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Archive for the ‘Pension Funding’ Category

Illinois ranked No. 1 for spending per student on higher education in 2024, paying more than double the national average. Declining enrollment, poorly structured finances, growing pension payments and bloated administration have driven up costs.

By Patrick Andriesen | Illinois Policy Institute

Illinois spends double the U.S. average per full-time higher education student, yet 106,375 fewer students want to attend its public community colleges and state universities than 15 years ago.

Pensions, administrative bloat and a poor funding formula are mainly to blame.

Illinois ranked No. 1 in the U.S. for higher education spending per full-time student in fiscal year 2024, spending $25,529 per student. That was double the national average and over $4,400 more per student than the No. 2 state: Wyoming, which had only about 8% of the students Illinois supports.

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That translates to Illinois spending the most in the nation per full-time student at public two-year institutions and the second most in the U.S. per full-time student at public four-year institutions.

But all that government money has failed to make Illinois higher education more attractive to students. Enrollment at two- and four-year institutions has dropped from 368,019 in 2009 to 261,644 in 2024, according to the State Higher Education Finance report.

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As spending by the state on higher education has climbed, so has the cost of tuition. Illinois’ in-state tuition for a public university now ranks No. 6 in the nation. It is the highest in the Midwest, rewarding Illinois students with more affordable options when they cross state lines.

Research in 2021 showed nearly 48% of Illinois’ four-year, college-bound students chose schools elsewhere, with the top picks being public universities in neighboring states where tuition was cheaper. They took their knowledge, income and tax dollars with them – often for good.

So why are Illinois taxpayers being forced to spend more on higher education when their schools are serving fewer students? And why does all that government spending fail to keep Illinois tuition from being among the highest in the nation?

State pensions, administrative glut and a poor funding model are mainly to blame at the state’s 12 public universities and 48 community colleges.

Read more here.

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The “Cecola Room” depicted in planned $328,500 Village Hall renovations.

The Village Board of Trustees will be conducting their regular monthly meeting this evening beginning at 6:30 PM. Items on their agenda include:

A copy of their agenda can be viewed and downloaded here.

Related:‘It is an enclave’: Developer defends concept of gated community on former PepsiCo site in Barrington,” “Barrington Plan Commission Public Hearing regarding proposed 88 single-family home development at former PepsiCo site continues Tuesday,” “Barrington luxury home proposal draws criticism from plan commissioners, residents, park district,” “Barrington Plan Commission Public Hearing tomorrow night regarding planned 88 single-family residential homes at former PepsiCo site,” “Barrington posts further information on proposed Claremont development,” “Barrington posts Public Hearing notice regarding proposed 88 home development at former PepsiCo site,” “88 custom home development planned for former PepsiCo Research & Development Center property in Barrington

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The Village Board of Trustees will be conducting their regular monthly meeting this evening beginning at 6:30 PM. Items on their agenda include:

A copy of their agenda can be viewed and downloaded here.

*Commercial development planned off Ridge Road in unincorporated McHenry County

Related:Barrington luxury home proposal draws criticism from plan commissioners, residents, park district,” “Barrington Plan Commission Public Hearing tomorrow night regarding planned 88 single-family residential homes at former PepsiCo site,” “Barrington posts further information on proposed Claremont development,” “Barrington posts Public Hearing notice regarding proposed 88 home development at former PepsiCo site,” “88 custom home development planned for former PepsiCo Research & Development Center property in Barrington

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By Bridgette Fox | Capitol News Illinois

The cost to attend state universities has been rising, and some institutions have said they’ll have to continue pushing the brunt of state budget shortfalls onto students and families if there isn’t a change.

Data from the Illinois Board of Higher Education, which oversees public universities, shows university income has had to make up for the steady loss of funding from the state since around fiscal year 2009 as compared to inflation.

Since that point, state investment hasn’t kept up with inflation, and tuition and fees have risen steadily despite the fact that Gov. JB Pritzker’s administration has regularly increased higher education funding. The fiscal year 2026 proposed budget includes a 3% increase for higher education in the general fund for operating costs – which is about the same as the rate of inflation.

The cost of tuition and fees for statewide undergraduates on average has risen 10% higher since FY09 than if it had simply kept pace with inflation. For graduate students, that discrepancy is 16%.

The University of Illinois Chicago is the only school that has seen tuition and fees for both graduate and undergraduate students grow more slowly than inflation

Tuition and fees for undergraduate students have increased at every public state university except for University of Illinois Chicago and University of Illinois Urbana-Champaign. (Capitol News Illinois graphic by Bridgette Fox)

Tuition and fees for graduate students have increased at every public state university except for University of Illinois Chicago and University of Illinois Urbana-Champaign. (Capitol News Illinois graphic by Bridgette Fox)

Administrators from many of the states’ universities have said they’re holding out hope that a new funding formula, contained in Senate Bill 13 and House Bill 1581, will alleviate some financial burden.

Read more here.

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The Barrington Countryside Fire Protection District (BCFPD) Board of Trustees meets tonight at 6:30 PM at 22222 N. Pepper Road in Lake Barrington. Topics on their agenda include:

  • Consideration and possible approval of an Ordinance declaring surplus property and authorizing and approval the disposal of said equipment (A5)
  • Capital Plan Ambulance Purchase Concurrence Request
  • Lieutenant/Paramedic Promotional Recommendations
  • Deputy Chief Annual Review, and
  • BCFPD Pension Plan Discussion

A copy of their agenda can be viewed here.

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The Village Board of Trustees will be conducting their regular monthly meeting this evening beginning at 6:00 PM. Topics on their agenda include:

A copy of their agenda can be viewed and downloaded here.

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Rep. Martin McLaughlin, R-Barrington Hills

The 26th Legislative District Committee for the Republican Party is scheduled to meet Friday at 1 PM to vote on filling the vacancy in the State Senate due to the resignation of Dan McConchie, which was effective February 2, 2025.

The committee did appointed a candidate in mid-February, however their appointment had to be put “on hold” due to legal and other matters. At the same time, several issues regarding that candidate surfaced on social media and caused many to pause and reconsider that candidate’s fitness for office.

Before the committee makes their decision, we thought it important for them and our readers to reflect on why State Representative Martin McLaughlin deserves renewed consideration for the seat. The following are just a few of the endorsements from the dozens that we had to choose from that support our case:

Endorsement: McLaughlin in Republican primary for Duffy’s state senate seat (February 17, 2016)

When state Sen. Dan Duffy decided he would retire from the Illinois legislature in 2017, it opened a door for suburban Republicans eager to try their mettle in Springfield.

Three candidates are running for the Republican primary in the 26th state Senate District, 253 square miles that reach from Waukegan, Libertyville and Buffalo Grove on the east to Crystal Lake, Algonquin, Carpentersville and Hoffman Estates on the west and southwest.

Of the three, our choice is Barrington Hills Village President Martin McLaughlin.

Read the full Daily Herald endorsement article here.

Endorsement: McLaughlin for state House Dist. 52 (September 17, 2020)

Martin McLaughlin, left, and Marci Suelzer

The voters in the 52nd Illinois House District have been spoiled by the representation of David McSweeney.

To all those who say individual state representatives are powerless in a General Assembly controlled by legislative leaders, we say look at the performance of the Barrington Hills Republican.

For eight years, McSweeney has served with unmatched energy and tireless efforts at building relationships on both sides of the aisle. and by keenly picking his spots, he’s been uniquely successful at getting things done.

McSweeney will be a tough act to follow, but the voters have two good options to do so — Barrington Hills Village President Martin McLaughlin and Democrat Marci Suelzer of Island Lake, who brings a well-rounded background in legal affairs and mental health.

We recommend McLaughlin, the Republican.

Read the full Daily Herald Editorial Board endorsement here.

Endorsement: McLaughlin for Illinois House Dist. 52 representative (October 14, 2022)

Martin McLaughlin, left, and Mary Morgan are candidates for the 52nd Dist. state House seat in the 2022 general election.

Republican Martin McLaughlin brought eight successful years of experience as Barrington Hills village president when he entered the Illinois House in 2021. Now, he’s seeking a second term in the newly drawn House Dist. 52 and his thoughtful, measured approach to state government makes him the right person for the job.

Dist. 52 stretches from near South Barrington north toward Ivanhoe and Volo with a slight westward dip into McHenry County.

With a background in investment management, McLaughlin is particularly well suited to help address the financial issues facing the state, and his tenure at the helm in Barrington Hills was marked by his success at providing needed services while keeping taxes low. He favors the traditional limited-government positions of his party, yet — on issues including education, crime, government spending and more — he remains thoughtful and independent in working out the details of legislation and examining problems facing the state.

McLaughlin is endorsed.

Read the full Daily Herald endorsement article here.

Endorsement: McLaughlin for Illinois House Dist. 52 (October 13, 2024)

Martin McLaughlin, left, and Maria Peterson

In two previous runs for Illinois House, we have consistently found former Barrington Hills Village President Martin McLaughlin a steadfast voice for controlled spending with an independent mentality that can help him work effectively in the Democratically controlled chamber. We see much of the same as he seeks his third term in the race for Illinois House Dist. 52.

In this campaign, we are particularly impressed with his detailed position on ethics reforms for lawmakers that remain to be addressed. He says lawmakers should lose their state insurance and pension plans if they are found guilty of a crime, and he wants stronger controls on what he calls “the special interest contributing class.” He also wants tighter rules regarding legislators who transition to lobbying, possibly including restricting them or their staffs from lobbying the same government entity they previously worked for.

We also appreciate his resolute stance on controlled government spending, especially as the state gets set to enter a period of complex challenges.

Read the full Daily Herald endorsement article here.

Martin McLaughlin deserves the committee’s vote to appoint him Friday. He has earned it.

Related: Darby Hills’ appointment to state Senate on hold as Republicans reopen applications for McConchie’s seat,” “26th Legislative District Committee meeting cancelled,” “State Senator seat at any price?,” ”26th Legislative District Committee meeting tomorrow,” “Do Over Scheduled for Meeting to Replace State Senator Dan McConchie,” “Restraining order sought to block 26th Senate appointment amid legal fight,” “Lawsuit challenges legality of GOP appointment to 26th State Senate seat,” “McConchie’s would-be successor isn’t a Republican and can’t serve, lawsuit alleges,” “Darby Hills Appointed as New State Senator for Illinois’ 26th Senate District

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People walk the halls Jan. 8, 2025, at the Illinois Capitol in Springfield. | Brian Cassella/Chicago Tribune

By The Editorial Board | Chicago Tribune

The state of Illinois is seeking employees who don’t want a 40-hour workweek.

A cringey commercial you may have seen recently boasts that working for the state can mean five weeks off in your first year on the job, with flexible hours, a hybrid setup and good work-life balance, all while enjoying a 37.5-hour workweek.

This sounds like a sweet deal. Also one unavailable in most other full-time careers.

We know of course that some state workers toil long and hard at their jobs. Still, the state’s clueless ad leans into the worst critiques and caricatures of government work, maybe in an effort to appeal to a post-COVID-19 workforce that resents being called back to the office.

“What do you want from your career?” asks a voice at the start of the commercial. The faux potential recruits don’t then talk about their ambition or their desire to serve or to make Illinois better.

They talk about how much time off they want. Seriously? That’s the message?

We don’t take issue with people earning fair wages, getting breaks and having good benefits, but the commercial is tone-deaf. And it’s hard not to be miffed when you consider how state worker benefits compare with those the people paying taxes are getting.

An open administrative role for the Department of Commerce and Economic Opportunity pays up to $126,000 per year, and an open nurse position posted online in Elgin pays up to $102,000. State workers also retire with better benefits than the average Illinoisan. The maximum annual Social Security benefit for those in the private sector retiring at 62 for 2023 was just $30,864, while the average starting pension for career workers participating in the State Employees’ Retirement System is $52,920 (many state workers also get Social Security for private work, and some have retired as early as 55).

Read more here.

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By Ted Dabrowski and John Klingner | Wirepoints 

Imagine you work for a major company that’s looking to expand its footprint somewhere in the country. The company can go anywhere, and so you look at booming cities in Florida, Texas and a host of other states in the South. And of course, you can’t ignore the old standbys, including Chicago.

But you then see two stories that rapidly dissuade you from considering the Windy City.

That was the reality for any business person reading the news last week. Two articles separately highlighted the city’s overwhelming debt and crime problems, with two paragraphs in two important documents giving particular pause.

The first paragraph was tied to a New York Times article by Andrew Biggs, titled  “What’s the matter with Chicago?”, in which he said, “the word bankruptcy has been hanging over Chicago like a storm cloud about to burst.”  

Part of his evidence for bankruptcy was the city’s own pension actuaries warning of “potential insolvency” for the city’s biggest pension system. The Municipal Employees’ Annuity and Benefit Fund is just 22% funded and has one of the poorest liquidity positions in the country.

In its letter to the pension fund’s board members, the actuary wrote

“Given the low funded ratio and the expected timing of employer contributions, the Fund is still at risk of potential insolvency if an economic recession or investment market downturn were to occur in the near term.”

It’s not just the municipal fund that’s in trouble. Chicago’s three other city-run pensions are in equally bad shape, and so is the pension fund for Chicago teachers. Adding up all their debts, Chicago has $53 billion in unfunded pensions. It’s one of the big reasons the city has the worst credit rating in the nation.

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The safety of employees and customers is another key consideration. Unfortunately for Chicago, companies looking to attract investment are being forced to acknowledge the risks of the city’s crime problem

Crain’s reported that Bally’s, the company building the city’s first casino, officially expressed, in its $250 million stock offering documents, a concern to potential investors about crime’s potential impact on its future revenues:

“Business interruptions in Chicago due to crime or civil unrest could adversely affect us. Our business and our assets are planned to be primarily located in Chicago, Illinois, a city which has recently experienced very high levels of criminality and civil unrest. Heightened criminality or the perception of danger among our customers, and events of civil unrest, at or in the vicinity of any of the facilities that we operate and intend to operate, including our temporary casino and our permanent resort and casino, could result in a decline in customer traffic and spending patterns, which would result in a decline in revenue.”

It’s understandable why Bally’s would be so concerned and why it would warn potential investors. 

Chicago was the nation’s homicide capital for the 13th year in a row in 2024. Even with an 8% drop in murders last year, Chicago’s homicide rate remains nearly five times that of New York City (21.5 vs. 4.5 murders for every 100,000 residents) and 3.1 times higher than Los Angeles’ (21.5 vs. 7.0). And the fact that violent crime continued at a near-six year high last year serves as a clear warning to any business considering locating here.

Read more here.

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“At our Dec. 17 meeting, the Board approved the district’s share of the local property taxes for 2025. Barrington 220 collects property taxes from Cook, Kane, Lake and McHenry Counties, and property taxes account for approximately 80% of the district’s annual operating revenues. While the district expects to receive an overall levy increase of 4.5% compared to last year, it has requested a 5% increase in the event new construction costs are higher than expected. This includes the capped funds and debt service obligations.

Based on projections, the total expected tax revenue to be collected in 2025 is $164,454,578. The Board did not issue Debt Service Extension Base (DSEB) this year; however, we still have the option to do so this fiscal year.”

Click here to read tax levy FAQs.

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