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.
Partly Cloudy
Latest News Stories
Walz appoints members to Operation Metro Surge ‘Truth Council’
$45M included in budget for previously unfunded property tax relief
Over one ton of cocaine seized at U.S.-Mexico tunnel bust
National security group urges Congress to investigate Airwallex ties to CCP
Open primary system debated as Californians go to polls
Illinois Quick Hits: Pritzker signs two bills
Elon Poll says 2 in 3 proud to be American and Signers would be disappointed
U.S. Supreme Court denies Florida request to sue over immigrant CDLs
Meeting Summary and Briefs: Frankfort School District 157-C Board of Education for April 21, 2026
Meeting Summary and Briefs: Lincoln-Way Community High School District 210 for May 21, 2026
Judge says federal rule blocks Illinois from banning ‘swipe fees’
Canadians, Brits stress U.S., Texas are key to shipbuilding
Tariff litigation expands as federal court weighs next move
Democrats dissatisfied by DOJ’s pause on ‘anti-weaponization fund’
