Illinois cannot cope with the present, let alone with the future, so it’s fighting a symbolic battle from the past.
Here’s a little history lesson: In 1972 Congress submitted the Equal Rights Amendment to the state legislatures, which read:
Section 1. Equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex. Section 2. The Congress shall have the power to enforce, by appropriate legislation, the provisions of this article. Section 3. This amendment shall take effect two years after the date of ratification.
There was a rush of states falling over year other to ratify would have been the 27th Amendment before the seven-year deadline for passage, which in an unprecedented move, was extended by Congress for an additional three years. Thirty-five states–nearly all of them did so in the first year after congressional passage–ratified the ERA. Then opposition, led by conservative firebrand Phyliss Schlafly, who ironically lived in Illinois at the time, focused on such concerns that in an ERA America, women would be eligible for a military draft and gender-specific bathrooms would be abolished.
Illinois did not ratify the ERA.
Three states, in a move never tested in a federal court, later rescinded their ratifications. No states ratified the ERA during the extension period and the Equal Rights Amendment died in 1982, three states–or six–short of what was needed to be enacted.
Or did the ERA really die?
Last year, thirty-five years after the deadline expired, Nevada ratified the ERA. And last month the Illinois state Senate voted to do the same. In the House, Rep. Lou Lang (D-Skokie), who nominally represents me in the lower chamber, is the sponsor for the ERA there. It’s a pet cause of Lang, a consummate left-wing political hack. He’s the House deputy majority leader, in reality, he’s the head waiter for House Speaker for Life Michael Madigan (D-Chicago), who Reuters says is “the man behind the fiscal fiasco in Illinois.” Where is Lang’s pension fix? Illinois has one of the worst-funded public-worker pension systems of the fifty states. Its credit rating is the lowest of any state ever. Why? Pensions of course. And those generous retirement plans are in reality deferred compensation in exchange for public-sector union support of the Democratic Party. Yes, a couple of Republican governors, Jim Thompson and Jim Edgar, are also partly culpable. Illinois’ pension bomb, both at the state and local level, and the tax hikes to attempt to pay down that debt, are a millstone for the state and the reason the Prairie State is suffering from declining population.
Other than more tax increases, Lang has no solution to solve the pension crisis. And yes, he’s definitely part of the problem as Lang has been a state legislator since 1987.
What to do?
If you’re Lang, you create a distraction with a nostalgic, for the left that is, flavor. Ratify the ERA. The Democratic nominee for governor, JB Pritzker, is on board.
Of course Congress could vote to pass, with identical wording, a new Equal Rights Amendment. Lang can just call his pal US Rep. Jan Schakowsky, his (and yes, my) representative in the US House. She’s an even bigger leftist than he is. Then the states can have another go-around. That’s what the our nation’s founders would want.
On the other hand, passing an constitutional amendment is very difficult to do. In 229 years it’s only been accomplished 27 times. But the US Constitution has in reality been amended thousands of times–by the courts. Same-sex marriage was legalized in such a manner, as was abortion.
Other than making women eligible for a military draft, what would the ERA do?
But that’s not the point. Liberals are obsessed with symbolism.
After the 9/11 attacks author Tom Clancy expressed this notion better, telling Fox News’ Bill O’Reilly, “The political left is, you know, they deal in symbols rather than reality.”
The ERA is a symbol.
“The general difference between conservatives and liberals is liberals like pretty pictures and conservatives like to build bridges that people can drive across,” Clancy continued. “And conservatives are indeed conservative because if the bridge falls down, people die. Where as the liberals figure, oh, we can always build a nice memorial to them and make people forget it happened and it was our fault. They’re very good at making people forget it was their fault, all right.”
The ultimate blame for Illinois’ pension debacle and the resulting people-drain lies with the left.
And Illinois is a collapsed bridge.
Will passing the ERA make Illinoisans feel better?
John Ruberry is a fifth-generation Illinoisan, who, with a 401(k) plan, is funding his own retirement. He regularly blogs at Marathon Pundit.
For decades Illinois, Chicago, and many other Land of Lincoln municipalities have been kicking the can down the road in regards to public worker pension obligations.
Harvey, a poverty-stricken southern suburb of Chicago with a long history of corruption, has not just reached the end of the road, it has run off of the cliff, in the manner of Wile E. Coyote. Because Harvey has not been adequately funding its police and fire pension plans for years, a state law–Illinois ironically is guilty of the same sin with its pensions–requires the state treasurer to withhold the city’s portion of sales tax revenue, $1.4 million, to pay into those funds instead of that cash being deposited into the town’s general revenue account. Harvey’s police and fire pensions are funded at only 51 and 22 percent, respectively.
On Friday Harvey laid off half of the employees in its police and fire departments, along with about a dozen other municipal workers.
Ironically two firefighters with 18 years on the job were among those given pink slips, they are two years away from qualifying for their own pensions.
Harvey has had many other brushes with malfeasance, and like Wile E, it has used a bag of tricks from its own version of the Acme Corporation to remain airborne. It purchased Lake Michigan water from Chicago, resold it to neighboring towns and used that revenue for payroll and other expenses. Until Chicago sued Harvey didn’t pay the larger city for that water. Its four-term mayor, Eric J. Kellogg, was fined $10,000 and banned from participating in future bond offerings after Harvey diverted cash from a hotel development plan to other items, including payroll.
The FBI, according to the Chicago Tribune, is investigating bribery allegations involving a consultant of Kellogg, the former mayor of neighboring Dixmoor who is a twice-convicted felon. The case is centered on secret recordings made by Harvey’s comptroller, who committed suicide in 2016, the same year that Fox Chicago, citing reports from experts, said the city is “worse than broke.”
Ah, it’s easy to dismiss Harvey as an aberration even in a state with a national reputation for corruption. In my lifetime four Illinois governors have been sent to federal prison and a fifth faced trial for tax evasion but was found not guilty.
Pension troubles such as the one Harvey is facing can’t come to my Prairie State town, can they?
They sure can.
A researcher from the University of Chicago says there are 74 other police or fire departments with pension funds that are comparably underfunded as those of Harvey. One of those towns in that predicament is Niles, the village west of the Chicago suburb where I live. I have some friends who reside there and they pride themselves on their low–well, low for Illinois–property taxes.
Niles is one of those 74 towns. In 2010 its mayor for nearly five decadesserved a year in prison for his role in a kickback scheme.
“We are a nation that has a government—not the other way around. And this makes us special among the nations of the Earth.”
First presidential inaugural address from Ronald Reagan, who was born in Illinois.
Last summer the Democratic-dominated Illinois General Assembly, overriding a veto from Republican governor Bruce Rauner, slugged Illinoisans with a 32 percent hike in the state income tax.
The Democratic nominee for governor, billionaire JB Pritzker, favors another tax increase. This phony, in a successful ploy to decrease property taxes on his Chicago mansion, purchased a neighboring mansion, disconnected its toilets, then in an assessment appeal, received his tax cut because the palace next door was “uninhabitable.”
Welcome to ILL-inios.
Rauner barely won the Republican nomination in last month’s primary over a little-known and little-funded insurgent conservative, Jeanne Ives, in a thoroughly dishonest campaign. I backed Ives. As for Prtizker, he comes with additional baggage, including embarrassing recordings of FBI-wiretapped phone conversations with now-imprisoned former governor Rod Blagojevich, which is the only reason why he is not the prohibitive favorite to wipe the floor with Rauner in November. Still, it’s likely that a Governor JB is in the future for the Prairie State.
Illinois is broken and broke. It might not have the worst-funded public pension system among the states, but it’s so close to the bottom it doesn’t really matter. Illinois House speaker–“speaker for life”–Michael Madigan (D-Chicago), with some Republican help, transformed Illinois’ pension system into a generous political reward in exchange for support from public-sector unions. Illinois’ budget dedicates 25 percent of spending on state worker pensions. In Wisconsin that amount is 16 percent. Okay, that doesn’t seem like much, but Wisconsin’s pension plan is 100 percent funded, Illinois is at a paltry 35 percent.
Bad times have arrived in Illinois–with worse times coming. For the last three years Illinois has suffered from negative population growth.
It’s hard to see how Illinois won’t be able to avoid some sort of default.
Pritzker favors a “temporary” income tax increase until a graduated tax rate is put in place. But for that to get enacted the state constitution must be amended. That requires three-fifths of both houses of the General Assembly to approve it and a majority of Illinois voters to go along. Even in blue Illinois those are tall hurdles, especially since a “Prtizker amendment” will be viewed, rightly, by voters as a pension bailout amendment.
Of course Pritzker is vague about rates for both that “temporary” tax plan and the graduated one. Of course with the latter one, only “the rich” will pay more.
In honor of Illinois’ bicentennial, Kerry Lester of the Daily Herald compiled a list of Illinois’ best-known leaders. There is some good in it–Ronald Reagan and Abraham Lincoln, and some bad. Ethel Kennedy? Robert F. Kennedy’s widow was born in Chicago but grew up in Connecticut. And besides, her contributions don’t amount to very much.
Illinois has a well-deserved reputation for corruption. So I have put together my own list, the 14 Worst Leaders from Illinois.
My “hall of shame” by no means exonerates anyone not named.
Hillary Rodham Clinton
She is one of two people on both lists. Clinton is a former first lady, US senator, US secretary of state, and of course, the first major party presidential nominee. She was born in Chicago and grew up in suburban Park Ridge. Smoke, but as of yet, no fire has engulfed HRC’s public career. Clinton was implicated, but never charged in the Whitewater Scandal. Two years after her Whitewater billing records from the Rose Law Firm were subpoenaed, they mysteriously appeared in the White House living quarters. While secretary of state under Barack Obama, she used a home-brewed private email server. Her handling of those emails was deemed “extremely careless” two years ago by FBI director James Comey. After our consulate in Benghazi was overrun by terrorists in 2012, leading to the death of our ambassador to Libya as well as three other Americans, Clinton spread the lie that a YouTube video inspired the barbarians
I could go on and on about Clinton, but I have other names on my naughty list.
Richard M. Daley
Chicago’s mayor from 1989-2011, Daley’s father, Richard J who was mayor for nearly as long., had a strong background in public finance which allowed Chicago to escape the fiscal problems cities such as those New York and Cleveland suffered in the 1970s. Richie Daley inherited his dad’s name but not his financial acumen. Chicago’s public pensions are the worst-funded of any major city in the country. Property tax increases signed into law to right the ship by his successor, Rahm Emanuel, are probably just buying time; besides, the tax hikes are likely a key reason why Chicago is the only major city with a declining population.
After two Democrats it’s time for our first Republican. Lennington “Len” Small of Kankakee was governor of Illinois from 1921-1929. While governor he was indicted for embezzling money during his time as state treasurer. He was found not guilty, but eight of the jurors on his trial later received state jobs. Just a coincidence, I’m sure.
Another Kankakee GOPer, Ryan got in trouble for his scandalous eight years as Illinois secretary of state. Under Ryan, who once was speaker of the state House, the SoS office was enmeshed in a driver’s licenses for bribes scandal. Elected governor in 1998, after his one-term in that post Ryan was convicted of corruption involving perjury and bribery. His scandal was one of the few political ones that involved fatalities. On Election Day in 1994–Ryan was re-elected secretary of state that day–a truck driver who obtained his license by bribery caused an accident where six children from Chicago were killed.
Like Ryan, Powell served as speaker of the state House before his election as secretary of state. His personal motto was “There’s only one thing worse than a defeated politician, and that’s a broke one.” Illinoisans who needed their license plates renewed were instructed to make their checks out to “Paul Powell.” What could go wrong? Powell died in office in 1970. The executor of his estate discovered over $800,000 in cash in the Springfield hotel suite where the southern Illinois self-servant lived, including some stuffed in a shoebox. His tombstone reads “Here lies a lifelong Democrat.”
Before his election to Congress in 1986, Hastert, a Republican, was a teacher and a wrestling coach at Yorkville High School. He later became speaker of that House. But at Yorkville he was a serial child molester. He was sent to prison not over those assaults, but for lying to federal officials about banking activity involving payments to one of his victims.
He’s on that other list too. Jesse Jackson, the “poverty pimp” civil rights leader, has done little if anything to alleviate the problems of the people he claims to represent, Chicago’s minority poor. His half-brother, Noah Robinson, is serving a life sentence for racketeering and murder-for-hire. Jackson utilized his then-powerful Rainbow/PUSH organization to elect his son, Jesse Jr, to Congress and his daughter-in-law, Junior’s wife, as a Chicago alderman. Both went to prison over misuse of campaign funds.
We have to go to the pre-Civil War era for Matteson. The Illinois & Michigan Canal is the reason Chicago is the Midwest’s great city, not Milwaukee or St. Louis. But the canal faced enormous financial difficulties before its completion in 1848. Scrip was utilized by Illinois to fund the canal but in 1859 it was discovered that Matteson, a Democrat who was governor from 1853-1857, converted some of that scrip for personal use. Matteson was investigated but never charged in the case.
Antoin “Tony” Rezko
An immigrant from Syria, Rezko essentially was a collector of Democratic politicians, including Barack Obama and Governor Rod Blagojevich. Rezko engineered the mysterious land deal that made Obama’s purchase of his South Side Chicago mansion affordable. But his role as a fixer for Governor Rod Blagojevich earned him a trip to prison.
The most recent Illinois governor to be sentenced to prison, the Chicago Democrat attempted to sell the Senate seat of Barack Obama to the highest bidder. He essentially transformed the governor’s office into a vast pay-to-play operation. He’s still a federal inmate. Outside of the corruption, Blago was a still terrible governor. Illinois’ precarious financial situation grew much worse during his six years in Springfield, lowlighted by a two-year long pension payment holiday. State House Speaker Michael Madigan–another speaker!–played a large role in that debacle. We’ll be learning more about Madigan a little later. As for Blagojevich, amazingly he is the only Illinois governor to be impeached and removed from office.
William Hale Thompson
Chicago’s last Republican mayor, Thompson served two stints in office–from 1915-1923 and from 1927-1931. Thompson let Al Capone and other gangsters run wild during Prohibition. After the death of “Big Bill” in 1944, nearly $2 million in cash was found not in a shoebox, nor in Al Capone’s vault, but in a safe deposit box.
You might have heard his name in the news lately as Kerner, a Democratic governor from 1961-1968, served as the chairman of the National Advisory Commission on Civil Disorders, better known as the Kerner Commission, which explored the causes of the 1967 urban riots. It was released 50 years ago last month. But in 1961 Kerner received a bribe of race track stock, which only came to light after the woman who paid him off him listed that expenditure on her federal income tax return because she viewed it as a legitimate business expense. Who can blame her for that opinion of Illinois? By the time the bribe was revealed Kerner was serving as a federal appeals judge. Facing certain impeachment, he resigned. Kerner was released from prison early for health reasons and died in disgrace shortly afterwards.
Carol Moseley Braun
Capitalizing on anger over the testimony of Anita Hill against Judge Clarence Thomas over reputed sexual harassment during his US Supreme Court confirmation hearings, Braun went from being Cook County Recorder of Deeds to the US Senate in 1992, becoming the first African-American woman to serve in the upper chamber. Even before her election, scandal percolated for Braun over allegations that she and her campaign manager, Kgosie Matthews, who was also her fiancée, diverted campaign funds for personal use. The Chicago Democrat blew off her Senate orientation meetings and instead took a nearly month-long vacation in South Africa with Matthews. What followed was a mind-bogging and ethically challenged six years in the Senate. Matthews was a citizen of South Africa–foreign meddling anyone?–and he was also at one time a paid lobbyist for Nigeria, which was then run by a murderous dictator, Sani Abacha. Over the objections of the Congressional Black Caucus, Braun visited Abacha while she was a senator.
During the ’92 campaign, it came to light three years earlier that inheritance money belonging to her mother, a nursing home patient, was split between Braun and two siblings, instead of being used to reimburse Medicaid. Once the scam became public Braun promptly paid Medicaid $15,000.
Matthews was later accused of sexual harassment of female campaign workers. Braun was elected during what was then called “the Year of the Woman.”
Braun and Matthews–he later left the country–were never charged with crimes.
Like Richard M. Daley, Madigan has modeled his public life on that of Richie’s dad, the first Mayor Daley. But like the son, Madigan, who has been speaker of the state House for 33 of the last 35 years, the Boss of Illinois is inept in regards to government finance, which is why last year Reuters declared him “the man behind the fiscal fiasco in Illinois.” Madigan, yet another Chicagoan, is also the chairman of the state Democratic Party. The “speaker for life” runs the House with an iron fist and his gerrymandering abuse is an insult to democracy. He’s the poster child for the admonition, “Power tends to corrupt, and absolute power corrupts absolutely.”
Illinois will have one of the most-closely watched gubernatorial contests this year. Republican incumbent Bruce Rauner has been a tremendous disappointment to me and just about every conservative voter I know. I enthusiastically backed the then-political newcomer in 2014, but this time around, as I explained here at Da Tech Guy, I’m supporting Rauner’s Republican challenger, state representative Jeanne Ives in the March primary election.
Ives is attacking Rauner, and to be fair, the Dems are too. Rauner has much to answer for. Actually he has little to answer for–as Rauner has not accomplished much of anything. For her part Ives is promoting common sense reforms that only public-sector union bosses and their enablers oppose, such as amending the state constitution so pension benefits can be changed, that is, so payment increases can be lowered, and having new state employees enroll in 401(k) plans.
Deals with the Democrats’ state worker wing, the public-sector unions, that some Republican governors signed off on–but not Rauner–have burdened the Prairie State with $250 billion in pension debt. Retiring at 50 with full benefits is nice–except for chumps like me who have to pay for it. Illinois’ current budget is $36 billion and a whopping one-quarter of it goes to government worker pension payments. Illinois has suffered from the worst credit rating among the states for years, currently that rating is just one level above junk.
Illinoisans are responding sensibly and predictably–for four straight years Illinois has had negative population growth.
There is little to celebrate during Illinois’ bicentennial year.
Two candidates on the Democratic side are getting most of the attention from the media and presumably it’s a race between them, as there is currently no polling data on gubernatorial race. Billionaire investor JB Pritzker, a scion of the family that own the Hyatt Hotel chain, has collected the lion’s share of endorsements from prominent Democrats and the party’s union allies. He the only Democratic candidate regularly running ads on radio, television, and on the internet. The other prominent contender is Chris Kennedy, the son of Robert F. Kennedy who used to run Chicago’s Merchandise Mart.
Neither have much to say about Illinois’ long-running fiscal crisis and solutions for it, other than “taxing the rich.” But they don’t even talk much about that.
Pritzker’s web advertisements are a daily presence on my Facebook and Pandora pages–in these Pritzker almost always attacks Donald Trump, as he does for instance in this YouTube ad. Trump has not visited Illinois since he was elected president. Last year, in front of Chicago’s Trump Tower, Pritzker released his five-point plant to resist the president. And when the inevitable spring tornado tears through Illinois bringing death and destruction, who will Governor Pritzker call for help?
Since Trump has been monopolized as a scapegoat by Pritzker, Kennedy is left with smaller prey. One of his targets is a worthy one, at least for scorn. That one is Cook County Assessor Joseph Berrios, who is also the chairman of the Cook County Regular Democratic Organization, better known as the Chicago Machine. Pritzker owns a mansion on Chicago’s Gold Coast. He purchased a smaller mansion that sits next to his. The billionaire didn’t maintain it–and then he successfully appealed his property tax assessment with Berrios’ office because the other mansion was “vacant and uninhabitable,” saving Pritzker a bundle of cash. Berrios has been under attack by the Chicago Tribune for his assessing practices, which the Chicago Tribunesays favors the rich over the poor. Kennedy is calling for Berrios to resign as assessor, but the tiny yet powerful law firm where the longtime state House Speaker and state Democratic Party chairman, Michael Madigan, is a partner was hired to lower the property taxes of a company owned by Kennedy’s Merchandise Mart.
Last week Kennedy moved on to another unpopular target, Chicago’s embattled mayor, Rahm Emanuel.
“I believe that black people are being pushed out of Chicago intentionally by a strategy that involves disinvestment in communities being implemented by the city administration,” Kennedy said at a press conference held in a predominately African-American neighborhood on Chicago’s West Side. “I believe Rahm Emanuel is the head of the city administration and therefore needs to be held responsible for those outcomes,” he added.
Phrased succinctly, Rahm, according to Kennedy, is driving blacks out of Chicago.
For a variety of reasons, including most notably high crime and execrable unionized schools, in sheer numbers and by percentage, the black population of many large cities, including New York, Los Angeles, Atlanta, and even Detroit has been falling, as I stated in my own blog when I reported on this story. Kennedy’s claim is tin-foil hat stuff.
And what does Trump and Emanuel have to do with Illinois’ pension debacle? Nothing with the former and a just a little bit in regards to the latter, since Rahm, a longtime prominent Illinois Democrat, was silent about the festering fiscal disease that is devouring ILL-inois. As for Berrios, I’ll place the party boss somewhere in the middle.
But the role of scapegoats, using the term in the modern sense, is to defer attention away from larger problems. And Kennedy and Pritzker don’t have solutions–or if they do they don’t care to share them with voters.
Boss Michael Madigan’s use of “Illinois math” to kick the pension problem down the road isn’t an option anymore. Illinois has reached the cliff.
John Ruberry, a fifth-generation Illinois resident, regularly blogs at Marathon Pundit.
Last Monday I had a errand to run for work–which brought me to Milwaukee’s suburbs. And for the first time in five years I drove on Interstate 94 north of the Illinois-Wisconsin state line–on what is known as the Milwaukee to Kenosha I-94 Corridor.
A lot has changed since 2012. As I left a toll road south of the border and entered a true freeway–okay, to be fair, the toll road has been there for decades–I noticed a lot.
Businesses–with huge facilities–that weren’t there five years ago leap out at you. Most obvious is the massive Uline warehouse in Pleasant Prairie. The headquarters office of the industrial supplier moved a few miles north from Waukegan, Illinois into Pleasant Prairie in Kenosha County in 2010. Its “Chicago warehouse” followed four years later.
South of Kenosha County is Lake County in ILL-inois. There is no Lake County industrial boom. There is no Illinois industrial boom.
Why is that? Sure, tax incentives from Wisconsin’s Republican governor, Scott Walker have helped greatly. Illinois, when inept Democrat Pat Quinn was governor, offered tax breaks to Sears Holdings, which operates the Sears and Kmart brands, and Mitsubishi Motors, to encourage them to stay. This was a few months after a huge income tax hike was enacted. What about attracting new business? By all accounts Sears and Kmart are on life-support and Mitsubishi closed its Bloomington plant in 2015.
In 2015 Wisconsin became a right-to-work state. All the states that border Illinois except for Missouri are right-to-work states and Show Me State voters will be asked next year if they want to join the trend. Nearby Michigan has been right-to-work since 2012. Job creators don’t like unions and based on recent workplace votes, neither do workers.
Illinois has its 800-pound odious gorilla in its basement, a woefully underfunded public-worker pension system. Wisconsin’s state pensions are by most accounts fully funded. Businesses don’t like uncertainty and Illinois’ pension bomb, despite a massive personal and corporate tax hike put in place this summer, has not been defused. Not even close. Ka-boom is coming.
This summer Wisconsin and the Milwaukee to Kenosha I-94 Corridor snagged its biggest prize, the Foxconn factory. The Taiwanese manufacturer will hire anywhere from 3,000 to 13,000 employees for its facility in Mount Pleasant in Racine County. Yes, Illinois had also bid on the Foxconn plant.
The sad tale of the Chicago Teachers Pensions Fund [CTPF] goes back to 1981 when the Chicago Board of Education agreed to pick up most of the teachers’ obligation to pay into their pension plans. Out of sight–out of mind. Yes, Chicago Teachers Union, I’m looking at you! In 1995 a lost weekend of retirement funding began–it lasted ten years–and all of that money that was supposed to go to pensions instead went towards teacher salaries and nuts-and-bolts school expenses. Oh, don’t forget to throw in a calorie-loaded Chicago-style pizza buffet line of cronyism, giveaways, and malfeasance into this toxic dish.
Illinois still hasn’t completely recovered from the Great Recession–government corruption and incompetence, in my opinion, are the sole reasons for that–so naturally a partial CTPF “pension holiday” was declared from 2011-13 and the can was kicked down the potholed road again.
Two years ago Chicago property owners had to swallow the largest property tax hike in the city’s history to help shore up police and firefighter pension funds, which are even more underfunded than the teachers’ pensions. And last week Chicago’s embattled mayor, Rahm Emanuel, released his 2018 budget proposal, which of course includes tax increases. When asked if more tax hikes were coming, Emanuel dodged the question.
Chicago is the only large American city with a shrinking population.
As bad as Chicago’s financial situation is, the reality is probably far worse because Illinois Math is very likely disguising the wretched truth.
Decline and fall.
Here is some more Illinois Math for you: The free-market Illinois Policy Institute says, “There are now more inactive employees and beneficiaries in CTPF than there are active workers paying into the pension fund.”
Someday there will be a new Illinois Math equation. Two plus two won’t equal five–it will equal just one.
“And it was inevitable that some of these people pushed back…”
Ray Bradbury, The Martian Chronicles.
Overtaxed residents of Cook County, where Chicago is, are finally waking up. After decades of being slapped by tax after tax–folks are fighting back.
Last week the Cook County Board of Commissioners voted to repeal a hated penny-per-ounce sweetened beverage tax, one that until the repeal takes effect on December 1, places a 39 percent tax on a $4.88 12-pack of soda pop.
“The pop tax is dead, but the issue is bigger than the pop tax,” Cook County Commissioner John Fritchey (D-Chicago) told the Chicago Tribune’s John Kass last week. “The issue here is that the people of Chicago and Cook County are not used to having their voices heard and making a difference, with public outrage forcing an elected body to reverse course. This is something.”
Cook County Board President Toni “Taxwinkle” Preckwinkle (D-Chicago) last year had to issue a rare tie-breaking vote last year to enact the soda tax, which took effect two months ago. Last week commissioners voted 15-2 to kill it.
Over the years Cook County imposed with little pushback a 0.75 percent sales tax, along with tobacco, gasoline, and liquor taxes, as well as an additional one-percent sales tax. Okay, there was a rebellion with that last one. Taxwinkle defeated her unpopular predecessor in a Democratic primary on the promise to repeal it–and she followed through. Then five years later she led the effort to successfully bring it back.
Chicagoans pay the nation’s highest sales tax rate.
Meanwhile Chicago residents have been pulverized by repeated property tax hikes to mainly pay for underfunded municipal worker pensions. Illinoisans just got socked with a 32 percent income tax increase, much of that money will go to pension obligations. And Taxwinkle has said that some of that soda tax money is needed for county worker pensions.
Taxwinkle dismissed criticism of the pop tax, which she ludicrously claimed was a public health measure, as the message of Big Soda. Yes, the American Beverage Association’s Can the Tax Coalition did pay for television, radio, and internet ads calling for a repeal. But Taxwkinkle enlisted the aid of “Nanny” Michael Bloomberg, the billionaire former New York City mayor, to pay for pro-soda tax ads. And after the Illinois Retail Merchants Association delayed imposition of the soda tax, Taxwinkle quickly sued the group for $17 million in lost revenue, exposing her “it’s for our kids’ health” argument as a lie.
No figures are available, but anecdotal evidence is abundant that Cook County residents in droves have been driving to collar counties and Indiana to purchase pop since collection of the soda tax began. And does anyone think they were only buying soda on these grocery runs? And gee whiz, do you think they noticed that gasoline, and well, a whole lot of other things are cheaper outside Crook County?
Fill ‘er up. Oh, grab a case of beer too! Oh, and buy that stuff as long as we are here. And this stuff too!
The repeal of the sugary drink tax repeal is a big victory for long suffering Cook County residents such as myself. Cook is heavily Democratic. Hillary Clinton won nearly three-quarters of the vote in last year’s presidential election. Cook County hasn’t had a Republican president of the Cook County Board in nearly five decades, which is when the county’s population peaked.
Yet people in one of America’s bluest counties screamed “Enough” and they pushed back.
But this victory is only partial. The soon-to-be-canned soda tax is only a symptom. Voters need to understand why Taxwinkle needs to spend so much. Pensions for unionized retirees are only part of it. Taxwinkle has been building a massive “free” public-health care network that caters to the jobless and Cook’s burgeoning illegal immigrant community since taking office seven years ago.
Chicago is a sanctuary city and Cook is a sanctuary county. And last month our state’s Republican governor, Bruce Rauner, signed a bill making Illinois a sanctuary state.
These may be the type of governments that Illinois voters want. If it is, then so be it. But prepare to pay dearly for it too.
John Ruberry, a fifth-generation Cook County resident, regularly blogs at Marathon Pundit.
I’ve written a couple of columns at Da Tech Guy, one here and one here, about Cook County’s hated one-cent-per-ounce soda tax championed by County Board President Toni “Taxwinkle” Preckwinkle, a left-wing Democrat. But the question I’ve been only alluding to here and on my own blog is this one: Why is this money needed?
And the soda pop tax is only the latest outrage. Like other counties, Cook levies property taxes, but it also mugs residents and anyone who buys something here with a 1.75 percent sales tax, along with gasoline, liquor and tobacco taxes.
(Those cheers you just heard come from retailers with shops on the other side of the Cook County line.)
County government in most places means the operation of a court system and a jail, providing law enforcement, particularly in unincorporated areas (Cook has few of those), and road maintenance. But in Cook County–Chicago is its seat–county government means building a massive health care network, the Cook County Health and Hospitals System, paid for by long-suffering taxpayers such as myself, and one that caters to the estimated 300,000 illegal immigrants living here.
A DNA Chicago article about plans for a new county health facility on Chicago’s Northwest Side that will replace a much smaller one, contains a revelation on where all of that tax money is going.
Once it’s running at full capacity, Carey [a county official] expects the site — one of 17 free clinics [emphasis mine] operated around the county — to host about 37,000 doctors’ visits annually, she said.
Keep in mind, this is just one clinic.
The proposal has been brewing since at least 2015, when doctors told newly elected Cook County Commissioner Luis Arroyo Jr. that they had “outgrown” the Logan Square facility, Arroyo said.
Instead of expanding it, county health officials began looking for a new location, where more immediate neighbors could take advantage. They landed in Belmont Cragin, whose estimated 12,000 undocumented residents [emphasis mine again] has one of the largest clusters of uninsured people in the city, Arroyo said.
Leftism is expensive. Sure, some of what is spent on county health care for illegal aliens is reimbursed by another arm of government. Emergency visits at county-run Stroger Hospital come to mind as does the expensive state-funded All Kids program. Hey, they get me coming and going in Illinois, that’s for sure. But who pays for the salaries and generous benefits for the county doctors, nurses, dentists, and administrators? Not Kim Jong Un, that’s for sure.
Princely but underfunded county worker pensions are another reason “Taxwinkle” needs her taxes.
As a political blogger I natural follow current events. But I don’t recall the conversation about the need for Cook County to transform itself into a welfare state, particularly for illegals, as well as a retirement program for not-working-so-hard county employees. But that’s what county government has evolved into here.
And taxes and spending keep soaring, even though the population of Crook County, oops, I mean Cook County, peaked around 50 years ago, when the county last had a Republican running it and when none of these taxes existed.
Yes, leftism is very expensive.
John Ruberry, a fifth-generation Cook County resident, regularly blogs at Marathon Pundit.
Of America’s largest cities only Chicago has a declining population. So far this year–as it was for all 2016–more people were murdered in Chicago than in New York City and Los Angeles.
On the surface it seems that Chicago has the best government that money can buy. The Watchdogs of the Chicago Sun-Times reports that one-third of municipal workers of America’s third-largest city banked over $100,000 last year. Meanwhile, just 11 percent of Cook County workers–Chicago is the county seat–earn more than $100K. The numbers are similar for state of Illinois employees.
Thirty-six Chicago payrollers collected more than Mayor Rahm Emanuel last year.
Overtime run amok partially explains the problem. Generous campaign contributions from public-sector unions to politicians explains much more of it.
The median income for Chicagoans according to the US Census Bureau in 2015–the most recent year that is available–$63,153.
In Chicago it’s great to be part of the ruling class. But Chicago’s roads are crumbling, barely one out of four of its students in its government schools read at grade level, its bond rating is the lowest among major cities, and businesses lack confidence in Chicago and Illinois as a whole. If you are part of Chicago’s ruling class you might view high taxes as a downpayment on your next paycheck or your retirement, but Chicagoans endure the nation’s highest sales tax rate and they were slugged with the highest property tax increase in the city’s history to fund public-worker pensions.
Yet Chicago’s public pensions are the worst-funded among America’s biggest cities--at a rate of just 25 percent of its obligations. But the cruel joke may be on these well-compensated public-servants. Despite the strong pension protection clause in the Illinois constitution, a pension “haircut” seems unavoidable for retirees. Michigan has similar wording it its constitution, yet Detroit municipal retirees saw their pension checks cut after the Motor City declared bankruptcy.
Chicago’s decline and fall continues. But hey, at least some people for now are making a good buck off of the rotting corpse. Let the good times roll.