Good Question
A rumor in the comment section....whispers over at City Hall that Conehead is saying the word "bankruptcy" to people.
A bunch of comments refute that, correctly pointing out that the process isn't permitted under State Law as currently written. The City would have to open the books across the board, letting daylight into places that daylight hasn't seen in decades. And from a purely accounting point of view, the City would have to prove that liabilities exceed obligations, and they'd have to prove it to a forensic accountant most likely at the federal level, which wouldn't be pleasant under the current administration.
No doubt some of this was triggered by a recent article in The Chicago Contrarian:
First comes moral bankruptcy. Then comes fiscal bankruptcy. That’s the order of things, and if you’re looking for a real-time case study, look no further than the City of Chicago.
Chicago has been morally bankrupt at least since the advent of the Lightfoot administration, when ideology, incompetence, and cowardice collided to produce one of the most disastrous mayoralties in city history. But in fairness to Lori Lightfoot, she was just one link in a long chain of political cowardice. Her predecessors and their compliant City Councils laid the groundwork: authorizing pension holidays, underfunding obligations, kicking the can down the road, and pretending the math would never catch up to them.
It has. And the bottom of the cliff is now in sight.
As usual, go read it all. It seems to cover all the bases - good, bad, ugly and really really ugly.
Labels: money questions
89 Comments:
Bankruptcy (eg insolvency) is what the Communists want and work towards. They want this to happen on purpose.
…maybe he meant his own personal bankruptcy. I mean if he couldn’t pay a water bill - it’s not impossible.
That shows you how little this Administration knows!! Every TIF fund would have to be exhausted, every hidden City/Aldermanic Slush fund Exhausted, City Property not being used would have to be SOLD… Shit In Detroit they had to sell Art off the Walls hanging in their Art Museum!!! You just can Yell out (Michael Scott) Style I DECLARE BANKRUPTCY!!!! Lol There is A LOT more to it!!!
Democrat’s gave a lot of money to migrants. They should have paid down city debts.
Detroit was afraid to open books......
Same here.....
Come on ...this is a easy one....
Just raise taxes and fee's....What are .... They.... going to do...Complain ?
Add in a steep late fee too.
When a city's budget is in deficit, there are not enough incremental tax revenues, and if investors are no longer willing to lend the idiots in charge more money to do further damage, adios amigos. Would anyone really be surprised if Chicago became the next Detroit or Puerto Rico? The good news is that public pensions in Illinois are generally protected from being diminished or impaired in municipal bankruptcy due to the state constitutional provision and judicial interpretations, if that were to occur.
Open the books, baby
1. These past and present assholes will never substantially fund the pensions of any first responders. Never.
2. Only a Trump style intervention, via the article described avenues, can.
3. 100%, file for corporate bankruptcy, shit brain.
Spending over a billion dollars on the banana farmer asylum seekers didn't help matters. At a 26% approval rating Conehead is just a lame duck right now. He's worse than bug eyed Groot.
Brandon Johnson could be filing his own personal bankruptcy. He's not good at "maths". Or maybe he had Officer "Meechie" do his taxes for him? {smdh}
Why can't a outside agency order a audit and publish where all the tax dollars go? oh yeah I forgot this states corrupt too.
Do the feds or the state take it over if bankrupt?
WOW!! A scary but very real problem.
I think I’m moving. I can’t deal with these asshole elected fools fucking up everything and never held accountable.
If you're a city worker, and cops excepted, all you need do is look in the mirror. You've jobbed the system for years and years. Yeah, your union got you good contracts, but they made more than you ever would or will, multiples more, and they'll keep theirs. It was always a house of cards.
Nobody forget the parking meter fiasco. Still to this day it’s Unfuckingbelievable they did this to us.
Sadly, none of them will ever be held accountable for their piss poor management of our once fair city...They catered to every minority, and neglected the important issues that were right in their faces. They allowed generations of children to grow up ignorant, thinking that they are always victims. Most of these victims graduated from a public school system, so they cant read or write. Maybe they are victims. Just not victims of what they believe they are.
Fuck you. PAY ME.
Plus 5% Vig a month asshole.
What do you mean “cops excepted”?
How many are stealing a paycheck? How much blatant theft is there with the OT?
Rule1. Cut Deputy positions in all City Departments by 30 percent. Rule 2.Cut all money to illegals by 100 percent. Rule 3. Cut Public housing money by 75 percent. Rule 4. Eliminate the violence reduction gang members/social workers by 100 percent, they are useless.Eliminate all raises until you balance the budget. Bye Brandon, and congratulations on only 1 MASS shooting this weekend.
BK would be the best possible result for the law abiding residents of Chicago. Everything made public and every expenditure authorized by a Federal Court. Imagine the fraud that would be uncovered. The city would be on the doorstep of it right now but for CV19 funds pushing things out. Too bad the massive spending on illegals accelerated the push to the abyss. All too predictable.
Also Skyway.
The matter goes to Federal Court which may appoint monitors.
Yes, the end is coming in only a few short years. The cities financial status is unsustainable.
There is a large amount of hand wringing from the wining Republican minority here in Illinois. But things are going as planned in the birthplace of the Obama Agenda.
Bankruptcy of ANY government entity is just another step towards the REDISTRIBUTION of WEALTH. The AUDACITY of HOPE that the “have nots” can simply take from the “haves.”
Simple plan really. Tax and fine anyone that works hard, diligently pays their bills, and saves for their future. THEN. Increase the taxes and fines. AND REPEAT, REPEAT, REPEAT.
Meanwhile. Rather than cut public spending, pay off public debt, or fund pension obligations………KEEP SPENDING. Also known as REDISTRIBUTION of the wealth.
If given an additional opportunity of extended time at the national level, the Obama Agenda will look something like this….Following the current White House administration with 8 years (or more!) of a Democrat administration. Look for the “redistribution of wealth” to change the tax laws that apply to retirement savings. After all the “have nots” were denied the “privilege “of saving some of the money they didn’t work for. INCREASE the taxes on IRA’s, 401K’s, ect. Spend, er I mean, redistribute that money with even more imaginative entitlement spending.
Your grifter's panties are needing a washing.
There are many employed by our city, and county, and state, who earn their wages, however much you yearn to blame things on unions' providing for their memberships' better results then could be achieved without them.
It's the graftings, the schemes and scams of the hogs of varieties well known, who first dun the taxpayers to fill the troughs to overflowing, then gorge themselves and complain that more is never enough.
You know this. You have mirrors. Step away from the trough, wipe the gorge spew from your eyes, gaze into the reflection of your greedy, duplicitous visage.
Have you paid your water bill, yet?
Sell the parking meters, oh never mind.
Sell the Skyway, oh never mind.
Well O'Hare and Midway would bring in a fortune that might last 5 years.
26%?? Thats way too high!
FOP lets get started by mounting a campaign to eliminate gold braid pensions and save millions. If you appointed a rank you are not entitled to a pension at that rate. Your pension should be equal to the last test you passed!
In the past, big city Democrat mayors have been allowed to lie, cheat, and steal, and Washington has bailed them out. The bailouts won't happen under President Trump. Bankruptcy or something similar is a good possibility.
Not only is Chicago a broken city its also a bankrupt city. All done by the Democrat voters.
Mayor Mumbles Daley got paid....What's the problem ? ? ?
CTU Stooge here...
This is why teachers need a raise, at least 25 % please....It's for the kids.
...and selling the Skyway was just the icing on the Parking Meter cake
This is what happens when you vote for incompetent people...people who NEVER had experience running a Major City or even being in politics. Look at this asshole we have now..couldn't even pay his own bills, what does that tell you. Stupid Voters. Glad Im out of here soon.
The only ones making out with a pension are the boomers and a few older GenX'rs. Everyone else is going to get fucked.
Bankruptcy seems to be a key word for Democrats. They think it solves all problems.
Now, kees me you fool!!!!
Have a plan. Get out of Illinois asap. Increase investments with the money you save on property taxes. I’ve saved about 26k in property taxes by moving to a deep red state four years ago. Grow it, don’t spend it. No 10k vacations. No ridiculous vehicles. You’ll be ok.
They will never open the books and show we re stealing from one area to give to another. Also, this gives a federal bankruptcy Judge power over where money will now go and from what. No one will let that happen. Forces stronger than the incompetent and ignorant Mayor would never allow it.
He's morally bankrupt, no doubt.
City had plenty of money. Just ask the "migrants".
You know what might help the pension? Getting more police officers on board paying into the pension. But, the CPD brass only see red. Look at the Recruitment and RETENTION Unit. The brass demands 5 years in grade for this unit. No one else in the department could speak better than those that got rehired about why leaving CPD is rarely a good idea. The brass purposely made that NOJO out of reach of rehires. Rehires would be ideal candidates for retention of CPD officers. Yet the department hates rehires so much they won't let them apply.
Raise property taxes sell off all parks and the lakefront close schools cut city services don’t care. F u pay me.
Most of Chicago’s priceless artwork isn’t owned by the City anymore. It has all been moved to 503c3 charities to insulate it from bankruptcy.
Don’t think for one second the bigger plan isn’t already in motion…
Mayor has no idea what bankruptcy entails If it is even legal and he would have to open the cities books. He is talking nonsense
Daley is already getting the walker and drool cup ready in case they ask to talk to him.
Wrong, the pensions are not protected. Who is going to pay the pension benefits? The State, no they are not. The city? If the city files for bankruptcy, a Federal Judge takes over the city's finances. The pension funds are not the first to be paid. City Bond holders are the first to be paid. The pension funds are grouped together with all the obligations, and the Judge gets to decide who gets what and how much. The city does have to open up the books, but do you really trust a Judge to decide you income?
First it was Detroit, now Chicago, next NYC. Each step in the Democrats plan.
Exactly. Cloward-Piven commie strategy to a tee. Overload governments systems in order to collapse them. There needs to be military tribunals. The late Sen. Joe McCarthy is somewhere saying, “I told you so.”
Big teacher raise means Chicago has BIG money. Cut the fat. Haters going to hate.
Just cut the freebies to the illegals, homeless, disability scammers, also reduce the SNAP benefits and the city will be fine.Also stop electing people who can’t even pay their water bill.
I need a white wine spritzer.....
Based on the information available, public pensions in Illinois are generally protected from being diminished or impaired due to the state constitutional provision and Illinois Supreme Court interpretations.
Here's a breakdown of the situation:
Illinois Constitution's Pension Protection Clause: This clause explicitly states that membership in any public pension system in Illinois is an enforceable contractual relationship, and the benefits of that relationship "shall not be diminished or impaired".
Illinois Supreme Court Interpretations: The Illinois Supreme Court has consistently upheld this clause, ruling against attempts to reduce or modify public pension benefits, even in times of fiscal difficulty. For example, in 2015 and 2016, the court struck down pension reform laws that sought to reduce benefits for current employees and retirees, emphasizing that the constitution's pension protection clause prohibits such diminishment.
However, there's a nuance regarding municipal bankruptcy:
Federal Bankruptcy Law vs. State Constitutional Protections: While Illinois law and Supreme Court rulings strongly protect pensions from impairment at the state level, the situation could be different in a municipal bankruptcy proceeding under federal Chapter 9 bankruptcy law.
Chapter 9 as a Potential Avenue for Pension Reform: Opinions by bankruptcy courts in cases like Stockton, California, and Detroit, Michigan, have suggested that the federal Bankruptcy Code takes precedence over state laws, including state constitutional provisions, when a municipality files for bankruptcy. This implies that in a Chapter 9 bankruptcy, a federal bankruptcy court might have the authority to adjust pension liabilities even if they are protected by state law.
Illinois' Current Situation: Currently, Illinois does not authorize municipalities to file for Chapter 9 bankruptcy, according to Illinois Policy. Therefore, this avenue for potentially adjusting pension obligations in a municipal bankruptcy isn't available to Illinois municipalities at present.
In conclusion, Illinois' constitutional and judicial framework provides strong protection against the diminishment or impairment of public pensions. However, if state law were to change and authorize municipal bankruptcy, then federal bankruptcy law could potentially override these state-level protections, based on rulings in other states' municipal bankruptcy cases.
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In a rush, made the error of making reference to "municipal bankruptcy". Should have clarified the municipal Chapter 9 bankruptcies are not currently allowed under Illinois law. Correction appears in separate reply.
Don’t forget shutting down Meigs Field. A nice source of income for the city because his wife wanted a park.
Always hated those deals. Pure cash flow for the city. But, they were unloaded due to the unions...
"The day for honoring yourself will soon be at an end ..."
I get what you’re saying, however Fata$$ & Friend$ have been laying in wait for the lakefront and forest preserves for years.
Original Poster is ill-informed here. The Detroit Institute of Art famously SAVED its art collection in the city’s bankruptcy proceedings more than a decade ago-
https://www.artnews.com/art-in-america/features/detroit-institute-of-art-saved-by-grand-bargain-59866/
That same population will also be the only ones to enjoy any Social Security benefits
How about naming rights like guaranteed rate field for midway and ohare. All the money goes to first responder pension. Your Welcome Brandon, and congratulations on only 1 MASS shooting this weekend. We’re so proud of you.
Are you hankering to be much older than you are?
So, you are heavily invested in city of chicago bonds?
Yep, according to the numbers from 2021 to 2024 almost $617 million spent. Somehow, I feel a bit short changed by their alleged contributions to this city.
His baby's momma is going to bankrupt him all the way to the city hall gift closet
I'm sure some of the middle east sovereign funds and other investment groups have been kicking around the idea for the fire sale purchase of O'Hare and Midway for a long time. The city and the connected would get a quick fix of cash -which will be wasted in a few years- and over the next few decades their funds will make a fortune.
You’re an idiot. Get back on your meds.
The only thing that happened in Detroit was the COLA was frozen. Pension payments were not diminished.
That’s our artwork, not the city’s. There will be hell to pay if they pulled that shot.
Exactly why we can never afford to let democrats seize control of the presidency and congress again.
So what no pension I walk off the job immediately
Whether you call it bankruptcy or financial insolvency doesn’t matter, hard times and increased taxes and fees are in the future. Hardworking productive folks will flee the state and freeloading parasites and government employees will be all that is left. Planning on retiring and moving out of state? They will tax your pension at the source, just like they do for non residents who work in Illinois. Enjoy what you created, if you do move out of state leave that union democrat mindset behind.
Again, that cash cow O’Hare. These idiots could place a couple bucks tax on the over 80 million that pass through year, not to mention all the fees they charge the commercial and cargo flights that arrive
Everyone gets a P.O. Pension! Get promoted make more put more in 401k or do whatever you want with the extra $$. Everyone should retire with a beat cops pension!
Coneheads in talks to sell lake Michigan to the Saudis. We will still have the sewage canals to drank out of.
Funny thing the TIF funds equals the amount that the pensions are SHORT! More made up bull shit by the Dummyrats in Shitcago. Get rid of TIF funds and the pensions are made whole. Funny how that works......
you aware that there exists a Tier 2 pension right? Where pensions are capped? I am not saying the cap is low enough as I don't know. But the pensions are indeed capped. Pritzker just signed a law giving the Tier 2 a 3% COLA. It was 1.5% or something like that prior.
what happened to the goal of 90% funded by 2040?
As of 2013 police/fire pensions were funded at 29.6% / 24%. (1996 the 4 city pensions were prospering. Fire was over 100% funded. Police over 60% funded.). Now this Contrarian article says “The fire and police pensions are funded at around 24–25 percent.” How is that? In 2016 the city was to start upping the payments per the new law signed by Gov. Quinn. I think in 2015 City paid $300 million total for both police/fire. in 2016 City to pay $839 million for both police/fire (goes to $954 million in 2020). So it changed from multiplier based to actuarily based. Rahm slowed down the increase a bit, but nonetheless, there is still an increase. The actuarial evaluation for 2024 is $928 Million. In 2026 the City is on the hook for $974M. In 2022 the City paid out about $912M. Note the City’s statutorily mandated contribution in 2022 was $799M – why the discrepancy? Who knows? But you have cops contributing the 9% and you have the market gains. The following is a guestimation: Each cop (on average) is contributing $9340 per year at the end of 2022. There were 11,868 active cops paying in. So that’s $110M per year coming in from the cops 9%. Add the $799,447 that the city is statutorily required to pay in, and we have approx. $910M coming in. Say the balance of the fund is $2B. If the return is 3%, then that is $60M more in market gains. So we have: In $970M, Out $912M, and a Surplus of $58M (for 2022). So why did funding go from 29.6% / 24% police/fire in 2013 to “around 24–25 percent” in 2025? George Shay doesn’t say.
The Civic Federation has good info, in general, on this. https://civicfed.org/ChicagoFY2024 I suggest every cop in the city follow this.
https://www.chicagocontrarian.com/blog/fixing-chicago-pension-mess heres another good article.
Illinois law does not currently allow its cities to file for Chapter 9 municipal bankruptcy. So even if Chicago wanted to, it legally couldn’t without state authorization.
This legal firewall forces cities to seek other solutions—like restructuring debt or raising revenue—before considering bankruptcy. Property taxes will have to skyrocket first..
Unlike Detroit, which faced a steep population decline and economic collapse, Chicago still has a strong tax base and diversified economy. Detroit’s bankruptcy was a political decision, not a financial necessity. It was used to slash pensions and restructure services.
Chicago, by contrast, still has time to make strategic investments in essential services, restore “service solvency,” and avoid the hollowing-out that leads to default. Doing all this is over coneheads head.
It’s called the Illegal alien giveaway.
I thought I heard Detroit PD believed the same, until a judge said, "you can't get 75% there is no money". Initially, pensenions were reduced. But, according to recent news, their PD is 95% staffed, so that will help. They have also built up their downtown and convention area to increase revenue.
I think that got changed to 40% funded by 2090.
And they will. Which is why none of is have gotten our second bill yet this year - arguments behind the scenes about just how high to raise it & who to make take the fall.
We’re in worse shape than Detroit. The numbers are bad. Illinois would love to allow cities like Dolton, East Saint Louis, and yes even Chicago go bust.
If the Democrats (pritzker) loses the presidential election in 2028 the il law will change to allow bankruptcy in Illinois.
You heard it here first.
Occum's Razor cuts the Gordian Knot.
So.
This second installment of property taxes for last year is, if your reply comment is to be accurate, to be calculated on last years' total taxes remaing to be collected and not yet determined?
It’s obvious he is doing it intentionally. Get rid of this communist puppet any legal way possible or the city will erapidly slide into complete irreversible ruin
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