Bill Amendment: IL HR0038 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PENSION COST SHIFTING

Status: 2019-01-08 - Session Sine Die [HR0038 Detail]

Download: Illinois-2017-HR0038-House_Amendment_001.html

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AMENDMENT TO HOUSE RESOLUTION 38
AMENDMENT NO. ___. Amend House Resolution 38 as follows:
by deleting everything and replacing it with the following:
"WHEREAS, Article X, Section 1 of the Illinois Constitution
provides our shared principle that "A fundamental goal of the
People of the State is the educational development of all
persons to the limits of their capacities; the State shall
provide for an efficient system of high quality public
educational institutions and services; education in public
schools through the secondary level shall be free; there may be
such other free education as the General Assembly provides by
law; the State has the primary responsibility for financing the
system of public education; and
WHEREAS, Illinois' continuing budget crisis and slow
economic recovery has motivated discussion on how to save the

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State money, including a misguided proposal to shift the
State's funding of the normal pension cost for the State
Universities Retirement System and the Teachers' Retirement
System to local entities, such as school districts and
community colleges, and to public universities; and
WHEREAS, Decades of the State's chronic mismanagement of
funds and failure to adequately fund its five pension systems
has resulted in a ballooning pension payment that has been
crowding out funding to critical State programs and services
for education, human services, and public safety; and
WHEREAS, The FY18 projected normal cost for the State
Universities Retirement System will be $424.9 million and for
the Teachers' Retirement System will be $967.5 million; and
WHEREAS, If these costs were combined they would represent
a pension liability shift from the State to local governments
of $1.392 billion for FY18 alone; and
WHEREAS, Illinois already has one of the largest
residential property tax burdens in the nation; and
WHEREAS, The consideration of a State cost shift of this
magnitude, particularly when it is combined with the Property
Tax Extension Limitation Law, will dramatically impact a school

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district's and community college's ability to allocate funds to
pay for the normal cost of pensions; and
WHEREAS, The Property Tax Extension Limitation Law hinders
the ability of a school district and community college to
increase revenues to accommodate a significant cost shift of
State obligations to local budgets; and
WHEREAS, The proposed cost shift would force significant
local budget reductions, which means teacher layoffs and
reductions in curricular offerings; and
WHEREAS, High property tax burdens in combination with the
pervasiveness of school district financial instability, the
unpredictability in State funds directed towards education,
and a whole host of statutorily required unfunded mandates have
made it especially hard for local school districts to operate
effectively; and
WHEREAS, It is anticipated that the cost shift for the
State Universities Retirement System will force community
colleges and universities to raise tuition in order to cover
the increased costs; and
WHEREAS, The unpredictable nature of pension costs makes it
difficult to provide an accurate account of the total impact of

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a cost shift to local taxing districts, and it is even more
difficult to ask a school district or institution of higher
education to plan for these unknown factors over time; and
WHEREAS, The concept of shifting additional financial
burdens onto the State's already cash-strapped school
districts and institutions of higher education would
ultimately raise property taxes and increase tuition; and
WHEREAS, It is unfair and reckless to transfer an already
well-established State financial responsibility onto local
taxing districts, especially during this time of financial
uncertainty; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE
HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the
normal cost of pensions for our State educators is the
responsibility of the State; and be it further
RESOLVED, That the current budget crisis should not be used
as a reason to shift its financial responsibility for State
pension costs to the local taxpayers."