House Republicans Say No to Federal Pension Bailout for IL
by Amanda Griffin-Johnson As Illinois state legislators head back to Springfield for the veto session next week, pension reform is the hot topic on everyone’s mind. The time for reform is now, but what solutions are available to legislators? The right way: Taking the difficult, but necessary steps towards real pension reform that ensures there will be money...
by Amanda Griffin-Johnson
As Illinois state legislators head back to Springfield for the veto session next week, pension reform is the hot topic on everyone’s mind. The time for reform is now, but what solutions are available to legislators?
- The right way: Taking the difficult, but necessary steps towards real pension reform that ensures there will be money for retirees when the time comes, while protecting taxpayers from unduly burdensome taxes or service cuts;
- The wrong way: Raising taxes significantly on families and businesses at a time when they are already hit hard by an income tax hike in January and staggeringly high unemployment; or
- The easy way: Asking for a federal bailout so that other states can pay for the fiscal mismanagement and overly generous benefits of Illinois’ pension system.
Today, leading Republican Congressmen and members of Illinois’ congressional delegation sent a letter to Gov. Quinn and Illinois’ four state legislative leaders taking option 3 off the table. In the letter, they urge state leaders to “address [Illinois’] massive unfunded liabilities – and to do so by your own means.” The letter states:
We can say with clarity: there will be no legislative bailouts from the U.S. House of Representatives. The federal government is already borrowing over 40 cents of every dollar it spends – a sad reality House Republicans are working to correct. Given that incredible fiscal weight, and the pressures facing many other States in our Union, the federal government cannot be expected to take on these additional obligations.
Bailing out Illinois for the mistakes of its officials would not help Illinois or America. It wouldn’t be fair to states that have been responsible in their pension funding or benefit guidelines, and in the same token, Illinois taxpayers shouldn’t have to pay for California or New York’s mistakes. This letter simply makes it clear that the House is going to do the right thing and hold states accountable for their actions.
Illinoisans have already made it clear that they believe Illinois is on the wrong path. In a poll conducted on behalf of the Manhattan Institute in September found that 66 percent of likely voters in Illinois oppose a federal bailout of states. The idea of a federal guarantee of pensions has acted as safety net for legislators to fall back on if they don’t enact reforms. This letter takes away that crutch and forces legislators to face the stark reality that ensuring the sustainability of the pension system rests in their hands. The sense of urgency in the state right now should not be dismissed. The longer officials put off fixing the system, the harder changes will be.
The Illinois Policy Institute applauds these U.S. Representatives for standing up for what is right for both Illinois and the country. The full letter is available here. Below is a list of representatives who signed the letter.
Peter Roskam, Chief Deputy Majority Whip
Dave Camp, Chairman, Committee on Ways and Means
Paul Ryan, Chairman, Committee on the Budget
Hal Rogers, Chairman, Committee on Appropriations
Lamar Smith, Chairman, Committee on the Judiciary
Darrell Issa, Chairman, Committee on Oversight and Government Reform
Fred Upton, Chairman, Committee on Energy and Commerce
John Kline, Chairman, Committee on Education and the Workforce
Spencer Bachus, Chairman, Committee on Financial Services
Judy Biggert, Member of Congress
Bob Dold, Member of Congress
Randy Hultgren, Member of Congress
Tim Johnson, Member of Congress
Adam Kinzinger, Member of Congress
Don Manzullo, Member of Congress
Bobby Schilling, Member of Congress
Aaron Schock, Member of Congress
John Shimkus, Member of Congress
Joe Walsh, Member of Congress