Friday, September 8, 2017

How does the judiciary raise taxes?

Illinois may be entering a new chapter in the saga of local pension debt after an appeals court this month ordered a cash-strapped Illinois city to raise property taxes to meet its firefighter pension obligations.In a complex 86-page decision, the First District Appellate Court decided that the city of Harvey must pay $15 million in damages to the local pension fund and approve a property tax levy specifically for the pension system, which the court said was on the brink of bankruptcy.The Firefighters’ Pension Fund in Harvey, a city that has been plagued by mismanagement, was only 27.2 percent funded as of 2014, the court found. By contrast, the city of Chicago’s four pensions are on average only 21 percent funded.
The judge is out of bounds.  The ruling is that the city owes the money and collectors can sue for assets, no specific action can be taken by the judge in this case.   This is not even a bankruptcy case, and the judge cannot order taxes in a bankruptcy.   This should be overturned.

No comments: