GOP lawmakers rail on pension shift proposal

SPRINGFIELD | Republican lawmakers Tuesday called on Gov. Pat Quinn and Democratic leaders to put the brakes on a plan that could shift state pension costs to local school districts and universities.

Calling the idea a "recipe for chaos," House GOP lawmakers said local school districts and universities cannot absorb millions of dollars in additional costs that would come with the change. In order to finance the added costs, school districts would be forced to raise local property taxes and universities would have to raise tuition, they said.

"We can't let this move forward without taking a thorough look at it," said state Rep. Rich Morthland, a Cordova Republican.

The governor, House Speaker Michael Madigan and Senate President John Cullerton, all Democrats from Chicago, say the state could pare down ballooning teacher pension costs by having downstate school districts pick up a larger portion of those costs.

The move would begin to address years of underfunding within the state's pension systems, but could cost school districts more money. Morthland said the Moline School District could see a $4.8 million increase.

Democrats argue that Chicago taxpayers are paying the cost of teacher retirement plans while the state pays a portion of downstate and suburban pensions. The added cost could be phased in over time in order to soften the hit to taxpayers.

Republicans are backing a plan that would reduce pension benefits to individual employees, but Cullerton has said that idea is likely unconstitutional.

Morthland said families are "struggling under the 67 percent income tax increase Democrats' forced upon them last year. Adding property tax and tuition increases on top of that would be absolutely devastating."

"This is basically rearranging deck chairs while the Titanic continues to sink," added state Rep. Ed Sullivan, R-Mundelein.