An unrealistic view of state's finances

I'm writing regarding: "Gimmicks, you say? Pritzker plan is sound fiscal policy" by Ralph M. Martire. Mr. Martire indicates that fiscally, there is much to like in the Prtizker plan. The Illinois Policy Institute thinks otherwise when it comes to fiscal policy and fiscal responsibility in Illinois. So far, other than lip service, I haven't seen any major initiative coming from Gov. Pritzker to control spending and make Illinois more attractive to businesses and job creation. The elephant in the room is Illinois' public pension system.

Mr. Martire praises Gov. Pritzker for putting $500 million toward the system. What Mr. Martire doesn't mention is the Illinois public pension system is over $100 billion underfunded. A $500 million contribution is 0.5% of the underfunding.

There are also some other things Mr. Martire doesn't mention about the Illinois pension system. He doesn't mention that the Illinois pension system is paying out more in benefits than it is taking in. How long can that last?

There is a myth that to be considered funded a pension system should be funded at 80%. The American Academy of Actuaries says 80% is a myth and the level should be 100% or more. As a retired teacher, I found that the Teachers' Retirement System is about 45% funded. If the stock market hadn't performed at record levels, things would be different, and the next downturn in the stock market will reduce the funding level.

I think Mr. Martire is way too optimistic about the fiscal outlook in Illinois. I also think that if Gov. Pritzker is reelected, he'll pull back on the tax cuts and rebates he's proposing now. My intuition says go with what the Illinois Policy Institute says because it is more in line with reality and fiscal sanity.

Kenneth Fron

North Aurora