nois’ Amendment 1 Would Cement Fiscal Track Wreck into Law //

Illinois residents may think that things aren’t getting any worse economically. But wait! They’ll vote on Nov. 8 to approve an amendment to the state constitution that would make it more secure.

Rising pension costs in the public sector are already leading to property-tax increases and causing cuts in public safety and other vital services. Amendment1 is now available. Although it is advertised as a workers’ rights bill the truth is that it guarantees that taxpayers will never pay less than what they currently pay.

Amendment 1 is one of the other provisions that states that the fundamental right for bargaining–which can include all aspects of pay, benefits, hours, terms of employment, hiring and firing procedures- -cannot be reduced, regardless if the state finds itself in fiscal distress.

The amendment would also enshrine public employees’ right to negotiate “economic wellbeing” rights at the expense of Illinois taxpayers. The term “economic wellbeing” is not defined in the amendment, state law or the National Labor Relations Act. Therefore, the term’s meaning could be broad and include public employees’ housing allowances as advocated by the Chicago Teachers Union.

While no other state has passed a constitutional amendment similar to Amendment 1, Illinois has had its own experience with a similar provision that only applies to pensions for public employees. The consequences have been severe.

Public employees’ unions sued after lawmakers passed a pension-reform bill in 2014 to reduce future costs. The Illinois Supreme Court ultimately interpreted the state constitution’s Pension Protection Claus, which prevents public employees from having their pensions “diminished”, to mean that reforms to current employees’ retirement benefits cannot even be made prospectively.

This means that the pension system public employees are required to have when they retire years later must be the same or better as the one they had on their first day.

This is a problem because the unfunded pensions in Illinois are growing and enormous. According to the American Legislative Exchange Council’s “Unaccountable, Unaffordable” report about public pension liabilities, Illinois’ pension system has only 21% funding and $533 billion in unfunded obligations. This amounts to $41,700 for an Illinois resident and $167,000 for a family with four. These costs will need to be covered by higher taxes.

However, taxes in Illinois are already high and pensions are so burdensome, even if Illinois had access to federal COVID-19 funds , it contributed only 71% to its pensions in 2021.

Other public services are being squeezed out by immutable pension costs. According to the Illinois Policy Institute (Illinois Policy Institute), inflation-adjusted Illinois pension spending increased 584% from 2000 to 2022, employee insurance increased 107%, K-12 education spending rose 25%, and all other spending fell 20%

In Illinois, 39% went to paying teachers’ pensions in the 2021 schoolyear. Even more is the imbalance in the proportion of new spending. Between 2009 and 2014, 89% total new education spending in Illinois was spent on teachers’ pensions. The average Illinois teacher is 58 years old and receives an pension of $82,222. This is nearly 20% more than the $69,300 average teacher.

crime is on the rise, especially in areas like Chicago. public sector pensions have become a problem. Localities have had to reduce police and firefighters because of high pension costs.

Harvey, Ill. had to lay off half its fire department and 13 officers in 2018 to meet its obligations to its firefighters and retired police officers. A court ordered Harvey, Ill. to impose an additional property tax levy for its firefighters’ pension fund, even though property taxes were already increasing. Illinois has more six-figure pensions retired police officers than active police officers who receive six-figure salaries.

Peoria and Geneseo, East St. Louis and North Chicago all faced similar cuts to their local budgets. They also saw a reduction in the number of public safety personnel. Property-tax increases were also a result of high pension costs. These laws prevent future reforms from happening.

Amendment 1 would extend the permanency and irreconcilable pension liabilities of Illinois to the entire public sector compensation, and beyond.

Negotiations could be made between public sector unions and politicians to provide: 10% annual wage increases; six weeks vacation; six months paid family leave; generous housing allowances and transportation allowances; and other stipulations that make removing destructive or obnoxious public employees even more difficult.

Future lawmakers would be prohibited from trying to reduce excessive costs or harmful practices. Amendment 1 stipulates that the law cannot be changed in any other direction than the one that is preferred by public sector unions.

Illinois residents will suffer from ever-increasing taxes, reduced public security, poor schools, as well as more residents fleeing the state.

The Illinois Policy Institute estimates that Illinois’ average family’s property taxes will increase by $2,100 in the next four-years. This assumes that the status quo is maintained. However, if Amendment 1 is passed, public employees’ unions will be able to negotiate higher wages and benefits as well as virtually unlimited provisions under “economic welfare” then these costs will continue rising and fewer people will have to pay them.

Amendment 1 is not what Illinois residents or businesses need.

Instead of expanding a law already insolvent, Illinois should give its citizens the opportunity to amend the state constitution’s pension clause. This will allow lawmakers to enact common-sense reforms that protect workers’ pensions while also preventing them from going bankrupting the state or local governments.

Federal taxpayers also need Amendment 1. They are already having to bailout private sector unions’ broken promises . A public sector bailout for pensions would cost much more. Amendment 1 will push Illinois closer towards the federal bailout.

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The post Illinois’ Amendment 1 Would Cement Financial Train Wreck Into Law was first published on The Daily Signal.