Pensions

Setting the Record Straight on Illinois’ Fiscal Shortcomings

Release: May 5, 2020

This report shows how the data make it quite clear that: Illinois incurred pension debt—under both Republicans and Democrats-- to mask its fiscal problems, not to pay irresponsibly high benefits; Illinois is not a high spending state, and in fact has cut spending on services in real terms by more than 23% since FY2000; that over $9 out of every $10 Illinois, and frankly every other state in America, spends on services goes to the four core areas of Education (including Pre-K, K-12, and Higher Ed), Healthcare, Human Services and Public Safety—meaning those are the services which are imperiled if the feds don’t come through with a significant relief package for state governments suffering revenue loss from the downturn caused by the COVID-19 pandemic; and the Pritzker Administration has actually pushed a number of fiscal initiatives that are actually responsible and counter some of the poor practices of the past.

Asset transfers to the state pension systems: Six questions to be answered

Release: February 18, 2019

One idea that has been proposed by a number of observers to repay some of Illinois’ pension debt is an “asset transfer.” Under this proposal, the state (or the City of Chicago, which is also facing a large pension debt problem) would make a contribution to the pension systems in the form of a publicly owned property, such as a tollway or lottery, rather than in the form of cash.