Pritzker’s preposterous pension proposal
Wednesday, Apr 17, 2019
I agree that some the criticism is coming from professional opposers who are making bank off doing and say anything they can to stop his tax proposal. But I don’t belong to that crowd.
* The governor also talked yesterday about how he wants to transfer state assets to the pension system, something he’s never really fleshed out with specifics. And then he addressed the question about his plan to short the pension systems $1.1 billion a year over the next 7 years by lengthening the payment ramp…
* From the governor’s budget walk-down…
1) That isn’t a “straight line” of projected state payments until 2045.
2) The real problem, as we’ve discussed before, is the ramp’s last ten years or so. Pritzker can’t “bend” that curve by lowering payments up front. That’s a preposterous thing to say. He’ll either make the curve worse or prolong the state’s fiscal agony or both.
3) If the governor truly wants to “bend the curve,” he’ll abandon this irresponsible idea and work on a solution for twenty years from now. Put more money in up front via bonding, asset transfers, whatever. But do not reduce payments by over $7 billion to spend elsewhere and then pat yourself on the back for fixing a problem that you’re only making worse.