Posted on 07/26/2015 8:40:19 AM PDT by Second Amendment First
More bad news for Chicago (and Illinois) taxpayers arrived Friday morning in a 35-page, double-sided packet. On one of the last pages: "The entire Act is void."
Cook County Circuit Court Judge Rita Novak tossed out Chicago's pension reform law. City Hall had negotiated the pension changes for municipal and labor employees with many of the city's unions on board. But Novak, using the Illinois Supreme Court's May pension opinion as her sword, ruled that the city's plan violates the Illinois Constitution: A public worker's pension is a contract that cannot be "diminished or impaired." lRelated Revenge of the pension loopholes
Yes, it's a Chicago-centric decision, but the implications menace governments statewide. Many of them promised too many retirement dollars to their employees. Now those governments are learning from judges that they'll have to impose draconian changes — higher taxes, fewer services, much more outsourcing, concentration on core responsibilities, or anything else they can do to slash costs. All because too many politicians gave away too much future tax revenue to too many workers — and then didn't properly fund their pension systems. Never forget that all of that foolish behavior was intentional.
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So, elected officials, show us the ugly. Show taxpayers what government in this state is going to look like. Packing 50 kids into each classroom? Outsourcing entire city departments? Demanding the necessary state permission to file for bankruptcy? Taxing residents to death so more move away? What?
Because it's clear there's nowhere near enough public money to meet all of these obligations.
Nor will there be enough money in countless tomorrows. State and local elected officials, many still in power, gave too much of it away.
(Excerpt) Read more at chicagotribune.com ...
Illinois has written into their State Constitution that public pensions cannot be reduced or impaired. This was a conscious decision by the writers of the 1970 Constitution and has been very well known by lawmakers of both parties.
Illinois will go bankrupt very soon as their pension program is way, way underfunded.
I agree. Pensions are a contractual obligation. I hope Illinois raises taxes enough to fully fund these pensions. Maybe the Illinois socialists will learn when Chicago turns into Detroit. It’s a long shot but what else can be done?
Sue the Democrat Party.
They caused this and they have LOADS of money.
Illinois, welcome to Greece.
Sounds like they need to build more prisons to house all the politicians.
How about Warren Buffet’s solution: Any politician who votes for a budget that results in a 3% or greater deficit cannot run for reelection. I think this would be great at the State and Federal level.
I would, however, make it even more severe. I would add that, if a fiscal year ends with a deficit of more than 3% of the budgeted spending, those politicians who passed the budget cannot sit for reelection. That does away with the excuse that they didn’t “foresee” the deficit, they just made the wrong budget assumptions. This makes them responsible for accurate planning and projections, too.
Nor will there be enough money in countless tomorrows. State and local elected officials, many still in power, gave too much of it away.
The USA has two choices. Continue to print unbacked, Federal Reserve money, with fake interest rates and massive government debt - all to support the massive progressive state. Financial repression will soon need to kick into overdrive to pay it off, combined with much larger doses of inflation
Or, let common sense and free-markets eventually rule, where massive government debt and impossible-to-pay pensions and entitlements (including social security) go bankrupt.
The USA will choose the former, which will then require some kind of dictatorship to enforce it all.
I agree. Pensions are a contractual obligation
A contract based on Fraud is not a Contract and is wholly void. It is a mathematical Impossibility to honor these said contracts, by definition they are FRAUDULENT!!
Get a majorityto rewrite and pass.
Suddenly, a Constitution means something?
But I think its high time the people who voted these imbeciles into office suffer too.
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Why should I suffer too? I’ve never voted for a rat in my entire life.
Not that I suffer a lot, Illinois doesn’t tax my S.S. income, my wife’s S.S. income or our private pensions but there are decent conservative citizens here who will pay the price.
IL is getting desperate for money. They were considering taxing out of state people who work in IL so that they would be pay taxes in both states. When they figured out that neighboring states might decide to do the same to IL workers, that put the kibosh on that. For now.
These large benefits didn’t just happen. I think there are money trails showing government unions paid lots to grease wheels to grow their pay and power.
Would also like to see if the judge or his family are associated with other pension benefitting government jobs or payments.
Illinois should secede from Chicago and C(r)ook County.
They can redirect the union dues of all public employees to the pension funds until they are fully funded.
This might get them through another election cycle or two, long enough for the current leadership to line their own pockets and retire elsewhere. But it's hard to see where Illinois goes after that.
Or the state could declare bankruptcy. The tricky part for the Illinois political establishment is how to ensure that all the bankruptcy writeoffs and writedowns are allocated to political enemies, not friends.
Bonds are as well, even more so. Eventually this will result in a default.
How bout harvesting the organs of all the politicians in prison there.
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