Amendment 1 would stop voters and lawmakers from curbing government unions’ ability to demand more from taxpayers, including platinum health insurance the average Illinoisan doesn’t enjoy.
Illinois lawmakers haven’t taken up pension legislation in nearly a decade. It’s time to give voters a chance to fix the problem driving state fiscal woes. A constitutional amendment can fix the unsustainable public pension systems.
Fiscal watchdog Truth in Accounting again gave an ‘F’ grade to Chicago, thanks to high debt driven by unsustainable pension costs. Fixing the problem will take amending the Illinois Constitution.
Illinois’ pension debt is the highest of any state. An easy fix to state law would start the Tier 3 retirement program, saving $577 million while workers gain options.
The village of Skokie issued $176 million in new bonds to fund shortfalls in public safety pensions. The village joins a growing list of municipalities forced to borrow to meet “unsustainable” pension obligations.
Illinois allocates more of its budget to pensions than any other state, but pension spending has only skyrocketed. A constitutional amendment is the only way to reform the state’s unsustainable and underfunded pension systems.
“I just feel that as a taxpayer, I should be able to decide when I give, and receive, my money. Also. I should be able to decide whether I want to contribute to a pension. I know how to budget my own finances from month to month. That’s something that I teach in my classes.”
Illinois’ worst-in-the-nation pension debt shrank slightly after investments more than tripled predictions, thanks partly to COVID-19 stimulus. Experts caution 1 year cannot undo decades of overpromising and underfunding.
Gov. J.B. Pritzker signed a bill to consolidate local police and firefighter pensions from across downstate Illinois, but beneficiaries are suing because the state is notorious for poor pension management.
Peoria leaders said they are in ‘survival mode’ and need to take $4 million from this year’s budget to help make pension payments for the next two years. The mayor calls for state action to fix the pension debt crisis.
“City officials claim pension payments are going up faster than the city can handle them. Yet, several city officials make comfortable pensions and retirements, and continue to spend our tax dollars on things that don’t serve the taxpayers.”
Barring reforms, the Teachers’ Retirement System could eventually run out of money and be unable to pay promised benefits to retirees, all while making it more expensive for teachers to live in Illinois.
Bills backed by Illinois public-sector unions would give them more power in administering pension funds despite evidence of worse outcomes.
The mayor’s Chicago budget plan includes a $76.5 million property tax hike despite $3.5 billion in federal aid and funds permanent programs with temporary revenues but includes no push to fix pensions.