On October 15, the Better Government Association (BGA) held a discussion around Fixing Illinois’ Pension System. In conjunction with the discussion, BGA, the Civic Committee, and the Civic Federation published a list of principles for addressing Illinois pension problems. The event featured a panel of experts on Illinois pension systems: Deputy Governor for Budget and Economy Andy Manar, Sen. Robert Martwick, Chair of the House Personnel and Pensions Committee Rep. Stephanie Kifowit, Republican Spokesperson of the House Personnel and Pensions Committee Rep. Steve Reick, and BGA President and CEO David Greising.
The state has done a good job getting its finances in order, and contributing above the minimum statutory requirement to pensions in recent years, when they have funds available. However, the five state pension funds have $141B in unfunded liabilities, and local pension funds have an additional $70B in unfunded liabilities. Beyond addressing current unfunded liabilities, Illinois will have to increase Tier 2 pension benefits to meet federal Social Security safe harbor, which will further increase unfunded liabilities by an unknown amount.
The panelists discussed pension funding proposals from Gov. J.B. Pritzker, the Civic Committee, and the Center for Tax and Budget Accountability, but could not agree on which solution would be best for the state. One issue the panelists largely agreed on is that reform to address the federal Social Security safe harbor issue for Tier 2 pension recipients must occur soon. Rep. Reick, the lone Republican on the panel, pushed for the Tier 2 safe harbor issue to be addressed as a stand-alone bill as soon as veto or lame duck session. However, Democrat panelists advocated for including the Tier 2 safe harbor fix as a part of a larger pension funding package that they hope will pass in 2025. They believe that the General Assembly’s appetite to pass broader pension reform will wane if they have already addressed the Tier 2 issue.
Important Upcoming Dates – Statewide
November 5 – 2024 General Election
November 12-14 – Veto Session Week 1
November 19-21 – Veto Session Week 2
January 2025 – Lame Duck Session (Unconfirmed)
In the News
Huge stacks of cash give Illinois Democrats advantage in final weeks of campaign – The Daily Line, October 18, 2024
Fall quarterly financial reports continued to confirm an ongoing trend in Illinois politics: despite Republicans’ best efforts, Democrats have virtually unlimited resources thanks to a multi-million-dollar cash advantage.
Michael Madigan’s 12 jurors are chosen and openings are on the horizon — but what took so long? – Chicago Sun Times, October 17, 2024
Madigan has played a prominent and polarizing role in Illinois politics for decades. That certainly played a part in jury selection, but it wasn’t necessarily the reason things took so long.
As State Lawmakers Eye Transit, RTA Talks Funding Crunch, Potential Cuts and What Pritzker’s Thinking – WTTW, October 17, 2024
If the General Assembly doesn’t come up with a solution to the looming fiscal cliff facing Chicago-area transit by the end of June, agencies will have to drop everything and immediately start planning for drastic service cuts of up to 40%.
District 80 candidates say criminal justice reform among top issue – Chicago Tribune, October 17, 2024
Both candidates running for the 80th District Illinois House seat say there is need for reform in the criminal justice system, and that voters in this district, which encompasses several south and southwest suburbs, are looking for a representative who prioritizes their needs over party alignment.
Deere announces more layoffs in Illinois amid farm slump – Crain’s Chicago Business, October 16, 2024
Deere & Co. is laying off an additional nearly 300 people in Iowa and Illinois as demand for farm equipment slows from the peak production of recent years.
Lawmakers see urgent need to fix Tier 2 pensions, but when remains to be seen – The Daily Line, October 17, 2024
Conversations have continued for more than a year in Springfield about possible pension reform, including making necessary reforms to the Tier 2 pension system. Lawmakers say they are well aware of the problem and the growing urgency to address it, when that happens remains to be seen.
Hauter vs. Gill: 87th District State Rep. candidates share why they should win the candidacy – WMBD, October 16, 2024
With election day just a few weeks away, voters in the 87th district get to choose from two doctors for representation.
Jury selection for Madigan trial slows further with no one chosen for second straight day – Chicago Tribune, October 16, 2024
Two days of intensive questioning this week have yielded no new jurors in the corruption trial of Michael Madigan, as the already sluggish pace of jury selection slowed to a crawl Wednesday.
News in briefs: Sorensen’s financial lead; Madigan’s money – The Daily Line, October 17, 2024
U.S. Rep. Eric Sorensen (D-Moline) reported a strong fundraising lead in the race for the 17th House District. And a new campaign finance report shows how much money former Speaker Mike Madigan has available as his trial begins.
Senate wraps up months of hearings on transit reform – The Daily Line, October 16, 2024
The Senate wrapped up months of hearings on Tuesday that dug into challenges facing public transportation systems in Illinois with a deadline coming next year to address a 2026 fiscal cliff for the agencies’ budgets.
No jurors picked in landmark Madigan corruption case Tuesday as painstaking selection process enters second week – Chicago Tribune, October 15, 2024
The corruption trial of former House Speaker Michael Madigan inched closer to opening statements Tuesday as lawyers spent another long day questioning potential jurors about their backgrounds and feelings about the landmark case.
Sen. Seth Lewis: Suburban and downstate taxpayers are not Mayor Brandon Johnson’s piggy bank – Chicago Tribune, October 16, 2024
Standing at the crossroads of our nation, Chicago serves as a major transportation hub, with its iconic skyline a testament to the thousands of businesses that power its economy. Whether you’re exploring the masterpieces at the Art Institute of Chicago, catching a show at the Steppenwolf Theatre or enjoying the sounds of the Chicago Symphony Orchestra, the city is a cultural treasure trove. Combine that with the lush lakefront parks and rabid loyalty fans feel for the city’s sports teams, and Chicago’s appeal is undeniable.
A threat to the office: Statehouse candidates respond to assassination threat – Shaw Local, October 15, 2024
The Sycamore Republican who was the focus of an assassination threat this summer said he didn’t want that to deter him from serving residents.
Panel discusses proposals to shore up Illinois’ unfunded pension liability – The Center Square, October 15, 2024
With myriad proposals to address Illinois’ unfunded pension liability, some are looking at a tax increase. Others want pensioners to pony up. The Better Government Association hosted a pension roundtable in Chicago Tuesday to take up ideas to address Illinois’ $140 billion unfunded liability.
Casten, Conforti strongly disagree on presidential immunity ruling – The Daily Herald, October 15, 2024
Democratic U.S. Rep. Sean Casten of Downers Grove and 6th District Republican challenger Niki Conforti of Glen Ellyn have dramatically different opinions about the Supreme Court’s recent ruling that former presidents have some immunity from prosecution.
‘Millionaire surcharge’: What to know about the property tax relief question on the ballot – Springfield State Journal- Register, October 14, 2024
In addition to candidates’ names, Illinois voters will also see three advisory questions on their ballots. One question would take a look at potential income tax reform, which its advocates like former Gov. Pat Quinn say is needed to fix a “upside-down” system.
Jury selection continues in Madigan’s corruption trial – The Center Square, October 14, 2024
The bribery and racketeering trial of former Illinois House Speaker Michael Madigan is set to resume Tuesday with more questioning of potential jurors. Prosecutors and defense attorneys for Madigan and co-defendant Michael McClain spent three days interviewing prospective jurors last week.
House 52nd candidates debate immigration, state finances – The Daily Herald, October 14, 2024
State spending priorities were among the issues debated by the candidates running for the 52nd District House seat during a recent Daily Herald endorsement interview.
Jury selection in Madigan trial stretches into second week – Capitol News Illinois, October 11, 2024
The jury that will determine the fate of former Illinois House Speaker Michael Madigan is nearly complete after three slow days of jury selection this week.
Illinois’ Lt. Governor Visits Southern IL to Highlight Entrepreneurial Spirit of the Region – WSIU, October 11, 2024
Southern Illinois was the spotlight of Lieutenant Governor Juliana Stratton’s downstate tour on Thursday. The trip highlights her commitment to uplifting communities across the state, driven by her role as Chair of the Governor’s Rural Affairs Council.
News in briefs: Pritzker releases tax returns; Governor encourages progress at Stellantis – The Daily Line, October 14, 2024
Gov. JB Pritzker released his tax returns showing his income grew in 2023. And the governor also urged Stellantis to move forward on reopening the Belvidere assembly plant.
Illinois voters to decide if state should mandate IVF coverage – WGEM, October 11, 2024
A new Illinois law will require all group insurance plans to cover fertility treatments beginning Jan. 1, 2026, including in vitro fertilization. Now, the state will ask voters if they want to require insurers to cover unlimited fertility treatments in a non-binding referendum on the Nov. 5 ballot.
Dems Aim to Take Back House Seat After GOP Upset in 2022 – The Illinoize, October 13, 2024
Two years ago, one of the most shocking electoral surprises came in the Metro East, when unknown, underfunded Millstadt chiropractor Kevin Schmidt defeated incumbent Rep. LaToya Greenwood in the traditionally Democratic, East St. Louis-based district once represented by Black Democrat stalwarts like Wyvetter Younge.
Illinois House 36th District candidates say public safety is a top priority – Chicago Tribune, October 14, 2024
Both candidates seeking to replace former state Rep. Kelly Burke in the 36th District say public safety is a top priority to address in a district that encompasses multiple southwest suburbs.
Michael Madigan’s friendship with alleged fixer could be tested during their corruption trial – Chicago Sun Times, October 14, 2024
When Michael McClain retired from lobbying in 2015, he told then-House Speaker Madigan he was “at the bridge with my musket standing with and for the Madigan family.” McClain’s fealty to Madigan will soon come into sharp focus as they face a federal jury together.
Rep. Katz Muhl, challenger Behr disagree on anti-slating law – The Daily Herald, October 13, 2024
Democratic state Rep. Tracy Katz Muhl and Republican challenger Daniel Behr disagree on the merits of a new Illinois law that could’ve kept Behr off the ballot.
Civic leaders: How do we resolve Illinois’ pension mess? These 10 principles are a start. – Chicago Tribune, October 13, 2024
A new day in Illinois’ fiscal future may be on the horizon. Responsible stewardship of the state’s budget over the past few years and the elimination of the state’s unpaid bill backlog have put Illinois in its best fiscal position in years. And now, credible proposals to address Illinois’ pensions, coming from across the state’s political landscape, are under discussion in Springfield.
Dan McGrath: Reinsdorf has threatened to move the Sox before. This is different. – Crain’s Chicago Business, October 17, 2024
A word of caution to those disgruntled patrons who affixed Bozo noses to Jerry Reinsdorf’s picture and implored the beleaguered Chairman to sell the White Sox during the most futile season in franchise history:
News in brief: Assessor releases results of North Chicago Township reassessment; Pedestrian and Traffic Safety committee to consider speed limit reduction proposal – The Daily Line, October 18, 2024
The Cook County assessor released the latest information about the triennial reassessment of Chicago Thursday, and alderpeople next week will consider a proposal to lower Chicago’s default speed limit.
Bar groups reconsider ratings of powerful Cook County judge, citing Injustice Watch report – Injustice Watch, October 17, 2024
Running for retention Nov. 5, Judge E. Kenneth Wright Jr. faces criticism from two prominent bar groups after disclosures of inappropriate tax exemptions he took on a house in Will County. Since the Injustice Watch report earlier this month, the veteran judge moved to rescind the tax breaks.
Johnson must break two campaign promises to get budget passed, City Council critic warns – Chicago Sun Times, October 17, 2024
To solve the budget crisis, Ald. Marty Quinn (13th) said Johnson needs to break two campaign promises — raise property taxes he promised to freeze and then renew the ShotSpotter contract to win the votes he needs to get the tax hike through the City Council.
Editorial: Reinventing LaSalle Street will require flexibility — and incentives – Crain’s Chicago Business, October 17, 2024
Since its founding, Chicago’s reason for being has been business. Springing up where the Chicago River connects to the southern tip of the Great Lakes, the tiny hub of fur trading evolved into a jumping-off point for merchants moving goods from the East Coast to points west — first via canals, later via the network of train lines fanning out from here, and later still via air.
JB and MK Pritzker gave $5.6 million to put on DNC – Crain’s Chicago Business, October 17, 2024
Gov. JB Pritzker and his wife, MK, were the largest individual contributors to the Democratic National Convention, giving a combined $5.6 million to help put on the show at the United Center.
Host committee for Chicago’s DNC spent $89 million on convention, raised $97 million – Chicago Sun Times, October 17, 2024
The host committee for the Democratic National Convention in Chicago raised $97 million in cash or in-kind contributions and has spent more than $83 million — with Gov. JB Pritzker and his relatives, unions and Democratic groups among the biggest donors, according to the committee’s first report filed with the Federal Election Commission late Wednesday.
Why the often-overlooked Southeast Side matters to Chicago – Chicago Sun Times, October 17, 2024
A Chicagoan reflects on his Mexican American family’s journey on the Southeast Side as National Hispanic American Heritage Month comes to a close.
DNC’s impact on Chicago economy was $371 million, new convention report says – Chicago Sun Times, October 17, 2024
The study by Choose Chicago, the city’s marketing arm, focused in part on the direct spending from the two committees responsible for the convention, the Democratic National Convention Committee and the Chicago host committee.
Civic Federation issues report with recommendations for city to rein in budget shortfalls – The Daily Line, October 17, 2024
The Civic Federation issued a report Wednesday that includes suggestions for how the city can address its projected budget holes without raising property taxes, including a temporary suspension of a supplementary pension contribution, mandatory employee furloughs and the repurposing of outstanding federal pandemic relief funds.
Plan to fold Chicago-area transit into one agency roundly criticized in Springfield – WBBM, October 16, 2024
Illinois lawmakers heard more discouraging words about a plan to streamline the way Illinois transit agencies are run.
Should City Pay For New Bears Stadium? West Side Voters Can Weigh In On November Ballot – Block Club Chicago, October 16, 2024
Former Gov. Pat Quinn is behind the ballot referendum that will ask some 29th Ward voters if they support a taxpayer-funded lakefront stadium.
Reinsdorf considers selling the White Sox: report – Crain’s Chicago Business, October 16, 2024
Chicago White Sox Chairman Jerry Reinsdorf, who has owned the South Side club and exerted influence over Major League Baseball for more than four decades, is considering selling the team, The Athletic reports.
City Hall may have disqualified itself from getting millions in federal housing dollars – Crain’s Chicago Business, October 16, 2024
The city of Chicago may have made itself ineligible for $7 million in federal housing dollars it applied for last week, because of a longstanding legal battle over housing for people with disabilities.
Rogers Park Church Finds Way To Build A Parking Lot Despite Alderwoman’s Opposition – The Daily Line, October 16, 2024
A Rogers Park church is making good on its longtime plans to build a parking lot next door, despite the local alderwoman denying a zoning change to make it happen.
Greyhound Extending Lease At Downtown Station Just As It Was Set To Close – The Daily Line, October 16, 2024
Greyhound will continuing operating out of its Downtown terminal temporarily, a spokesperson confirmed Tuesday — just days before the bus line was expected to vacate the facility.
Gun violence, public corruption top issues for Cook County state’s attorney candidates – The Daily Herald, October 15, 2024
Combating gun violence and prosecuting public corruption are among the top priorities for Cook County state’s attorney candidates Democrat Eileen O’Neill Burke, a retired appellate court judge, and Republican Bob Fioretti, a former Chicago alderman.
Trump in Chicago interview defends call for tariffs on imports, does not commit to peaceful concession if he loses – Chicago Tribune, October 15, 2024
Former President Donald Trump used an appearance before the Economic Club of Chicago on Tuesday to deliver a strong defense for using tariffs on foreign imports to grow jobs and the economy, dismissing criticism it could lead to consumer price increases and a resurgence of inflation if he is elected.
City Hall gave big break to clout-heavy contractor despite accusation of deception – Chicago Sun Times, October 15, 2024
Chicago’s City Hall inspector general said Benchmark Construction lied about being a city-based business and proposed banning the company from getting City Hall contracts. A top aide to Mayor Brandon Johnson ignored that recommendation.
Johnson-CPS drama has credit assessors on alert – Crain’s Chicago Business, October 15, 2024
The abrupt changeover in leadership at the Chicago Board of Education has caught the attention of Moody’s Ratings, which said analysts are monitoring the situation amid mounting financial challenges for the school district.
Discover hits Chatham workforce goal of 1,000 employees – Crain’s Chicago Business, October 15, 2024
Discover Financial Services hit its goal of employing 1,000 people at its Chatham call center that it set in 2022 when it opened the facility in the largely Black South Side neighborhood.
Opinion: The mayor says he ‘has the power’ — but does he have the power to listen? – Crain’s Chicago Business, October 14, 2024
The unprecedented mass resignation by the Chicago Board of Education and the mayor’s news conference to follow crystalized a crisis of governing and leadership in our city. Despite Mayor Brandon Johnson claiming he has led “a collaborative operation” since taking office, it has been anything but, with this stunning development only the latest in an unfortunate trend.
Nov. 5 referendums in Chicago’s suburbs: School building projects, backyard chickens and even a roundabout – Chicago Tribune, October 15, 2024
About two dozen government bodies in Chicago’s suburbs will ask voters for more money or other changes in the Nov. 5 election. The referendums cover a range of issues from $420 million in school improvements in Naperville and Aurora to whether to allow backyard chickens in Thornton.
Future of Chicago-Area Public Transit Hangs in Balance as State Lawmakers Wrap Up Hearings on Agency Funding, Oversight – WTTW, October 14, 2024
With the Chicago area’s public transit system approaching the precipice of a $730 million fiscal cliff in just over a year’s time, state Sen. Ram Villivalam (D-Chicago) said the crisis should be an opportunity for major reform. “We need a central agency that is going to address safety, reliability (and) accessibility for the entire region — and that is what is lacking right now,” Villivalam said.
Former President Donald Trump returns to Chicago today. Here’s how to watch. – Chicago Sun Times, October 15, 2024
Exactly three weeks before Election Day, former President Donald Trump plans to return to Chicago Tuesday morning for a downtown event with Bloomberg News and The Economic Club of Chicago.
Yard signs indicate change in DuPage County’s political landscape ahead of 2024 election – ABC 7 Chicago, October 14, 2024
The 2024 presidential election is now just three weeks away, and in the western suburbs, where Republicans once dominated, the landscape has changed dramatically over the last several election cycles.
True Value files for bankruptcy to sell itself to rival Do It Best – Crain’s Chicago Business, October 14, 2024
True Value Co. filed for bankruptcy in Delaware on Monday as it seeks to sell its business to hardware rival Do it Best Corp. The Chicago-based home-improvement company will continue to operate under Chapter 11 protection with Do it Best providing a so-called stalking horse bid, meaning that it’s subject to better offers, should any materialize, according to a company statement. The bidder offered to pay $153 million in cash, according to the bankruptcy filing.
After 3 slow years, dealmakers expect to see plenty of action in 2025 – Crain’s Chicago Business, October 15, 2024
Mergers and acquisitions activity is likely to pick up during the next year, with a resilient U.S. economy and lower interest rates spurring increased deal activity, according to a survey of dealmakers.
Fact-checking Mayor Johnson after he blasts Springfield lawmakers – Chicago Sun Times, October 11, 2024
The mayor has said that he, as a CTU staffer, helped pass the evidence-based school funding bill in 2017, but CTU opposed the bill. That’s just one example.
