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Kristina Rasmussen of the Illinois Policy Institute discusses how pension problems are impacting the state.
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Let's get to Illinois Chicago's mayor Rahm Emmanuel has set up a website with a real time debt clock just look at it is now not when -- screen.
But is is Emanuel the only Democrat in in -- who gets it.
Joining the company from Minnesota Minneapolis -- -- -- -- with the conservative think -- the Illinois policy institute.
-- am I right in saying that's Illinois.
Not just Chicago the state of Illinois is -- the worst pension position of the entire nation is that true.
It has significant problems depending on how you look at -- we're at the bottom or near the bottom.
But it's scary news coming out now is that not only to get to worry about our pension liability -- There's another big liability sneaking up on us in the form retired.
Government worker health insurance premiums and there's no money set aside to pay for that liability.
And -- documents obtained by my organization indicate that it's over 54 billion dollars in addition to our pension liability.
What's what's the pension liability.
I want to -- -- together what is that.
If we're looking at the state government right about 83 billion dollars tacked on another fifty for the retiree health care.
And here at over a 130 billion dollars that of course did not take into account local governments of the problem is.
-- OK sue the state government 13040.
Billion dollars of unfunded future liabilities.
That's money that they've gotta come up with double -- timeframe are we talking 304050.
Years or shorter than.
Can't the next thirty years and we're seeing the pain right now in this year's budget that growing cost of carrying those liabilities for pensions and health -- Are eating -- the tax dollars available for other government services like education and health care and so forth so we're seeing core government service as being squeezed out by these growing liability is.
And that would take a back to taxpayers could -- just hike their income taxes by 67%.
So you've got to take these liabilities on now the -- get anywhere.
Christiana and our Christiane I was gonna ask about by the fact that Illinois just raised its taxes Indiana's doing its best to lower its tax rates are you having an exodus.
Of jobs and and job creators leaving Illinois which might actually mean less money in the -- There's.
People are voting with their feet over the past fifteen years.
We're seeing residents leave on average once every ten minutes that includes people coming in and people going out.
And already we see -- unions running ads calling for another tax hike.
In fact there's a union funded group out there -- talking about a progressive income tax with marginal rates at 11%.
I mean that that it's -- considering where are ready paying so much more from this last tax hike.
Their solution is always gonna be higher -- says I want but it's -- the -- -- take.
-- down the road just a few weeks a few months whatever it is.
You've got this massive overhang of pension health -- liabilities.
I believe that the state of Illinois -- something like six to eight billion dollars within the state to vendors unpaid bills.
You haven't -- -- be having a much money left so a few weeks a few months from now what happens.
Well now -- really crucial time -- in the midst of our legislative sash and the governor has a couple of task force says on Medicaid and pensions that -- -- -- report out and a few weeks so pay attention to Ellen -- the next six weeks the decisions made now.
We'll send a strong signal about whether our politicians are serious about fixing our problems you know if they don't -- -- -- -- -- -- -- want your opinion I don't care whether the task force delivers it a couple of weeks to you tell me what you think's gonna happen.
They've got to address that they simply have to look a -- as I read you may come -- -- -- -- -- is gonna address it mean.
It was fabulous to see the governor spoke swimming come on your shell -- say that Illinois.
Has not and will not be asking for -- federal bailout so we're not -- -- and helping hand from about that means we need to tackle it.
In state cut these costs and the gravy train and finally get add back on shape because we're losing right now in the race for -- for people instantly -- -- OK I got all that but you say a the end of the day Illinois he's gonna caught spit cup services dramatically yes.
It's got -- is that there's no -- around us that that's what's gonna happen you up predicting massive social service cops.
To his state of Illinois within weeks we'll certainly months yes.
We can do it in Smart ways it doesn't have to be slashing -- right now we're talking about retiree health care -- those dollars are in direct competition and with health care dollars for a ports heads.
I'm -- performance systems in Smart ways you can still provide course service says.
I will not destroying the infrastructure.
We got to approach it in a smarter way and we have -- because the status could simply is not sustainable.
Okay Kristina Rasmussen thanks for joining us -- I -- back in a couple of months see how this thing turns out thank you.
