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* Illinois Policy Institute…
Watchdog accountants are challenging Gov. J.B. Pritzker’s claims Illinois is on its best fiscal footing in years, arguing his five-year economic outlook report severely underrepresents the state’s looming long-term financial liabilities.
Experts with Truth in Accounting examined state financial reports to determine Illinois failed to pay $210.5 billion worth of its bills in fiscal year 2021, leaving each taxpayer responsible for $49,500 in debt. Illinois ranked third-worst in the nation, rating an “F” for fiscal management.
Illinois didn’t have $210.5 billion in pension bills last fiscal year. That’s like saying a homeowner should be ashamed of not paying off her 30-year mortgage in full last year.
Also, if you’ve ever taken out a home mortgage, you know that most of what you pay the first several years is basically just interest. You’re not paying off the money borrowed during that period of time, but you’re following the payment schedule drawn up by your bank. Kinda like the state’s pension ramp. And now, as I’ve been saying for a while, annual required state pension payments have finally stabilized, just about as projected back in 2018 [and 2017 and 2016].
* Back to IPI…
Illinois pensions can be fixed, but not by feel-good distortions of the economic realities. Reforms are needed that are only possible by changing the Illinois Constitution.
The “hold harmless” pension reform developed by the Illinois Policy Institute would tie all pension cost-of-living adjustments to inflation rather than a fixed rate of annual growth, saving $50 billion by 2045. It would also increase required government contributions to fully fund retirees’ promised pensions rather than the current target of 90% by 2045.
Hilarious. Aside from the inflation aspect, now they’re for a tax hike? Because we all know how easy and painless it was to slash government spending when Bruce Rauner was governor. Also, when taxes were raised over Rauner’s veto, he spent every bit of the money.
…Adding… Dan Proft is listed as a member of Truth in Accounting’s board of directors on its 2020 990 form. Click here.
posted by Rich Miller
Monday, Nov 21, 22 @ 11:48 am
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==Illinois failed to pay $210.5 billion worth of its bills ==
The IPI doesn’t even try to be serious. They’ll say anything it takes to support their gloom and doom outlook of Illinois finances. The IPI has become more than a joke.
==would tie all pension cost-of-living adjustments to inflation ==
I’m pretty sure the pensioners would absolutely love that right now.
The IPI is for one thing and one thing only and that is stealing people’s pensions. They are a one hit wonder. Nobody should ever take anything they say seriouisly.
Comment by Demoralized Monday, Nov 21, 22 @ 11:51 am
So … IPI wants to give 8% or 9% adjustments this year and next year instead of the mandated 3%. I’ll take it (banned punctuation)
How many of us expect to see 0% interest rates return in the next 10 years? That’s the only thing that made 3% look high.
And let’s not forget that tying the pension increases to inflation will cause vastly differing payments to the pension system each year that won’t be able to be accurately budgeted and forecasted 9 to 12 months in advance.
Comment by RNUG Monday, Nov 21, 22 @ 11:57 am
=Watchdog accountants=
There is a case for ethics reform if I ever heard one. Completely unethical use of the english language if I ever heard one.
And more like, we are FINALLY following the plan that will bring financial stability to the state.
But… IPI.
Comment by JS Mill Monday, Nov 21, 22 @ 11:58 am
Curious as to how they think the State can get around the US Constitution as well as the State on the pension issue. hmmm
Comment by frustrated GOP Monday, Nov 21, 22 @ 12:01 pm
=== Also, when taxes were raised over Rauner’s veto, he spent every bit of the money.===
Wasn’t this also when IPI was running the Rauner Administration shop at the behest of Diana Rauner and her emails?
It was such a colossal failure, IPI actual in the governing realm, I forget in that short window all the silly they did
Comment by Oswego Willy Monday, Nov 21, 22 @ 12:01 pm
==It would also increase required government contributions==
It’s nice to see the IPI concerned about the state paying what it owes. After all, these are the same people who were tickled to death that the state didn’t have a budget and wasn’t paying its bills.
Comment by Demoralized Monday, Nov 21, 22 @ 12:05 pm
–just about as projected back in 2018.–
I expected them to really crank up the crazy as other milestones pass, without their doom predictions ever coming to pass.
But this. This is just lazy and shows how bad they are not just at finances, but at their own supposed jobs.
Comment by TheInvisibleMan Monday, Nov 21, 22 @ 12:13 pm
“”Experts in Truth In Accounting””
Three strikes
Comment by Walker Monday, Nov 21, 22 @ 12:16 pm
===I expected them to really crank up the crazy as other milestones pass===
They may know the window has closed, but they can still convince a few dead-enders in the legacy news media to buy in.
Comment by Rich Miller Monday, Nov 21, 22 @ 12:18 pm
More dorm room blather.
Comment by Big Dipper Monday, Nov 21, 22 @ 12:20 pm
Have they even heard of Tier 2?
And I am still awaiting a specific suggestion on saving money from one GOP person (other than me and some others on this site).
Comment by Lurker Monday, Nov 21, 22 @ 12:21 pm
==…they can still convince a few dead-enders in the legacy news media to buy in.==
Unfortunately for them, IPI doesn’t get any of that sweet, sweet Uihlien money, so it’s unlikely another $50,000 check will come with the buy in this time.
Comment by Anon324 Monday, Nov 21, 22 @ 12:25 pm
=== IPI doesn’t get any of that sweet, sweet Uihlien money===
Sure about that? They’re in all the same clubs. And Uihlein gave big bucks to a PAC run by IPI this year.
Comment by Rich Miller Monday, Nov 21, 22 @ 12:28 pm
Isn’t tying annual pension adjustments to inflation how we got the 3% compounded annual increase in the first place? Jimmy Carter years of double digit inflation was too much to handle. they struck a deal to adopt the 3% compounded annual adjustment. So everyone would know what to expect.
Comment by Langhorne Monday, Nov 21, 22 @ 12:34 pm
Just as any organization that has “Family” in the name isn’t really about protecting / helping the “Family,” any organization that has “Truth” & “Accounting” in the name isn’t about that. The TIA article mentions statutory pension requirements in passing, and doesn’t use “pension ramp” or “the Edgar pension ramp.” Political Kabuki Theatre.
Comment by Anyone Remember Monday, Nov 21, 22 @ 12:35 pm
=== The IPI doesn’t even try to be serious. ===
Correction: IPI doesn’t even try to be truthful.
Comment by Norseman Monday, Nov 21, 22 @ 12:36 pm
===Illinois pensions can be fixed, but not by feel-good distortions of the economic realities.===
Apparently what we need is feel-BAD distortions of the economic realities instead. Luckily, that’s IPI’s specialty.
Comment by vern Monday, Nov 21, 22 @ 12:41 pm
Figures don’t lie, but liars figure - Mark Twain (supposedly)
IPI isn’t unique in this approach to worker benefits. The same argument has been codified at the national level in the Postal Accountability and Enhancement Act, which mandates USPS pre-fund retiree health benefits 75 years in advance. See how well that’s worked out.
Comment by Dysfunction Junction Monday, Nov 21, 22 @ 12:47 pm
== Reforms are needed that are only possible by changing the Illinois Constitution. ==
The standard plan of conservatives for decades. Just break your promises to workers who earned their pensions, and make the workers suffer.
Great solution.
Comment by Homebody Monday, Nov 21, 22 @ 12:53 pm
=tying annual pension adjustments to inflation=
Speaking for all pensioners on this topic, count us in for the next 10 years.
Comment by JS Mill Monday, Nov 21, 22 @ 12:53 pm
===Pritzker’s claims Illinois is on its best fiscal footing in years===
===Illinois failed to pay $210.5 billion worth of its bills in fiscal year 2021, leaving each taxpayer responsible for $49,500 in debt===
===Illinois ranked third-worst in the nation===
They only give this year’s data point to challenge the claim that Illinois is doing the best it has in years. Even if we count all the pension debt as a current unpaid bill, they have given us nothing to compare against. We could have crippling, 3rd worst in nation debt, and we could still be better today that we were 4-8 years ago. Or we could be doing worse, but they gave no data to support either claim.
Comment by thechampaignlife Monday, Nov 21, 22 @ 1:06 pm
==Watchdog accountants ==
I also question the credentials of these accountants if they don’t understand what a long term liability is. If they view the pension debt as a current payable then they are crappy accountants.
Comment by Demoralized Monday, Nov 21, 22 @ 1:17 pm
Thoughts and prayers go out to the IPI.
Comment by Jerry Monday, Nov 21, 22 @ 1:25 pm
It is instructive to look at the Truth in Accounting website. One of their foundational philosophies is that all debt and future obligations must be added to the balance sheet when they are taken on rather than when the payment must be made. This is accounting silliness and is incredibly misleading.
I find it interesting that while they advocate for openness, they do not disclose their donors.
Comment by Pot calling kettle Monday, Nov 21, 22 @ 1:42 pm
Dan Proft is listed as a member of Truth in Accounting’s board of directors…bwaha.
Comment by Dotnonymous Monday, Nov 21, 22 @ 1:51 pm
Perfidy
Comment by Honeybear Monday, Nov 21, 22 @ 2:11 pm
Same old silliness. The Illinois Constitution is not the only issue. The US Constitution’s protection of contracts would also need to be amended. Can you imagine corporations and bond holders going along with eliminating the protection of contracts? It’s pretty clear that they don’t understand or want to understand the implications or complications associated with any changes.
Comment by Old and In the Way Monday, Nov 21, 22 @ 2:45 pm
I’m not as confident that this SCOTUS won’t find a way around our pension contracts.
Comment by Anotherretiree Monday, Nov 21, 22 @ 3:13 pm
= leaving each taxpayer responsible for $49,500 in debt. =
Will these clowns every stop? The IPI takes theoretical numbers, derived through flawed reason and logic, and then use these false arguments to threaten the sky is definitely going to fall.
I understand they are attempting to sway those who know little about math and economics. But at some point, the people of Illinois need to say “enough” to these clowns.
It is far worse to try to fool citizens than it is to lie. Both however, is immoral. Shame on IPI.
Comment by H-W Monday, Nov 21, 22 @ 3:25 pm
=I’m not as confident that this SCOTUS won’t find a way around our pension contracts.=
Well, our ILSC has continued to protect it and thus it will be unlikely to reach the USSC ever.
Comment by JS Mill Monday, Nov 21, 22 @ 4:05 pm
Dan Proft Truth in Accounting sounds like a parody site.
Comment by Amalia Monday, Nov 21, 22 @ 4:54 pm
IPI forgot to tell us that our property taxes would go up over $2,000
Comment by don the legend Monday, Nov 21, 22 @ 5:02 pm