When a town or a city has a problem, it’s theirs to solve it.
For instance, the failure of Chicago’s public schools is Chicago’s problem. But, that’s not what Mayor Rahm Emanuel thinks. He wants a a bailout for his city’s failure in education.
We are all familiar with the fact that Chicago has pension liabilities that ruined the city’s finances and currently stand at close to $20 billion. Thanks to the 2010 state law, Mayor Rahm Emanuel managed to win a reprieve regarding the money the city has to contribute in order to fund the liabilities over the next few years, because Illinois lawmakers overrode Governor Bruce Rauner’s veto and will now change the legislation to allow the city to defer payments to fund pensions.
The previous legislation required Chicago to have its public safety workers pensions 90% funded by 2040, and called for an $834 million payment to be made in 2016 alone. But, the revised legislation reduces that amount to $619 million. It allows for smaller increases through 2020 while pushing the timeline for 90% funding out to 2055. However, this timeline will be extended, again, because the city will never be able to come up with such funds.
Given this, Rahm Emanuel is now quietly asking the city to change investment rules. His goal is to allow Chicago to purchase debt from sister agencies such as the Chicago Public School system. In other words, he wants to bail out the Chicago Public School system.
I bet the Democrats will try to turn this effort around and name it something Orwellian like the “Chicago’s Future” bill. Why? Because misleading the nation is what they do best.
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