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Now a let's go to Illinois -- Chicago.
The Chicago Tribune reporting yesterday that form -- -- daily.
Get a sweetheart deal back in the eighties and early ninety's to the city's aldermen he did it in return for that political support the result.
Just recently 21 -- retired -- -- route it was revealed 21 Alderman retirement.
They will get a total of 58 million dollars spread around the 21 in retirement that's just the first round of retirees more to -- John Tillman from the Illinois up policy institute is in Chicago.
That's a dramatic number twenty -- aldermen who didn't serve a full time job I don't think.
Getting 58 million dollars in retirement what do you make of that.
I think the favor factory is still up in operating in Chicago and Illinois and we need more transparency and accountability to stop the favor factory shut it down that -- outrageous part of us Stuart.
-- it's working class and poor taxpayers for bearing the burden while.
Public cull them -- -- -- -- -- becoming millionaires and retirement after just twenty years but that is a contractual obligations.
They must be paid nothing you can do about it now is that.
There's nothing that can be done for the deal for -- already retired and one of the things I think is very amusing is listen to the aldermen who all say in the city of Chicago -- not up to us this is a state policy issue.
By the fact that the -- to fix this does not mean that these -- couldn't believe it from the moral high ground instead what they want to do is hope the system stays in place and they can bank those millionaire retiree pensions.
That on the backs of the working class imports outrageous.
Now let's look at the overall state of Illinois and government Quinn.
He is threatening to cost retirees health staff or what people have already retired -- -- to -- -- health cat.
If the public sector walking unions do not agree to raise the retirement age and make a bigger contribution to their own pay pensions.
Now is this gonna happen will -- Democrat governor Quinn will be actually follows through and cost health -- if the unions don't agree on pensions.
Action we issued a report that revealed -- state has 54 billion dollars in unfunded health care benefits and and absolutely should be cut.
In fact not only should it be cut -- it should not be traded out for pension reform these two things should both be done.
What governor -- is talking about doing is giving away.
A reform on the health care side.
In return for necessary reform -- the pension aside this is a colossal and strategic mistake.
They could pass Health Care Reform right now the state employees in Illinois pay on average roughly 9% of their health care and retirement.
Other state taxpayers pick up the rest of that that is way out of whack with other states.
In a way out of whack with the private sector most the time when you retire in a private sector you have to pay for your own health care there's a huge benefit for state retirees will need to come to the table and start paying their share a bit you can the government can constitutionally legally contractually he can say you get less health yet he can do that he can make that dramatic move.
But he cannot make the same -- and move on pensions can.
Well -- -- debate about that he doesn't have the first party your statement is actually practice of the legislature and the governor has signed legislation right now.
Two stop the subsidy of retiree health care right now that -- so we estimate that was saving -- from a 150 million dollars or more per year.
Very important part of what they can -- and they've already done that would dump health care as to the pensions there's a debate about whether it's constitutional we believe it is constitutional.
To respectively -- reform pension retirement for current employees going forward given that number again was up 52 billion dollars in pension liabilities was that it 52.
Off the 54 billion dollars in post employment benefits essentially health care and another 83 billion dollars in unfunded pension debt.
And what the -- there's something very insidious going on here Stuart what the governor is proposing to do.
Is give them something on the 54 billion dollars in health care benefits in return for pension reform that would be a mistake because -- puts the burden on the taxpayers.
We should reform both agree the health care benefits and the pensions are one for the other John it is very interesting stuff from it and all which is probably in the world state of any state in the union we've got to shut down the favor factors are.
President interesting line John thanks should go for joining us coming and soon please thank you so.
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