Tag: Ted Dabrowski

Illinois’ record-setting pension debt jumps to over $300 billion – Wirepoints

Mary Pat Campbell
Illinois’ record-setting pension debt jumps to over $300 billion – Wirepoints

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The state assumes the pension funds will continue to earn an average of nearly 7 percent a year, while Moody’s lowered its assumptions for 2020 to just 2.7 percent: “the FTSE Pension Liability Index, a high-grade corporate bond index Moody’s uses to value state and local government pension liabilities, fell to 2.70% as of June 30, 2020, from 3.51% the prior year.”

Moody’s also reported that the asset-to-payout ratio for the state’s funds are now equal to about seven years’ worth of payouts.

That’s down compared to Wirepoints’ report on asset-to-payout ratios we released last year in this report: COVID-19 pushes nation’s weakest public pension plans closer to the brink: A 50-state survey. 

Author(s): Ted Dabrowski and John Klingner

Publication Date: 4 March 2021

Publication Site: Wirepoints

Illinois Speaker Welch admits ‘folks don’t trust us,’ yet calls for redo of progressive income tax hike – Wirepoints

Mary Pat Campbell
Illinois Speaker Welch admits ‘folks don’t trust us,’ yet calls for redo of progressive income tax hike – Wirepoints

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Illinoisans who thought new House Speaker Chris Welch might change the direction Illinois is headed in just got a dose of reality. Welch recently said he wants Illinois to have a second go at a progressive tax scheme, this time committing the tax hike proceeds to pensions. Illinoisans rejected Gov. Pritzker’s first attempt, he said, because they didn’t know where the tax hike dollars would go. “…folks don’t trust us,” Welch said. 

Welch is right about the trust factor, but he’s wrong to think Illinoisans will suddenly approve a tax hike just because the legislature promises to funnel the new revenues to pensions. They know it’s unlikely politicians will keep their promise. And Illinoisans know the state’s unreformed pensions are a corrupted mess – that they’d be throwing good money after bad.

Author(s): Ted Dabrowski and John Klingner

Publication Date: 2 March 2021

Publication Site: Wirepoints

Jumping the COVID vaccination line: the next casualty of common sense – Wirepoints

Mary Pat Campbell
Jumping the COVID vaccination line: the next casualty of common sense – Wirepoints

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The state’s current vaccination category, 1B, includes the 1.9 millions over the age of 65, as well as the 1.3 million younger people who are first-responders or “essential workers” such as teachers, grocery store workers and transit workers. To date, about 150,000 Illinoisans aged 65 and over have been fully vaccinated, while nearly 390,000 residents aged 16-64 are already inoculated.

But groups both inside and outside that list have been demanding they take top priority. Everyone from politicians to teachers to bartenders to transit workers to librarians and more. That is patently absurd. There are a limited number of vaccines and if everybody is at the front of the line, then no one is. That’s why getting the elderly vaccinated has been so problematic.

…..

As long as we’re vaccinating the line jumpers who are younger than 60, we’re vaccinating the wrong people. Every needle in the arm of a younger Illinoisan – barring frontline health care workers – leaves an elderly Illinoisan at great risk.

Author(s): Ted Dabrowski and John Klingner

Publication Date: 22 February 2021

Publication Site: Wirepoints

The states’ 2020 financials are in: Biden’s billions in new federal aid aren’t needed – Wirepoints Special Report

Mary Pat Campbell
The states’ 2020 financials are in: Biden’s billions in new federal aid aren’t needed – Wirepoints Special Report

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States like Illinois, New York and California have long histories of financial negligence. California ran a budget deficit during seven of the last 16 years, according to a Wirepoints analysis of Pew Charitable Trust data. Connecticut has 10 years of deficits to its name. New York has 11. And Illinois and New Jersey have run budget deficits every year since at least 2004.

And then there’s the problem of pensions. States like Illinois, Connecticut and New Jersey all have amassed hundreds of billions in pension debt – all self-inflicted by state lawmakers.

The pandemic had nothing to do with those past deficits and debts, but that’s exactly what more federal aid would end up paying for.

Author(s): Ted Dabrowski and John Klingner

Publication Date: 16 February 2021

Publication Site: Wirepoints