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closeupready

(29,503 posts)
Fri May 8, 2015, 01:14 PM May 2015

Illinois Supreme Court Rejects Lawmakers’ Pension Overhaul

Source: New York Times

CHICAGO — The Illinois Supreme Court on Friday rejected changes that legislators made to fix the state’s deeply troubled pension system, leaving Illinois where it had started — with a significant budget crisis, a vastly underfunded public pension system and no plan in sight.

All seven members of the state’s highest court found that a pension overhaul lawmakers had agreed to almost a year and a half ago violated the Illinois Constitution. Under this state constitution, pension pledges cannot be “diminished or impaired.”

All along, unions had argued that the state could not do what it wished to do: lower future cost-of-living adjustments, raise the age of retirement for some and put a cap on pensions for those with the highest salaries.

But, in a deal pressed through by a state that was then controlled by Democrats, state officials argued that they had no choice to save the pension system and a state budget that was increasingly crippled by the pension woes. The deal, passed in late 2013, was expected to save $160 billion over 30 years.


Read more: http://www.nytimes.com/2015/05/09/us/illinois-supreme-court-rejects-lawmakers-pension-overhaul.html



Excellent! Just excellent.

As with Social Security, and the question, 'but how on EARTH are we going to solve this???!!??',

DUH RAISE TAXES.
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NoJusticeNoPeace

(5,018 posts)
1. Carlin said it 12 yrs ago "and they are going after your pensions next"
Fri May 8, 2015, 01:17 PM
May 2015

"And they are gonna get that too, they are gonna get everything"

This is good news, but until we have the political will to get the money from the place where the money is, not sure how this will work out.

I see you edited and yes, taxes.

We SLASHED taxes on the rich, and the corps dont pay them, so guess where the money is.

 

closeupready

(29,503 posts)
2. For one, I think Boeing got a VERY sweet deal that IL couldn't afford,
Fri May 8, 2015, 01:20 PM
May 2015

in retrospect. But that's the way it goes. They're gonna have to renege on that, in all likelihood.

Illinois has at times been on the other end of interstate corporate relocations. In 2001 it gave a $56 million to Boeing to move its headquarters to Chicago from Seattle (see below). The package consisted of both state subsidies and local property tax breaks. After taking office in 2011, Chicago Mayor Rahm Emanuel vowed to reform the city’s bloated TIF system.

The state commonly bundles tax credits, grants, and infrastructure assistance. Illinois’ revenue-reducing tax credits include the Enterprise Zone, High Impact Business, Film and EDGE programs. Illinois also provides direct cash grants to companies through the Business Development Assistance program. The IDOT Economic Development program provides indirect cash grants which fund infrastructure built to benefit companies.

The cost of these programs can be considerable. For example, the Enterprise Zone program alone costs the state nearly $94 million each year. Many companies don’t utilize tax credits because Single Sales Factor wipes out their tax liabilities. Tax credit subsidies are frequently used as a backstop just in case the company incurs a tax bill.


http://www.goodjobsfirst.org/states/illinois
 

Hoppy

(3,595 posts)
3. Same shit in N.J. The Ledger this morning reports Christie gave $30 billion tax breaks to corporati
Fri May 8, 2015, 01:32 PM
May 2015

Yet, he can't put the money he promised into the pension fund.

 

closeupready

(29,503 posts)
5. Boggles the mind. Since trickle-down doesn't work, why shovel so much cash
Fri May 8, 2015, 01:44 PM
May 2015

and $$ to these organizations that then take the money, repatriate it to the Cayman Islands, stuff it in untouchable offshore bank accounts, instead of spending it or using it to hire more staff?

Fred Sanders

(23,946 posts)
4. Do as Alberta will do...raise taxes on the rich and large corporations and impose fees on their use
Fri May 8, 2015, 01:38 PM
May 2015

of public services, resources, assets and public lands and minerals....do what you promised the hard working retired folks of your State, as enshrined, wisely, in the Constituion.

Double duh.

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