The (Arlington Heights, Ill.) Daily Herald and the nonprofit organization Reboot Illinois hosted a panel discussion Wednesday at Harper Community College in Palatine, bringing together two state representatives and the president of the largest teachers union in Illinois to talk about the problem with Illinois’s pension system, of which the Teachers’ Retirement System makes up 60 percent.
We have put off any discussion of the issue—although it’s the biggest buzz in Illinois outside the Chicago school closings, and maybe even bigger than that—because, quite frankly, the lack of funding for the pension payouts promised to teachers by their collective bargaining agreements is staggering. The fund is said to be about $100 billion short of solvency, and if something isn’t done, retirees such as teachers, police officers, and other state workers won’t get their benefits a few decades down the road, when they are supposed to be enjoying their retirement.
The panelists Wednesday were
- Cinda Klickna, president of the Illinois Education Association, the largest teachers’ union in the state with about 133,000 members.
- State Representative Tom Morrison, Republican of Palatine
- State Representative Elaine Nekritz, Democrat of Northbrook
Many ideas were advanced in the discussion, including increases to revenue through a graduated income tax or through the maintenance of Illinois’s current income tax of 5 percent beyond 2015, when the rate is supposed to sunset; a shift of the cost for any enhancements to pensions to school districts or other state employers; and a change in the pension system from one that defines benefits to one that defines contributions, similar to the pension systems used by corporations, like a 401(k) plan.
Unrepresented was the Illinois Senate, since they’re still in session. They have their own plans, which were also discussed Wednesday.
“We just have to bring the right people into the room, have the conversation, use the right figures, and be honest,” Ms Klickna argued. “When you have a state that is bottom in education funding and bottom in pension funding, [then] maybe it’s time to look at revenue.”
How to accomplish an increase in revenue, though, is a hotly debated question.
“I’m telling you, folks, the well is dry,” Rep Morrison countered. “And, we must have more revenue, but the only way you’re going to get it is by getting more taxpayers, not raising tax rates.”
A full transcript of the panel discussion, which does not include questions asked by those in attendance, can be found on our site, here. We transcribed the event word-for-word because this is such a critical issue, and we hope constructive dialog can take place in order to move Illinois forward and make it so that teachers want to work in the state.
