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* Public Radio…
The battle between Illinois Gov. Bruce Rauner and Chicago Mayor Rahm Emanuel continues after the city council voted to raise water and sewer taxes.
Emanuel wants the money to go toward underfunded city pensions. He also needs Rauner and state lawmakers to approve his plan to change pension benefits.
But Rauner is critical of the mayor’s proposal.
“My concern with the proposal so far, is they’re largely based upon re-ramping the payment schedule and slowing down the payment schedule and backloading it,” he said. “That’s what we’ve done in Chicago for decades and it’s the reason Chicago has the worst credit rating of any city other than Detroit.
OK, I get that. But, to a lesser degree, isn’t that similar to what the governor tried to do when he failed to stop the Teachers’ Retirement System from lowering its presumed rate of investment return? That was a kick the can down the road moment if there ever was one.
posted by Rich Miller
Thursday, Sep 15, 16 @ 10:50 am
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Do as I say, not as I do.
Comment by Sir Reel Thursday, Sep 15, 16 @ 10:53 am
Totally agree. However, it is worth noting that all the Chicago pension funds are using a 7.5% assumed rate of return (with the exception of the fire fund, which is 8%). And I would argue that TRS has a better chance of higher better investment returns than the Chicago funds.
Comment by My button is broke... Thursday, Sep 15, 16 @ 10:59 am
In this case, what’s good for the Goose(Bruce), is not necessarily good for the Gander(Rahm). Just another example of the stellar leadership of Gov. 1.4%./s
Comment by Big Joe Thursday, Sep 15, 16 @ 10:59 am
I imagine a future Chicago in which all the lawns are brown every summer…
Comment by Anonymous Thursday, Sep 15, 16 @ 11:02 am
I wish all voters in Illinois would read CapFax, so they can read the truth. Thanks Rich for keeping everyone on their toes and being honest about what the hell is going on in our state.
Comment by HRC2016 Thursday, Sep 15, 16 @ 11:03 am
== they’re largely based upon re-ramping the payment schedule and slowing down the payment schedule and backloading it ==
That’s pretty much the legal option that is left. If you don’t have the money or can’t raise the money you can pay, and can’t cut the benefits, this is what you do. Expect to see more of it.
At least in this case, Rahm did come up with a bit more money.
Comment by RNUG Thursday, Sep 15, 16 @ 11:07 am
The Governor is going to oppose any solution in Chicago that doesn’t involve bankruptcy and “restructuring” pension obligations (i.e. reneging on pension promises). He’s said it over and over.
Comment by Demoralized Thursday, Sep 15, 16 @ 11:08 am
You, Mr. Miller, are awesome!! There is nothing more fun than a three-dimensional chess move like the conclusion you just proposed!
What say Rauner to this simple example of his sketchy position(s)?
Comment by cdog Thursday, Sep 15, 16 @ 11:10 am
Perhaps BigBrain is P* because the Mayor declined a speakin’ role in the new movie?
Comment by Annonin' Thursday, Sep 15, 16 @ 11:13 am
The state had a $4 billion deficit last year, has an $8 billion deficit this year, and is on course to end this fiscal with $14 billion in unpaid bills — triple that of when Rauner took office.
And he lectures on fiscal responsibility?
Comment by Anonymous Thursday, Sep 15, 16 @ 11:45 am
Rahm is doing what he needs to do to raise revenue to actually pay the city’s bills. Even with the increases in taxes, water rates, and garbage rates in Chicago, they are still low compared to the collar counties. Also, the water increase will also increase Chicago revenue from water sold to suburbs. As water flows out from the Chicago pumping station to the DuPage Water Commission, $$$$ flow back to Chicago.
What has Rauner done to raise adequate state funding to pay the state’s bills?
Comment by DuPage Thursday, Sep 15, 16 @ 11:48 am
Gotta wonder how much of this is the Governor being upset with the fact that Chicago is beating him to the punch when it comes to tax increases. When he finally gets around to his, it’s going to look like he’s piling on.
Comment by GA Watcher Thursday, Sep 15, 16 @ 12:23 pm
I just love the term “big Brain” which I now use all the time. I think it was coined on this site.
Comment by Former State Employee Thursday, Sep 15, 16 @ 12:33 pm
Rahm is sort of turning into a realist while Rauner and the other goofs in Springfield keep their heads stuck in the sand.
Tax hikes aren’t fun, but they’re necessary to pay for the profligacy of the Daley administration and Rahm’s first term.
People in Chicago and in Illinois got a cheap ride for too long through underfunding pensions, selling off assets, and issuing long term bonds to pay short term costs; but eventually you gotta pay the piper.
Comment by jerry 101 Thursday, Sep 15, 16 @ 1:52 pm