* Illinois Policy Institute…

Watchdog accountants are challenging Gov. J.B. Pritzker’s claims Illinois is on its best fiscal footing in years, arguing his five-year economic outlook report severely underrepresents the state’s looming long-term financial liabilities.

Experts with Truth in Accounting examined state financial reports to determine Illinois failed to pay $210.5 billion worth of its bills in fiscal year 2021, leaving each taxpayer responsible for $49,500 in debt. Illinois ranked third-worst in the nation, rating an “F” for fiscal management.

Illinois didn’t have $210.5 billion in pension bills last fiscal year. That’s like saying a homeowner should be ashamed of not paying off her 30-year mortgage in full last year.

Also, if you’ve ever taken out a home mortgage, you know that most of what you pay the first several years is basically just interest. You’re not paying off the money borrowed during that period of time, but you’re following the payment schedule drawn up by your bank. Kinda like the state’s pension ramp. And now, as I’ve been saying for a while, annual required state pension payments have finally stabilized, just about as projected back in 2018 [and 2017 and 2016].

* Back to IPI…

Illinois pensions can be fixed, but not by feel-good distortions of the economic realities. Reforms are needed that are only possible by changing the Illinois Constitution.

The “hold harmless” pension reform developed by the Illinois Policy Institute would tie all pension cost-of-living adjustments to inflation rather than a fixed rate of annual growth, saving $50 billion by 2045. It would also increase required government contributions to fully fund retirees’ promised pensions rather than the current target of 90% by 2045.

Hilarious. Aside from the inflation aspect, now they’re for a tax hike? Because we all know how easy and painless it was to slash government spending when Bruce Rauner was governor. Also, when taxes were raised over Rauner’s veto, he spent every bit of the money.

…Adding… Dan Proft is listed as a member of Truth in Accounting’s board of directors on its 2020 990 form. Click here.