Emanuel, Unions Gear Up for Chicago Pension Fight

Monday, 08 Apr 2013 12:46 PM

By Sandy Fitzgerald

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Chicago Mayor Rahm Emanuel is gearing up for a tough fight with labor unions as he struggles to resolve a $24 billion municipal pension shortfall, one of the largest in the country.

According to The Wall Street Journal, Emanuel inherited the pension mess when he took office and is now facing bills coming due for pensions that cover teachers, firefighters, and other city workers.

Emanuel says he won't consider raising property taxes, as his administration estimates residents would face a jump in payments of 150 percent. And efforts so far to reach agreements with the unions on benefit cuts have not worked.

The mayor could bypass the unions by persuading the Illinois legislature to trim pension benefits or granting the city the power to do it. But at the same time, the state is also facing its own pension shortfall issues.

Emanuel won the mayor's seat in 2011 despite having little union support in an organized labor town. His relationship with the unions is still unstable. Police sergeants last month rejected a pension offer, and he squared off with the teacher's union last September, when educators walked out on a seven day strike over evaluations and layoffs. Teachers are also fighting back at Emanuel's plans to close more than 50 schools.

Annual pension costs could top $1.1 billion within three years, according Emanuel's administration, even without including teachers' retirements.

"There's a set of choices. Reform pensions and continue to be able do other things that are essential for a great city — or make pension payments and do certain things to the rest of the budget that are not part of a great city," Emanuel said.


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Family of Executed Man's Victims: 'He Laughed at Us'

Friday, 25 Jul 2014 07:20 AM

Jeanne Brown, whose sister and father were murdered in 1989 by Joseph Rudolph Wood, denied reports that Wood suffered du . . .

Joe Scarborough Denies Lobbying Hard for 'Meet the Press' Job

Thursday, 24 Jul 2014 23:07 PM

MSNBC's Joe Scarborough denied reports Thursday that he and his Morning Joe co-host Mika Brzezinski have been "aggress . . .

Laura Ingraham: Rand Paul Closest to Americans on Foreign Policy

Thursday, 24 Jul 2014 21:43 PM

Kentucky Sen. Rand Paul, accused of being an isolationist by some fellow Republicans, is actually more in step with the  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved