* From the Illinois Policy Institute’s news service…
The entirety of the $5 billion in tax increases the legislature imposed on Illinoisans will be eaten up by this year’s pension payment, and that’s still not enough to address the growing liability.
Lawmakers overrode Gov. Bruce Rauner’s veto of a $36 billion budget July 6, enacting it into law. Under the newly enacted budget, the state will spend around $7 billion for public sector pension funds. […]
State Rep. Jeanne Ives, R-Wheaton, said the same thing happened with the 2011 temporary income tax hike, where the increase went to pay off growing pension obligations.
Illinois got itself into a big hole over the years by failing to make its pension payments, keeping state taxes relatively low while still expanding programs. You simply can’t do that forever. Eventually, you gotta pay the tab.