THE BLOG
11/28/2014 12:19 pm ET Updated Dec 06, 2017

Illinois' pension reform questions mean the state's financial future is uncertain

Illinois' December 2013 pension reform law was deemed unconstitutional Nov. 21 by a Sangamon County Circuit Court judge.

The issue is likely headed to the state Supreme Court by way of appeal by Attorney General Lisa Madigan. The Illinois Policy Institute's Scott Reeder said he thinks the coming decision about the law is going to have far-reaching consequences throughout Illinois.

From Reeder:

Faced with more than $111 billion in unfunded pension liabilities, Illinois is in the worst fiscal condition of any state.

And Belz's ruling sets the stage for the crisis to deepen.
While government worker unions were touting the ruling as a victory, it's actually sowing despair for many current employees and sets the stage for generational warfare.

If the high court upholds this ruling, tax dollars that would be go to support schools, prisons and other state services will be diverted to fund pensions.

Look for teachers, prison guards and other state workers to receive pink slips to free up money for increased pension payments.

Check out the rest of his thoughts on the pension ruling at Reboot Illinois.

That's not the only problem Illinois is facing, according to the National Center for Children in Poverty. A study by the center found that Illinois taxes its low-income families at a higher rate than most other states in the country. For a family of two adults and two children living at the national poverty level, Illinois levies a state income tax burden of more than $200, which is lower only than Alabama, Hawaii and Montana. Check out how the numbers break down at Reboot Illinois.

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