Rauner as Governor (Chicago, Worth, Viola: compensation, wealthy, estimated)

[nearnorth]

Originally Posted by rzzzz

Look I know that, but privatizing public services is a tactic lifted from the Republicans.

Exactly. It's now the agenda of both parties to make the rich people who fund them even more rich at the expense of the middle class. We have two conservative parties in this country, even if one conservative party has convinced its base that the other conservative party are socialists.

[NealIRC]

So that link MSchemist80 posted earlier listed states with no state income tax, such as Florida.

I currently work for a company headquartered in California, and my boss is from Florida, and that's how I found out years ago about Florida not having any state income tax.

How does Florida get it's money, I asked? Property taxes, he says.

So, pensions are causing Illinois government to be broke. Assuming that was the case, pensions aren't really unique to Illinois, are they? Aren't pensions in all the other states of the world? I was looking for something more unique to Illinois.

In that case, cut the pensions starting from the biggest pensions, going downwards, and wouldn't that be the solution?

[MSchemist80]

Partially the pensions were overgenerous but also partially the politicians robbed money from them rather than fund and invest the money. It is like you keep taking money out of a 401K not only do you lose the money in the 401K you lose the accruals and interest the funds would have earned and the interest on the interest until now you owe so much money to cover all that it is impossible to pay.

[LeotheOrangeCat]

Originally Posted by NealIRC

So, pensions are causing Illinois government to be broke. Assuming that was the case, pensions aren't really unique to Illinois, are they? Aren't pensions in all the other states of the world? I was looking for something more unique to Illinois.

The Illinois constitution provides state pensions are contracts that may not be "diminished". So any law cutting pensions may be unconstitutional.

The governor and legislature did pass a law this summer that would reduce future state contributions and the accrual of future benefits. However, an Illinois court issued an injunction that prevents the law from taking effect until its constitutionality is determined by the courts.

The cuts in the pending law are not enough to fix the situation, but if the law is ruled unconstitutional . . .

[NealIRC]

Ah, I remember that. My Dad was disappointed with the governor over that I think. He's retired from the city colleges, and has a pension of $64,000 a year with his retirement from 1999, which at that time, was the largest in the city colleges.

So despite Illinois having so many expensive taxes, it must have some of the best pensions in the country! Which doesn't mean much for people no where near retirement.

Still, I think there's something about Illinois that makes it broke compared to all the other states...

[LeotheOrangeCat]

I just read an article that quotes one of my former law professor's as saying the law passed this summer is "as dead as a door nail".

Since last summer the IL Supreme Court held that the Constitution's "pension clause" invalidated a law relating to the funding of state retiree healthcare benefits. Basically, if the law that was invalidated was unconstitutional the past summer's pension law is really unconstitutional.

Maybe a constitutional amendment?

[MSchemist80]

It is also the inefficient nature of government on Illinois with 866 school districts, county village and township governments,other independent bodies with taxing authority many with overlapping functions.

If Illinois was a business the execs would sit down and figure why do we need 3 separate HR department, 4 accounting departments, 5 shipping departments etc and consolidate everything in the most efficient way possible. In Illinois the government just demands more money or else we won't have schools, police, and fire departments... oh think of the children!

It would be like me cashing out my 401K, going on a high end shopping spree, racking up a million in debt then marching into my boss's office and demand they give me a raise.

Me: I need a raise or I'll starve to death and have to come to work naked.
Boss: Can't you live within your means and budget?
Me: That's crazy talk! That makes no sense!

[MSchemist80]

Originally Posted by LeotheOrangeCat

I just read an article that quotes one of my former law professor's as saying the law passed this summer is "as dead as a door nail".

Since last summer the IL Supreme Court held that the Constitution's "pension clause" invalidated a law relating to the funding of state retiree healthcare benefits. Basically, if the law that was invalidated was unconstitutional the past summer's pension law is really unconstitutional.

Maybe a constitutional amendment?

When things really get dire the Feds will have to direct Illinois to get its excrement together and either work out a bailout like Greece or allow Illinois to declare bankruptcy. I know the states can't declare bankruptcy but what happens when the state literally cannot pay its bills or borrow money? We are almost already at that point as the state is deciding which bills to pay and delaying other ones while continuing to borrow money.

It really is a pathetic state of affairs and I think most of the Democrats that have led this state for the past 15 years should be thrown in prison and the rest banned from ever holding office again.

[nearnorth]

Originally Posted by LeotheOrangeCat

The Illinois constitution provides state pensions are contracts that may not be "diminished". So any law cutting pensions may be unconstitutional.

You shouldn't need the constitution to tell you that. Pensions are part of employment compensation. Cutting pensions is no different than denying someone their paycheck after they've done the work that was agreed upon. You don't get to do that just because you realize in hindsight that you agreed to pay them too much.

[rzzzz]

The pensions themselves aren't the main problem, it's that Illinois didn't pay enough into them. They are only half funded.