Capitol Fax.com - Your Illinois News Radar » Today’s history lesson
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.


* Pritzker, Biss respond to Senate budget votes
* In her dreams
* Support High-Performing Charter Schools
* "I’m a big believer in win-win"
* Unkind headlines
* Modernize the Vital Records Act - Support HB 1785
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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

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

...............
<


Loading


* Day after Senate budget vote, GOP tries to push.....
* Day after Senate budget vote, GOP tries to push.....
* Illinois Senate Approves Budget and Tax Plan Wi.....
* Day after Senate budget vote, GOP tries to push.....
* Day After Senate Budget Vote, GOP Tries To Push.....
* Governor Bruce Rauner Reflects on Honor Flight .....


* Chicago officials seek requests to overhaul Midway parking
* Airlines have rules about taking photos, video on planes
* Indianapolis high school football star dies from shooting
* $100M gift to create University of Chicago health institute
* EXCHANGE: Company looks to put Peoria on the textile map
* Man accused of stealing $10 million in mortgage scheme
* Chicago education officials considering borrowing plans
* Day after Senate budget vote, GOP tries to push Rauner plan
* $100M gift to create University of Chicago health institute
* After England bombing, Chicago reminds people to be alert

* House Democrats propose college grant program
* Senate Dems approve $5.4B tax increase; budget fight continues
* Budget showdown: Senate Dems approve $5.4B tax increase
* Budget showdown: Senate Dems approve $5B tax increase
* Red-light cameras rake in millions for Chicago suburbs
* Budget showdown: House Dems call on Rauner to negotiate
* Budget showdown: House Democrats call on Rauner to negotiate
* Illinois Senate plans to vote on budget today
* Museums team up for reflection on former Gov. James Thompson
* Workers' comp changes could face Illinois Senate vote

* DeVry parent changes name
* Health insurers stiffed by budgetless Illinois take plea to federal court
* Top Chicago investment bankers exit
* Duchossois family donates $100 million for new U of C wellness institute
* Next month's electricity price hike is just the start


* Masked man in orange construction suit tries to rob South Side bank
* Serena Williams accepts a new challenge – in Silicon Valley
* 60-year-old woman charged with prostitution at Lake Villa spa
* Same-sex couple says Southwest discriminated against them
* Parent company of DeVry University changing its name
* United CEO likely to face investor questions about dragging
* More arrests in Manchester bombing; London tourist sites protected
* Round Lake Beach man hits $650K lottery jackpot
* 72-year-old man hit during attempted carjacking in Gage Park
* Rock bass big enough for Illinois record: Reasons why not worth seeing


* All aboard: Joliet Rocket steamin' into town
* Cheap out: Five fun things to do for free
* Quigley says Russia probe is 'in its infancy'
* Victims of Manchester concert bombing: Who they were
* Trump to pope: 'Thank you, I won't forget what you said'
* Cubs' David Ross said he's 'in' if there's a 'Magic Mike' sequel
* Prosecutors: Hinsdale defendant used GPS, bought ammo before man's slaying
* Man allegedly tossed poodles from Oak Lawn garage after claiming them as his on Facebook
* Man, 69, fights off carjackers on Southwest Side, stabbing one of them
* 'The Voice' finale: The unusual way that winner Chris Blue made show history


» How Would Trump’s Budget Affect Illinois?
» Illinois Democrats Pass Budget Proposal in Senate
» Illinois Senate Approves Tax Hike, $37B Budget Plan
» Chicago Teachers Give Schools Chief No Confidence Vote
» Palatine Transgender Student To Graduate, But Locker Room Debate Continues
» Unusual Suspects: Who Supports Stricter Punishment For Illinois’ Repeat Gun Offenders
» Springfield Developer, Lobbyist Pitch Downtown Casino
» Cook County Board President To Seek Third Term Next Year
» 2 More Leaks Found Along Dakota Access Pipeline
» Springfield Casino? A Businessman Likes The Odds


* Sounding the Alarm: Unacceptable
* House Democrats propose college grant program
* Senate Dems approve $5.4B tax increase; budget fight continues
* E.J. Dionne: Can the pope save Trump?
* Byron York: At this rate, it won't matter if Trump colluded with Russia
* Guest Column: Innovation key to improved public works infrastructure
* Catherine Rampell: To see how Trumpcare would work, look to Iowa
* Michael Gerson: Trump's house of betrayal
* Budget showdown: Senate Dems approve $5.4B tax increase
* Budget showdown: Senate Dems approve $5B tax increase


* Midwest Members Credit Union announces $1,000 scholarship winner
* Car seat safety tips: How to choose the right seat
* Alton’s Beall Mansion recognized by TripAdvisor for excellence
* Graco recalls 25,494 car seats
* NOW: Open Line with Jim Turpin
* Police confiscate drugs, handgun after search of East Alton home
* Floodgates going up Friday in Clinton
* What’s the best thing on every Main Street in the metro-east?
* Mahomet man injured in I-74 crash
* State series split ends girls lacrosse season at 10-6


* Northwest suburban police blotter
* A hearty walk opens your mind, spirit to God
* Downtown gazebo named in honor of 'Mr. Barrington'
* Parent company of DeVry University changing its name
* Report: McDonald's workers rally for higher wages, close streets near HQ

* Jim Walz Will Challenge Randy Hultgren for...
* PHOTOS: Protesters stage die-in at Randy H...
* Protesters continue die-in at US Rep. Rand...
* US Rep. Randy Hultgren's office the scene ...
* Second Democrat announces bid to unseat Hu...
* Sweet: Hultgren, Roskam, Kinzinger avoid b...
* Local Republicans, Democrats praise appoin...
* Common Cause seeks action to get Trump's t...
* House GOP takes first steps to undo financ...
* Teacher raised in Yorkville running agains...

* The GOP must fight against the Durbin amen......

* Inspector General Finds 'Cockroach Infesta......
* Hines VA Hospital staff working to rid kit......
* Senator Duckworth Calls For Investigation ......

* Meet Chicago's American Writers Museum
* The [Wednesday] Papers
* The impotent Illinois Education Association is a day late and a dollar short on pension theft.
* A remarkably clear explanation of Illinois public pension issues.
* Some corporations and LLCs still need to reinstate non-renewed real estate licenses
* VIDEO: April Housing Report
* JB Pritzker calls on Congress to initiate Trump impeachment proceedings
* Illinois Democrats pander to Rauner’s foolish bargain.
* Illinois considers adding more casinos to help fill budget gap
* ROTY Banquet tickets on sale until May 30


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Facebook doubles down on live video with two new features
* Security & Privacy: Do You Need Mobile Antivirus Apps?
* LG V10 scores Android 7.0 Nougat a little sooner than expected, at least in Korea
* Robotic toymaker Sphero unveils Ultimate Lightning McQueen — a chatty, smartphone-controlled car
* Deal: 1TB of Zoolz Dual Cloud Storage is just $29.99 for life
* Apple Said to Aim for Trial Production of Micro-LED Displays by End of 2017
* T-Mobile Will Pay Off Your iPhone If You Switch From Verizon

* Quintana looks to avoid another no-decision
* Renteria uses NL maneuvers to guide club
* Trio of HRs not enough as White Sox fall in desert
* Keeping it 100: Abreu hits milestone homer
* Covey exits start in 3rd with oblique soreness
* Trio of HRs not enough as White Sox fall in desert
* Quintana looks to avoid another no-decision


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

Archives
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
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




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