The budget Gov. Pat Quinn presents to lawmakers this week is "hard and difficult" because of Illinois' worst-in-the-nation pension problem, but the contract agreement reached last week with the state's largest union is a positive step forward, the Chicago Democrat said Monday.
Quinn's budget address is Wednesday. His office has projected roughly $400 million in cuts to education and reductions to public safety and economic development. The news comes as Illinois faces roughly $97 billion in unfunded pension liability and $9 billion in unpaid bills.
"It's obviously going to be a hard and difficult budget because of the pension challenge primarily," he told reporters after an unrelated meeting in downtown Chicago. "We have to lay out the facts for the budget of the coming fiscal year and definitely the members of the Legislature have to come to the realization that pension reform is imperative if we're going to have a better budget in the future."
For decades, legislators didn't fully fund pension payments, causing the massive shortfall. Illinois has been trying to catch up, but costs grow annually. In 2008, the pension payment took up 6 percent of the state's general funds budget. When the fiscal year starts in July, it'll be more than 16 percent.
Attempts at an overhaul have been unsuccessful, though there are several pension proposals on the table.
"The fact that pension reform hasn't happened yet has caused serious repercussions for other parts of the budget, that includes education," Quinn said. "I'm going to try and present that to the members of the General Assembly and to the people of Illinois, what our choices are."
He said the recent tentative agreement with the American Federation of State, County and Municipal Employees Council 31 in which workers will pay more of their health costs was "a good step forward" in helping the state's financial outlook. The union agreement was reached after 15 months of negotiating.
The agreement is one "that serves the taxpayers well," Quinn said.
Monday, February 25 2013 1:41 PM EST2013-02-25 18:41:37 GMT
Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films.
Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films.
Tuesday, February 5 2013 3:09 PM EST2013-02-05 20:09:54 GMT
Millions and millions of people tuned in to watch the Super Bowl, and including our friends serving overseas. Thousands of Chicago-style pizzas were sent overseas Tuesday.
Millions and millions of people tuned in to watch the Super Bowl, and including our friends serving overseas. Thousands of Chicago-style pizzas were sent overseas Tuesday.
Britain is bracing for clashes with right-wing extremists and possible copycat terror attacks after the slaying of a young soldier, adding some 1,200 police to potential trouble spots.
Both of the suspects accused of butchering a British soldier during broad daylight on a London street had long been on the radar of Britain's domestic spy agency, though investigators say it would have been nearly...
Friday, May 24 2013 9:32 AM EDT2013-05-24 13:32:16 GMT
Some aldermen have questions as a City Council committee gets ready to hold a hearing on Mayor Emanuel's proposed changes to the Chicago parking meter deal.
Some aldermen have questions as a City Council committee gets ready to hold a hearing on Mayor Emanuel's proposed changes to the Chicago parking meter deal.
Former Chicago Bears lineman and FOX contributor Dan Jiggetts is an advocate for preventing the sale of high capacity ammunition magazines in Illinois. He's also working on Rocky's Law with Governor Quinn.
Former Chicago Bears lineman and FOX contributor Dan Jiggetts is an advocate for preventing the sale of high capacity ammunition magazines in Illinois. He's also working on Rocky's Law with Governor Quinn.
Amid lingering concerns about his national security policies, President Barack Obama is outlining measures to clarify the deadly use of drones against terror suspects.
President Barack Obama sought Thursday to advance the U.S. beyond the unrelenting war effort of the past dozen years, defining a narrower terror threat from smaller networks and homegrown extremists rather than the grandiose...
Thursday, May 23 2013 4:36 PM EDT2013-05-23 20:36:47 GMT
The Obama administration has picked a private attorney and former federal prosecutor to head the U.S. attorney's office in Chicago, U.S. Sen. Dick Durbin announced Thursday.
The Obama administration has picked a private attorney and former federal prosecutor to head the U.S. attorney's office in Chicago, U.S. Sen. Dick Durbin announced Thursday.
Thursday, May 23 2013 2:18 PM EDT2013-05-23 18:18:06 GMT
Illinois legislation allowing public possession of concealed guns has passed the House Judiciary Committee. It was a compromise backed by Speaker Michael Madigan.
Illinois legislation allowing public possession of concealed guns has passed the House Judiciary Committee. It was a compromise backed by Speaker Michael Madigan.
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