|November 21st, 2014, 02:14 PM||#1|
Join Date: Nov 2012
How much lower can Illinois sink?
This is just stupid and these idiots were elected by LIW, Low Information Workers, who are too dumb to realize that they will never get their pensions.
Judge John Belz of the Sangamon County Circuit Court ruled today that Illinois’ pension reform bill – Senate Bill 1 – is unconstitutional.
Belz’s ruling is the first step in what likely will be a long legal process to determine whether that law can be implemented and what types of pension reform will withstand a court challenge in the future. The case will now head to the Illinois Supreme Court, where the final decision will be made on this law.
The important thing to remember is that even with today’s ruling, pension reform is not dead in Illinois. The Illinois Supreme Court could rule against Belz’s decision, which would open the door to even bigger, bolder pension reform. Even if the Supreme Court agrees with Belz’s decisions, there is still room for pension reform in Illinois.
If SB 1 is upheld, the state should immediately move all new public employees onto defined-contribution retirement plans. State government should also allow current public employees to opt out of the state’s politician-run pension plan and enroll in a self-managed retirement plan going forward. And the state should explore the constitutionality of moving all current workers into self-managed plans for future work, while protecting already-earned benefits.
Either way, as long as SB 1 is tangled up in the courts, Illinois’ massive pension debt will continue to balloon. The unfunded pension liability is so large today that it would take three years of a complete government shutdown, during which the entire general fund went toward pensions, just to break even. This shutdown would mean no funding for schools, no money for public safety, and nothing for health care and human services.
Illinois’ unfunded pension liability grew to more than $111 billion this year, according to official estimates. That’s a $48 billion increase just since 2009.
That $111 billion pension shortfall means the state now has only 39 cents of every dollar it should have in the bank today to pay for future benefits. In the private sector, these funds would be deemed bankrupt.
If SB 1 is struck down in the Supreme Court, then Illinois’ $111 billion pension debt will continue to grow. The state will likely be hit with additional credit downgrades. And the severely underfunded pension systems will face the risk of insolvency.
The court decision today begins to shine light on what the state may or may not be able to do to address its pension crisis. Now it’s up the Supreme Court.
Regardless of how the Supreme Court rules on SB 1, Illinois’ Governor-elect Bruce Rauner must be ready to act immediately once the decision is made. Rauner and his team should begin planning now for both scenarios, as either decision would greatly impact his first budget proposal for the state of Illinois.
Senior Budget and Tax Policy Analyst
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|November 21st, 2014, 05:09 PM||#2|
Join Date: Feb 2014
This is the deal dude. The pension has to be paid. Why? Because its a contractual agreement. Is it a good agreement? Hell no its a terrible agreement brought to you by the socialist kiss the unions ass politicians. What has to happen is cutting of services, hard core. Chicago transit, no more state funds. IDNR, No more land acquisition and shut down x amount of parks. Department of Corrections, no more transfers. Hold in place other than release and receiving. Only transfers in matters of safety. Hiring freeze. State police no patrols after 2 am-6am mon-thur. 24 hour patrols on weekends ONLY in areas with high dui or accidents. Limited patrols then. This is examples that can be done now. Some of it seems extreme? I remember when Jim Edgar was governor, after he took over the state wasn't doing great, not as bad as now but not great. Edgar implemented some of the changes. The state police patrol was one of them. It wasn't permanent but it was done to save money and it worked and the world didn't come to an end. Edgar was the last Governor that was worth a fuck and actually had Illinois in pretty good shape. Even then though the pension debt was noticeably high and yeah, it got kicked down the road. Now, we have to get away from pensions. No more union pension deals. That's what has to happen
|November 21st, 2014, 09:24 PM||#3|
Mind Numbed Robot
Join Date: Nov 2012
everyone and anyone, from either side of the negotiating table, who had anything to do with setting up unfunded pension liabilities should be tarred, feathered, imprisoned and forced to live in cabrini green and have all of their own personal retirement stripped away from them.
|illinois, lower, sink|
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