IL SR1519

Opposes a proposed educational pension cost shift that would transfer responsibility for Teachers' Retirement System and State Universities Retirement System pension costs from the State to local school districts, community colleges, and higher education institutions.

Identifies the proposal as shifting approximately $10.187 billion in estimated normal pension costs over a 10-year period from the State to local educational entities, with actuarial changes likely increasing these amounts further.

Notes that 67% of Illinois school districts are currently operating with budget deficits and school districts already contribute 0.58% of pensionable teacher payroll plus $92.5 million annually for other pension-related costs as of Fiscal Year 2012.

Warns that cost shifts to universities would necessitate tuition increases (Northern Illinois University estimated each percentage point of payroll cost equals 2% tuition increase) and would disproportionately harm downstate, suburban, and Chicago taxpayers while increasing school funding inequities.

Declares that the educational pension cost shift would be financially wrong and convert pension burdens into unfunded mandates on local educational entities.