Oak Park's state senator hopes fall brings pension reform

Following hiatus, Harmon seeks review of the system

Monday, July 2nd, 2012 10:00 PM

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By Anna Lothson

Staff Reporter

It's no secret that the pension crisis, as it's known to many local and state government officials, has crippled Illinois' budgets.

Debates about who should fund what pension and at what rate have risen to the top of the political agenda. This is one subject state Senator Don Harmon (D-Oak Park) hopes the state legislature can tackle before the November election.

School district pensions in particular have been the hot-button item recently, following House Speaker Mike Madigan's support for shifting pension liability from the state onto local school districts.

"I think it's important to make sure teachers have a secure retirement," Harmon said in a recent phone interview. "I think shifting the costs to the school districts makes a lot of sense."

As long as school districts are taught to be "responsible" with their funding strategies, Harmon said, a reasonable solution could be phased in gradually. Most school districts he and his colleagues have talked with say they could take on the responsibility.

Harmon said the shift could benefit school districts because it would allow them to have more control over pension payments instead of relying on state government. It would also free up funding for other education programs, he added, which have faced statewide cuts in recent years.

"We should align decision-making and responsibility to pay," Harmon said.

That doesn't mean, however, that districts would be entirely on their own. "There is a reasonable argument that there should be some statewide rules on pensions and retirements," he said.

Pension discussions, said Harmon, are strictly related to school districts and universities, and shifting other pension-related costs is not a topic of conversation.

Currently, he said the four legislative leaders and Governor Pat Quinn have been meeting about the topic; he hopes by the return of the fall session there will be a conclusion. Otherwise, it will have to wait until the veto session following the November election.

Bottom line, Harmon reiterated, "It's important teachers have a secure retirement. I think it's important to demonstrate our responsibility to pension reform. We need to do it sensitively. We need to do it responsibly so it doesn't punish people who've given their lives to public education."

Harmon called the spring session "extremely painful," in large part due to the opposition's response.

"I'm still baffled at how many Republicans clamoring for pension reform would get cold feet when they were pressing to do it."

Harmon is hoping a bipartisan solution can be reached; otherwise the supporters will have to "muster the Democratic majority to do the right thing. The General Assembly said we're going to solve the problem and not just kick the can down the road. We have demonstrated a newfound willingness to take on the most difficult problems head on."

Reader Comments

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Unfortunately

Posted: July 11th, 2012 10:51 AM

"Bottom line, Harmon reiterated, 'It's important teachers have a secure retirement. I think it's important to demonstrate our responsibility to pension reform. We need to do it sensitively. We need to do it responsibly so it doesn't punish people who've given their lives to public education.'" Translated: Harmon has to make certain that teachers can still retire at 56 with pensions exceeding the median income in OP. This ensures that union continues to support Dem's. So, bend over Oak Parkers!

Done from Oak Park

Posted: July 11th, 2012 9:12 AM

From the July 1 Tribune insert on "Information from the Office of the Cook County Treasurer": Dist 200 Unfunded Pension Liability: $6.6M; % Funded: 68.9%; Dist 97 Unfunded Pension Liability: $13.8M; % Funded: 42.4%; Village of OP Unfunded Pension Liability: $94.7M; % Funded: 57%. The Township and Park District don't add much to these totals. This leaves a total of over $155M of UNFUNDED pension liabilities that needs to be paid. How does this become my problem on my tax bill? I've already paid.

Mary Ellen Eads from Oak Park

Posted: July 11th, 2012 8:08 AM

But how much is this pension cost shift going to cost the average business or homeowner in Oak Park. For whatever reason, this information is unavailable. I know it depends on how the law is written and so forth, but give us a range and tell us how you made the calculations. Other communities may well support this initiative, but their property taxes may not be as high as they are here. If passed, we will be tacking the increase onto taxes that are already burdensome for many.

Tax Fraud

Posted: July 10th, 2012 10:15 PM

@ Dan Harmon is a tax fraud - to say the failure of pension reform is the fault of "Republicans" By saying this, he not only looses ALL credability, toes the ugly party line, but he also admits HE is in favor of transfering all liability to LOCAL OP taxpayers. Thanks Dan - will not be voting for you in the fall - and suggest others take notice and consider the same!

Dan in Oak Park

Posted: July 10th, 2012 5:55 PM

Senator Harmon, great plan. Run up the pension liability by using money to pay other things, then declare a need for reform and push the bill down to the local property tax payers. No need to reform costs, just shift who will pay. You maxed out the state income tax credit card, so now you want a new local property tax credit card to run up. School district support is beside the point. School districts get their money from the taxpayers, who most probably will mind. Remember them, voters?

Done from Oak Park

Posted: July 10th, 2012 4:25 PM

"This is one subject state Senator Don Harmon (D-Oak Park) hopes the state legislature can tackle before the November election." Before?!? When was the last time our legislature ever tackled an issue that could possibly cost them their job before an election? Snowballs chance in hell this happens. And Harmon? Vote his as% out to!

Brian in Oak Park

Posted: July 10th, 2012 1:58 PM

Postponing legislation on pension reform until after the election is a decision made by the State's leaders. What is being decided by these folks needs accountability, and Quinn, Madigan and Cullerton are avoiding public input. Their methods, while adding $12 million in costs daily, are inexcusable. Mr. Harmon is culpable as Assistant Majority Leader of the Senate.

Brian in Oak Park

Posted: July 10th, 2012 1:52 PM

I'd like to know if Mr. harmon spoke with District 200 and 97 and whether they both agreed they could absorb the costs. After all, he represents our district, not Mike Madigan. Since he seems to know how much these districts are agreeing to absorb, would he mind telling the rest of his constituents? Pulling the last minute show and tell on pension reform does not mean republicans or democrats shirked their duty to pass on a decision. But, waiting until after the election does.

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