Link to the Original Story

Voice of The Southern:

It's going to be tough, but it has to be done

The numbers are eye-popping, and it’s easy to be furious at first glance.

As we reported in Tuesday’s newspaper, a pension cost-shifting proposal being considered by Gov. Pat Quinn could leave 15 percent of Illinois school districts in the red. In Southern Illinois, many districts could face financial shortfalls in the hundreds of thousands of dollars, and Marion Unit 2 could be in the red by more than $14 million.

The initial shock of seeing that number is enough to make anyone angry. How can we possibly be expected to take on more local debt, especially in the wake of the ill-considered and foolish decision to close Tamms Correctional Center, Illinois Youth Center in Murphysboro and Southern Illinois Transition Center in Carbondale.

But in reality, after full consideration of the pension problem, the idea of shifting costs can’t be easily dismissed. It’s worth further consideration and discussion — all with the understanding that it can’t be done overnight, or over just a few years.

Illinois is in a world of financial trouble. We’d like to be able to say there’s a light at the end of the tunnel, but if there is, it’s a speck of light, at most, and we’re in the world’s longest tunnel. The billions of dollars of debt and unpaid bills are no joke, particularly to those who depend on timely state payments. We give California plenty of company in the “national laughingstock” category.

Two items, in particular, have led to this budgetary boondoggle: Medicaid and pension, which together make up nearly 40 percent of the state’s Fiscal Year 2012 budget. The state’s pension funding gap is $83 million, at the most conservative estimate.

Put succinctly, reform has to happen, and it has to happen soon.

One plan Quinn is looking at would move the cost of teacher pensions from the state to local school districts. A study by the Illinois State Board of Education showed that could put 128 school districts statewide in the red. That could lead to districts having to tighten their belts, and/or increased property taxes as schools look to recoup some of those funds.

But the plan can’t be immediate, if it proves to be worthy at all. Ideally, it might be implemented over a 10- or 15-year period, Quinn said. Such a seismic change requires plenty of time for planning. A time frame of 10 to 15 years sounds reasonable. It would give school districts (and taxpayers) time to plan, adapt and move ahead. Incrementally adjusting a budget over a decade or more leads to much more flexibility than being hit with a multi-million dollar shortfall in one fell swoop.

It would also lead to more local control over pensions, and less responsibility put in the hands of Springfield. Taking some of the power away from Springfield can only be a good thing. Local accountability would ensure accountability is more than a goal.

The numbers released by ISBE also reflect a worst-case scenario. If Quinn’s plan can result in a compromised deal, the numbers would be much, much lower.

Now, the question is, will this reform — or any sort of pension reform — actually happen? Lawmakers were unable to come to an agreement before recessing for the summer, and so far, Quinn and the four legislative leaders have failed to reach a deal.

Earlier this week, Quinn and the “Four Tops” — state Sens. John Cullerton, D-Chicago, and Christine Radogno, R-Lemont, and Reps. Michael Madigan, D-Chicago, and Tom Cross, R-Oswego — met with no appreciable result, other than pushing back pension reform to another meeting, set for early August. That simply isn’t good enough. This can’t be another game of kicking the can down the road.

Of course, other changes need to be made. The state needs to find a way to pay the backlog of bills that have piled up for years — a move that could get school districts back some of the money they deserve and expect. Some of the excess spending and waste in the state government still needs to be weeded out — another necessary move that would help the state dig out of its financial hole or, possibly, free up more money to be spent on necessities such as education.

But pension reform is still one of the most vital issues facing Illinois, and one that must be fixed. Without a plan put in place soon, the entire system could crumble, which could be devastating to the state. No matter how painful the reform appears to be, it’s better than the alternative. It’s time for Quinn and the leaders to make a deal, brighten that light and shorten our tunnel.