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* CBS 2…
Rauner invited members of the media to Springfield for one-on-one interviews. He wanted to talk about, among other things, the enormous challenge facing Chicago’s budget and what happens if the city’s pension liabilities become too much to bear. […]
CBS 2’s Rob Johnson pressed Rauner on whether bankruptcy is a viable option, if public pension costs cannot be tamed through legislation. Rauner’s proposals include making the option legal for Illinois communities.
“Many other states have allowed local governments to decide whether they need to declare bankruptcy,” Rauner tells Johnson. “Bankruptcy law exists for a reason. It’s allowed in business so that businesses can get back on their feet and prosper again by restructuring their debts.” […]
Mayor Rahm Emanuel’s office issued a statement that said balancing the state budget on the backs of the local governments is itself a “bankrupt” idea. Rauner has proposed sweeping cuts in state assistance that have angered local officials.
* And he drove that point home again yesterday when talking about the Chicago Public Schools…
“The state has a crisis, the city has a crisis. I’m concerned that [CPS] is going to have to go bankrupt,” he said during a moderated discussion at a Chicago Public Education Fund luncheon. “Bankruptcy code exists to help the organization get out of financial trouble. There’s a reason for the bankruptcy code.”
Then he told the sympathetic audience – which minutes later gave him a standing ovation – that unions are partly to blame for why municipalities and school districts in Illinois can’t file for bankruptcy in order to renegotiate debt.
“Insiders in our system currently have made bankruptcy in government units illegal because some people never want to restructure contracts – contracts brought into place through insider deals,” said Rauner, who also advocated for right-to-work zones.
* React…
“The municipal bankruptcy bill is not currently moving in Springfield,” [Mayoral spokeswoman Libby Langsdorf ] said. “The governor’s suggestion is not part of our plan. Instead of proposing to solve the state’s fiscal crisis on the back of local governments, he should be working to ensure that Chicago, the biggest economic driver in the state, gets back on sound footing.” […]
Chicago Board of Education member Carlos Azcoitia said the district meanwhile is “taking measures to be able to prevent [bankruptcy] and be able to get our house in order,” adding that the district and Rauner agree that pensions should be reformed. “But I don’t see bankruptcy as any solution, and it’s not going to happen,” Azcoitia said.
Afterward by telephone, Chicago Teachers Union President Karen Lewis denounced Rauner’s bankruptcy suggestion, saying “to throw the entire system into chaos, financial chaos is irresponsible.”
Calling the governor “basically a robber baron,” engaged in “union busting,” Lewis wondered “how much respect does Bruce Rauner have for people who walk away from their debts, for regular, ordinary people who walk away from their debts?”
“I’m sure he has special names for them: deadbeats.”
posted by Rich Miller
Wednesday, Apr 15, 15 @ 9:31 am
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As I said the other day, Rauner’s a one trick pony. All he knows is how to shed debt using bankruptcy.
Comment by RNUG Wednesday, Apr 15, 15 @ 9:40 am
Rauner made his money by;
Liquidating assets
Filing for bankruptcies.
Many, many people pointed this out here. Many.
The fact Mr. Rauner sees bankruptcy as the way elected leaders find solutions is scarier than Mr. Rauner just admitting “Yeah, I got nuttin’…”
How embarrassing. Rauner’s leadership is admitting bankruptcy IS the answer.
Mayor Sandack understood what The Owl Sandack wants is really dangerous and really ignorant.
When Ron Sandack is told what the counter points are, he’ll feign independent thought on bankruptcy.
Comment by Oswego Willy Wednesday, Apr 15, 15 @ 9:40 am
“prosper again by restructuring their debts” Can’t debts be restructured without bankrupcy?
Comment by Skeptic Wednesday, Apr 15, 15 @ 9:42 am
Rauner (vulture capitalist) assumes Chicago is no different from the businesses he forced into bankruptcy while he profited.
Comment by Wensicia Wednesday, Apr 15, 15 @ 9:43 am
And we wonder why bankruptcy is so popular among the financial class ….
You have to wonder how the election would have turned out had he been forthright and said that the grand plan is to stiff retirees, current employees, and people who do business with units of government.
Comment by The Way I See It Wednesday, Apr 15, 15 @ 9:44 am
Rauner certainly is an expert on bankruptcy.
Although in two years of campaigning he did not and could not name one successful company he backed, there were at least a dozen identified that he took into bankruptcy during his bustout schemes.
Rauner wants muni bankruptcies so they can walk away from pension liabilities and bust unions.
The fact that it would trash the state and its munis credit ratings for years apparently is not a concern to the ideological social agenda.
Comment by Wordslinger Wednesday, Apr 15, 15 @ 9:44 am
Five years ago, some of us were terrified we might end up with Bill Brady as Governor. The joke is on us, isn’t it? Rauner’s made Brady look like a liberal.
Comment by Gooner Wednesday, Apr 15, 15 @ 9:45 am
With all due respect, the headline really ought to read “Rauner cheering for CPS bankruptcy”. I don’t know if he’s a one-trick pony or a nihilist, but the result is the same. We really need better from the governor.
Comment by Toffee Wednesday, Apr 15, 15 @ 9:46 am
Oh boy, give me a break. CPS did not make a single payment to their pension fund for an entire decade. That is why the fund is in trouble. The state may have not put in what they are supposed to for decades, but they would always pay at least something. The fund is in trouble not because of some mysterious “corrupt bargain”, it’s in trouble because at least in terms of finances, Daley in retrospect did some pretty terrible things.
Comment by Juice Wednesday, Apr 15, 15 @ 9:47 am
Pathetic what passes for conservatism these days.
Pay the damn bills, Governor. You may have gotten rich by walking away from debts and unloading liabilities on unsuspecting seniors, but it’s no way to run a state.
Comment by Anonymous Wednesday, Apr 15, 15 @ 9:50 am
Aren’t CPS bonds close to junk status now? If they declare bankruptcy, they’re going to have to borrow from a guy that says ‘vig’ instead of ‘interest rate’ and uses kneecaps as collateral.
Comment by Century Club Wednesday, Apr 15, 15 @ 9:54 am
Praise the gods for Karen Lewis. AFSCME needs a Karen Lewis.
Comment by Politix Wednesday, Apr 15, 15 @ 9:55 am
Question: Bankruptcy isn’t a complete get out of jail free card is it? Aren’t we talking about federal bankruptcy where a judge or a special master looks at debtor’s income and liabilities and then decides for the debtor what he’s going to owe to whom? If the legislature can “make” money by raising taxes, couldn’t the bk court just tell them to do it or be in contempt?
Comment by anon Wednesday, Apr 15, 15 @ 9:57 am
Spot on, Century Club. The mere fact that the governor insists on blithely endorsing bankruptcy in this context is enough to spook the credit agencies. Breathtakingly poor judgment.
Comment by Urbs In Horto Wednesday, Apr 15, 15 @ 10:04 am
==If they declare bankruptcy, they’re going to have to borrow from a guy that says ‘vig’ instead of ‘interest rate’ and uses kneecaps as collateral.==
JP Morgan Chase?
Comment by Toure's Latte Wednesday, Apr 15, 15 @ 10:04 am
Put your information down and take your chances….
Here’s a link to consider:
https://medium.com/@munilass/how-chicago-has-used-financial-engineering-to-paper-over-its-massive-budget-gap-872d911dd363?source=latest
Here’s just one small paragraph from within the article:
“Chicago Public Schools — which already takes more property tax revenues from Cook County than the City of Chicago — has a swap/pension nightmare of its own to muddle through. Between the city and school system, area residents are at risk of making/financing $660 million of termination payments. The payments would compete with $28.3 billion of city and overlapping debt and billions of dollars of escalating pension contributions for funding. Basically, if you are in Chicago, your property is about to become more expensive.”
Might want to read the whole article to understand just how big of a fiscal mess the City of Chicago is in. It’s a seriously deep fiscal hole.
Lady knows her stuff.
Comment by Judgment Day Wednesday, Apr 15, 15 @ 10:05 am
Some additional coverage here: http://catalyst-chicago.org/2015/04/rauner-likes-bankruptcy-to-cure-cps-financial-woes/.
Comment by Toffee Wednesday, Apr 15, 15 @ 10:06 am
Not hard to see what’s going on here — pass a bankruptcy law, and you’ve got another way to close neighborhood schools, fire the professional teachers and replace them with non-credentialed Teach for America temps. Don’t think it couldn’t be applied in downstate school districts, too.
Comment by olddog Wednesday, Apr 15, 15 @ 10:07 am
Having lived my whole life here, I still find it hard to believe a an Illinois governor is actively promoting muni bankruptcy as a “solution,” right out of the box, top of the agenda.
Those aren’t the values of a Midwestern Main Street conservative, but a Wall Street vampire hustler.
Comment by Wordslinger Wednesday, Apr 15, 15 @ 10:07 am
Toffee, that’s not “additional” coverage, it’s excerpted up top.
Comment by Rich Miller Wednesday, Apr 15, 15 @ 10:08 am
Seems to me that the pension funds are in trouble because long term promises were made that the taxpayers are unwilling or unable to keep. Demonizing the governor, the pension boards, the unions and whoever else was involved when the promises were made and accepted is counter productive.
The bottom line is that most pensions are not generating the income needed for future sustainability and the situation is deteriorating as everyone kicks the can into court or the punditry arena.
The taxpayers cannot solve this problem. And any court order or attempt to raise taxes to get money from the taxpayers may result in a short term fix, but the pain will result in elections of officials who will support the taxpayers, including, perhaps, a state constitutional crisis involving executive refusal to obey court orders.
The longer all this jousting continues, the larger the damage to current and future pensioners.
Comment by Cook County Commoner Wednesday, Apr 15, 15 @ 10:12 am
Wordslinger; Thank you for,”Wall Street vampire hustler”.
Comment by tobor Wednesday, Apr 15, 15 @ 10:18 am
“Question: Bankruptcy isn’t a complete get out of jail free card is it? Aren’t we talking about federal bankruptcy where a judge or a special master looks at debtor’s income and liabilities and then decides for the debtor what he’s going to owe to whom? If the legislature can “make” money by raising taxes, couldn’t the bk court just tell them to do it or be in contempt?”
————-
When you are in bankruptcy court, the judge rules. As far as i can tell (very limited information to date), never have had a court order the legislature to raise taxes. I’m assuming it could happen, but would assume that the bankruptcy court would instead ask for reorganization plans from the different interested parties, and among the competing parties might be some inclusion of proposed tax increases.
Court really wouldn’t ‘order’ taxes to be raised, he/she would just accept the proposed bankruptcy reorganization plan.
Bankruptcy is nowhere near a ‘Get out of jail free’ card. The entire existing power structure gets to play second fiddle to the bankruptcy court. It’s all about the competing reorganization plans.
Comment by Judgment Day Wednesday, Apr 15, 15 @ 10:18 am
“The state has a crisis, the city has a crisis. I’m concerned that [CPS] is going to have to go bankrupt,” he said during a moderated discussion at a Chicago Public Education Fund luncheon. “Bankruptcy code exists to help the organization get out of financial trouble. There’s a reason for the bankruptcy code.”
How about telling us something we didn’t know before we voted YOU into office to fix it?
I bet Governor Rauner wishes Illinois had a governor who could get it through these tough times without unconstitutional or illegal actions that could permanently damage it.
He remembers his history, right? Does anyone recall FDR or Hoover, Truman, Eisenhower or Nixon talking about leading us into packing it all in, or even discussing it?
I’m tired of this guy bashing Illinois with his calculated pessimism.
Comment by VanillaMan Wednesday, Apr 15, 15 @ 10:19 am
Pension funds are not in trouble because long term promises were made that the taxpayers are unwilling or unable to keep. Where have you BEEN? Pension funds are in trouble because although employees contributed with every paycheck to their retirement fund, the legislature either shorted their end of the contribution or skipped it altogether. Let’s get the facts straight. Taxpayers benefitted from that stolen money by not having their taxes raised to pay for all they wanted. If you think the pension fund structure is a problem, then you need to research IMRF. By law, IMRF cannot stiff it’s workers and so a payment has never been “diverted” away from it’s intended recipients. IMRF is funded at over 90%—-it weathered the financial downturn just like every other pension fund did. It’s recipients get 13 checks per year, it’s doing so well. Don’t talk about promises. The constitutional amendment was put into the constitution, approved by taxpaying voters–exactly for the situation we have now. A bunch of weasel cheapskate crooks who’d like anyone but them to pay. As long as I got mine, right?
Comment by AnonymousOne Wednesday, Apr 15, 15 @ 10:22 am
Bankruptcy is what one files when debts cannot be fully “restructured,” and must be at least partially abandoned.
Typical weasel words from Rauner and his ilk, to call reneging on contracted obligations “restructuring.
Comment by walker Wednesday, Apr 15, 15 @ 10:23 am
Second the thumbs up on “Wall Street vampire hustler.” Missing the days when people like Charles Percy and Nelson Rockefeller–not to mention Eisenhower–represented the Republican party. Sigh.
On another note: glad to see Karen Lewis is still kicking–may she live long and prosper.
Comment by Crispy Wednesday, Apr 15, 15 @ 10:32 am
I’ve now reached a point where I have no idea how anybody can support the Governor. He’s gone completely off the reservation.
Comment by Demoralized Wednesday, Apr 15, 15 @ 10:43 am
One thing to consider. If it’s eventually going to go belly up because we truly have kicked the can too many times to ever catch up on our debt, why deliver painful tax hikes for 3 or 4 years only to get voted out of office by a public willing to use BK as a solution? Quinn tried this and his legacy of making the proper pension payments may have cost him the election and get undone this year or next year by Rauner who is offering the voters pain free debt relief via BK.
Comment by Nebraska Bill Wednesday, Apr 15, 15 @ 10:56 am
It’s really weird that the putative “conservative” party thinks the government should have the power to unilaterally break its contractual obligations.
Comment by Arsenal Wednesday, Apr 15, 15 @ 10:57 am
He’s a new governor and the bankruptcy comment was a rookie comment. Why bring it up? Learning the job means learning when to keep quiet. First, we need to hear from Rahm Emmanuel, newly re- elected by a nice margin by the voters of Chicago, who well know the city’s finances are in trouble. Mayor Rahm, no dummy he, would love to make this Rauner and the state of Illinois’ problem. But first we need to hear Mayor Rahm’s plan. And that plan is very likely going to include a property tax increase on those citizens, so many of whom voted for him. But he needs to say it.
Comment by Cassandra Wednesday, Apr 15, 15 @ 11:01 am
===He’s a new governor and the bankruptcy comment was a rookie comment===
No, it wasn’t. He’s said it time and time again. It’s in his Turnaround Agenda ™. He’s a true believer.
Comment by Rich Miller Wednesday, Apr 15, 15 @ 11:02 am
Cassandra, muni bankruptcy is a Rauner goal, not a rookie mistake.
It’s hard to believe, but it’s a top priority of his right now.
Comment by Wordslinger Wednesday, Apr 15, 15 @ 11:04 am
[clap]@AnonymousOne 10:22 am [/clap]
Comment by PublicServant Wednesday, Apr 15, 15 @ 11:10 am
===… Rauner who is offering the voters pain free debt relief via BK.===
“BK”, lol.
Nothing is painless about public bankruptcy, and since the Tournaround Agenda needs it to pass, it seems less and less an option for munis.
My point?
Only those profiting off “BK”s (lol) see bankruptcy as a solid way to go. Since government bodies aren’t driven by profits, who wins? Further, thinking win/loss in governing and cost of services and “BK” (lol), that’s not the role of government. There’s one of the disconnects.
Comment by Oswego Willy Wednesday, Apr 15, 15 @ 11:13 am
It should be noted that in the Forbes mash note on the other thread, Rauner is quoted that Chicago will go bankrupt as well because of “the unions.”
The rating agencies and buyers of Illinois debt will certainly note and take into account the governor’s active promotion of adding the risk factor of bankruptcy — one that does not exist now.
That added risk, quite logically, will cost taxpayers in the muni market.
Comment by Wordslinger Wednesday, Apr 15, 15 @ 11:17 am
busting the state and muni bond ratings is all part of the plan.
Lower ratings mean higher interest rates, which means more profit to go around for Rauner and his buddies.
Comment by jerry 101 Wednesday, Apr 15, 15 @ 11:23 am
Juice - As I recall, CPS made the payments to the pension fund that were required by law.
Those legally required payments were well below the ARC (actuarially required contribution or something like that).
The law in question was something Daley asked Springfield for something like 20 years ago so that CPS wouldn’t have to raise property taxes to make pension payments.
He asked for the same thing for the City pension plans.
At the end of the day, Chicago’s fiscal situation is Daley’s fault.
Just like the Ramp is the cause of the state’s current pension underfunding problem.
Back in the 90’s, no one wanted to raise taxes to pay for the promises being made. Now Illinois is paying the price.
Comment by jerry 101 Wednesday, Apr 15, 15 @ 11:27 am
The Way I See It - Wednesday, Apr 15, 15 @ 9:44 am:
And we wonder why bankruptcy is so popular among the financial class ….
You have to wonder how the election would have turned out had he been forthright and said that the grand plan is to stiff retirees, current employees, and people who do business with units of government.
He was forthright and said it on multiple occasions. The people who blindly voted for him because A. he wasn’t Pat Quinn and B. the Republicans saw the chance to capture the Governor spot again. C. Rauner and his financial buddies threw money at Republican candidates and had them primaried or just plain scared the crap out of the incumbents who acquiesced to Rauner’s wishes.
Comment by NewWestSuburbanGOP'er Wednesday, Apr 15, 15 @ 11:33 am
Would it be considered insider trading, if Bruce or his company divested of any of their holdings in Illinois municipal bonds/securities in the last two or so years, fully knowing that Bruce intended to run for governor and fully intended to allow Illinois municipals to fill bankruptcy??????
Comment by Anonymous Wednesday, Apr 15, 15 @ 11:53 am
==== Politix - Wednesday, Apr 15, 15 @ 9:55 am:
Praise the gods for Karen Lewis. AFSCME needs a Karen Lewis.====
Yeah, let’s do that. It’s an alternate universe today.
Comment by A guy Wednesday, Apr 15, 15 @ 11:54 am
== Toffee, that’s not “additional” coverage, it’s excerpted up top ==
Sorry, poor reading comprehension on my part.
Comment by Toffee Wednesday, Apr 15, 15 @ 12:11 pm
Maybe it is time for the Mayor and City Council to step up and present their plans. They based a candidate for not having a plan. What IS their plan? A Springfield bailout? No money there.
With the current system failing, what is the solution here?
Comment by Louis G. Atsaves Wednesday, Apr 15, 15 @ 12:13 pm
I think it’s more he’s looking forward to CPS going bankrupt than he fears it.
Comment by Cheryl44 Wednesday, Apr 15, 15 @ 12:18 pm
“Yeah, let’s do that. It’s an alternate universe today.”
I dunno, dude, it’s really hard to argue that she hasn’t been good for CTU. I guess if you don’t want AFSCME to prosper…
Comment by Arsenal Wednesday, Apr 15, 15 @ 12:19 pm
The State aided and abetted the decline of the pension fund by approving a decade-long pension “holiday” at Daley’s behest. Maybe someone should ask Daley what his solution is, since he created the crisis. Or ask Madigan and Cullerton who supported the holiday
Comment by nona Wednesday, Apr 15, 15 @ 12:20 pm
To Rauner, bankruptcy is preferable to the City boosting its lowest-in-the-state property taxes. Just like the state killing the Autism program and funding for kids on ventilators is preferable to raising the income tax to 4.5%. At least he’s consistent and got his priorities in order!
Comment by nona Wednesday, Apr 15, 15 @ 12:24 pm
===Arsenal - Wednesday, Apr 15, 15 @ 12:19 pm:
“Yeah, let’s do that. It’s an alternate universe today.”
I dunno, dude, it’s really hard to argue that she hasn’t been good for CTU. I guess if you don’t want AFSCME to prosper…===
Ars, in a courtesy manner I’d have that argument in a minute. In what manner is CTU prospering?
Comment by A guy Wednesday, Apr 15, 15 @ 12:29 pm
Many people might not like what Governor Rauner has to say but the real world of finance is here. CPS debt looks like it is going to be downgraded to junk within the next 60 days. With Chicago losing population , a law allowing a Chapter 9 filing has to be discussed. Chicago voters have voted over the decades for taxes, public pensions, and unions that don’t add up in 2015.
Comment by Steve Wednesday, Apr 15, 15 @ 12:31 pm
While Chicago has lost population, CPS is losing student population much slower. That’s because a lot of families in CPS can’t afford to move.
Now Rauner makes no secret that he champions charter schools and in the real world of finance that makes no sense. They just built two new charters this year directly across the street from public schools. When you fund a business and it’s competitor directly across the street from it, you’re not exactly thinking rationally.
Comment by Carhartt Representative Wednesday, Apr 15, 15 @ 12:40 pm
Rauner’s publicity seems like a stunt to show the Illinois Supreme Court the consequences of a bad pension decision. It’s ironic that state pensions may get saved at the expense of local ones. Like it or not Rauner’s publicity around his Tunaround Agenda has made municipal bankruptcy, BK, debt rightsizing, a political issue at all levels of government in Illinois for the foreseeable future.
Comment by Nebraska Bill Wednesday, Apr 15, 15 @ 12:43 pm
===Rauner’s publicity seems like a stunt to show the Illinois Supreme Court the consequences of a bad pension decision.===
Following the Constitution = bad decision.
Um, ok. lol
===Like it or not Rauner’s publicity around his Tunaround Agenda has made municipal bankruptcy, BK, debt rightsizing, a political issue at all levels of government in Illinois for the foreseeable future.===
“BK” lol, how cool!
It can be an “issue” for as long as it wants. Won’t pass, but it’s an issue.
“BK”… Dope
Comment by Oswego Willy Wednesday, Apr 15, 15 @ 12:49 pm
CPS’ “legally required contributions” for about the last decade have been zero, zip, nada as allowed by a Daley-era pension holiday bill as mentioned elsewhere.
Further, the Chicago Teachers’ Pension Fund has misspent for years and years a State contribution (cumulatively in the hundreds of millions of dollars) intended for pensions on healthcare subsidies. The latter practice also likely violates Federal Tax Law.
Let’s get this mismanaged mess out into the public light.
Comment by Arthur Andersen Wednesday, Apr 15, 15 @ 12:50 pm
There is a real cost to a municipal bankruptcy that is being ignored. Yes, borrowing costs will increase after a bankruptcy because the risk of not getting paid has to be factored into the investment equation. That costs the municipalities money.
But if the bankruptcy is ued to gut pensions, good luck hiring people with the former promise of “we won’t pay as well as private companies but you will have a good and secure pension.” Make that a lie through bankruptcy and you will have to pay people more to get them to take municipal jobs. Otherwise, only the unemployable will take municipal jobs. And that’s not good for the common good.
Comment by Concerned Wednesday, Apr 15, 15 @ 12:50 pm
What’s this? Chicago Public Schools under Federal Investigation?
Comment by Louis G Atsaves Wednesday, Apr 15, 15 @ 12:57 pm
OW - maybe you should change your name to Ostrich Willy?
Comment by Nebraska Bill Wednesday, Apr 15, 15 @ 12:57 pm
Nah, my name is fine, thanks.
So, not following the Constitution is what’s needed?
Muni bankruptcy will pass, as Rauner wants it?
Good luck.
Comment by Oswego Willy Wednesday, Apr 15, 15 @ 1:01 pm
Just to make this more interesting, the CPS issued a vague statement a few minutes ago indicating that “Federal authorities are investigating a matter” there.
Comment by Arthur Andersen Wednesday, Apr 15, 15 @ 1:06 pm
Under bankruptcy law, the credit card companies ammended the act to require all extra assets above bare minimium be used to pay back debt, unstead of discharging it.
If we follow the true bankruptcy code then governments should be required to raise taxes to use all available revenue sources to pay their debt before they can discharge it or write it off. Also, enron was not able to avoid its actions with bankruptcy. If a governemnt raided retirments funds by not making the contributions, they should be batred from bankruptcy and held to criminal misconduct and abuse of office.
Afterall if we are doung the treat govt like the prvt sector, then lets do it all the way including what happens when you taid money from retirments by redirecting the contributions
Comment by Ghost Wednesday, Apr 15, 15 @ 1:09 pm
One benefit of permitting CPS and any other Illinois governmental body to access the bankruptcy process would be that a federal Bankruptcy court would objectively determine whether the “impairment clause” could be voided in a bankruptcy filing. Absent pension reform/relief, there is no hope that either Chicago’s or Illinois’ fiscal situation will improve. Federal courts have held that pension obligations protected by state constitutions identical to the Illinois clause can be reduced as part of a bankruptcy proceeding. Perhaps not this year but 5 years down the road, Chicago is going to have to seriously look at a reorganization because there is no way property taxes will be able to be increased sufficiently to pay for the past pension promises. Once the Illinois Supreme Court voids the 2014 pension reform law, Chicago will see the wisdom of a Chapter 9 filing
Comment by Sue Wednesday, Apr 15, 15 @ 1:11 pm
Rauner: Meeks thanks for helping gey me elected. After you gut the retirments ofnteachers working in cps ill see ifnu can help out. Meanwhile please fund enclosed some cake to pass out to the little people…..
Comment by Ghost Wednesday, Apr 15, 15 @ 1:19 pm
Hey AA- If the CPS pension system is diverting $$ for health care subsidies- it is an absolute violation of the IRC. Pension funds can only be used for the exclusive purpose of paying pension benefits- The IRS has consistently ruled that utilizing any pension funds once they have been deposited into the Fund for health care or any other purpose violates the exclusive purpose rule and is unlawful. Any such diversion can be a basis for Plan disqualification. If what you say is accurate and you want the practice stopped, contact the IRS
Comment by Sue Wednesday, Apr 15, 15 @ 1:28 pm
nona -
The “holiday” approved during the tenure of Governor Jim Edgar, Senate President Pate Philip, and House Speaker Lee Daniels - Republicans all.
Comment by Anyone Remember Wednesday, Apr 15, 15 @ 1:39 pm
“In what manner is CTU prospering?”
By most accounts, they got the better of contract negotiations and have definitely maintained a united, energetic front. They couldn’t get the big trophy they wanted (’cause Garcia was clearly an imperfect vessel for their ambition) but they pulled off some good wins in the Aldermanic races.
Bottom line is, the rank-and-file is extremely happy with Lewis, and I credit them with knowing what they want better than anyone else.
Comment by Arsenal Wednesday, Apr 15, 15 @ 2:30 pm
=== Juice === “The state may have not put in what they are supposed to for decades, but they would always pay at least something.”
Not ALWAYS … unless you consider a recess part of always!
Comment by forwhatitsworth Wednesday, Apr 15, 15 @ 2:49 pm
=== Arsenal - Wednesday, Apr 15, 15 @ 2:30 pm:===
Ars, I’ll give you a second shot at this. That answer was really weak sauce. They couldn’t get the big trophy they wanted because the people of Chicago don’t believe they’re about the students. They’re about themselves. They’ve blown every policy debate there was. Closing schools was not about kids crossing gang territories; it was about maintaining jobs in buildings 70% empty. That’s why they lost. There is no perfect vessel to carry their message. They’re a mess. And their bombastic leader is a bigger mess of crudeness and arrogance than even Rahm was perceived to be.
They’re united around issues they can’t sell their neighbors on. That’s how you lose. Bring Karen over to AFSCME. That’s all they need just when things couldn’t look tougher. Ugh dude.
Comment by A guy Wednesday, Apr 15, 15 @ 3:04 pm
forwhatitsworth- When did the State completely and totally skip a pension payment? And we may simply be discussing semantics.
Comment by Juice Wednesday, Apr 15, 15 @ 3:28 pm
- What’s this? Chicago Public Schools under Federal Investigation? -
What’s this, Louis is bringing up something irrelevant to the fact that Rauner is in favor of using bankruptcy to solve fiscal problems?
Keep shilling, Louis, just as long as the wife keeps cashing those checks.
Comment by Anonymous Wednesday, Apr 15, 15 @ 3:29 pm
Guy, Karen Lewis was reelected with 80% of the CTU vote. Whether you think she’s successful or not, her members do.
Comment by Midway Gardens Wednesday, Apr 15, 15 @ 3:42 pm
The State NEVER completely skipped, missed, or zeroed out pension payments. They ramped, leveled, holidayed, and cut, but never outright stiffed the funds.
Comment by Arthur Andersen Wednesday, Apr 15, 15 @ 3:56 pm
AA, that’s what I thought. Even when Thompson cut them, it was “only” by half.
Comment by Juice Wednesday, Apr 15, 15 @ 4:02 pm
“Ars, I’ll give you a second shot at this.”
Hmm. Nah, I don’t need it. I stated the facts that I based my opinion on, you replied with your subjective opinions on CTU/Lewis. I’m plenty happy to let that exchange stand as is.
Comment by Arsenal Wednesday, Apr 15, 15 @ 4:02 pm
“Guy, Karen Lewis was reelected with 80% of the CTU vote. Whether you think she’s successful or not, her members do.”
Which is pretty important evidence to me; I trust CTU members to know what they need.
Comment by Arsenal Wednesday, Apr 15, 15 @ 4:03 pm
anon your question was answered in detail at a subject matter hearing held on the issue of allowing governmental entities to file for Bankruptcy. Rich linked some video from that hearing see https://capitolfax.com/2015/03/20/live-video-municipal-bankruptcy-hearing/
Comment by Rod Wednesday, Apr 15, 15 @ 4:24 pm
=== Arsenal - Wednesday, Apr 15, 15 @ 4:03 pm:
“Guy, Karen Lewis was reelected with 80% of the CTU vote. Whether you think she’s successful or not, her members do.”
Which is pretty important evidence to me; I trust CTU members to know what they need.====
Darn, and I was going to use this same argument to make the opposite point. Let’s agree they deserve one another and their on precisely the same wave length.
Comment by A guy Wednesday, Apr 15, 15 @ 5:29 pm
When do they realize that moving a pension from an entity that cannot file bankruptcy to one that can is a diminishing? So is converting an entity that cannot file for bankruptcy to one that can.
Comment by Last Bull Moose Wednesday, Apr 15, 15 @ 5:39 pm
“Darn, and I was going to use this same argument to make the opposite point.”
That only makes sense if you assume that Lewis is bad…which was the original bone of contention.
Comment by Arsenal Wednesday, Apr 15, 15 @ 8:16 pm