Chambana Sun

Following the release of an analysis report from Wirepoints showing 102 of Illinois’ 175 cities are going through a pension fund crisis, Rep. Dan Caulkins (R-Decatur) said that the problem is a very alarming one.

The report, “Communities in crisis: More than half of Illinois cities get 'F' grades for local pensions,” revealed a daunting situation for Illinoisans.  

“This is a growing problem that should alarm everyone in Illinois,” Caulkins said. “We can’t afford to sit on the sidelines and continue to watch our state and our communities drown in pension debt.”

Caulkins also noted how his own district is affected by the looming pension fund crisis, and how the problem hits closer to home.

"I served on the Decatur City Council, one of the 102 cities that have been called out in this study and we had to make very difficult decisions while I served on the council," Caulkins said. "How do we fund the pensions? How do we fund public services, and one of the things that we need to think about is what are the priorities?"

Caulkins also reminded his colleagues in the House that raising taxes should not be the only solution.

"We have an obligation to the pensioners, to the people that have earned a pension in the state," Caulkins said. "We have an obligation to honor that commitment, but we have to find a way. Those pension plans are solvent and you don't do that by pushing down more and more unfunded mandates by stripping their ability to recoup the funds that they’re owed through the income tax system.”

After conducting the analysis on the negative impact of local pension cost, Wirepoints revealed that “In 2003, just 21 of the 175 cities analyzed had less than 60 cents on hand for every dollar they needed to fund the future benefits of their police, firefighter and IMRF funds."

The report further revealed that “An alarming number of municipal pensions have moved closer to insolvency in just 16 years” with 99 of the 175 cities that the organization reviewed not reaching the 60 percent funding level. 

“A 60 percent funding level is often seen as a point of no return, or a tipping point, from which pension funds can’t recover,” Wirepoints reported.