Every time I see a report like this one from the Chicago Tribune about public employee benefit costs, I wonder how in the world government entities in such a financial mess can ever get it straightened out. The coalition of union officials and government officials who have enabled this unconscionable raid on the public treasury deserve universal condemnation.
But union officials and their media apologists rant and rave about those like Wisconsin Governor Walker who try to reverse this impossible trajectory of public debt. Governor Walker himself now faces a recall election as unions try to undo his long overdo reforms.
It is hard to see how this can end positively. Anyone with any understanding of mathematics and the affects of public debt spiraling out of control understands reform is necessary. But we in Indiana need to learn from the experience of states with such dysfunctional governments as Illinois so we never allow our politicians to lead us down the same destructive path more than we already are. In the meantime we can enjoy the competitive advantage we have against Illinois in attracting new and expanding businesses to Indiana including some that might decide to flee Illinois for a more reasonable economic climate in Indiana.
"The state of Illinois admits to $83 billion in pension underfunding, a staggering weight on today's and tomorrow's taxpayers. Add to that the as yet uncalculated billions in unfunded pension obligations for city, county and other local governments. During a Tribune forum Wednesday, Mayor Rahm Emanuel explained how that overhang — some estimates run far higher — deters businesses from locating in Chicago: Companies don't want to buy shares in a phenomenal tax burden that will unfold over decades."
I guess that should be true for most corporations but unfortunately for Fort Wayne it was Navistar that proved to be the exception to that rule. Navistar management ignored its own internal study that it would cost millions more annually if they moved their technical center to Illinois from Fort Wayne and moved it from Fort Wayne anyway.
Surprise, Illinois! You owe another $54 billion - chicagotribune.com