So... I'd been a big fan of Pritzker before this year but this is semi-heartbreaking and should be for anyone who was hoping for some chance of a recovery in Chicago / Chicago's finances. I hope to be proven wrong but he also appears nowhere to be seen on saving regional transit. Maybe businesses want to invest in a cold Houston with horrible finances?
https://www.chicagobusiness.com/opin...finances-op-ed
"In a remarkable Friday afternoon news dump, at the end of last week Gov. JB Pritzker signed a controversial pension bill that will increase pension benefits for many Chicago policemen and firefighters. "
Key points:
- HB 3657, which Pritzker signed on Friday, increases pension benefits for Tier 2 Chicago police & firefighters by about $11 billion. The more important figure, Net present value of the payments, is $3.9B. Funded ratio falls from 24% to 18%.
- Bill had been sold as a "fix" to safe harbor rules but if you look at the details, its rather obvious that safe harbor issues are an edge case with a simple and much cheaper fix (just make sure pensions benefits are at least social security) and this is simply a sweetener for the union with no benefit to the city.
- There are 3 other Chicago pension funds including the CPS fund with tier 2 pensions. This sets a strong precedent for those pensions to be "reformed" as well.
- The Illinois constitution treats any increase in pension benefit as a contract. Basically, you can increase pensions (even in this where its not even part of a contract negotiation, just a gimmie from the legislature) but never reduce them. Only options are municipal bankruptcy (fun fact, illegal in Illinois!

) or an IL constitutional amendment.
Anyway, its just sad. It seems like any time Chicago makes progress (look at the amazing reduction in crime we should all be celebrating) the IL legislature cooks something up to stop it. My guess is next year, they'll wipe out the 2011 reforms made in the other 3 pension funds. I feel like some tax increases to fund the pensions would have been fine and reasonable but if the legislature is just going to keep increasing the liability, what's the point anymore.
Anyway, just disappointed, I thought Pritzker was supposed to be the adult in the room. Maybe he's focused on his 0% chance to be the Democratic nominee.