Chicago and Illinois

Union-supported Democrats have ruled the roost in the city and state, Obama’s base, for many years. The cost of that union support is now coming due. Chicago’s so-called net pension liability to its Municipal Employees’ Annuity and Benefit Fund soared to $18.6 billion by the end of 2015 from $7.1 billion a year earlier, according to its annual report. The fund, one of Chicago’s four pensions, serves some 70,000 workers and retirees. The increase will add to what had been an unfunded liability estimated at $20 billion. These estimates are vastly optimistic because they continue to assume a level of portfolio return that simply isn’t going to happen, see John Hussman’s work. Obviously, there is no way the city can make up this shortfall, so unions are working to pass a bailout from Illinois state taxpayers through the legislature.

Illinois state workers are the highest paid in the nation, even ahead of California when adjusted for cost of living. Yet, despite the fact that Illinois is for all practical purposes insolvent, the AFSCME* union demands four-year raises ranging from 11.5 to 29 percent, overtime after 37.5 hours of work per week, five weeks of vacation and enhanced health care coverage.

AFSCME workers already get platinum healthcare benefits that would make nearly everyone in the country green with envy. Median AFSCME worker salaries increased more than 40 percent from 2005 to 2014, reaching more than $62,800. During that same period, median private-sector earnings in Illinois remained virtually flat. But they are still not satisfied. Now the union is working overtime to remove Gov. Bruce Rauner – who actually represents taxpayers’ interests – from labor contract negotiations. The union supports House Bill 580, which would strip the governor of his ability to negotiate. AFSCME wants the current contract dealings turned over to unelected arbitrators who are likelier to decide in the union’s favor.

See any problem here?

* AFSCME is the American Federation of State, County and Municipal Employees

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