Each Chicagoan Owes $140,000 To Bail Out Chicago Pensions

As of the 2017 City of Chicago Actuarial Report, each Chicagoan would have to pony up $140,000 to make pensions solvent.

WirePoints reports Chicago Mayor Rahm Emmanuel wants a Constitutional Amendment to address Illinois Pension Woes.

The mayor's plan cannot possibly work because Chicago is far too deep in pension debt to do anything but default.

Nonetheless there is some benefit in the idea for the simple reason it may force the legislature to think about things as they are, not as they want them to be.

Kudos to Rahm Emanuel for broaching the subject of a constitutional amendment for pensions and for using cost-of-living adjustments as an example of why the amendment is so necessary.

The possibility of an amendment in Illinois has experienced a revival of sorts since Arizona recently amended its constitution for a second time. Already, the Chicago Tribune, Crain’s and Mayoral candidate Bill Daley have supported an amendment in some form. And COLAs are finally being recognized as a key driver of Illinois’ pension crisis.

However, it would be a mistake – as some may be tempted to do – to think that an Illinois fix is as simple as COLA reforms via a narrow, Arizona-style constitutional amendment. Instead, Illinois needs an amendment that’s as broad as possible if it hopes to fix the pension crises playing out all over the state.

Collectively, Illinois governments owe more than $400 billion in pension debts alone, based on Moody’s most recent methodology.

Its a particular problem for Rahm Emanuel, as Chicagoans are the most swamped of all. Each city household is on the hook for $140,000 in overlapping state and local retirement debts.
Piecemeal Approach Cannot Work

WirePoints discusses changes in Arizona and accurately concludes piecemeal changes won't work for Illinois.

Here's a hint, they won't work for Arizona or any other state or municipality either. Ridiculous COLA adjustments are only a tiny piece of the problem.
More Substantial Fixes Needed

WirePoints concludes and I agree:

"Any Illinois amendment should repeal the protection clause and say expressly that the state may modify past and future pension benefits notwithstanding the state constitutional contract clause or anything else in the Illinois constitution that might conflict."

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