Illinois To Delay Pension Payments Amid Budget Woes…

By now, Illinois’ budget problems are no secret.


Back in May, after the State Supreme Court struck down a pension reform bid, Moody’s move to downgrade the city of Chicago thrust the state’s financial woes into the national spotlight. 


Since then, the situation hasn’t gotten any better and despite hiring an “all star” budget guru (for $30,000 a month no less), Bruce Rauner was unable to pass a budget in a timely fashion leading directly to all types of absurdities including everything from the possibility of shortened school years to lottery winners being paid in IOUs.


Now, as Bloomberg reports, pension payments are set to be delayed. Bond payments, apparently, will still be made.


Illinois will delay pension payments as a prolonged budget impasse causes a cash shortage, Comptroller Leslie Geissler Munger said.



The spending standoff between Republican Governor Bruce Rauner and Democratic legislative leaders has extended into its fourth month with no signs of ending. Munger said her office will postpone a $560 million retirement-fund payment next month, and may make the December contribution late.



“This decision is choosing the least of a number of bad options,” Munger told reporters in Chicago on Wednesday. “For all intents and purposes, we are out of money now.”



Munger said the pension systems will be paid in full by the end of the fiscal year in June. The state still is making bond payments, she said.



“We prioritize the bond payments above everything else,” Munger told reporters.


And from Reuters:


Illinois Comptroller Leslie Munger said on Wednesday a $560 million November pension payment will be delayed due to a cash crunch stemming from the state’s budget impasse.



Despite the delay, state pension funds will be paid in full by the end of fiscal 2016, Munger said at a news conference in Chicago.


Source Article from https://www.freedomsphoenix.com/News/184850-2015-10-14-illinois-to-delay-pension-payments-amid-budget-woes.htm?EdNo=001&From=RSS

You can leave a response, or trackback from your own site.

Leave a Reply

The maximum upload file size: 28 MB. You can upload: image, audio, video, document, spreadsheet, interactive, other. Links to YouTube, Facebook, Twitter and other services inserted in the comment text will be automatically embedded. Drop file here

*

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes