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Are Senate Democrats setting up another raid of teachers'
pensions? Are Senate Democrats moving legislation into place
that will be used to raid funds from the Chicago teachers' pension
fund? Last year, those same legislators raided $2.1 billion from the
pensions of downstate and suburban teachers, among others.
During the March 23 meeting of the Senate Pensions Committee, I
asked state Sen. Iris Martinez, chair of the committee, for her
assurance that House Bill 2469 would not be used to authorize a
pension holiday for the Chicago public school district. She told the
committee she cannot provide that assurance right now.
The Chicago Sun-Times reported on Jan. 23 that the Chicago Public
Schools projected a budget shortfall of $328 million. Arne Duncan,
chief executive officer of the school district, has stated that a
solution to this deficit could be to defer $69.4 million of the
required pension contribution from Chicago Public Schools. Thus we
are expecting that there will be a Chicago "pension holiday," which
needs to be legislated by the General Assembly and signed by the
governor. We are concerned that House Bill 2469 will be used as a
vehicle bill for that purpose.
House Bill 2469 was passed out of the Senate Pensions Committee
March 23 with no Republican support. The deadline for Senate
committee consideration of House bills was March 24.
Senate committee advances timberland assessment compromise
The Senate State Government panel has advanced a measure to halt
a new timberland assessments procedure from taking effect, giving
lawmakers time to come up with a uniform, statewide standard that is
fair and equitable for timberland assessments.
House Joint Resolution 95 calls on the Department of Revenue to
maintain the assessments at the tax year 2005 level for a period of
two years. The resolution also creates a 12-member task force to
study the issue, come up with a solution and submit a report by Dec.
31.
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 At issue are rising property taxes on timberland as a result of
the Illinois Department of Revenue's efforts to obtain more accurate
assessments of farmland throughout the state. The Department of
Revenue is requiring numerous counties to implement a new procedure
for assessing timberland, which could result in higher assessments
for numerous forest properties -- and ultimately higher property
taxes for timberland property owners. Higher taxes could leave
property owners with no choice but to develop their land.
House Joint Resolution 95 moves to the Senate floor for further
consideration.
College Illinois enrollment deadline is April 3
Families wanting to invest in their children's future college
education at today's prices have until April 3 to participate in the
eighth annual enrollment period for College Illinois, the state's
529 prepaid tuition program.
The program is completely tax-exempt in Illinois, and its
designation as a 529 plan ensures that contract earnings are also
exempt from federal income tax.
Different plans are available and can be purchased with a
lump-sum payment or monthly installments. The program allows the
purchaser to pay for education ranging from one community college
semester up to four years at a public university.
Contract benefits also may be used at Illinois private colleges
and at out-of-state colleges, both private and public. Once a plan
is purchased, anyone -- grandparents, relatives, family friends --
can make a payment on behalf of the beneficiary.
Since the program was established in 1997, more than 50,000
contracts, representing 154,000 years of prepaid college, have been
purchased.
Information and applications are available by visiting
www.collegeillinois.com
or by calling toll-free, 1 (877) 877-3724.
[Column from
Sen. Bill Brady] |
