Things still aren’t looking up for the Teachers’ Retirement System, or TRS. You’ll remember that it earned a dismal 0.76 percent return on its investments in fiscal year 2012, after predicting 8.5 percent returns. Earlier this year, TRS lowered that expectation, but only slightly: the system is still predicting 8 percent returns this year. But...
The dust has settled from an uneventful veto session. No progress was made. The one attempt at reforming Illinois’ out-of-control pensions that legislators put forward is a step in the right direction, but ultimately would perpetuate the crisis by failing to prescribe the right medicine for the problem at hand. And the efforts to make things...
A member of our community sent the following email to Rep. Jack Franks (D-Woodstock), Sen. Pamela Althoff (R-Crystal Lake) and Gov. Pat Quinn. Subject: 6258 and 4% more the taxpayers will be on the hook for Mr. Franks, Ms. Althoff, Mr. Quinn, Although I agree that comprehensive pension reform must happen in Illinois, how can...
For the second year in a row, the state’s annual pension payment will increase by nearly $1 billion. The combined payment for all five state pension systems will increase to $6.8 billion next year, up from $5.9 billion this year. Annual payments for Illinois’ five pension systems per year, in millions Illinois ended fiscal year...
Last week in Springfield, there was very little legislative activity during the first week of veto session. Such limited action took place that the House canceled Thursday session, and it is rumored that the Legislature will only meet on Tuesday and Wednesday of this week as well. It is expected that the current two-week veto...
During a House Executive Committee meeting this week, one round of testimony began with the argument that Illinois is in a fiscal crisis because it has $9 billion in unpaid bills. That argument couldn’t be more backward. Illinois’ crisis is due to habitual overspending, that results in unpaid bills. Unfortunately, the recent “solution” offered up...
The Illinois Policy Institute opposed eight bills and appeared in several committee meetings during the first week of veto session. Our policy team had crucial face time with legislators and discussed our positions on public policy that affects all Illinoisans. We also reached out to many members of the House Republican staff. Here is an...
It was déjà vu in Springfield as proponents of more debt pushed Illinois to borrow another $4 billion from the bond market. Their promise? That the state’s backlog of bills would finally get paid down. This is exactly what we heard almost two years ago, when advocates of the massive $7 billion income tax increase...
Veto session commenced yesterday morning in Springfield. Typically, we would expect to see movement on controversial bills during this time because of the lame duck legislators who have been voted out of office but still retain voting power. However, impending Democratic supermajorities in both chambers of the Legislature means that we expect to see movement...
Providing entertainment may seem like a far cry from an essential government service, but not in Illinois. The Illinois Department of Commerce and Economic Opportunity (DCEO) doles out hundreds of millions of taxpayer dollars in grants each year. Funding entertainment is one of the many ways in which this money is used. The...
Illinois has a long history of fake reforms – legislative proposals that promise to solve the great policy challenges of the day when passed, but never actually accomplish these goals. There is perhaps no bigger fake reform than the 1995 pension ramp passed by the Republican-controlled General Assembly and signed into law by former Gov....
Families in Illinois are struggling to afford higher education for their children. Incoming undergraduate students have seen tuition and mandatory fees at Illinois’ public universities increase by more than 60 percent since 2004. But that’s not the only problem. The government expects families to pick up the education bill for state employees, too. The Upward Mobility Program, available...
If Illinoisans want a glimpse of the state’s upcoming fiscal cliff, they should look no further than the failed negotiations between the maker of Twinkies and the unions that took them on. Hostess Brand’s bankruptcy is much more than the demise of famous brands like Twinkies, Ho Hos and Wonder Bread. It’s also the tragedy...
For the third time in the last five years, the General Assembly Retirement System (GARS) has posted a negative investment return. Although the pension fund predicted it would earn $4 million in fiscal year 2012, it actually lost $81,448. The fund posted an investment return of -0.14 percent, far below the 7 percent it expected....