Center for Tax and Budget Accountability

Illinois Issues: The Next Pension Time Bomb

Jul 2, 2015

Illinois has more than $100 billion in pension debt. So far, attempts to fix it have been mostly illegal.


  Opponents of Governor Pat Quinn's proposed income tax increase say it will chase jobs out of Illinois. A new report that challenges that assumption.

What to do about Illinois' expiring income tax hike has been the star of the debate this spring. The governor threatens cuts unless its extended, while Republican leaders say keeping the higher tax rate is a bigger threat to the economy.

Ralph Martire, director of the Chicago-based Center for Tax and Budget Accountability, says that's a misunderstanding. He says property taxes are the true obstruction of economic growth.

Speaker Michael Madigan
Amanda Vinicky/WUIS

The Illinois General Assembly approved sweeping cuts to state employee pensions Tuesday. The move comes after years of stalemate over how to address a hundred-billion dollar liability — the worst-funded pension plans of any state.