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.
The cost of a state university education in Illinois increased 66% between 2009 and 2025, $6,028 more in tuition and fees per year. Blame declining enrollment, a bad state funding formula, pensions and high administrative costs.
Illinois ranked No. 1 for spending per student on higher education in 2024, paying more than double the national average. Declining enrollment, poorly structured finances, growing pension payments and bloated administration have driven up costs.
The five pension systems run by the state of Illinois only have 46 cents on hand for every $1 of benefits they owe. Filling that $144 billion hole would require more money than the price of every NBA team combined.
Illinois has the nation’s worst public pension crisis. Nationwide analysis from the Equable Institute shows Illinois state pensions remain fiscally unstable and threaten retirees and taxpayers, underscoring the need for reform.
The average retired career state employee in Illinois was paid $93,558 in pension benefits last year. That’s $24,538 more than the average Illinoisan working to pay for those retirees.
As state lawmakers finalize the 2026 budget, public sector unions are pushing for major benefit spikes for Tier 2 pensioners to be included in last-minute additions.
Illinois’ university system is losing students to other states as prices per student top the nation. The system and its funding need an overhaul, but state leaders instead are considering letting community colleges create even more competition.
Illinois lawmakers could still pass expensive changes to newer state worker pensions using a “gut and replace” maneuver. The proposal would cost taxpayers over $76 billion by 2050.
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.