Illinois Supreme Court Rejects Lawmakers’ Pension Overhaul
Source: New York Times
CHICAGO The Illinois Supreme Court on Friday rejected changes that legislators made to fix the states deeply troubled pension system, leaving Illinois where it had started with a significant budget crisis, a vastly underfunded public pension system and no plan in sight.
All seven members of the states highest court found that a pension overhaul lawmakers had agreed to almost a year and a half ago violated the Illinois Constitution. Under this state constitution, pension pledges cannot be diminished or impaired.
All along, unions had argued that the state could not do what it wished to do: lower future cost-of-living adjustments, raise the age of retirement for some and put a cap on pensions for those with the highest salaries.
But, in a deal pressed through by a state that was then controlled by Democrats, state officials argued that they had no choice to save the pension system and a state budget that was increasingly crippled by the pension woes. The deal, passed in late 2013, was expected to save $160 billion over 30 years.
Read more: http://www.nytimes.com/2015/05/09/us/illinois-supreme-court-rejects-lawmakers-pension-overhaul.html
Excellent! Just excellent.
As with Social Security, and the question, 'but how on EARTH are we going to solve this???!!??',
DUH RAISE TAXES.
NoJusticeNoPeace
(5,018 posts)"And they are gonna get that too, they are gonna get everything"
This is good news, but until we have the political will to get the money from the place where the money is, not sure how this will work out.
I see you edited and yes, taxes.
We SLASHED taxes on the rich, and the corps dont pay them, so guess where the money is.
closeupready
(29,503 posts)in retrospect. But that's the way it goes. They're gonna have to renege on that, in all likelihood.
Illinois has at times been on the other end of interstate corporate relocations. In 2001 it gave a $56 million to Boeing to move its headquarters to Chicago from Seattle (see below). The package consisted of both state subsidies and local property tax breaks. After taking office in 2011, Chicago Mayor Rahm Emanuel vowed to reform the citys bloated TIF system.
The state commonly bundles tax credits, grants, and infrastructure assistance. Illinois revenue-reducing tax credits include the Enterprise Zone, High Impact Business, Film and EDGE programs. Illinois also provides direct cash grants to companies through the Business Development Assistance program. The IDOT Economic Development program provides indirect cash grants which fund infrastructure built to benefit companies.
The cost of these programs can be considerable. For example, the Enterprise Zone program alone costs the state nearly $94 million each year. Many companies dont utilize tax credits because Single Sales Factor wipes out their tax liabilities. Tax credit subsidies are frequently used as a backstop just in case the company incurs a tax bill.
http://www.goodjobsfirst.org/states/illinois
awoke_in_2003
(34,582 posts)and they are coming for your Social Security next.
NoJusticeNoPeace
(5,018 posts)awoke_in_2003
(34,582 posts)NoJusticeNoPeace
(5,018 posts)Hoppy
(3,595 posts)Yet, he can't put the money he promised into the pension fund.
closeupready
(29,503 posts)and $$ to these organizations that then take the money, repatriate it to the Cayman Islands, stuff it in untouchable offshore bank accounts, instead of spending it or using it to hire more staff?
Fred Sanders
(23,946 posts)of public services, resources, assets and public lands and minerals....do what you promised the hard working retired folks of your State, as enshrined, wisely, in the Constituion.
Double duh.