Legislative update
as of June 6, 2010
prepared by Anderson Legislative Consultants
On May 27th both the House and Senate adjourned ‘to the call of the chair’, which means either chamber could return to Springfield over the summer. Although both chambers have finished the majority of their work for the spring session, they may still need to come back to put the finishing touches on the budget. The House was able to pass their version of the Budget, though it took them sometime and a lot of effort. However, the Senate was unable to get the votes for one of the Budgets central pieces, the $4 Billion pension borrowing bill and failed to even call the legislation for a vote.
Bills of Note Sent to Governor:
HB 5154-FOIA
Amends the Personnel Record Review Act. Provides that disclosure of performance evaluations under the Freedom of Information Act shall be prohibited. Effective immediately.
HB 4945-Joint Investments
Amends the Local Government Debt Reform Act. Permits governmental units to authorize the treasurer of the governmental unit to join with the treasurers of other governmental units for the purpose of jointly investing the funds of which the treasurer has custody. Effective immediately.
HB 5668- Firemen’s Disciplinary Act
Reinserts the introduced bill with changes. Adds to the definition of "fireman" a person who is a paramedic employed by a unit of local government (instead of a unit of local government's fire service) and an EMT employed by a unit of local government (instead of a unit of local government's fire service). Effective immediately.
SB 3022-Public Employee Benefit
Amends the Downstate Police and Chicago Police Articles of the Illinois Pension Code. Allows police officers to establish creditable service for up to 2 years of military service before employment. Requires payment of employee and employer contributions, plus interest at the actuarially assumed rate. Effective immediately.
Complete report on the status of bills the IGFOA Legislative Committee is monitoring
IGFOA Joins Pension Fairness Coalition
At the February 26, 2010 meeting, the IGFOA Executive Board agreed to join the Pension Fairness Coalition. Monitor the Coalition's progress at http://www.pensionfairness.org/index.html
May 6 update:
HB5873 includes numerous changes to the Downstate Police and Firefighter Pension Funds. This bill is currently being considered in both the Illinois House and Senate.
OPPOSE HOUSE BILL 5873 (Senate Floor Amendment #2)
HIDDEN, EXPENSIVE CATCH NEGATES TAXPAYER RELIEF
House Bill 5873 Senate Floor Amendment #2 would provide some long term pension relief, but the addition of a union-demanded provision that imposes severe fiscal penalties upon taxpayers cancels that benefit.
House Bill 5873 (SFA2) imposes financially crippling enforcement penalties
Authorizes pension funds to demand the state deduct Local Government Distributive Funds (LGDF) and sales tax revenues from municipalities if they are unable to fully meet their pension obligations
Permits pension funds to sue municipalities (i.e. taxpayers) in circuit court if local and state funds are not sufficient to meet pension obligations
If these penalties were in effect today, they would impose an estimated $105 million dollars in additional tax burden upon local taxpayers
Positive aspects of House Bill 5873:
Creates a modified pension system for new employees that provides gradual relief over several decades
Requires COGFA to perform fiscal studies to help understand pension fund successes and difficulties
Provides the Department of Insurance special examination authority
Gives larger pension funds expanded investment authority
Crippling enforcement language that will make it IMPOSSIBLE to manage municipal budgets MUST BE REMOVED from House Bill 5873 (SFA2) in order to achieve acceptable and meaningful public safety pension reform
See additional helpful materials to facilitate your conversations with state legislators:
March 22 update:
Significant progress was made over the past week. Representatives of the Coalition met with the public safety unions on Wednesday, March 17 under the direction of Senator Terry Link. The meeting ended with agreement on two fronts:
• All parties agreed on the need to provide short term relief from pension increases and agreed to a proposal that would cap the amount of municipal pension contribution increases at 10% over the amount contributed for 2008. The agreement also includes language requested by FOP to eliminate a provision in their pension code that provides a pro rata distribution of funds in the event the pension fund is unable to meet its obligations (no other pension code has a similar provision). Senator Link also stated there would be a one year moratorium on all other pension bills during the negotiation process.
• Discussions began on providing long term relief following the outline of the Coalition’s Pension Fairness platform. Although no agreements were reached on the points of the platform, all parties agreed to continue the discussions.
Adding context to the discussions is legislation that passed the House last week which introduces a second tier pension with lower benefits and a higher retirement age for legislators and judges.
Another negotiation session is scheduled for this week. Senator Link has requested that all organized media activities (such as press conferences) be put on hold during the negotiations. The Coalition will continue to keep membership fully informed as to the status of the negotiations as well as lobbying and local education opportunities. To view press coverage related to the Coalition and the public safety pension crisis, please visit the "In the News" section of our online Press Room. |
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