Budget not only state problem
Illinois legislators can run, but they can't hide from the state's public pension woes.
Last year, Illinois legislators significantly changed the pension rules for public employees hired after Jan. 1, 2011.
This year, they're showing signs of tackling the dramatically more difficult issue of revising the rules for the older employees not affected by the rules for new hires. Whatever they do, it won't be easy.
There are both political and legal hurdles to passing revisions to pension rules that might include enhanced employee contributions or an older retirement age. But the chronic underfunding of the state's public employee pension programs and the state's massive budget deficits and overall debt – even in the face of recent income tax increases – require a serious effort be made to address the problem.
That's why Illinois House Speaker Michael Madigan has been talking about putting a bipartisan bill together, and that's why David Vaught, Gov. Pat Quinn's budget adviser, was quoted recently as saying that "there is growing momentum for additional pension reform." He went on to state that the issue is "something that definitely should be looked at."
Even more important than what Vaught said is what Gov. Quinn's budget proposal said and then tried to un-say.
Quinn's voluminous budget document stated that state pensions may need a "federal guarantee." Vaught later disclaimed the language, saying the controversial reference "should have been edited out" because "we don't think we need a bailout."
But it's impossible to un-ring a bell. That explosive reference to the necessity of a federal guarantee, which won't be coming, for Illinois' underfunded pension system didn't make it into the budget by accident. Obviously, the issue has been a subject of serious discussion, and that speaks volumes about the need for legislative action.
But pension reform will prove to be a sticky wicket for a variety of reasons.
For starters, the powerful public employees' unions hate the idea. They wield lots of clout, mostly in the form of campaign contributions and workers for favored politicians. The Democrats who control the Legislature are generally union-friendly. So this could be a fight within the family, and those are especially ugly.
Then there is the legal issue. There are serious questions about whether changes in pension rules are permitted under the Illinois Constitution.
Senate President John Cullerton has opined that it's impermissible to hire an employee under one set of rules and then change the rules, relying on a lengthy opinion prepared by one of his staff members.
However, last year the Civic Committee of the Commercial Club of Chicago solicited an opinion on the issue by the prestigious firm of Sidley Austin and received a different analysis. The Sidley Austin opinion held that benefits already earned cannot be reduced but future benefits can be modified.
Of course, what really matters is how the courts interpret the law, and that will require the Legislature to pass a bill that ultimately will be reviewed by the Illinois Supreme Court.
Unfortunately, Gov. Quinn has indicated he will not lead on this issue. Vaught said only that Quinn "would not stand in its way" if the Legislature tackles the problem.
Much as some legislators may hate the idea, they really have no choice but to move on this issue. Thanks to decades of neglect, Illinois has the most underfunded public pension systems in the country. This financial time bomb must be defused.
The facts have been provided before in the news. The facts remain. The legislature, and governors both democrat, and republican "deferred" which means the employer did not pay it's portion of the annual pension payment. If the state were a public employer, it would have been sued. The employees paid their portion out of every paycheck. The legislators paid into the legislative, and judicial pension plans with the state's money because they said the cost was "insignificant". Governors, and legislators did not raise taxes for many years until recently. The money that was to have been paid into the employee's pension systems was used for "pork barrel" projects to secure the public's votes; and to prevent raising taxes. Now, the state's financial situation is a mess. Now, the answer to the problem is STEALING what employees were guaranteed when they started work. Yes, stealing their plans for retirement. Going further would steal the money that the retirees paid into when their employer did not. I expect that many feel it needs to be done. If it is done, it sends a message to future public employees. In time, the State of Illinois will outsource all services. Correctional services, public health services, disability services, employment services, law enforcement services, firefighter services, and educational services outsourced will allow for a competitive bidding system which will be awarded by your legislature.
We have helped the banks out. The Feds continue their efforts in other countries using billions.The States have not DONE THEIR job in funding the pensions. All state workers have made their contributions. People need to take a stand and let Gov't officials know we are tired of their excuses and their predictions of doom and gloom...they created the problem ..fix it without creating another white collar crime..Taking away what is ALREADY earned...Perhaps they should look at changing the pensions of anyone not retired and get creative. The state has to revisit the recent changes they made. White collar crime and crimes by our Gov't representatives seem to go away and no goes to jail...
The bailout for Wall Street,bankers,brokers,hedge fund manipulators and the rest of the players that created the financial disaster in our country was massive.Nothing in the history of the financial world compares to the billions and billions of tax dollars handed to the small powerful elite in the form of coporate welfare.No significant prosecution took place for the egregious crimes of the most powerful financial manipulators in the United States.These facts are documented without question.Now these uber-rich have created a class of scapecoats in public workers.The lazy and dull-witted press,such as the writer of this editorial,continues to spew forth cliches such as'' the powerful public employees unions''. Ridiculous.The bankers,brokers and the gangs of Wall Street have billions in resources and numerous political shills like Scott Walker. Dazed and confused media barkers, who refuse to do any homework about the actual math involved in this manufactured ''crisis'', spit out the same false accusations.The middle class is being destroyed and abandoned,and we get editorials like this in the News-Gazette.
I have paid 8% out of every one of my paychecks towards my state pension. The State of Illinois has fallen behind in matching their contribution.
The State of Illinois needs to live up to its half of the pension contract. I have lived up to my half. And the Illinois Constitution clearly states that public employee pensions are binding contracts that can not be changed.
If I was in the private sector and paid 7.5% of each of my paychecks toward social security - and my employer failed to pay his obligation of matching 7.5%, then he would end up in jail.
We're worried about pensions..where are the answers to the citizens on the following: Where is the 9 trillion the federal reserve seems to have "misplaced?" Where is the 2.3 trillion the pentagon can't account for? When the federal and states Gpv't start to account for their crimes we will stop screaming for the little guy..The Gov't has failed the people so why aren't people really UPSET..Marching..the Gov't has spent approx $38,000 per USA citizen and they don't know hwere they spent it..and you people want to cut pensions and other programs..get serious guys ..your days are numbered//start lookin for another job..oh yeah..get in line..LOL








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