Pensions and Denial

Today's Tribune has a story that has Mayor Emanuel blaming the CPS closings and the city's reduced bond rating once again on pensions. He says:

If anyone doubted the severity of the pension problems, the mayor said Sunday, last week's events should serve as something of a "wake-up call." 

"Denial," he said, "is not a long-term strategy."

Denial. An interesting word choice. Especially as he relates it to a long-term strategy. CPS denied payment to the pension fund for a long term. Between 1995 and 2005 CPS collected more than $2 billion in pension tax revenue but contributed nothing to the pension fund. Meanwhile, the Chicago Teachers Pension Fund (CTPF) members contributed 9% from every paycheck every two weeks. The problem does not rest with member's contributions or pensioner benefits.

The average CTPF retiree gets a pension of $42,000 per year. They are not eligible for social security. Pensions are a contract and a promise made to teachers. For most it will be their only means of living after they retire. To pull that from people that have dedicated their lives to teaching this city's children and to blame it on those same people is inhuman. 

The mayor and CPS have been given several suggestions about how to increase revenue. Changing TIF funding, closing corporate tax loopholes, ending toxic bank swaps, introducing a financial transaction tax and a progressive income tax system have been ignored by the mayor, CPS and the state. Even the Tribune and Sun-Times say they should at least be looked at.

Mayor Emanuel should consider these strategies and should be pushing for every source of revenue he can get for our schools and city. After all, "Denial is not a long-term strategy."