Suburban Chicago mayor calls for pension reform

Elk Grove Village Mayor Craig Johnson said state lawmakers need to step in and help fix public pensions. Pension debt is the biggest driver of Illinois’ property taxes, which are the second-highest in the nation.

Elk Grove Village Mayor Craig Johnson called on state lawmakers to pursue pension reform, which would require an amendment to the Illinois Constitution.

Johnson said Elk Grove Village’s police and fire pensions took up 53% of the village’s property tax collection, up from 18% in 2000. Many towns around the state face the same problem, larger and larger government pension bills crowding out services for residents.

The village of 31,000 next to O’Hare International Airport was able to cut its property tax levy by 1.83%, partially because of increased revenue from construction fees. The typical homeowner will see $14.63 in savings, which is a step in the right direction.

Illinoisans live with the nation’s second-highest property taxes behind only New Jersey. Businesses also pay the nation’s second-highest corporate income tax rate, making the state one of the worst for brick-and-mortar companies.

Illinois state and local pension plans have deficits totaling $212 billion. With 49.5% of what they will eventually need on hand, only New Jersey public pensions are in worst shape. Experts say 60% funding is a sign a system is deeply troubled and 40% is possibly past the point of no return.

It is not a partisan issue: former Chicago mayors Lori Lightfoot and Rahm Emmanuel have called on the state to intervene in the pension crisis. Voters in Barrington Township overwhelmingly supported constitutional pension reform with 73% voting “yes” and 27% voting “no” on a nonbinding advisory question Nov. 5.

Because past bipartisan reform efforts were rejected by the Illinois Supreme Court, the Illinois Constitution must be amended to allow the growth in public pensions to be controlled. State lawmakers must act to put that change on a statewide ballot, otherwise the five statewide public pension systems are at risk of collapse and local pensions will keep eating ever more resources and leaving communities with ever fewer government services, putting retirees at risk and leaving taxpayers with a massive burden.