Capitol Updates: Special session

In early June, Gov. Pat Quinn called lawmakers to return to Springfield on June 19 for a one-day special session on pension reform. This came in the wake of yet another downgrade of Illinois’ credit as a result of inaction on pension reform when the legislative session adjourned on May 31. Our most recent knocks from Moody’s Investors Service and Fitch Ratings  mark Illinois’ 12th...

In early June, Gov. Pat Quinn called lawmakers to return to Springfield on June 19 for a one-day special session on pension reform. This came in the wake of yet another downgrade of Illinois’ credit as a result of inaction on pension reform when the legislative session adjourned on May 31.

Our most recent knocks from Moody’s Investors Service and Fitch Ratings  mark Illinois’ 12th and 13th downgrades under Quinn.

This isn’t the first time that Quinn has called for a special session on pension reform. He also ordered lawmakers to return to Springfield to address the state’s pension problem last August, but nothing was accomplished. Meanwhile, pension inaction costs the state $21 million per day. Furthermore, Illinois’ pension debt will double once new accounting methodology from Moody’s kicks in.

This is why the Illinois Policy Institute held a press conference Monday to show a path forward on pension reform that is constitutional, would immediately cut Illinois’ $100 billion unfunded pension liability by nearly half, and would protect the benefits earned to date by current government workers.

We applaud state Sens. Jim Oberweis and Michael Connelly, and state Reps. Tom Morrison, Jeanne Ives and Ron Sandack for standing behind a positive, alternative vision for pension reform that actually solves the state’s crisis. The Institute-backed plan (House Bill 3303 and Senate Bill 2026) will not see movement during special session, but we are excited by the prospect of it gaining traction as more and more lawmakers realize the danger of a funding guarantee and that it is irresponsible to maintain a broken defined benefit system that was designed to fail.

Yesterday afternoon, the House Personnel and Pensions Committee heard the same competing plans put forward by House Speaker Mike Madigan and Senate President John Cullerton, neither of which is expected to have enough support to pass both chambers – especially during a special session when bill passage requires a three-fifths majority. The Institute’s Government Affairs team expects a continued stalemate. At Monday’s press conference, Sandack also predicted that lawmakers would not pass the House or Senate pension plans when they return to the floor today.

The Institute’s Senior Director of Government Affairs, Matt Paprocki, will be posting live updates from Springfield via twitter: @mtpaprocki

We’ll keep you posted.