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.
Slight Chance Showers And Thunderstorms
Latest News Stories
From Mexico to Knoxville, five cartel leaders wanted in drugs, weapons conspiracy
Trump administration pushes to remove noncitizen Medicaid enrollees
Meeting Summary and Briefs: Will County Board Executive Committee for August 14, 2025
Federal government spending big on healthcare plans that aren’t being used
Public education budgets balloon while enrollment, proficiency, standards drop
Crypto companies ask Trump to block bank data fees
Illinois news in brief: Cook County evaluates storm, flood damage; Giannoulias pushes for state regulation of auto insurance; State seeks seasonal snow plow drivers
Think tank, election attorney support Trump’s vow to end mail-in voting
Frankfort Advances Plans for New Multi-Use Paths to Boost Pedestrian Safety
Pacific region sees higher inflation than national average
Frankfort Approves Over $19 Million in Surplus Fund Transfers for Future Projects
Legislative committees advance CA redistricting legislation
California schools protect students from ICE agents
White House touts D.C. crackdown; no timeline on National Guard deployment
