Shhh! Top Secret Milwaukee Multi-Million $$ Government Pensions

View release as a PDF
Milwaukee—Taxpayers United of America (TUA) today released the results of its study of the Milwaukee County, Milwaukee Municipal, and Milwaukee government school employees.
“The State of Wisconsin refuses to release actual pension payments in an effort to hide the huge subsidies from taxpayers. We can’t let them get away with that so we estimate the pensions for current government employees, giving taxpayers an idea of what their ‘public servants’ get paid not to work”, stated Jim Tobin, president of TUA.
“Even in Illinois, arguably the most corrupt state in the nation, we can get pension payments with the names of the recipients. This is critical in revealing the inherent problems of the government pension system. But like good politicians, Wisconsin legislators not only granted themselves lush pension payments, but also the protection of a secrecy statue, a law that keeps their pensions secret from the taxpayers who pay for them.”
“If we have learned anything about government over recent months, it is that the very things they try to keep secret are the very things about which we should know. While Wisconsin government pensions are not in as much trouble as Illinois’, there are always problems in a system that requires you to put large amounts of cash in the care of the government without completely open review.”
“Even with the recent, positive reforms implemented in Wisconsin, there is a long way to go to fix the pension problem here in Wisconsin. Looking at the top salaries in Milwaukee and estimating pensions for those employees, it is easy to see that a system that pays so many millions of dollars to people who do absolutely nothing is unsustainable. About 80% of local taxes go to pay salaries and benefits of government employees. As more retirees have to be paid out of that 80%, less money is available to pay current employees for the services we need today.”
“Wisconsin, like all state pension systems, gets away with very loose standards in calculating their pension system’s health. Unlike pensions in the private sector, government pension fund assets are over-stated. But when new accounting standards go into effect next year, even Wisconsin which boasts a fully-funded pension system, will be underfunded by billions of dollars.”
“But average taxpayers can’t even fathom billions of dollars in unfunded liabilities. When we show taxpayers exactly what their government-employee neighbors are being paid not to work, they immediately understand the problem created by paying for services performed yesterday with tax dollars that are needed for services performed today.”

“Gregory Thornton, an employee at Vincent High School, gets a salary of $265,000. On top of that, he gets about $75,000 in fringe benefits – each year. His estimated annual pension is $211,500 and his estimated lifetime payout is a stunning $4,441,500.”
“Milwaukee County government employee, Thomas Harding, gets an annual salary of $254,068. His estimated lifetime pension payout is a cool $4,280,793 based on his estimated annual pension of $203,847.”
“While our pension estimates are a very useful education tool, I encourage Wisconsin taxpayers to demand the right to review pension payments, especially since taxpayers, until the recent changes, have funded nearly 100% of the pensions and health-care premiums on behalf of government employees. I have written letters to Governor Walker and every member of the state legislature, urging them to stop hiding pension payments from taxpayer review.”
Lawmakers aren’t even willing to answer questions about the secrecy surrounding pension payments. Wisconsin Reporter Bureau Chief, Matt Kittle said about the secrecy statute:

 ‘Wisconsin Reporter on Tuesday attempted to contact several state lawmakers asking why Wisconsin keeps pension information private while so many other states shine a light. None responded to the question as of this post.’

So not only are they hiding behind a secrecy law, they are hiding from the press to even answer to the public.”
“Wisconsin needs not only to be more transparent, but to continue with pension reforms that will bring its government employee benefits in line with those of the private sector. Specifically, government pensions need to be replaced with 401k-style retirement savings accounts where taxpayer contributions are made when the conditions allow it. Government employees need to increase their contributions to match the level of the private sector, and government retirees and employees need to pay for at least half of their health-care premiums.”
Pension Estimate Assumptions:
1. Assumes employee retires in 1 year and this salary would be 2nd to last salary
2. Assumes employee is on the payroll for 41 years or more and retires at age 65 and pension = 70%
3. Plus Social Security, assuming 4% annual salary increases over last 35 years
4. “Total Pension Payout” uses IRS Life Expectancy Tables for age 65 (21 years).

Chicago Now | Kelly responds to Illinois Policy Institute's John Tillman on school choice

Jim Tobin, President of Taxpayers United for America, was mentioned in the following article by William Kelly at Chicago Now.

chicagonowkellyChicago, Illinois, June 24, 2013 – I read with some interest “The Fight for Educational Choice Lives On” by Illinois Policy Institute’s John Tillman on the Illinois Review. I, too, share the dream that is true educational choice.

My parents were both teachers; in fact, my father, William F. Kelly, who passed away in 2006, was principal of Abbott Elementary on Chicago’s South Side and spent his decades on Earth filling young minds with wisdom. In addition to his subscriptions to Smithsonian and American Heritage Magazine, teaching was my dad’s great passion and he did it well. He never tired of the written word and he consumed it voraciously. Consequently, education and educational choice has always meant a great deal to me.

For me, school isn’t a place you go to; it is a perpetual state of being. My father took every spare minute to teach life’s critical lessons and he relished the opportunity. I guess you could say I spent my entire childhood in the “principal’s office.”

That is why I take issue about what true educational choice is and what it is not.

In his piece, Tillman talks about the foes of educational choice: the unions. But unions aren’t the only ones opposed to true school choice. In the end, school choice is just another fight over property tax dollars. And the unions aren’t the only ones fighting for their slice of the taxpayer pie; there are wealthy private interests that are trying to get their grubby little hands on Illinois tax dollars too. Why do you think Mayor Rahm Emanuel and his donors are even involved?

I have been involved in the fight for taxpayer rights since the early 1990s; I learned from the best – Jim Tobin of Taxpayers United of America – the barracuda of taxpayer watchdogs in Illinois and one of the most ethical men I have ever met. Sadly, there aren’t very many real Jim Tobins left.

I learned some important lessons from Tobin, including: Always look beneath the surface and  never take an Illinois politician at his word. Of course, a politician isn’t just a person holding or running for public office; a politician is anyone involved in the political process for advancement or gain.

That is why it is important to look beneath the surface of this school choice debate and ask the critical questions. The recent controversy over online charter schools and the failure of the effort is a case in point. We have one year before the moratorium on publicly-funded online charter schools is lifted and there is still time to protect taxpayers and their families.

The key issues remain unresolved:

First, the Illinois State Charter School commission is flawed. The commission should not receive a 3% kickback for every new charter school it approves. That is an incentive to approve disreputable charter schools – virtual or otherwise. It also smacks of special interests and pay-to-play politics. It is a system ripe for abuse.

Second, if one of the benefits of online charter schools is to save taxpayer dollars, then save them.  K12, Inc., which was behind this recent 18 suburban school district virtual charter school play, asked for $8,000 in taxpayer dollars per student. Yet K12 has operated with far less per student in poorer school districts. Here, the school isn’t “brick-and-mortar” and yet wanted $8,000 per student. Why?

In the first eight months of 2012, K12, Inc. spent $21.5 million in advertising appeals and has been criticized for the millions spent on lobbying and executive compensation. There’s your answer.

Third, if students drop out of the virtual charter school, the school should be forced to give back a pro-rated amount of tax dollars back to the state. The charter school shouldn’t keep the tax dollars as a windfall for its failure to retain students. And drop-out rates for K12, Inc.’s schools are high.

Fourth, any school board of any publicly-funded charter school or virtual charter school should be accountable to the parents and voters who send their children to that school.

And lastly, true school choice means that parents should be able to send their kids to any school of their choice – religious or otherwise – and receive a tax voucher to pay for it. Their choice should not be limited to a bad public school and an even worse taxpayer-funded virtual charter school. Anyone who says this is school choice is pulling our educational leg.

Online or digital learning is a critical tool for the future of education – one my father would have appreciated. But publicly-funded virtual charter schools are not a substitute for real school choice in education. I’m not fooled by all the slick marketing without the practice. That is another lesson the taxpayers and real school choice advocates really don’t need to learn.

Cook County Property Taxes Increase to Pay Government Pension Millionaires

View as a PDF
Chicago—Taxpayers United of America (TUA) today released the results of its study of the Cook County Pension Fund (CCPF) top government pensions.
“There are 276 Crook County pensioners getting over $100,000 in annual pension payments taking the total for the state over 10,000”, according to TUA president, Jim Tobin. “The average retirement age of these 276 retirees is only about 60 with an average estimated lifetime payout of $4.7 million.”
“As Crook County property owners receive their property tax bills next week, they need to remember two things: 80% of the property taxes they are about to pay is used to fund the salaries and benefits of the government employees, and second, the legislators we elected have failed to reform the very system that siphons away our wealth for their own benefit.”
“Illinois House Speaker, Michael Madigan (D), and Senate Majority Leader, John Cullerton (D), have failed in their roles as leaders of the Illinois General Assembly and should be fired by voters. The government pension system has failed and it didn’t happen over night or without warning. Taxpayers can’t afford to pay people for the services they need today if we are paying millions to people who no longer work! How can we afford to staff Stroger Hospital with competent doctors today if we are spending all of our resources to pay the doctors who have retired?”
“We need to pay all government employees fair wages that allow them to save for their own retirement. Cook County taxpayers are slaves to their property taxes. Cook County has some of the highest property taxes in the country and government salaries and pensions are the reason.”
“Real pension reforms were proposed in SB2026 which was introduced by Illinois State Sen. Jim Oberweis (R-25, North Aurora), but that bill did nothing to help the union bosses maintain favor with their rank and file and was quickly rejected by Senate ‘leadership’.”
“The purpose of our pension study is to put some perspective around individual pensions, to put them in terms to which the average taxpayer can relate. Illinois taxpayers, whose average household income is $54,598, and struggle with 9.7% unemployment need to know how much Illinois’ government retirees are being paid not to work and the astronomical accumulation of those payments over an average lifetime.”
View Cook County Government Pensions greater than $100k.
Alon Winnie collects a taxpayer-funded annual pension of $330,323 and will accumulate a stunning $4,698,522 in lifetime pension payments.*”
John Barrett has an annual pension of $321,854. Having retired at only 58 years of age, he will enjoy a staggering estimated lifetime payout of $10,037,135. His contribution of the estimated lifetime payout would be only 3.8%.* ”
“Without sweeping and immediate reform, Illinois’ government pension systems will collapse by 2015. It’s mathematically impossible to tax your way out of this problem. Illinois has more than 10,000 retirees collecting more than $100,000; in 2020, that will be over 25,000 six-figure pensioners. Real pension reform must include raising the retirement age to 67, increasing employee contributions by 10%, increasing healthcare contributions to 50%, eliminating all COLA’s, and replacing the defined benefit system with a defined contribution system for all new hires.”
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).