On Wednesday, May 15, the Illinois Senate unanimously passed House Bill 140, a bi-partisan measure sponsored by State Senator Dan Duffy (R-Lake Barrington).  Duffy worked with State Rep. Jack Franks (D-Marengo) to pass the legislation, which would eliminate benefits packages currently afforded to part-time members of state-funded transit boards.

“Illinois is notorious for its large number of wasteful boards and commissions,” said Duffy. “While we’re financing these boards, paying their members often exorbitant salaries as well as benefits, we’re not making payments on pensions for teachers, firefighters, and policemen. Benefits for these boards and commissions are low hanging fruit, and are a good place to start in making up for the $100 billion unfunded pension liability in Illinois.

House Bill 140 stipulates that members of the Regional Transportation Authority Board, Suburban Bus Board, Commuter Rail Board, and Chicago Transit Authority Board are not eligible for pension or insurance benefits if they become a member of these boards on or after the effective date of the legislation. For members being reappointed to these boards, previously accrued benefits will remain unchanged, but all benefits will be eliminated for any future terms of service.

Gambling expansion took center stage in the Illinois Senate last week as the Senate Executive Committee moved forward with a major expansion of gambling, including a Chicago-based casino, in Illinois.  The proposal, Senate Bill 1739 later passed the Senate and was sent to the House on a 32-20-1 vote.

Senator Dan Duffy (R-Lake Barrington) voted against the “top-heavy” gambling expansion proposal, which contains not only a Chicago-based casino with up to 4,000 gambling positions, but also four new river boats or casinos, slot machines at Illinois racetracks, and a major increase in the number of gambling positions allowed at existing riverboats.  Rockford, Danville, Lake County, and Southern Cook County would be the homes of the four new riverboats or casinos. 

The House-approved measure promises to save about $150 billion over 30 years, about $2 billion of which would be saved by 2015.  However, critics point out that the savings come largely from reducing retired teachers’ and other employees’ pension cost-of-living increases.

The heavily-amended reform measure faces and uncertain future in the Senate.  

Key changes in Senate Bill 1 include:
•    Higher retirement age for employers current under age 45;
•    Reduced Cost of Living Adjustment (COLA) on pension benefits;
•    Cost of Living Adjustments delayed until either age 67 or 5 years after retirement, whichever comes first.
•    A cap on the salary that is eligible for pensions. The cap would be $109,971 and would be increased at half the rate of inflation each year.
•    Employees would be required to pay an extra 2% of their salary into the pension fund.
•    To guarantee funding

On Wednesday, March 6, Illinois legislators including State Senator Dan Duffy (R-Lake Barrington) listened to the Governor lay out his proposed 2014 budget in his annual Budget Address.

“Illinois is facing the worst fiscal crisis in our history and the Governor’s response is to craft a budget that increases spending by $1.2 billion.” said Duffy.  “Instead of cutting costs and living within our means, just like all families and small businesses are doing, the Governor has decided to expand government by adding 2,800 state employees to the payroll.”

Duffy points to pension reform as the most important issue facing the state of Illinois today.  “Our growing pension debt is the number one threat to Illinois’ fiscal security,” said Duffy. “During his speech Governor Quinn repeatedly intimated that we must address pension reform, but offered no solutions.  For months Governor Quinn has been echoing this sentiment but has failed to provide leadership on the issue, leaving the burden of reforming the system entirely on the General Assembly.  We need a Governor who will roll up his sleeves and join us in making Illinois a more fiscally secure place.”