Illinois Seeks a Bailout From Congress for Pensions and Cities

The New York Times ^ | 17 April 2020 | Mary Williams Walsh

[Eleutheria5]

“Fire yourselves”?

[faithhopecharity]

yes, California’s politicians have been trying for many years to drain its workers’ retirement funds. There are three basic legal principles that workers can try using to seek protection of their pension funds: any specific state constitutional pension provision, a contracts law approach (based on the constitutional protection for contracts rights), and a property rights (vesting argument) approach. Ironically, Illinois has one of the strongest state constitutional pension provisions — but that’s not stopped the corruptoid Illinois politicians from messing around. (Well, our constitutional Bill of Rights has failed to protect our liberties, too..... paper or parchment ...doth not maketh much of a defense against a hungry or greedy political corruptoid.)

[The Antiyuppie]

“Illinois has a constitutional protection for public pensions. This structural defect must be removed before ANY pension relief aid.”

“Pretty sure Illinois is NOT the only state with such rules.”

The problem is, the courts in Illinois have interpreted that to mean that _upon hire_. So, day one of your employment, whatever setup was guaranteed must be guaranteed the day you retire. I’ve always wondered why that seemed to only apply to state employees. SO, Illinois can’t touch the pensions of retirees (that seems fair), but also they can’t touch that of anyone presently working for the state, either.

Have these people even heard that virtually every Fortune 1000 company had gone from a guaranteed amount pension to a investment contribution 401k in the last 20 years??? I will get a pension, but there were no contributions to it in 15+ years (instead, they contributed (fairly generously) to a 401k). If I didn’t like it - I was free to leave.

[abishai]

WOW! I pay half that for a bigger home in Northern Wisconsin. My family is from Marion. My father was the last of a long line of Illinois coal miners. My mother from a long line of central Illinois farmers.

I would consider moving back to Illinois to enjoy the warmer weather, but not while the current out of control tax and spend regime is in charge.

[Bobalu]

The guy that held the over 100k note on the place decided it was too much for him to continue paying the house payment and the taxes and just defaulted.

I figure that his unfortunate loss was my gain since I am quite a bit ahead having spent just 50k cash for the place and less than 10k for new appliances and flooring...it is a fantastic neighborhood, professional folk mostly and the place borders a large park w golfing and tennis courts. It’s just a trip out the back gate to the park.

It still will hurt to pay the taxes but in a way they have already been payed for many years...just not by us but by the mortgage holder and the former owner.

Our farm in MO is up for sale, it has about the same tax burden but it’s 2 wells, 38 acres, new large barn, horse stalls, large greenhouse and a 4000 sq ft home...the tax here would be close to 20k/yr

It cost us about 300/mo just to have the 3 acre yard mowed...lol so actually since I can mow this postage stamp sized yard in IL that alone makes up a bunch of taxes.

And at least for a while (I hope) there is no state income tax for those over 65 in IL...so we can pull money from the market account wo state tax.

I decided on this IL home after doing a total cost of ownership calculation compared to staying in MO...this place came out way ahead and we can take the proceeds of the sale of the farm and buy bullion coins :-)

[MacMattico]

My husband’s NYS pension is solvent, actually in good shape and independent. Cuomo has tried to rob it before, without success. He will try again. So while he bankrupts my state and demands more in both federal and state tax dollars, he also will attempt to raid the pension fund. He’s horrible and I hate that people think he is a hero. Blue states were bankrupting themselves long before Corona.

[PBRCat]

The letter from the brand new Illinois State Senate President is premised upon a major lie. The pension systems in the state were not damaged by the COVID-19 pandemic, but by the corruption and incompetence of the Illinois legislature controlled by the Democrats for the past two decades.

[Theoria]

Larger cities will lose even more after this. Which means more of a migration bomb from people fleeing blue areas and heading to cheaper red ones. This is going on now in Texas and the rest of the South. Red areas will fall in time because they are successful.

[Kenny500c]

The payouts will never end.

So right, every state and local government will expect a bailout, every small (and large) business will want one, every working person will expect one, all from a Federal Government that is at least $21 trillion in the hole and that is before the virus hit.

[aces]

amen, ts time for the gangstamint to live as responsible citizens, and the citizenry demand it....sad half the country is against said responsibility..Babylon is falling

[aces]

Detroit suffered go on burn chi town you lit the fire

[AbolishCSEU]

https://nypost.com/2019/10/03/the-making-of-cuomos-medicaid-mess-was-far-worse-than-reckless/?utm_source=url_sitebuttons&utm_medium=site%20buttons&utm_campaign=site%20buttons

[reg45]

Not a penny. I am a current Illinois resident, I was born here. Not a penny.

Let the state go bankrupt. Then let it revert to territorial status. The people of Illinois can then reconstitute the state. Perhaps the do-over will be an improvement.