Something’s missing here
Tuesday, Jul 8, 2014
* From a Tribune editorial entitled “How the pols who caused this crisis can save Illinois from ruin“…
Changing the state Constitution probably won’t produce any significant near-term savings. And as the Sun-Times rightly notes in its own editorial entitled “Time for pension reform 2.0“…
The Sun-Times offered no other ideas of its own.
And you can eliminate some local governments, but the services still have to be provided. So the savings aren’t truly gigantic. And state savings are practically nil.
And massive cost-cutting plans by civic watchdog groups? Where?
* Here’s Madeleine Doubek in an op-ed called “It’s time for a real pension fix in Illinois“…
Again, changing the Constitution probably won’t work for existing retirees and workers. And, keep in mind that the already passed Tier 2 benefits are a net donor to the pension funds. Yep, the recipients will get less than what is put in. Kill that off and you’ve actually cost the state money.
You can stop prospective double-dipping, but current double-dipping can’t be stopped after that ruling. And it’s not a huge fiscal issue anyway.
* School districts, however, most certainly can be legislatively reined in on their end of career salaries. The GA has already done this once.
But wouldn’t a more market-style approach be to begin making school districts pick up their own pension payments? They’d watch those salaries a whole lot more closely if it cost them real money down the road. And, since it’s probably not possible to cut benefits, that’s where the only real savings will be realized. Illinois, as I’ve told you before, is almost alone in the nation for being responsible for teacher pension payments.
Why is nobody else talking about this?