Capitol Fax.com - Your Illinois News Radar » Despite Harmon letter, Pritzker has not asked feds for pension aid
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Despite Harmon letter, Pritzker has not asked feds for pension aid

Saturday, Apr 18, 2020 - Posted by Rich Miller

* New York Times

Illinois needs more than $40 billion in relief from the federal government because of the coronavirus pandemic — including $10 billion to help bail out its beleaguered pension system, according to a letter the Illinois Senate president sent to members of Congress.

The letter, sent this week by State Senator Don Harmon, also seeks a $15 billion grant to “stabilize the state’s budget,” $9.6 billion in direct aid to Illinois’s cities, $6 billion for the state’s unemployment insurance fund, and hardship money for hospitals and nursing homes, among other things.

The article is somewhat misleading on one point. The $15 billion state budget request is for parts of three fiscal years. From the letter

$15 billion in block grant funding: A flexible block grant would stabilize the state’s operating budget and allow officials here to address unique needs for the current fiscal year, FY2021 and early FY2022. Added flexibility with new federal dollars would also allow the state to assist human service providers serving as the safety net for our most vulnerable population.

* But why Harmon thought to ask for this is just beyond me

$10 billion in pension relief, directly for the state’s retirement systems: Illinois largest liabilities are its unfunded pension liability at $138 billion and other post-employment benefits liability at $54 billion. Illinois law has put the state on a path to fund the pension liability in a manner that is actuarially sound, and the state has been following the payment plan set out in that law. In a normal year the size of those payments crowds out funding for services and programs. Clearly this will not be a normal year and that crowding out effect will be exacerbated by significant revenue losses. I would ask that the federal government: 1. Provide direct cash assistance to the pension systems; or 2. Offer a low interest federal loan to aid Illinois in our efforts to restore and maintain retirement security for public sector workers, many of which are on the frontlines of this pandemic battle.

For those who might say “It never hurts to ask,” yes, it can hurt to ask.

Remember how Republican US Sen. Tom Cotton used just that sort of argument to try and kill federal aid to state and local governments last month?

Dick Durbin represents one of the most bankrupt states in America and the most bankrupt city, Chicago, in America behind those closed doors. They are demanding straight cash bailouts for states and cities that have been fiscally irresponsible for years.

There is a certain strain of wonky politicians who try to “start conversations” without first pausing to ask themselves if publicly sharing those ideas could hurt their own causes.

Illinois created this problem. It’s Illinois’ responsibility to solve it, not the federal government’s. This letter could even hurt all other states’ attempts to convince Congress and the president to back an aid package.

* I asked the governor’s office for comment about the Senate Democrats’ pension ask…

The Governor clearly outlined what he believes our federal partners can do immediately to assist the state earlier this week. We’re working with our congressional delegation, as well as Speaker Pelosi and Leader Schumer, to ensure another aid package includes funds for the state of Illinois and the flexibility to use them in our budget.

OK, but has the governor ever asked for federal help with state pensions?…

No we have not.

* There are some decent ideas in Harmon’s letter, but he’s asking for a lot. For instance

Raise FMAP to 65 percent: Thank you for taking the necessary step in the CARES Act to increase Federal Medical Assistance Percentage to 56.34 percent for the duration of the coronavirus emergency. I ask your consideration of a further increase, taking Illinois to 65 percent, which is a 3.1 percent increase over the level afforded Illinois during the Great Recession. This increase will allow Illinois to continue paying health care providers in a timely manner for the services they deliver to the Medicaid system.

* And is this ask based on actual need? Harmon’s letter doesn’t say

$6 billion in direct aid to the state’s unemployment trust fund

Another diplomatic statement from the governor’s press secretary…

Just like states around the country, Illinois is seeing an unprecedented number of unemployment claims. We’re working with our federal partners to ensure our program remains strong and we welcome any additional funding for our trust fund.

       

No Comments

Be the first to comment.

Sorry, comments for this post are now closed.


* SUBSCRIBERS ONLY - Session update
* Illinois Supreme Court rules state SLAPP law doesn't automatically protect traditional journalism
* ‘This is how I reward my good soldiers’: Madigan ally testifies he was rewarded with do-nothing consulting contract
* Illinois Supreme Court rules that Jussie Smollett's second prosecution 'is a due process violation, and we therefore reverse defendant’s conviction'
* Dignity In Pay (HB 793): It Is Time To Ensure Fair Pay For Illinoisans With Disabilities
* It’s just a bill (Updated)
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

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

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


Loading


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

Archives
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
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




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