IL HR0038

States that Illinois' budget crisis has prompted proposals to shift State funding of normal pension costs for the State Universities Retirement System and Teachers' Retirement System to local entities including school districts, community colleges, and public universities.

Notes that the FY18 projected normal cost for the State Universities Retirement System is $424.9 million and for the Teachers' Retirement System is $967.5 billion, representing a $1.392 billion pension liability shift to local governments for FY18 alone.

Argues that shifting these costs would force significant local budget reductions, teacher layoffs, and curriculum cuts while Illinois already has one of the largest residential property tax burdens in the nation.

States that the Property Tax Extension Limitation Law prevents local school districts and community colleges from increasing revenues to accommodate such a cost shift, making it impossible for them to plan for unpredictable pension expenses.

Resolves that the normal cost of pensions for State educators is the State's responsibility and that the General Assembly should not shift this financial responsibility to local taxpayers during the current budget crisis.