Full Text of HR0038 100th General Assembly
HR0038 100TH GENERAL ASSEMBLY |
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| 1 | | HOUSE RESOLUTION
| 2 | | WHEREAS, Illinois' continuing budget crisis and slow | 3 | | economic recovery has motivated discussion on how to save the | 4 | | State money, including a misguided proposal to shift the | 5 | | State's funding of the normal pension cost for the State | 6 | | Universities Retirement System and the Teachers' Retirement | 7 | | System to local entities, such as school districts and | 8 | | community colleges, and to public universities; and
| 9 | | WHEREAS, Decades of the State's chronic mismanagement of | 10 | | funds and failure to adequately fund its five pension systems | 11 | | has resulted in a ballooning pension payment that has been | 12 | | crowding out funding to critical State programs and services | 13 | | for education, human services, and public safety; and
| 14 | | WHEREAS, The FY18 projected normal cost for the State | 15 | | Universities Retirement System will be $424.9 million and for | 16 | | the Teachers' Retirement System will be $967.5 billion; and
| 17 | | WHEREAS, If these costs were combined they would represent | 18 | | a pension liability shift from the State to local governments | 19 | | of $1.392 billion for FY18 alone; and
| 20 | | WHEREAS, Illinois already has one of the largest | 21 | | residential property tax burdens in the nation; and
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| 1 | | WHEREAS, The consideration of a State cost shift of this | 2 | | magnitude, particularly when it is combined with the Property | 3 | | Tax Extension Limitation Law, will dramatically impact a school | 4 | | district's and community college's ability to allocate funds to | 5 | | pay for the normal cost of pensions; and
| 6 | | WHEREAS, The Property Tax Extension Limitation Law hinders | 7 | | the ability of a school district and community college to | 8 | | increase revenues to accommodate a significant cost shift of | 9 | | State obligations to local budgets; and
| 10 | | WHEREAS, The proposed cost shift would force significant | 11 | | local budget reductions, which means teacher layoffs and | 12 | | reductions in curricular offerings; and
| 13 | | WHEREAS, High property tax burdens in combination with the | 14 | | pervasiveness of school district financial instability, the | 15 | | unpredictability in State funds directed towards education, | 16 | | and a whole host of statutorily required unfunded mandates have | 17 | | made it especially hard for local school districts to operate | 18 | | effectively; and
| 19 | | WHEREAS, It is anticipated that the cost shift for the | 20 | | State Universities Retirement System will force community | 21 | | colleges and universities to raise tuition in order to cover |
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| 1 | | the increased costs; and
| 2 | | WHEREAS, The unpredictable nature of pension costs makes it | 3 | | difficult to provide an accurate account of the total impact of | 4 | | a cost shift to local taxing districts, and it is even more | 5 | | difficult to ask a school district or institution of higher | 6 | | education to plan for these unknown factors over time; and
| 7 | | WHEREAS, The concept of shifting additional financial | 8 | | burdens onto the State's already cash-strapped school | 9 | | districts and institutions of higher education would | 10 | | ultimately raise property taxes and increase tuition; and
| 11 | | WHEREAS, It is unfair and reckless to transfer an already | 12 | | well-established State financial responsibility onto local | 13 | | taxing districts, especially during this time of financial | 14 | | uncertainty; therefore, be it
| 15 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE | 16 | | HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the | 17 | | normal cost of pensions for our State educators is the | 18 | | responsibility of the State; and be it further
| 19 | | RESOLVED, That the General Assembly should not use the | 20 | | current budget crisis as a reason to shift its financial | 21 | | responsibility for State pension costs to the local taxpayers.
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