CHICAGO (AP) — Illinois Gov. Pat Quinn insists lawmakers can fix the state's most urgent financial problem by passing a major pension overhaul in a single day, but he seems to be the only leader convinced it can be done so quickly.
Other key officials are backing a scaled-down pension plan or opposing versions now on the table, though no one but Quinn seems to think a complete overhaul will be approved when the General Assembly meets in special session Friday.
Senate Minority Leader Christine Radogno said lawmakers are waiting for direction from Quinn, whose vows for reform she calls hollow.
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"It's activity absent of any forward progress," said Radogno, a Republican.
The Democratic governor form Chicago is trying to build public support for reducing retirement benefits for public employees and getting some school districts to pick up their own pension costs, even with union opposition and a slim chance of major change in an election year.
He has released studies projecting the massive pension funding hole — now roughly $85 billion — will keep growing until retirement costs surpass education spending. He tacked the issue onto appearances at a Ford Motor Co. plant, a bilingual middle school and even the oldest African-American parade in the nation.
"As I march up Doctor Martin Luther King Drive and see all these bright, smiling faces, the importance of bold action on pension reform is crystal clear," Quinn said after Chicago's weekend Bud Billiken Parade.
However, there has been little evidence Quinn is doing anything to resolve the policy disputes preventing that bold action.
He has given no specific roadmap to lawmakers who failed to agree on a plan in their spring legislative session. He hasn't called together top legislative leaders in nearly two months. Even members of a pension working group doubt there'll be any kind of full solution when lawmakers gather.
"There's a possibility of more discussion," was the assessment of Rep. Elaine Nekritz, a Northbrook Democrat who has been at the heart of the issue.
She has introduced legislation that Quinn would like lawmakers to borrow language from to amend other bills. And while there are loose plans for some a meeting among some leaders this week, Nekritz said she wasn't confident there would be a resolution.
Illinois legislators must find a way to close a roughly $85 billion funding gap. That's the money that the state needs meet its pension obligations over the years, and the number is growing — by about $12.6 million a day, according to Quinn. Illinois helps pay for hundreds of thousands of public employee pensions but hasn't paid enough over the years.
It's a pressing issue that continues to strain the state's weak finances, make Illinois-based businesses nervous and embarrass the state. Illinois was recently ranked last in the nation for its poorly funded pension system. Credit rating agencies have threatened to down grade the state's rating unless lawmakers do something.
At least two pension-related proposals could come up Friday, the same day the House will vote on whether to expel indicted state Rep. Derrick Smith. However the influential American Federation of State, County and Municipal Employees has objected to both, saying they'd burden retirees.
One bill proposes making suburban and downstate school districts gradually take over pension costs the state currently pays. Quinn says pushing the cost onto schools now keeps the state from having to make steep budget cuts in the future. His office estimated that once the plan is implemented over 12 years it could save the state $640 million yearly.
However, there isn't wide support for the proposal, school districts say they're already strapped for cash and Republicans have said they don't believe that shifting the cost to schools deals with the problem.
"I don't think it's equitable or fair," said Republican Sen. Bill Brady of Bloomington.
Both Radogno and House Minority Leader Tom Cross — who spent the summer in negotiations with Quinn on the idea — said the plan just transfers costs, it doesn't change the system.
That leaves another plan, which appears to have more support, though only deals with two of the five pension systems — state employees and lawmakers. A bill that encourages them to accept lower cost-of-living rates, has passed the Senate and House Speaker Mike Madigan has indicated he'll call it for a vote. The legislation says that instead of 3 percent annual cost-of-living increases, retirees would get the lower of either 3 percent or half the inflation rate, among other things. It is expected to save up to $31 billion and could reduce the unfunded liability by as high as $5.7 billion, according to Democratic officials.
Senate President John Cullerton has pushed for that bill to satisfy credit rating agencies. The Democrat said that after that, lawmakers could take time to deal with the other systems.
"That's extremely significant," he said of the legislation. "Then we would come back in January and pass the rest of it."
But Cross disagreed, saying it merely "nibbles around the edges."
Quinn has also said that the bill encouraging lower cost-of-living increases wouldn't be enough, though he has not provided detailed plans on how the bills should be amended. He and some of the other legislative leaders including Madigan have indicated they could meet ahead of the special session.
He accused lawmakers of election year antics.
"They think this is something they can take their own sweet time on," Quinn said of lawmakers. "It's all politics."
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