Stuff you may not know
Wednesday, Mar 9, 2011 - Posted by Rich Miller
* Hawthorne Race Course canceled its race card yesterday. It’s just another in a long string of woes faced by the state’s racing industry. And check this out…
Maywood Park, a harness track in the western suburbs, is threatening to close if a bill doesn’t pass by June. Sportsman’s Park, which stood next to Hawthorne for decades, closed in 2002. Rumor has it that a waste management company covets Hawthorne’s 119 acres for an incinerator and recycling plant, which would join the oil refinery and the sewage treatment plant in fouling the air of the near western suburbs.
* SIU President Glenn Poshard testified in a legislative committee last week about his university’s budget woes…
“Today, SIU’s operational support from the state of Illinois is now what it was at the close of the 20th century,” Poshard said in his testimony.
Yikes.
* The Belleville News-Democrat editorialized today on the state’s pension problems…
If a private business allowed its pension to be underfunded so badly, the responsible parties probably would be in jail.
Yeah. Like those guys ever go to jail. The big financial concerns tanked the world’s economy and nobody’s even been indicted, let alone jailed.
What happens when a private company screws up its pension fund? The federal Pension Pension Benefits Guarantee Corporation takes over. And it’s now in trouble…
State and local government pensions aren’t the only ones in trouble.
Corporate pensions, too, are woefully underfunded, and the federal agency that insures them against losses is facing a dangerous deficit that taxpayers may end up covering. One government watchdog agency says the federal insurance funds are at “high risk” of failure. Moreover, the Obama administration’s proposal to fix this is meeting stiff resistance from the U.S. Chamber of Commerce and other business interests.
The little-known federal Pension Benefit Guaranty Corp. insures roughly 27,500 corporate defined-benefit pensions, covering 44 million U.S. workers. These plans, popular in the public sector but increasingly rare in the private economy, promise workers fixed monthly retirement income, often equivalent to a final year’s salary or an average salary over the last few years of work.
Maybe the states should just get a change in US law and turn over their pensions to the federal government.
* I had no idea…
[State Sen. John Sullivan] said about a decade ago river otters were reintroduced in Western Illinois, but now they have migrated to ponds and are eliminating the fish population.
After contacting the Department of Natural resources, Sullivan said they were on board with a bill that would create a trapping season for river otters to help curb the population growth in ponds.
“It’s estimated in Western Illinois the river otter population is over 10,000, and in a few years it will be 30,000. They don’t have any natural predators,” Sullivan said.
* Do people really talk like this in the real world? Weird, man…
Newsradio 620 in Milwaukee has a shocking story about the dirty underground efforts by the Chicago political machine loyal to Rahm Emanuel and President Obama that is apparently applying its dark arts again, this time assisting the leftist, fleebagging Wisconsin State Senators in their efforts to thwart the democratic process in the Badger State.
Aside from the bizarre hyperbole, what’s the big crime? Well, a Wisconsin Republican claims that some folks connected with Obama’s past campaign are now helping with the recall of 8 GOP state Senators. Even if true, what does it prove? Lots of people worked for Obama two years ago, and they need to keep making money. Hacks gotta eat, too.
- wordslinger - Wednesday, Mar 9, 11 @ 10:00 am:
Newsradio 620 in Milwaukee has a shocking story about the dirty underground efforts by the –Chicago political machine loyal to Rahm Emanuel and President Obama that is apparently applying its dark arts again, this time assisting the leftist, fleebagging Wisconsin State Senators in their efforts to thwart the democratic process in the Badger State.–
Who are they talking about? Lord Voldemort? Bellatrix Lestrange? Draco Malfoy?
- amalia - Wednesday, Mar 9, 11 @ 10:04 am:
interesting fact, Otter Creek Hunt Club does not list otter to hunt. trappers out there?
- Small Town Liberal - Wednesday, Mar 9, 11 @ 10:08 am:
Perhaps some Wisconsin badgers could be introduced to do battle with these trespassing otters…
- Robert - Wednesday, Mar 9, 11 @ 10:14 am:
Or is Bill Murray available to step up to the next weight class of varmints?
- just sayin' - Wednesday, Mar 9, 11 @ 10:20 am:
Good news: Jim Edgar is promising to leave the state if horse raising doesn’t get the help he demands. Bye Jim.
Re Poshard: “Today, SIU’s operational support from the state of Illinois is now what it was at the close of the 20th century,”
The horror. Yeah those awful depression like days of 1999.
- Leroy - Wednesday, Mar 9, 11 @ 10:25 am:
Wow…an incinerator in the western suburbs would be a disaster…
We better give the track owners what they want.
- dupage dan - Wednesday, Mar 9, 11 @ 10:26 am:
A Reverend visiting from a abroad was heard saying during a sermon that “we must love otters”.
I agree.
- jeff - Wednesday, Mar 9, 11 @ 10:27 am:
The Pension Benefit Guaranty Corp is primarily funded by the pensions in the system no tax dollars. I am due a $560 per month pension in 13 years and extremely interested in the issue. When they took over the TWA pension everyone receiving over $60k a year took a major haircut. Which is why our state politicians will never allow anything like that to happen to them.
- fed up - Wednesday, Mar 9, 11 @ 10:28 am:
I have no objections to expanding casino type gambling to horse tracks in Illinois, yet I have to ask if this industry has just fallen behind the times and should be allowed to survive or not based on the merits of the business. If casino type gaming at the track helps them fine but no more tax money for an industry that is 40-50 years past its prime and in rapid decline.
- amalia - Wednesday, Mar 9, 11 @ 10:28 am:
Lord Voldemort….Rahm. Bellatrix Lestrange….Marj Halperin.
Draco Malfoy….Forrest Claypool.
- D.P. Gumby - Wednesday, Mar 9, 11 @ 10:31 am:
Are the otters covered by a pension? Maybe they’ll retire to Wisconsin to work on the recall effort. Do they count as “filthy Illinois vermin”?
- D.P. Gumby - Wednesday, Mar 9, 11 @ 10:31 am:
Or can they be trained to run in harness?
- soccermom - Wednesday, Mar 9, 11 @ 10:38 am:
I fully support the Wisconsin Dems. But is it bad that I totally love the term “fleebaggers?”
- CircularFiringSquad - Wednesday, Mar 9, 11 @ 10:48 am:
The little-known federal Pension Benefit Guaranty Corp.
Huh? Where have you been?
The good folks at United dumped their pension fund over there a few years.
We pay the bill
Surprise!
- Plutocrat03 - Wednesday, Mar 9, 11 @ 10:49 am:
If the day of the racetrack is done, then so be it. The State should be under no more obligation to save the horse racing than the book selling industry.
Since the State has hands off policy for saving other private industries, they need to leave horse racers to their fate.
- Steve Bartin - Wednesday, Mar 9, 11 @ 10:57 am:
“Maybe the states should just get a change in US law and turn over their pensions to the federal government. ”
Rich:
This isn’t practical. 6 figure pension are too good to be true. Many people in the private sector aren’t going to get a pension. So, enjoy it while it lasts.
- Rich Miller - Wednesday, Mar 9, 11 @ 11:04 am:
Steve, it was sarcasm.
- horseracer - Wednesday, Mar 9, 11 @ 11:09 am:
The horse industry in IL wants to compete with the likes of Indiana. They installed slots at tracks in 07 (following the national trend). Slots aren’t a state subsidy, horsemen only want to be on level ground with competitors in other states. Lets not forget that even though it is a struggling industry, tens of thousands of ag-folks are employed by horse racing and the state still picks up a fair amount of revenue from them. Allowing them to be viable in the national market would only be a plus for everyone.
- Wumpus - Wednesday, Mar 9, 11 @ 11:14 am:
Oh noes, corporate pensions are in trouble..this is a gamechanger! Do something Obama.
Soccermom, a sense of humor is a good thing. Embrace it. I mock people I like all the time.
- Bemused - Wednesday, Mar 9, 11 @ 11:20 am:
The news on the PBGC in kind of in line with what I posted a couple of days ago. Having dealt with pension fund issues I can tell you if a private fund were less than 50% funded the feds would be looking up their backside with a microscope and they would have a short period of time to get things headed in the right direction. If my info is correct the funds have limited or no option to change earned benefits but can alter future benefits. If it falls into PBGC all bets are off. The big problem has always been that the law has allowed both Government and Corporations to under fund pensions with no real cost. I belonged to a multi-employer pension that is in reasonable shape in part because those who were supposed to contribute were not allowed to get very far behind on what they were to pay into it. This plan would now be in very good shape if not for losses due to recent ression. We continue to hear that the defined benefit pension plan is no longer workable because employees change jobs so often. In a Multi-Employer plan you can change employers 20 times a year and they all pay your benefits to the same plan. This could be done on a National level and even run by the Private sector if that would appease the GOP folk. The employee could set his or her rate of contribution. That amount of money times a multiplier would set monthly benefit. I understand this is somewhat simplistic but the concept is workable. The reason it would be good for a lot of folks is having pros run the fund. Would it be better than 401K, I think yes. 401 was never meant to be what folks are trying to make it. I am sure there will be those who swear they can do better on their own. I suspect a low percentage actually can. One interesting aspect of the plan I belong to, the trustees who oversee the plan are personally responsable for it’s condition for up to 7 years after they leave their position. That means their personal assets are on the line. Makes em a bit cautious. I have said before if you do not want to pay high taxes to support entitlements make it possible for people to pay their own way. Of course the other way is to let those who are used up beg in the streets.
- Rich Miller - Wednesday, Mar 9, 11 @ 11:24 am:
=== I can tell you if a private fund were less than 50% funded the feds would be looking up their backside with a microscope and they would have a short period of time to get things headed in the right direction.===
The difference is that a private company might go out of business. It can’t just raise prices to survive. A state is a different animal entirely.
- Judgment Day - Wednesday, Mar 9, 11 @ 11:25 am:
“Maybe the states should just get a change in US law and turn over their pensions to the federal government.”
Actually, that may end up being the only real practical solution. And that ‘alternative’ is going to really make people unhappy, in particular those retired/retiring public employees who are receiving high annual pensions (think it is above $54k per year), who would have to take major reductions in their pensions.
- Judgment Day - Wednesday, Mar 9, 11 @ 11:28 am:
Sorry, think the max. guarantee by the PBGC (Pension Benefit Guaranty Corporation) is as follows:
“In general, PBGC will pay the benefit that a retiree would earn if they retired at age 65. However, there is a legal maximum, $54,000 per year for a 65-year-old, and lower for people who retire before age 65 or choose survivor benefits. In addition, certain early-retirement payments and recent benefit increases are generally not covered.”
- Little Egypt - Wednesday, Mar 9, 11 @ 11:47 am:
Call me simplistic; however, why does the Illinois legislature continue to rob the pension fund when it is at a point where the fund will never again be solvent? Every session, they acknowledge the huge underfunded amount and yet, they find justification to rob it again. I don’t care if you take the money actually out of the fund, if you borrow against it, if you sell your interest in it, if you turn it into a 401(k), etc. IT’S GROSSLY UNDERFUNDED. What will it take to make these yahoos stop going to a trough that should have been off limits decades ago?
Also, does the robbing of the pension fund also affect the legislators’ pension or is there a different trough their money goes into? If this is the case, then let’s start borrowing from their pension fund too.
Do we need to make it illegal to take money from the pension fund for anything other than disbursements to those retired? Now if we can find a legislature with the coconuts to pass that bill, it would be a start.
- vole - Wednesday, Mar 9, 11 @ 11:56 am:
Boomers who are not savers are going to be in for a big, big shock during their retirement years. But we all will feel the pain because they won’t have that savings to contribute to the overall economy either. Overall, a major drag in more ways than one. And those who have responsibly saved and who will be in a better position to contribute will probably be means tested on SS and Medicare. Calling Dr. Jack.
- Honest Abe - Wednesday, Mar 9, 11 @ 12:27 pm:
Hawthorne has scaled back things considerably. Even the Illinois Derby, which used to be a premiere racing event that attracted contending horses that were seeking to qualify for the Kentucky Derby, has been downsized. The purses for winning horse owners have been reduced.
- Honest Abe - Wednesday, Mar 9, 11 @ 12:33 pm:
No weirder than bussing people in to participate in caucuses in neighboring states with lax election laws. It’s the Chicago way!
- Kyle Orton's Neck Beard - Wednesday, Mar 9, 11 @ 1:02 pm:
Hmm. Do otters like Asian carp?
- Abandon Ship - Wednesday, Mar 9, 11 @ 1:11 pm:
How long have Illinois racetrack owners been trying to secure a bailout package or slot machines from the General Assembly? It seems like an eternity. Who are the lobbyists representing the tracks? These people must be singularly ineffective. It seems like the slot machines have been discussed in every session of the Assembly for the past twelve to fifteen years.
- amalia - Wednesday, Mar 9, 11 @ 1:36 pm:
speaking of lobbyists, Water Reclamation making changes via a bid for services.
- Kasich Walker, Jr. - Wednesday, Mar 9, 11 @ 2:19 pm:
As others have pointed out above, allowing tracks to renovate with slots is not a state bailout. It was worth repeating.
- Bemused - Wednesday, Mar 9, 11 @ 2:37 pm:
Rich your point is understood.
What I was mainly saying is we would not be talking about this if the law did not allow underfunding. Some states with public enployee pensions have paid as they went along and are okay now. Also if our lawmakers were going to lose their house to make up the shortfall this would be a non issue. Of course State Pensions would most likely be a different beast.
- Abandon Ship - Wednesday, Mar 9, 11 @ 2:41 pm:
Kasich,
I was not referring to slot machines as a bailout.
At different times, the racetrack owners have sought government assistance. The addition of slot machines to tracks is not the only help that the tracks have requested from the General Assembly.
The terms and proposals have varied at different times. At one time, the tracks wanted to get a percentage of the funds generated by the riverboats.
- Kasich Walker, Jr. - Wednesday, Mar 9, 11 @ 3:10 pm:
Abandon, horseracing’s comments and yours were among those distinguishing a difference between a bailout and allowing slots at the tracks.
- wordslinger - Wednesday, Mar 9, 11 @ 4:06 pm:
The Sport of Kings has always thought it had a royal entitlement in Illinois.
Multi-millionaire Duchoosis shook down the state pretty good to build his palace (thank you, Sam Vinson) after the old track caught fire, not once, but two twice.
I like going to the track, but they haven’t done anything to bring in the casual fan. Everything is tilted to the serious gambler, which is a small market.
For the casual fan, it’s a huge investment in time and money, even if you don’t bet much. And what do you get? A few races, and lots of downtime in-between. That ain’t going to work in this entertainment market.
Rather than promoting or marketing themselves, they’ve always relied on their well-worn path to the governor’s office, no matter the governor.
I don’t have a horse in this race, but I don’t see why the tracks should steal from the casinos. The tracks have been the worst example of corporate welfare for years.
- Kasich Walker, Jr. - Wednesday, Mar 9, 11 @ 5:51 pm:
@wordslinger: “…I don’t see why the tracks should steal from the casinos…”
The tracks may not have casino games, but they’ve been around in Illinois a lot longer than the casinos.
The argument that it is the casinos “stealing” from the tracks has as much (or as little) validity as the tracks “stealing” from the casinos.
- wordslinger - Wednesday, Mar 9, 11 @ 6:39 pm:
–The argument that it is the casinos “stealing” from the tracks has as much (or as little) validity as the tracks “stealing” from the casinos.–
They’re different client bases.
The tracks had a monopoly on parimutueling betting forever. Hanging out at the track all day for eight races just doesn’t cut it for a large swath of the entertainment market.
Video poker and blackjack, with the instant win-and-loss dynamic, appeals to a far different crowd.
- Tack - Wednesday, Mar 9, 11 @ 7:28 pm:
wordslinger—”Video poker and blackjack, with the instant win-and-loss dynamic, appeals to a far different crowd.” Absolutely!!! You can lose your money so much faster than you can at the racetrack.