Illinois’ pension problem could be much worse off than it’s being reported. The state’s Commission on Government Forecasting and Accountability puts the unfunded liability at about 100-billion dollars, but Moody’s recently recalculated the figure and tacked on an additional 33-billion dollars. And they say the problem will shoot up to about 200-billion total if lawmakers don’t find a fix soon.
Pension reform was one of the top priorities in Springfield this year. Still, lawmakers wrapped up session without a deal. A special committee has been meeting to come up with a final deal but so far, they still don’t have anything to offer. They’ve got several options on the table, including a tax hike, which means taxpayers could be on the hook to pay for the problem. Meanwhile, Governor Pat Quinn is still stressing the importance of reform and has suspended lawmakers’ salaries until they reach a deal.