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The Illinois Pension Nightmare

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  • Description

    FBN’s Lou Dobbs sounds off on costs of teachers pensions in Illinois.

  • Duration 4:35
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This transcript is automatically generated

What's next in the media mayor Emanuel Chicago teacher's union backroom dealing well.

Hate to tell you this it's gotta be the pensions I told you about those teacher pensions sucking up in just term.

Setting up 71 cents out of every education dollar in Illinois.

This deal mayor Emanuel -- so -- -- The political theater that was indulged in here and it didn't even address the unfunded teacher pensions.

That's fast talking about -- was actually just me talking about.

The the Chicago teacher's union settlement.

With Rahm Emanuel mayor Emanuel and all of a political theater that attended and -- -- here.

At that time.

That it's all about it's all about the pensions and the fact that they can't afford to pay.

And governor Pat Quinn is now floating the idea of a federal bailout of Illinois pension debt.

Can you believe -- at a level just.

Little decency here folks.

Announcing the State's fiscal 2012 budget last year governor Quinn said he would seek a quote federal guarantee of its unfunded liabilities.

Sounds harmless enough.

When asked about a back -- the governor claimed the bailout language was -- for auction.

Now I calls that -- drafting error others are trying to call -- a trial balloon.

Just how big is the Illinois well.

Problem.

It has eight billion dollars in current outstanding debt the -- eight billion.

Are you say okay people billion we live in the -- the sixteen trillion dollar that's that's not so much.

Let's just stay.

Taxpayers are on the hook however.

For more than 200.

Billion dollars.

This our -- business.

Illinois got a couple problems unfunded pension liabilities.

We won't call them unfunded.

Pension liabilities.

As government life exactly right by some estimates its pension -- to go -- his earlier this 28 team and as I said.

On that tape of last month.

71.

Cents.

Out of every dollar.

Every education dollar.

Goes to ensure.

You -- a lot of retirement.

Then.

That.

-- -- You get excited about the opportunities the federal taxpayer to bail out Illinois.

Well meanwhile the Chicago teachers' pension fund is paying out more than a billion dollars a year.

Billion dollars here much more than it's taking him.

But the issue wasn't even up for negotiation -- that trial and that teachers strike and I warned you about that.

Mayor Emanuel has actually the gall to call the settlement a quote an honest compromise.

To problems without it wasn't a compromise it was already a prepackaged deal.

And there was nothing honest about it.

Except the clear intent to screw the Illinois.

Taxpayer.

And potentially the federal taxpayer.

Illinois is alone by the war.

State's overall.

This is while.

Two and a half across the country two.

And a half.

Trillion.

Dollars.

And unfunded pension go off to a half trillion.

Now make no mistake about it this is a scam it's being run in states like Illinois California.

And the question is just how big -- chopped.

Are the rest of -- going to be because what it is is it's a big.

Vehicles circle -- money.

-- it goes from say Democrats.

Nearly every instance.

To labor unions.

From taxpayers.

And goes through.

I'm sorry there's no beneficiary of that really because -- -- in Illinois.

In Chicago protect remember.

15% of the students.

15% of the students.

Are proficient.

52%.

And even read at the basic level so how order we're gonna set up where this little circle of money this workers being.

I mean after you watch this stuff it's pretty clear.

Bernie Madoff.

Was that there are --

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