The editors of the Chicago Tribune tentatively support Gov. Pritzker’s proposal to consolidate the suburban and downstate police and firefighter pensions funds:
Gov. J.B. Pritzker is getting behind a proposal that could begin to ease pension pressure on property taxes. A Pritzker task force recommends consolidating the suburbs’ and downstate’s roughly 650 separate pension funds for firefighters and police into two main accounts. Pooling the assets of all those local funds would deliver greater annual investment returns, and perhaps reduce the expensive gaps taxpayers have to fill when investments fall short.
Pension problem solved? Not even close. But it’s a step toward bending the curve. Hundreds of municipalities face the pension monster that is gobbling up resources — and driving employers and other residents to flee Illinois. Pritzker says he’ll push lawmakers to pass legislation allowing for consolidation during the fall veto session, which begins Oct. 28. That’s ambitious.
So, what’s not to like about the plan? When the consolidated fund falls short, as it most certainly will, it puts Chicagoans on the hook for the underfunded pensions of every police officer or firefighter in the State of Illinois rather than just those of Chicago. A vibrant, fiscally sound Chicago will attract people to Illinois. A bankrupt Chicago with even higher property taxes than it has now will drive them away.
If a provision to rebate to Chicagoans the proportion of their state taxes used to pay police and firefighter pensions it would be more just. We’re already paying the pensions of teachers who never taught in Chicago as well as Chicago teachers.
We had a company in workout once. So we consolidated it with a stellar performing company, draining its resources. The latter company was thrilled.
OK, I made that up. Pritzker’s solution is ludicrous on its face, and he’s a clown of a man.