The Illinois Policy Institute has an alternative to avoid a property tax hike to fix Chicago’s pension problem.

Mayor Emanuel says he needs a property tax increase to help bail out city pensions but Ted Dabrowski of the Illinois Policy Institute says there is no need if the Mayor puts the city workers into a 401k-type plan.

“We cut Chicago’s pension shortfall in half,” he said. “And by cutting it in half we gain a lot of flexibility. Number two, because we stop the defined benefit program going forward, we don’t keep having this massive debt that keeps cropping up every single year. By ending the plan and cutting the debt in half, then we can manage to pay our way out of it without massive tax increases.”

Dabrowski passed out detailed copies of the plan to the aldermen in hopes they will refuse the vote for the property tax hike the mayor wants.

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