Pension reform could alleviate cuts

As we approach the end-of-session crunch, many tough decisions will be necessary to balance the state’s budget and bring spending under control; regardless of how much effort is put into prioritizing our spending, many cuts will still be necessary.

However, please consider this: The majority of these cuts would not be necessary had years of poor decisions not been made in regard to our state’s pension system. We currently have $85 billion in unfunded liabilities, and that number is increasing exponentially. So while revenue is indeed up this year, thanks in large part to a 66 percent tax increase passed against the strenuous objection of most Republicans, cuts will still be necessary to vital state services because our state’s pension payments and debt services are growing so quickly.

This year alone, $4 billion of the state’s estimated $33 billion will be going to the pension system. It ranks third in expenditures, behind only health care and education.

This number will only double over the next decade, putting us in a position where it is likely that upwards of 40 percent of our state’s revenue will be heading to retirees by the year 2045. The system is insolvent.

Without overhauling the state’s unsustainable pension system, less and less of our revenue will be going towards day to day functions. If we act now, more and more of our hard-earned tax dollars can go to education, the infrastructure that we depend on and the other vital services that our state provides.

Darlene Senger

Naperville

State representative

96th District