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.


* Another new way to find and target voters
* Citizen Action rails against Uber
* Does it feel like August to you?
* *** UPDATED x2 - Rauner responds - Decision posted *** This just in... Appellate court affirms term limits ruling
* Libertarians likely on ballot, Greens up in the air
* Prank ad posted on craigslist
* Lewis takes next step, files D-1
* Schneider still under fire over tax returns
* True, but...
* Is it tightening?
* Question of the day
* *** UPDATED x4 - Rauner promised return to NBC5 before primary - Quinn camp says Rauner "proposed a phony alternative of concocted venues" *** Rauner proposes attending four candidate forums, three public debates, one private debate
* *** UPDATED x1 *** Yes, he did, but so did Quinn
* You gotta do what you gotta do
* Rate Pat Quinn's new TV ad
* 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

          
        * ZTE nubia 5S mini arrives in the US, unlocked and with LTE
        * Cross-Platform Development Platform Xamarin Raises $54M Series C
        * Fonts review: Preview your Mac's fonts with this app's attractive interface
        * Samsung and B&N announce release of Galaxy Tab 4 Nook
        * Huawei teases Sept 4 announcement of Ascend Mate7
        * Samsung Galaxy Note 4 gets benchmarked, powerful CPU shown off
        * Poll: What do you love most about the Nokia 130?

        * Mad Catz Unveils New Tournament Edition Gaming Keyboard And Mouse
        * College Professor Believes World Of Warcraft Is More Than Just A Game
        * Microsoft Testing Limited Time Free Game Program For Xbox Live Gold Gamers
        * Remember Google’s Wave? Thanks to Sandstorm, it’s easy to start using again
        * Work on Your Passion Project for 90 Minutes Every Day for 90 Days
        * mini Duino+ Open Source Ardunio Board Based On ATmega 1284p (video)
        * Sony Xperia Z3 Appears In TENAA

        * Reading Room: Rick Hahn speaks vaguely about September
        * Avisail finds power stroke in loss to Orioles
        * Danks leads White Sox into Bronx for weekend visit
        * Orioles 4, White Sox 3: Homers hector Noesi
        * Noesi unable to keep Orioles in the park
        * Limited number of callups to reinforce roster
        * Rodon's September plans not yet determined


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

        Archives
        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


        * Quinn and Rauner to debate in Peoria..
        * Survey Finds Older Illinois Voters Anxious Abou.....
        * Quinn Gaining in Polls; Debates Pending..
        * UPDATED: Appeals court says term limits can't b.....
        * Rauner urges immediate appeal to Supreme Court..
        * State plans to boost Medicaid funding for contr.....


        * South Side Chicago juvenile shot to death
        * Last 4 hostages freed in suburban Chicago standoff
        * Appeals court says term limits can't be on ballot
        * U. of Illinois can expect presidential pay to rise
        * Criminal assault charge leads to officer's firing
        * Sheriff: Hostage takers shot through door
        * Marijuana town hall attracts hundreds in Chicago
        * Quinn, Rauner set on 3 traditional debates
        * 2 Americans arrested in Bali under suicide watch
        * Rauner urges immediate appeal to Supreme Court

        * Appeals court says term limits can't be on ballot
        * Marijuana town hall attracts hundreds in Chicago
        * Governor candidates commit to 3 traditional debates, none in Springfield
        * Manar, others tout school funding reform bill
        * Vallas attacks, Rauner defends businesses and investments
        * State retiree insurance premiums dropping to pre-July 1 levels
        * Vallas attacks, Rauner defends businesses, investments
        * State retiree insurance premiums to drop
        * Vallas attacks Rauner's businesses, investments
        * Rauner urges quick decision on term limits measure

        * Is Drift the hippest eyewear brand in America?
        * 10 Things to Do
        * Dress code: "Business fun"
        * Meet the new Threadless: Fast-growing T-shirt maker Ript Apparel
        * U of C Medicine's Orland Park project could hurt area hospitals: state report


        * Who sez da mare ain’t no real Chicagoan?
        * Court records shed new light on teen linked to mother’s death in Bali
        * Harvey standoff over; hostages rescued, two men in custody
        * Feds try to tie convicted drug dealer to cop slaying
        * Parents urge CPS to OK new Chatham site for Concept school
        * $1 million pledge changes Lewis’ ‘calculus’ — but not her timeline
        * National school union would put $1 million into Karen Lewis mayoral campaign
        * School closed as Harvey hostage standoff continues
        * Karen Lewis opens campaign fund for possible mayoral bid
        * James Foley was correspondent for Post-Tribune


        * Boy, 9, shot to death on South Side
        * Divvy bike-share expansion delayed until spring
        * State plans to boost Medicaid funding for contraception
        * Man gets 15 years for impregnating girl, 12
        * Car drives into Northfield Mariano's, 4 injured
        * Medical marijuana entrepreneurs question officials over application process
        * After infant dies, lawsuit filed against nanny service care.com
        * Body of Chicago woman killed in Bali returned to U.S. for second autopsy
        * Prosecutors push to link Jason Austin to fatal shooting of cop
        * Firing of DuPage County animal control director upheld


        * Springfield Supt. Previews Coming School Year
        * Green, Libertarian Parties Await Approval For Nov. Ballot
        * The tale of the two-flat
        * Why The Rush? Term Limits Decision Time Deadline, Explained
        * Push Continues For School Funding Overhaul
        * Appellate Court Confirms: Term Limits Not Eligible For Ballot
        * Listen to State Week - August 15, 2014
        * 'PechaKucha' Highlights Unique Springfield Stories & Characters
        * (Cow) Tipping The Governor's Race
        * Lt. Gov. Simon Vies For Comptroller


        * Bernard Schoenburg: Possible Ward 10 aldermanic candidates emerge as Griffin considers future
        * Illinois Attorney General Lisa Madigan: Cybercrime inevitable, so protect yourself
        * Eugene Robinson: The ones left behind
        * George Will: Fed up with cupcake cops
        * Appeals court says term limits can't be on ballot
        * Marijuana town hall attracts hundreds in Chicago
        * Governor candidates commit to 3 traditional debates, none in Springfield
        * Manar, others tout school funding reform bill
        * Michael Gerson: Rand Paul’s bogus outreach
        * Our Opinion: Double down on outside lottery management


        * Session will focus on diabetes management
        * YWCA adds money management program
        * After cool summer, 90-degree days on the way
        * Term limit push hits another legal roadblock
        * Top of the Morning, Aug. 21, 2014
        * Davenport mom 'purposely' shoots son, 6, with BB gun, police say
        * Six Mile Township to move into new Zeigler building
        * Schilling: Bustos should give away $34,800
        * Madigan alerts residents of phone scam
        * Rain? Possible. Muggy? Definitely.


        * World's fastest clapper hails from Arlington Heights
        * 'Land Ho!' either lovable or boorish
        * Bat bite puts theatergoer on rabies treatment program
        * DuPage County forest director says he was forced out
        * Dawn Patrol: UberX driver sued over death; Cubs game resumes today

        * Roskam, Kirk speak to local business owner...
        * Roskam Talks Taxes - Alton Daily News
        * Roskam gives business leaders vision for f...
        * Roskam: Fighting human trafficking in the ...
        * Nadler, Roskam Introduce Bipartisan Resolu...
        * Rep. Nadler, Roskam Introduce Resolution C...
        * Rep. Roskam In Letter to Kerry: Stop Runni...
        * Reinvigorating The Antibiotics Pipeline - ...
        * What's next for Peter Roskam? - Chicago Su...
        * Dem Explains Why He Voted 'Present' on DAC...

        * Officials looking to cut down on late Amtr......
        * Durbin Sparks Backlash After Praising Pris......
        * Durbin Sparks Backlash After Praising Pris......
        * Durbin Sparks Backlash After Praising Pris......
        * Durbin Sparks Backlash After Praising Pris......

        * Kirk Talks Imports and Exports...

        * Updates, Day One: No Casino for Wabash?? (And no walkway for you!)
        * The Week In Chicago Rock
        * The Cub Factor: Bobbleheads We'd Like To See
        * Reality BobbleCubs
        * #selfiesforkaren
        * Hinsdale. Teachers union isn’t signing on the dotted line.
        * Concept Proposes New Site For Chatham Charter School
        * Illinois High School Graduates Make Some ACT Gains
        * Obama Weighs Broader Move On Legal Immigration
        * Holder Brings His Civil Rights Push To Ferguson


        * ICYMI: Rauner directs legal team appeal to Supreme Court
        * Rauner Response to False and Misleading Quinn Ad
        * ICYMI: Rauner ratchets up pressure on term limits question
        * Department on Aging Hosts Financial Summit to Strengthen Financial Abuse Protections of Seniors - Summit held during annual Adult Protective Services Conference
        * Governor Quinn and Ice Bucket Challenge Creator Pat Quinn Join to Encourage Support for ALS Research - Chicago’s North Lawndale Eagles Participate in Ice Bucket Challenge; Governor Proclaims August 20 as “Ice Bucket Challenge Day” in Illinois




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