UI institute compares pension proposals

A University of Illinois institute report says neither of two legislative proposals that seek to address pension underfunding will balance the state's budget.

And the plan that has the greater likely impact also is likelier to face court challenges, says the Institute for Government and Public Affairs.

"Illinois will continue to have serious fiscal problems even if efforts to reduce pension obligations are successful," the authors of the report said. "Of course, it is also true that the state's budget gap will be even larger if cost-saving pension reform efforts fail."

Senate Bill 1, called the Madigan plan for Speaker of the House Michael Madigan, would save the state $2 billion to $3 billion annually, the institute says. Senate Bill 2404, the Cullerton plan (for Senate President John Cullerton) saves from $500 million to $1.5 billion annually.

The IGPA report and other related information is available online at igpa.uillinois.edu/pensions.

Comments

News-Gazette.com embraces discussion of both community and world issues. We welcome you to contribute your ideas, opinions and comments, but we ask that you avoid personal attacks, vulgarity and hate speech. We reserve the right to remove any comment at our discretion, and we will block repeat offenders' accounts. To post comments, you must first be a registered user, and your username will appear with any comment you post. Happy posting.

Login or register to post comments

Sid Saltfork wrote on June 18, 2013 at 9:06 pm

What is the institute's opinion on the legality of both acts in regard to the State of Illinois Constitution, and contract law?  Attention has been placed on the amount of money that will be stolen; not on the crime itself.