[New post] Pensions put Illinois’ 2024 budget in red by over $4B
Barrington Hills Observer posted: " Illinois state lawmakers approved a record-high $50.6 billion spending plan for fiscal year 2024 at 2:30 a.m. on March 27, despite no Republican support and three Senate Democratic caucus members voting "no" on the bill. L" The Barrington Hills Observer
Illinois state lawmakers shorted pensions by $4.1 billion and killed scholarships for low-income students, but gave themselves pay raises and a new office building. Their budget leaves no room for error as revenue projections drop.
Illinois state lawmakers approved a record-high $50.6 billion spending plan for fiscal year 2024 at 2:30 a.m. on March 27, despite no Republican support and three Senate Democratic caucus members voting "no" on the bill.
Lawmakers had originally anticipated passing the state budget and adjourning their spring session by May 19 but were hung up amid reported revenue declines and higher-than-expected costs.
Despite repeated claims by elected leaders that the budget is balanced, that claim ignores a massive unpaid bill: state pensions.
Appropriations to the five statewide pension funds will fall $4.1 billion below what the plans' own actuaries have determined is required to actually begin paying off the state's pension debt.
While Gov. J.B. Pritzker has touted his administration's handling of the state's pension crisis – including making $200 million in additional pension contributions in the 2024 budget – state budgets continue to shortchange pensions by billions of dollars annually. The effects of year after year of paying in too little has resulted in massive growth in pension debt, which now stands at $140 billion, according to state estimates.
It is likely much worse: independent estimates put the figure at more than $300 billion, using assumptions that are more realistic than the state's optimistic projections. Refusal among elected leaders to consider constitutional pension reform or make full, actuarially determined contributions leaves the current budget inherently unbalanced and jeopardizes the ability of future budgets to deliver core services to Illinoisans.
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