March 31, 2010

A sweeping bipartisan pension reform measure topped a busy legislative week, with lawmakers also holding hearings on the state budget and approving a new school voucher program for low-income students.

On March 24, lawmakers passed Senate Bill 1946 which included numerous pension reforms that have been debated for years. Illinois has the worst-funded pension system in the nation, and pension payments threatened to swallow increasingly larger chunks of the state budget without reforms.

Ultimately, it was the threat of a major credit downgrade that helped spur majority Democrats and Governor Quinn to adopt reforms. Most Republicans supported the reforms, but noted that the changes were needed largely because majority Democrats in 2005 raided state pensions and abandoned a long-term funding plan that had been enacted under Republican control in 1995. The measure, which applies only to new hires, raises the retirement age for state employees, ends “golden pension parachutes” for highly compensated employees, limits annual Cost-of-Living Adjustments and significantly reduces benefits for judges and state lawmakers.

In other news, the Senate held budget hearings this week on a host of veterans and public safety issues. During testimony, the Director of the Illinois Department of Veterans’ Affairs outlined a budget proposal from the Governor authorizing a $400 monthly fee hike on residents in Illinois’ veterans’ homes. Senate Republicans expressed concern over the plan, given that many veterans in the facilities face serious health challenges and live on fixed incomes. If approved, it would be the first fee increase on veterans in the state’s veterans’ homes since 1979.

In other contentious Senate testimony during the week, the Director of the Illinois Department of Corrections was grilled by lawmakers on the Governor’s controversial early-release program that resulted in more than 1,700 inmates being discharged from state prison after spending virtually no time behind bars. Under the Meritorious Good Time Push Program, known gang members, repeat drunk drivers, people convicted of domestic battery and even criminals with murder in their backgrounds were released. Many immediately committed additional violent crimes after being let out.

The sale of Thomson Prison to the federal government was also a subject of Senate testimony. The Governor’s Office announced it intends to vacate the facility by the end of April and then declare it a “surplus” property to be sold to the Obama Administration.

Critics have noted the prison is being sold despite the fact the state’s maximum security facilities are at nearly 140 percent of capacity. Lawmakers also expressed concern that the sale, if enacted as planned, could result in a loss of nearly $100 million for taxpayers.

In other news, the Director of the Illinois State Police revealed during a Senate hearing the Governor has proposed laying off 464 troopers and closing five of its 21 regional headquarters. The facilities slated for closure are in Litchfield, Macomb, Carmi, Des Plaines and Pecatonica.

Numerous lawmakers objected to the plan, noting local police departments would be forced to increase their patrols of highways to cover the shortfall, taking away police coverage of neighborhoods and serious crimes.

Finally in the week, the Senate approved a bipartisan measure creating a voucher pilot program for the 10 percent lowest performing schools in Chicago. Under the measure, about 22,000 students could get a voucher to assist in attending private schools.

The legislation, Senate Bill 2494, now heads to the Illinois House of Representatives.

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