Emanuel Proposes Legalizing Weed, Opening Casino To Fund Pensions

CHICAGO — Mayor Rahm Emanuel on Wednesday proposed legalizing recreational marijuana and opening a casino in Chicago to help ease the city's pension problems. In a meeting at City Hall, Emanuel outlined his plan to address the pension crisis, which will need nearly a billion dollars of new annual retirement payments by 2023.

In the next several years, Chicago's pension obligations are projected to increase based on state law. In 2020, the city will require an additional $276 million, and in 2022, an additional $310 million will be required.

"The truth is — going back decades, too many elected officials, labor leaders, and civic leaders, people in positions of responsibility, agreed to a funding and benefits system that was not sustainable and therefore not responsible," Emanuel said in the meeting. "Some knew it, and others should have known it."

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Emanuel called on state lawmakers to approve legislation to legalize recreational marijuana. All revenue from the marijuana and a Chicago casino would go to the pensions, he said.

“In 2011, Chicago’s pension funds were heading toward insolvency, jeopardizing a secure retirement for workers like first responders and teachers," Emanuel said in a media release. "Together, we have made progress to ensure these hard-working Chicagoans have a retirement they can depend on as well."

The mayor also advocated for amending the state constitution to allow public employee pension benefits to be adjusted. The Illinois Constitution currently states that the pensions "shall not be diminished or impaired."

Emanuel also called for amending the constitution to allow for people who earn higher incomes to be charged at a greater income tax rate. Under the current constitution, everyone pays the same tax rate, regardless of their income.

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