Money that could help address the teacher shortage is often the first to get cut in pursuit of keeping up with government pension debt. Supporting Illinois teachers will require constitutional pension reform and protecting Tier 2 cost savings.
Illinois teachers are required to contribute 9% of their salary toward pensions, but many school districts “pick up” this cost – putting the pension burden on taxpayers.
Gov. J.B. Pritzker introduced a Teacher Pipeline Grant Program to address teacher vacancies, but getting more money into classrooms rather than it chasing retirement debt is a better solution.
Pension expert Richard Ennis analyzed public pension performance of 24 funds, finding the Teachers’ Retirement System of Illinois among the worst after underperforming for 10 years.
Published Aug. 17, 2022 Illinois is home to one of the worst pension crises in the country.1 At 39% funded, according to the nonpartisan Pew Charitable Trusts, Illinois has the worst pension funding ratio of any state.2 By contrast, neighboring Wisconsin’s pension system is 103% funded.3 In fiscal year 2022, Illinois’ total general funds pension...
Illinois school districts paid out $8.8 million in penalties over two school years to cover salary and sick days in excess of what is allowed by law. Those are dollars taken from classrooms, but only hint at the full taxpayer cost.
Barring reforms, the Teachers’ Retirement System could eventually run out of money and be unable to pay promised benefits to retirees, all while making it more expensive for teachers to live in Illinois.
Illinois students could soon benefit from scholarship money to help them find a tutor, attend ACT or SAT prep sessions, pay tuition, get special education services or assist with other academic needs. That will happen in Illinois only if Gov. J.B. Pritzker lets the state’s schoolchildren benefit from the Federal Scholarship Tax Credit program, established...