Don’t shift pension burden to local districts

Thank you, Daily Herald, for the story on the awful state of the state pension system. It was pure irony that on the same page an AP story had House Speaker Michael Madigan proposing that any new pension boosts require a 60 percent majority. Speaker Madigan, you were part of the problem to begin with. For over 20 years you have underfunded pensions. The horse is already out of the barn, Mr. Speaker. Please don’t insult us by implying you weren’t involved.

Although the unfunded liability for pensions is $83 billion, the total unfunded liability cost is over $140 billion. The annual revenue for the state from all sources is approximately $30 billion, including the 2011 tax increase. As you will recall, these tax increases to individuals and business were to help fill the void in the pension system.

Recently, it was proposed by the governor and several legislators that the pensions currently under state control be shifted back to the local districts. Personally, I would agree that local control is better, and it should have started that way from the beginning. Local districts will deal with the issues because it’s their kids, their teachers and their friends who are involved. Arms length solutions just don’t work.

As I mentioned, the tax increase of 2011 which was called “temporary” will never go away, but it will not go with the liability to the districts either. It will be kept by the state to waste on other projects. This must not be allowed to happen. If this proposal is to become legislation it must provide not only the original funding intended but also 2011 tax increase funds levied prior to transfer. Without them property tax increases to business and all individuals are estimated to grow by 25 percent.

Richard Francke

Bartlett