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Voice of The Southern: Changes on the horizon for public workers

Posted: Wednesday, May 18, 2011

A recent spate of advertising featuring teachers, firefighters and police officers has us wondering: Is the sky falling in for Illinois public employees, working and retired?

Maybe. This is Illinois, and the financial sky is always falling. The current annual deficit is about $8 billion and the long-term, underfunded pension liability seems to run around $80 billion or more, although some fiscal conservatives contend that's a gross underestimate.

Even after a 67-percent increase in the personal income tax, the Illinois governor and Legislature seem to be waking to the idea that the piggy bank isn't bottomless.

This is sad, because Illinois legislators don't like to make tough decisions and aren't good at it. Instead, they tend to rob from tomorrow to pay for today and smile for the cameras as they deliver large, cardboard checks.

But a big tax increase pulls back the curtain; things are about to change.

Unions, including the biggies such as the American Federation of State County and Municipal Employees are worried. They are worried because they know Illinois politics and know silence is deadly.

So, they've begun a $1 million broadcast and print advertising campaign. The basic pitch is, "Hey, we've paid a healthy share of income into our pensions, and we don't want to be penalized for the misconduct of grubby politicians."

True, and fair enough.

Here's the bad news. Pension change - call it reform if you like - is coming. It must, or Illinois state and local government will be crushed by their former habits.

Illinois is traditionally a labor-friendly state, and we don't expect a Wisconsin-style assault on unions and state workers. We want those teachers, firefighters, police officers and others who have signed on to receive the pensions they've paid into and deserve. (We would, though, like to further discuss appropriate ages for full payout.)

Illinois has to get its annual and long-term books in order. To do so, the governor and Legislature must use some combination of cutting spending, raising revenue (taxes and fees) or under-funding pensions.

Taxes and fees have been raised. Spending cuts are promised. The pension funds? We will soon find out.

What Illinois lawmakers must do is find a way to spread the pain somewhat equally. Public employees should expect, among other things, tiered pension funds for newer employees and additional health care costs being passed to the insured. Raising the age for full retirement benefits seems a certainty, too.

The hard truth is that the traditional pension and health care plans have largely disappeared in the private sector. The world has changed, and public employees are now carrying the gold standard of benefits. The rest of us look on and pay taxes that become public salaries and benefits.

We don't want teachers or any other public sector employees financially violated as this Legislature grapples with a problem built by its predecessors. Those employees are our friends and neighbors, brothers and sisters.

But, again, what Illinois government must do is get its house fundamentally in order.

What Illinois employees must do is accept that the difference between public sector and private sector benefits is about to narrow.

CAT Tracks Editor's Note:

As the "Fat Cats" (Cats, NOT CATs) carry out their agenda, below are links to a couple of articles in today's New York Times on how the other half lives...

If you click on the link below, you'll understand why this man is smiling...

As Citi Revives, Pandit Wins Big Pay Package

If you click on the next link, you'll see that all the money in the world ain't enough to satisfy the "Fat Cats". They want (and take) more from the working-class people... (How many "workers" have the ability to post a $1 million cash bond should they "behave badly"? But, let's stick it to those money-grubbing public employees...)

Lawyers Push for Bail to Free Former I.M.F. Leader From Rikers

Oh...and mark your calendars!

Don't miss Arnold Schwarzenegger's next film, "Cry Macho". According to another article in today's New York Times, "the movie is expected to have some parallels to his recent personal revelations."

WOW...I can hardly wait!

But, then again...