AFP-Illinois, the Illinois chapter of Americans for Prosperity, is gearing up for the April 9 consolidated local elections. The group recently launched a new website designed to inform Illinois residents of local referendums that could cause their taxes to go up and are urging people to fight local tax hikes. In a recent newsletter announcing the initiative for...
On March 11, 2013, the Securities and Exchange Commission charged Illinois with securities fraud. The SEC accused the state of misleading investors by understating the depth of the pension crisis. The most revealing statement from the SEC: “The statutory plan structurally underfunded the state’s pension obligations and backloaded the majority of pension contributions far into...
[updated 3.15.13] Illinois politicians are not honest about the depth of the state’s pension crisis. They chronically understate the scale of the problem to taxpayers and state workers. According to the federal Securities and Exchange Commission, the state has misled investors as well. Today the SEC announced it was charging Illinois with securities fraud. From a...
HB 3411 known as Cross-Nekritz – the latest iteration of Nekritz-Biss – paints over Illinois’ pension crisis with more of the same broken policies that have pushed government retirement systems to the edge of collapse. This bill: Perpetuates unstable, unpredictable and unmanageable defined benefit systems – The key driver of Illinois’ pension crisis is the state’s defined...
Some of the tone of Illinois Gov. Pat Quinn’s rhetoric was a move in the right direction during his budget address; but his strategy and plan for execution didn’t match. While painting an optimistic picture of what he has achieved during his tenure, Quinn outlined what he called an “honest” and “balanced” budget for fiscal...
“Illinois will lose approximately $33.4 million in funding for primary and secondary education, putting around 460 teacher and aide jobs at risk.” “Up to 1,100 disadvantaged and vulnerable children could lose access to child care.” “Illinois would lose approximately $764,000 in funds that provide meals for seniors.” “Vital services will be cut for children, seniors,...
Health nuts and anti-tobacco fanatics, get out your streamers and champagne: Cook County’s new $1 per pack cigarette tax hike goes into effect today. Contrary to the so-called health conscious intentions of this tax’s creators, however, Cook County smokers will continue to buy cigarettes. Lots of them. Last year, Cook County brought in approximately $115 million...
Illinois lawmakers passed a 67% income tax hike in 2011. They said that the tax hike would be temporary, making a promise to taxpayers that it would sunset on Jan. 1st, 2015. But there have been absolutely no reform efforts to date that would reduce spending enough for lawmakers to keep their promise. And with...
Late last year California passed a bill that implemented what some would like to call sweeping government worker pension reforms.
Illinois is in crisis. According to official government numbers, Illinois has an unfunded pension liability of $96 billion – the worst in the nation. This heavy debt burden, combined with the state’s culture of out-of-control, wasteful spending, has driven the state into an economic death spiral. Illinois cannot be economically prosperous until real pension reform...
Key differences between HB3411 and HB3303 HB3411: Rep. Tom Cross, Rep. Elaine Nekritz bill HB3303: Rep. Tom Morrison bill to be introduced on Thursday (Institute supported) PENSION RAMP HB3411: Keeps pension ramp, so pension contributions increase each and every year. HB3303: Eliminates pension ramp, so pension contributions remain level. RETIREMENT CONTROL HB3411: Keeps politicians in...
The only way to end Illinois’ pension crisis is to empower government workers by transitioning benefits for all future work to a defined contribution system.
The Chicago Teachers’ Pension Fund, or CTPF, lost money last year. Although pension trustees predicted the fund would earn $778 million in fiscal year 2012, the fund actually lost more than $38 million. The system posted an investment return of -0.4 percent, far below the 8 percent expected. That brings the five-year average return to...
Illinois state Rep. Lou Lang, D-Skokie, has proposed legislation to try to address the state’s pension crisis by permanently locking in the “temporary” 2011 67% income tax increase, raising employee contributions and stretching out state pension payments. “We have close to a $100 billion unfunded liability in our pension system,” Lang said. “This unfunded liability...