TUA President Jim Tobin was quoted about Chicago debt in Northwestern University’s Medill Reports.
Despite Chicago’s debt being among the worst in the nation, the City Council voted Wednesday to allow the city to issue bonds up to $900 million and authorized borrowing another $1 billion for Midway Airport.
The measure passed without discussion, with only Ald. Scott Waguespack (32nd), Ald. Bob Fioretti (2nd), Ald. Brendan Reilly (42nd) and Ald. John Arena (45th) voting no.
This action comes less than a year after Moody’s downgraded Chicago’s credit rating by three notches.
Fioretti said he voted no for two reasons: a lack of transparency in the proceedings and his feeling the council was “kicking the can down the road.”
Fioretti, who is not a member of the finance committee, attended Monday’s meeting and said, although he asked questions, he learned little about the plan.
“This is The Parking Meter: 2,” Fioretti said, referring to former Mayor Richard Daley’s controversial lease of the city’s parking meters to Chicago Parking Meters, LLC. The lease was widely criticized for its lack of transparency.
Fioretti said Chicago is headed in a dangerous direction and faults fellow aldermen for refusing acknowledge the problem.
“Nobody wants to discuss the real road to Detroit that we are on at this point,” he said.
Sarah Wetmore, vice president and research director of the Civic Federation, wrote in an email that it is important to distinguish between the kinds of debt the city issues.
The portion of the debt the city said will be used for safety-related building repairs is necessary, she wrote, to keep government infrastructure sound.
About $120 million of the $900 million would be used to push debt to future years, according to Wetmore.
“The unsustainable savings have helped balance the city’s current year operating budgets, but they also greatly increase the city’s long-term obligations,” she wrote. “The city must find a more sustainable way to address the growing gap between its spending and available revenues.”
Wetmore warned of dire consequences if they city cannot curtail its spending and continues to rack up debt.
“It will be forced to choose between a significant increase in the property tax, crippling cuts to city services or some combination of both,” she wrote.
Finally, Wetmore wrote, the city’s credit rating could be hurt by the amassed debt, which would make borrowing in the future more expensive and possibly limit borrowing opportunities.
Some were more forceful in their criticism.
Jim Tobin, president of Taxpayers United of America, said the law is “horrible.”
Tobin said the action amounts to the council “stealing the peoples money. They should all be thrown from office.”
The law is pushing financial obligations onto future generations and making them responsible for “lavish, gold-plated pensions,” Tobin said.
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It is unbelievable that the government bureaucrats in South Berwyn’s SD 100 are expecting taxpayers to take another huge pay cut so the government bureaucrats can prop up their bloated salaries and benefits without anything to show for it.
Just one of these two referenda would increase property taxes about $850 a year for an average home valued at $216,200. The second referendum is asking for another $51 million in bond principal only – not including interest.
According to the Cato Institute, government schools outspend private schools by 93%, and yet the outcomes for government school students are abysmal. SD 100 already spends $16,631 per student, higher than the national average of $15,171, which is more than any other country! Throwing more money at the government schools is not the solution. Study after study shows that more is not better when it comes to school spending.
How is it that the people who are educating our kids can’t comprehend that more spending isn’t going to help ‘the children’; it only helps the bloated bureaucracy of government educators and administrators? Either these ‘educators’ are not smart enough or they are deceiving us on what it takes to educate kids.
With Illinois’ property taxes the second highest in the nation, it is unconscionable that we are being asked to pony up more than $1,000 dollars a year in additional property taxes and accept the sub-standard outcomes delivered by this education cabal.
I urge everyone to flood the polls on March 18 between 6 am and 7 pm and vote no for these two property tax increase referenda. You can bet that all of the government employees will be there to vote for your $1,000+ pay cut.
This huge property tax increase will force people out of their homes, and, for what? How about this time around we ask the, ‘oh so caring for the children’ government employees to take the pay cut and really give to our community the way we taxpayers have done for so long?
Jim Tobin
Founder and President of Taxpayers United of America, www.taxpayersunited.org and 30-year resident of Berwyn
TUA’s endorsement of various Illinois state candidates was featured on Illinois Review.
Tax Accountability (TA), the political action arm of Taxpayers United of America (TUA), has announced its candidate endorsements for the March 18, 2014 primary election. The are:
- Governor: Bruce Rauner
- US Senate: Jim Oberweis
- 3rd Congr. District of IL: Diane M. Harris
- 9th Congr. District of IL: David Earl Williams, III
- 11th Congr. District of IL: Ian Bayne
The TA’s reasoning for each candidate is below:
Bruce Rauner is a successful businessman and strong leader with the fiscal experience to save Illinois from its history of failed and criminal leadership. Bruce has pledged to repeal the 67% state income tax increase surcharge and to perform a complete overhaul of the State’s tax policies to simplify and eliminate the corporate welfare that burdens individuals and small businesses.
Jim Oberweis has been a strong leader in the Illinois State Senate and a successful businessman who understands that tax-and-spend policies destroy our economy and prosperity. Jim has pledged not to raise taxes or impose any new taxes, directly or indirectly.
Diane M. Harris has a solid record of achievement both personally and professionally. Diane has a lifetime of community service and commitment to restoring integrity to Illinois politics. Diane has pledged not to raise taxes or impose any new taxes because of her commitment to responsible spending and respect for taxpayers’ personal wealth.
David Earl Williams, III has established himself as a strong leader and achiever. David is a veteran of the US Navy where he managed a multi-billion dollar budget. David is committed to restoring personal and economic freedom to Illinois and the country and has pledged not to increase or add new taxes.
Ian Bayne is a self-made, successful businessman who has fought hard to achieve the American dream. His fight has highlighted the need for government reforms that restore the power to the people. Ian has also pledged to protect taxpayers from any new or increased taxes.
Jim Oberweis has been a strong leader in the Illinois State Senate and a successful businessman who understands that tax-and-spend policies destroy our economy and prosperity. Jim has pledged not to raise taxes or impose any new taxes, directly or indirectly.
Diane M. Harris has a solid record of achievement both personally and professionally. Diane has a lifetime of community service and commitment to restoring integrity to Illinois politics. Diane has pledged not to raise taxes or impose any new taxes because of her commitment to responsible spending and respect for taxpayers’ personal wealth.
David Earl Williams, III has established himself as a strong leader and achiever. David is a veteran of the US Navy where he managed a multi-billion dollar budget. David is committed to restoring personal and economic freedom to Illinois and the country and has pledged not to increase or add new taxes.
Ian Bayne is a self-made, successful businessman who has fought hard to achieve the American dream. His fight has highlighted the need for government reforms that restore the power to the people. Ian has also pledged to protect taxpayers from any new or increased taxes.
