Posted on 05/08/2015 9:08:03 AM PDT by GIdget2004
The Illinois Supreme Court on Friday struck down a 2013 law that sought to fix the nation's worst government-employee pension crisis, a ruling that forces the state to find another way to overcome a massive budget deficit.
In a unanimous decision, the seven justices declared the law passed 18 months ago violates the state constitution because it would leave pension promises "diminished or impaired."
The decree puts new Republican Gov. Bruce Rauner and Democrats who control the General Assembly back at the starting line in trying to figure out how to wrestle down a $111 billion deficit in what's necessary to cover its state employee retirement obligations. The hole is so deep the state has in recent years had to reserve up to $7 billion - or one-fifth of its operating funds - to keep pace.
Most states faced the same public employee pension crisis, exacerbated by the Great Recession, and took steps to remedy the problem. But Illinois balked for years at addressing the crisis until former Democratic Gov. Pat Quinn and fellow Democrats who control the General Assembly overcame opposition from union allies and struck the 2013 deal, amid warnings that it might not pass constitutional muster.
After the General Assembly and Quinn adopted the changes in December 2013, retired employees, state-worker labor unions and others filed a lawsuit seeking to invalidate the law on constitutional grounds. The high court opinion means the state must keep its pledge on pensions.
(Excerpt) Read more at abc7chicago.com ...
I have a problem with one aspect of this decision. A past law and legislature can impose it’s will on the future with a simple majority. But a simple majority can’t override that decision. Something isn’t right about that!
exacerbated by the Great Recession?
exacerbated by the Great Democrat GIVEAWAYS........................
That is what happens when DemocRat unions get together with DemocRat politicians to “negotiate” (i.e. to decide how best to rape the citizens for the benefit of the unions). For decades the people have had no voice at the negotiating table.
Black Robed Tyrants merely voting in their own self-interest. They receive government pensions, too.
Translation: Stick it to the taxpayers.
“The hole is so deep the state has in recent years had to reserve up to $7 billion - or one-fifth of its operating funds - to keep pace.”
Raise taxes. Why is this so difficult? That 1% in Chicago can cough up another 20 billion or so.
not when the new law violates a part of the state constitution. That’s the problem.
Raise taxes. Embrace the suck.
the ironic part of State pension situations; most of the top pension recipients leave their States and head to lower cost of living states and better weather.... I know a couple from MD that retired in the South to get away from “high taxes” and better weather. Both worked for the State and retired in their mid 50’s. Full pensions and paid medical benefits for the rest of their lives. And their medical benefits are Cadillac plans...
Stupid unions will force Ill. to file for bankruptcy..
Detroit, you’ll soon have company.
They should raise taxes. And the Republicans should let the masses know the reason for the tax increase. I think after raising taxes it will be much easier to get voter support for aggressive pension reform.
This is why the country is swirling down the toilet. The whole system is fixed to make sure spending only goes up. When the legislature has a moment of sanity and the b_lls to actually cut spending and pensions, the court steps in to reverse it.
Judges declaring a drowning man to be wet are surplus to requirements.
Yep, exactly
“I have a problem with one aspect of this decision. A past law and legislature can impose it’s will on the future with a simple majority. But a simple majority can’t override that decision. Something isn’t right about that!”
The problem here, is that right, wrong, or just plain stupid, a pension offered by an employer (the state in this case) was a “contract”. The traditional (and legal) way to abrogate a contract is to declare bankruptcy, which Illinois will certainly do in in the future. And in a federal court, that will supersede any state laws or even state constitutions.
There was a time when state employment paid considerably less than the private sector, but was steady work and you got a good pension. That was a long time ago. The salaries caught up (or even exceeded) private sector employment, but kept the goodies.
Labor unions are very, very active in the election of judges here.
Just sayin’.
What contract? Show me the document. Employment for rank-and-file with government is at will.
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