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TRS pension liability equals $52 billion out of Illinois’ $96 billion

March 15, 2013 By 3 Comments

Quinn’s proposed a 3% budget cut of $400 million for education spending. This is the third year in the row that state spending per student has been cut. This would result in per-pupil funding (general state aid) that could dip to $5,4542 next school year, affecting poorer school district which receive most of the aid. Wealthy school districts receive little or no state aid.

Nibbling around the edges is a meaningless and useless exercise in a state that is drowning in debt. When will Governor Quinn and state legislators deal with pension reform, which is sapping critical financial wherewith-all away from state programs that remain unfunded and/or unpaid because Illinois lacks funds? Illinois has $96 billion in unfunded pension debt, more than $54 billion in retiree health care debt, and $9.7 billion in unpaid bills.

The present unfunded liability in the Teacher Retirement Service (TRS) stands at $52 billion, bigger than the Illinois general fund budget of $34 billion. If paying the $52 billion liability off like a home mortgage, it would require more than $4 billion a year just to pay off the unfunded liability. $46,452.

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Filed Under: Public Pension Crisis, Top Stories
  • Wolf

    A cut to the exorbitant Public Education spending is long overdue especially when the System has failed the students. The resolution should cap total Public Funding (Federal, state and local) to $7K per student annually for K-12 Education and introduce a Voucher System allowing all parents to choose a Public, Private or Parochial School System. This would introduce competition and choice and restore the future to millions of children. It would also address the money laundering between the unions to the Politicians. The Public Sector Pension fraud needs major restructuring and reform. The Public Sector Labor Agreements and these Pension structures show the extend of the fraud that has been perpetrated on the taxpayers at the Federal, state and local. The bloated Public Sector operations with their 50% over staffing and compensation levels plus their multi-million pension packages with exorbitant COLAs have put a $50 Trillion obligation on the taxpayers as this fraud has grown over the past 50 years to today’s epic levels. The liabilities presented today are still vastly understated because the investment return rates continue to be near 8% annually. The resolution of a fraud is simple, but the present path to continue the fraud shows the criminals involved here because everyone involved here are major beneficiaries of this fraud.