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The state has until the end of spring session to approve a
budget that is set to begin July 1.
One of the issues lawmakers are working to address is the
state's unfunded pension debts.
Illinois' five statewide pensions system had a total unfunded
liability of $140 billion in the fiscal year 2022.
Ted Dabrowski, president of Wirepoints, said until the state
shores up its pension problem, taxes will continue to increase.
"The real issue is that we owe tons of money, more than any
other state in the country, in pensions to public sector
employees," Dabrowski told The Center Square. "Because we have
not set aside the money, we do not have the money to pay for it.
The government is going to have to come after everybody with
higher and higher taxes."
State Sen. Robert Martwick, D-Chicago, recently proposed a
graduated income tax to increase revenue for the state as a way
to avoid cuts.
"We are on a path to a place where the state will once again
have to cut funding for education, essential services, public
transportation, we will stop investing in our roads, and our
bridges will crumble," Martwick told The Center Square. "Because
we are not paying attention to that."
Martwick also said the state needs to honor its promise to deal
with the pension debts.
"The bottom line is we made a commitment to pay down our pension
debts, everyone said to make a commitment and stick to it,"
Martwick said. "If you take that and let all of our spending
grow by a historic average, which is quite low in Illinois, we
fall way short. That is the pending financial catastrophe."
Republicans argue the state needs to control spending and warn a
progressive income tax will give the state a "blank check," and
taxpayers "don't trust" the state. Voters rejected a progressive
tax proposal in 2020.
Illinois has seen large companies leave the state due to high
taxes and crime levels. The state has also seen nine straight
years of population decline. Dabrowski said these problems will
continue without pension reform.
"It
is really easy to leave Illinois right now and just say 'I do
not want more taxes and I do not want to pay those unfunded
pensions debts,' and people leave," Dabrowski said. "Then it
creates a vicious cycle, as more people leave, less companies
want to be here."
Gov. J.B. Pritzker delivers his budget and State of the State
address Feb. 15 in Springfield. Lawmakers will then take that
proposal and craft a plan to be approved during spring session.
Andrew Hensel reports on issues in Chicago and
Statewide. He has been with The Center Square News since April
of 2021 and was previously with The Joliet Slammers. |
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