SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Question of the day

Friday, May 10, 2013

* Daily Herald

Illinois House Speaker Michael Madigan said Thursday a controversial pension solution that would require suburban school districts to eventually pick up the tab for their teachers’ retirement costs is inevitable.

“This is going to happen,” the powerful Chicago Democrat said. “There will be a new plan.”

* SJ-R

Brent Clark of the Illinois Association of School Administrators said a district’s ability to absorb pension costs may hinge on its property tax wealth. The more reliant on state aid a district is, the less likely it can accomodate the cost shift.

“The more property wealth they are sitting on, the more likely they are to be able to manage this,” he said.

Clark also suggested that school districts be given latitude in following some state mandates. A district could determine “which ones are actually appropriate for the district or not.” That could free up money that could then be directed to pension costs, he said.

* The Question: Could you support any sort of cost-shift plan? Take the poll and then explain your answer in comments, please.


surveys

- Posted by Rich Miller        


28 Comments
  1. - Cincinnatus - Friday, May 10, 13 @ 2:15 pm:

    Sure, with mandate relief and control of pay, hiring, firing and pension benefits and reallocation/leveling of any State school funding.


  2. - Mongo - Friday, May 10, 13 @ 2:16 pm:

    Yes, but simultaneously amend the Property Tax Extension Limitation Act (PTELL) only in regards to a school district’s pension levy and exempt that levy, not all levies or any other levies, from PTELL.


  3. - reformer - Friday, May 10, 13 @ 2:17 pm:

    One fact to consider is that Illinois already ranks 50th in the proportion of education funding provided by the State. If the shift means the state money goes for education, then it can be justified. If the shift is just another way the state can spend even less, then it’s a regressive plan that will widen the already wide spending disparities between rich and poor districts.


  4. - biased observer - Friday, May 10, 13 @ 2:22 pm:

    i would vote for the cost shift, but there must be some consideration given to local control over whether the district participates in the pension program and to what degree going forward.

    It is not fair to these school districts to force them to participate in the pension program and force them to come up with the funding.

    In tax poor districts it may not be possible to support the pensions and continue even currently abysmal educational services.

    If some sort of consideration isn’t given to local choice over pension participation, these school districts will become nothing more than pension programs for retired and current teachers and administrators.

    This will force the local school districts to decide how much pension/retirement benefits can be afforded by the individual district.

    So yes to shift, but flexibility must be given to the local districts. It cannot be mandated by state.


  5. - Joe M - Friday, May 10, 13 @ 2:29 pm:

    Only if the overall school funding formula was redone. I’ve read stats where the State of Illinois pays the lowest amount of state spending per pupil out of all 50 states.

    That is in spite of that fact that:
    “The State has the primary responsibility for financing the system of public education.”
    (Source: Illinois Constitution.)


  6. - dupage dan - Friday, May 10, 13 @ 2:30 pm:

    What happens to the money the state currently controls that is used for the pensions? Does it follow the cost shift or does the state keep it? Where does that money come from? I agree that if the local folks control how big the pension is they should shoulder that extra burden should they choose to sweeten the pensions of the retiring educators. Isn’t that what this is all about?


  7. - Bill - Friday, May 10, 13 @ 2:33 pm:

    Yes, if there is a rational phase in period and an adequate period of time for districts to budget and prepare for implementation.
    Districts must not be given the ability to opt out of the state pension system. To do so would only exacerbate the disparities that exist between rich and poor districts when competing for the most talented and effective educators.


  8. - reflector - Friday, May 10, 13 @ 2:35 pm:

    Yes,But with rules that can be enforced.What rules I don’t know.


  9. - Oswego Willy - Friday, May 10, 13 @ 2:36 pm:

    I can support a “Cost-Shift” plan, as long as it’s not retro-active, where school districts planning on one thing and now having to deal with another, are not chaing their tails for years because the “Cost-Shift” was not given a year lead time, at least to budget for in the decisions of the district.


  10. - Anonymous - Friday, May 10, 13 @ 2:37 pm:

    yes with a levy to pay for it. With 89% (with projected deeper cuts coming) proration of GSA, huge cuts in transportation cost, elimination of a number of grant programs over the last years, additional expenses without a revenue stream would kill already ailing school budgets. It should also be phased in over at least 12 years. It should also be coupled with the resignation of many members of the General Assembly.


  11. - Cincinnatus - Friday, May 10, 13 @ 2:37 pm:

    dupage dan,

    I’ve been thinking about that, too. I can envision that the current pension funds become some sort of “mutual fund” with past benefits protected and, assuming my previous post was incorporated, future contributions to the fund controlled by the district. All monies “redistributed” from State funds are in the form of “block grants” to the district which they can use as they see fit.


  12. - Marie - Friday, May 10, 13 @ 2:41 pm:

    Yes - districts have been greatly increasing selected staff salaries the last 3 years of employment giving these staff pensions that are often well over $100,000, $125,000 and more per year in retirement - if they choose to do this then they should choose to pay. It is not so much a cost shift - but a pay your own costs.


  13. - Keep Calm and Carry On - Friday, May 10, 13 @ 2:41 pm:

    So the funding inequality between wealthy and poor school districts will widen even further?

    No thank you, Mr. Speaker.


  14. - Anonymous 1 - Friday, May 10, 13 @ 2:45 pm:

    Illinois ranks 50th in proportion of state funding for Education. Illinois is one of the wealthiest states in our country.


  15. - Griz - Friday, May 10, 13 @ 2:46 pm:

    Yes

    As long as money going to TRS at the State level now goes to the Local District at the local level. (10.9% of salary).

    Fair Share Statute forcing every Teacher to pay Union dues is eliminated.

    Every District Teacher participates in Social Security at the full benefit.


  16. - archimedes - Friday, May 10, 13 @ 2:52 pm:

    Yes. Provided it is phased in gradually. And provided at least equal funding that is shifted to the schools goes back in the GSA formula. After all - this is just so there is no free lunch, it is not meant to offload the problem to local property tax payers. Right?


  17. - cover - Friday, May 10, 13 @ 2:54 pm:

    - Every District Teacher participates in Social Security at the full benefit. -

    The federal Social Security rules contain the “windfall” provision that diminishes the value of Social Security benefits earned by workers who also have non-covered service. Illinois lawmakers can’t control that.


  18. - OneMan - Friday, May 10, 13 @ 2:57 pm:

    Kind of with OW on this, phase it in, go forward and restore state transportation funding since the cut in that really targets geographically large less dense districts…


  19. - Liberty First - Friday, May 10, 13 @ 2:58 pm:

    The state is strangling education. Do we really want a handful of legislators and lobbyists running our education system? The shift from local to state over the last 30 years has dramatically driven up costs.


  20. - Oak Park Rob - Friday, May 10, 13 @ 2:59 pm:

    Seems like a good argument for reforming education funding away from property taxes.


  21. - Nickypiii - Friday, May 10, 13 @ 3:03 pm:

    Property taxes have caps which protect taxpayers from big jumps in taxes. School funding from the state is embarrassing low as a percentage related to the overall cost of educating the States children. These pensions are local costs made by local school boards who have had a almost free ride in paying for their employees. Cost shift is correct and fair. Future State funding of education would be freed up by this savings. Will all the cost savings be passed on in the form of increases the States funding of education…of course not! However, the freed up capital would allow for fairer funding from the State budget for all school districts. Teachers who now have their portion of pension contributions paid for by their districts would have to come out of pocket in the future and the districts will have to be much tougher when negotiating future employment contracts because of the cost of their employees retirement plans being their responsibility.


  22. - Ghost - Friday, May 10, 13 @ 3:14 pm:

    I support this. The locals abused the system. They negotiated sweetners that artitifically kick up salaries right before retirmenet becuase it was spending somone elses money. If they had to come up with that cost we probably wouldnt have those. So teachers contribute to their retirement at a lower salary, then get a short salary boost which sets the amount o salary we use to figure their retirement? I think that is unfair, its not like they have been contributing all along on that salary amount.

    Send it back AND require them to use the formula applid to the majority of employes, retirement salary is based on an average of your 4 highest years out of the last 10. Same for the GA, no more last day pay, base it on long time earnings.


  23. - John Galt - Friday, May 10, 13 @ 3:15 pm:

    I’m a suburban GOPer in an excellent school district. I could support the tax shift, provided a few caveats that others have pointed out:

    1) It needs to be phased in gradually. Districts have multi-year plans and budgets and asking them to shift mid-plan is not reasonable. Give them time to plan ahead.

    2) If the locals are going to pay for the pensions 100%, they should have more latitude and control in how they accomplish that and what they contract with the school district employees. Giving local school districts more flexibility will produce a whole host of creative solutions over the next few years. The popular fixes will be copied by districts statewide; the bad fixes will die after one or two contract cycles.

    I know lots of administrators are bemoaning the fact that especially in conservative areas, they will “run out of money.” They can either cut their budgets elsewhere to make up the difference, or ask for more tax monies through increasing a millage. If the area is so averse to higher property taxes for schools that they will NEVER pass a millage, then so be it. The citizens ultimately run the show, not the administrators.

    When I hear this from administrators, basically what they’re saying is they don’t trust the parents & citizens of the school district to ‘do what’s needed.’ I guess my response is: well, you need to make the case at the polls. Or failing that, then you need to be at peace with the wishes of your bosses–the voters of the district.


  24. - DoubleD - Friday, May 10, 13 @ 3:15 pm:

    A plan from Mr. Speaker that allows Chicago and Suburbs to gain more tax dollars…NO WAY. All this shows is what is painfully evident…the time for term limits Mr. Speaker is LONG OVERDUE.


  25. - Anon3 - Friday, May 10, 13 @ 3:51 pm:

    Yes, with several cautions–

    1. State must pay the unfunded liability with school districts paying current costs which should be established as a percentage of salaries.
    Overtime the state would no longer be paying for pensions, but schools should not be stuck with the costs the state failed to pay.

    2. The unfunded liability should be amortized in such a way that the state can not decline to pay.

    3. In the future if the state increases pensions, the state must pay the cost of that increased benefit.

    4. Shift would be phased-in over at least 10 years starting no sooner than one year after enactment.

    5. Money saved would increase education funding.

    6. Districts would be required to participate and to pay just as IMRF employers are.

    Under such a system taxpayers in low wealth districts would benefit as they are currently subsidizing high wealth districts which generally have higher salaries. If high wealth districts are overtime required to pick up the pension costs on those high salaries, it will improve education funding equity.


  26. - Arthur Andersen - Friday, May 10, 13 @ 4:01 pm:

    Yes, to pay normal cost, with a reasonable phase-in period.
    None of this opt-out or Social Security nonsense. There are enough State legal challenges without testing Fed law on bad ideas.


  27. - Not my money - Friday, May 10, 13 @ 4:09 pm:

    No Way! My property taxes are way too high as it is. I live in Orland Park and don’t know anyone who would support a plan that would directly increase property taxes. It’s a bad idea plain and simple.


  28. - Ahoy! - Friday, May 10, 13 @ 4:09 pm:

    I voted yes because it said any cost shift plan, I could not support a 100% shift. I could support a 50% shift or some other formula that ensures school districts do not back load contracts to increase pensions.


Sorry, comments for this post are now closed.


* $3 million in one pop from Rauner
* Reader comments closed for the weekend
* SUBSCRIBERS ONLY - State House fundraising report
* *** UPDATED x1 *** Has the haymaker punch arrived?
* SUBSCRIBERS ONLY - State Senate fundraising report
* Third straight poll shows Rauner leading Quinn
* Last call for tickets!
* Vast Majority of Illinois Voters Support Renewable Energy, Energy Efficiency
* Sun-Times reporters want you to sign their petition
* Same song, different century
* Question of the day
* Quinn finally wins a newspaper endorsement!
* SUBSCRIBERS ONLY - Today's cable TV buy report
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, TV ads
* Report: Another tie between Rauner and CS-T chairman
* Bost's "anger," Cook's ratings, Foster's ad
* $580 MILLION EXELON RATE HIKE?? That’s the price tag for their nuke bailout…EVERY YEAR!
* *** UPDATED x1 *** Rauner pumping dollars
* Rauner pushing IDOT back into the news stream
* Gov. Quinn runs new TV ad featuring FLOTUS
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* No, your eyes didn't deceive you
* Good morning!
* 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

          
        * Pronto Fast Charge battery gives a full charge in 5 minutes
        * GunFinger is a zombie shooter with fun shooting gameplay
        * Samsung answers design questions for Note 4, Note Edge
        * The Week in iPad Cases: Keyboards, exotic designs, and protection for every season
        * Spot the hubris: A case of the pundit pot calling the Apple kettle black
        * Android 5.0 update for Samsung Galaxy S5 to hit in December
        * A first look at the Nexus 9

        * Mobile this week: Kindle Voyage takes off; Google Inbox reviewed; Apple iPad SIM lock(ed)
        * Facebook Rooms: This Week in Social Media
        * Samsung Galaxy Mega 2 Launched in India for Rs. 20,900
        * iPad Mini 3 Cracked Open By iFixit, Gets a Poor Repairability Score
        * Leak Reveals A List of Countries Where Samsung Galaxy S5 Active Will Launch
        * Sony Rumored to Launch a New 12-inch Tablet Next Year
        * Nexus 6 Pre-orders To Begin In Canada on October 29th, Starts At 749 CAD

        * A 15-GIF salute to Moises Sierra's White Sox career
        * Konerko caps stellar career with Clemente Award
        * Konerko caps stellar career with Clemente Award
        * World Series Game 3: Notes and discussion
        * Rollins, Konerko named co-winners of Clemente Award
        * Alexei Ramirez and Adam Eaton Gold Glove finalists, but maybe not f...
        * Longtime scout Provas passes away after battle with cancer


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

        Archives
        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


        * Gov. Quinn orders mandatory statewide Ebola qua.....
        * Pat Quinn imposes mandatory 21-day Ebola quaran.....
        * Shakman: Monitor not political, but patronage Is..
        * Illinois gov's race focuses on women voters..
        * Rauner Denies Newspaper Accusations..


        * Illinois quarantine for who touched Ebola patients
        * US judge names monitor of IDOT hiring
        * Radio host convicted of alleged $10 million fraud
        * Illinois gov's race focuses on women voters
        * Judge rules against Ameren in power line dispute
        * Feminist Steinem endorses Illinois governor
        * Madigan, Rauner spend big on Illinois House races
        * Cockroach visits Chicago's City Council chambers
        * Chicago police to check bags on transit system
        * Toddler taken from family found in Illinois

        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Officials rethink early vote-counting after Madigan ruling
        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes

        * Regulators close National Republic Bank of Chicago
        * Rauner, the reporter, the Sun-Times and 'appearance of impropriety'
        * Carol Adams retiring as head of DuSable Museum
        * Chicago police to check bags at CTA stations
        * Shire CEO Ornskov 'dumbfounded' by collapse of AbbVie deal


        * Judge rejects Pistorius comparison, gives 17-year sentence in murder-for-hire plot
        * Keep it peaceful in Ferguson, Mo.
        * Why wasn’t Ebola doc kept under scrutiny?
        * Enthusiastic student Stan Kij, 25, dies of stomach cancer
        * Editorial: Bruce Rauner for governor
        * Back to the past with mayor’s move
        * Illinois needs better way to deal with terminally ill inmates
        * At panel on school closings, board acknowledges more planning needed
        * Marina City residents reminded to watch their step during Wallenda’s walk
        * Republican senators question Quinn’s IDOT scandal response


        * ComEd explosion startles residents in Near North neighborhood
        * 2 dead, 8 hurt in shootings since Friday evening
        * Man hurt in Dan Ryan shooting Friday evening
        * Man charged with murder in South Side man's slaying in August
        * Cops: Man stole semi-truck, critically injured bicyclist and fled
        * Former radio host convicted of mortgage fraud
        * Boy, 17, charged in fatal shooting in Englewood
        * $5 million bond in vandalism of Lombard synagogue
        * FBI searches Chinatown restaurants, at least 3 owned by famed chef Tony Hu
        * Des Plaines man who tried to hire killers to burn wife, friends alive gets 17 years


        * Listen to State Week - October 24, 2014
        * 2014 Election Coverage: Citizens, here's your homework!
        * 2 dead, including gunman, in high school shooting
        * Prosecutors want more of indicted police commander’s 'bad acts' in court
        * Prosecutors want more of indicted police commander's 'bad acts' in court
        * Bedrock 66: Charlie Parr Plays Springfield Friday
        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin


        * Michael Bromberg: Benedictine looking ahead at changes in higher ed
        * Charles Krauthammer: Barack Obama, aggrieved bystander
        * Feminist Gloria Steinem endorses Quinn for governor
        * Madigan, Rauner spend big on Illinois House races
        * Our Opinion: Bell, Manar, Davidsmeyer endorsed in state legislative races
        * Craig Burns: Honesty, integrity in great supply at CWLP
        * E.J. Dionne: Ebola, pandering and courage
        * Esther Cepeda: Benefits of closing the word gap
        * Officials rethink early vote-counting after Madigan ruling
        * Our Opinion: Frerichs has the expertise to be Illinois treasurer


        * Two gravely injured in overnight shootings in Champaign
        * Former pastor committed for 51 years
        * Two shootings in Champaign overnight
        * Police investigate two shootings
        * Ben Quattone with Honda BMW of Champaign 10-25-14
        * Visit Champaign County 10-24-14
        * Bridle Brook Adult Community 10-25-14
        * Preservationist leaves a legacy
        * Weekend update: Put a stamp on it
        * UI Labs sets first board of directors


        * UW-Madison spring commencement stays at stadium
        * Building residents warned about Wallenda's stunt
        * Ex-pastor sentenced for molestation
        * Ex-soldier gets 15 years for Illinois robbery
        * Civil War statue returning to downtown Rockford

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Chuck Sweeny: Dick Durbin leading Jim Ober......
        * Chuck Sweeny: Dick Durbin leading Jim Ober......
        * Chuck Sweeny: Dick Durbin leading Jim Ober......
        * Chuck Sweeny: Dick Durbin leading Jim Ober......
        * Chuck Sweeny: Dick Durbin leading Jim Ober......

        * Bruce Rauner & Carly Fiorina Inspire Downe......

        * Rauner and Quinn release new ads [videos]
        * Kaifesh supporters upbeat about their candidate [video]
        * City Reopens Van Buren Bridge A Month Ahead Of Schedule
        * Latest poll: Rauner 45%, Quinn 43% and Obama's approvals at 46%
        * Illinois AG's opinion could mean long night of counting
        * DeMonte: Why I'm Endorsing Bruce Rauner
        * Illinois Woman Shows Off Her Breast Cancer Awareness Ribbon In Mug Shot
        * ILGOP mailer: Quinn and Madigan "trying to steal the election"
        * Whittle: Your Second Amendment [video]
        * Report: Caputuring Methane A Boost For Business In Illinois


        * Rauner rips Quinn on IDOT patronage oversight
        * Governor Quinn Announces Winners of 2014 Illinois Export Awards - State’s Trade Programs Help Companies Increase Global Sales
        * New Ad: Labor leader backs Rauner
        * Jewish Newspapers Endorse Rauner for Governor
        * Statement from the Illinois Department of Public Health and Chicago Ebola Resource Network




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