More than 25% of state revenue already goes to pensions and retiree health care, but Illinois would need to double that to fully fund promised benefits at current levels.
Cities and villages across the state are raising taxes or implementing new ones for a variety of functions, from attracting a fast-food restaurant to catching up on rising pension costs.
With the successful passage of 401(k)-style pension reform in Michigan’s state legislature, Illinois lawmakers should examine their own growing pension crisis and pursue bolder reforms to stabilize the state’s finances.
The highest state worker salaries in the nation, overtime pay, generous state pensions, taxpayer-subsidized health care coverage and free retiree health insurance for career workers combine to give the average Illinois AFSCME worker six-figure annual compensation.
Illinois law gives financial incentives to many injured workers to stay off the job and to doctors to prescribe more medications to workers’ compensation patients.
Recently retired career state workers receive an average annual pension of $63,000. On top of this, more than 60,000 workers in Illinois’ State Employees’ Retirement System participate in Social Security.
Pension holidays, steep increases in teachers' salaries, and lopsided ratios of teacher contributions to pension payouts have caused the Chicago Teachers’ Pension Fund’s unfunded liabilities to shoot up to $9 billion in 2015.
November saw Chicago’s City Council let the term of the legislative inspector general, who is tasked with overseeing City Council, expire without hiring a replacement, as well as several other instances of breach of public trust and influence peddling around the state.
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.