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SB 1673

May 29, 2012

The Illinois legislature is well-known for pushing through controversial legislation at the 11th hour just before the conclusion of a legislative session. SB 1673 is supposed to reform the state pension system, which everyone should be in favor of, right?

Except it doesn’t. It’s unconstitutional, it lets the State off the hook for the lack of funding to the system that was mandated by the Illinois Constitution, and it puts more strain on property owners. Information about it can be found here.

I don’t buy the argument that the system has to be fixed now as some sort of emergency. The legislature has been screwing with the pension system for decades. If private union pension systems were handled by the union leaders in this way, they would be in prison. As legislators, it’s “sound fiscal management.”

Maybe the current system is not working. It would have if the state would have been making its payments for the the last 30 years. But it was easier to use the money for other things and give IOUs to the pension systems. Now that mismanagement has come home to roost, and the way out of it is to reduce benefits and shift the burden to others.

Except it’s not legal. One law doesn’t negate a part of the Illinois Constitution, no matter what they say. It’s sort of our own Illinois Obamacare  – the legislation has to be passed now or disaster will befall us, but we can’t tell you what that legislation is, and it’s probably not constitutional anyway.

Unfortunately, this is business as usual in Springfield. I’m afraid they will get it through no matter how much we object.

If you believe pension reform should be done in a reasonable, fair, and constitutional manner, you may want to let your senator and representative know that – and soon. The thing might pop up to a vote tomorrow.

Here’s what I sent to my state representative:

Dear Ms. Bellock:

I wrote to you a little over a week ago about the pension debate in the Illinois legislature. If you recall, I am a recently-retired teacher from Hinsdale District 86. 
 
Now my worst fears are coming true – there is a bill that just came out of committee that is designed to “reform” the pension system. As I feared, it has only appeared two days before the end of the legislative session – a move clearly designed to make it impossible to marshall opposition to the bill in time and to make it difficult for representatives to get feedback from their constituents.
 
Of course, it does not reform the system. It provides political cover to those legislators who need to go back to their constituencies and say they held the line to try to save the State of Illinois from its “pension crisis,” and, if passed, it will probably help to do that for a very short while. However, it promises what it will likely not deliver, such as restitution to the retirement system of back payments by the State required by law.
 
On the other hand, it should be quickly challenged for its constitutionality, since the pension system was established in the Illinois State Constitution and this bill clearly negates parts of the Pension Clause. It also will cause no end of problems for school districts across Illinois – many of which cannot raise their property tax rates because of the tax cap. It widens the rift between the taxpayers and public employees that has been created by demagogues for their own purposes.
 
This bill is NOT the kind of reform we need. We need reform that can last, that is constitutional, and that requires the State live up to its obligations. The fact that the State now does not have the money to pay for pensions is a result of poor fiscal management and political pandering, not of the retirement system or its managers.
 
I am offended that some legislators believe this is the way to make law and handle the affairs of the citizens. Pushing this bill through may look good for a few politicians in the short term, but as the ramifications of it are felt down the line, those who are responsible will be remembered.
 
I consider you a “cooler head” and someone who has not fallen prey to the politician-as-celebrity style of representation. I hope you, and like-minded Representatives across Illinois, will do all you can to stop this bill. It is another example of a bandaid solution made so that some people – including the Governor – look good in the short term while only creating more problems down the line. Please do all you can to keep this bill from being driven through and becoming law.
 
Sincerely,
I urge you to send something similar, or call their offices.
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