Chicago’s pension systems for city workers have $51 billion in debt, so much that they are in worse shape than 43 states. Fixing them requires Chicago’s mayor to push for a change in the Illinois Constitution.
Barrington Township will be the first local government in Illinois to give taxpayers a vote on reforming the single-largest property tax driver in the state: public pensions. The advisory referendum will be on the ballot Nov. 5.
Several bills that enhance Tier 2 state worker pension benefits, reduce retirement ages, allow for large end-of-career lump-sum payments and other pension sweeteners are moving through the Illinois General Assembly. They appear to be heading for a vote.
Despite taking up 20% of the state’s general funds and $11.6 billion in total, experts said lawmakers still underpaid the five statewide government retirement plans.
A commission reported $1.4 billion is needed from taxpayers as soon as 2035 to fix the state funding drop at Illinois public universities. Instead, they should be pushing for pension reform.
Every Illinois public university received about one-third less operational funding from the state in fiscal year 2024 than 15 years ago. University of Illinois spending per student dropped by nearly half.
The bill introduced by state Rep. Tim Ozinga would redirect savings from shrinking pension payments to support local school districts and reduce Illinois’ second-in-the -nation property taxes. Some districts could see their tax bills cut in half.
Illinois’ institutions of higher education will get nearly $530 million less from lawmakers to run this year than they did in fiscal year 2009, adjusted for inflation. Coupled with rapidly rising pensions, students and their families can expect ever-higher tuition costs.
The Illinois Supreme Court voted to uphold a law consolidating 649 municipal police and firefighter pension funds. It may help the state’s pension woes, but amending the Illinois Constitution is needed for real solutions.
At a press conference, a new alliance said failure to address Chicago’s pension problems will threaten public services, fail retirees and push taxes higher so more people are encouraged to leave Illinois.
Chicago's public pension crisis is the target of a new group called the Taxpayer Pension Alliance, which includes the Illinois Policy Institute. The alliance's launch included this statement by the institute's head of policy.
Unfunded liabilities for Illinois’ five statewide pension systems grew by $2.5 billion in a year, hitting its second-highest level since 2009. Researchers attributed most of the growth to “larger than expected salary increases.”