-- Connecting the dots between our economy, government and business --
Go to Article
Posted March 27, 2017 5:40 pm by WirePoints Comments (5)
I’ve been a common sense proponent for filing bankruptcy for years. There’s no way Illinois will ever be able to pay those ridiculous and obscene pensions, never!
The smart people have moved, or are planning on moving our of Illinois.
Once the legislation passes to transfer the teacher pension obligations back to the local school districts, look out! House values will plummet big time.
Hope this helps, and good luck.
Patrick, “Once the legislation passes to transfer the teacher pension obligations back to the local school districts, look out! House values will plummet big time.” How realistic is this to happen? Who would want to vote “Yes” in the IL legislature to force this?
I would guess the teacher unions would fight this tooth and nail. They like the current disconnect with one govt entity paying the salaries and another govt entity paying for the retirement as it’s easier to hide the true cost of the entire compensation package.
At 3:10 you mention unsecured bonds, but aren’t most of them secured by (various) tax revenue streams? And if that’s the case, does that mean essential services get no money while the bondholders get it all?
Some are secured and some (conventional general obligation bonds) are not. You’re probably thinking about municipal bonds for cities and towns, where security is typical. Secured bonds would have to be paid in bankruptcy, but unsecured bonds could get cut. I don’t have a good handle on how much of state bonds are unsecured and how much is secured. That’s very important and I continue to look for a good inventory or list of that.
← WirePoints Home