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Amazing, how those who live in states like South Dakota, Wyoming and Nebraska don't have to worry about these levels of unfunded pensions.
If these states and cities have to pay out every penny of the pensions that were occured by the government workers there is no chance they can remain solvent. It is not even possible to avoid bankruptcy.
Illinois has a rapidly falling population, the home prices are extremely low overall so the property tax rates will have to skyrocket to pay for the local pensions while income taxes will have to skyrocket to pay for the state ones.
Seems like people can move next door to Indiana and have much lower taxes because Indiana is much less generous on pensions.
367 billion dollars in unfunded pensions between the state and local government and a 24% market funded ratio.
The average household would need to write a check today of 76,000 dollars to keep the pensions funded.
Last edited by lovecrowds; 01-26-2020 at 02:28 PM..
In 2013, former Governor Quinn signed landmark bipartisan legislation to give the state the power to change aspects of accrued public pensions. This was immediately challenged and made its way to the state Supreme Court who ruled that the legislation was unconstitutional.
Illinois is one of seven states with constitutional constraints.
States cannot declare bankruptcy because it can cut costs and increase tax revenues to generate the funding necessary to meet its obligations.
Of the 42 states that impose income taxes, the tax rate in Illinois is among the lowest and tied with Utah. However, when combined with property and sales taxes, it is one of the top taxing states.
Public Pensions have been underfunded for more than 70 years. For such a blue state, Illinois has had many Republican governors who, like Democrats, chose to continue to underfund and kick the can.
The state has the distinction of having two former Governors, A Republican and Democrat, in prison at the same time.
Current governor Pritzker seems confident incremental tax revenues from legal marijuana and a change from a flat to progressive tax will enable the state to meet its obligations. Good luck with that.
The state does not tax pension or retirement income. Suspect most who put their time into public service in South Dakota that taxes pensions, wish they had a sweet deal like their counterparts in Illinois.
In 2013, former Governor Quinn signed landmark bipartisan legislation to give the state the power to change aspects of accrued public pensions. This was immediately challenged and made its way to the state Supreme Court who ruled that the legislation was unconstitutional.
Illinois is one of seven states with constitutional constraints.
States cannot declare bankruptcy because it can cut costs and increase tax revenues to generate the funding necessary to meet its obligations.
Of the 42 states that impose income taxes, the tax rate in Illinois is among the lowest and tied with Utah. However, when combined with property and sales taxes, it is one of the top taxing states.
Public Pensions have been underfunded for more than 70 years. For such a blue state, Illinois has had many Republican governors who, like Democrats, chose to continue to underfund and kick the can.
The state has the distinction of having two former Governors, A Republican and Democrat, in prison at the same time.
Current governor Pritzker seems confident incremental tax revenues from legal marijuana and a change from a flat to progressive tax will enable the state to meet its obligations. Good luck with that.
The state does not tax pension or retirement income. Suspect most who put their time into public service in South Dakota that taxes pensions, wish they had a sweet deal like their counterparts in Illinois.
The problem is the politicians that made the "promise" didn't have to face the problems they created. They're all dead or retired now.The issue is who will pay for these promises? I do not feel that there should be a federal taxpayer bailout; it is on Illinois taxpayers period. They voted for it; they pay it.
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