SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s history lesson

Wednesday, Jul 11, 2012

* Eric Zorn looks at the history of employer contributions to teacher pension funds

Chicago started its own teacher pension fund in 1895, and the non-Chicago statewide fund started in 1913. Then in 1939, the laws were overhauled, benefits were standardized and the Teachers’ Retirement System of the State of Illinois — the suburban and downstate program — was formalized.

Why didn’t the two systems just merge at that time?

“Because ours was older and much better funded,” said James F. Ward, 74, executive director of the Chicago Teachers’ Pension Fund from 1967 until 1997. And Chicago was able to strike a deal that funneled a fair share of state tax revenues into funding pensions for Chicago Public Schools.

That all changed in 1995 with the deal that ceded control of CPS to Mayor Richard M. Daley. Part of the arrangement called for the Chicago Board of Education to have the flexibility to mingle education funds with funds formerly earmarked only for pensions, Ward said.

Another part of the deal was that the state would try to kick 20 to 30 percent of overall teacher retirement-fund payments back to Chicago, kind of like in the old days. But this aspiration — this goal — has lately gone by the wayside as budgets have tightened.

In fiscal 1995, the first year of the deal, Chicago got 23.2 percent of the money that went to the Teachers’ Retirement Fund. Fair enough, or close to it.

By fiscal 2012, that figure had dropped to 0.4 percent — not quite nothing but almost — with Chicago getting shorted by roughly $540 million, according to Chicago Teachers’ Pension Fund estimates. And some of the local money formerly earmarked for pensions instead went to paying the ongoing costs of running city schools.

Discuss.

- Posted by Rich Miller        


16 Comments
  1. - Freeman - Wednesday, Jul 11, 12 @ 1:30 pm:

    Appreciate Zorn’s efforts to educate. Very helpful. Still wondering 2 things from Longo’s op-ed yesterday:

    - “The state’s funding formula for Chicago Public Schools — money for special education, bus transportation, free and reduced lunch and breakfast programs, summer school and educational service centers — is based on fiscal year 1996 student population totals that have not been updated.”

    Anyone know why that is?

    - “The Legislature passed a law providing for annual contributions in excess of $400 million to the CPS pension fund, starting in 2010. Check out the CPS budget, which is posted online, Mr. Speaker.”

    Ditto.


  2. - wordslinger - Wednesday, Jul 11, 12 @ 1:55 pm:

    –Another part of the deal was that the state would try to kick 20 to 30 percent of overall teacher retirement-fund payments back to Chicago, kind of like in the old days.–

    When you see the word “try,” you have no deal at all, as evidenced by today’s 0.4% contribution.


  3. - steve schnorf - Wednesday, Jul 11, 12 @ 2:02 pm:

    word, my experience is it depends on who you make your deal with. But even then, people move on and administrations change, and the new folks have a tendency to say, ‘hey, i didn’t agree to that”


  4. - titan - Wednesday, Jul 11, 12 @ 2:08 pm:

    It appears that teh State was funding all teacher pensions somewhat evenly until the deal where the City got the ability to take the money and use it for other things (which seems to be a recurring Illinois pension problem) and the State then began renigging there (like in so many other areas).


  5. - It's Just Me - Wednesday, Jul 11, 12 @ 2:25 pm:

    Completely unrelated, but I would enjoy a similar history lesson on why Cook County has an appointed (for life) medical examiner but every other county has an elected coroner. It isn’t because Cook is home rule; coroners and such are in the State’s Counties Code.

    I can’t help but wonder if Cook’s current problem would have existed if a Cook County Coroner had to face the voters like all the other counties.


  6. - Anonymous - Wednesday, Jul 11, 12 @ 2:34 pm:

    The coroner was recently changed to a 5-year term.


  7. - 47th Ward - Wednesday, Jul 11, 12 @ 2:58 pm:

    Titan, the word you’re looking for is “reneging.” I’m not usually the grammar police, but the word you used might get you into trouble so I’m only trying to help you out.

    Carry on.


  8. - James the Intolerant - Wednesday, Jul 11, 12 @ 3:13 pm:

    Bad deal in 1995 allowing CPS to co-mingle the funds.


  9. - titan - Wednesday, Jul 11, 12 @ 3:31 pm:

    47th - thanks. I’m too used to spellchecker features I guess.


  10. - soccermom - Wednesday, Jul 11, 12 @ 4:08 pm:

    Love Zorn. Love Zorn.


  11. - Jade Rabbit - Wednesday, Jul 11, 12 @ 4:41 pm:

    So as the money into teachers pensions declined, the salary of teachers increased.

    I’d be interested to see if this could be correlated graphically.


  12. - Anyone Remember? - Wednesday, Jul 11, 12 @ 5:42 pm:

    So … the decrease in State funds for Chicago Public Schools dates to giving Mayor Daley more “flexibility” … . IMHO, that means Daley caused this, and the State should “remove the flexibility” … .


  13. - Anyone Remember? - Wednesday, Jul 11, 12 @ 5:45 pm:

    It’s Just Me -

    Years ago, read a Royko column that said the reason Cook County voters abolished the Coroner’s Office and created a Medical Examiner was scandals, particularly stripping jewelry off corpses.

    http://news.google.com/newspapers?nid=1876&dat=19890109&id=gj0sAAAAIBAJ&sjid=e84EAAAAIBAJ&pg=6621,3800691


  14. - David W. Aubrey - Wednesday, Jul 11, 12 @ 9:57 pm:

    Elections for coroners is down right creepy. The person deciding the cause of death shouldn’t be in a political office; in my humble opinion.


  15. - Cheswick - Wednesday, Jul 11, 12 @ 10:57 pm:

    David, not only that, but we don’t require any qualifications to be coroner, which always made me wonder if a high school drop-out could get elected. Although, I think they do have to go through some training after getting elected.


  16. - Liberty_First - Wednesday, Jul 11, 12 @ 11:23 pm:

    David, An elected coroner is a check and balance against an elected sheriff.


Sorry, comments for this post are now closed.


* Why Quinn's med-mar punt matters
* Um, wow
* Tuesday puppy blogging
* A very tough problem to deal with
* Budget stuff
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Apple starts updating devices to iOS 8.1.3
        * iOS 8.1.3 Arrives, With Lighter Storage Requirements For Updates And Spotlight Fix
        * New Apple Pay Deal Gives It Greater Presence In A Key Market: Self-Serve
        * Samsung Galaxy S6 rumors detail feature-packed alternate back panels
        * Quantum Dot Displays Could Lead To Cheaper, Thinner Screens
        * Shazam lets you access saved playlist right on Spotify
        * HTC Hima image ‘leaks’ possible decoys

        * Compare Mortgage Rates with the Government's New Rate Checker Tool
        * Snapchat builds hub for news, media from more than just friends
        * Apple Pay Now Supports 200,000 Self-Serve Locations And Vending Machines
        * iOS Updates Will No Longer Require So Much Free Space on Your Phone
        * Apple Led Q4 Smartphone Shipments in China
        * FCC Commissioner Blasts Marriott’s Wi-Fi Blocking Plan
        * Windows 10 For Phones Features Video Demonstration Coming Soon

        * White Sox marketing waits for White Sox baseball to cooperate
        * Gillaspie open to whatever role team needs
        * Podcast: MLB pace of play problem
        * 2015 Prospect Watch: Top 10 second basemen
        * Following up: Inside Toronto's failed pursuit of Kenny Williams
        * Trimmer Garcia ready to take off in 2015
        * SoxFest concludes with high hopes for 2015

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Alum Manny Sanchez regains seat on Illinois sta.....
        * Will Oglesby be the one to grow our medical mar.....
        * Former Arlington Heights mayor Mulder picked fo.....
        * Candidates meet for first Chicago mayoral debat.....
        * Rauner to Discuss Structural Challenges In Deca.....
        * Illinois medical marijuana delays grow in messy.....
        * Getting the House in order..
        * Documents: Ottawa ranked highest for marijuana .....
        * Mayoral Candidates Mostly Agree on Chicago Casino..
        * WATCH: Candidates meet for first Chicago mayora.....


        * Twins who ran major US drug ring sentenced to 14 years each
        * Mayor of Highland suffers serious spinal injuries in fall
        * Most candidates for Chicago mayor support city casino
        * Time may be running out for Sycamore's penny parking meters
        * Suburban Chicago resident has confirmed case of measles
        * Longtime Naperville mayor gives last State of City address
        * More than 300 flights canceled at Chicago airports
        * Caterpillar 4Q results mixed, 2015 outlook disappoints
        * Sen. Dick Durbin honors Ernie Banks on Senate Floor
        * Illinois woman steers bus to safety after driver collapses

        * State lawmaker introduces bill to cut officeholders' pay
        * Proposed Logan County medical marijuana growing site gets high score
        * Illinois pays millions to keep inmates who can't find homes
        * Proposed Logan County growing site gets high score
        * Rauner replaces appointee who helped give job to Quinn aide
        * Frerichs announces firm will review Treasurer's office
        * State lawmakers consider police reform key issue for General Assembly
        * Statehouse Insider: Gov. Rauner sounding a lot like primary candidate Rauner
        * Veterans voice opinions about future of Oak Ridge war memorial site
        * 85,000 temporary driver's licenses issued to immigrants

        * Takeover target urges shareholders to take CME's 'bird in the hand' bid
        * Why the markets are tanking today
        * Caterpillar forecast suffers from falling oil, copper prices
        * Watch McDonald's Super Bowl teaser
        * Walgreens names Boots exec CFO as Pessina tightens grip


          * Trooper urges stiffer charges against trucker in fatal I-88 crash
          * Woman steers bus to safety after driver collapses: 'I just said I gotta live tonight'
          * Chicago brothers who infiltrated cartel given 14 years in prison
          * Mother of man killed in hospital sues police, city of Highland Park
          * Emanuel, mayoral challengers face off for first time
          * Illinois reports year's first measles case
          * City lists 45 'problem landlords'
          * Super Bowl by the numbers
          * Google to police: Waze can't track officers' movements


          * State Board Of Education Asks For More Money
          * More People Flying Out Of Springfield & Bacon To Bring Them In WUIS-SJR Business Report
          * Political Football With Sports Facilities Agency
          * Governor Unhurt In Chicago Car Accident
          * Hoogland Show Brings Irving Berlin To The Stage
          * Could Rauner's Spending Hold Derail New Train Routes?
          * Ousted State Public Health Director Off To Washington
          * Interview: Combating Systemic Racism In Springfield
          * Proposal Would Ban Conversion Therapy For Minors
          * How food gets the 'Non-GMO' label


          * State lawmaker introduces bill to cut officeholders' pay
          * Quote of the Day: Tuesday, Jan. 27, 2015
          * Proposed Logan County medical marijuana growing site gets high score
          * Illinois pays millions to keep inmates who can't find homes
          * Rauner replaces appointee who helped give job to Quinn aide
          * Frerichs announces firm will review Treasurer's office
          * U.S. Dick Durbin and U.S. Rep. Aaron Schock: Online sales tax loophole hurting local businesses
          * Quote of the Day: Monday, Jan. 26, 2015
          * State lawmakers consider police reform key issue for General Assembly
          * Our Opinion: Vision should be a key theme in Springfield mayor's race


          * Recruiting questions? We've got answers
          * Tuesday January 27 government meetings
          * Durbin honors Ernie Banks on Senate Floor
          * Illini release spring schedule
          * Champaign man charged in attack on woman
          * Rantoul man charged with home invasion at ex-girlfriend's Urbana residence
          * Updated: Boston area hit by howling blizzard; New York gets off easy
          * 01-27-15 On the Money
          * 01-27-15 Penny for Your Thoughts
          * Windmill Cultural Center welcomes author and historian David Coopman


          * Whites, Hispanics, Asians grow at historically black colleges
          * Armed man no longer at Delnor Hospital
          * Chicago twins who ran $2B drug ring sentenced to 14 years each
          * AP Interview: EU anti-terror chief: rehab for jihadis
          * Federal government failing to protect children, report says

          * Rep. Danny Davis Hopes to Keep His Seat fo...
          * Illinois House Dems agonize over vote to f...
          * Congressman calls for removal of police co...
          * Congressmen Plan House Speech on Chicago's...
          * Davis To Obama: 'Do Everything In Your Pow...
          * Rahm Touts New Law to Clear Juvenile Polic...
          * Democratic Congressman Condemns Chicago Su...
          * REP. DANNY K. DAVIS NOW SUPPORTS DR. WILLI...
          * Danny Davis Defeats Robert Bumpers In Illi...
          * Rehab of Affordable Housing Building in Ol...

          * Senate's swing-state Republicans break ranks...
          * Senators Dianne Feinstein and Chris Murphy......
          * State lawmaker introduces bill to cut offi......
          * NB I-17 reopens after wrong-way crash; Pho......
          * DuQuoin baseball tournament named for 'Bea......

          * Senate's swing-state Republicans break ranks...
          * A White House victory as Senate retreats f......
          * Welch backs legislation on GPS data...
          * Democrats say they won't support Iran sanc......
          * Democrats back off Iran sanctions bill unt......

          * Group Accuses Ald. Mell Of Violating Campaign Finance Laws
          * Education Activists Call For Chicago Board Of Education Member Deborah Quazzo's Resignation
          * Illinois Pro-Life Movement Marches Forward [video]
          * Kaiser: Illinois cancer survivor continues vocal fight against Obamacare
          * Human Rights Hotspots: Cuba [video]
          * Bluedorn: How Mercer County voters turned their county board upside down in 2014
          * We’ve moved!
          * In The Lyons Of Fire
          * BGA Backs New State Disclosure Effort
          * Budget Crisis Task Force Examines Illinois’ Debt Woes


          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around
          * Commerce Department to Review Proposals for Enterprise Zones - Program Promotes Job Growth in Communities Across the State
          * Governor Rauner signs Executive Order for Minority and Veteran Empowerment
          * Governor Rauner Announces Second Round of Appointments
          * Representative Duckworth, US Army Iraq Veteran Honored With The Abraham Lincoln Veteran Champion Award




              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller