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* Gov. Pritzker is proposing a $52 million operating increase for higher education while cutting pension payments by $13 million. So, while Sen. Rose is being a bit hyberbolic here, in a system that’s already severely underfunded, that $13 million shortfall will grow exponentially in the coming years…
Even though the governor is proposing a decrease in how much the state contributes to the State Universities Retirement System, total higher education funding is up from $3.86 billion in fiscal year 2019. Pritzker and university officials said the additional state funding is an investment in stability for the institutions.
State Sen. Chapin Rose, R-Mahomet, said a 5 percent increase that fails to address pension costs doesn’t make sense. Growing pension costs will eventually eat up that increase. Pritzker’s proposed budget earmarks $1.63 billion for SURS, that’s down from $1.65 billion in fiscal year 2019 and about even with $1.63 billion in fiscal year 2018.
“When you go back to ‘05, ‘06, that skipped pension payment was a third of our unfunded pension liability now,” Rose said. “Our pension payments in 2002 were $2.2 billion a year, now they’re like $9.5 billion a year. OK, that is coming from somewhere and it’s coming out of higher ed and K-12 and everything else and ultimately comes out of the taxpayers’ pockets.”
“I would caution all the folks back home who got excited about this 5 percent increase for higher ed and just let them know that you don’t get there without this pension, whatever it is,” Rose said. “The retired teachers are saying it’s a skip, the [Illinois Education Association] and the [Illinois Federation of Teachers] are a little leery about it. I want to know a lot about it.”
posted by Rich Miller
Monday, Apr 8, 19 @ 3:30 pm
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Chapin Rose is absolutely right here. I know we always say elections have consequences but math is still math. When the numbers don’t add up someone’s gotta pay.
Comment by Jvslp Monday, Apr 8, 19 @ 3:58 pm
Agree. JB wants to get his pet spending things done. I hope he succeeds, but not at the expense of increasing debt. People are looking for you to be responsible. The pensions aren’t a piggybank. Stop treating them as such.
Comment by PublicServant Monday, Apr 8, 19 @ 4:08 pm
The smallest exponential increase of 13,000,000 would be 169 trillion. I do believe your math is off
Comment by Citizen Monday, Apr 8, 19 @ 4:11 pm
Never mind learning from the past.
Comment by RIJ Monday, Apr 8, 19 @ 4:15 pm
Think of this as a preview to the type of mismanagement that will take place once a new pile of big money comes in with the progressive tax.
We will use it for everything but paying down the pensions as we should, which will only leave us needing even more tax increases in the future by more than just those making over 250K.
This is what we do. Any hint of new revenue is used for new spending and “investments” as opposed to paying off old bills and plowing money into pensions.
Nothing ever changes.
Comment by Anon Monday, Apr 8, 19 @ 4:21 pm
Rose said more money won’t solve the problems the state’s schools face. He said 25 years ago there were 8 four-year institutions.
“Now we have 13 four-year institutions, plus 40-plus community colleges, plus you’ve got the internet with online learning, OK, and during the same time period you’ve got 50,000 fewer people enrolling,” Rose said. “That’s a huge problem.”
Just absolutely brutal, yet the perfect anecdote for the state as a whole and why we have some of the troubles we have.
Comment by Anon Monday, Apr 8, 19 @ 4:25 pm
Universities in the Governors Budget
The fiscal year 2019 budget proposes that universities become responsible for $150 million of the cost so their contribution covers the inflated costs since fiscal year 2002. The state group health insurance program covers state and university employees, retirees of both systems and their dependents.
Did not notice any other govt agency ‘contributing’ If anyone else knows differently, let me know.
Higher education funding in 2017 was $2,106; in 20178, $1733; in 2019 $1959. So still lower than in 2017. Page 31 of Budget. (k-12 went from $7490 in 2017 to 8313 in 2019.
The above data was from General Funds
SURS was the only pension system to receive reduced funding. pa 31
Looked like every state university was receiving reduced General fund revenues pp 86-88.
Anyone can double check what I have found and correct me.
But public universities certainly do not seem to be doing that well in the budget.
Comment by Nonbeleiver Monday, Apr 8, 19 @ 4:54 pm
Just because others have been irresponsible in the past , doesn’t mean it’s the right thing to do in the future. If you have a public pension program: it has to be funded.
Comment by Steve Monday, Apr 8, 19 @ 6:04 pm
“Our university presidents know where efficiencies can be brought and where they’re underfunded,” Pritzker said.
https://capitolfax.com/2015/08/07/our-universities-are-out-of-control/
Comment by Anonanonsir Monday, Apr 8, 19 @ 7:22 pm
Wonder of wonders, I agree with Senator Rose on something.
Comment by Ole' Nelson Monday, Apr 8, 19 @ 8:04 pm
Actually Citizen, exponential coeffecients do not have to be whole numbers.
Comment by Union Dues Tuesday, Apr 9, 19 @ 7:44 am
It would seem the plan is to try and fund everything but the pensions since there is nothing forcing the governor to fund them at any specific level. I would not want to be in a pension plan right now, that’s for sure.
Comment by Maximus Tuesday, Apr 9, 19 @ 8:44 am
Kick the can down the road again. That’s a bad plan.
Comment by Daveman Tuesday, Apr 9, 19 @ 9:39 am
So where is this $13 million number coming from?
Comment by Anonymous Tuesday, Apr 9, 19 @ 9:58 am