Chicago Teachers Union Threatens Strike: For the children or the tax dollars?

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CHICAGO — Chicago Teachers Union (CTU) President, Karen Lewis, and Vice President, Jesse Sharkey, warned CTU members this past Monday to begin saving at least twenty-five percent of their pay “to weather what could be a protracted strike.” This Thursday, November 5, CTU will conduct “an official ‘practice’ strike vote and contract poll in all CPS school buildings,” further setting the stage for an actual strike in the coming months.
Taxpayers United of America’s (TUA) director of operations, Jared Labell, calls CTU’s brazen threat to strike both wildly misdirected and counterproductive for solving the financial fiasco in the Chicago Public Schools, Illinois’ most beleaguered school district.
“Karen Lewis led CTU’s last strike in 2012, declaring it a victory for teachers and students. But even by CTU’s standards, it’s difficult to see how they consider thousands of laid-off teachers and employees, plus dozens of shuttered schools in the interim three years a success, and that’s all prior to the newly proposed cuts by CPS CEO Forrest Claypool, which would take place in early 2016,” said Labell.
CTU has prepared for a possible strike since their contract expired June 30.
Revived talk of a teacher walkout comes mere days after the Chicago City Council approved Mayor Rahm Emanuel’s historic three-quarters of a billion dollars tax increase, which included an unprecedented property tax hike totaling $588 million dollars to fund the Chicago police and firefighter pensions, and pay school construction costs. But even with the historic property tax hike and other fee and tax increases, the infusion of taxpayer dollars will not approach the billions of dollars needed to correct Chicago’s financial footing.
Yesterday, the Chicago Tribune reported that nearly three dozen Chicago high schools are less than half full, which represents an extremely costly problem for CPS in terms of property holdings, maintenance, and administration, but it is simply business as usual for the government unions and their fellow travelers. Every once in a while, however, even they will admit that the system is unsustainable when held to the same standards as found in the free market:

“You have to administer a building, whether a school has 20 kids or 2,000 kids, you got to have a principal. School districts have a lot of fixed costs,” Charles Burbridge, executive director of the Chicago Teachers’ Pension Fund, said during a recent meeting of the Tribune’s editorial board.

“It’s like, I often say, look at school districts, and essentially they’re like a hotel chain. If you’re not running 80 percent capacity and utilization of your hotels, you’re going out of business,” he said. “Well, CPS is not running 80 percent capacity in its hotel, and it can’t go out of business.”

“The fact is, CTU leadership have been awful stewards of the Chicago Public Schools and their students. The union bosses continue to push for raises and lax performance evaluations in the face of abysmal academic progress for students, ballooning debt, and profligate spending, all the while resisting reforms to their bureaucratic fiefdom and their lavish taxpayer-funded pensions,” said Labell. “And I don’t think CTU will win over many parents of students by approaching the situation as they have. The Chicago Public Schools are basically a government monopoly, top-heavy with exorbitant salaries, gold-plated pensions, and redundant bureaucracy, but they don’t seem to reconcile that with the financial reality average students and families are facing.”
Chicago teachers receive an average salary of about $70,000 annually for nine months of employment, while the per capita income for Chicagoans is less than half of that, and nearly a quarter of the city is below the poverty level.
“My heart goes out to the least affluent families in Chicago, who have little choice in competing educational alternatives. These families are forced to hand over their hard-earned money in the form of property taxes to fund the vast government-education empire housing Chicago’s children like prisoners,” said Labell.
“Perhaps taxpayers should counter CTU’s threat of a teacher strike with a taxpayer strike. If CTU and CPS are not onboard to enact significant structural changes to the heavily indebted and liability-laden district, then Chicagoans should stop enabling them with taxpayer dollars, like one would stop funneling whiskey to a drunk. The question is how badly Chicagoans will feel once the party is over and the well is dry, because either way, the hangover is coming. It’s only a matter of when,” concluded Labell.

Vermilion County First|Watchdog Group Cites Vermilion County Pensions

President of Taxpayers United of America, Jim Tobin, was quoted by Vermilion County First during the pension release of Vermilion County.


A government watchdog group is citing some Vermilion County government pensions as examples of what it calls over-inflated pensions.  Taxpayers United of America President, Jim Tobin, says many Vermilion County government retirees are enjoying seven-figure life-time pension payouts.  ‘’Well over 1,000 of Vermilion County area government pensioners receive million-dollar life-time pension pay-outs.  The pensioners average personal investment is only about five-and-a-half percent of the life-time pay-outs,’’ says Tobin.
‘’While local taxpayers, whose average household income is about $41-thousand dollars, struggle to make their property tax payments – working well beyond retirement age – these government pensioners enjoy lavish, gold-plated retirements beginning, on average, at the age of 58,’’ says Jim Tobin.  He is the president of Taxpayers United of America, which released the report.  Taxpayers United of America is urging state lawmakers to do away with what it calls over-inflated pensions.
Tobin made his comments during a news conference in Urbana.  He added the state will soon have to start reducing pension payments, due to a lack of funds.  But he could not pinpoint when that is expected to happen.
Tobin thinks the pension payouts to many Illinois government retirees is outrageous.  ‘’I think taxpayers should be outraged as I am that these people are retiring in their fifties and sixties and living the ‘Life of Riley’ on our dime.  We have to keep working into our sixties and seventies, and in some cases we have to work until we drop – we taxpayers – so these people can retire in their fifties and live the ‘Life of Riley’ on our dime,’’ added Tobin.
More information on the study conducted by Taxpayers United of America on pensions in Vermilion and Champaign Counties can be found at http://www.taxpayersunited.org.

Danville Government Pensions in Crisis

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Danville, IL—Taxpayers United of America (TUA) today released the results of their study of the top government pensioners of Vermilion County, Vermilion County government schools, Danville Community College, and Danville municipal.
“Hundreds of Vermilion County area government pensioners receive multi-million dollar lifetime pension payouts,” stated Jim Tobin, TUA president. “The pensioners’ average personal investment is only about 5.5% of the lifetime payouts.”
“While local taxpayers, whose average household income is about $41,000, struggle to make their property tax payments, working well beyond retirement age, these government pensioners enjoy lavish, gold-plated retirements beginning, on average, at the age of 58.”
“These ‘poor public servants,’ who collect more than the taxpayers who fund their salaries and pensions, enjoy nearly iron-clad job security and guaranteed increases in wages and retirement. These government employees are supported by a local economy where about 20% of constituents are below the poverty level. This is theft. This is immoral and unethical theft of taxpayers’ hard-earned money to be given to the political elite.”
“Danville fire and police pension funds are on the brink of ruin. With 25.1% and 35.23% funding ratios, respectively, and more retirees collecting benefits than employees paying into the fund, they are rapidly spiraling to insolvency.”
“There are now well over 12,154 Illinois government pensions over $100,000 and 85,893 over $50,000 annually! These numbers only pertain to the state pension funds and don’t include any of the hundreds of local police and fire pension funds! Those are staggering numbers, considering the taxpayers who fund these government pensions get an average Social Security pension of about $15,000 a year.”
“I defy teachers, or any government employee, to look into their neighbors’ eyes and say, ‘You deserve another pay cut so I can make more in retirement than you make working.’ They have to be able to say to their neighbors, ‘I don’t care if you can no longer afford your home’s property tax payment; I want more. I want more of your money. I want more of your wealth. I want more of your property.’ That is the reality of demanding more lavish government pensions,” challenged Tobin.
“Retired Danville CCSD 118 government employee, David L. Fields enjoys an annual taxpayer funded pension of $164,769. Over a normal lifetime, he will get about $2.7 million in pension payments. His personal investment in his rich pension is about 5.8% or $155,718 – less than one year of the government pension benefits he collects!”
Phillip C. Morgan retired from Danville Sanitation and his current annual pension is $126,339. He will collect about $2.8 million, while he only put in $115,618 of his own money, less than one year’s pension payout. That’s a 4% investment in his own multi-million dollar retirement payout!”
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“Although we did not support or endorse SB 1 as any kind of pension reform, as it did more harm than good, the unanimous ruling of the Illinois Supreme Court clearly illustrates the limited options available to solve the pension crisis…and the answers are not tax increases!”
“A constitutional amendment that is fair to taxpayers, as well as government employees, must be approved next year to address the government pension crisis in Illinois. In the meantime, if the Illinois General Assembly increased individual government employee contributions to their own gold-plated pensions by 10 percentage points, it would save taxpayers about $150 billion over the next 35 years, or about $4.3 billion a year, and save the State of Illinois from financial ruin. If all else fails, there is always the option of moving forward with legislation to begin the process of allowing municipalities and government schools to file for Chapter 9.”
“Taxpayers must pursue these three paths forward to avoid disastrously higher taxes in the immediate future.”
“Rather than finding ways to perpetuate this horrible system that places copious amounts of cash in the hands of bureaucratic hacks, rank and file government pensioners should be calling for the complete reform and conversion to 401(k) style funds that place employees in control of their own futures. How many times will we trust politicians to do the right thing with the money collected for pensions and how many citizen groups will ‘discover’ that you just can’t tax your way out of this problem?”
“The choice is clear: without sweeping, meaningful pension reform, residents of Danville and nearly every other city in Illinois will have to choose between fully funding the pension systems to pay for past services rendered, or pay for the services we need today,” concluded Tobin.
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).