The budget Gov. Pat Quinn presents to lawmakers this week is "hard and difficult" because of Illinois' worst-in-the-nation pension problem, but the contract agreement reached last week with the state's largest union is a positive step forward, the Chicago Democrat said Monday.
Quinn's budget address is Wednesday. His office has projected roughly $400 million in cuts to education and reductions to public safety and economic development. The news comes as Illinois faces roughly $97 billion in unfunded pension liability and $9 billion in unpaid bills.
"It's obviously going to be a hard and difficult budget because of the pension challenge primarily," he told reporters after an unrelated meeting in downtown Chicago. "We have to lay out the facts for the budget of the coming fiscal year and definitely the members of the Legislature have to come to the realization that pension reform is imperative if we're going to have a better budget in the future."
For decades, legislators didn't fully fund pension payments, causing the massive shortfall. Illinois has been trying to catch up, but costs grow annually. In 2008, the pension payment took up 6 percent of the state's general funds budget. When the fiscal year starts in July, it'll be more than 16 percent.
Attempts at an overhaul have been unsuccessful, though there are several pension proposals on the table.
"The fact that pension reform hasn't happened yet has caused serious repercussions for other parts of the budget, that includes education," Quinn said. "I'm going to try and present that to the members of the General Assembly and to the people of Illinois, what our choices are."
He said the recent tentative agreement with the American Federation of State, County and Municipal Employees Council 31 in which workers will pay more of their health costs was "a good step forward" in helping the state's financial outlook. The union agreement was reached after 15 months of negotiating.
The agreement is one "that serves the taxpayers well," Quinn said.
Thursday, May 16 2013 9:49 PM EDT2013-05-17 01:49:53 GMT
Mayor Emanuel will celebrate two years in office by unveiling "Elevate Chicago" on Thursday, a series of construction projects to improve Navy Pier and McCormick Place.
Mayor Emanuel will celebrate two years in office by unveiling "Elevate Chicago" on Thursday, a series of construction projects to improve Navy Pier and McCormick Place.
Monday, February 25 2013 1:41 PM EST2013-02-25 18:41:37 GMT
Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films.
Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films.
Anthony Weiner's run for a renaissance is officially on.
In running for mayor, Anthony Weiner is seeking to get past the tawdry-tweeter punch line that has dogged him since his congressional career imploded two years ago. And while he's facing an uphill sprint, his campaign...
Wednesday, May 22 2013 8:53 AM EDT2013-05-22 12:53:15 GMT
Illinois' congressional delegation has asked President Obama to add 16 Illinois counties to the list of those eligible to receive disaster aid after last month's flooding.
Illinois' congressional delegation has asked President Obama to add 16 Illinois counties to the list of those eligible to receive disaster aid after last month's flooding.
Monday, May 20 2013 5:52 PM EDT2013-05-20 21:52:14 GMT
Gov. Pat Quinn said Illinois lawmakers have a chance to make history on two fronts this month by approving a plan to fix the state's decades-old pension crisis and legalizing same-sex marriage.
Gov. Pat Quinn said Illinois lawmakers have a chance to make history on two fronts this month by approving a plan to fix the state's decades-old pension crisis and legalizing same-sex marriage.
Monday, May 20 2013 3:05 PM EDT2013-05-20 19:05:27 GMT
Former White House social secretary Desiree Rogers has been appointed to head the board of a government-supported nonprofit that promotes Chicago as a tourism and convention destination.
Former White House social secretary Desiree Rogers has been appointed to head the board of a government-supported nonprofit that promotes Chicago as a tourism and convention destination.
Republicans call them "scandals." Democrats call them "fishing expeditions." Whatever the case, the Obama administration finds itself trying to fix three big problems this week. FOX's Bret Baier reports.
Republicans call them "scandals." Democrats call them "fishing expeditions." Whatever the case, the Obama administration finds itself trying to fix three big problems this week. FOX's Bret Baier reports.
