State budget to once again increase state spending, raid teachers' pension fund         

Lack of promised funding for Lincoln Estates facility

[MAY 5, 2006]  SPRINGFIELD -- More than three weeks after the scheduled legislative adjournment date of April 7, Democratic lawmakers have passed a budget that continues to defer current debt obligations, while increasing state spending through continued raids of the state's severely underfunded pension systems and over $200 million from nearly 100 special funds.

Republican lawmakers in the House and Senate unanimously opposed the proposal, which state Sen. Larry Bomke, R-Springfield, explained was funded by raiding Illinois' teachers' and state employees' retirement funds.

"As expected, the state Democratic majority has approved a budget that relies on the pensions of downstate teachers and Illinois' special dedicated funds to finance new government programs and direct millions of dollars in pork projects to Chicago democrats," noted Bomke. "Once again they have approved spending for new projects and initiatives, even though the state owes $2 billion to Medicaid providers and a number of current programs sit underfunded and in need of financial support."

According to the budget plan, downstate teachers' pensions are to be underfunded by approximately $495 million, even as the Chicago Teachers' Retirement System is set to receive $75.2 million -- enough to fully fund that system. The money taken from the pensions of former downstate educators will be used to finance a $438 million increase in education funding.

"I find it interesting that the Chicago Teachers' Pension System is funded at 80 percent, while the downstate and suburban Teachers' Retirement System remains funded at 60 percent -- significantly less than required by current law," Bomke said.

Despite promises during Gov. Blagojevich's gubernatorial campaign in 2002 to reopen the facility, absent from the budget was the $5.5 million needed to reopen the long-awaited Lincoln Estates facility, formerly known as the Lincoln Developmental Center.

"I'm extremely disappointed that the revenue to open Lincoln Estates was not included in this budget," said Bomke. "This facility will not just benefit the community by creating jobs and stimulating the economy, it will provide a much-needed, state-of-the-art facility to serve individuals with disabilities and their families. I supported the governor four years ago with the understanding that he would deliver this funding, and now it doesn't look like he will fulfill his commitment. This situation reinforces why both the governor and his administration lack credibility." 

Bomke concluded by saying that state leadership is guiding Illinois toward a dark financial future.

"Governor Blagojevich claimed to have solved the worst financial crisis in Illinois history, but the reality is Illinois' fiscal climate is such that the state's Democrat leaders are raiding our teachers' pensions of billions of dollars in order to balance another bloated budget," Bomke said. "It's unfortunate that the ramifications of this ill-conceived budget will affect the future taxpayers of Illinois in the form of massive state debt, cuts to state programs and services, and, most likely, tax increases."

[News release from Sen. Larry Bomke]