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
Latest News Stories
Report: Cautionary advice to governments granting overzealous tax breaks
‘Exploited tax dollars’: Trial law firms donate almost exclusively to Democrats
Supreme Court takes up Georgia Title IX case
Will County Executive Committee Splits on Whether to Ask Voters About Single-Member Districts
Will County Departments to Stop Accepting Pennies, Rounding Down Cash Transactions
Everyday Economics: The economy is still standing, but the squeeze Is building
Kentucky to select candidates in high profile races
Alabama voters to elect candidates in redrawn map
Legislative Committee: Federal Update Highlights $79 Billion ICE Funding and DHS Reconciliation
Do midterm redistricting efforts favor Republicans?
Illinois lawmaker calls for Aurora mayor’s resignation over alleged ICE ‘doxxing’
New Lenox Fast-Tracks Over $310,000 in SCADA Upgrades, Advances IEPA Loan for New Water Facility
