{"id":25272,"date":"2016-01-21T17:13:16","date_gmt":"2016-01-21T23:13:16","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=25272"},"modified":"2016-01-21T18:22:46","modified_gmt":"2016-01-22T00:22:46","slug":"governor-agrees-but-cullerton-responds-not-my-plan","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/governor-agrees-but-cullerton-responds-not-my-plan\/","title":{"rendered":"Governor agrees, but Cullerton responds: \u201cNot my plan\u201d"},"content":{"rendered":"

By Harvard Zhang<\/strong><\/p>\n

An unusual state bipartisan move took a turn Thursday as Illinois Democratic Senate President John Cullerton said a pension proposal Republican Governor Bruce Rauner attributed to him and endorsed\u00a0was not what they talked about and didn\u2019t have his support.<\/p>\n

Sen. Cullerton\u00a0declared that\u00a0he and the governor still have \u201cfundamental disagreement\u201d over the role of collective bargaining in a pension overhaul, a role\u00a0that he thought should continue to exist but the governor didn\u2019t.<\/p>\n

The plan Governor Rauner outlined at a\u00a0Thursday morning press conference in the James R. Thompson Center in Chicago \u201cisn\u2019t what we discussed this morning and doesn\u2019t have my support,\u201d Sen. Cullerton said in a statement. \u201cI look forward to working with the governor to clarify these issues and appreciate his willingness to consider other ideas and just how far he\u2019s moved away from his original pension reform ideas.\u201d<\/p>\n

<\/p>\n

The governor replied to the senator\u2019s statement arguing both the governor\u2019s and the senator\u2019s legal teams have agreed on the \u201cCullerton model\u201d of pension bill that the governor and Republican leaders endorsed today.<\/p>\n

\u201cWe hope the Senate President still supports this agreed upon model originally developed by his office,\u201d the governor\u2019s communication director Lance Trover said in an email statement. \u201cIf he no longer supports it, we urge him to immediately introduce new pension reform legislation that he thinks will be approved by the Supreme Court, and the governor will be open to considering it. Now is the time to act.\u201d<\/p>\n

The rare bipartisan action, considering the state\u2019s continuing budget impasse caused by disagreements between leaders of the two parties, was expected to save state taxpayers $1 billion a year, according to the governor. The state is $113-billion in arrears in its pension fund contribution obligations.<\/p>\n

\u201cOne billion dollars is not enough, but it\u2019s a step in the right direction,\u201d Governor Rauner said during the press conference. \u201cWe can use this as an example of what we might do together. Rather than continue to dig a financial hole, let\u2019s solve the problems with comprise, free up resources and put it where it belongs together.\u201d<\/p>\n

The governor added that Sen. Cullerton was \u201cappreciative, positive and forward-leaning. The president\u2019s gonna be talking with members of the General Assembly about this.\u201d<\/p>\n

The state pension system has been struggling as Illinois, ranked\u00a0lowest among the states\u00a0by credit rating agencies, remains without a budget seven months into the current fiscal year. Illinois Comptroller Leslie Geissler Munger announced last October that a cash shortage caused by the budget logjam would force the state to delay its $560-million November pension payment.<\/p>\n

Illinois\u2019 contributions to its five pension funds will rise by $288.8 million to $7.8 billion in fiscal 2017, which starts July 1, adding to the state\u2019s budgetary pressure, according to\u00a0the non-partisan Civic Federation citing estimates by the retirement systems.<\/p>\n

The pension makeover plan pertained to a pension bill Senate President Cullerton proposed last May after the state Supreme Court threw out a law attempting to ease the state\u2019s pension\u00a0crunch by sharply cutting\u00a0the prospective\u00a0retirement benefits for current state employees.<\/p>\n

Sen. Cullerton\u2019s \u201cConsideration Model\u201d of retirement benefits is supposed to give government workers a choice between keeping more generous yearly cost-of-living increases or continuing to include salary raises in retirement benefits calculation. Cost-of-living adjustment is utilized to counteract inflation effects on pension benefits.<\/p>\n

The bill would allow\u00a0future retirees a choice: to enjoy\u00a0the present\u00a03-percent compounded\u00a0annual cost-of-living increase in pension benefits in return for excluding future salary increases in the computation of their pensions; or, to retain future pay increases in the pension computation,\u00a0and accept lower\u00a0annual increases, not compounded, in pension benefits.<\/p>\n

The point of contention between Governor Rauner and Sen. Cullerton was on collective bargaining, according to the senator. The governor stressed at the press conference pay raises have to be taken out of collective bargaining for the bill to be constitutional. The Illinois Constitution declares that pension benefits \u201cshall not be diminished or impaired.\u201d<\/p>\n

\u201cEach employee will make their own choice to decide whether they want their salary increase to be pensionable or not,\u201d Governor Rauner said. \u201cNot the union\u2019s choice.\u201d<\/p>\n

Senate Republican Leader Christine Radogno, and House Republican Leader Jim Durkin also voiced their support for the latest pension move.<\/p>\n

\u201cI guarantee that I\u2019ll put more votes on this bill than I was able to do in the last round,\u201d Sen. Radogno said during the press conference. \u201cIt will really be bipartisan, we\u2019ll do our part. I hope it will be the first example of us coming together on many more compromises to move our state forward.\u201d<\/p>\n

Yet state House Speaker Michael Madigan, whom the governor called \u201ccompletely unreasonable and irresponsible\u201d during the Thursday press conference, emphasized that the legislation must be crafted to pass Constitutional muster.<\/p>\n

The pension system overhaul has \u201cnothing to do with who brings up the bill, but how the state Supreme Court rules and whether it is constitutional,\u201d Madigan\u2019s spokesman Steve Brown said.<\/p>\n

Photo at top: Governor Rauner speaks at the press conference. From left to right, Rep. Jim Durkin, R-82nd District, Governor Bruce Rauner and Sen. Christine Radogno, R-41st District. (Harvard Zhang\/MEDILL)<\/div>\n","protected":false},"excerpt":{"rendered":"

By Harvard Zhang An unusual state bipartisan move took a turn Thursday as Illinois Democratic Senate President John Cullerton said a pension proposal Republican Governor Bruce Rauner attributed to him and endorsed\u00a0was not what they talked about and didn\u2019t have his support. Sen. Cullerton\u00a0declared that\u00a0he and the governor still have \u201cfundamental disagreement\u201d over the role […]<\/p>\n","protected":false},"author":224,"featured_media":25320,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,30,585],"tags":[111,873,677,874],"class_list":["post-25272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-public-affairs","category-winter-2016","tag-illinois","tag-pension","tag-politics","tag-rauner"],"yoast_head":"\nGovernor agrees, but Cullerton responds: \u201cNot my plan\u201d - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/governor-agrees-but-cullerton-responds-not-my-plan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Governor agrees, but Cullerton responds: \u201cNot my plan\u201d - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Harvard Zhang An unusual state bipartisan move took a turn Thursday as Illinois Democratic Senate President John Cullerton said a pension proposal Republican Governor Bruce Rauner attributed to him and endorsed\u00a0was not what they talked about and didn\u2019t have his support. 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