make the exit from San Diego to Pocatello.