Local Lawmakers Differ on Failed Plan to Use Pension Bonds to Shore Up Budget
Two Central Illinois lawmakers dispute the funding mechanism behind one budget proposal that failed in the waning hours of the legislative session in Springfield Tuesday night.
On Monday... the House overwhelmingly passed a proposal to use 2-point-2 billion dollars in pension bonds to pay for human service programs. But the measure failed to make it out of the Senate on Tuesday night. Champaign Democratic Senator Mike Frerichs voted against components of the bill. He says the proposal was fiscally irresponsible.
"I think the state needs to stop using our pension system as a piggy-bank to get us out of our problems," says Frerichs. "We need to tackle the real issues facing the state and stop borrowing on the backs of future Illinoisans to solve our problems."
Mahomet Republican House member Chapin Rose says what was perceived as only a temporary funding plan would have fully funded the pension system by making a payment through a short-term loan at a lower interest rate than normal. He says that would have freed up the dollars for mental health, drug treatment, and related areas.
And Rose questions the actions of Governor Pat Quinn, and says the governor changed his tune in about an hour.
"At 4 PM yesterday (Tuesday, June 30th), he asked us to pass it," says Rose. "At 5 o'clock, he was apparently making phone calls to Democrats, asking to vote against his own plan, to blow a 2-million dollar hole in this budget. So basically, at 5 o'clock, he said, 'Y'know what? Let it crash, let it burn, let everybody close their doors.' That's ridiculous!"
The measure was killed on the Senate floor on Tuesday.
Senator Frerichs also contends the Governor has made inconsistent comments when it came to considering pensions as a way to balance the budget. He says Quinn has also wavered between proposals for temporary and permanent tax hikes.
Both lawmakers say they're ready to return to Springfield to continue budget talks. Legislative leaders have called for a special session on July 14th.