The Illinois Senate considered several contentious bills this week, including a measure to reduce the healthcare subsidy for retired state employees.
On May 10, Illinois lawmakers took what proponents acknowledged was a difficult first step to bringing the state's pension system back to solvency with the approval of Senate Bill 1313. The legislation passed on a 31-20 vote.
The measure repeals the state's health insurance subsidy, of up to 100 percent, for retired public employees with 20 years or more of service. The bill directs the state's Department of Central Management Services to issue a retiree health insurance premium payment plan for retirees in the five state pension systems, including state employees, university employees, lawmakers and judges.
The premium plan is subject to approval by the Legislature's Joint Committee on Administrative Rules. The measure now goes to the Governor, who has said he will sign it.
Proponents of the legislation acknowledged that the vote was difficult, but said it was necessary to get state spending under control. Lawmakers who voted for the measure said that in order for the Democrats’ 67 percent tax hike to expire as promised, the state must reduce spending. They also pointed out that Illinois has the worst-funded pension system in the nation and that pension costs must be brought under control or the system could collapse. The Fiscal Year (FY) 2013 cost of the health insurance subsidy is $877 million.
While opponents acknowledge the need to reduce state obligations, they noted that the measure will not actually reduce spending but instead subsidize spending by requiring state retirees to pay more. Those who voted against the measure argued that the state must control costs—not push them off onto others.
The state’s scandal-plagued legislative scholarship program is one step closer to elimination, said State Sen. Christine Radogno (R-Lemont), who is a co-sponsor of legislation (HB 3810) to end the General Assembly tuition waiver program, which was approved on May 2 by the Senate Executive Committee.
“This is another step forward to good public policy, and I am happy that we could pass the legislation in a bipartisan manner,” said Radogno, a long-time advocate for abolishing the costly perk.
Illinois media has uncovered a slew of abuses relating to the General Assembly Scholarship Program that stretches back to the 1980s. Allegations of impropriety continue to surface, which in some instances have led to federal investigations into evidence that lawmakers awarded the scholarships to friends, lobbyists and campaign donors.
Hoping to prevent further credit rating downgrades, Governor Quinn unveiled
his proposed changes in state public employee pensions on Friday, April 20. The
Governor's plan received generally favorable reviews from Senate Republican
Leader Christine Radogno (R-Lemont) and House Republican Leader Tom Cross
(R-Oswego).
Both Cross and Radogno have long warned that the state must get its public
pension debt under control. Illinois has the worst-funded pension system in the
nation.
The Governor called for public employees to pay more into the system,
reducing the annual Cost of Living Adjustment for retirees and increasing the
retirement age to 67. Under the Governor's plan, employees would not be required
to accept the new requirements, but those that do not would have to pay more
for health insurance in retirement and would not have future pay raises counted
toward their retirement income.
Sen. Radogno called the Governor's plan "a huge step in the right
direction." However, both Republican leaders raised concerns about the
Governor's continued call for shifting about $1 billion in public pension costs
onto local property taxpayers. Quinn, Senate President John Cullerton
(D-Chicago) and House Speaker Michael Madigan (D-Chicago) have all endorsed a
plan to require local school districts to pay pension costs for teachers that
are currently picked up by the state. Radogno and Cross point out that such a
cost shift would not reduce pension costs, but simply force taxpayers to pay
more in property taxes.
State Senator Dale Righter and State Representative Patti Bellock responded April 19 to Governor Quinn latest Medicaid proposal, which includes a tax increase of nearly $440 million.
A vote on a measure to eliminate the state’s scandal-plagued legislative scholarship program has been delayed once again said State Sen. Christine Radogno (R-Lemont), who is frustrated members of the Senate Executive Committee weren’t able to vote on the legislation as anticipated.
“I’m disappointed that Senate leadership would use a parliamentary maneuver in order to stall a vote on this issue,” said Radogno, who has been long-time leader of the charge to abolish the costly perk. “Maybe I’m cynical, but it seems unnecessary to send any of these bills to subcommittee. Eliminating legislative scholarships is not a new issue. One of the bills has 38 Senate sponsors—more than enough sponsors to pass the bill.”
Radogno said that three bills to end the General Assembly tuition waiver program have been sent to an Executive Subcommittee on Education, including House Bill 3810, which has 38 senate sponsors, Senate Bill 2932, which she introduced in February, and Senate Bill 2914.
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