HEADLINES : Illinois

Illinois lawmakers punt on pensions as $85B liability grows

The Chicago Sun-Times | by Tammy Webber and Christopher Wills | November 14, 2011

SPRINGFIELD - The state's biggest bill, already at $85 billion, will keep growing.

Civic and business groups had hoped lawmakers would cut government pension costs during the fall legislative session. But those hopes ran smack into the reality of union strength, politics and the Illinois Constitution. The session ended without any decisions, either on reducing benefits or making up for state government skimping on past pension contributions.

Unions remain firmly opposed to reducing retirement benefits for current government employees, and they're inundating legislators with emails and phone calls from angry constituents. The Illinois Constitution says pension benefits "shall not be diminished," raising legal questions about the whole issue. And as primary elections draw closer, lawmakers will grow more skittish about controversial votes.

On the other side of the ledger, there's no extra money available to make up for state government's history of not contributing its full share of pension costs. And there's no will in Springfield to come up with extra money so soon after raising income taxes.

So the state's pension systems will continue falling deeper into the hole, at least for now. It's unlikely lawmakers will address the problem in the one-day session they have scheduled for Nov. 29, meaning they have no way to address it again for six more months, until they reconvene in the spring.

 

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