Two reports from the Illinois News Network that show the corruption that continues to dominate the Illinois public schools:
Moody’s reveals deep trouble with Illinois pension system
SPRINGFIELD – The state of Illinois finds itself worst in the nation when it comes to pension liability, says a new report from Moody’s.
Moody’s Investors Service, one of the nation’s major credit-rating agencies, conducted a study on each state’s pension liability as a percentage of state revenue and found that Illinois has the highest in the country by a wide margin.
The Prairie State’s three-year average pension liability over revenue is 258 percent, 58 points higher than second place Connecticut at 200 percent.
While looking at the percentages for years 2010-2012, Moody’s found that the state’s rate was 318 percent in 2012 alone.
Carol Portman is the president of the Taxpayers Federation of Illinois. She said the pension shortfall is a real crisis, and one that isn’t going away.
“The problem is only growing and the distance between the amount of resources being contributed and those being received is growing and that’s pretty alarming,” Portman said. “The new legislation, if it’s approved by the courts, will probably help some. But it won’t be enough to make up this kind of difference.”
The five main state-employee pension accounts are underfunded by about $100 billion and legislation that would have public employees slightly decrease their contributions and receive less in benefits is currently making its way through the Illinois court system.
Read more: ILNews.org
Report shines light on problems with public ed spending
HINSDALE – A new report on school spending in Illinois reveals pension and salary-heavy budgets for many Illinois districts.
The report, released by OpentheBooks.com, a group that advocates for government transparency, highlights the money 928 school districts across Illinois spend on salaries, vendors, and pensions on a yearly basis.
It found that, among other things, the number of pension benefits totaling $100,000 or more a year increased by nearly 25% from 2013 to 2014. More than 5,900 retired educators receive annual pensions worth six figures.
According to the group’s founder, Adam Andrzejewski, these numbers indicate a systematic problem with public education spending.
“For most school districts, pension payments are one of the top give annual expenses,” Andrejewski said. “Are we going to educate children or provide lavish lifetime benefits for administrators and teachers? There’s not enough taxpayer money to do both.”
Andrejewski said there is a much higher amount being taken out of the system in the form of benefits payments than being paid into, a trend that cannot sustain itself.
“There are 100,846 retirees pulling out of the system and only 162,960 active educators paying into the system” he said. “The retirees are pulling out loaves of bread and the current employees are only putting in slices. Sooner or later, the system will run out of bread.”
Read more: ILNews.org