* I’ll be updating this as we go along. The first one I’ve received is from Ty Fahner…
“There are no winners today. If there’s any good news, it’s that Chicago and Illinois are resilient, and we’ve responded to great challenges before. The Civic Committee stands ready to work with Governor Rauner and the General Assembly to craft a bipartisan solution to rescue the state from financial collapse and restore Illinois as a compassionate and competitive state.”
Ty Fahner
President
Civic Committee of The Commercial Club of Chicago
* Speaker Madigan’s spokesman said his boss will “take it under review” and continue to work on the issue, which he said was of vital importance to the state’s future.
* Senate President John Cullerton…
“From the beginning of our pension reform debates, I expressed concern about the constitutionality of the plan that we ultimately advanced as a test case for the court. Today, the Illinois Supreme Court declared that regardless of political considerations or fiscal circumstances, state leaders cannot renege on pension obligations. This ruling is a victory for retirees, public employees and everyone who respects the plain language of our Constitution.
That victory, however, should be balanced against the grave financial realities we will continue to face without true reforms. If there are to be any lasting savings in pension reform, we must face this reality within the confines of the Pension Clause. I stand ready to work with all parties to advance a real solution that adheres to the Illinois Constitution.”
* From the twitters…
* State Rep. Elaine Nekritz…
“Our goal from the beginning of our work on pension reform has been to strike a very careful, very important balance between protecting the hard-earned investments of state workers and retirees and the equally important investments of all taxpayers in education, human and social services, health care and other vital state priorities. In its ruling today, the Supreme Court struck down not only the law but the core of that balance. Now our already dire pension problem will get that much worse and our options in striking that balance are limited. Our path forward from here is now much more difficult, and every direction will be more painful than the balance we struck in Senate Bill 1.”
* Illinois Policy Institute…
Today the Illinois Supreme Court struck down Senate Bill 1, the pension reform law enacted in 2013 by former Gov. Pat Quinn. Illinois Policy Institute CEO John Tillman released the following statement on the state Supreme Court’s ruling:
“Illinois’ political elite have devised a pension scheme that is excessive, bloated, corrupted and was never affordable for Illinois taxpayers. While Senate Bill 1 did not solve the pension crisis, the legislation at least took a first step toward achieving parity between government workers who receive pensions, and the taxpayers who fund them.
“But with today’s ruling, the state’s high court says that state government’s No. 1 financial responsibility is paying the retirement of people who no longer work for state government. Pension costs are first in line, ahead of funding for public safety, education, helping the poor and disadvantaged, and all core services provided by state government.
“The court’s ruling suggested that raising taxes is a way to pay for pensions. Raising taxes will not fix a broken system. The pension system is beyond repair, and there will never be enough money to fund it. Case in point: The 2011 tax increase. That tax increase generated more than $31 billion, and 90 cents out of every $1 collected from the tax increase went to pensions. Yet it still was not enough to make the pension system whole.
“Ultimately, the only way Illinois can break the cycle of siphoning more and more tax dollars and sacrificing more and more state programs to pay for pensions is to follow the lead of the private sector and move new employees to a 401(k)-style system. In the short term, it will not be surprising to see calls to change the state constitution or allow Illinois to file for bankruptcy.”
* We Are One Illinois union coalition…
Illinois AFL-CIO president Michael T. Carrigan issued the following statement on behalf of the We Are One Illinois coalition of unions that represent public employees and retirees:
“We are thankful that the Supreme Court has unanimously upheld the will of the people, overturned this unfair and unconstitutional law, and protected the hard-earned life savings of teachers, police, fire fighters, nurses, caregivers and other public service workers and retirees.
“The Court’s ruling confirms that the Illinois Constitution ensures against the government’s unilateral diminishment or impairment of public pensions.
“Because most public employees aren’t eligible for Social Security, their modest pension—just $32,000 a year on average—is the primary source of retirement income for hundreds of thousands of Illinois families. While workers always paid their share, politicians caused the debt by failing to make adequate contributions to the pension funds.
“Public service workers are helpers and problem solvers by trade. With the Supreme Court’s unanimous ruling, we urge lawmakers to join us in developing a fair and constitutional solution to pension funding, and we remain ready to work with anyone of good faith to do so.”
* Senate Republican Leader Christine Radogno…
“Illinois has the nation’s worst-funded pension system and the biggest pension deficit of any state. Nearly a quarter of our budget goes directly to pensions or to pay off past loans used to cover short-term pension costs.
I am committed to working with everyone to find a solution that adheres to the Constitution. We must to work together in bipartisan cooperation with Governor Rauner – who has demonstrated his commitment to tackle the most difficult problems facing Illinois.”
* Sen. Gary Forby…
“I made a promise to the thousands of union members in my district that I would not support a pension reform plan that punishes working families,” said Senator Forby, Chairman of the Senate’s Labor Committee. “Now is the time to give labor a seat at the negotiating table so we can strike a fair balance between finding financial solvency and honoring our promises to workers.”
* Sen. Daniel Biss…
“Today the Illinois Supreme Court ruled that Senate Bill 1 is unconstitutional. While this is not the opinion the authors of SB1 had hoped for, we must respect the Court and strictly adhere to this ruling. The Pension Clause of the Illinois Constitution provides important protections, and today’s ruling proves the depth of those protections.
The state of Illinois and many of its local governments are still facing serious fiscal problems, including significant pension debt. I look forward to working with all parties to find ways to ensure that adequate resources are available to properly fund our pension systems, in the context of a responsible budget that funds crucial services. Our public employees, our government bodies and our taxpayers deserve nothing less.”
* Twitters…
* House Republican Leader Jim Durkin…
“I respect the Illinois Supreme Court, but disagree with the ruling. I am prepared to continue working on meaningful legislative reforms to save our public pension systems.”
* AP…
“We are delighted that today’s Supreme Court opinion recognizes and ensures the pension rights of State employees, as required by our Constitution. And we trust that the General Assembly will address the State’s fiscal difficulties, in a manner consistent with the Constitution, and in a way that is fair to all the citizens of Illinois.” — Gino DiVito, attorney who argued state employees’ legal challenge to the Illinois Supreme Court.
* Charles A. Burbridge, executive director of the Chicago Teachers’ Pension Fund…
“While CTPF members were not directly impacted by the ruling on Senate Bill 1, the Illinois Supreme Court’s landmark decision to strike down this legislation is a welcome development for our members. This ruling clearly establishes that pensions are a promise to be kept, which is important to our members since they do not receive Social Security benefits and depend on CTPF pensions for their retirement security.
“Unfortunately, our Fund has been devastated by decades of underfunding by our employer. As a result, CPS faces significant challenges as it makes up for the impact of its past decisions. We hope that this ruling helps move forward the conversation about fully funding pensions for CTPF members.”
* Sen. Kwame Raoul…
Today, the state’s highest court affirmed that, as in all matters, we are bound by the plain language of the Illinois Constitution on the question of public employee benefits. This is not surprising news, nor is it an unwelcome reminder; constitutional limits protect us all – especially in times of fiscal crisis. The Court effectively illustrated the cyclical nature of economic fortunes, noting that Illinois faced a pension funding emergency at the time our current constitution was drafted. The rule of law remains a guiding constant.
This decision is a call to go back to the negotiating table and get serious about the range of options available to us to repair the state’s finances and meet its obligations in ways consistent with the constitution, sustainable for the future and fair to all concerned.
A number of approaches remain open to us, but the Court has made clear that the constitution’s prohibition on unilateral modifications applies to the lifetime of the contract made at the time of employment, not merely to benefits already accrued.
We return to our task aided by the insights of the Court, fully aware of our constitutional responsibilities as well as the severity of our fiscal condition, in partnership with all affected and open to new ideas.
* Linda Brookhart, Executive Director of the State Universities Annuitants Association…
”SURS member Henry Green introduced the Pension Clause to the 1970 Constitution to ‘guarantee [pension] rights.’ We are grateful that the Supreme Court recognized and affirmed those Constitutional protections.
“This is a victory for retired and current members of the State Universities Retirement System and the other public employee retirement systems. But, it is more than that. It is a victory for anyone to whom the State of Illinois owes a debt. As the Court noted in paragraph 85 ‘today it is nullification of the right to retirement benefits. Tomorrow it could be a renunciation of the duty to repay State obligations.’ Indeed, in oral argument we specifically noted that Illinois’ $50 Billion general revenue bond market could be put in jeopardy. And the court took it a step further ‘If financial markets were rational, this prospect would not buoy our economy, it would ruin it.’
“As the court noted, the underfunding of pension benefits has a long history that goes back well before the pension protection clause was adopted. The clause was intended to apply pressure on the legislature to meet its financial obligations to fund retirement benefits for employees who have spent their lives working for the state. That the State insisted on pursuing its policy of under-funding in the 44 years since the clause was adopted cannot now serve as an excuse for the State to renege on its obligation to pay pensions.
“Our attorney stated in oral argument that this was akin to the Lizzie Borden defense – ‘I killed my parents. Have mercy on me. I’m an orphan,’ a defense which every grade school child recognizes as preposterous. We are grateful that the Supreme Court did not buy into this defense. As a result of this opinion, employees retiring from the State of Illinois should have confidence in their pensions. And our members, members of the State Universities Retirement System can take comfort in knowing that their service to the students of this State did not deprive them of their retirement benefits.
“At SUAA we are committed to protecting the rights of retired and current public university and community college employees and will continue to do so.”
* Law Bulletin…
Rep. Elaine Nekritz, a Northbrook Democrat and one of the lead pension-law negotiators in the House, said that those other provisions were an attempt to strike a balance between employee benefits and the overall health of the state.
But the court’s action negates that balance, she said.
Nekritz also pointed to a section of the opinion that said “[a]dherence to constitutional requirements often requires significant sacrifice, but our survival as a society depends on it,” calling it an off-point summary of the circumstances.
“The goal of Senate Bill 1 was to put Illinois on more sound fiscal footing so that we could survive as a society,” she said. “So I found it odd that they made that statement, when what they’re really doing is making it more difficult to fund education, more difficult to fund competing demands … That one hit me pretty hard.”
- Oswego Willy - Friday, May 8, 15 @ 11:08 am:
===”There are no winners today…”===
Only losers who don’t understand the Constitution.
Dope.
- Roamin' Numeral - Friday, May 8, 15 @ 11:11 am:
==to craft a bipartisan solution to rescue the state from financial collapse==
Might be time to discuss new revenue.
- Norseman - Friday, May 8, 15 @ 11:12 am:
The rule of law wins. Our federal and state constitutions form the underpinning of our government and our rights as citizens. Today, the SC reaffirmed that it means what is says on the paper.
- Sangamo Sam - Friday, May 8, 15 @ 11:12 am:
===There are no winners today===
There apparently are sore losers however.
- Juvenal - Friday, May 8, 15 @ 11:13 am:
What Willy said.
Think of all of the time the Civic Committee and Chicago Tribune editorial board have wasted chasing unicorns.
- Nonplussed - Friday, May 8, 15 @ 11:16 am:
State employees who paid into the pension system probably think they are winners today.
- Carhartt Representative - Friday, May 8, 15 @ 11:17 am:
There are winners today. The hard working people of the state of Illinois who don’t get their pensions stolen qualify.
- Not Rich - Friday, May 8, 15 @ 11:17 am:
Over/Under: the number of times Rauner calls the Supremes CORRUPT?? I say at least 12 times by Tuesday session..
- downstate commissioner - Friday, May 8, 15 @ 11:19 am:
I thought that Mr. Fahner was smarter than that. OW said it all with his last word
- Big Joe - Friday, May 8, 15 @ 11:20 am:
Willy hit it on the head! The losers are still losers for trying to ignore the provisions of the IL constitution, that same constitution that they swore to uphold when they took office.
- Nonplussed - Friday, May 8, 15 @ 11:22 am:
Another winner is Cullerton, who is probably crafting an “I told you so” statement right about now.
- Demoralized - Friday, May 8, 15 @ 11:23 am:
==There are no winners today.==
Thanks for confirming that your organization is about on par with The Onion.
- Anonymous - Friday, May 8, 15 @ 11:25 am:
As a state employee, I sure feel like a winner. Feel free to bump the income tax back up and start taxing retirement income over $50,000 to pay for it.
- PublicServant - Friday, May 8, 15 @ 11:25 am:
@Demorilized Don’t insult The Onion.
- Norseman - Friday, May 8, 15 @ 11:25 am:
Cullerton has to be applauded in allowing his legal counsel to write and publish his excellent treatise on the subject. The President could have kept it as client/staff product. That was transparency.
- truthteller - Friday, May 8, 15 @ 11:26 am:
SB1 was bipartisan. How about a fair and constitutional solution instead?
Do you think Fahner, the Trib editors,and their allies will listen to the unions who did negotiate a plan with Cullerton this time around? The unions called it right
- DuPage - Friday, May 8, 15 @ 11:28 am:
The Tier 1 workers and retirees have won what was already earned and owed to them. The state had already won the benefit of good employees staying on long-term because of the pension.
- Jorge - Friday, May 8, 15 @ 11:28 am:
That’s hilarious considering the source.
- Wordslinger - Friday, May 8, 15 @ 11:28 am:
– There are no winners today.–
Speak for yourself, loser.
The Constitution, rule of law and opponents of thieving plutocratic bullies were big-time winners.
Now go home and get your shine box!
- Archiesmom - Friday, May 8, 15 @ 11:29 am:
Amen, Norseman. Eric Madiar was spot on.
- Langhorne - Friday, May 8, 15 @ 11:31 am:
Rauner staff: “gov, you cant call them corrupt. It doesnt help. Okay okay, twice. Please, no more than that.”
- Archiesmom - Friday, May 8, 15 @ 11:31 am:
I’ll give you another winner - Toi Hutchinson. See pages 13-15 of the opinion.
- Chicago Cynic - Friday, May 8, 15 @ 11:31 am:
The earthquake we felt this morning was not the New Madrid fault. It was this. Holy crap.
- James Gordon - Friday, May 8, 15 @ 11:31 am:
Hallelujah! Who would have guessed that despite the bloviating and parsing of the 1970 IL Constitution’s “Pension Clause” in its entirety, by its separate clauses and even by its individual words from lawyers, governmental officials and business leaders of all stripe the IL Supreme Court has declared that the clause means exactly what the everyday meaning clearly states? Its a win for those who believe in, and have spent entire careers depending upon, the enduring sanctity of the law versus the political expediency of the moment.
- 47th Ward - Friday, May 8, 15 @ 11:32 am:
===The Constitution, rule of law and opponents of thieving plutocratic bullies were big-time winners.===
Damn straight.
Eric Madiar is a winner too. He had the guts to stick to his opinion under relentless assault from some of the biggest of legal and civic big shots in Illinois. And he didn’t wince, hedge or blink.
- Chicago Cynic - Friday, May 8, 15 @ 11:33 am:
Obviously it was expected - easiest case ever - but we’re starting over and the gov can’t propose his pension ideas without being laughed out of town.
- Wensicia - Friday, May 8, 15 @ 11:36 am:
I’ll bet the Rauner response will be to double down on the unions.
- Rich Miller - Friday, May 8, 15 @ 11:37 am:
Wensicia, that’s Rauner’s response to pretty much everything. lol
- Anonymous - Friday, May 8, 15 @ 11:39 am:
I suppose they could call for an amendment to constitution. That is expensive and probably would not survive a vote in Illinois. And even if it did pass, would it be retroactive? I am thinking not.
- Jimmy CrackCorn - Friday, May 8, 15 @ 11:40 am:
==The Civic Committee stands ready to work with Governor Rauner and the General Assembly to craft a bipartisan solution to rescue the state from financial collapse and restore Illinois as a compassionate and competitive state.==
They really think they are a co-equal branch of government, having been duly appointed by the State’s plutocrats. Also, we are actually incorporating Rauner’s talking points (Compassionate and Competitive) right into our press releases? No coordination there…
- Marian - Friday, May 8, 15 @ 11:40 am:
Sorry. That last comment was mine. Did mean to be anonymous.
- MrJM - Friday, May 8, 15 @ 11:43 am:
“Buh… buh… but TURNAROUND AGENDA!!1!”
– MrJM
- Snucka - Friday, May 8, 15 @ 11:43 am:
This gives Rauner cover to move the income tax back to 5%, where it should be.
- Buzzie - Friday, May 8, 15 @ 11:43 am:
So with today’s decision who is having the worse day: Rauner, Emanuel, the legislature or the Chicago Tribune? I expect there will now be a renewed call to tax pensions.
- Cassiopeia - Friday, May 8, 15 @ 11:45 am:
This almost guarantees that retirement income will be taxed. The money has to come from somewhere.
- OneMan - Friday, May 8, 15 @ 11:45 am:
You couldn’t make it retroactive…
As for surviving a vote in Illinois, don’t forget how hard the unions fought the last time a constitutional convention came up, they fought it to prevent just such a thing being an option.
Imagine the attack ads showing the folks who have 3 state pensions and then showing program cuts…
It could pass.
- ddy - Friday, May 8, 15 @ 11:46 am:
Demoralized, the Onion is Pulitzer worthy compared to those goofs
- 47th Ward - Friday, May 8, 15 @ 11:49 am:
===It could pass.===
Sure it could. But even if it did, we’d still be on the hook for every penny up until the effective date of the amendment, so what good what it actually do anyone to change the constitution?
- Arsenal - Friday, May 8, 15 @ 11:49 am:
I’m not saying an Amendment is impossible, but I doubt it.
1) How could you possibly make it retroactive?
2) The Dems would fight it with every tool they have, both on the merits and because they wouldn’t want every union dollar to go to fighting it.
3) And yeah, every union dollar would go to fighting it, which would mean…
4) It could only prevail if Rauner threw his money in, too (and even then, maybe not) and Republicans have all but already spent that money (although, as I always say, there’s plenty more where that came from).
- Been There - Friday, May 8, 15 @ 11:51 am:
I’ve always wondered why Madigan pushed this bill. I understood Cullerton grudgingly going along but at least he put out his version. Was Madigan just making everyone just learn a lesson? Much like what he is doing now to Rauner with votes on his turnaround proposals? Maybe he was just buying time. I can’t believe he thought for sure the court would uphold this bill. But he made a lot of his members take a bad vote. But, who knows.
- Soccermom - Friday, May 8, 15 @ 11:53 am:
Madiar’s a winner, Fahner is a loser.
It’s a good day.
- Wordslinger - Friday, May 8, 15 @ 11:53 am:
47, I should add to the “losers” list the willfully ignorant and misanthropic media stooges of the thieving plutocratic bullies.
The likes of Big Brain Bruce, Statehouse
Chick and their ilk are the hired help. They don’t actually get to roll with the plutocrats.
- Soccermom - Friday, May 8, 15 @ 11:54 am:
Do you think Eric Madiar will be attending?
http://www.civicfed.org/civic-federation/events/2015awardsluncheon
- walker - Friday, May 8, 15 @ 11:55 am:
Thank God Governor Pat Quinn made all required pension payments in full, and did not propose a budget with over $2Billion in savings from “pension reform!”
- Secret Square - Friday, May 8, 15 @ 12:01 pm:
So, if you’re a state employee, your pension benefits can’t be touched. But everything else about your job (current pay, health insurance, etc.) CAN be, including whether or not you even have one in the future. How much you wanna bet it’s going to be open season on the latter category now?
- Jake From Elwood - Friday, May 8, 15 @ 12:02 pm:
Just think about how much time and money was wasted on this SB1. Sen. Cullerton called this right from the start. Madigan and Quinn just wanted to get “pension reform” signed into law for the optics. They knew what Cullerton knew but thrust us all down this awful unconstitutional rathole. But by all means let’s blame Rauner for this. #RevisionistHistory
- Wordslinger - Friday, May 8, 15 @ 12:05 pm:
BT, I believe Madigan pushed the bill and Quinn signed it in an attempt to get the issue off the table before the election.
I find it very hard to believe that anyone thought it was truly Constitutional given precedent and the clear language of the Constitution.
Read the decision; no bill is going to get the state off the hook for paying back the money owed.
- Skeptic - Friday, May 8, 15 @ 12:10 pm:
“our options in striking that balance are limited.” Um, we had one that afaik was working up until January 1, 2015.
- Keyser Soze - Friday, May 8, 15 @ 12:14 pm:
Hello Detroit.
- Madison - Friday, May 8, 15 @ 12:16 pm:
Justice stood tall today. We finally found a branch of government that couldn’t be bought. Its a great day for the people of the State of Illinois. As citizens everybody won, whether a pension system member or not is pretty irrelevant. This victory is about justice for all, and a group of bona-fide Americans elected to uphold justice and actually doing it.
Congratulations Illinois.
- Oswego Willy - Friday, May 8, 15 @ 12:16 pm:
Almost 50 comments, then we get “Detroit”?
States can’t go bankrupt.
- Demoralized - Friday, May 8, 15 @ 12:16 pm:
==Hello Detroit.==
And we have our first winner!!! I was waiting for the dopey “Detroit” comment to pop up.
- forwhatitsworth - Friday, May 8, 15 @ 12:16 pm:
=== Ty Fahner - “There are no winners today.” ===
What about the people of Illinois and the rule of law?
- Mason born - Friday, May 8, 15 @ 12:16 pm:
Correct me if i’m wrong but Cullerton’s “compromise” bill would have been rejected the same as SB1. Since he was offering to allow you to keep an earned benefit, Healthcare, in exchange for diminishing your other earned benefits.
He may look like a genius now but it’d be him in the QOD had his bill passed.
- Corporate Thug - Friday, May 8, 15 @ 12:17 pm:
Lol! Tillman is so salty…and I love it.
- Aldyth - Friday, May 8, 15 @ 12:17 pm:
There’s a whole lot of “I told you so’s” being handed out, right about now. Including from me.
- Arsenal - Friday, May 8, 15 @ 12:18 pm:
The only think Detroit and Illinois have in common is red hockey sweaters.
- Federalist - Friday, May 8, 15 @ 12:18 pm:
- Anonymous - Friday, May 8, 15 @ 11:25 am:
”
As a state employee, I sure feel like a winner. Feel free to bump the income tax back up and start taxing retirement income over $50,000 to pay for it.”
- Cassiopeia - Friday, May 8, 15 @ 11:45 am:
“This almost guarantees that retirement income will be taxed. The money has to come from somewhere.”
That’s the CW trap that the GA wants you to fal into.
Instead look at over $8 billion in other ‘tax expenditures’ the state has on its books.
why does no one question that. Everybody is brainwashed, I guess.
Remove all exemptions and lower the tax rate back to 3%.
P.S. @Anonymous. How much do you presently pay instate income taxes? And how would your limit afect you if fall pension/SS income were taxed?
- Demoralized - Friday, May 8, 15 @ 12:21 pm:
The IPI is pathetic. And that’s the nicest thing I can say about them.
- Salty - Friday, May 8, 15 @ 12:22 pm:
Wouldn’t you think that the leaders would have had statements pretty much ready to go? This was expected…
- Cassandra - Friday, May 8, 15 @ 12:24 pm:
The language was always clear, as legislative leaders and pension reform guru Nekritz well knew-they can read, right. So did Lisa Madigan.
So did Governor Quinn. This bill was the most cynical of political exercises and again raises the question of whether either of Illinois’ political parties is up to the job of governing.
- Apocalypse Now - Friday, May 8, 15 @ 12:24 pm:
Tax retirement income to help fix the revenue problem, and then watch people start to leave the state.
- facts are stubborn things - Friday, May 8, 15 @ 12:26 pm:
Everyone wins when the rule of law is upheld and the sanctity of the constitution is upheld. Without the above, it would be a certain and slippery slope to the bottom. The states economy wins, as the ISC points out, because the sacred underpinings of our state up protected that all business and prosperity are built.
- Snucka - Friday, May 8, 15 @ 12:28 pm:
We’ve heard from IPI. Now, what is the position of Innovation Illinois, the competing think tank in the state?
- Juvenal - Friday, May 8, 15 @ 12:28 pm:
Correct me if I’m wrong, Rep. Nekritz, but I believe that “careful, very important balance” was solely on the backs of the public servants who faithfully made their pension payments every week.
And it was never a choice between autistic kids and the Constitution.
It is a choice between autistic kids, the Constitution, and the wealthiest Illinoisans who just enjoyed the lion’s share of the income tax rollback.
You get to pick two-out-of-three.
- Wordslinger - Friday, May 8, 15 @ 12:29 pm:
Snucka, you’re correct in that this ruling is a face-saving out for Rauner on revenue if he is wise enough to recognize it.
- facts are stubborn things - Friday, May 8, 15 @ 12:31 pm:
Eric Madiar was correct! Ralph Martire is too.
- Gary from Chicagoland - Friday, May 8, 15 @ 12:35 pm:
Madigan plays chess as we play checkers. Perhaps the pension reform bill was a diversion. In today’s ruling, it was the IL SC that states our pension problem is a revenue problem, therefore pay your pension bill. Madigan can now vote to raise our taxes and say “It’s not my fault” then point to today’s IL SC ruling, then get his people reelected. How ironic since he was Springfield leader that short changed the pension bills in the first place to spend on other projects that generated reelection votes in the past.
- GA Watcher - Friday, May 8, 15 @ 12:38 pm:
Time to dust off Senate President Cullerton’s Amendment #3 to SB 1.
- Wordslinger - Friday, May 8, 15 @ 12:41 pm:
John Tillman just oozes sincerity in his concern for the “poor and disadvantaged,” doesn’t he?
Well, maybe not that, but that dude oozes some kind of funk. You feel like a shower just reading his words.
- Arizona Bob - Friday, May 8, 15 @ 12:43 pm:
It seems about the only solution is to “privatize” just about everyone in the public pension systems for services which can be privatized, or “cost shift” the pension obligations to schools and municipalities which choose not to privatize services. Springfield will have to pass the legislation to let this happen. Public education will need to make do with less, perhaps cutting 18% of the average cost per student to bring Illinois in line with the national average. Our state universities will have to make their focus on educating students rather than funding research that is not funded externally. That bloat of clerical and administrative staff will need to be cut to the bone, and Springfield will need to spearhead the kind of low value, high cost excesses that need to be cut. Capital needs for safety will still need to be met, but those ribbon cutting capital “wants” need to go until this is under control. Some revenue will need to be raised, primarily by bringing services into the tax system, but the increased costs will need to simultaneously offset by cost savings for business in workman’s comp and tort reform, if the GA has the guts to serve the state instead of the Trial Lawyers association. It’ll be a chaotic mess for awhile, but if this crisis changes the culture of politics in Illinois, the opportunity to make this state work are incredible. The biggest question is whether the voters of Illinois will elect people with the good of the state as their primary concern, and if there are enough good people willing to stand for election to get this done. Is this possible in Illinois? It would be in most states outside of New York, Cali, Jersey, Vermont, Washington and Connecticut.
- Cook County Commoner - Friday, May 8, 15 @ 12:43 pm:
The question now becomes what will the bond rating agencies do. And what will the taxpayer-voters do when the state and local taxes go up to pay not only the state pensions, but the local pensions which may be in trouble.
- X-prof - Friday, May 8, 15 @ 12:44 pm:
Wordslinger - I doubt that Rauner is wise enough, but I’d love to be wrong about that.
- Arizona Bob - Friday, May 8, 15 @ 12:47 pm:
Was it Sidley Austin and AG Madigan that rendered the opinion that this bill was constitutional before it passed? If so, were they lying or do they just not know the law?
- Anonymous - Friday, May 8, 15 @ 12:49 pm:
“Now is the time to give labor a seat at the negotiating table so we can strike a fair balance between finding financial solvency and honoring our promises to workers.”
Many public workers are not in unions. Unions can’t negotiate pensions anyway, and after this ruling why would they?
- Juvenal - Friday, May 8, 15 @ 12:52 pm:
GA Watcher:
Forget about SB 1.
The unions just won complete and total victory upholding their pension rights. The union leaders can no longer negotiate those away at the bargaining table or in legislative committee.
- Bogey Golfer - Friday, May 8, 15 @ 12:53 pm:
==Tax retirement income to help fix the revenue problem, and then watch people start to leave the state.==
It may be a reason public sector employees stay in Illinois, but it is not the only reason for most. If the average pension is $32K, that’s around a $1200 in taxes.
- State Worker - Friday, May 8, 15 @ 12:53 pm:
Funny Rep Nekritz never mentioned her being part of the problem with all those pension raid votes of she took. I’ll gladly pay more for my pension but, more importantly, its time to the state to pay up for all its past mistakes.
- AC - Friday, May 8, 15 @ 12:55 pm:
Glad to see the Illinois Policy Institute agrees that 90% of the tax increase went toward debt owed by the state. Guess the tax increase did work.
- olddog - Friday, May 8, 15 @ 12:59 pm:
== Was it Sidley Austin and AG Madigan that rendered the opinion that this bill was constitutional before it passed? If so, were they lying or do they just not know the law? ==
Neither. They were advocating a position before the case was adjudicated.
- Juvenal - Friday, May 8, 15 @ 1:05 pm:
@Arizona Bob:
Yeah, or we could follow the lead of Minnesota and tax the rich, instead of balancing the state budget on the backs of drunk driving victims.
Let’s see: you moved from Illinois to Arizona, a state with not only a graduated income tax but the highest marginal tax rates in the country, with the top rate paid by individuals making more than $150,000.
Madigna’s Millionaire’s Tax is a trifle by comparison, but you think the solution in Illinois ought to be cutting education spending?
I say if a graduated income tax is good enough for Arizona, it’s good enough for Illinois.
- Joe M - Friday, May 8, 15 @ 1:27 pm:
==I expect there will now be a renewed call to tax pensions. ==
Fine and good, but Social Security, and other retirement plans would also have to be taxed. Can’t just signal out pensions.
- forwhatitsworth - Friday, May 8, 15 @ 1:29 pm:
=== Rep Nekritz on pension ruling “My overwhelming emotional reaction is I feel very sad for the future of Illinois. I feel very sad about that”===
Why would Elaine not feel good about the rule of law still having a place in the future of Illinois?
- Skeptic - Friday, May 8, 15 @ 1:33 pm:
It seems about the only solution is to “privatize”
Great. Government for profit. So when a VA home is losing money, all we need to do is close it, just like they do in business. Is that what you want, Bob? “Privatize education” Bob, University of Phoenix is in your state. How’s that working out for them?
- Mouthy - Friday, May 8, 15 @ 1:35 pm:
“* Sen. Gary Forby…
“I made a promise to the thousands of union members in my district that I would not support a pension reform plan that punishes working families,” said Senator Forby, Chairman of the Senate’s Labor Committee. “Now is the time to give labor a seat at the negotiating table so we can strike a fair balance between finding financial solvency and honoring our promises to workers.””
yeah, right. Fund the pensions, you have no choice now…
- KirkCJenkins - Friday, May 8, 15 @ 1:38 pm:
I agree with several of the commenters above. Constitutions are not suggestions.
- Archiesmom - Friday, May 8, 15 @ 1:42 pm:
And a “well done” to Gino DiVito as well.
- Juvenal - Friday, May 8, 15 @ 1:42 pm:
Jim Durkin with the “strenuously object.”
- Snucka - Friday, May 8, 15 @ 1:45 pm:
Wait a minute… we still need to figure out why Pat Quinn was put on this Earth.
- W.S. Wolcott - Friday, May 8, 15 @ 1:47 pm:
Look, it’s friday, and I’m not one to gloat….and I know Phish and Soul Train might not seem compatible…..
But here’s how my co-workers and I will be walking out at shift change. Yep. Boom.
https://youtu.be/WGQKCSKwlM0
- Wensicia - Friday, May 8, 15 @ 2:04 pm:
The Tribune editorial board response:
http://www.chicagotribune.com/news/opinion/editorials/ct-illinois-pension-law-unconstitutional-edit-20150508-story.html
- Skeptical - Friday, May 8, 15 @ 2:09 pm:
To the IPI re: “Illinois’ political elite have devised a pension scheme that is excessive, bloated, corrupted and was never affordable for Illinois taxpayers.”
Take this up with the “elite”, not the folks who agreed contractually to work for the state in return for the benefits promised. Stop the yellow journalism and do some real work for a change.
- Arizona Bob - Friday, May 8, 15 @ 2:10 pm:
Juvenal, I don’t know where you get your information, but Arizona’s HIGHEST marginal rate is only 4.54% in 2015, amongst the lowest in graduated tax states. It’s less than half the top rate in California, and less than the FLAT rate in Illinois before the drop this year. I believe that Jersey, Wisconsin, New York and most of the Northeast. The rate kicks in at $300K for a couple. For a $100K couple income the marginal rate is only 4.24%, and the lowest rate is 2.59%.we don’t have exemptions or a lot of the credits they give away to special interests (like education and real estate taxes) as in Illinois, though. The average family income tax burden only comes to about $871. Not bad.
When you couple that with the fact that I only pay about $1700 per year for a home that has a true value of about $365K in a community next to Scottsdale with come great schools, that income bite isn’t so bad. My house in Southwest Cook would be taxed at about $7300 for an equivalent home in a district with similar schools and inferior municipal services.
The problem is that Illinois governments are FAR too greedy to leave brackets at the level of Arizona. They’d gouge those they thought they could gouge until all the people driving economic growth leave, as is the case today.
Ya gotta know that’s true….
If Illinois would live within that bracketing system, I think I could live with. Government
- W.S. Wolcott - Friday, May 8, 15 @ 2:16 pm:
@Arizona Bob…
“Inferior municipal services”.
CPD would like to have “a word” with you…
- No Raise - Friday, May 8, 15 @ 2:17 pm:
Remember, The Attorney General’s Office must have known this law was unconstitutional, yet they defended it vigorously. Meanwhile, the same office refused to defend the State’s defense of marriage law because the office believed it was unconstitutional. Talk about political pandering…..
- Arizona Bob - Friday, May 8, 15 @ 2:18 pm:
@skeptic
“So when a VA home is losing money, all we need to do is close it, just like they do in business”
Nope. You hire a firm that won’t hire corked, lazy slugs for medical care like the VA does. Care costs more in the VA system than most private systems because of low productivity. For example, the last I heard VA cardiologists perform only about 40% of the number of procedures that private care heart surgeons do, which is one of the reasons the wait list are so long as they are in virtually every country having socialized medicine. High cost, low quality, low pay so that you don’t attract the “best and brightest”, and most productive, doctors.
Privatizing teacher services, for example, could VASTLY improve quality of service and fairly compensate the best teachers while getting the recalcitrant senior faculty who are currently at the top of the pay scale into other lines of work.
- Arizona Bob - Friday, May 8, 15 @ 2:23 pm:
Wolcott, I was referring to the parks and municipal services in SW Cook, but regarding our friends in the CPD, I’d take my Sherriff Joe Arpaio over them any day!
I just LOVES my Sherrif Joe! He lives about two miles from me in the same town. We have no street lights (by choice), yet very few burglaries or street crime. Figure it out!
- Anonymous - Friday, May 8, 15 @ 2:26 pm:
- Keyser Soze - Friday, May 8, 15 @ 12:14 pm:
Hello Detroit.
Wrong. Aside from the fact that just throwing the overused “Detroit” straw man out there is foolish and incorrect. the courts allowed that city’s pension obligations to be reduced.
But keep saying Detroit. Everything that follows that word in your comments becomes white noise…
- Anonymous - Friday, May 8, 15 @ 2:28 pm:
I see Tillman is sticking with his “bankruptcy” historonics. You can almost see the spray of spittle , coming out of his mouth, as he dictated his diatribe to his office assistant.
- Anotherretiree - Friday, May 8, 15 @ 2:35 pm:
Health benefits are the only avenue left in which to try diminishment. The 700 million in savings expected in next years budget includes non Medicare retirees. I noticed the Supremes mentioned annuities heavily, not 100% sure they will include health benefits. If I was a judged, I would rule that you have to keep benefits in line with whatever Obammacare level plan you retire under. The ACA provides a definition that can be used as a guide (Gold,Silver,Bronze,Clay)
Lets not be so hard on AB…He also moved to a State that is short of water. If they ever build a Roman style aqueduct to him, I propose we all wiz in the Mississippi in his honor ! Its the least we can do
- Roadiepig - Friday, May 8, 15 @ 2:42 pm:
Last two anonymous were from me. iPhone dropped my signature for some reason.
- Ghost - Friday, May 8, 15 @ 2:54 pm:
.90 of every dollar of the tax increase went to oension payments… But the payment amount is an artificial construct of a statute which can be changed. I.e. The ramp up where we pay billions more then we need for current employees to make up for missed oayments in the past. We could legislate this payment way back, save billions and still get the pensions funded.
For example we could teduce the current payment to actual cost plus say 100 mil more. We could then also legislatively require that when the bonds for the pension system are paid off, the bond payment money go straight into the pensions as addtional payments. We can then desginate money to the state from a chicago casuno be used solely to fund pensions as extra payments. State makes the required contribution at a much lower amount, and designates certain revenue streams to make up the past amounts that were skipped.
- Arthur Andersen - Friday, May 8, 15 @ 3:06 pm:
I guess Brownie is still reading so we’re not gonna hear from them today. What happened to MJM’s four votes, though?
- Rich Miller - Friday, May 8, 15 @ 3:11 pm:
===so we’re not gonna hear from them today===
His react is near the top.
- Demoralized - Friday, May 8, 15 @ 4:05 pm:
==I’d take my Sherriff Joe Arpaio over them any day==
I think that tells me just about everything I need to know about you. The final piece of the puzzle . . .