The pension-funding crisis undermining the stability of Illinois and Chicago is rippling through hundreds of smaller governments, squeezing budgets as officials prop up teetering police and fire retirement funds.
Chicago moved forward in its effort to rescue a pair of pension funds and stabilize its finances when Illinois Governor Pat Quinn signed a bill that cuts benefits and makes employees pay more for retirement.
Nationwide, state revenue growth in the years first three months rose less than 1 percent from a year earlier, forcing reconsideration -- or abandonment -- of pledges of tax relief.
The measure aimed at restoring retirement funds for laborers and municipal workers passed today in Springfield, the capital, by a vote of 73 to 41 and moved to the Senate.
The unions, which include the biggest organizations representing state workers, called legislation signed into law last month by Democratic Governor Pat Quinn to reduce the shortfall theft, according to a statement.