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Thursday, May 07, 2015

Rahm Retaliates Against Chicago Teachers Union, Did He Inadvertently Find Partial Solution to Pension Crisis Across Illinois?

Chicago Mayor Rahm Emanuel was forced into a runoff election, the first time ever, for many reasons, but there is no doubt the efforts to oust him by the Chicago Teacher's Union (CTU) were among the biggest.

We don't like Rahm. He's a political hack and skilled at spin, not policy, but in his anger to retaliate against the CTU, he may have inadvertently found a partial solution to the vast pension crisis (ponzi scheme) of Illinois.

He wants to punish Chicago Teachers by forcing a 7% pay cut for the next contract.  No increase but an actual decrease of salary.  When was the last time you heard of a decrease in salary for any public employees in Illinois?

Anyone, anyone? Bueller?

As the Illinois Supreme Court may overturn the so-called pension reform of last year that took a small stab at the massive crisis, it looks like Gov. Rauner will need to work on a solution while chronic taxpayer enemies Mike Madigan and John Cullerton create obstacles.

But, what if all these cities, counties, police, fire, teacher employers with pension liabilities could change the math by simply reducing salaries to lower future pension costs to pay for the existing mess?

Pensions are based upon salaries so if the salaries are lower, so are the pension costs.  For those that already have been promised pensions, they would still get them at the same level.

So, in lie of any other solution, is Rahm's proposed pay cut a way to reduce the problem?

We say yes. It's time to look at certain salaries and figure out why many are getting very wealthy while many other public employees are not.

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