Tag: Illinois Policy Institute

Categories
responsibility

Stop Digging

If you find yourself in a hole, stop digging.

When it comes to pension systems, the State of Illinois appears shovel in hand, digging to the bottom. The state’s five public employee retirement systems face a combined unfunded liability of $100 billion dollars; they have only 40 percent of what they need to pay the benefits politicians negotiated with public employee unions — the lowest funding level of any state.

The Daily Herald, a suburban Chicago-​area paper, calls a spade a spade: “The shortfall is due largely to decades of legislators skipping or shorting the state’s pension payments — a practice that allowed them to spend that money elsewhere.”

Today, Illinois’ legislators will trudge into Springfield for an expected vote to fix the broken system.

“This deal was made by Speaker Madigan and other politicians behind closed doors,” charges Illinois Policy Institute CEO John Tillman, who fears it makes matters worse.

The bizarre attempt at a fix allows the Legislature to be sued before the Illinois Supreme Court if it fails to make its required ongoing contributions into the pension fund.

The legislation also contains a guarantee clause prioritizing pension payouts before most other state spending. As Tillman says, “Not caring for the poor. Not public safety. Not education.”

And a much ballyhooed option for employees to switch to a 401(k)-style plan turns out to allow only 5 percent of employees to so choose, blocking the rest.

Pay what was promised, but stop digging! Move new workers to 401(k) style plans they can own, with employer contributions handed over every pay period.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability government transparency too much government

Illinois Pension Ills

When it comes to the full faith and credit of the Great State of Illinois, three major credit rating companies judge it the lowest in the union. The problem is that state politicians made pension promises they didn’t pay for and still aren’t.

How bad is it? Illinois’s total unfunded pension liability now tops $200 billion dollars – that’s roughly 250 percent of the state’s annual revenue. And growing.

But take, heart!

Gov. Pat Quinn just said that the massive pension shortfall will grow at a slower pace than previously thought, $5 million (instead of $17 million) a day.

Whoopee!

Folks at the Illinois Policy Institute are a little mystified by this pronouncement, though. The projection seems based more on wishes and hope than the straight dope. Besides, “this isn’t the first time the state has predicted that the growth in the state’s unfunded liability would slow,” Institute Senior Fellow Jonathan Ingram writes, noting that “the exact same prediction was made last year based on the actuarial projections made in fiscal year 2011. The systems predicted that the unfunded liability would grow by ‘only’ $5.3 billion in fiscal year 2012.”

The conventional wisdom blames too many years of the legislature shorting the annual payments to the five public-​employee retirement funds.

Another way to look at it is simply that politicians are a whole lot better at promising than delivering, and defined benefit (rather than defined contribution) pensions are too tempting to trust to any politician.

This is Common Sense. I’m Paul Jacob.

Categories
education and schooling free trade & free markets

Strikes and Rumors of Strikes

The tale of how Chicago’s teachers union beat the Chicago School District, and got their way, is inspiring … if you belong to a union, if you don’t care about costs, if you don’t want to improve the quality of education.

And if you define “inspirational” as inspiring copycats.

That’s happened already, and may break out big time. Illinois’s Evergreen Park District (#124) is now on strike. Lake Forest High School District (#115) teachers recently concluded a strike, with a tentative agreement allegedly being finalized as I type. At least two other district teachers’ unions have declared strikes, and contract negotiations have stalled elsewhere. Add to that, AFSCME bigwigs wrote their 40,000 members that “direct action at the work site” might be necessary. I’m hoping that’s a work stoppage, and not sabotage. (“Direct action” sounds ominous, doesn’t it?)

Paul Kersey, writing on the Illinois Policy Institute website, opines that it “would be unfortunate if union officials chose to shut down key government services at a time when so many Illinoisans are struggling economically, but unfortunately it seems that the results of the Chicago Teachers Union strike may have encouraged many of them to do just that.”

Unions arose in the 19th century as a way to deal with poor working conditions, and, over time, the idea of a closed shop took hold with the specific program of excluding competitive workers. That made it easier to negotiate for higher wages, etc.

While private sector unions fought “evil businessmen” — that’s what I read in school — public employee unions fight … taxpayers. I always wonder how taxpayers feel, being dragooned into the role of “evil” skinflint.

This is Common Sense. I’m Paul Jacob.

Categories
local leaders tax policy

CARE Wins

Communist dictator Mao Tse Tung was fond of quoting Laozi, who said, “A journey of a thousand miles begins with a single step.”

Dennis Collins is neither a Taoist philosopher nor a dictator. The physician’s assistant, husband and father from Jacksonville, Illinois, is fine with that. “I’m just a private citizen,” says Collins. “I saw something that I thought wasn’t right and needed to be righted and it worked out for us.”Dennis Collins VOTE NO TAX INCREASE

What Collins saw was a ballot referendum that would have raised the sales tax in his county. With his area facing a tough economy and job losses, he didn’t think raising taxes made any sense.

So he took the first step; he called some neighbors and, together, they formed “Morgan County CARE.” CARE stands for Citizens Acting for Responsible Education.

“We knew we were outgunned from the start, but we just did the best we could,” Collins recalls in a video produced by the Illinois Policy Institute.

On a budget of just $3,100 and shoe leather, group members went door-​to-​door and made countless phone calls. “We went out and gave an honest message,” Collins explains, “and ended up making a change.” They defeated the tax hike.

“When I go to the store and see the sales tax receipt it feels very good,” Collins explains after the victory at the polls. “I’m thinking about the less fortunate and the elderly that are on fixed incomes and knowing they aren’t going to have to struggle any more than they currently are.”

“Individual citizens do need to step up and try to make change,” says Collins. That’s not the voice of a history-​making dictator or a philosopher, but a community-​protecting American citizen.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

Closed: No Competition

Ancient societies were mostly closed societies. Modern society (at least as conceived by most of America’s “founding fathers”) was to be something very different: open.

But today there’s way too much “managed” competition, basically closing out businesses not on some insider list.

Julie Crowe, a veteran of the armed forces and lifelong resident of Bloomington, Illinois, wanted to start up a van ride service, mainly to drive party-​going Illinois State students safely home. There are big buses for Bloomington revelers, but no vans.  Her new service would have provided interesting competition for existing outfits, and her idea of providing safer, more personal, comfier rides home — arguably better than taxicabs, and certainly better than the buses — smacks of a plausible business plan.

But the city denied her a permit to even try, on the grounds that her proposal wasn’t “in the public interest.”

Preposterous, of course. Or, as her lawyer, Jacob Huebert, puts it,

How can city planners know the “right” number of vehicles to serve the community? They can’t possibly know that, any more than they can know the right number of supermarkets or the right number of restaurants.

Huebert is associate counsel at the Liberty Justice Center, a project of the Illinois Policy Institute, which has as its stated goal ensuring “that the rights to earn a living and to start a business, which are essential to a free and prosperous society, are available not just to a politically privileged few, but to all.”

A great cause. The “eternal vigilance” required to establish and maintain a free, open society means challenging idiotic government encroachments one case at a time.

This is Common Sense. I’m Paul Jacob.

Categories
local leaders tax policy

Hope for the Hopeless

Illinois is hopeless. When John Tillman hears people say that about government in the Land of Lincoln, he gets pretty peeved.

Tillman, head of the Illinois Policy Institute — a think tank offering what it calls “liberty-​based public policy initiatives” — doesn’t think battling big government is hopeless at all. For instance, the Institute helped generate support for transparency legislation that passed. 

And last week, as the state’s legislative session closed, Governor Pat Quinn’s proposed 50 percent income tax hike was soundly defeated … by the state’s very blue legislature.

How did that happen?

Well, the first step is always to believe enough in your fellow citizens to wage a fight for their “hearts and minds.” Hope helps.

Next step? Getting the facts out.

The argument for huge tax increases is always that government can’t survive without the additional money. In a series of media appearances and grassroots events, Tillman and the Institute kept talking about sensible ways to cut spending.

Governor Quinn talked about the painful consequences if government didn’t have more money. Tillman spoke about the painful consequences if working families, already paying high taxes, had to fork over still more dough.

Kristina Rasmussen, the Institute’s Executive Vice President, published a report entitled, “Would My Family Pay Higher Taxes Under Governor Quinn’s Plan?” The answer for the average Illinois family was: Yes — 17 percent more.

Hope wins again. Helped by hard work.

This is Common Sense. I’m Paul Jacob.