What Rauner’s Pension Proposal Would Mean for Chicago

Illinois Gov. Bruce Rauner unveiled his pension reform proposal last week.

We’ve already gone over what it would mean for state workers. But the overhaul would be significant for the city of Chicago, as well.

For one, Rauner supports Emanuel’s plan to build a casino and use the revenues to pay down pension debt. Rauner’s plan would also give the city an extra 15 years to bring its public safety pension funding up to snuff.

From the Associated Press:

Rauner’s plan would give Chicago and other local governments until 2055 — rather than 2040 — to get their police and fire pension systems to 90 percent funding, thereby reducing the annual payment. It also states that revenue from a future Chicago casino, which the Legislature would still need to approve, would go to the police and fire pensions.

The governor also is proposing the state pick up the employer costs for Chicago Public Schools’ teacher pensions. Currently those costs are covered by Chicago taxpayers, even though the state makes the payments for other Illinois school districts.

[…]

Rauner wants to give local governments the ability to file Chapter 9 bankruptcy — an idea he’s pitched as a possible solution to Chicago Public Schools’ financial mess.

Democrats and unions are staunchly opposed to the legislation, largely for the way it handles collective bargaining and cuts benefits.

By Steven Vance [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons