Of course moving the unfunded liability back to school districts and teachers is just another cop out. Districts will need to pass referendums to up taxes, not only to meet new obligations but also to make up for the state’s dereliction of duty all these years. That doesn’t matter to Madigan and Quinn, though. As long as they can find a way to keep taking our taxes and not spend them on the programs they promise to fund, you can be sure they will be glad to pass the blame to anywhere but Springfield. In the end, however, we are the ones stuck with the bill.
This article was originally published in the Kendall Weekly Times
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Good story Joe, the fact remains we have too many over paid retirees who benefitted from poor laws and rules. The rules allowed salaries to jump near retirement age so they got more when they retired. This loop hole is effects many public union employees. When you hear people say they make more money retired than when they worked somthing is definitely WRONG with the system.
http://www.championnews.net/2011/04/05/82981-of-132502-illinois-teachers-pay-nothing-or-little-into-their-pensions/
The pensions have already caused some cities to declare bankruptcy and to forgo paying the pensions. Those retirees have been forced to go back to work, move in with other family members, or end up homeless.
While cities and counties can declare bankruptcy, states cannot. So what does a state do? Raise taxes. What about a state like California where state taxes have to get voter approval? If the voters say no, then the state will have to go to court and the unions may try to get the court to impose an increase it state taxes. In the meantime, the state’s debt will continue to increase and people won’t want to buy bonds to loan the state money. Unlike the feds, states cannot print their own money (which decreases the value of the dollar and causes inflation). The state will be forced to make massive layoffs, increasing unemployment. The states like California in this or similar situations will experience its own “Great Depression.” Illinois and New York are among those states in similar situations. We’ll see what happens, but the future doesn’t look good. In the end, trust in the Lord for your hope, man and governments fail.