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.”

“In enacting the provisions, the General Assembly overstepped the scope of its legislative power. This court is therefore obligated to declare those provisions invalid,” Justice Lloyd Karmeier said in writing the court’s opinion. Read more in the SunTimes.

A bill that would increase the frequency of actuarial reviews of the State’s five public pension systems was approved unanimously in the Illinois House on Thursday.

According to the bill’s sponsor, State Representative Tom Morrison (R-Palatine), current law only requires a thorough investigation into the pension systems every five years. “A more frequent actuarial study can ensure we are making the right payments to stay on track with our obligations, especially since we now have new Tier II employees in our pension systems,” said Morrison. “These actuarial reviews are incredibly important, because the data leads to recommendations that may be implemented by the pension boards.” Read more.

Illinois’ pension liability as a percentage of state revenue is far and away the nation’s highest, according to a new report from a major credit-rating agency.

The state’s three-year average liability over revenue is 258 percent, Moody’s Investors Service says.

The next closest? Connecticut, at about 200 percent.

The Moody’s report averaged the Illinois percentage from 2010 through 2012. In 2012 alone, the state’s rate was 318 percent.

The state has a $100 billion deficit in the amount of money that should be invested in the portfolios of five state-employee pension accounts. Lawmakers adopted an overhaul plan last fall that cuts benefits and increases worker contributions to significantly cut that debt.

But the law has been challenged in court. A Sangamon County judge indicated last week he wants the case moved swiftly to appellate courts, suggesting the Illinois Supreme Court’s rejection in July of a law affecting retiree health insurance could prove a model for the pension challenge. Read the AP story in the Chicago SunTimes.

Concealed Carry 
Governor Quinn on Tuesday issued an amendatory veto of HB 183, the concealed carry bill. HB 183 passed the House in late May by a vote of 89-28, and the Senate by a 45-12 margin. The Governor’s changes included:

• An expansion of the list of locations in which a permit holder may not carry a concealed weapon to include all businesses which serve alcohol. HB 183 as passed banned concealed carry only in bars where alcohol sales made up at least 50% of all revenue. The amended version would ban concealed carry in many restaurants.
• A requirement that the weapon must be completely concealed instead of “mostly concealed” 
• A limitation to only carrying one concealed firearm and one ammunition clip which carries no more than 10 bullets 
• Reinstatement of the assault weapons ban 

Fitch Ratings said Monday it would drop the Illinois rating
from “A” to “A-” based on lawmakers’ failure to enact a
solution to the state’s public-employee pension crisis.

If the words budget, credit rating, bonds, debt, pensions and Medicaid reform cause your eyes to glaze over, you are not alone. That is precisely the reason the Democrat-controlled legislature was able to leave Springfield last week without reforming major budget pressures like pensions and Medicaid. It is also why they were able to ignore $7.5 billion in unpaid bills and even increase the state's debt causing our credit rating to plummet. They know its a difficult subject to understand for Illinoisans, who have their own financial troubles.

That move by the Democrat leadership will cost you plenty. It means a temporary tax increase will likely become permanent so that more of your hard earned money will go to the State of Illinois. It also means fewer Illinois jobs and at the same time less resources to help the unemployed. It will mean fewer improvements to the state's infrastructure like roads and bridges as well as less funding for your children's education, for your aging parents when they need it most and for veterans who bravely served this country.

You'll be paying more, getting less and enabling those who did this to the state to continue their irresponsible leadership. Their lack of action on these important issues will cost you plenty. While it may be too late to change the outcome for this year (unless the Governor calls a special session), it is not too late to make sure it doesn't happen again.

Pension and medicaid reform impact real people and they are not issues to be tackled lightly. But, they must be tackled because there will be real negative consequences for all Illinoisans if they are not. Below are links to a few articles that explain these budget issues. After reading them, share them with your friends, family and social networks. Contact your legislators and ask them about budget issues.

Let's start a conversation about good financial stewardship and perhaps next year we'll have a different outcome.

State credit downgraded; pension mess cited
Fitch downgrades Illinois after lawmakers fail to pass pension reform
Fitch Downgrades Illinois, Drowing in Pensions
Fitch Downgrades Illinois' GO Rating to 'A-'; Outlook Negative