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.
Mostly Sunny then Slight Chance Showers And Thunderstorms
Latest News Stories
New North Carolina law, question on facts pivotal to Mosley appeal
Illinois lawmakers grill diversity commission over lack of progress
Goble’s 12 Strikeouts, Early Run Support Lift Casey-Westfield Past Arthur-Okaw Christian 7-4
U.S. House vote on spy powers extension delayed due to bipartisan pushback
Auditors praise Trump anti-fraud healthcare proposal
WATCH: Gun owners rally at Illinois Statehouse against more gun regulations
GOP seeks probe of $180B in fraud with taxpayers’ money
Bill advances to prevent local governments from clearing homeless camps
Bonta’s anti-Exxon emails may have run afoul of CA corruption law: Claim
Expulsion votes for two members of Congress could happen next week, Luna says
NAACP sues xAI over air pollution near Memphis data center
Trump says he’s ready to nominate up to three Supreme Court justices
