Perhaps the most lasting and important part of Gov. J.B. Pritzker’s financial plan for Illinois was not even included in his budget address last week.
For far too long, Illinois has held a shameful worst-in-the-nation status for protecting retirement income for thousands upon thousands of state workers and retirees. The $142 billion in pension debt — unfunded liabilities — means the state has only 45% of the resources needed to cover its obligations.
Pritzker does have a plan, and that makes him the first Illinois governor in 30 years to propose a way out of this seemingly insurmountable pension problem. Nationally prominent pension experts I talked to over the last week expressed pleasant dismay that an Illinois governor at long last is taking on a problem that for decades has ravaged state budgets, driven away investment — and damaged Illinois’ credit ratings, too.
The idea does not come in a vacuum, it’s worth noting. Alternative options are out there, highlighted by one put forward by the Civic Committee of the Commercial Club of Chicago a year ago.
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