By Cole Lauterbach/Illinois Radio Network
SPRINGFIELD – Illinois now has $130 billion in pension debt and only 38 cents on the dollar with which to pay for it, according to a new report by the Commission on Government Forecasting and Accountability (COGFA).
$1 billion more of next year’s state budget will have to go toward paying off pension debt instead of essential services. When two of the state’s five public pension funds lowered their expected returns on investment, it meant taxpayers would be on the hook for more of the debt.
COGFA director Dan Long said Illinois is paying more than twice what a normal state would in pension debt.
“If we didn’t have this unfunded liability and we’re only talking about normal costs, the contribution would be closer to $3.2 billion as opposed to $7.8 billion.”
Long said the jump from $111 billion to $130 billion means less money for state services.
“There’s not going to be a lot of extra money available for programmatic activities such as education, human services and public safety,” Long said.
If Illinois doesn’t reform the current pension system or drastically increase contributions, the report said the state will have to pay more than $12 billion per year by 2030, the first year that the commission expects unfunded liabilities to begin falling.
The report also shows that the state’s pension funds are only 38 percent funded, less than any other state.
