“…Question: Looking forward, what do you see as the main short term and long term challenges?
Fred, the short and long term challenges are the same. Illinois is putting more than 20% of their general revenue into the five pension funds. It is not enough. They will likely continue to try to come up with a way to cut payments until they are forced to face reality and finally raise the necessary revenue. We did not put them in this predicament, they did it themselves, and the constitution does not allow them to solve their problem by denying us what is owed.
“Question: People often talk about the need for pension reform. What reforms do you think are needed?
The reform that is needed is to amortize the total debt, to pay it off in thirty years of equal payments. That would save the state in the long run billions of dollars, but it would mean even higher payment and be too painful in the short term. It will never happen…”
For the other three questions, click here.