Dear John,
Thank you for contacting me with your
concerns regarding the ongoing pension debate in Springfield. This is a serious
problem that has been growing for decades due to previous underfunding by
governors from both parties and Republican and Democrat-controlled legislatures
as well as the current pension structure in place, which was passed decades
ago.
Although nothing has come before the
Senate at this time, House Speaker Madigan has introduced a bill in his chamber
that would divert money promised to local governments to be put towards the
state's pension obligations. I have always been an advocate for local
governments and, as far as I'm concerned, this proposal is a non-starter.
Taking money away from local governments during a time when many are already
facing deficits themselves is irresponsible. I fully support ensuring that the
state's pension systems are sustained, but I do not support "robbing Peter
to pay Paul," so to speak.
Another reason for our current pension
crisis is that people are living longer. The earned benefits structure that was
designed decades ago was not crafted in a way that's sustainable for our
current retirees. Simply put, if we do not make some responsible, fair reforms,
the system will not be around for current employees' retirements.
The state's pension contribution for
this fiscal year was $5.7 billion and next year it's estimated to increase by
more than $1 billion. The increasing costs put pressure on other vital aspects
of the budget, like education, health care and economic development, which
means less money can be put back into the classrooms or for efforts to bring
businesses to our State. Further, if we do not take any action, our state's
bond rating will be downgraded again - costing Illinois even more millions in
interest payments.
While we clearly need to address our
pension crisis and I will support measures to do so, I am firmly opposed to
shifting costs to local governments or local school districts. A fair and
equitable solution must be achieved by bringing all stakeholders to the table:
teachers, firefighters, police officers, etc. I do not support reforms that are
unfair to Illinois working families and I am committed to preserving the
pension system for current and future employees.
Again, thank you for contacting me and
if you have any other questions, please feel free to call my district office or
visit my website at www.LindaHolmes42.com.
Sincerely,
Senator Holmes
Dear Senator Holmes,
Thanks for your response
email. I'm sorry that I cannot support cuts to middle-class working people as a
means to balance the budget, especially the cuts that would be made to the
public servants of Illinois who (like me) forsook social security and received
a less-than-generous starting salary to teach, etc.
You write that you
cannot endorse "robbing Peter to pay Paul." In fact, we who worked as
public servants in the State of Illinois are truly Peter, and you would rob us
of what we had been promised now because "people are living longer"?
So to speak. Where is your honor and vow to follow the Constitution of the
State of Illinois?
Senator, your action,
attitude and decisions will cause pain for hundreds of thousands of middle-class workers in the State of Illinois. Your ability to rationalize cutting
cost-of-living increases and/or healthcare will certainly work toward lowering
that longer life span for the late life and medically-needy pensioners. Have
you considered this?
You understandably
remained concerned about the increasing percentage of the annual budget eaten
up by the necessary payment to the unfunded liability brought to us by
Thompson, Edgar, Ryan, Blago, etc. In actuality, the increasing costs of
meeting the ill-designed ramp-up will never be met by merely cutting costs to
those who gave their working years to public service. Do the math, Senator, and
you will find that once you start with COLA's or increased contributions, it
will never be enough to satisfy the terrible debt created by earlier political
thieves - NOT the people who paid in, gave up social security, and delivered
honestly to the State of Illinois.
In the greatest affront
to those who would work to make Illinois educated, safe from fire or harm,
ready for after-college employment, etc., you would tell new hires that they
cannot have anything unless they sacrifice more for what those in the Illinois
government had done to all of us beforehand. Are you serious? Do you really
think that Illinois can continue to attract great or even good candidates in
education or service positions for these important positions with this
penalizing requirement?
Senator, real solutions
would require restructuring the debt to an amortized schedule instead of the
steadily and exponentially increasing debt payment. The foolishness of such a
design as in 1995 cannot be met - let's all face it. You write the laws -
change it! In fact, the General Assembly has always had the power to force
itself to make the necessary payment for the public sector, but they failed to
pass that law too.
In addition, a
restructuring of the tax codes in Illinois to a graduated system rather than an
antiquated flat tax would provide billions in additional revenue for the state.
The only real foes to
these two ideas are the corporations, like Motorola or Sears who get big breaks
and then dump on the state anyway....
The other foe is the GA
itself, where no one has the courage to do what almost every other sensible
state in the union has already done. We are now one of only six states that
hold on to the medieval method of tax collecting: even New York came around
this last year. Look to a graduated system of taxing people and services for
the sake of the people, Senator.
In addition, your
insistence on cutting will make more than just a ripple in the middle-class
economy of which hundreds of thousands are/were teachers. The middle class
struggles through this recession, Senator. Will you cut the incomes of hundreds
of thousands of middle-class workers now? What impact will that have on the
local/state economy? And the cuts will never be enough. Have you really thought
about this?
Sincerely,
John Dillon
Not only does Senator Holmes not see this as a funding issue. She thinks the problem is that I'm still alive. Dead retirees would solve the the pension problem, I suppose.
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