The tax funding of Illinois college football programs

Introduction Big-time college football is big-time business. And with big-time business comes big-time money. The United States is undoubtedly an (American) football nation. When the leaves start to fall, we go giddy for the gridiron. While Chicago may be regarded as a pro-football town, college football is no exception. What is sometimes forgotten is thatContinue reading “The tax funding of Illinois college football programs”

What’s the controversy with firefighter pensions?

Governor J.B. Pritzker recently signed a bill which alters cost-of-living adjustments (COLA) for firefighter pensions moving forward. At issue was how pension benefits are given to Chicago firefighters. Previously, any Chicago firefighter who was born on or after January 1st received a non-compounded 1.5% COLA with a cumulative cap of 30% (as long as theyContinue reading “What’s the controversy with firefighter pensions?”

Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2010s)

The following is a continuation of Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2000s) Illinois Public Act 96-0889 (2010) This legislation created a new tier of benefits for public employees hired after January 1, 2011 in lieu of the rising liabilities and was signed April 4, 2010 by Governor Quinn. Tier 1 membershipContinue reading “Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2010s)”

Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2000s)

The following is a continuation of Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 1990s) Overview The State of Illinois’ growing underfunded liabilities was the folly of many and not subjected to a single action. It was the compounded effect of many various decisions made by different individuals over decades. Part IV in ourContinue reading “Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 2000s)”

Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 1990s)

The following is a continuation of Dissecting Illinois’ Pension Problem Part III: Understanding Tiers Overview The State of Illinois’ growing underfunded liabilities was the folly of many and not subjected to a single action. It was the compounded effect of many various decisions made by different individuals over decades. Part IV in our Illinois Pension seriesContinue reading “Dissecting Illinois’ Pension Problem Part IV: History of Neglect (The 1990s)”

Dissecting Illinois’ Pension Problem Part III: Understanding Tiers

The following is a continuation of Dissecting Illinois’ Public Pension Problem Part II: Modeling Pensions. Overview Public employees are separated into two tiers, depending on when they began employment, and each tier contains a different vesting structure for their pension. The two tiers are simply referred to as Tier I and Tier II. Tier I EmployeesContinue reading “Dissecting Illinois’ Pension Problem Part III: Understanding Tiers”

Dissecting Illinois’ Public Pension Problem Part II: Modeling Pensions

What are Pensions? Pensions are money owed to former public employees as severance to their public service and work. Recipients of these benefits in Illinois include teachers, police, firefighters, state employees, judges, and more. Recipients start collecting this benefit at retirement. How Pensions Work Both the pension recipient and Illinois taxpayers pay into a specificContinue reading “Dissecting Illinois’ Public Pension Problem Part II: Modeling Pensions”

Dissecting Illinois’ Public Pension Issue: Part I

The State of Illinois has accumulated roughly $137 billion in public pension debt at the end of 2019. This is money owed to state employees who have retired as a severance to their public service and work. The massive amount of debt is an issue because as the underfunded liabilities grow, it will continue toContinue reading “Dissecting Illinois’ Public Pension Issue: Part I”