Quinn Won’t Say If He’ll Sign Pension Bill

City Officials Warn Of Huge Property Tax Hike If Law Passes

CHICAGO (CBS) – Gov. Pat Quinn will not say if he plans to sign new pension legislation that has Mayor Richard M. Daley upset over increased costs they say could send property taxes skyrocketing.

Lawmakers in the state House and Senate approved legislation this week that requires municipalities to pay more into pension funds over the next 30 years to help catch up underfunded pension systems for local firefighters and police officers. It also reduces benefits for future employees.

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Under the law, cities and other municipalities in Illinois would be required to fund the pensions for their workers at 90 percent by the year 2041.

In the city of Chicago alone, that amounts to some $500 million a year starting in 2015.

“This would be the largest property tax increase in the history of the city of Chicago,” Daley said Thursday.

An older law let Illinois towns avoid paying into pension accounts, and they often did.

Quinn said Friday he needs to analyze the bill, but called it an “important area of reform” that is necessary at the local level.

Chicago officials have warned it could mean a 60 percent increase in property taxes to pay the added costs.

Quinn says he’ll meet with Mayor Daley to talk about his concerns.

The proposal is reminiscent of a law Quinn signed earlier this year reducing benefits for future state employees to help ease the burden of state pension systems that are underfunded by more than $80 billion.

  • Just the Average Joe

    He is not going to sign it. He can’t face up to the financial responsibility thats required, and he is going to bargain with Chicago. In the end the state taxpayer, meaning people outside of the city will be saddled with debt that Daley bargained. These weak kneed politicians can never be counted on to make a difficult decision that is necessary for the financial health, particularly if it might add stress to a government employee. Don’t worry, the end is in sight. IL will be bankrupt within five years and begging for a federal bailout, and our taxes will be raised by force.

  • Ade Smith

    I thank God I no longer live in Chicago.

  • KE

    The rest of municipalities have their own pension burdens to meet — noone other than Chicagoans should have to fund Chicago Police and Firefighter pensions!!!

  • http://jerrysjournal.wordpress.com/2010/12/06/pensions-weekend-of-december-4-2010/ Pensions – Weekend of December 4, 2010 « Jerry's Journal

    […] Won’t Say If He’ll Sign Pension Bill (CBS Chicago) Gov. Pat Quinn will not say if he plans to sign new pension legislation that has Mayor Richard M. […]

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