Monday, December 23, 2013

"The amorality of Illinois politics is on display in House Speaker Michael Madigan's re-election campaign"



“…They say that Madigan plays chess while everyone else in Springfield plays checkers. That's hyperbole, but it contains more than a grain of truth. Here's just one example of how Madigan plays the game, proof that he leaves nothing to chance. The Speaker represents the heavily Democratic Illinois House 22nd District, in Chicago. No Republican can beat him there, and it's a rare Democrat who would ever consider, even for a moment, challenging him.

“Yet during the recently expired filing period, a Chicago man identified as Terrence Goggin filed to run as a Republican against Madigan in the November 2014 election. Who is Goggin? The evidence suggests that Goggin is a Democratic supporter of Madigan who was recruited by Madigan's campaign operation to pose as an election opponent. Channel 32 in Chicago reports that Goggin is running against Madigan for the fourth time since 1998. Goggin is just the latest in a long string of faux Republicans that the Madigan campaign has recruited as election opponents.

“Channel 32 in Chicago reports that Goggin won't discuss his candidacy, hasn't put up a website or opened a campaign fund. If past is prologue, Madigan's purported GOP opponent won't campaign, won't issue any statements addressing any issue and won't leave a trace of his candidacy after the election is over. A Channel 32 reporter spoke to Goggin's next-door neighbor, who said he wasn't aware that Goggin is running for office.

“Further, voting records suggests that six of the seven people who submitted signature petitions on Goggin's behalf also selected Democratic ballots in the last primary election. Madigan, of course, has nothing to say on the subject of his continued manipulation of the political process for his personal benefit. His spokesman, Steve Brown, issued a non-responsive response to questions about Goggin's phony candidacy. ‘I wish Republicans good luck because they're having a bad time in Springfield this week,’ Brown said.

“It's an unvarnished fact that nothing happens in state government without Madigan's active support or approval, and it has been that way for much of the four decades he has been in office. That has not been good for Illinois — he is the one constant in the state's steady decline... The Goggins of the world are just a small part of the Madigan Empire, but they are emblematic to his comprehensive, anything-goes approach to achieving his goals.”



Friday, December 20, 2013

Are City Fiscal Woes Widespread? Are Pensions the Cause? By Alicia H. Munnell, Jean-Pierre Aubry, Josh Hurwitz, and Marl Cafarelli of the Center for Retirement Research at Boston College




"The bankruptcy of Detroit has focused attention on the financial outlook for cities and the role that pensions may play in determining their future. Some commentators presume that excessive unfunded pension commitments will lead to widespread bankruptcies. Chicago is frequently cited as the poster child of a city where substantial pension commitments and lack of funding have led to serious financial problems. The question is whether Chicago is unique or the tip of the iceberg…

"First, the image that American cities are about to topple like dominoes is not accurate. About 13 percent of the cities and towns in our local sample has been cited in the press as having financial problems, which is not surprising in the wake of the 2008 financial crisis and the Great Recession. Second, fiscal mismanagement and economic issues are more important than pensions in explaining why cities are identified as being in financial trouble…

"Detroit’s bankruptcy has put American cities in the news. Chicago’s seemingly intractable financial problems and large unfunded pension liabilities have upped the ante. The question is whether cities across the country are about to topple like dominoes. And whether pensions are the problem. The answer appears to be “no” on both fronts.

"Of our original sample, 13 percent were cited in the press between 2008 and 2013 as having financial problems. This period saw the financial crisis and the worst recession since the Great Depression. Many of the troubled cities are located in California, where the state had largely lost control of its finances, where public pensions are among the highest cost in the nation, and where the bursting of the housing bubble wreaked havoc. Outside of California, the incidence of troubled cities appears to be scattered and varying in severity.

"Moreover, when identifying the source of the problems, fiscal mismanagement leads the list. Economic problems, in large part a response to the financial crisis and ensuing recession, come in second. Pensions do play a role, but that role is much smaller than the other considerations. In short, troubled cities do exist, but are not as widespread as some commentators suggest. And pensions do play a role, but they are not the major factor."

From a study entitled “Are City Fiscal Woes Widespread? Are Pensions the Cause?” By Alicia H. Munnell…



Thursday, December 19, 2013

Pensions Are “Sacrosanct and Enforceable Contracts” by Gary Elmen, President of the Illinois Retired Teachers Association




“It’s true that education is the key to our future, but those who served the needs of our students in the past are also part of our future. For that reason, the Illinois Retired Teachers Association will join other public employee organizations in suing to stop enactment of illegal and radical changes to Illinois’ public pension laws.

“The Illinois Constitution specifically protects public workers’ pensions as sacrosanct and enforceable contracts, the benefits of which cannot be impaired or diminished. In their wisdom 43 years ago, the constitutional delegates recognized the proclivity of legislators to ignore their obligations to the men and women who serve the public.

“Pensions are not gifts, they’re earned benefits deferred to employees who kept their end of the bargain over their careers. Imagine the outrage if an employer decided he could not, because of his bad business practices, fulfill his commitment to pay his workers. 

“Lawmakers for decades recklessly ignored the state’s obligation to pay for its share of its pension funds, and now they’re telling innocent retirees that their pensions must be radically reduced. The IRTA will ask the Illinois Supreme Court to overturn this effort and restore fairness and security to those who spent their teaching careers building a better future for us as well as our children.”

Gary Elmen
President