Showing posts with label pensions. Show all posts
Showing posts with label pensions. Show all posts

Monday, July 1, 2019

Productive? More like, “Drop dead!”

Gov. J.B. Pritzker gave Mayor Lori Lightfoot the time of day, as the two of them had a one-on-one meeting Saturday to discuss various issues – including whether or not state government would be capable of offering help to city government in meeting pension obligations.
LIGHTFOOT: Wants state aid on pensions

Oddly enough, both officials issued canned statements where they both said the meeting was “productive” without offering much of anything in the way of details.

WHICH I SUSPECT really means the governor told Lightfoot something the equivalent of “drop dead,” and waited until after she left the room before bursting out in hysterics.

With Lightfoot muttering under her breath at the lack of consideration she saw the governor offering up aid to the state’s largest city.

For what it’s worth, the city currently has pension funds that are about $28 billion underfunded. Which had various reports indicating that the mayor saw the solution as having the state combine the city’s pension funds into the funds that cover other municipal governments across Illinois.

In short, the state would have taken on the city’s problems – with the city then being allowed to use its sources of income to pay for other issues and problems it would rather resolve instead.

IT DOESN’T SEEM to be happening, although both officials feel the need for showing a sense of decorum. Largely because both of the government officials carry the “D” label following their names.
PRITZKER: How quickly did gov. say 'no'

If this were the “good ol’ days” of Democrat Rahm Emanuel and Republican Bruce Rauner, the two of them would be dreaming up choice insults to toss in each other’s direction. And you just know Rahm’s insults likely would have included a borderline vulgarity or two.

Because it really would be fantastical for anyone to think that Illinois state government, which has financial dilemmas of its own, would have any willingness to get itself into resolving a city government problem.
RAUNER: Would he have offered any aid?

If anything, I could envision that residents of the 96 counties outside of metropolitan Chicago (who at most account for about one-third of the state’s population) would be prepared to have a hissy-fit if Pritzker offered up any sort of aid on this issue.

IN FACT, I’VE heard so many tales throughout the years of the amount of aid the state has had to provide to bail Chicago interests out of assorted problems that I have no doubt any attempt to contemplate state aid to resolve a city pension problem would run into serious political opposition that I’m sure Pritzker would not want to have brought down upon himself.

Meaning it was a fantasy, at best, to believe the state would be able to offer up much help.

The pension problems the city now faces are most likely going to be ones that will dominate the Lightfoot Years, and may be what prevents her from being able to afford the kinds of things that Mayor Lori would prefer to be doing so as to build herself up a municipal legacy of significance.

One other point I should note; it seems that both Lightfoot and Pritzker managed to use an identical phrase – they “look forward to continuing to work together” on various issues.
EMANUEL: How vulgar would his vocabulary become?

AS IN BOTH of them still plan to ask the other for many, more favors in the future. They’re expecting that the “D” they have in common will result in each of them having their phone calls to each other returned.

They both have to continue to deal with each other for the next few years.

So Saturday’s meeting wasn’t of real significance. With the real story being what was said immediately after the two met.

And whether either one of these esteemed public officials said anything in private that would top Rahm Emanuel’s vocabulary at its most vulgar.

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Friday, October 16, 2015

Retiree pensions, or lottery tickets – where are Illinois’ financial priorities?

The Illinois comptroller’s office let it be known his week that the state’s finances are such a mess due to the lack of a balanced budget in place that the payments toward the pension programs for state retirees due for November are likely to be missed.

The way things are going, the payments for December also may not be made.

YET SOMEHOW I expect the factual tidbit that will most offend people relates to the Illinois Lottery – in that officials said they have to scale back even further the level to which they can actually pay out prizes to lottery game winners.

The lack of a budget in place means the Department of the Lottery doesn’t have access to the funds that would be used to pay prizes to lottery winners.

Until this week, the lottery took the stance that any prize of more than $25,000 could not be paid. Winners received official documents confirming the state owed them the money, and that they would be paid once Gov. Bruce Rauner and the General Assembly’s leaders could put aside their partisan hang-ups and approve a budget.

But now, officials are saying the state’s finances are so tight that they cannot pay out anything more than $600. Which means that just about anyone who wins anything more than a token prize from one of those chintzy scratch-off games will not get anything.

NOW I HAVE written before that I don’t terribly sympathize with the lottery winners – some of whom seem to act as though they believe they are the ultimate victims in the ongoing political dispute over state government finances.

Nobody forces anyone to play the lottery. If they have to wait a bit, it’s not the biggest loss – particularly if the delay results in them getting interest payments on top of their prizes.

They may wind up being even bigger winners than they have any right to deserve to be.

But I have read countless Internet commentary complaining about the lottery prizes. Heck, I have received my own share of statements (all anonymous, of course) telling me how misguided I am – only in more-harsh terms than that.

IF THERE IS something that ought to be done, perhaps the Illinois lottery games themselves ought to be put on hold until such a time that the partisan politics are put aside and a budget is passed.

Although I don’t know who in their right mind would want to play lottery games where it is uncertain the prizes would be paid. That really is the equivalent of money being thrown into the toilet.

Because if it weren’t for the fact that the state is being so open about its lack of access to funds (the money does exist, taxes and fees to the state are still being collected), one could say that the Illinois lottery is a criminal racket.

How else could one describe something that takes your money with the promise of a huge payoff – then refuses to follow through on it?

TO BE HONEST, even the numbers racket operators of old had more honor than that. They made their fortunes off of large numbers of nickel bets, yet had the honesty to pay off the winners from among those whose dreams the night before resulted in some combination of numbers from a dream book.

Yet they were the “criminals,” while the modern-day lottery raises money for schools and “the children” – or at least so claims the official rhetoric.

Now I go so over the top in my rhetoric because I don’t expect the state lottery to shut down. THAT would be considered the ultimate offense by too many people – who would probably then file a lawsuit demanding the right to have a lottery so they can dream of winning their fortunes without having to work for them.

A concept that bothers me just as much as how the lack of those pension payments will cause even more problems for the state in the long-term – and not just because it gives the partisans of former Gov. Pat Quinn a reason to gloat because HE never missed pension payments during his time in office.

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Saturday, July 25, 2015

Who knows what exactly is legal with regards to government being able to reform its pension funding mechanisms

There were partisan political people who clapped with glee, so to speak, when the Illinois Supreme Court struck down the measure that state government tried implementing to reform the way it covered the cost of pension programs for retired workers.

NOVAK: Created more work for Rahm
It was, after all, a measure that now-former Gov. Pat Quinn got credit for implementing. The people who were eager to dump him were ever-so-happy to be able to say that Quinn was inept and incapable of revamping the mess.

THEY CERTAINLY HATED the idea that he’d have to receive praise for fixing a long-lasting problem whose origins date back so many decades – so far back that it is nothing but wrong to place the blame on any one political person.

They all deserve the blame – regardless of what political party they belong to.

And it’s obvious our state government officials don’t have a clue what they need to do to ensure that the cost of providing the pensions for retired state workers and educators across Illinois (except in Chicago proper) doesn’t wind up consuming ALL of the income state government has.

That may actually be a plus for state officials these days; the lack of a state government budget for the fiscal year that began 25 days ago means they now have an excuse to not be concerned with the pension funding problem.

SO WHAT SHOULD we now think of the pension funding problems that exist within city government; where an attempt by city officials led by Mayor Rahm Emanuel got struck down Friday by a Cook County judge?

EMANUEL: Needs a new solution
Could it just be that any attempt to impose a scheme that limits retirement benefits to something government officials think they can afford is going to fail?

Could it be that the wise one in all this is Cook County Board President Toni Preckwinkle? The county has its own problems and shortfalls to overcome, but has done nothing because they want to see if some other government can come up with the model solution for them to follow.

It would seem that the county has a long way to go – since nobody seems to have come up with the solution.

THE STATE HAD tried passing a measure that would protect the pension benefits already accrued, but would encourage changes in benefits for future work done so that it would not come to quite the same amount of cost.

Whereas the city said it tried to negotiate some changes to get support from the future city retirees who will be counting on that money to ensure they don’t live their “golden years” in poverty.

PRECKWINKLE: Waiting for guidance
Judge Rita Novak wasn’t swayed, saying the Illinois Constitution provides for an “enforceable obligation” to pay retirement benefits.

It would be odd if the same state Supreme Court that struck down the state pension reform plan were to take it upon themselves to overrule Novak’s ruling and say that the city actually got it right.

IT HAS ME wondering what solution, if any, is going to someday be determined to be acceptable to the courts.

Because something is going to have to be done, and it is already long past due. This was an issue in need of a solution years ago – and the fact that the efforts made thus far to fix the problem have been struck down means the problem only gets worse and worse.


QUINN: Not the only failure
I understand why the labor unions that represent government employees are all concerned and willing to fight to the death, so to speak, on this issue. Part of the perk of having a government job is gaining something resembling a passing retirement plan.

If they didn’t offer that, many of those workers would have found more gainful employment elsewhere during their working lives – and we’d probably have great difficulty finding the current level of workers willing to put up with the bureaucratic nonsense that some people want to impose because it fits their own partisan ideals.

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Saturday, May 9, 2015

Back to Square One, which wasn’t a pleasant place for us to be to begin with

I was kind of hoping that the Supreme Court of Illinois would somehow figure out a way to uphold the measure approved by the General Assembly and then-Gov. Pat Quinn back in 2013 to resolve the problems the state faced in funding its pension programs.

As it was, it took the Legislature several years past what was supposed to be the breaking point for the political people to come up with the solution they enacted two years ago.

BUT THE SUPREME Court on Friday went along with the hints it had been giving out – it overturned the previous legislative action on the grounds that it violated provisions of the state constitution that protect the retirement benefits that state workers receive.

No retroactive changes of any kind; not even if you want to try to claim you don’t have the money to afford the retirement rates that had previously been arranged.

So now we can resurrect the $105 billion shortfall in funding needed to balance out the retirement funds for state workers and educators at both public schools and state colleges. As if Illinois didn’t have enough financial problems to deal with, this issue is back!

Let’s be honest; there’s no way our Legislature is about to concoct a solution to this problem by the end of this legislative session – which is barely more than three weeks off.

AND THE LONGER the issue lingers, the greater the size of the problem grows.

If anything, it is made worse by the fact that the little bit of guidance the political people received from the Supreme Court’s ruling was to swipe at the Legislature for not going along with Quinn’s desires to extend the state income tax hike that withered away at the end of 2014.

Of course, current Gov. Bruce Rauner always made it clear he wanted that allegedly temporary tax hike to go away and the General Assembly’s membership never had the political backbone to address the issue.

Which is why there is going to be a serious shortfall, particularly since so much of Rauner’s own political agenda is to cut at programs and services whose existence serves to benefit the agendas of people not sympathetic to his views.

I CAN’T SEE Rauner coming to his senses on this issue and accepting the reality that he’s going to have to put some attention on the idea of raising new revenue sources in order for the state to meet its financial and moral obligations.

Because the longer the pension system remains a mess, the more and more its demands will sap up the entirety of what revenues the state of Illinois has.

But there are also many legislators of both major political persuasions who also don’t want to have to address this issue; it’s really not fair to say that Rauner is all to blame for the way this mess will linger.

I do find it humorous the way some political people are suggesting now that perhaps the solution to this issue is to amend the Illinois Constitution – so as to take out the provisions that require retirement benefits to remain the same.

CHANGING THE STATE Constitution is something that takes many years to do – time the state simply no longer has. This is a problem that was created by the inaction of many governors throughout the decades (you can’t blame it on just one political party).

We need serious, painful solutions to this problem that are going to wind up hurting the political interests of many people.

And we definitely need to quit thinking of this issue as one of a problem caused by those ‘damned retirees’ and the benefits they earned with their labor throughout the years.

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Friday, May 8, 2015

Emanuel/Lewis could get U-G-L-Yer; could Chuy reputation be the winner?

The smartaleck in me wonders if Jesus Garcia is getting miffed that the contract talks by the Chicago Public Schools and the teacher’s union didn’t get heated up prior to Election Day.

Because with the way the two sides are showing that it will take a political miracle for them to agree on a deal, I wonder if that could have been enough of a factor get get Garcia’s mayoral aspirations the additional votes to close what was a 56-44 percent gap in the electoral turnout.

NOT THAT I think any of the people who wound up voting for Rahm Emanuel’s re-election could have been swayed into backing Garcia’s mayoral campaign. But could it have motivated more of the roughly three-fifths of registered voters who didn’t bother to vote to take some sort of action?

Could we now be dealing with “Mayor-elect Jesus Garcia” if the contract talks had become more of an issue prior to April 7?

That thought popped into my mind this week when I learned that the Chicago Teachers Union filed an unfair labor practices complaint with the Illinois Educational Labor Relations Board.

It seems the Chicago Public Schools has asked the teachers to take a pay cut, supposedly to avoid the possibility of layoffs. The union has called that pay cut proposal an insult.

THE PAY CUT is allegedly necessary to come up with the money the district needs to cover a larger share of the cost of covering pension payments for teacher retirement programs – supposedly a 7 percent cut in the amount of paychecks the teachers currently receive.

It’s coming across that the Chicago Public Schools wants help from its labor in terms of addressing the financial problems that now face District 299 (a.k.a., the city’s public schools system).

The current contract expires June 30, but I don’t think there’s anybody out there who expects the two sides to suddenly come to terms and meet that deadline.

We’re likely to see continued talks throughout the summer months, then the possibility of wondering if the schools will open on time (and stay open) for the 2015-16 academic year.

BECAUSE THE TWO sides have had several sessions dating back to November, yet there doesn’t seem to be anything in the way of progress. The Emanuel mayoral administration is likely go to into the local history books as the one that continually provokes strikes from its teachers.

Unlike the Richard M. Daley administration that managed to go for decades without labor disputes.

Now I can already hear the rants of certain types of people (the ones who think the City Council was disrespectful to Gov. Bruce Rauner by immediately passing their anti-turnaround measure after the governor urged them to support it) who are going to claim that the unions ARE the problem and that we’d all be better off if we’d realize that employers should be able to give us what they think is proper.

But this desire to advance oneself and look out for our interests IS the “American Way,” so to speak.

I CAN’T REALLY fault the teachers union officials who are following the lead of union President Karen Lewis, who this week said she believed the public schools’ negotiating tactics are “reactionary and retaliatory” for past grievances.

Even though I’m sure some people would argue they are merely examples of Rahm being Rahm. And I mean the overly-profane Emanuel; not the nice, soft, fuzzy Rahm who tried creeping up in the campaign commercials while talking about how incompetent a person Garcia is.

Well, Election Day is past. We have the officials we have. Those people who care about Garcia’s future are likely to focus on the talk that he will run for something (most likely a Congressional seat) come the 2016 election cycle.

Although I do wonder if he could wind up getting a boost in such a campaign if the teacher contract talks do wind up resulting in picket lines for a second time in four years. Sort of a “Who’s not qualified now?” type of vote for Chuy against whomever he winds up challenging!

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Saturday, July 5, 2014

A DAY IN THE LIFE (of Chicago): Ought to be much about nothing

The fact that 33rd Ward Alderman Deborah Mell is getting divorced ought to be the ultimate ho-hum attempt at a news story; something that comes across as cheap and petty even for an Independence Day holiday weekend.

 
But Mell’s recent announcement, which she made via her Twitter account, that her marriage of three years has come to an end is gaining attention. To the point where I’m wondering how many petty people are going to try to draw this out into something it’s not.

 
WHAT CAPTURES ATTENTION about this marriage was the fact that Mell’s wife was Christin Baker. The couple became engaged in 2010 (with Mell, then a state representative, making a pronouncement on the floor of the Illinois House of Representatives).

 
Then, because they couldn’t wait for Illinois to get its act together on the issue of legitimate marriage for gay couples, they went to Iowa to be married.

 
If they had held out for an Illinois wedding, it wouldn’t have occurred until earlier this year – perhaps during the past month.

 
But then, it would have been too late. For the couple seems to have irreconcilable differences. News accounts indicate Baker has taken a new job in Birmingham, Ala. They have split.

 
I’M SURE SOME people are going to rant and rage against gay marriage and claim this ought to be evidence that such unions are somehow unnatural and unlasting.

 
Which is nonsense, of course. Just look at the number of so-called straight couples who can’t make it past a couple of years of marriage. Was their time together any less legitimate? If it was, perhaps we ought to be abolishing the concept of marriage altogether.

 
Not that anybody with sense is calling for that. If anything, all this means is that partnerships and pairings are fragile and filled with potential for problems. The last thing those couples need are harassment from those with such ideological hang-ups that they need to get a hobby. Perhaps they can rush out to Hobby Lobby to find something to do from people inclined to share their hang-ups about life?

 
What else is notable about life following Independence Day on the shores of Lake Michigan?

 
COP BUDDIES STICKING TOGETHER?: The Illinois Supreme Court issued a ruling this week that upholds the ability of one-time Pullman Area Violent Crimes Commander Jon Burge to keep his pension – even though he’s the cop who led the far South Side unit that reportedly was beating confessions out of criminal suspects on a regular basis.

 
Burge, 66, and retired for more than two decades, is now in a federal correctional center in North Carolina. But for the act of perjury in a lawsuit related to his actions; not for the actions themselves.

 
The state’s high court ruled that a Cook County judge was correct to prevent the Illinois attorney general’s office from intervening in the case when a police pension board upheld Burge’s retirement payments.

 
It seems the board members who were former police officers favored Burge, saying his criminal act came after he left the police. They out-voted the non-former police officer members who would have revoked retirement benefits.

 
DON’T YOU DARE CUT RETIREE PENSIONS: It’s going to be interesting to see just how officials are capable of reforming the way public pension programs are funded.

 
For the state Supreme Court also ruled this week that retirees can’t be forced to pay for the retirement benefits previously promised.

 
State Attorney General Lisa Madigan is claiming that’s a narrow legal issue, but others see it as broader and a move in the direction of saying that there’s going to have to be some other form of reform. Either that, or the retirees literally will bankrupt Illinois government into oblivion.

 
As if Friday night fireworks didn’t give you enough of a headache.

 
BAD ATTITUDES IN BRIDGEVIEW?: The Chicago Fire professional soccer team felt compelled to issue a statement this week, telling their fans to watch their mouths.

 
The Chicago Sun-Times reported that Spanish-speaking fans have taken to using slurs for homosexuals to taunt opposing players. Before you start attacking Latinos, keep in mind that some peoples’ extent of the Spanish language are the slurs and obscenities.

 
Which bothers the team because they want people to make the trek out to their suburban Bridgeview stadium to watch games – particularly in the weeks following the World Cup.

 
Perhaps hoping that some newly-converted types will want to see live matches and will want to spend money, much money, while at Toyota Park.

 
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Monday, June 9, 2014

EXTRA: Quinn can’t win! Did city pensions unite Rauner, teachers union?

In the end, Gov. Pat Quinn did probably the only thing that was practical when, on Monday, he signed into law a deal meant to resolve Chicago city government’s pension funding problems.
QUINN: He can't win

That’s the agreement that will now allow city officials the option of increasing local property taxes to come up with the extra funds necessary.

IT WAS THE deal that Mayor Rahm Emanuel wanted approved; although the mayor wondered if the same governor that snubbed his city-based casino desires would also use the “veto” pen to put an end to this as well.

But just as many political people gave their support to a deal that was meant to resolve state pension funding problems even though they hated it, Quinn wound up giving the city a chance to say its problems were done.

Of course, there’s always the chance a court case will challenge that action, just as there’s a court case that has managed to stall the implementation of the state pension funding solution.

So who’s to say that any pension problems are solved? At least it appears an effort is being made to do something.

THIS WAS ALWAYS particularly harsh for Quinn because it meant he had to give support to something that constitutes potential for a property tax hike.

He could claim it was the mayor and City Council that wanted this. But you just know some people are going to be ever-so-eager to say “It’s Pat’s fault!”

Heck, Republican gubernatorial nominee Bruce Rauner couldn’t wait to issue the statement making that very claim!

“I would have vetoed this law, but Pat Quinn likes to raise taxes, and left homeowners holding the bag again,” Rauner said, in his statement. “This should have been a no-brainer. Veto the bill! Don’t squeeze Chicago families any more.”

TO WHICH I want to give Rauner a particularly nasty raspberry. Cheap trash talk from the venture capitalist who aspires to a political post in his life story, without telling us what needs to be done to resolve the pension funding problem.
 
Just how close are Rahm ...
It’s not something we ought to take that seriously. Although perhaps we should note that Rauner says he would have vetoed the bill, even though it was desired by his friend, Emanuel.

So much for the idea espoused by some people who say Rauner isn’t really that much of an ideologue Republican, and perhaps we’d be better off having a governor who could get along with the mayor.
... Rauner on the issues?

Personally, I do think Rauner and Emanuel have much in common, which is why I found it particularly ironic that Chicago Teachers Union President Karen Lewis issued a statement also lambasting Quinn.

SHE SAYS THE measure desired by the mayor steals money from city employees; claiming that a worker retiring now will have some $10,000 less in buying power from their pension 20 years from now.

She also tags the measure with the label “Emanuel’s Law,” which makes it seem as though she’d be most happy with Rauner’s outcome – even though the teacher’s union has made it clear they’re backing Quinn over Rauner come the Nov. 4 elections.

I’m fairly certain Quinn is anxious for Monday to end. It was a day where he woke up knowing he was going to get dumped on by somebody, no matter what he did.
How could Quinn get it right?

So if “the Mighty Quinn” were to ever find himself in the scenarios put forth by the Bill Murray film “Groundhog Day,” will this be the day that Pat is condemned to have to re-live – over and over and over again – until he somehow finally gets it right?

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