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.

Chicago/NRI
Legislative Audit Commission schedules next NRI briefing for July 16. The Legislative Audit Commission, which reviewed the performance audit of the Neighborhood Recovery Initiative (NRI) on May 28, is continuing its investigation of the troubled NRI program. This was the program, overseen by the since-disbanded Illinois Violence Prevention Authority, which distributed grants to Chicago social workers for the stated purpose of increasing neighborhood and community ties and fighting street crime.

Pensions – Illinois credit rating
Moody’s, Standard & Poor’s issue positive statements about Illinois pension progress.  After pension reform bill SB 1 was signed into law on Thursday, December 5, global credit-rating firm Moody’s labeled the move a “credit positive.”  Moody’s currently ranks Illinois’ general-obligation (G.O.) debt as A3 with a negative outlook, the lowest ranking among the 50 states, and this rating did not change this week.   The statement by the New York-based debt watchdog described itself as awaiting independent actuarial confirmation of the proclaimed $160 billion in savings “clawed back” from pledged future pension payments by the controversial measure.   The statement was issued on Friday, December 6.

A bill to revamp Illinois’ underfunded pension system passed the House 62-53 and the Senate 30-24 today, sending the bill to Governor Quinn, who has said he will sign it.

The legislation was drafted by a 10-member conference committee made up of members of both parties and both houses. A conference committee is a rarely-invoked process which the General Assembly uses when the two houses each pass different bills on the same topic and cannot reconcile the differences. Different House and Senate pension bills passed in May. When the two houses deadlocked over the two bills, each chamber voted to create a conference committee, and the four legislative caucuses appointed its members.

Illinois Tornadoes

• Tornadoes strike communities throughout Illinois.  While twelve states were affected, Illinois was especially hard-hit by the severe frontal system that moved eastward on Sunday, November 17.  Death and destruction followed cyclonic strikes, including at least two tornadoes measured at a severe EF-4 on the North American scale of intensity, on the central Illinois city of Washington, located east of Peoria; the central Illinois town of Gifford, north of Champaign-Urbana; the southern Illinois town of New Minden, east of St. Louis; the far southern Illinois town of Brookport, north of Paducah; and other communities in Illinois.  More than 1,500 Illinois homes were damaged or destroyed. 

Diabetes and Public Health
House Republican measures aimed at improving public diabetes awareness become law.  The bipartisan Illinois Legislative Diabetes Caucus 2013 agenda included two measures to raise funds for diabetes research and direct that the State systematically monitor the growing diagnosis of diabetes among Illinois residents.  HB 1815 (Cross/Hunter) and HB 2199 (Durkin/Muñoz) were signed into law on Thursday, July 18 as P.A. 98-96 and P.A. 98-97.

• HB 1815 creates the Diabetes Awareness special Illinois license plate.  As with most other Illinois special license plates, persons showing a commitment will help to raise money for a cause recognized by the State.  The supplemental fee for original issuance of this plate will be $40, and the fee for annual sticker renewal will be $27.  $25 from each sum will be transferred to the Diabetes Research Checkoff Fund, and will be used to supplement the monies raised from the State income tax checkoff for diabetes treatment and research.
• HB 2199 will create a biennial report to be submitted by the State Diabetes Commission, an independent panel staffed by the State’s Department of Public Health.  The report, which will be submitted every two years starting in January 2015, will list not only the number of Illinois residents with diabetes, but also (a) the number of Illinois family members directly affected by these diagnoses, (b) the financial impact of diabetes upon the Illinois economy and its public-sector budget, and (c) the costs and benefits of anti-diabetes public health and diabetes prevention measures.  The report will also direct the State to look at, and continuously monitor, the level of cooperation between different State and other public-sector programs that are aimed at the treatment of diagnosed diabetes and the slowdown and prevention of existing cases of metabolic syndrome and other pre-diabetic conditions from progressing to a diagnosis of diabetes.  

Rep. Dennis Reboletti

 Follow live blog coverage of the Illinois General Assembly as they head into the last week of session. The budget and pensions plus a calendar full of bills remain to be considered follow the highlights here as it happens.

Today's session begins at noon.

Rep. Dennis Reboletti

Check back here at noon for live blog coverage of the Illinois House of Representatives for today's session. We're anticipating a short session as Senate bills are still making their way through House committees.

Earlier today SB1, HA1 a pension reform measure passed out of committee and will be heard in the House on a future date. Read our coverage of the testimony on Facebook.

"...Receiving significant support from members of all four caucuses, including 32 sponsors in the House, House Bill 3411 gives the General Assembly the best shot at achieving a bipartisan consensus that will ultimately save the Illinois pension system for hardworking government workers, while remaining affordable to taxpayers." More on tomcross.com...

The "Special Order of Business" today is Pensions. Check back here at noon for live coverage of the Illinois House of Representatives.

House Republican Leader Tom Cross called on Democrats to stop the political games and work together to address pressing issues, like ending violence and reforming the pension system.

In this morning's print edition of the Chicago Sun-Times, the Editorial Board encourages lawmakers to act to solve the state's pension crisis by rallying behind the bi-partisan bill introduced last week by Democrat State Representative Elaine Nekritz and House Republican Leader Tom Cross.  

They say:

"The Nekriz/Cross bill is by far the most carefully crafted pension-cutting plan we've seen and, more important, promises to reduce costs by enough to be considered a real solution."

You can read the entire piece on the Sun-Times website.  

On the floor of the Illinois House, Republican Leader Tom Cross implored the chamber’s majority to call off what he called “games” and a “charade” relating to the state’s pension crisis.

House Republicans refused to participate in a publicity stunt on the House floor today, instead choosing to ask for a Committee of the Whole meeting, one during which members could exchange ideas and work toward a real solution to the pension crisis which is costing taxpayers $17 million per day.

Check back here at noon for live blog coverage of expected House Floor debate on pensions during today's session.

Yesterday, House Republican Leader Tom Cross along with Democrat State Representative Elaine Nekritz (D-Northbrook) introduce comprehensive pension reform legislation yesterday that will save hardworking taxpayers $30 billion and the pension system for hardworking government workers.

Coverage from around the state:

• Peoria Journal Star:  Pension bill with 'momentum' proposed
• Downers Grove Patch:  Cross proposes Bi-Partisan Pension Reform Prosposal
• NIU Today:  Cross, Nekritz File New Pension Reform Proposal
• In the Know Illinois: State legislators introduce new employee pension fix

The video from the press event is here below and on our YouTube Channel, you can check out some photos from the press conference here on our Facebook page, and to read the full details of the proposal, you can visit Tom Cross' governmental site.  

House GOP Leader Tom Cross issued a statement at the end of the week regarding Fitch's downgrade of Illinois' Bond rating:

“Fitch’s downgrade of our bond rating is embarrassing and may cost the state more money—money that we clearly do not have. How many more times do we have to be downgraded to prompt action in the General Assembly? I have worked and will continue to work with other members in the House and Senate to pass meaningful pension reform.”

Full story here.