Chicago pensions consuming your city services

An item from the do-you-wonder-why-Chicago-is-such-a-financial-mess department? This is from the 2010 budget that Mayor Richard M. Daley unveiled on Wednesday (Page 44):

Pensions and debt service

In 2010, 43.3percent of the city's general levy, or $345 million, will
be used to fund pension contributions for city employees. State law

CityHall.jpg

mandates that the city contribute an amount to each pension fund based
on payroll contributions made by employees.

In 2010, the city's long-term debt obligations will require $368.4
million or 46.2 percent from the property tax levy to retire existing
debt srvice related to the city's Infrastructure Renewal Program...

Corporate

After all pension, debt service and library funding obligations have
been met, the corporate fund receives the remainder of the property tax
levy. The 2010 budget reflects that no property taxes
will be available for the corporate fund for the sixth consecutive year.

Oh, such interesting nuggets can be found when you read the fine print.
What this says is that after paying pension costs for city employees,
for the interest on all the money that the city has borrowed and all
the library funding obligations, nothing--northing--is left from your
property taxes to pay for police and fire protection and all the rest
of the expenses paid by the city's general (corporate) operating fund.
And it has been that way for six years.

Isn't it time to reopen those labor contracts and negotiate a
reasonable (like those in private sector) pension plan that doesn't
crimp other city programs?





Comments

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  • Being a city employee,I didn't hire on because of the pension.What should be looked at is the money that is used by family and friends for"investments."This is the part that is easily forgotten,but shouldn't be.Leave it alone.....

  • In reply to waterbill:

    What do you mean by "investments?"

  • In reply to DennisByrne1:

    The real estate investment by nephew Vaneco(sp).The waste and mismanagment starts on the 5th floor.

  • In reply to DennisByrne1:

    I don't have answers for these questions but an audit of all city departments would be a nice start.Yea,good luck with that one.

  • The CTA is in the same position, and the CTA Tattler today suggests that "we" share ideas for getting the CTA more money. http://www.chicagonow.com/blogs/cta-tattler/2009/10/share-your-ideas-on-how-to-make-more-cash-for-the-cta-win-big-prizes.html However, "we" know that Daley thinks he and his stooges have all the answers, so "we" will not.

    The issue is that with all public employee pensions being guaranteed by the Illinois Constitution, there will not be reform until politicians such as Daley, Quinn, Hynes, and Stroger suck the well completely dry (something like 90% for pensions, and 10% for minimal police and fire). Social Security probably isn't in any better shape, but the Federal Reserve can create money. The aforesaid Illinois politicians cannot.

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