|
 The Teachers' Retirement System's own numbers report the system is underfunded by nearly $40 billion. Illinois' total pension
liability, for five state-managed retirement funds, is $77 billion.
That puts the price tag for retirement for teachers outside of the
city of Chicago at more than half of the state's total pension debt.
Lawmakers in Springfield and local school officials agree that those
numbers don't add up. But there is no agreement on how to change it.
Senate President John Cullerton, D-Chicago, is the latest to suggest
the state may need to push more of the cost of teacher retirement on
local school districts.
"Fifty-six percent of our pension obligations, $4.5 billion this
year, goes to the Teachers’ Retirement System," Cullerton said. "And
they're not state employees, and they don't even cover Chicago."
Chicago teachers have their own retirement fund. Taxpayers in
Chicago and teachers in the city cover most of the costs for it.
Cullerton said it's a valid question to wonder why the state is
guaranteeing retirement benefits for "local" employees.
But Alton School District 11 Superintendent David Elson said
teachers and administrators may be local workers, but they are
working as part of Illinois' education system.
"Education is a state function. If it is not a state function, then
why does the state tell local schools what to do?" Elson asked.
"Teachers and principals are local employees, but only because the
state says that's the way it will be."
Elson scoffs at the notion that Illinois leaders want to pay less
into teachers' pensions.
"How can the state pay less? They still owe us $3.8 million, or
close to that. ... Lawmakers are the ones who shorted the pension
system to begin with," the superintendent said.
Cullerton said he is looking at negotiating whatever solution may be
presented.
House GOP Leader Tom Cross said he is not taking sides on the
specifics of the teachers' retirement plan. But he was quick to say
that if Illinois does not do something soon, a lot of people may
lose their pensions.
"If you're a teacher, you've made your contribution every paycheck,"
Cross said. "You've done nothing wrong. But if we let this go, and
if we put our heads in the sand and don't address it now, it will
only get worse. We will not be able to sustain the system we have."
[to top of second column] |
Crystal Lake School District 47 Superintendent Donn Mendoza agreed
that the system is "broken." But he said the fix is not for the
state to dump its problem on local schools.
"If the solution that is being talked about is to fully shift the
burden (of retirement costs) to local districts, that is truly
troublesome," he said.
Mendoza said his district is doing better than some others, but he
still doesn't see a way Crystal Lake schools could afford to pay
retirement costs. He also said he doesn't think local taxpayers
would go for a tax hike to cover the costs.
Rock Island/Milan School District 41's Bob Beckwith said voters in
the Quad Cities wouldn't go along with new taxes, either. Rock
Island is dealing with a $1.3 million deficit this year. Beckwith
said that adding retirement costs would make the number soar.
"It's very difficult for a district, any district in the state of
Illinois that has financial difficulties right now, to have more
mandated programs that the district has to fund without additional
resources. ... It's going to be difficult for anybody to have to
absorb that kind of cost," he said.
But right now the talk of pension changes, or a shift in payments,
is just that -- talk. Lawmakers have not introduced legislation, and
no one is saying if they expect a vote this spring.
[Illinois
Statehouse News; By BENJAMIN YOUNT]
 |
