total unfunded liabilities

City Of Chicago’s Total Unfunded Liabilities Grew To Nearly $24 Billion In 2015

It’s been a while since I last blogged about the Illinois Policy Institute, a Chicago-based non-partisan research organization “generating public policy solutions aimed at promoting personal freedom and prosperity in Illinois.” Yet earlier this week, Ted Dabrowski and John Klingner published a sobering piece on the Institute’s website about Chicago’s mounting financial woes that just needs to be disseminated. From their article:

Chicago property owners concerned about their future property-tax bills have had plenty to worry about over the past year- but a new report on the city’s crumbling finances has all but ensured that property-tax hikes will continue to be a painful reality for local homeowners.

The city already passed a $700 million hike in October 2015 to help plug the hole in police and firefighter pensions, and the city is expected to raise property taxes by another $250 million to fund ailing Chicago Public Schools, or CPS, pensions. And with billions more in other health care and pension shortfalls still unfunded, more hikes are on the way.

But the newest debt numbers in the city’s 2015 Comprehensive Annual Financial Report, or CAFR, show that without massive pension reforms, the city’s tax hikes are just beginning. The report found that the total city debt Chicagoans are on the hook for has more than tripled since 2014.

Chicago’s total unfunded liabilities have jumped by over $17 billion, growing to nearly $24 billion in 2015 from $6.5 billion in 2014. The increase is mostly due to new accounting standards and the fact that in March the Illinois Supreme Court struck down the city’s recent attempt to reform its broken municipal-workers and laborers pension funds.

Add to that their share of sister-government and Cook County pension and health care costs and long-term debt, and Chicagoans are on the hook for over $65 billion

(Editor’s note: Bold added for emphasis)

Disturbing stuff. But that’s reality for you.

You know, last week I read an “interesting” anonymous comment on the popular Chicago police blog Second City Cop. From the July 7 post entitled “And There it is….”:

Millennials as they are called are falling over themselves to move here. Look at Ukrainian village, Buck town south loop West loop, Lincoln Park. The city is becoming gentrified. Major companies are moving their headquarters here. City is on the upswing like it or not.

“City is on the upswing like it or not.”

Never mind its financial cancer that’s bound to metastasize in due time…

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Sources:

Dabrowski, Ted and Klingner, John. “Chicago’s Total Debt More Than Triples To Over $24B In 2015.” Illinois Policy Institute. 11 July 2016. (https://www.illinoispolicy.org/chicagos-total-debt-more-than-triples-to-over-24b-in-2015/). 14 July 2016.

SCC. “And There it is…” Second City Cop. 7 July 2016. (https://www.illinoispolicy.org/chicagos-total-debt-more-than-triples-to-over-24b-in-2015/). 14 July 2016.

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Thursday, July 14th, 2016 Debt Crisis, Education, Entitlements, Fiscal Policy, Government, Health, Housing, Legal, Public Safety, Taxes Comments Off on City Of Chicago’s Total Unfunded Liabilities Grew To Nearly $24 Billion In 2015

Illinois’ Total Unfunded Liabilities: $275 Billion

The following bit about Illinois’ total unfunded liabilities from a January 28 Investor’s Business Daily editorial was so depressing to read that I originally planned to blog about it much earlier this morning- but needed to step away. From the IBD website:

A recent release by the Illinois Policy Institute shows this [$96.8 billion unfunded debt to five state pension systems] is only the tip of the iceberg and when you add in other liabilities such as $54 billion in unfunded liabilities for retiree health insurance and $15 billion in pension bonds that Gov. Pat Quinn and his immediate predecessor, former Gov. Rod Blagojevich, issued to avoid pension reform, Illinois’ total unfunded liabilities amount to $275 billion, or $58,000 in debt for each and every household in the state.

(Editor’s note: Italics added for emphasis)

So what’s it going to be, Illinois? Since a booming economy seems unlikely to return anytime soon, will the Democrat-dominated Illinois General Assembly finally enact significant spending cuts? Raise fees and taxes through the roof? Throw public sector retirees “under the bus?”

They’re going to have to do something real quick.

Or watch the whole thing unravel.

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

Source:

“Obama’s Illinois Downgrade Makes It America’s Greece.” Investor’s Business Daily. 28 Jan. 2013. (http://news.investors.com/ibd-editorials/012813-642237-credit-downgrade-illinois-standard-poors-worst.htm). 31 Jan. 2013.

Share

Tags: , , , , , , , , , , , , , , , , , , ,

Thursday, January 31st, 2013 Bonds, Borrowing, Debt Crisis, Entitlements, Fiscal Policy, Government, Health, Insurance, Main Street, Political Parties, Retirement, Spending, Taxes Comments Off on Illinois’ Total Unfunded Liabilities: $275 Billion
Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

PLEASE RATE this blog HERE,
and PLEASE VOTE for the blog below:



Thank you very, very much!
Advertising Disclosure here. Ad captions last reviewed/updated 2/23/17.
ANY CHARACTER HERE
Freeze Dried Food PRESIDENTS' DAY SALE! 15% OFF EVERYTHING (coupon code- home page); Free Shipping (domestic orders). Review coming soon.
ANY CHARACTER HERE
Family-Owned & Operated in Chicago Suburbs! SAVE 10% OFF ALL ITEMS (promo code- home page); Free Shipping (U.S. orders) & Returns. Review coming soon.
ANY CHARACTER HERE
Buy Gold And Silver Coins U.S. GOLD (BULLION) COIN/BAR SALE!; 90% Junk Silver Sale; Secondary Market Silver Sale (1 oz. coins, 1 oz., 10 oz., & 100 oz. bars); World Gold Bullion Coins/Bars also on sale; Free Shipping on U.S. orders $99 and up (only $5.95 below $99!). BGASC reviewed HERE.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service taking care of $2 billion for over 65,000 users from 175 countries. BullionVault.com reviewed HERE.
ANY CHARACTER HERE
PRESIDENTS' DAY SALE! 1-WEEK EMERGENCY FOOD SUPPLY $17.76; SAVE 20% OFF ALL #10 CANS; Big Savings on "Deal Of The Day" page; Free Shipping on orders over $79. MyPatriotSupply.com reviewed HERE.
ANY CHARACTER HERE
bullet proof vestsWorld's First Bulletproof Baseball Cap only $129; Bulletproof Ceramic Plate (NIJ Level III Stand-Alone) only $169; Bulletproof Backpack/Messenger Bag Panel only $99. BulletSafe reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% Discontinued Title Sale- Savings up to 75% Off Original Price. Paladin Press reviewed HERE.
ANY CHARACTER HERE
This project dedicated to St. Jude
Patron Saint of Desperate Situations



happyToSurvive

Categories

 

Archives

RSS Chris Hill’s Other Blog: Offshore Safe Deposit Boxes

  • Related Reading: Harrods Safe Deposit Article On The Huffington Post Website
    While putting together the list of offshore private vaults offering safe deposit boxes/lockers for this blog’s sister site, I learned that two of the best-known department stores in the world- Harrods and Selfridges in London, England- provided this service. Yesterday, The Huffington Post website published a piece about Harrods Safe Deposit, which opened in 1896 […]
  • Thoughts On Safe Deposit Box Article By The Straits Times
    Yesterday I came across an article on The Straits Times (Singapore) website entitled “Time to part ways with safe deposit boxes.” Business editor Lee Su Shyan wrote Sunday: Growing up, having a safe deposit box symbolised financial adulthood, even more than scoring that exclusive credit card. But that’s not a view shared by many nowadays. […]
  • Next Degussa Numis Day To Take Place February 23, 24
    Speaking of numismatics this morning, Degussa, a leading international player in the precious metals world which also offers safe deposit boxes (for customers) at branches in Germany, Singapore, Spain, and Switzerland, has posted information about the next Numis Day (first blogged about here) at their Geneva and Zurich showrooms. From their website: The Next Numis […]
  • Related Reading: Precious Metals, Collectible Coins Have Shined In The New Millenium
    Just recently, I brought up a MarketWatch piece that focused on rare coins as investments. Collectible coins are often placed in safe deposit boxes for safekeeping. Today, I want to point out a February 2 article on the website of Numismatic News that analyzed the performance of precious metals against U.S. stocks from the end […]
  • Latest Offshore Safe Deposit Box Promotions
    Here are the latest limited-time specials from offshore safe deposit box facilities listed on this blog’s sister site (link included to web page where each promotion is displayed): Asia Titanium Safe Deposit Box (Kota Kinabalu, Sandakan, and Tawau in Sabah, Malaysia)- “Senior citizens 60 years old and above enjoy 25% off safe deposit box rental.” […]