Now SB 1 will return to the Illinois Senate, with three possible outcomes:

• Lawmakers could agree with the amendatory veto and vote the amended legislation into law, which requires a three-fifths majority in both chambers.
• Lawmakers could override the amendatory veto and make their original bill stand, which would require a three-fifths majority in both chambers.
• Lawmakers can allow the bill to die by failing to override the veto or simply doing nothing.

Illinois Policy Institute experts are available in Chicago and Springfield to weigh in on this development.

EXPERTS:

Chicago
Ted Dabrowski, vice president of policy

Springfield
Mindy Ruckman, government affairs legislative analyst

BACKGROUND:

• Cullerton sat on SB 1 for two months rather than sending it to the governor right away. This was done for no other reason than to create leverage.
• Education funding was the only appropriation withheld from the budget passed on July 6. It is highly unusual to make education funding contingent on an additional, controversial bill.
• The governor was forced to call a special session to draw attention to the issue and force the release of SB 1. Without an education funding bill in place, many schools may not be able to open on time in the fall. Some schools have reserves to dip into, but many schools that rely heavily on the state are at risk of having their school year disrupted.
• SB 1 provides a CPS bailout, including an annual $215 million toward CPS pension costs and a $200 million block grant no other district receives. It’s unfair to ask state taxpayers to bail out CPS.
• SB 1 would force downstate taxpayers to bail out Chicago after more than 20 years of mismanagement, skipped pension payments, excessive borrowing and unaffordable teachers contracts.
• Illinois has been here before. Illinois bailed out CPS in 1995 by changing the education funding formula in favor of CPS. As part of that agreement, lawmakers agreed to hand over control of the district and Chicago’s teachers pension fund to then-Mayor Richard M. Daley. The teachers pension fund went from fully funded to just 50 percent funded.
• Chicago teacher pensions were fully funded in 1995. But since that change, city leaders stopped making payments owed to the pension fund, using the money toward school operations and to increase teacher salaries.
• Chicago public school teachers are the highest-paid among the nation’s biggest school districts.
• Moody’s Investor’s Service rates CPS credit B3, which is considered “junk” status. This means CPS pays sky-high interest on its debt and faces limited access to lenders.
• On Dec. 1, 2016, Rauner vetoed a $215 million CPS pension bailout bill because it was contingent on pension reform that never materialized. The General Assembly did not vote to override this veto.