Revised and supplemented with text and links on Tuesday, 8/28/18 at 11:10 am.
Monday night's (Aug. 27) City of Chicago edition of Public Affairs featured Part 2 of Berkowitz's handicap and analysis of the 2019 Chicago Mayoral race, including an update on the Mayor's Strategic Plan, or lack thereof, to deal with Chicago's outrageously high number of homicides and shootings.
Chicago Police Supt. Eddie Johnson: Still operating without a strategic plan to make Chicago more like NYC and LA in terms of their many fewer homicides and shootings?
During the show, we update our discussion of CPS, it's terrible decade of a credible complaint, every other week, of CPS faculty/administrator/adult volunteer rapes and sexual assaults of CPS students and its long-run problem of special ed student on student sexual assaults, and who might be responsible for all of that, including it's cover-up.
We also discuss the bizarre 2018-19 CPS budget explosion (20% increase) this year after 18 years of shrinking CPS enrollment (15% decline) and often lackluster performance by its traditional neighborhood schools.
This leads us into a general discussion of City of Chicago and CPS fiscal issues.
(based in part on analyses by Wirepoints.com
), about 15 mintues into the show), Rahm Enanuel's contemplated $10 billion pension bond sale,
which is one type of Emanuel's favorite way to avoid a short term tax increase, i.e., scoop and toss. Of course, this would be kicking the can down the road, and eventually the can and the tax increase, long term, will be much larger.
Ted Dabrowski, now President of Wirepoints.com, a Wilmette, IL free market oriented think tank. File copy picture of Ted, in his former life as VP, Policy, Illinois Policy Institute, discussing proposals for IL criminal justice reform at a program in 2016 at "1871" in the Chicago Merchandise Mart in the Chicago Loop
As part of Rahm's renewed emphasis on "Scoop and Toss," The City of Chicago will pile on even more debt on its taxpayers. Of course, the City could also adjust by cutting its spending or re-structuring its debt. (See, below discussion of bankruptcy).
Ignoring the sharp growth in the City's debt burden, Mayor Emanuel will claim, during his election campaign, the City is better off because some of the bond sale proceeds will be used to fund the City's pension funds.
But, since the increased pension funding is offset by growing City debt, is the City really better off by its pension bond sale?
Also, under Rahm's plan, the new bond purchasers will be getting bonds securitized by anticipated future revenue assistance from the State to Chicago.This will tend to lower the interest costs to the City.
But, the lower interest costs most likely hurts the City's citizens in general, in the future. The City's interest costs are lower due to the securitization of the bonds. And, as a result of the securitization, the bondholders will most likely receive all of their future bond payments. But, that is possibly at the expense of citizens in the future getting fewer education or public safety services.
For example, the IL State Legislature may give Chicago and other cities and villages in Illinois the power to declare bankruptcy. If Chicago successfully invokes that power, the bondholders' claims would take priority over citizens receiving current city services, e.g., public safety and education services.
With a successful filing for bankruptcy by the City, those with pensions would also probably get lower pensions. And, those smaller pension claims would be met only after the securitized bond holders' claims were taken care of.
2019 Chicago Mayoral Race, Chicago's growing debt, CPS, CPS 20% budget increase, CPS declining enrollment, CPS rapes, CPS rapes of CPS students, CPS Special Ed sexual assaults, Garry McCarthy, Jeff Berkowitz, Kicking the can down the road, Lori Lightfoot, Paul Vallas, Public Affairs, Rahm Emanuel, Rahm kicks the can down the road, Rahm's $10 billion pension bond sale, Rape of CPS students, Rapes of CPS students, Scoop and Toss, Ted Dabrowski, Willie Wilson, Wirepoint.com, Wirepoints, Wirepoints.com