Chicago Sun-Times

Staggering debt obligations of House’s pension reform should require 60% approval

Thu, 23 May 2013 02:23:49 -0500

Representatives of organized labor in Illinois contend that the pension-reform bill recently passed by the House would be unconstitutional because it diminishes or impairs the claims of retirees. I think it’s probably unconstitutional for a very different reason. Our Legislature can spend money by simply passing an appropriation — by majority vote of both houses and with the approval of the governor. However, the framers of our state Constitution realized that the incurring of debt was more dangerous to the future of the state. So they provided that debt may not be incurred for general purposes except under tight limits …

The problem with Madigan’s pension plan

Fri, 03 May 2013 02:22:51 -0500

The pension reform bill pushed through the Illinois House Thursday by Speaker Mike Madigan has some very good things about it, but also one bad thing. On the positive side, we are told that unfunded liabilities would be reduced from about $98 billion to perhaps $70 billion. The reforms would apply to current employees — not just those hired in the future. The bill limits cost-of-living pension increases, which are costly to the state. It creates incentives for employees to retire later, which is consistent with trends in the private sector and helps control costs. It would raise the level …

Even after proposed pension fix, Illinois still would be broke

Thu, 18 Apr 2013 02:20:11 -0500

As Illinois staggers painfully toward pension reform, the suggestion appears in some news accounts and editorials that if Springfield would just pass one of the pending proposals — the Nekritz-Cross-Biss (NCB) version — then we could all breathe a deep sigh of relief. Illinois’ finances would be saved. Annual pension funding could be reduced by perhaps $2.3 billion, so the state’s financing of education, health care and safety-net programs could be restored. And Illinois could pay its bills. “Morning in Illinois.” If only it were so. 1. First, NCB is not a “settlement.” If enacted it will face a union …

Gov. Quinn’s union deal adds to our woes

Thu, 21 Mar 2013 02:22:24 -0500

Gov. Pat Quinn says he was put on earth to solve our state’s underfunded-pension problem. Yet he’s now made that problem worse. At a time when the State of Illinois is literally broke and inflation not much above zero, Quinn (who is facing a primary election next year) has agreed to give increases in pay to state employees, who on Tuesday approved the deal. These come in two main components: 2 percent increases in the last two years of a three-year contract; and “step increases” for some workers to reflect additional years of seniority. In addition, senior workers get an …

‘Balanced budget’ in Illinois is a fraud

Wed, 06 Mar 2013 02:24:05 -0500

Time for our Civics Class to come to order again. Gov. Pat Quinn on Wednesday will propose a state budget for the coming fiscal year, which begins July 1. The Illinois General Assembly will pass a budget this spring. Can anyone tell me whether our state Constitution requires that the state budget be “balanced”? [Loud guffaws! “Dumb question! Illinois runs huge deficits each year, which is why debt balances keep piling up. We owe $8 billion or so in unpaid bills. Pension funds are almost $100 billion in the hole. Our budget is the farthest thing from balanced!”] Well, then, …

Pension mess isn’t Mike Madigan’s fault

Thu, 21 Feb 2013 02:24:20 -0500

Illinois House Speaker Michael Madigan has taken a journalistic thwacking for many supposed sins — including allowing the State of Illinois to sink into a fiscal cesspool. In particular, he is allegedly responsible for allowing the state’s unfunded pension liabilities to rise to levels where they now threaten the state’s finances. The argument is roughly this: Since the 1994 pension funding law was enacted, the liabilities have mushroomed; Michael Madigan has dominated the House — and state government — throughout this period. Therefore, it must be his fault. The argument is wrong. No one person or party is responsible for …