From State Rep. Marty McLaukghlin:
McLaughlin: No More Magic Bailouts — Illinois Taxpayers Face the Pension Reckoning Alone
BARRINGTON, Ill. — State Representative Martin McLaughlin (R-Barrington Hills) today issued the following statement regarding Chicago’s latest pension numbers and the majority party’s continued refusal to confront Illinois’ growing fiscal challenges.
“After another year of strong market returns — between 11 and 14 percent — and record contributions, Chicago’s unfunded pension liability still grew by half a billion dollars to $36.4 billion.
“The Police and Fire pension funds remain only about 25 percent funded.
“Combined, the city’s four pension funds hold just 28 cents for every dollar they owe,” said McLaughlin.
“Statewide, Illinois continues to rank last in the nation.
“Recent rankings place Illinois’ pension systems at roughly 52 percent funded, with more than $200 billion in unfunded liabilities.
“Compare that 52 percent to our Midwest neighbors:
- Wisconsin is 94 percent funded,
- Iowa 92 percent,
- Missouri 81 percent,
- Indiana and Ohio 79 percent, and
- Michigan 75 percent.
“They made the difficult decisions to fund the promises they made.
“Illinois has too often responded with denial and additional benefit enhancements without a sustainable funding plan.
“A significant portion of Chicago’s latest increase in pension liabilities stems from another benefit enhancement approved by the majority party last year.
“We all agree our police officers and firefighters deserve competitive retirement benefits.
“However, every additional commitment must be matched with responsible budgeting.
“That means reducing spending on special-interest projects and prioritizing the needs of lawful Illinois residents.
“Meanwhile, anyone who points out these financial realities is too often dismissed or attacked, with claims that Illinois’ fiscal problems are somehow the fault of the current federal administration.
“The facts tell a different story.
“Illinois’ pension crisis is the product of decades of decisions made in Springfield and Chicago, including the Edgar pension funding ramp and years of Madigan fiscal mismanagement that have left taxpayers with an ever-growing burden.
“There is no more magic $10 billion federal bailout coming—that experiment ended with the COVID relief funds.
“Markets will not always deliver double-digit returns, and political arrogance is not a funding strategy,” said McLaughlin.
“The bill is coming due, and Illinois families will pay the price through higher property taxes and public services crowded out by ever-increasing pension costs.”
Rep. McLaughlin concluded, “The majority party’s refusal to confront reality has real consequences for every Illinois taxpayer. It’s time for responsible leadership and adult supervision.”
