thecentersquare | Pension contributions amount to nearly one-fourth of the
state’s annual budget and it’s still not at the level actuaries estimate
would bring down the level of unfunded liabilities. This is because the
“Edgar Ramp,” enacted in 1995, that set contributions to track with the
statute, rather than actuarial suggestions.
Gov. J.B. Pritzker has said the state’s budget would have been balanced had it not been for the pandemic-related revenue shortfalls, something that’s been disputed.
In
Chicago, city officials revealed to Aldermen this week that the
COVID-19 crisis has cut into their revenues by an estimated $500
million.
Chief Financial Officer Jennie Bennett told
aldermen on Monday, according to WTTW, that the city could see a $2
billion deficit in the fall should the economy slide into a recession.
Like Illinois, Chicago has seen its unfunded liabilities increase over the years as well.
The
city’s pension debt has grown by $7 billion since 2015, according to a
Chicago Tribune analysis in late 2019 and is scheduled to cost more than
$1 billion annually in the coming years.
“The latest
point that we have is the product of years of effectively not balancing a
budget,” Truth in Accounting Research Director Bill Bergman said.
Its annual City Combined Taxpayer Burden report released
in April showed Chicago taxpayers shoulder $122,100 in deferred costs
from the multiple units of government they reside in.
