Saturday, March 23, 2013
Watch a brief video rundown of recent action in Springfield that could have an impact on your tax bill and money for local schools.
What's happening in Springfield now regarding the state pension crisis will have a long-term impact on your tax bills and the money the state government can afford to send to local schools. Teachers and bus drivers in the suburbs are getting layoff notices and schools are closing in the city of Chicago as the governor projects a cut of $300 million from the state education budget. This week, the Illinois House passed a bill that would trim cost-of-living payments for public retirees. The House previously passed a bill that raises the state employee retirement age incrementally. It's unlikely those measures will pass the Senate, leaving the pension crisis unresolved. Our friends at Reboot Illinois, a non-partisan news and advocacy website…
Sunday, January 27, 2013
Despite 2011's 67 percent state income tax hike — which took a week's pay away from you — the state's financial problems have worsened.
Illinois now has the lowest credit rating of all 50 states. Standard & Poor’s rating services downgraded Illinois’ credit rating last week to A-, with a negative outlook. State Treasurer Dan Rutherford, who blamed the negative rating on inaction on the public pension system by Gov. Pat Quinn and the General Assembly, said Illinois is headed for "fiscal disaster." He said the lower rating will force the state to fork over more money on interest payments. This will affect state universities, road construction and other public institutions because more will go to interest than principal as these projects are paid for. “If you went out to borrow $500 because you have such bad credit, it will cost $95 more in interest than better-rated states…
Saturday, January 19, 2013
State government grows in the dark, like a fungus. • Bill Daley has an idea to take the party out of state elections. • Time magazine mourns for Illinois.
When Gov. Pat Quinn took office in 2009, he promised to take aim at state boards and commissions stocked with politically connected folks drawing large salaries with little oversight into their activities. He would pare down those panels and save you money. Better Government Association investigative reporter Barbara Rose this month looked into whether Quinn delivered: "... more than three years into Quinn’s watch little has changed, except the number of such units is growing. As troubling, many don’t comply with the Illinois Open Meetings Act, according to a report last year by state Auditor General William Holland." In fact, the governor's office is having a hard time keeping up with it all. "With over 322 boards and commissions, …
Saturday, January 12, 2013
The next step might mean the state's credit rating is downgraded.
With the Illinois General Assembly failing to act on pension reform earlier this week, the State of Illinois’ bond rating took a hit on Friday as Fitch Ratings put Illinois’ bond obligations on negative watch. The next step could mean Fitch's downgrading of the state’s credit rating, which would only add to the state’s financial woes. “The Rating Watch Negative reflects the ongoing inability of the state to address its large and growing unfunded pension liability, most recently through the failure to pass pension reform in the 'lame duck' portion of the 97th general assembly legislature that ended on Jan. 8,” Fitch Ratings said in a news release Friday. Illinois State Treasurer Dan Rutherford reacted Friday to the negative watch …
Friday, January 11, 2013
Glenbard Township High School District 87 Superintendent David F. Larson shares his observations on pension reform. Glen Ellyn Patch welcomes letters and opinion pieces. E-mail Mary Ann Lopez at maryl@patch.com.
Pension Reform Observations As a new superintendent in Illinois, it has been intriguing watching the saga of the state's long-term troubled pension system. The following are a few observations from a newcomer’s perspective regarding the lessons to learn from our pension woes: Lesson One - Poor Stewardship Can Be Costly It is unfortunate that the consequence for the lack of political will and fiscal responsibility has been passed on to future generations. The current Legislature is tasked with fixing a system that commissions and task forces in previous decades had reported on. In 1973, one commission reported, "The pension obligation still remains almost wholly obscured or ignored by some public officials." The lack of collective …
Tuesday, January 8, 2013
Glen Ellyn Patch welcomes letters to the editor. Letters may be submitted to Local Editor Mary Ann Lopez at maryl@patch.com.
- OPINION
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Tuesday, January 8
Dear Editor, I am a retired teacher with a vested interest in protecting the integrity of all publicly funded pensions. I am also extremely frustrated that there has been so little consideration of the real underlying problems our State faces: an unfair state income tax structure, an unwillingness to accept reality with regard to a sales tax on services, and an unrealistic repayment schedule for our pension debt. Illinois is one of only 7 states in the nation which employs a flat tax and, until the recently enacted temporary increase, at 3% for individuals was dead last in the rate imposed. Even now, at 5% (until 2015), we are not the most highly taxed of this group. A flat tax is inherently unfair: 83% of states with an income tax and …
Saturday, December 15, 2012
The representatives and senators leaving office in January 2013 will see millions of dollars in pension payments, figures far more sizable than they would've seen in the private sector.
Are you worried about your own retirement? With the downturn in the economy, did your 401k and savings take a big hit? If so, you're like millions of other Americans forced to confront a dramatically different outlook for their post-work years. But one group of pensioners is largely insulated from such concerns — outgoing Illinois lawmakers. The retirement benefits Illinois legislators receive are far more generous than those most of their constituents could collect working full-time jobs, reports Scott Reeder of the Reeder Report, using data from an Illinois Policy Institute analysis in a piece published on Watchdog.org. The anticipated pension benefits of the 34 lawmakers who will depart the state legislature in January show these …
Tuesday, December 11, 2012
Glen Ellyn Patch welcomes letters to the editor and opinion pieces. Send items for consideration to Local Editor Mary Ann Lopez at maryl@patch.com.
By David F. Larson, Ed.D. Superintendent, Glenbard Township High School District 87 The recent news of the various pension reform proposals being presented in Springfield reminds me of the importance of fiscal stability within a public sector organization. Just what are the fiscal practices and actions of a public-funded institution that result in balanced budgets and solvent position, despite the challenging fiscal climate? When confronting a revenue shortfall or sudden increases in expenses, how do some public sector organizations experience duress and "meltdown" while others are buoyant and able to navigate through the financial challenges? As the new superintendent, its clear to me that Glenbard District 87, along with its feeder …
Saturday, November 24, 2012
Jim Edgar tells Reboot Illinois that tax hikes, program cuts and leadership are desperately needed in Springfield. And Pat Quinn brings you Squeezy the Python.
With Democrats now holding a supermajority in the Illinois House and Senate as well as the governor's office, one might suppose a Democratic agenda would be a slam dunk in Springfield. As recent years have shown, however, single-party control doesn't guarantee the wheels of government grind smoothly. And former Gov. Jim Edgar, who served from 1991 to 1999, suggests that probably won't change anytime soon. In a wide-ranging interview with the new website Reboot Illinois, Edgar says Springfield is less dysfunctional when the two parties share power. "More times than not I think split government works pretty well. The reason is to make the tough decisions you need both parties. It’s hard to get one party to put up all the votes and take all …
Saturday, October 27, 2012
Pension-related amendment to state constitution on Nov. 6 ballot is confusing, catastrophic and fake reform, say foes and legal experts. What you need to know before you vote.
- ELECTIONS
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Saturday, October 27, 2012
By Jayette Bolinski, Illinois Watchdog SPRINGFIELD — Opposition to a proposed pension-related constitutional amendment that will go before Illinois voters Nov. 6 is creating strange bedfellows — from public employee unions to good-government groups that agree the question is not worthy of a change to the state’s constitution and does nothing to address the pension crisis. Groups opposed to the amendment are numerous and come from all walks of life. It’s no surprise that public-employee unions are opposed to the amendment, which requires a three-fifths majority vote before any public body can approve a pension benefit increase. Good-government groups, such as the Center for Tax and Budget Accountability and the Illinois Policy Institute, …
David
7:31 pm on Saturday, May 4, 2013
Mr.Reality - I don't think any public worker should get a pension. Let them have SS and defined contribution plans, and the state can match the first 3% like private companies do. more ›