A new report from the Commission on Government Forecasting and Accountability shows Illinois has experienced falling tax collections, which may indicate trouble in the state economy; spending reforms – not tax hikes – are what Illinois needs to right its fiscal ship and boost economic growth.
Lawmakers are proposing a range of new tax hikes as a “compromise” solution to the state’s budget woes. But simple reforms to Illinois’ teacher pension system are a better way to fix the state’s finances without hurting taxpayers.
Illinois spends more money on retirement costs than on university operations – and tuition keeps rising to prop up this overspending. Instead of hiking taxes to maintain current spending habits in higher education, politicians should shift priorities from propping up six-figure administrators to keeping tuition affordable for students.
The head of the Illinois Municipal Retirement Fund, or IMRF, has dismissed calls for pension reform, disregarding the fact that pensions aren’t manageable, benefits aren’t affordable, and previous “reforms” propped up pensions on the backs of new workers.