What Is Your State Doing? Mine? Oh Shit!

[Annie]

Emperor has no clothes: Pensions are short cash :: CHICAGO SUN-TIMES :: Terry Savage

Emperor has no clothes: Pensions are short cash

February 15, 2010
BY TERRY SAVAGE [email protected]
Illinois politicians are at it again. They're borrowing from the future to make state pension contributions today. Illinois has one of the most underfunded public pension plans in the nation.
When boomers start retiring, there won't be enough money to pay those pension promises. Both political parties are still trying to hide the magnitude of the problem.

In early January, while everyone was busy watching the nasty campaign commercials, the State of Illinois pulled an end-run on the budget process. On Jan. 7 the state sold $3.5 billion of "pension obligation notes." In simple English, the state borrowed money to finance the state's contribution to its five retirement systems.

These five-year debt securities carry an interest rate of 3.84 percent, tax free to bondholders. It's a much higher yield than you could get in the bank because of the risk involved. Moody's and Standard and Poors rated them at least 6 notches below the top AAA rating. In fact, all the rating agencies characterized the outlook for Illinois finances as "negative."

The money raised will go to shore up the Teachers Retirement System, which is scheduled to receive $2.08 billion of the proceeds, and the Illinois State Universities Retirement System, which will get $702.5 million from the bond offering. The Illinois State Board of Investment gets nearly $813 million for funds, including the Illinois State Employees' Retirement System, and the Judges Retirement System, and -- big surprise -- the Illinois General Assembly Retirement System.

But what happens in five years when those bonds must be repaid? Where will the state find $3.4 billion -- plus the interest that must be paid along the way? Will investors be willing to lend to them at any yield? Will the next governor return to Blagojevich's plan to lease out the state lottery and sell the toll roads? Or will this "Ponzi scheme" finally be exposed?

On that day, the war between the taxpayers and the public pensions will officially begin....

he report lays out the problem clearly:

"Not wanting to implement dramatic cuts in spending on essential services, the legislature and various governors elected to instead divert revenue from making the required employer pension contribution to maintaining services like education, health care, public safety and caring for disadvantaged populations. Effectively, the state used the pension systems as a credit card to fund ongoing service operations."

Several pension reform proposals have been presented to the Illinois Legislature. Even the most gentle reforms would require the state to make additional annual pension contributions of more than $12 billion every year. Simply cutting benefits for current or future retirees comes nowhere near to solving the problem. And the prospect of a longer-lasting recession wreaks havoc on the state budget, aside from pension contributions.

Illinois now has public debt of more than $130 BILLION. Unlike the federal government, our state cannot simply create new money to pay its bills. At some point -- and that point is very near -- investors will no longer be willing to lend money that cannot be repaid.

If you would like to see more facts and figures, check out the Web site IllinoisIsBroke.com, created by the nonpartisan Civic Committee of the Commercial Club of Chicago. A visit to the site shows a few pictures that are worth a thousand words -- and billions of dollars.

Perversely, the problem is so huge that our politicians won't acknowledge this true "elephant in the room." So let me say it loud and clear: The Emperor Has No Clothes. Illinois is Broke. And there's no way public pensions will be paid -- unless huge changes are made. And that's The Savage Truth.

Must move. Where to go?

 

[Modbert]

You probably won't like my state. My state just had a city fire all of it's teachers (or it's going to occur any day now I believe) because they refused to accept the proposal being offered up where they would supposedly have to do a lot of extra work but not extra pay in return.

Edit: On second thought, you might like my state.

 

[MIPS]

Must move. Where to go?

Dunno but Switzerland is starting to look good.

 

[Baruch Menachem]

Oregon is not a good plan. PERS here is badly messed up too.

 

[Annie]

You probably won't like my state. My state just had a city fire all of it's teachers (or it's going to occur any day now I believe) because they refused to accept the proposal being offered up where they would supposedly have to do a lot of extra work but not extra pay in return.

If they are offering jobs, I'd easily do more work for same money. I haven't taught in public schools for 11 years. When I did it was as middle school sub in special ed. I also taught high school for at risk students in night school, so do have a bit invested in TRS. Actually my part-time contributions to that would yield more than my vested Catholic Schools Retirement, where I've been full time for 11 years.

Sure I'd take a job teaching, even with no planning periods and extra duty, if the salary was over $35k per years.

 

[Modbert]

If they are offering jobs, I'd easily do more work for same money. I haven't taught in public schools for 11 years. When I did it was as middle school sub in special ed. I also taught high school for at risk students in night school, so do have a bit invested in TRS. Actually my part-time contributions to that would yield more than my vested Catholic Schools Retirement, where I've been full time for 11 years.

Sure I'd take a job teaching, even with no planning periods and extra duty, if the salary was over $35k per years.

Well to say the least, if this goes through, there will be openings.

Though be forewarned, this is one of the "worse off" areas of the state.

Update: Supt. plans to fire all Central Falls HS teachers - Projo 7 to 7 News Blog | Rhode Island news | The Providence Journal

I read somewhere that they're making $70k a year, but it could be inaccurate.

Unionized Rhode Island Teachers Refuse To Work 25 Minutes More Per Day, So Town Fires All Of Them

The teachers at the high school make $70,000-$78,000, as compared to a median income in the town of $22,000. This exemplifies a nationwide trend in which public sector workers make far more than their private-sector counterparts (with better benefits).

Though I disagree with that portion of the article where it says public sector workers make far more then their private-sector counterparts.

 

[Annie]

Wow, just wow! Look at her 6 points, do you see anything wrong with them? I'd be honored to work there, it's what I already do in one form or another. So do other 'very qualified' teachers I work with, (that's 2 of us). Seriously, too many teachers are the most intellectually and physically lazy people I know.

Yesterday I was at school, yes on a Sunday, for a student-driven fundraiser, from 6:15 am-1 pm. My son came to help with clean-up so that I could get out at a reasonable time. My 'kids' raised $1350 for Haiti and yes, they said, "Thank you!" to attendees, parents, the donors, my son, other teacher, and me over and over again.

I get to school by 6:30 most mornings to prepare lessons, so that I'm free at 7:20 to help students that need it or give them a place to finish up their homework-believe it or not, even in private schools we have kids that go home to chaotic homes, where doing homework is not a priority. Sometimes there are just kids that come in to chat, really.

Thursday I went to a 'workshop' from 8 am-3 pm at the Illinois Holocaust Museum, so did the other teacher that I referred to. We could not have gone if we hadn't provided the money for substitutes, which we did by writing to the museum. They came through. Oh, where was the sub money from school? Dunno, but the principal's daughter took an extra 5 weeks of maternity leave, pretty sure she was paid. Might be there, ya think?

I do not assign homework on materials not covered in class. I give at least 10-20 minutes for students to start, so they know if they need help.

Six conditions Central Falls High School teachers must accept | Rhode Island news | projo.com | The Providence Journal

Six conditions Central Falls High School teachers must accept
12:01 PM EST on Thursday, February 11, 2010
KEY POINTS

Six conditions Central Falls High School teachers must accept by Friday to keep their jobs:

Increase length of school day by 25 minutes to provide more instructional time for students.

Formalize tutoring schedule so struggling students have extra help for one hour before and after school.

Agree to eat lunch with students one day a week to build stronger relationships.

Attend two weeks of professional development in the summer at a rate of $30 an hour.

Stay after school for 90 minutes one day each week to work with fellow teachers analyzing student work and test data and discussing ways to improve teaching at a rate of $30 an hour if Gallo can find grant financing.

Accept more rigorous evaluations by a third-party starting March 1

Good starting points for increasing performance of students and teachers!

 

[Modbert]

Wow, just wow! Look at her 6 points, do you see anything wrong with them? I'd be honored to work there, it's what I already do in one form or another. So do other 'very qualified' teachers I work with, (that's 2 of us). Seriously, too many teachers are the most intellectually and physically lazy people I know.

Yesterday I was at school, yes on a Sunday, for a student-driven fundraiser, from 6:15 am-1 pm. My son came to help with clean-up so that I could get out at a reasonable time. My 'kids' raised $1350 for Haiti and yes, they said, "Thank you!" to attendees, parents, the donors, my son, other teacher, and me over and over again.

I get to school by 6:30 most mornings to prepare lessons, so that I'm free at 7:20 to help students that need it or give them a place to finish up their homework-believe it or not, even in private schools we have kids that go home to chaotic homes, where doing homework is not a priority. Sometimes there are just kids that come in to chat, really.

Thursday I went to a 'workshop' from 8 am-3 pm at the Illinois Holocaust Museum, so did the other teacher that I referred to. We could not have gone if we hadn't provided the money for substitutes, which we did by writing to the museum. They came through. Oh, where was the sub money from school? Dunno, but the principal's daughter took an extra 5 weeks of maternity leave, pretty sure she was paid. Might be there, ya think?

I do not assign homework on materials not covered in class. I give at least 10-20 minutes for students to start, so they know if they need help.

As long as the standards they are testing them by are not as unrealistic as they are for NCLB, I have no problem with that six point list at all.

If you think making $35k would be good, you could probably make a bit more than that here. I don't know how much housing prices and such are in Ill but they aren't too terrible here. Especially with the recent decline in the economy.

And hey, if you help a bunch of other kids who were told they had no shot, maybe they'll make a TV movie about you and you get to go on Oprah.

 

[saveliberty]

You probably won't like my state. My state just had a city fire all of it's teachers (or it's going to occur any day now I believe) because they refused to accept the proposal being offered up where they would supposedly have to do a lot of extra work but not extra pay in return.

According to your location, you are not in a state of the union.

 

[Modbert]

According to your location, you are not in a state of the union.

51st state.

 

[Annie]

Wow, just wow! Look at her 6 points, do you see anything wrong with them? I'd be honored to work there, it's what I already do in one form or another. So do other 'very qualified' teachers I work with, (that's 2 of us). Seriously, too many teachers are the most intellectually and physically lazy people I know.

Yesterday I was at school, yes on a Sunday, for a student-driven fundraiser, from 6:15 am-1 pm. My son came to help with clean-up so that I could get out at a reasonable time. My 'kids' raised $1350 for Haiti and yes, they said, "Thank you!" to attendees, parents, the donors, my son, other teacher, and me over and over again.

I get to school by 6:30 most mornings to prepare lessons, so that I'm free at 7:20 to help students that need it or give them a place to finish up their homework-believe it or not, even in private schools we have kids that go home to chaotic homes, where doing homework is not a priority. Sometimes there are just kids that come in to chat, really.

Thursday I went to a 'workshop' from 8 am-3 pm at the Illinois Holocaust Museum, so did the other teacher that I referred to. We could not have gone if we hadn't provided the money for substitutes, which we did by writing to the museum. They came through. Oh, where was the sub money from school? Dunno, but the principal's daughter took an extra 5 weeks of maternity leave, pretty sure she was paid. Might be there, ya think?

I do not assign homework on materials not covered in class. I give at least 10-20 minutes for students to start, so they know if they need help.

As long as the standards they are testing them by are not as unrealistic as they are for NCLB, I have no problem with that six point list at all.

If you think making $35k would be good, you could probably make a bit more than that here. I don't know how much housing prices and such are in Ill but they aren't too terrible here. Especially with the recent decline in the economy.

And hey, if you help a bunch of other kids who were told they had no shot, maybe they'll make a TV movie about you and you get to go on Oprah.

Not looking for kudos from Oprah or TV LOL! When the kids or parents say, "Thanks" that is so cool. Yesterday was a case in point, lots of former students there, just because they knew their old 3rd grade and jr. high teachers would be.

Avg teacher in public schools in IL is around what you posted for the high school. Private schools, at least parochial schools, pay squat.

 

[Dont Taz Me Bro]

Though I disagree with that portion of the article where it says public sector workers make far more then their private-sector counterparts.

It's very much the case in California and it's bankrupting the entire state.

Plundering California by Steven Greenhut, City Journal 23 November 2009

 

[VaYank5150]

If they are offering jobs, I'd easily do more work for same money. I haven't taught in public schools for 11 years. When I did it was as middle school sub in special ed. I also taught high school for at risk students in night school, so do have a bit invested in TRS. Actually my part-time contributions to that would yield more than my vested Catholic Schools Retirement, where I've been full time for 11 years.

Sure I'd take a job teaching, even with no planning periods and extra duty, if the salary was over $35k per years.

Well to say the least, if this goes through, there will be openings.

Though be forewarned, this is one of the "worse off" areas of the state.

Update: Supt. plans to fire all Central Falls HS teachers - Projo 7 to 7 News Blog | Rhode Island news | The Providence Journal

I read somewhere that they're making $70k a year, but it could be inaccurate.

Unionized Rhode Island Teachers Refuse To Work 25 Minutes More Per Day, So Town Fires All Of Them

The teachers at the high school make $70,000-$78,000, as compared to a median income in the town of $22,000. This exemplifies a nationwide trend in which public sector workers make far more than their private-sector counterparts (with better benefits).

Though I disagree with that portion of the article where it says public sector workers make far more then their private-sector counterparts.

I for one, hope they fire every damn one of them! Fucking unions.