Sunday, May 31, 2015

Springfield Rush Job

Rahm working hard on the weekend before the state legislature bails out for the summer:
  • Mayor Rahm Emanuel’s plan to fix Chicago’s police and fire pension systems cleared its first hurdle at the Capitol on Friday, an approach that requires all city revenue from a Chicago casino to be paid into the funds and gives the city more time to restore the funds’ financial health.
The key to all of this is ....a massive delay in paying what the funds have been shorted for years:
  • Key to Emanuel’s plan: Instead of requiring the city to pay a whopping $549 million more for police and fire pensions next year, payments would increase by just $330 million. That would provide the mayor some breathing room as he tries to put together a 2016 budget this fall.
And of course, there's always a catch:
  • The catch, of course, is that Chicago does not yet have a casino. Backers of gambling expansion are trying to put together a deal that would bring one to Chicago and other cities as well as provide slot machines for horse racing tracks, but that is unlikely to be accomplished before lawmakers go home for the summer following Sunday’s scheduled adjournment.
And a lonely voice of reason:
  • Rep. Jeanne Ives, R-Wheaton, said the measure was repeating past mistakes by putting off payments and amounted to an "underfunding" of the system. She questioned the wisdom of relying on money from a casino that has yet to be approved.

    "You're essentially in fantasyland here assuming you're going to get a casino," Ives said.
We'll see if Rauner plays ball with his wine-tasting buddy Rahm and signs anything rushed through the House and Senate at the last minute.

What about this provision though?
  • The legislation also includes provisions to ensure that retiring police officers and firefighters who are at least 50 years old and served for 20 years or more get annual benefits equal to 125 percent of the amount earned by people living at the poverty level, as determined by the federal government.
Is that a ceiling or a floor? Is that for new hires who aren't getting the pension as defined under old hiring rules? Is that calculated on everyone on the job retiring and moving to Appalachia? Or Englewood? Because that sounds suspiciously like a reduction in the promises of what we and thousands of others were hired under. How about some clarification?



Anonymous Anonymous said...

What's lower than junk bond status?

5/31/2015 12:16:00 AM  
Anonymous Anonymous said...

SB0777 (interesting number)

Beginning with the monthly annuity payment due on January
1, 2016, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 2016,
at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
2016, shall be no less than 125% of the Federal Poverty Level.
Beginning in tax levy year 2015, the city council shall levy a
tax annually at a rate on the dollar of the assessed valuation
of all taxable property that will produce when extended an
annual amount that is equal to no less than the amount of the
city's contribution in each of the following payment years: for
2016, $420,000,000; for 2017, $464,000,000; for 2018,
$500,000,000; for 2019, $557,000,000; for 2020, $579,000,000.
Beginning in tax levy year 2020, the city council shall
levy a tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce when
extended an annual amount that is equal to no less than (1) the
normal cost to the Fund, plus (2) an annual amount sufficient
to bring the total assets of the Fund up to 90% of the total
actuarial liabilities of the Fund by the end of fiscal year
The moneys paid to units of local government under
6 this subsection (b) for electronic gaming facilities and
7 riverboats and casinos authorized under subsection (e-5) of
8 Section 7, other than the riverboat or casino authorized under
9 paragraph (4) of subsection (e-5) of Section 7, shall be used
10 for capital expenditures or public pension payments, or both.
11 From the tax revenue deposited in the State Gaming Fund
12 under this Section, an amount equal to 5% of adjusted gross
13 receipts from riverboat or casino gambling operations
14 authorized by paragraph (4) of subsection (e-5) of Section 7
15 shall be distributed as provided in subsection (b-1) of this
16 Section.
State gets paid 1st....and then...
(ii) 80% shall be divided equally among the following
9 communities: Village of Beecher, City of Blue Island, Village
10 of Burnham, .......
(b-1) The moneys held in the State Gaming Fund pursuant to
2 this subsection (b) of this Section and subsection (b-1) of
3 Section 12 from riverboat or casino gambling operations
4 authorized by paragraph (4) of subsection (e-5) of Section 7,
5 shall be paid monthly, subject to appropriation by the General
6 Assembly, as follows: (i) 20% shall be paid to the municipality
7 in which the riverboat is docked or the casino is located...

5/31/2015 01:41:00 AM  
Anonymous Anonymous said...

The 125% of poverty makes no sense. If there is no money the guarantee is worthless. If there is money the guarantee is pointless.

Once again, delaying the needed funding, only make the problem worse.

The current pensions are unsustainable.

5/31/2015 01:56:00 AM  
Anonymous Anonymous said...

Better start selling all your expensive toys, summer homes and spoiling your family with your hard earned pay. Rahm and Rauner want you living like dogs. And what about our military men and women who served our country and were given preference to join this job, is that anyway to treat them.

5/31/2015 03:29:00 AM  
Anonymous Anonymous said...

Well looks like I'm staying until 63. Sorry young guys and gals, by the time you get off midnight snack you'll all have gray hair if your own. I hate this city.

5/31/2015 06:05:00 AM  
Blogger I Fart In Your General Direction said...

So who's the asshole that thought'd be cute to number this Illinois Senate Bill "777"?

Perhaps it's a subliminal attempt by Tiny Dancer & Co. to again say "fuck you" to first responders, a subtle reference to the 7s on a slot machine, a reminder of just how unlikely it is too see all three 7s on the payline, a grim predictor of not seeing your cash.

There WILL be hell to pay if I'll only be getting 125% of the poverty level. Consider that gospel.

5/31/2015 06:17:00 AM  
Anonymous Anonymous said...


5/31/2015 06:21:00 AM  
Anonymous Anonymous said...

Do not let this ass clown off the hook with "Whimpy " promises of I gladly pay your persion on Tuesday if I can steal it all today ...F the casino...F waiting for it to be built.....F waiting in another line to get paid WHAT IS OWED US BY CONTRACT AND BY LAW.... F getting stipulations that would further hinder our collection until after his cronies line their pockets......F giving Rhammy any additional control to screw us with politico bulls#it. F letting him continue to spend, spend, spend all the while we cut at the knees....he has money for de Paul, money for Maggie, money for ohare, money for George Lucas and his star wars crap......he has money for Mccormick place....he has money for miles of absolutely unused bike paths on routes that are deplorable....he has money to close public schools so that he can let his friends build and run charter for those stupid blue bikes and all the costs that surrounded for MORE red light cameras where there aren't any schools or parks......can any of you defer your tax payments until 2030 or later ...yeah I didn't think F him
Dyla Hata

5/31/2015 06:47:00 AM  
Anonymous Anonymous said...

The Mayor is wise.

5/31/2015 06:59:00 AM  
Blogger Mr. SouthSide said...

I can guarantee you that no clarification will be forthcoming.

5/31/2015 07:24:00 AM  
Blogger john said...

In 2008 I commented about the pension fund and how it would be belly up by 2020 or so. Some time last year I commented that the huge payment due from the city would never be paid. With the lowering of the payment, the fund will somewhat stabilize and a guesstimate would be 2026 2028 or so depending on market decisions and investment decisions. The casino deal? I would not count on it if I were going to retire soon.
The comments about the union negotiating the pension benefits away- remember it has been done in the past when Mr. Donahue " forgave" the city about 23 million. Stay safe and max out your deferred comp.

old retired guy.

5/31/2015 07:51:00 AM  
Anonymous Anonymous said...

Dean nothing for or from you the media said police union agreed how many on this insignificant blog agreed? Dean u agreed not us! Did you put it to a vote with membership? Nope! Your sneaky will give you that, do you Dean always use the back doors? What's in it for you sir?

5/31/2015 08:20:00 AM  
Anonymous Out of the car Motherfucker!! said...

Congrats to you guys and gals that voted to re elect this guy!! Now it's going to be legal to short the city's contributions to the pensions! You better start saving your money!!!

5/31/2015 08:59:00 AM  
Anonymous Anonymous said...

Here is the link to the amendments to the Senate Bill 777

My bet-very few will read it even though it will affect almost every copper working today.

There is nothing in there to change the pension for those that have or will retire, and are born after 1955. Everyone else gets a 3% raise per year. Those born after 1955 still only get 1.5% per year after age 60 and only for 20 years.

5/31/2015 09:57:00 AM  
Anonymous Anonymous said...

I find it hilarious that cops will allow this to happen yet the fuck again. You have massive voting power, then you willingly give money to Daley's nephew, nothing happens to him, money gone. Yet people on welfare and LINK and other services are villified. Time and time again Daley won by landslides so did Madigan. Your pension funds are in trouble. You rip the teachers but what are you guys doing about it? Are you really going to allow Rahm to pass this bullshit casino legislation? It does not make sense. There are already casinos in the area, so creating a new one does not guarantee a damn thing, let alone new money. Only the poor and senior citizens go to casinos. The rich play poker in private parties. Garcia would have been a better choice but fear mongering allowed Rahm to win and now we all will pay. Stay safe on the streets.

5/31/2015 01:23:00 PM  
Anonymous Anonymous said...

I like Mr. Rahm.

5/31/2015 01:48:00 PM  
Anonymous Anonymous said...

To the tune of the who's Tommy!

Deano can you hear me?
Deano can you hear me near you?
Deano can you feel us?
Deano can you feel us removing you?

Don't do it Dean or do it have your resignation papers signed unless your a coward!

5/31/2015 01:52:00 PM  
Anonymous Anonymous said...

This is more fuckery by Rahm.
He's hellbent on destroying our pensions.

5/31/2015 02:28:00 PM  
Anonymous Anonymous said...

Dean wanna explain on your misspelled blog or you just want to resign today? If anyone in your family gets anything for you sir selling us out it will be pathetic!

5/31/2015 03:09:00 PM  
Anonymous Anonymous said...

Great,i better go out and get my masters,masters,masters degree!

5/31/2015 03:37:00 PM  
Anonymous Anonymous said...

Yes, there should never have been "gold braid" pensions. Not only because it's not a wise idea for the fund, but because it's only for the connected. The average joe has no chance at the massive "gold braid" pension. It was a Daley thing to keep his machine running by greasing hands with gifts. Just look at the pension some of these Capt.'s and higher ups are getting for nothing. Some more than double in retirement than a current working police officer makes now. All due to clout. That's just wrong all the way around. Look at the names of these retired fat cats and you will see the clout.

5/31/2015 04:28:00 PM  
Anonymous Anonymous said...

This bill was presented before the casino bill. Therefore the casino may or may not be presented and may or may not pass. This bill was heavily endorsed by DEAN ANGELO of police officers FOP7 and TOM RYAN of firefighters LOCAL2. None of the PBPA units endorsed the bill. Captains , Lieutenants and Sergeants all denounced it withdrew any support of the bill.

5/31/2015 05:08:00 PM  
Anonymous Anonymous said...

If this becomes law I'll stay till 63yoa and not do a thing that resembles work.

But this will tied up in the courts for years.

5/31/2015 05:18:00 PM  
Anonymous Anonymous said...

Get rid of gold braid!!

5/31/2015 05:19:00 PM  
Anonymous Anonymous said...

Clarification? Wondering if Rauner will sign this "kick the can legislation?" Ask Dean! He's on board with it. You can say whatever you want about Dougherty, I know that he never ever ever would have gone along with this.

5/31/2015 05:30:00 PM  
Anonymous Anonymous said...

The courts have upheld the Illinois State Constitutional provision that pensions can not be impaired or diminished! Rahm is stuck with that provision.

5/31/2015 07:07:00 PM  
Anonymous Anonymous said...

MANY THANKS to the poster at 09:57:00 am on 5/31/2015 for providing the link to the amendments to Senate Bill 777 regarding our pension. it's worth repeating:

I took the challenge and read through most of it. not easy but very telling as to what Rahm may be up to. to cut to the chase read pages 12, line 17, and through page 14

"Any proceeds" from the operation of a casino will go to the police fund. Why doesn't the language say "All" instead of "Any"? The language is not clear that all proceeds beyond operating costs will go to the pension fund. "Any" means just that: any money, not all money.

Also, pg 13, if the city does not make its required payments by the end of the year as required, the pension fund can file for relief in court, but amazingly (and against our interests) the court does not have to require the city to pay its obligation. all the amendment says is that "the court may [not will] order a payment schedule to enable the city to make the required payment WITHOUT SIGNIFICANTLY IMPERILLY THE PUBLIC HEALTH, SAFETY, OR WELFARE [emphasis added]." page 13, lines 15-18. This sounds like the language the city will use to keep from having to pay its obligations to the pension fund in 2020. wasn't this the argument that the city and lisa madigan pushed before the court, that the state and city could not afford to make payments because it would imperil public service? this bill is a legal maneuver that will kick the proverbial can down the road again, and the Illinois Supreme Court will be hearing motions on this again in 5-7 years while our pension fund becomes more and more depleted.

I'd would like to hear or read others' take on this.

Time to check in with our union leaders on this. Time for others to read this too. This is our future.

5/31/2015 09:54:00 PM  
Anonymous Anonymous said...

Though the Illinois Constitution guarantees our pension not be diminished, and the Illinois Supreme Court just upheld that provision for the state pensioneers.......what is this caveat in this new 777 bill meant to do? This 125 percent of poverty level crap? In 2015, for one person receiving this, it is a "whopping" $14,588.00 yearly amount........are these politicians going to do an end-run around paying pensions in full?
Why on earth is this little tidbit even in this casino deal crap bill they are trying to pass? What kind of thievery are they up to now? Where the helllll is our union on this?

5/31/2015 09:59:00 PM  
Anonymous Anonymous said...

Start emailing Madigan and Cullerton. This needs to be fixed, we need a better budget. They have been in office long enough to shoulder blame for our states economic condition. They need to let Rauner try to recover from the mess they put us in!

6/01/2015 12:33:00 AM  
Anonymous Anonymous said...


The following excerpt is taken from Senate Bill 777 that just passed and is headed to Gov. Rauner for approval. The governor's approval or veto is meaningless as this bill passed with veto proof majorities. This is the bill that reduced by several hundred million dollars the City of Chicago's Actuarially Required Contribution (ARC) to the pension fund. What I am showing you here is new language that was quietly inserted into the bill. THIS LANGUAGE IS VITALLY IMPORTANT AND POTENTIALLY RENDERS THE CITY FREE FROM EVER PROPERLY FUNDING OUR PENSION!

"...Any payments required to be made by the city pursuant to this Section are expressly subordinated to the payment of the principal, interest, premium, if any, and other payments on or related to
any bonded debt obligation of the city, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from any funds collected or received by the city. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law, city ordinance, or bond indentures, into debt service funds or accounts of the city related to such bonded obligations, consistent with the payment schedules associated with such obligations."

It appears that this new language lets the City of Chicago off the hook from any court ordered payments to our pension fund. It clearly states that any payments to the pension fund are "SUBORDINATED" to payments for any bonded obligation debt outstanding or to be issued. In essence, the City will pay any other outstanding debts before it pays any court ordered pension payments due to failure to comply with the new payment schedule contained in this new law!

Senator Pamela Althoff (R - McHenry) questioned the co-sponsor Senator Cullerton regarding this new section. Senator Cullerton then did something curious. Senator Cullerton asked to pull the bill for a private discussion with Senator Althoff regarding this issue. A short time later, Senator Cullerton brought the bill back for debate. The bill was debated along party lines but this issue was never mentioned again. The bill was summarily voted on and passed along party lines. Several times during the debate, Senator Cullerton stated that this bill was crafted with police and fire union representatives.

I am writing this so that fellow coppers can be made aware of the following:
That our lawfully required pension funding mechanism may have been irreparably damaged and that our Union Representation was complicit in this destruction!

The next FOP meeting is scheduled for Tuesday, June 16th at 7pm. I hope to see you there.

6/01/2015 12:44:00 AM  
Anonymous Anonymous said...

2015 poverty level for 1 is 11,700
2015 poverty level for 2 is 15,390

6/01/2015 06:39:00 AM  
Anonymous Anonymous said...

Anonymous Anonymous said...
Dean wanna explain on your misspelled blog or you just want to resign today? If anyone in your family gets anything for you sir selling us out it will be pathetic!

5/31/2015 03:09:00 PM

I know that Home Depot sells tar and wooden rails but where can we get some feathers? This whole crew needs to be run out of town!
Fuck them and anyone that voted for them!

6/01/2015 06:46:00 AM  
Anonymous Anonymous said...

What was the point of FOP being involved in the negotiations? Looks like we held all the cards and walked away with nothing. Not even 3% COLA for those born after 1955. WTF!

6/01/2015 08:02:00 PM  
Anonymous Anonymous said...

Anonymous Anonymous said...
Better start selling all your expensive toys, summer homes and spoiling your family with your hard earned pay. Rahm and Rauner want you living like dogs. And what about our military men and women who served our country and were given preference to join this job, is that anyway to treat them.

5/31/2015 03:29:00 AM

Already done.

I sold everything I own and put it all into corn futures. I'll just live in a tent in the park until I can sell all my corn for 100 times the purchase price.

Food is the future!

6/01/2015 08:06:00 PM  
Anonymous Anonymous said...


Dean you stupid fuck! How the fuck can you agree to this! We went from the front of the line to the end of the line for City debt obligation. With the Supreme Court ruling you had the City by the balls and you totally fucked up. You let them off the hook for the 550 million and you jeopardized our pension funds future. You ignorant piece of shit. If I am ever a witness to you getting your ass kicked or worse I will turn around and walk away you don't even deserve a 911 call.

6/02/2015 12:41:00 PM  

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