SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
No surprise: Quinn says “no can do” on city pension plan

Monday, Apr 7, 2014

* Despite some media attempts to blame the stall of Rahm Emanuel’s pension proposal on mysterious behind the scenes maneuvering, sometimes a cigar is just a cigar, especially when it involves a property tax hike

Gov. Pat Quinn on Monday made clear he’s not on board with Mayor Rahm Emanuel’s proposal to hike property taxes as a way to solve a looming pension crisis in the City of Chicago.
In a news conference today on the Near West Side, Quinn repeatedly referred to Emanuel’s plan as only a “sketch” but said he would not back a plan that relied heavily on property tax hikes.

“What I saw last week wasn’t a plan, it was a sketch,” Quinn said. “It was a sketch that would relegate property owners in Chicago, families and businesses to a future of higher and higher property taxes. I don’t think that’s a good way to go.”

“They’ve got to come up with a much better, comprehensive approach to deal with this issue,” Quinn continued. “But if they think they’re just going to gouge property tax payers, no can do. We’re not gonna go that way.”

I’m told we can expect another amendment soon, perhaps today, that will strip out the property tax language. Nothing has surfaced yet as I write this, however.

…Adding… They mayor tries to dodge responsibility for the language

“We finally have a model that brings both reform and revenue together,” Emanuel said at an unrelated news conference when asked whether state lawmakers can be spared having to vote on a version with the property tax language in it. “It was never anyone’s intention to have Springfield deal with that. That’s our responsibility. But I do believe, to actually give the 61,000 workers and retirees the certainty they deserve, you need reform and revenue. And we’ll deal with our responsibility.”

“We will work through the issues,” he said when asked again whether he’s willing to take the tax language out of the state bill.

* Meanwhile

A leading credit rating agency has called legislation to overhaul to Chicago’s pension funds a “positive development” but says it won’t solve all the city’s problems.

The analysis by Moody’s Investor Service was released Monday. It says the proposal is “modestly credit positive” because it tackles the city’s massive and growing underfunded pension liabilities.

* But

…Moody’s continues, the proposal calls for hitting a funding target of 90 percent in the city’s municipal and laborers’ retirement system in 40 years, not the normal 30 years that actuaries recommend. Because of that and other factors, unfunded liability in the two pension funds, which Moody’s sets at $13.8 billion in 2012, would resume rising after a brief dip. While the unfunded liability eventually would drop if plan assumptions are met, “if annual investment returns fall short of the assumed 7.5 percent, the risk of plan insolvency may well reappear.”

Moreover, Moody’s adds in what definitely is a gray-Monday report, “the proposal does not address” a shortfall in police and fire funds for which the city faces a $600 million increase in contributions next year under current state law.

Despite all those sour words, Moody’s, which rates city debt Baa1 with a negative outlook, just a couple of levels above junk, terms Mr. Emanuel’s proposal “modestly credit positive.” But Moody’s says that “even with reform, pensions will continue to weigh heavily on Chicago’s credit quality.”

- Posted by Rich Miller        

  1. - Commander Norton - Monday, Apr 7, 14 @ 1:35 pm:

    Do you mean the new amendment would strip out the property tax language?

  2. - fed up - Monday, Apr 7, 14 @ 1:37 pm:

    Hmm Quinn says no to Chicago Casino and no to Rahms property tax hike, maybe Rahm will be supporting Bruce for Gov.

  3. - wordslinger - Monday, Apr 7, 14 @ 1:38 pm:

    Can’t the City Council just do this own their own?

    Aren’t they just looking for political cover so they can pretend the GA “made” them raise property taxes?

  4. - Norseman - Monday, Apr 7, 14 @ 1:39 pm:

    Rich, your headline says it all!

  5. - Yellow Dog Democrat - Monday, Apr 7, 14 @ 1:45 pm:

    I’m not sure how an amendment changes things.

    Assuming property taxes are going up, how does it matter in a political campaign whether there is still specific language in the bill?

  6. - wordslinger - Monday, Apr 7, 14 @ 1:49 pm:

    Rahm “tries to dodge responsibility?” What a shock.

  7. - Chi - Monday, Apr 7, 14 @ 1:52 pm:


    The City Council can put more money into the funds on their own, but they can’t alter the benefit structure on their own.

  8. - wordslinger - Monday, Apr 7, 14 @ 1:59 pm:

    Thanks Chi.

    The property tax language has confused me. I took that part of it as a way to make the GA wear the jacket for the property tax raise.

    Why anyone thought they would go for that is beyond me.

  9. - Jack - Monday, Apr 7, 14 @ 3:07 pm:

    They can strip out the property tax language and put in corporate subsidy cutbacks.

  10. - A guy... - Monday, Apr 7, 14 @ 3:09 pm:

    Funny…they were about to vote on that Sketch.

  11. - Precinct Captain - Monday, Apr 7, 14 @ 3:23 pm:

    “It was never anyone’s intention to have Springfield deal with that.” Except, that was exactly Rahm’s intention and was reported months ago.

    Second, this is the same Rahm that talks about holding the line on property taxes with one side of his mouth while praising CPS raising property taxes. That’s not holding the line on property taxes when you appoint the entire CPS board and they act at largely at your discretion.

  12. - Rod - Monday, Apr 7, 14 @ 5:07 pm:

    Governor Quinn would have been wise just to side step the Chicago pension issue for as long as possible. While opposing property tax increases is normally good politics, opposing it in this situation and just saying “They’ve got to come up with a much better, comprehensive approach to deal with this issue. But if they think they’re just going to gouge property tax payers, no can do. We’re not gonna go that way,” really offers no solution.

    Not that Bruce Rauner has a constitutional solution either. As many of us have commented on this blog Chicago’s property tax rate is near the lowest if not the lowest in Cook County. So this is not exactly gouging Chicago tax payers, including the Governor himself. But the truth also is there are still three other pension funds to deal with and going to property taxes to solve all of those would be impossible. Until the Governor actually had something that could at least pretend to be a comprehensive approach to deal with the pension funds he would have been wise to be silent.

  13. - regular democrat - Monday, Apr 7, 14 @ 5:33 pm:

    Could the gov be trying to check mate the mayor into using his beloved TIF dollars to shore up the pension funds? That would be a good start.

  14. - Just Me - Monday, Apr 7, 14 @ 6:20 pm:

    Quinn to Mayor: “When the GOVERNOR wants to raise taxes it is the will of the people, when the MAYOR wants to raise taxes it is because you aren’t trying hard enough.”

  15. - Just The Way It Is One - Monday, Apr 7, 14 @ 7:46 pm:

    “No can do.” Well, Rahm, at least for the time being, friend, guess that about sums it up…!

  16. - Yellow Dog Democrat - Monday, Apr 7, 14 @ 11:20 pm:

    @Rod -

    You and the bond houses make the some point.

    The big deal is that this is not the big deal.

    We are talking a $250 tax hike for residents and $675 for commercial, for a $250K property.

    But the other pension funds have a problem that is 12 times larger.

    One would expect the other pension funds begin negotiating to increase the taxpayer contribution, starting at $3K for homeowners. Ouch.

  17. - Jack - Tuesday, Apr 8, 14 @ 8:16 am:

    Again, revenue needs to also come from corporate subsidy and perk cutbacks. It is only fair they become part of the equation.

  18. - Chris - Tuesday, Apr 8, 14 @ 11:37 am:

    “One would expect the other pension funds begin negotiating to increase the taxpayer contribution, starting at $3K for homeowners. Ouch.”

    But that would mean that all of the ‘residency required’ current employees would have to pony up forhte taxes, too. Police and Fire might be willing to live with $3-400 property tax increases, but they’d choke (along with everyone else!!) on $3-4,000 increases.

    If Chicago property taxes *actually* double, with services being cut, too, then we can all watch the death spiral begin. And I don’t believe in the Chicago = Detroit storyline. But I know that I would be hard pressed to stay in the city (and stay with CPS) and pay taxes at Winnetka levels.

  19. - Jimbo - Tuesday, Apr 8, 14 @ 1:55 pm:

    The way I see this is that Rahm didn’t want to wear the blame for the increase. He wanted the lege to wear it. Why on earth would they want to do that? I can’t believe anyone thought the mandated increases had a shot.

Sorry, comments for this post are now closed.

* Aldermen behaving badly
* Exelon Caught In $1.4 Billion Tax Dodge - While Making $841 Million In Quarterly Profits
* Illinois Policy Institute claims AFSCME rejecting offers that would benefit state workers
* *** UPDATED x1 *** Durbin "has the support" to stay in Senate leadership slot
* Question of the day
* I don't think this is gonna work as planned
* More like this, please
* Rauner doesn't escape this time
* One of the best ads of 2016
* Asbestos lawyers launch high-dollar ad campaign in appellate race
* Back to the drawing board
* Proft on GOP, Trump and Madigan
* As usual, the blowhard walks it back
* *** UPDATED x1 - LIVE VIDEO *** Kirk taking page from Trump debate playbook
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Visit our advertisers...






Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

* Google Photos to take on Facebook’s Prisma?
* Twitter is retiring Vine after
* PlayStation Vue is live on Android TV
* Google Pixel XL unboxing: This Really Blue is really nagging at us (Video)
* That Mac trade-in deal is back at the Microsoft Store
* Alphabet reports a strong third quarter despite free-falling advertising values
* Xiaomi Mi MIX sales will be limited, because it’s a concept phone

* Unlike some, White Sox still remember 2005
* Eaton named Gold Glove Award finalist
* One possible White Sox future playing out in Toronto
* pnoles' offseason plan
* Three times the 2005 White Sox never happened on Monday
* White Sox developing promising OF prospects
* Josh Nelson's Offseason Plan


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0


* Illinois comptroller race between Munger, Mendo.....
* Illinois comptroller race between Munger, Mendo.....
* Endorsement: Illinois comptroller, Munger - Opi.....
* Endorsement: Illinois comptroller, Munger - Peo.....
* Durbin Says No to Governor Race - Daily North S.....
* Students Protest Art Institute of Chicago Trust.....

* The Latest: Authorities oust protesters from private land
* Chicago aldermen blast ethics ban on face-value Cubs tickets
* Man freed from prison after 12 years when case is dismissed
* Police fire pepper spray, bean bags as they oust protesters
* Funeral set for Oklahoma man killed in Afghanistan attack
* Illinois health law choices shrinking with insurer exits
* Death of asthmatic teen who saw shooting ruled a homicide
* Illinois joins $41M multi-state settlement with Hyundai, Kia
* University of Illinois brings back former admissions process
* Altria to close 2 tobacco facilities affecting 580 workers

* Bobcat hunting opponents seek permits, won't use them
* Opponents emerge against Illinois road fund ballot question
* Feds end lease with Illinois for state park, citing neglect
* Statehouse Insider: Tomorrow's a new day; in Illinois, that may not be good
* Cook County lawyer who posed as judge criminally charged
* 1,100 non-union state workers getting $3,016 bonuses
* Springfield veteran honored for volunteer work
* Central Illinois soldier killed in Afghanistan
* Rauner administration awarding more than $3 million in bonuses to non-union workers
* SIU injury-prevention program reinstated through stopgap budget

* Feds probing Express Scripts' relationships with drugmakers, specialty pharmacies
* Obama says health consumers need to shop around
* In Washington’s drug price fight, plenty of blame to go around
* In Washington's drug price fight, plenty of blame to go around
* Health premium news gives attacks to GOP Senate candidates

* Man wounded in Englewood drive-by shooting
* Are CFP contenders Clemson, Washington ready for huge road tests?
* Ruling lets wrongfully convicted man seek $200,000 from state
* Man shot, seriously wounded in Chatham
* Johnson vows fair allocation of police officers, CAPS overhaul
* Bears RB Jeremy Langford back, ready to ‘run a little bit harder’
* ‘Disorder’: Tension never lets up as a war vet scouts for threats
* Talking points: John Fox, Alshon Jeffery dismiss reports, rumors
* Feds: 24 charged with bringing drugs from LA to Chicago on Amtrak
* Plans afoot to take Joffrey’s “Romeo and Juliet” to NY

* Obama orders 98 more prisoner releases, setting single-year clemency record
* Officials: One of 2 men found slain in Goose Island was state corrections officer
* Stakes high third time around in North Shore congressional race between Dold, Schneider
* Half of Illinois' metro areas posted unemployment increases in September
* Naperville North junior becomes first in world to get perfect score on AP physics exam
* Clown costumes banned from some school Halloween celebrations
* Indiana governor hopefuls vow to pardon Chicago-area man
* Cubs fan and love good food? Here are even more places to watch the playoffs
* Putin's chaos strategy is coming back to bite him
* Cubs World Series ticket prices could break record

The widget AQL4JYGHIY powered by Feed Informer does not exist.

* Our View: U.S. Rep. Rodney Davis deserves third term
* John Bouman: We all suffer from Illinois' budget crisis
* Eugene Robinson: Hillary Clinton is blazing a momentous trail
* George Will: Republican Party needs to revert to nominating Republicans
* Bernard Schoenburg: 9 on Sangamon County Board opt out of pension system
* Bobcat hunting opponents seek permits, won't use them
* Opponents emerge against Illinois road fund ballot question
* Our Opinion: LaHood endorsed in 18th Congressional District
* Leroy Jordan: Race Riot site must be preserved, taught to students
* E.J. Dionne: Trump is not a GOP aberration

* PODCAST:Sports Talk 10-27-16
* NFD: Flats residents free to return after gas leak
* Council again deadlocks on SBH
* Ameren warns of scam in region
* Memorial garden and fountain beautifies south lawn of Herrin City Hall
* Parkland College: Women's Soccer vs. Kaskaskia
* JC Women's Soccer: Parkland vs. Kaskaskia
* 10-27-16 Penny for Your Thoughts
* Normal street closures remain after gas leak from car crash
* Kingsley reopens, Osage still closed after gas leak from car crash

* While Trump was in Ohio, Kasich headed to suburbs for Dold
* Early voting off to fast start in suburbs
* DMK Burger Bar, Stan's Donuts among 11 restaurants opening at Oakbrook Center
* No. 22 Navy braces for challenge of slowing potent USF
* Why water quality, costs could rise in Naperville

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Durbin visits 'extraordinary' Lake County ......
* Durbin “has the support” to stay in Senate......

* Kirk, Duckworth meet for first televised S......
* Duckworth's VA office spent nearly $100k o......

* Thorner: Mark Levin's case for an Article V Convention challenged
* Former IL Congressman threatens to grab musket if Trump loses
* Kirk vs. Duckworth in first televised debate Thursday night at 7 PM CST
* UPDATE: Former IL Congressman threatens to grab musket if Trump loses
* Report Says Illinois Has Made Huge Strides In Health Care for Children
* Poll: Clinton Leads Trump 53 Points Among Latinos
* Treasure Island Foods Slated As Anchor Retail Tenant of Maryville Development
* Krishnamoorthi Releases Web Video Featuring Obama
* Chicagoans Protest Against Donald Trump, Walmart
* Protesters Hold 'Anti-Trump, Anti-Walmart' Rally In Chicago

* Don’t be a Ghoul, Don’t Drink and Drive - Police throughout Illinois step up patrols for Halloween weekend
* Honoring Illinois' Fallen - United States and State flags at half-staff from Sunrise, Saturday, October 29, 2016 until Sunset, Monday, October 31, 2016.
* 25th Annual HIV/STD Conference - Celebrating Success, Shaping the Future - Sexually Transmitted Diseases increase while HIV decreases
* Workers’ Comp Commission Updates Technology at No Cost to Taxpayer - Another step in Rauner Administration’s modernization of state government
* Governor’s Children’s Cabinet Makes Lead Poisoning Prevention A Priority - October 23-30, 2016 - National Lead Poisoning Prevention Week

      Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller