As lawmakers consider massive tax hikes on Illinoisans, they should look to consolidate nearly 7,000 units of local government and to cut their high administrative costs.
Palatine-area Community Consolidated School District 15 is once again a hotbed of debate, as the school board that recently tied taxpayers to a 10-year union contract has now approved a $130 million building referendum to be placed on the November ballot. Before voting, residents need to take into consideration the school board’s history of closed-door decision-making, as well as the substantial economic impact the referendum could have on local taxpayers.
Many educators are wary of a strike’s hardships and long-term consequences for students, their families and the educators themselves. These teachers can remove themselves from CTU authority and the conflict between union priorities and students’ needs.
The Illinois Teachers’ Retirement System’s actuarial changes will drive up taxpayer contributions by $421 million in 2017. These latest changes prove Illinois’ pension math doesn’t work.
Chicago Public Schools officials had an opportunity to enact serious reforms addressing the district’s dire financial condition, but they instead opted to further burden Chicago taxpayers without offering any change.
More realistic investment return assumptions by the Teachers’ Retirement System mean Illinois taxpayer contributions to the fund could rise by hundreds of millions of dollars. Ending teacher pension pickups would alleviate the burden on Illinois taxpayers.
The Illinois Teachers’ Retirement System’s adoption of more realistic investment return assumptions would cause the system’s unfunded liabilities to grow by about $6 billion above their current $62 billion level.
The stopgap budget passed by the General Assembly provides six months worth of funding for government services such as road construction, as well as a full K-12 education budget for the 2016-2017 school year, property-tax-raising authority for Chicago, and more state funding of pensions for Chicago Public Schools teachers.
Until CPS passes necessary spending and pension reforms, giving any additional money to the system will only reward officials’ mismanagement and reckless behavior.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.