Illinois Approaching Less-Than-Grand Bargain On Pensions
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  • Anthony

    Sate of Illinois: $100 billion dollar deficit by some estimates…we shall see.

  • Bruce

    How can the state add more money to the pension pie? It doesn’t have any money.

    • free_agent

      The state will raise taxes, or decrease other spending, or quite possibly do both. Or, since “this won’t be enough on its own to completely solve the state’s problems”, in the next legislative session, pension benefits may be trimmed further.

  • ToniTexas

    Unions never, ever agree to give up compensation or advantageous work rules. A 1983 Atlantic story called “Voting for Unemployment” described the choice before union workers at hard-hit US automakers: keep everyone employed at lower pay and benefits, or keep compensation high and accept layoffs. The union chose the latter.

    The difference here is that private firms can go under, as US automakers nearly have. Government never does, and public sector unions never see any reason for taxpayers not to cough up.

    A WSJ editorial lists details I couldn’t find in news stories. E.g., a schoolteacher in his twenties can retire at 60 at 75% pay. This is reform? http://online.wsj.com/news/articles/SB10001424052702303670804579233901035185122?mod=WSJ_Opinion_AboveLEFTTop

  • Andrew Allison

    Yesterday, VM wrote about the impending implosion in Puerto Rico and it’s implications. Puerto Rico’s debt is just 70% of Illinois’, and the latter seems no more able to reform than the former. IL, incidentally, isn’t even in the major league in terms of debt-per-capita (see: http://www.governing.com/gov-data/state-debt-per-capita-figures.html). Blue is the new red.

  • Kavanna

    The Republican position is correct. It’s not enough, and it’s not clear that anything short of bankruptcy will do the trick. Unfortunately, states can’t go bankrupt in the US legal code.

    This may be the moment the Fed bursts through another clear legal barrier and, after some arm-twisting, starts buying municipal debt. Can’t have the home state (and home city?) of The One go bankrupt. Another bailout is in order.

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