IL SR1413

Opposes a proposed pension cost shift that would transfer $10.187 billion in normal pension costs from the State of Illinois to local school districts, community colleges, and state universities over 10 years.

Expresses concern that 67% of Illinois school districts already operate in deficit and would face massive property tax increases or classroom cuts if required to pay pension costs currently borne by the State.

Notes that school districts already contribute 0.58% of pensionable teacher payroll ($92.5 million in FY2012) toward Teachers' Retirement System costs and locally-negotiated retirement options.

Warns that cost shifting to universities would increase tuition costs for students, with Northern Illinois University estimating each percentage of shifted payroll costs would result in 2% tuition increases.

States the Senate's position that an educational pension cost shift would be financially wrong and constitute an unfunded mandate on local educational institutions.