Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

TexasTowelie

(116,773 posts)
Sat May 19, 2018, 04:42 PM May 2018

Every person in Illinois owes $11,000 for pensions, with no fix in sight

Three years ago, the Illinois Supreme Court struck down the state’s attempt to cut its employees’ pension benefits to chip away at a retirement-system debt that’s swelled to almost $11,000 for every man, woman and child.

Since then, Illinois’s credit rating was downgraded to the verge of junk, its bonds have tumbled and its largest city, Chicago, was stripped of its investment-grade status by Moody’s Investors Service. And Republican Gov. Bruce Rauner and the Democrat-led legislature have made no real progress toward a new plan that doesn’t violate the state constitution’s ban on reducing benefits.

“Illinois failure to address its pension crisis has resulted in further deterioration of the state and cities’ financial condition, exorbitantly high borrowing costs, and an inability to address other critical needs at the state and local level,” said Laurence Msall, president of the Civic Federation, a Chicago nonprofit that tracks state and municipal finances. “Time is not your friend when your liabilities are compounding and your revenues are not.”

The funding shortfall across Illinois’s five retirement systems climbed to $137 billion by last June, a jump of about $17.8 billion since 2015, after the government for years failed to made adequate contributions. That pension deficit — more than four times larger that its debt to general-obligation bondholders — is adding hundreds of millions of dollars in costs to Illinois’s budget each year as the government plows more money in to catch up.

Read more: http://www.daily-journal.com/news/local/every-person-in-illinois-owes-for-pensions-with-no-fix/article_0b750ab8-539d-11e8-9e43-3f49cd2f3edb.html

2 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Every person in Illinois owes $11,000 for pensions, with no fix in sight (Original Post) TexasTowelie May 2018 OP
The citizens of Illinois derived a benefit for 30 yrs beachbum bob May 2018 #1
While I dislike the 'our billionarire vs. their billionaire' aspect of the gubernatorial race, Snarkoleptic May 2018 #2
 

beachbum bob

(10,437 posts)
1. The citizens of Illinois derived a benefit for 30 yrs
Sat May 19, 2018, 06:30 PM
May 2018

The state workers did their job, paid in the money every paycheck and the state politicians both republican and democrats spent that money and wrote IOUs to the pension funds because they were too cowardly to raise taxes...there are fixes....progressive tax rates, pot sale taxes, make local school districts pay their fair for their teachers pensions instead of Illinois tax payers....eliminate the 3% COLA bullshit..

Snarkoleptic

(6,027 posts)
2. While I dislike the 'our billionarire vs. their billionaire' aspect of the gubernatorial race,
Sat May 19, 2018, 06:42 PM
May 2018

Pritzker has my vote as he vocally supports-
1) Legalizing and taxing cannabis, which will generate in/out state revenue as we're surrounded by red states. Plus save tons with the associated criminal justice reforms.
2) Establish a graduated income tax, which is currently not possible with our existing state constitution.

Latest Discussions»Region Forums»Illinois»Every person in Illinois ...