SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
SEIU predicts pension reform passage

Wednesday, Apr 2, 2014

* The Chicago pension reform bill is about to start moving as I write this. There’s a noon committee hearing scheduled.

One of the more interesting developments in this legislation was SEIU’s reaction

.Christine Boardman, president of the Service Employees International Union (SEIU) Local 73, said she supports the “basic constructs” of the pension deal that impacts 10,000 of her members.

“We’re in support of the increase in employee contributions. We’re in support of the Emanuel plan to try to fund it through property tax increases. The bill is going to pass. I know that. You know that,” she said.

“We’re not gonna work against the bill. We’ve told that to Speaker [Mike] Madigan. We’re gonna be neutral, only because of the effect it has on retirees.”

* To the bill, with new stuff bolded

There shall be printed on each [property tax] bill, or on a separate slip which shall be mailed with the bill: […]

there shall be a separate statement of the dollar amount of tax due which is allocable to the Pension Stabilization Levy under Articles 8 and 11 of the Illinois Pension Code

So, Chicago property taxpayers will get to see how much they’re paying toward this pension fix.

* Also in the bill

for payment years 2016 through 2055, the annual amount determined by the Fund to be equal to the greater of $0, or the sum of (1) the City’s portion of the projected normal cost for that fiscal year, plus (2) an amount determined on a level percentage of applicable employee payroll basis (reflecting any limits on individual participants’ pay that apply for benefit and contribution purposes under this plan) that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2055.

* Some Republicans are saying that the above language means there is a mandated property tax increase in the legislation. Yes, there are definitely minimums set, so taxes will absolutely have to rise because of the statute. But aldermen are gonna have to put a little skin in the game as well…

For levy years 2015 through 2020, the city council of the city shall levy a separate tax annually upon all taxable property in the city that shall be known as the Pen Stabilization Levy and shall be at a rate that, when extended, will produce an amount that is no less than one-half of the city’s required contribution amount under subsection (a-2) for each year.

- Posted by Rich Miller        


23 Comments
  1. - Toure's Latte - Wednesday, Apr 2, 14 @ 12:14 pm:

    Is there a section of the bill explaining if/how TIF districts are treated?


  2. - DuPage - Wednesday, Apr 2, 14 @ 12:15 pm:

    Rahm wants to get this law passed quick before the ILSC declares the reductions unconstitutional.
    The tax funding part will probably stand.


  3. - gopower63 - Wednesday, Apr 2, 14 @ 12:24 pm:

    The line item on Chicago property tax bills should read “Richard M. Daley Legacy Tax” in honor of the man who built his reputation in large part by punting his obligations on future generations.


  4. - downstate hack - Wednesday, Apr 2, 14 @ 12:31 pm:

    Property tax increases of this magnitude will kill Chicago neighborhoods.


  5. - A guy... - Wednesday, Apr 2, 14 @ 12:31 pm:

    Smell a storm a brewin’.


  6. - Chi - Wednesday, Apr 2, 14 @ 12:49 pm:

    “Rahm wants to get this law passed quick before the ILSC declares the reductions unconstitutional.
    The tax funding part will probably stand.”

    Funny strategy for Rahm since the provisions of SB 1922 are “mutually dependent and inseverable”.


  7. - Jack - Wednesday, Apr 2, 14 @ 1:04 pm:

    If and when passed when does it go into effect? Will 2015 be the first year for COLA decrease?


  8. - anon - Wednesday, Apr 2, 14 @ 1:09 pm:

    Would you please stop automatically referring to these bills as pension “reform?” “Reform” is a biased term because it implies that there was something untoward about the benefits accrued. Pension “reduction” would be more neutral, fair and objective.


  9. - Jack - Wednesday, Apr 2, 14 @ 1:29 pm:

    Thank you, Anon. Really it is pension theft!


  10. - DuPage - Wednesday, Apr 2, 14 @ 2:00 pm:

    @Chi12:49PM=mutually dependent and inseverable=
    I stand corrected if that is the case. Most of them have the “if one part is thrown out, the rest of this law is valid” or something similar.


  11. - RNUG - Wednesday, Apr 2, 14 @ 2:29 pm:

    I probably didn’t emphasis it as much as I should have in the 1:50 pm post, but that COLA change to only calculate on the 2014 / original pension amount, is a HUGE hit to the retirees.


  12. - RNUG - Wednesday, Apr 2, 14 @ 2:30 pm:

    - Toure’s Latte - Wednesday, Apr 2, 14 @ 12:14 pm:

    No mention of TIF’s that I saw


  13. - RNUG - Wednesday, Apr 2, 14 @ 2:57 pm:

    - Jack - Wednesday, Apr 2, 14 @ 1:04 pm:

    Assuming it gets passed soon enough to take effect on 1/1/2015 from a simple majotity or it gets a supermajority later to take effect 1/1/2015 … yes, the first lowered COLA would be 2015.


  14. - A guy... - Wednesday, Apr 2, 14 @ 3:21 pm:

    ===Toure’s Latte - Wednesday, Apr 2, 14 @ 12:14 pm:

    Is there a section of the bill explaining if/how TIF districts are treated?====

    Why would it need to? The property tax paid at the new rate (above the frozen TIF level) would go into the TIF fund just as it would now, allowing that increment to grow until the TIF expires. TIF funds not used for development would be proportionally and annually redistributed to the taxing bodies in the district. I don’t see how this would change that. The question on the existence of the TIF, a whole nother ballgame.


  15. - Rod - Wednesday, Apr 2, 14 @ 3:31 pm:

    I am not sure why “downstate hack” thinks the property tax increase will kill Chicago neighborhoods. Please explain? I live in Chicago and honestly don’t see that happening.

    There are communities. like Englewood on the south side, where the median price of homes currently listed is $24,900 and the median price of homes that sold is only $47,000. Really for lower priced homes in many communities the rate increase will not add up to much cash out of people’s pockets.

    In higher income communities, with more expensive homes we are talking about a much bigger impact. Lakeview on the north side for example where the median home on the market is $450,667 and the median price of homes sold in the last year was $429,000 will experience a bigger impact than poor communities.

    But most people with money who live in Chicago are there because of proximity to downtown jobs and it is not likely they will pack up, sell their homes and condos at a loss, and move to Hinsdale.


  16. - Jimbo - Wednesday, Apr 2, 14 @ 4:21 pm:

    This is going to cause a major stink when folks think the pensions are bleeding them dry. The dollars shown as pension contributions should not reflect repayment of the unfunded obligation. That amount is standard debt service, not pension contributions.


  17. - RNUG - Wednesday, Apr 2, 14 @ 4:51 pm:

    - Jimbo - Wednesday, Apr 2, 14 @ 4:21 pm:

    It’s pension funding that was never paid in. People weren’t complaining when they were paying too little.

    How would you label it / pay it?


  18. - Jimbo - Wednesday, Apr 2, 14 @ 5:06 pm:

    RNUG, debt service. It’s no different than paying bond holders. The money was borrowed and is now being paid back. Not that it would happen, but phrasing it this way makes it look like the pensioners are bleeding taxpayers dry, when in reality, the bill is now due for years of low taxes. People will see this and get outraged about pensions. Just wait. That appears to be the plan.


  19. - RNUG - Wednesday, Apr 2, 14 @ 5:23 pm:

    - Jimbo - Wednesday, Apr 2, 14 @ 5:06 pm:

    The money was never paid in the first place. Now it has to paid (not repaid) with the interest it should have earned. It may be semantics, but that is different than borrowing from the fund and having to repay it.


  20. - RNUG - Wednesday, Apr 2, 14 @ 5:25 pm:

    And what people should get outraged about is the politicans who didn’t pay the bill when first due and / or took pension “holidays” …


  21. - RNUG - Wednesday, Apr 2, 14 @ 5:29 pm:

    BTW - Hinz is predicting the bill will be passed by both chambers by the end of the week.


  22. - Dirty Red - Wednesday, Apr 2, 14 @ 11:39 pm:

    “WHOOPS!”


  23. - Jimbo - Thursday, Apr 3, 14 @ 8:35 am:

    RNUG, yes it is just semantics, and it doesn’t matter because it isn’t like they would ever call it what it is. I would argue deferred payments are exactly the same as borrowing money. It is a debt on the balance sheet, so paying it is different than funding a line item for a program. I think it is a shame that they plan to whip up anti-government worker sentiment just so they don’t take any heat for the tax increase. Oh well, I think as far as that being a bad thing we agree.


Sorry, comments for this post are now closed.


* Get off the back bench, please
* A triangulating shift
* Counting the absent legislators
* Credit Unions – 100 Million Strong
* The reddest of meat
* Today's number: 47
* 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

          
        * Xiaomi slashes the price of its Redmi 2 smartphone in India
        * OnePlus 2 pricing somewhat confirmed, fans should be happy
        * Jolla plans to split software and hardware business
        * The five most popular notes apps for Android (Video)
        * Whipclip Raises Over $40 Million For Its TV Show And Music Video Clipping App
        * Pre-Crime Startup BioCatch Authenticates Users Via Touch And Your Phone’s Accelerometer
        * SplashID Pro keeps your passwords safe for life [DEALS]

        * Take One of These One-Tank Road Trips from 13 Major US Cities
        * Journey PS4 Game Launches On July 21st 2015 (video)
        * Google Self-Driving Cars Now Being Tested In Austin, Texas
        * HP’s Veghte Named CEO of SurveyMonkey
        * Whipclip Raises $40 Million in Bid to Dominate Legal Video Clipping
        * Republic Wireless Shifts From Unlimited Plans to Ones That Offer Refunds
        * Rekindle Your Passion for Work by Connecting with Coworkers

        * Ruminations on the Chris Sale-Mark Buehrle duel
        * Quintana hopes for run support against Blue Jays
        * Sale fans 6 in complete-game win over Jays
        * White Sox turn tables after opponent's mistake
        * Sale named AL All-Star, goes the distance
        * White Sox 4, Blue Jays 2: Chris Sale-Mark Buehrle duel meets expect...
        * Sale fans 6 in complete-game win over Jays

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


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

        Archives
        July 2015
        June 2015
        May 2015
        April 2015
        March 2015
        February 2015
        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


        * Illinois Budget Battle Approaches Meltdown - Co.....
        * Bill Knight: The coward's way out of budget cut.....
        * Jim Nowlan: Addressing Chicago's mess - Champai.....
        * Editorial: Point finger at Democratic leaders f.....


        * Autopsy: 3-year-old girl drowned in Mokena swimming pool
        * Peterson returns to court in murder-for-hire trial
        * Bruce Jenner's 1984 Olympic Torch going on auction block
        * Amy Schumer and Aziz Ansari to lead Oddball Comedy tour
        * Illinois voters head to polls in primary for Schock's seat
        * Bruce Jenner's 1984 Olympic Torch going on auction block
        * Deadly weekend in Chicago highlights city's gang warfare
        * Illinois' games in Springfield include in-state foes
        * Aretha Franklin sings praises of Illinois after highway help
        * Illinois basketball attendance down but 15th in the country

        * ACLU seeks federal enforcement of Illinois child services
        * Despite state budget deadlock, there are ways out
        * Despite budget deadlock, there are ways out
        * Statehouse Insider: Take the over on when this impasse is going to end
        * Springfield School District has paid nearly $500K in pension penalties in past 6 years
        * East St. Louis paid big legal fees to state senator's firm
        * Illinois Senate honors victims of Charleston church shootings
        * Bill would allow cameras in Illinois nursing homes
        * State employee lawsuit seeks assurance of full pay despite no budget
        * U of I freezes administration hiring over budget

        * Marco Rubio to give major speech today in Chicago
        * U of I names new law school dean
        * Plane orders plunge for Boeing, Airbus
        * Invenergy hauls in $2 billion from sale of wind farms
        * S&P's grade on Illinois budget talks: 'failure'


          * Divvy to be discounted for low-income people
          * Man, 20, charged with shooting downtown after July 4 fireworks
          * Cold front triggers storms and a much cooler Tuesday
          * Mundelein mayor's July 4 speech on 'moral crisis' sparks fireworks
          * Bruce Jenner's 1984 Olympic Torch going on auction block in Chicago
          * Voters head to polls in primary for Aaron Schock's seat
          * Boy, 16, killed and 8 people wounded in shootings across Chicago
          * Meghan Trainor postpones Chicago show due to vocal cord hemorrhage
          * Mayor calls on father of slain boy to cooperate with police: 'You have a responsibility'
          * Fourth Flash: A glance at Tribune's live July 4 coverage


          * The legacy of Willie Dixon on his 100th birthday
          * Ex-Illinois US Rep. Reynolds doesn't show for arraignment
          * At eleventh hour, CPS makes huge pension payment
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions
          * Deadly weekend in Chicago highlights city's gang warfare
          * Thai Town opens at last in Albany Park
          * Drug addicts sent from Puerto Rico may be victims of ID theft in Chicago
          * Boy, 7, killed during violent July 4 celebrations in Chicago
          * Southwest Side residents work toward racial healing
          * No more 'roar' as famed trading pits come to an end


          * ACLU seeks federal enforcement of Illinois child services
          * Our Opinion: Don't let a few voters decide who goes to Congress
          * Fullerton, Konar and Reif: Pope Francis' message a chance for Illinois to plan ethically for climate change
          * Despite state budget deadlock, there are ways out
          * Bernard Schoenburg: Independent redistricting proposal could be on 2016 ballot
          * Statehouse Insider: Take the over on when this impasse is going to end
          * Statehouse Insider: Take the over on when this impasse is going to end
          * Springfield School District has paid nearly $500K in pension penalties in past 6 years
          * Letter: Rauner being set up for a fall
          * Angie Muhs: A year later, optimistic and grateful


          * Soccer mom, stage mom — it’s a learning experience
          * From the blog: Flyin' Illini relived
          * Best of Illini: No. 33, Eric Finney
          * Best of teams: No. 33, West Virginia
          * Rail cars derail near Pontiac, 2 minor injuries
          * A.M. UPDATE: Anderson loses in 5
          * State Representative Carol Ammons 7/7/2015
          * Reopening Thursday
          * Music fest returning downtown
          * This day in history, July 7, 2015


          * Autopsy: 3-year-old girl drowned in Mokena swimming pool
          * $2 billion bailout for Nigerian states to pay workers
          * The Latest: No new written plans from Greece, say officials
          * Djokovic beats Anderson in 5 to reach Wimbledon quarters
          * Record rainfall drowns crops across Indiana

          * House lawmakers overcome hurdle on key tra...
          * Rodney Davis talks funding with Bloomingto...
          * The agency that fought Illiana gets a new ...
          * Rep. Dold takes educational cruise down Ch...
          * Lawmakers decry high turnover rate of VA h...
          * CBD Oil, and politics
          * Simon considering state Senate bid
          * Killer Congressman Tom MacArthur trying to...
          * Shutdown? State may not notice
          * Rep. Bob Dold

          * ​Critics of Ukraine's government get propa......
          * Letter to Ukraine's prime minister suppose......

          * Sierra Club Ad Campaign Targets Kirk Over ......
          * Environmental group's $1M attack ad target......

          * CTU, Allies Protest Outside Bond Buyer's Midwest Municipal Market Conference In Chicago
          * Story can help you and your buyers avoid financial roadblocks
          * Newspaper editorial: Ad tax is a bad idea, would hurt business
          * Sierra Club Ad Campaign Targets Kirk Over Environmental Votes
          * Special Primary Election For Schock's House Seat Being Held Tuesday
          * Number of Illinois medical pot patients tops 2,600 and growing
          * Where's Weyermuller? On WLS 890 AM's Stephanie Trussell Show
          * NBC News: A tour of Roseland
          * Grateful Dead Top Priority for Illinois Democrat Legislator
          * Illinois state lawmaker cuts office costs 17 percent, returns funds to taxpayers


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report




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