Illinois politicians ignored Caterpillar CEO Doug Oberhelman’s 2012 plea for pro-growth reforms, and Illinois is the only state in the region to have lost manufacturing jobs on net over the last four years.
The crisis threatens to burden taxpayers with massive, ever-escalating taxes to bail out a system that is not sustainable – government-worker pensions consume a fourth of the state’s budget.
Government-worker union officials filed papers with the Illinois General Assembly in favor of the “pension holiday” that contributed to the state’s $111 billion pension debt.
From 2009 to 2014, the state added $8.9 billion in new tax dollars to the education budget, over and above the base amount of $6.8 billion it spent in 2009. Of those new dollars spent, 89 percent went to retirement costs and just 11 percent made it to classrooms.
Illinois paid $53 million more to borrow money through its Jan. 14 bond sale than it would have paid had politicians not let the state’s debt and government-worker pension obligations spiral out of control, while driving out taxpaying residents and businesses through tax hikes and costly regulations.
The Education Freedom Tax Credit, also known as the Federal Scholarship Tax Credit, will give Illinois students access to donor money if the state opts into the program.