Monday twofer. Vallas gets a job with IPI. Illinois on the hook for pension billions.
Since the ballots were counted in the 2023 Chicago Mayor’s race in which Brandon Johnson was elected, we haven’t heard much from Paul Vallas.
It was almost as if they should put his picture on a milk carton.
Vallas was the law-and-order candidate, backed by the pro-Trump Fraternal Order of Police. Vallas got almost all his votes from the white wards on the far north west side.
In his TV ads Vallas claimed to be a “life-long Democrat” in spite of all evidence to the contrary.
In spite of his Republican bona fides, he was supported by some Illinois and Chicago Democrats like Senator Dick Durbin and former Congressman Bobby Rush.
Today’s Politico reports that Vallas has been found and has a new job.
Vallas has been hired by the far-right Illinois Policy Institute.
Pro-Publica reported in 2018 on the money behind Vallas’ new home.
“Tax records show that a handful of conservative, wealthy benefactors were key to the growth of the Illinois Policy Institute and its partner organizations.
Among them:
The Rauner Family Foundation, created and led by Bruce Rauner, then the leader of a private equity firm. The Rauner foundation donated $625,000 to the Illinois Policy Institute between 2009 and 2013.
A family foundation headed by Richard Uihlein, the leader of a packaging company who lives in Lake Forest. The Uihlein foundation has given $8.6 million to the institute since 2009 and another $2.4 million to the Liberty Justice Center and Think Freely Media.
The Mercer Family Foundation, which has contributed $1.1 million since 2009. The family has been a major financial backer of President Donald Trump and, until a recent falling out, the far-right Breitbart website.
Donors Trust, which distributes money to conservative groups around the country, including those led and funded by the industrialist Koch brothers. Donors Trust gave the institute and Think Freely Media $1.4 million from 2009 to 2015.”
In other news…
Ever since 2010 when the Illinois legislature created a tier two pension system I have been warning that it was a time-bomb that would some day explode, costing taxpayers billions of dollars.
The state’s public pension systems are and have been underfunded for decades.
The obvious solution was to reamortize or reorganize the debt and extend the time-line for payment.
Instead the Democrats, like state representative at the time, now state senator and chair of the Senate Pension Committee, Rob Martwick, chose to create a second tier.
Teachers and other state workers hired after January 1, 2011 would receive upon retirement a lower benefit, would need to work longer to receive the benefit but would be required to pay in the same amount as Tier 1 employees.
I was not the only one who said that this was a stupid idea and that Tier 2 employees would fail to meed the federal standard of “safe harbor.”
Safe Harbor is a federal regulation requiring those like Illinois teachers who don’t receive Social Security and are in a state retirement system like TRS, to receive a benefit equal to or better than Social Security.
Tier 2 teachers are nearing retirement age so the stuff is about to hit the fan.
When they do retire and don’t receive the pension they are entitled to, they will sue.
Either the state or school boards or municipalities will be on the hook to pay what the teachers and state workers are owed.
It is being reported that additional Illinois state pension benefit costs that may be needed to comply with safe harbor will be an estimated $5.6 billion tab through 2045.
That according to an actuarial study published this week.
Senator Rob Martwick’s response?
Don’t worry about it.
But Martwick’s record of being wrong on pensions is a long one.