The U.S. Treasury Department released a statement on Tuesday, confirming that the federal government has topped $16,000,000,000,000 in debt. (That’s $16 trillion, if you lost count of all the zeros). When combined with state level debt ($4.19 trillion), the number tops $20 trillion in total public debt. At the end of 2008, just before President Obama officially...
As Illinois motorists hit the road for Labor Day weekend, they’ll shell out an average of $4.14 for a gallon of gas. In Chicago, motorists are paying $4.31 a gallon, according to the AAA. That’s a whopping 48 cents more than the national average at $3.83 a gallon. At these prices, motorists in Chicago are paying...
S&P’s latest downgrade should come as no surprise. It’s just another mark of shame for a leaderless state spiraling out of control. The downgrade was a reaction to the state’s August 17th failure to reform its pension problems. In that meeting, the only bill on the table reduced Illinois’ total pension debt by less than...
New report details Illinois
Illinois reports that it owes $83 billion to its five public pension funds. Worse yet, under new reporting requirements by the Governmental Accounting Standards Board and Moody’s Investment Services, the state’s pension debt will more than double. There are a lot of numbers being thrown around in the fight over pension reform. But these are the...
Maryland stands to lose big if the government steps in to save state pension systems
by Conor Durkin When politicians lose interest in reform, taxpayers “lose interest,” too. Last week Gov. Quinn’s special legislative session failed to pass a bill dealing with Illinois’ pension problems. Yet even if any measure had passed, Illinois’ massive problems would persist. The proposals debated in Springfield were far too small to make a visible...
While they only managed to pass an amendment, the House provided some memorable quotes.
Illinois’ state pension systems are barreling towards insolvency. Without a complete pension overhaul, Illinois’ five pension systems may reach their breaking point. There is only one way to prevent a collapse. Illinois must shift from defined benefit (DB) to defined contribution (DC) plans. In a DB plan, an employer pays fixed, regular pension payments over a...
THE PROBLEM Illinois reports that it owes $83 billion to its five public pension funds. That amount represents the chronic failure of the state to fully fund its pension systems, overly generous retirement benefits for state workers, and the inability of those funds to meet their investment targets. Unfortunately, this $83 billion figure grossly understates...
When Rhode Island saw the writing on the wall late last year, its legislature did something no one thought it could do. It passed the boldest pension reforms in the nation. A democrat-controlled state, with the second-worst funded pension system in the nation, passed a series of reforms that cut the state’s unfunded liabilities by...
Just over the past five years, 71 cents from every new dollar set aside by state government for Pk-12 education went to teacher retirement costs.
Illinois survey of 500 likely voters Who should fund the employer share of teacher pensions: the state or local school districts? Will local pension accountability lead to higher property taxes? Last month, these questions prompted legislative talks over pension reform to come to a standstill. The results of a new poll commissioned by the Institute finds that public...
Last week, the Governmental Accounting Standards Board, or GASB, finalized new rules to make pension funding more transparent. These new rules require governments to use more appropriate discount rates than most public pension plans have been using. Pension plans with sufficient funds set aside to pay future benefits can continue to discount future liabilities by current investment...