Chicago is not much better off then Detroit when it comes to their pension.
Mayor Emanual and Governor Quinnto their pension obligations. They have two pension that will run out of money in less then ten years. As result they have gone to the State Legislature for a bail out
Last month the Illinois Legislature approved a plan to help the City of Chicago with the problems that would:
- Require employees to contribute 11 percent of their salaries to pension by 2019, compared to 8.5 percent.
- Annual cost -of-living increase would no longer grow at 3 percent but to a straight benefit of half the rate of inflation, or 3 percent, whichever is less
- Raise property taxes $50 million per year for the next 5 years= $250 million over 5 years on property owners in Chicago.
Governor of Illinois, however, does not like the idea of the increased property taxes and has yet to sign the bill. Stay tuned.
My point is that,the City of Worcester should be doing more things now to avoid drastic measures down the road. For more read this.
