Emanuel's pension plan: Relief on payments, casino to pay for it

The Chicago Tribune reports:

Mayor Rahm Emanuel is trying to solve his police and fire pension problem by paying less upfront, taking longer to pay off the debt and getting some of the money to cover what the city owes from a Chicago casino.

The approach is designed to soften a massive financial hit expected next year, when the city is required to increase its payments into the two pension funds by $549 million as required by a 2010 state law. That's equal to nearly one-sixth of the city's yearly operating budget and accounts for the bulk of a 2016 budget shortfall now pegged at nearly $1 billion.

Emanuel, however, wants to hit the reset button. Instead of paying the additional $549 million next year, the city would spend significantly less than that. Then the city would start to increase how much it puts into the police and fire pension systems over a number of years while also spreading out its payments over a longer period of time.

Begging in Blue America.