Illinois pension buyouts may not bring savings budget claims
CHICAGO (AP) — Illinois' new state budget relies on more than $400 million in savings from a new pension buyout plan that finance experts caution is highly speculative and may not save as much money as lawmakers say.
The budget sailed through the Legislature this week on a bipartisan vote, and Republican Gov. Bruce Rauner, who's seeking re-election in November, has said he'll act quickly to sign it. It was a sharp contrast to recent years, when Rauner and majority Democrats deadlocked over a budget and the governor's pro-business priorities, leading to the nation's longest state budget impasse.
The buyout plan is aimed at addressing Illinois' roughly $130 billion unfunded pension liability and the state's ballooning annual contributions to the funds. Protections enshrined in the state constitution have limited lawmakers' options, with the Illinois Supreme Court declaring cuts to benefits unconstitutional.
But the buyouts are voluntary, and there's no way to know for certain how many people will take the state up on the offer.
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