by Paul Schumacher The Illinois Department of Employment Security, or IDES, announced today that the Illinois unemployment rate declined to 9.1 percent in May from 9.3 percent in April. Illinois’ unemployment rate is still one and a half percentage points above the national average, which rose to 7.6 percent in May. Source: Illinois Department of Employment Security There...
Tucked in during the Illinois General Assembly’s special session to discuss the state’s pension crisis was a proposal to give a corporate giant a special tax break. According to the State Journal-Register, OfficeMax Inc. is asking the state of Illinois for tax breaks to keep the company’s headquarters in-state after the office supply chain’s merger with...
by Paul Kersey Possible gubernatorial candidate Bill Daley said something interesting at his “pension plan” news conference Monday morning. It just wasn’t really what he wanted to emphasize. Though he summoned the media for the occasion, the former White House Chief of Staff had little to say about why pensions in Illinois are in the...
Chicago Public Schools pension payment will increase by roughly $400 million due to the expiration of a temporary “pension holiday.” Local lawmakers knew this was coming but did nothing to prepare for the increased payment. The good news is there is a simple, responsible way to cut more than 30 percent of the increased pension...
In early June, Gov. Pat Quinn called lawmakers to return to Springfield on June 19 for a one-day special session on pension reform. This came in the wake of yet another downgrade of Illinois’ credit as a result of inaction on pension reform when the legislative session adjourned on May 31. Our most recent knocks from Moody’s Investors Service and Fitch Ratings mark Illinois’ 12th...
by Daniel Anthony Each quarter the Illinois Policy Institute produces Compass, a quarterly publication filled with original writing on topics that will help make Illinois first in economic outlook and job creation. Compass also promotes personal freedom and prosperity in Illinois and America. This issue of Compass focuses on the power of school choice. Many...
It’s taken as fact that Illinois’ five state-run pension systems have a $100 billion funding shortfall. That’s what the official reports say. But all that’s about to change. Moody’s Investors Service is making good on its promise to evaluate state pension plans on more realistic assumptions. The rating agency has long critiqued the pension funds’...
Public worker compensation is a major factor in the debate over pension reform. Teacher’s salaries are particularly important because the Teachers’ Retirement System, or TRS, is a major driver of the pension crisis. The total unfunded liability for TRS is $53.5 billion, more than half of the state’s total shortfall. TRS maintains more than 130,000 active...
State Reps. Tom Morrison (R-Palatine) and Jeanne Ives (R-Wheaton) have proposed House Bill 3303, which is based the Institute’s pension reform plan. State Sen. Jim Oberweis (R-Sugar Grove) introduced a floor amendment to Senate Bill 2026, which is identical to House Bill 3303. The problem Illinois has the nation’s worst-funded pension systems. The unfunded liability currently stands at more...
In March, the Illinois Policy Institute released a report on the lack of fiscal notes – or legislative “price tags” – on legislative bills that passed the 97th General Assembly. Fiscal notes estimate the costs, savings and revenue gain or loss resulting from the implementation of proposed legislation. Crafted properly, fiscal notes can provide a wealth of...
by Andrew Wyatt The village of Bedford Park has had some trouble managing its red-light camera program and posting traffic safety statistics online in the past several years. In a rush to implement its red-light camera program, village officials pulled an “Animal House” and mistakenly used boilerplate language on the village’s website: “The purpose of this...
This afternoon Chicago Public Schools officials announced layoffs of teachers and other staff. Overall 855 school district employees will be let go: 663 employees from 49 schools that are slated for closure and another 192 staff from schools that are slated for “turnaround.” CPS currently employs 41,500 staff, including more than 23,000 teachers. While the immediate cause...
Earlier this year we looked at the Illinois Auditor General’s findings on Southern Illinois University and the entire state university system. Overall, we found a disturbing lack of compliance with state and federal law. But SIU was one of the lone bright spots, tying Illinois State University for the fewest amount of compliance violations with six...
by Ben VanMetre Political leadership in Illinois punted on pension reform during the recent spring legislative session — a move that resulted in back-to-back credit rating downgrades. The General Assembly’s inaction and the resulting credit blows caused Gov. Pat Quinn to call lawmakers back to session. The purpose of the June 19 special session is...