As local governments struggle to balance their budgets in the midst of skyrocketing public safety pension costs, municipalities across Illinois are urging Springfield lawmakers to vote in favor of reforms for police officer and firefighter pension systems before the end of the current legislative session.
Across the State, these rising costs have created staggering structural deficits that threaten future benefits and could render local police and fire retirement benefit systems financially insolvent.
Failing to address these widening unfunded liabilities will translate to higher local property taxes, cuts in essential services or public safety layoffs for local residents across the state.
“The rising pension costs are essentially unfunded mandates that have placed an unsustainable burden on municipalities, our budgets and our taxpayers who have to fund them,” said Woodridge Mayor William F. Murphy.
In Woodridge, the municipality’s police fund was 78% percent funded in 2000, while it was only funded at 57% percent in 2010. This is despite taxpayer contributions of $1,069,703 in 2010 as compared to $172,026 in 2000.
Woodridge and scores of municipalities across the state have united in the Pension Fairness for Illinois Communities Coalition (PFICC), which is seeking to address dramatic increases in police and fire pension obligations that local communities must cover through property taxes.