* Illinois Republican National Committeeman Richard Porter is always dreaming up new ideas. Here’s his latest via Brett Rowland at The Center Square…
His solution? A quick GM-style bankruptcy that would replace “Old Illinois” with “New Illinois,” with help from the federal government. […]
Porter argues that Illinois can’t afford to dig out through a series of small, incremental changes as its debts continue to grow and its population continues to decline and home values fall. Those things will only exacerbate the state’s financial problems and push more people to move out.
Illinois’ government, he said, has essentially stopped serving the people. Rather, lawmakers continue to search for more revenue to repay its creditors. And it’s not just the state. Porter pointed to Chicago’s debt and population losses. He also singled out municipalities such as Harvey and North Chicago that have had to cut services as they struggle to pay for promised pensions.
Porter proposed state lawmakers come up with a plan to create a New Illinois, with a new constitution, to buy the assets of Old Illinois. During this process, he said other changes would be needed for the state to be successful once it emerges from bankruptcy. He suggested consolidating the state’s more than 7,000 units of government – by far the most of any state in the nation – down to about 1,000.
“Rather than grinding through all these problems – who wants to do that? Do you want to spend 80 years grinding through 400 different, separate municipal bankruptcies?” he said.
Porter’s plan calls for the federal government to guarantee the debt that New Illinois would take on to buy the assets of Old Illinois. It’s another long shot, but not without precedent. He pointed to Brady bonds that were used in Mexico and other countries.
And the federal government would have some motivation to act because Illinois isn’t alone, Porter said.
“We’re not the only state – we’re sort of at the leading edge, but Connecticut’s right there and New Jersey’s right there,” he said.
Porter’s proposal calls for some federal help paying off the state’s accumulated pension debt. However, he said that pensioners wouldn’t get 100 cents on the dollar. Rather, he suggested some kind of cap or maximum – he tossed out $80,000 annually per pensioner as a limit.
In a state with a median household income of about $63,575, taxpayers can’t afford to pay huge pensions to former school superintendents who retired before they turned 60. Porter singled out former New Trier Superintendent Henry Bangser’s annual pension payout of more than $300,000. WTTW reported in 2017 that Bangser retired at age 57 and had already collected nearly $3 million in retirement benefits.
“Is the purpose of government to collect taxes to pay people who have the status of government workers so they can stop working in their 50s and live the rest of their lives in comfort? Is that the purpose of government?” he said “… If the average person is making $65,000, I’m not going to pay someone $90,000 or $100,000 or $120,000 or $350,000 a year not to work for 40 years. That’s called feudalism. That’s not a republican form of government.”
- NotRich - Thursday, Feb 6, 20 @ 2:41 pm:
WOW.. its pretty obvious this Porter guy has an in with a weed dispensary that is NOT SHORT on product.. I’ll have what he’s smoking>>
- DTAG - Thursday, Feb 6, 20 @ 2:43 pm:
Im fine with an $80,000 cap on pensions if you index to inflation.
- SpfdNewb - Thursday, Feb 6, 20 @ 2:44 pm:
NotRich,
Pass it on over. I need to get on Porter’s level to try to understand this.
- NIU Grad - Thursday, Feb 6, 20 @ 2:46 pm:
“replace “Old Illinois” with “New Illinois,”
That’s some about-to-sell-us-a-monorail style sales creativity right there.
- Oswego Willy - Thursday, Feb 6, 20 @ 2:50 pm:
===His solution? A quick GM-style bankruptcy===
A pathetic attempt to seem thoughtful.
Why do I say that?
=== Porter proposed state lawmakers come up with a plan to create a New Illinois, with a new constitution…===
Narrator: voters rejected a call for a constitutional convection.
LOL… “but, we need a new constitution”
Ok, bud, keep dreaming, your call to “shake up” and “bring back”, passively last time by Rauner, holding a state hostage… it all but imploded the Raunerites Party, formerly known as the ILGOP…
Bust out artists like Rauner sold it, lost, Porter wants the implosion before rebuilding.
Abd folks wonder why I am so critical of the party I once knew. What a bunch of con artists, charlatans, phonies, and dishonest souls they are.
- Ginhouse Tommy - Thursday, Feb 6, 20 @ 2:52 pm:
Pot is legal in Ill. but hash and lsd aren’t. Makes you wonder what he stirred in his coffee this morning. That was real doozy. Sheesh.
- Anyone Remember - Thursday, Feb 6, 20 @ 3:00 pm:
Mr. Porter -
https://www.youtube.com/watch?v=cHT0qUpLxMI
- Blue Dog Dem - Thursday, Feb 6, 20 @ 3:04 pm:
Actually sort of interesting.
- Heyseed - Thursday, Feb 6, 20 @ 3:08 pm:
It will have to be faced, public employees and retired public employees make up a substantial portion of the electorate in Illinois. They won’t willingly allow their pensions to get trimmed through any political process.
Makes you wonder who’s the boss, though, the taxpayers or the public employees. Maybe the solution is to have ALL Illinois residents on the public payroll?
- Steve - Thursday, Feb 6, 20 @ 3:08 pm:
States aren’t now or ever likely to be to be able file bankruptcy under Chapter 9.
- @misterjayem - Thursday, Feb 6, 20 @ 3:08 pm:
“Porter proposed state lawmakers come up with a plan to create a New Illinois, with a new constitution, to buy the assets of Old Illinois. *** Porter’s plan calls for the federal government to guarantee the debt that New Illinois would take on to buy the assets of Old Illinois.”
In a world plagued with clownishness and idiocy, Mr. Porter has nevertheless managed distinguished himself.
– MrJM
- Oswego Willy - Thursday, Feb 6, 20 @ 3:10 pm:
=== the taxpayers or the public employees. Maybe the solution is to have ALL Illinois residents on the public payroll?===
Yeah, public employees are taxpayers.
Your rhetorical flourishes now look ridiculous when you realize that. I needed a laugh. Thank you.
- Da Big Bad Wolf - Thursday, Feb 6, 20 @ 3:11 pm:
Hopefully the Eastern blocheads didn’t copyright New Illinois.
- All This - Thursday, Feb 6, 20 @ 3:21 pm:
“Porter’s plan calls for the federal government to guarantee the debt that New Illinois would take on to buy the assets of Old Illinois.”
If you can talk the federal government into guaranteeing the debt of New Illinois why not skip a step and get the federal government to guarantee the debt of Old Illinois?
- Steve Polite - Thursday, Feb 6, 20 @ 3:24 pm:
Mr. Porter your utopia is not my utopia.
- Demoralized - Thursday, Feb 6, 20 @ 3:26 pm:
==That’s not a republican form of government.==
In Illinois is doesn’t seem to be. In Illinois the “Republican” (big R) form of government seems to be to bail on your debt.
- Demoralized - Thursday, Feb 6, 20 @ 3:28 pm:
==They won’t willingly allow their pensions to get trimmed ==
Why would they? Why would anyone?
- Ron Burgundy - Thursday, Feb 6, 20 @ 3:30 pm:
And this is the guy that Rep. McSweeney in the other thread holds out as the shining light of brilliance. Oh my.
- Bashoooka - Thursday, Feb 6, 20 @ 3:43 pm:
This is exactly what Illinois needs. He’s very brave to propose it.
Illinois has more units of govenrment than California and New Jersey combined. It pays $300,000 to pensioners in perpetuity.
And its govenor is only proposing to spend $200 million from a graduated income tax on paying down the pensions. We need Congress to allow states to file Chapter 9 and take the plunge.
- Da Big Bad Wolf - Thursday, Feb 6, 20 @ 3:47 pm:
=== Porter singled out former New Trier Superintendent Henry Bangser’s annual pension payout of more than $300,000. WTTW reported in 2017 that Bangser retired at age 57 and had already collected nearly $3 million in retirement benefits.===
Is Bangser’s pension abusive or not? Porter doesn’t give a basis for whether this is abuse or not, just raw numbers. I imagine Winnetka paid out some serious coin to the superintendent of their prestigious school. How long did he work there? How much of the pension money came from his own contributions? What interest did that money generate?
I think it’s irresponsible for people like Porter and WTTW to throw the names of faithful public servants out there to the torches and pitchforks crowds as objects of scorn. Someone might get hurt.
- Da Big Bag Wolf - Thursday, Feb 6, 20 @ 3:50 pm:
=== Illinois has more units of govenrment than California and New Jersey combined. It pays $300,000 to pensioners in perpetuity.===
You don’t need bankruptcy to consolidate units of government. And pensioners don’t live “in perpetuity.”
- Rich Miller - Thursday, Feb 6, 20 @ 3:58 pm:
===He’s very brave to propose it===
How is this brave?
- Oswego Willy - Thursday, Feb 6, 20 @ 4:07 pm:
===He’s very brave to propose it===
This is only brave of someone willing to be seen as a loon to governing and politics, or worse trying to appease the “crazy in-law uncle” threatening you leave Illinois… and who corners you to rant every time you seek them.
If looking foolish is a brave thing… he’s the bravest soul out there, I guess?
- SSL - Thursday, Feb 6, 20 @ 4:17 pm:
What a huge waste of time. It can not happen.
The latest version of the Great Illinois Experiment is already underway. It will take several years to see if it is successful in reversing the significant decline of a once great state. If it is, JB will properly be recognized for his wisdom and skill in making it happen.
To be clear, you can’t expect the metrics to move quickly, but progress needs to be made. A meaningful reduction in the State’s unfunded pension and benefits liabilities, and a reversal of the population decline need to happen. Addressing the State’s deserved reputation for widespread political corruption also needs to happen.
It’s already interesting, but way too early to call.
- JoanP - Thursday, Feb 6, 20 @ 4:18 pm:
= trying to appease the “crazy in-law uncle” threatening you leave Illinois… and who corners you to rant every time you seek them =
He’s related to John Kass? /snark/
- Bashoooka - Thursday, Feb 6, 20 @ 4:20 pm:
==How is this brave?==
Proposing new ideas takes guts to stand your ground in the face of mainstream opposition. Porter knew that most would denounce it, but those same people never offer their solutions.
We had a task force to look at property taxes. They offered very little opinion on how to fix this mess without soaking taxpayers.
Porter knew he was taking a risk, and that’s brave. What’s the alternative? Raising $3.4 billion in a progressive income tax and allocating $200 million to the pension tapeworm. Porter’s idea is much braver than that.
- Oswego Willy - Thursday, Feb 6, 20 @ 4:23 pm:
- JoanP -
These awkward cornerings usually begin with…
A) “Oh, well, when i was listing to that Dan Proft, it made me think…”
B) “You gotta read Kass. I got your Aunt to read abd finally understand him, you should too”
or
C) “The Tribune really understands me. When I leave, oh man, I’m gonna subscribe and every day read that Kristen McQueary with coffee and danish laughing at you back here”
I make the mistake of asking… “how are you?”
Others do too.
- Demoralized - Thursday, Feb 6, 20 @ 4:26 pm:
==Proposing new ideas takes guts ==
Proposing bankruptcy isn’t a new idea. We’ve had some real mental giants proposing that before. Granted, his loony “New Illinois” take on it is.
==Porter’s idea is much braver than that.==
It’s brave to propose not paying your debts?
- Oswego Willy - Thursday, Feb 6, 20 @ 4:29 pm:
=== Porter knew that most would denounce it, but those same people never offer their solutions.===
“Yeah, it’s lunacy, but it’s brave lunacy.”
The solution is pay the bills, rework the debt, get more revenue, and figure out property tax honesty.
Sheesh, lol
=== They offered very little opinion on how to fix this mess without soaking taxpayers.===
Even under the correct system, the rates aren’t covering what they should be at.
=== Raising $3.4 billion in a progressive income tax and allocating $200 million to the pension===
So… (licking prick, getting scratch paper) … you’re a “no” on the progressive income tax. Is that it?
=== Porter’s idea is much braver than that.===
You and my “in-law uncle” would get along swimmingly.
“No. Anything wholly unworkable, unconstitutional, even silly-kooky… that works for me… “
Do the doable.
Pay the bills.
- Bashoooka - Thursday, Feb 6, 20 @ 4:32 pm:
==It’s brave to propose not paying your debts?==
Sometimes it is. Remember everyone telling the government to let the banks fail in 2009? Those OWS activists felt brave for proposing bankruptcy.
The person to tell Detroit that it needed to declare bankruptcy was probably brave. Ditto for Stockton, California and San Bernardino and Jefferson County.
Sometime you need to recognize failure and start over.
- Sue - Thursday, Feb 6, 20 @ 4:33 pm:
What a freaking idiot. First of all no State has the legal ability to utilize the bankruptcy code- second Illinois is an outlier not even permitting municipal bankruptcy. The guy is an embarrassment to anyone aiding with conservatives of republicans
- Rich Miller - Thursday, Feb 6, 20 @ 4:34 pm:
===They offered very little opinion on how to fix this mess without soaking taxpayers===
Taxpayers got a big break for decades because the pension bills weren’t being paid. The bill has come due.
- Bashoooka - Thursday, Feb 6, 20 @ 4:36 pm:
==Taxpayers got a big break for decades because the pension bills weren’t being paid. The bill has come due.==
Then why is only 5.8% ($200 million) of the new $3.4 billion progressive income tax being spent on paying down the pensions?
- Oswego Willy - Thursday, Feb 6, 20 @ 4:37 pm:
Anytime you cite “Detroit” when referencing Illinois or Chicago… you are clueless to even what that shakes out in the reality of your example, and in comparison(s) too
You can’t be taken seriously, as you have no serious idea how that isn’t at all smart.
- Oswego Willy - Thursday, Feb 6, 20 @ 4:39 pm:
=== Then why===
That’s a policy question you can ask the governor.
That’s how policy works.
Also, the bill is due, the Edgar Ramp is part of that answer.
The ramp is a long term thingy, take that context when deciding how to respond.
- Jocko - Thursday, Feb 6, 20 @ 4:39 pm:
==Maybe the solution is to have ALL Illinois residents on the public payroll==
Or, I don’t know, maybe propose a graduated income tax?
- Grandson of Man - Thursday, Feb 6, 20 @ 4:48 pm:
“Is the purpose of government to collect taxes to pay people who have the status of government workers so they can stop working in their 50s and live the rest of their lives in comfort? Is that the purpose of government?”
Says someone who works in the interests multimillionaires and multibillionaires. This is what class warfare looks like, when the richest and their agents seethe at middle class protections. Bruce Rauner spent almost $100 million to tear down unions and their rights.
But good luck getting anywhere with this message in Illinois, after the last governor got politically wiped out in his union war.
- ajjacksson - Thursday, Feb 6, 20 @ 5:49 pm:
Public employees are taxpayers.
- low level - Thursday, Feb 6, 20 @ 6:30 pm:
Radical proposal. I thought these were conservatives?
- Candy Dogood - Thursday, Feb 6, 20 @ 6:33 pm:
Our unfunded pension liability is what, $140 billion rounding up?
Our GDP in 2018 was ~865 billion?
You ever hear of someone declaring bankruptcy for debts that are about 16% of their annual income?
- anon2 - Thursday, Feb 6, 20 @ 7:12 pm:
Maybe Porter should lead the drive the next time Con-Con comes up on the ballot, which I think is 2028. He can float his plan and see how well it fares at the ballot box.
- revvedup - Thursday, Feb 6, 20 @ 7:14 pm:
Some have suggested Mr. Porter is under the influence of marijuana; I submit he has taken far, far stronger meds. Nobody else should take them. He might as well sing “To Dream the Impossible Dream”.
- Roman - Thursday, Feb 6, 20 @ 8:23 pm:
Sprinkling ferry dust on the problem might have a better chance of success. Why?:
Article 1, Section 10 of the United States Constitution:
No State shall pass any Law impairing the Obligation of Contracts
- Law Man - Thursday, Feb 6, 20 @ 10:11 pm:
Was this loony elected?
- Blue Dog Dem - Thursday, Feb 6, 20 @ 10:54 pm:
Candy. Sounds so simple. But kicking the can and raising taxes is just that.
- Rich Miller - Friday, Feb 7, 20 @ 12:17 am:
===But kicking the can and raising taxes is just that. ===
One must follow the other. It’s math.
- Richard - Saturday, Feb 8, 20 @ 4:32 pm:
Hey guys — just saw this and reading the comments — with a smile.
Here’s our economic reality: liabilities are rising faster than revenue, taxes are and will keep going up until liabilities are reduced, so population is falling, as population falls property values fall, which increases the burden of taxes and will exacerbate the trend. We are in a financial spiral — and government is increasingly obsessed with paying its creditors not taking care of people and creating opportunities for its citizens. See for example https://www.google.com/amp/s/www.pjstar.com/opinion/20191009/richard-porter-illinois-must-do-better-to-serve-powerless%3ftemplate=ampart
So the question we all need to face is: what are we going to do to make Illinois work for people again? We are losing the competition among states for population and opportunity— how do we become a growth state, a state people are coming to instead of leaving?
This isn’t partisan— it’s about surviving and thriving.
Chapter 9 is the federal law that allows municipalities to reorganize their liabilities and return to a sustainable financial posture that attracts future residents.
There is no corollary for States. The Congress set up a special Board to restructure Puerto Rico — but that doesn’t appear to be going so well. And our problems and the size of our economy are many multiples of PR
The US Constitution has two provisions in Article IV that are the basis for how the Feds resolve and restructure states — and it has done that before: the Southern states were remade in Reconstruction after the Civil War.
Here they are for those that are interested:
New States may be admitted by the Congress into this Union; but no new State shall be formed or erected within the Jurisdiction of any other State; nor any State be formed by the Junction of two or more States, or Parts of States, without the Consent of the Legislatures of the States concerned as well as of the Congress.
The United States shall guarantee to every State in this Union a Republican Form of Government…
A Republican Form of Government is of course a government of the people, by the people and for the people. A government being run for the benefit of creditors is a government for creditors…
Anyway, any state resolution will involve the Feds because there is no current law, altho the Feds have the power (actually, it’s a duty!) to assure that a State doesn’t fail.
The process for forming a state is actually pretty straightforward: the legislature by a simple majority passes a new constitution and petitions Congress to be admitted. See for example the formation of West Virginia. The statute to admit the new state would have to provide for a process for resolving the debts of the old state, winding it down, but at least then it would be a side show playing out before some board instead of the daily reality for the people living here
Clearly, there needs to be a functioning majority of legislators that are committed to serving people instead of creditors — and to making our state (new or old) a place people are moving to. We don’t have that yet.
But we will eventually… and when we do, there are actually many legal options for fixing the state. My point with the presentation is to get folk to understand that we actually have a variety of options, once we have the political will, and that while no one is talking about them yet, there’s more than one way around the barn
Too many folks are defeatist and act as if nothing can be done. This is ridiculous! These are all man made problems, and what we screw up, we can fix!
Thanks for your interest… and pls excuse typos, as just thought I would respond on my phone as I wait for my car…
- Da Big Bad Wolf - Friday, Feb 14, 20 @ 9:06 am:
Richard how will a new state reduce liabilities? 3/4 of state workers reside outside of the Chicago metro area so any pensions owed to them will have to be paid by the new state.
- Anonymous - Friday, Feb 14, 20 @ 10:03 am:
Btw, Congress could also empower a tribunal to adjust Illinois liabilities directly — it has the power to do so under Article I and, as the financial crisis worsens and the government increasingly focuses on servicing creditors (and people keep leaving and property values fall), the OBLIGATION to do so under the guaranty clause of Article IV. My only point in floating the new state alternative is to suggest that there may be a path to making things better faster for our residents, while the details of a reorganization and reduction of liabilities is worked out on the side — which, no matter how you do it, will be a painful process.