The folks in Washington are trying to bail out Puerto Rico with taxpayer money. Watch, as Illinois and other states and cities with massive government sectors and high taxes continue to crumble they will start agitating for their own bailouts. Again I say it’s time to consider carving out the big cities. They seem to hold the rest of the country in contempt anyway. I say let the big government islands bail themselves out if they fail to come to terms with fiscal reality. The rest of America has given enough, in many ways.
Chicago’s pension-fund shortfall just got $11.5 billion bigger.
Thanks to the defeat of the city’s retirement-fund overhaul by the Illinois Supreme Court and new accounting rules, Chicago’s so-called net pension liability to itsMunicipal Employees’ Annuity and Benefit Fund soared to $18.6 billion by the end of 2015 from $7.1 billion a year earlier, according to its annual report. The fund serves some 70,000 workers and retirees.
The new figure, a result of actuaries’ revised estimates for the value in today’s dollars of benefits due as long as decades from now, doesn’t change how much Chicago needs to contribute each year to make sure the promised checks arrive. But it highlights the long-term pressure on the city from shortchanging its retirement funds year after year — decisions that are now adding hundreds of millions of dollars to its annual bills and have left it with a lower credit rating than any big U.S. city but once-bankrupt Detroit.
Congratulations Chicago, home of Obama, Rahm Emanuel, the $100K + teacher pension, Bill Ayers, Jesse Jackson, Saul Alinsky Etc. Etc., you and Detroit now have similar credit ratings. Way to go.
Second City? How about second to last city.