Latest news with #JillJaworski
Yahoo
a day ago
- Business
- Yahoo
Editorial: Chicago's Springfield delegation socks it to the city's taxpayers with reckless pension bill
The fiscal hits just keep coming for Chicago, this time courtesy of the city's representatives and senators in Springfield. The latest fiasco played out in the final hours of the General Assembly's spring session, with the passage of legislation sweetening pension benefits for Chicago police and firefighters hired beginning in 2011, the first year of less generous 'Tier 2' benefits ironically meant to help the state and municipalities close their yawning pension deficits. The measure was passed so hurriedly that city officials appeared caught flat-footed and weren't able to say how much the changes will cost Chicago taxpayers over the long haul. Rest assured, though, the tax bill will be substantial. Chicago Chief Financial Officer Jill Jaworski, who lodged her opposition to the bill on behalf of the city shortly before its passage, told senators it would cost the city an estimated $52 million beginning in 2027, its first year in effect. Chicago faces a deficit exceeding $1 billion in 2026 and a similarly daunting hole for 2027. Here's how seriously Springfield took Jaworski's objections: The bill passed unanimously in both chambers. After voicing some opposition in committee, Republicans voted for it on the floor mainly because Chicago's Springfield delegation was in unanimous support. After all, there isn't a single GOP House member or senator from Chicago, and the bill raises taxes in Chicago alone. 'I think a lot in the Republican caucus said, 'Well, if this is what all of the voices representing Chicago want to do, who are we to disagree with them?'' Republican state Sen. Li Arellano Jr. from downstate Dixon told the Tribune. Many Chicago lawmakers will be boasting as we approach yet another campaign season about how they held the line on income and sales taxes in a particularly tight budget year in Springfield. Voters shouldn't be fooled. Every single one of those legislators acted to force inevitable future property tax hikes. Pension contributions are mainly funded by property taxes. Jaworski in her fruitless arguments against the bill called it an 'unfunded mandate.' And indeed it is. Arguments for the measure — which will raise the ceilings for annual pension payments, drive up those annual payouts for many beneficiaries via formulaic challenges in how they're determined, and boost cost-of-living increases — principally relied on fairness. Downstate police and fire retirees got those richer pension changes in 2019 when their disparate pension funds were consolidated. Since then, unions representing Chicago first responders have argued for the same treatment. We understand the desire to reward police officers and firefighters, who especially in the city of Chicago perform dangerous work and deserve our gratitude. But a pension, however sweet, won't be worth much if it helps drive the sponsor — in this case the city of Chicago — into insolvency. As of the end of 2023, Chicago's police pension fund held just 21.7% of the assets needed to meet its current and future obligations. Depressingly, that status was slightly worse than the 21.8% recorded in 2018. The city's firefighters fund was slightly worse off, with 21.6% of the assets required to be considered fully funded. The two funds at year-end 2023 together accounted for about $20 billion of Chicago's total $37 billion in unfunded pension liabilities. Joe Ferguson, president of the Civic Federation, told the Tribune he thought the state legislation would add billions to the two funds' long-term liabilities. With the plans so severely underfunded, just about the last thing rational people would do right now would be to add substantially to their liabilities. But that's what lawmakers just did. And where was Mayor Brandon Johnson in this debate? He and his intergovernmental affairs team seemed to be missing in action when it came to this extraordinarily damaging bill. It's troubling that lawmakers voted unanimously for a measure with such serious fiscal implications — and so little cost analysis. Who other than CFO Jaworski was raising alarms? The Johnson administration has made annual contributions to the city's retirement plans over and above what's required in law through a series of tough budgets. Those taxpayer contributions, well into the billions each year now, make no dent in these pension deficits if officeholders keep moving the goalposts farther away through more generous benefits. Common sense must prevail at some point. As difficult and embarrassing as it would be given the unanimous votes, Johnson ought to ask Gov. JB Pritzker to veto this bill in the interest of negotiating something more reasonable. And if the mayor won't do so, Pritzker should wield his veto pen anyway. Someone — anyone — with the power to do so needs to protect Chicago taxpayers. Submit a letter, of no more than 400 words, to the editor here or email letters@
Chicago Tribune
a day ago
- Business
- Chicago Tribune
Editorial: Chicago's Springfield delegation socks it to the city's taxpayers with reckless pension bill
The fiscal hits just keep coming for Chicago, this time courtesy of the city's representatives and senators in Springfield. The latest fiasco played out in the final hours of the General Assembly's spring session, with the passage of legislation sweetening pension benefits for Chicago police and firefighters hired beginning in 2011, the first year of less generous 'Tier 2' benefits ironically meant to help the state and municipalities close their yawning pension deficits. The measure was passed so hurriedly that city officials appeared caught flat-footed and weren't able to say how much the changes will cost Chicago taxpayers over the long haul. Rest assured, though, the tax bill will be substantial. Chicago Chief Financial Officer Jill Jaworski, who lodged her opposition to the bill on behalf of the city shortly before its passage, told senators it would cost the city an estimated $52 million beginning in 2027, its first year in effect. Chicago faces a deficit exceeding $1 billion in 2026 and a similarly daunting hole for 2027. Here's how seriously Springfield took Jaworski's objections: The bill passed unanimously in both chambers. After voicing some opposition in committee, Republicans voted for it on the floor mainly because Chicago's Springfield delegation was in unanimous support. After all, there isn't a single GOP House member or senator from Chicago, and the bill raises taxes in Chicago alone. 'I think a lot in the Republican caucus said, 'Well, if this is what all of the voices representing Chicago want to do, who are we to disagree with them?'' Republican state Sen. Li Arellano Jr. from downstate Dixon told the Tribune. Many Chicago lawmakers will be boasting as we approach yet another campaign season about how they held the line on income and sales taxes in a particularly tight budget year in Springfield. Voters shouldn't be fooled. Every single one of those legislators acted to force inevitable future property tax hikes. Pension contributions are mainly funded by property taxes. Jaworski in her fruitless arguments against the bill called it an 'unfunded mandate.' And indeed it is. Arguments for the measure — which will raise the ceilings for annual pension payments, drive up those annual payouts for many beneficiaries via formulaic challenges in how they're determined, and boost cost-of-living increases — principally relied on fairness. Downstate police and fire retirees got those richer pension changes in 2019 when their disparate pension funds were consolidated. Since then, unions representing Chicago first responders have argued for the same treatment. We understand the desire to reward police officers and firefighters, who especially in the city of Chicago perform dangerous work and deserve our gratitude. But a pension, however sweet, won't be worth much if it helps drive the sponsor — in this case the city of Chicago — into insolvency. As of the end of 2023, Chicago's police pension fund held just 21.7% of the assets needed to meet its current and future obligations. Depressingly, that status was slightly worse than the 21.8% recorded in 2018. The city's firefighters fund was slightly worse off, with 21.6% of the assets required to be considered fully funded. The two funds at year-end 2023 together accounted for about $20 billion of Chicago's total $37 billion in unfunded pension liabilities. Joe Ferguson, president of the Civic Federation, told the Tribune he thought the state legislation would add billions to the two funds' long-term liabilities. With the plans so severely underfunded, just about the last thing rational people would do right now would be to add substantially to their liabilities. But that's what lawmakers just did. And where was Mayor Brandon Johnson in this debate? He and his intergovernmental affairs team seemed to be missing in action when it came to this extraordinarily damaging bill. It's troubling that lawmakers voted unanimously for a measure with such serious fiscal implications — and so little cost analysis. Who other than CFO Jaworski was raising alarms? The Johnson administration has made annual contributions to the city's retirement plans over and above what's required in law through a series of tough budgets. Those taxpayer contributions, well into the billions each year now, make no dent in these pension deficits if officeholders keep moving the goalposts farther away through more generous benefits. Common sense must prevail at some point. As difficult and embarrassing as it would be given the unanimous votes, Johnson ought to ask Gov. JB Pritzker to veto this bill in the interest of negotiating something more reasonable. And if the mayor won't do so, Pritzker should wield his veto pen anyway. Someone — — with the power to do so needs to protect Chicago taxpayers.
