 The Illinois State Senate returns to Springfield on Nov. 4 to
consider a contentious pension borrowing plan of up to $4.1 billion,
two days after the polls close for the state's general election.
The plan would allow state government to sell up to $4.1 billion in
bonds that would have to be paid off with interest in eight years.
State government could opt to borrow less money as a result of a
pension reform proposal Gov. Pat Quinn inked earlier this year.
The borrowed money would allow state government to make its
annual contribution to the state's five public employee pension
systems. In years past, the state has struggled to provide its
scheduled yearly payment.
The borrowed money would act as "hard debt" that state government
would owe to lenders with interest. Opponents to borrowing, such as
state Sen. Dave Syverson, R-Rockford, say that borrowing is
essentially "passing the buck" that will force state government to
come up with the money, plus interest, from borrowing.
One alternative to borrowing includes reducing state government
expenses to the point where enough money would be freed to make the
pension payment. But that could mean cuts to other state government
programs such as education and health care.
Another alternative includes deferring the payments. But under
that scenario, the pension systems would have to sell assets that
earn interest, which would further lower the value of already
underfunded pension systems.
The Pew Center for the States recently reported that as of 2008,
Illinois is one of the worst states at contributing to its pension
systems.
State Sen. Mike Jacobs, D-East Moline, said a vote on the
borrowing plan may come down to what the results are for the general
election on Nov. 2.
Jacobs said some senators who end up losing their races can make
votes that would not be popular with constituents.
"One of the benefits of having people lose after an election is
that they can make votes they couldn't make before because they're
afraid of the wrath of the voters. So maybe there would be a few
lame-ducks who would may be for this that didn't think they could,"
he said.
But state Sen. Dave Syverson, R-Rockford, said lame-duck votes
should not be how state government approaches important issues.
"That's not what leadership is. That's being cowardly and that's
not being a representative-type of a government," he said.
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The Illinois House passed the proposal in May by just one vote,
almost completely along party lines. Retiring state Reps. Bill
Black, R-Danville, and Bob Biggins, R-Elmhurst, broke rank and voted
in the affirmative.
After the House vote, Senate President John Cullerton indicated
his chamber did not have the votes to pass the proposal, despite the
extraordinary majority Democrats currently have in the Illinois
Senate.
Gov. Pat Quinn said in a July press conference that Cullerton
would likely introduce the pension borrowing proposal on Nov. 4.
"The members of the Senate, they have a duty to look at a bill
that passed the House dealing with borrowing. We've been told by the
Senate president that that will be addressed, and we expect him to
do it. And when he does it, calls the bill, then (the Senate) will
have a vote and I'm sure it will pass," Quinn said at the time.
Cullerton is counting on bipartisan support to pass the proposal,
much like last year when the chamber passed a similar borrowing
plan, according to a spokesman for the Senate president.
If the Illinois Senate approves by at least a three-fifths
majority, the plan would go to Quinn for consideration.
The pension borrowing plan under consideration is
Senate Bill 3514.
The Illinois Senate is next scheduled to convene on Nov. 4 at 1
p.m.
[Illinois
Statehouse News; By KEVIN LEE]
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