WATCH: Warnings of higher IL property taxes heard as pension bill advances
(The Center Square) – Supporters of an Illinois Statehouse pension measure say it is a “fix” for Tier 2 public employee pensions. Opponents say it will be too costly for state and local taxpayers.
State Rep. Jay Hoffman, D-Swansea, said amendments to Senate Bill 1937 will correct conflicts with Social Security provisions, saving taxpayers from covering possible penalties. The measure also increases cost of living adjustments to 3% a year for employees hired after 2011.
“Currently, under Tier 2 is 3% or half of the half of the change in the consumer index,” Hoffman told the House Revenue and Finance Committee Wednesday. “That’s not fair in that their pensions simply do not keep up with inflation.”
Republicans warned the aggregate cost for local taxpayers could be $15 billion.
Northwest Municipal Conference Executive Director Mark Fowler said in the first year alone, the measure would cost local taxpayers tens of millions of dollars extra.
“In some communities, local taxpayers could face the equivalent of a 10% property tax increase to fund the pension benefit increases proposed in Senate Bill 1937.”
Illinois already has the highest property taxes in the country.
State Rep. Stephanie Kifowit, D-Oswego, said the issue isn’t the annual costs of pension benefits increases.
“It is not the benefits. The benefits payment is about $2 billion. The issue here is the unfunded liability,” Kifowit told the committee. “And so we have laid out a plan to pay for that. We have laid out a plan that is fiscally responsible.”
State Rep. Steven Reick, R-Woodstock, criticized Democrats for working on the issue without Republicans or other stakeholders. He motioned to table to measure.
“We’re $140 billion in debt. I think we need to start from square one,” Reick said. “We heard people talking about dignity in this state. There is also dignity in not making promises you can’t pay for.”
Reick’s motion failed in committee.
The measure is advancing at the Statehouse. Thursday is the final day of fall veto session.
Events
Latest News Stories
WATCH: GOP leader calls Pritzker’s accountability commission a ‘political stunt’
Unions sue Trump over immigrant drivers license crackdown
Battery storage financials remain in question as lawmakers consider energy omnibus
Illinois quick hits: Pritzker praises credit upgrade; Cook County approves $20M quantum grant
Op-Ed: Main Street businesses, customers would bear brunt of a tax on services
Supreme Court grants extra time for arguments in tariff case
WATCH: White House vows to ‘fight’ lawsuits over $100,000 H-1B visa fee
WATCH: Illinois leaders on both sides send Bailey family condolences for loss of 4
Democrats tank GOP bill to pay troops, essential workers during govt shutdown
Texas lawmaker introduces agricultural visa reform
Home sales rise 1.5% in September as mortgage rates dip
FBI arrests 34 in NBA, poker gambling probe involving crime families
