QUOTE OF THE DAY
Chicago Sun Times: Mike Madigan wins court battle against referendums
In a win for Illinois House Speaker Michael Madigan, a Cook County judge on Friday ruled in favor of a lawsuit that aimed to stop two referendums on the November ballot — one that would impose term limits, the other that would change the state’s redistricting process.
Cook County Judge Mary Mikva blocked election officials from putting either measure before voters, declaring that both were unconstitutional.
Behind the lawsuit was Madigan, the longtime legislative leader and state Democratic Party boss.
Wire Points: The insane implications of keeping two sets of books for pensions
Bloomberg has a good story out on how new accounting rules will spike the unfunded liabilities reported by public pensions. But there’s more to the story.
Bloomberg didn’t put it this way, but it’s important to notice that major public pensions in Illinois effectively will be keeping two very different sets of books. The solvency of the state and many of its cities, and their capacity to fund schools and other essential services, will be determined largely by arcane accounting assumptions set by pension boards of trustees choosing to ignore professionally established accounting principles.
One set of books will comply with the new Governmental Accounting Standard Board rules going into effect next week and will go into official government financial statements. It will show the dramatically worse predicament of the pensions.
State Journal Register: Initial pension reform ruling likely months away
It will be next year before there is an initial ruling on whether the sweeping pension reform measures passed by the legislature in December violate the state Constitution.
During a hearing Thursday, Sangamon County Circuit Judge John Belz rejected a suggestion from lawyers representing state retiree groups and others seeking to overturn the law to have the cases proceed on a parallel track that the lawyers said would help speed up a resolution.
Belz said such an approach could lead to piecemeal rulings on different aspects of the lawsuits and actually prolong a final decision.
State Journal Register: Quinn won’t testify about anti-violence program
Gov. Pat Quinn says he has no intentions of testifying before a legislative commission about the scandal-laden anti-violence program he started in 2010.
The Chicago Democrat hasn’t been subpoenaed or invited less informally. But seven former officials with his administration have been compelled to appear before the Legislative Audit Commission next month. They’re expected to address problems with management and spending under Quinn’s $55 million Neighborhood Recovery Initiative.
Quinn started it to combat violence in several Chicago neighborhoods, but a state audit earlier this year found “pervasive” issues. Federal and Cook County authorities are also investigating the program.
The Civic Federation: Teachers’ Retirement System Changes Will Affect Pension Savings
The State of Illinois’ largest retirement system lowered its assumed rate of return on investment—a decision that will reduce State savings from pension reforms enacted in December 2013.
The Teachers’ Retirement System (TRS) Board of Trustees voted on June 24, 2014 to reduce the assumed rate of investment return from 8.0% to 7.5%. As discussed here, TRS previously lowered the rate to 8.0% from 8.5% in September 2012.
The assumed rate of return is used to calculate the present value of future pension obligations. Reducing the rate increases the present value of future commitments to employees and retirees and results in higher statutorily required State pension contributions. If investment returns are assumed to be lower, then the State must increase its contributions to provide a given amount of retirement benefits.
Chicago Sun Times: CTU chief Karen Lewis ‘seriously thinking’ of running for mayor
Chicago Teachers Union President Karen Lewis said Thursday she is “seriously thinking” about mounting a formal challenge to Rahm Emanuel.
“I’m a little sick of the mayor and I don’t see anyone stepping up,” Lewis told the Chicago Sun-Times by telephone Thursday evening. “I am seriously thinking about it.”
She denied a WMAQ-Channel 5 report that she has met with election lawyers about her own campaign possibilities, saying she has spoken with attorneys about CTU members who are running for office.
CARTOON OF THE DAY
