Illinois Senate Rejects Gov. Rauner’s Veto in 38-19 Override

Pension reform bill now goes to Illinois House, requires three-fifths majority vote.

Illinois Senate Democrats overrode Gov. Bruce Rauner’s amendatory veto Sunday, rejecting his efforts to alter a pension reform bill in his vision.

The 38-19 override saw  one Republican, Sen. Sam McCann of Plainview, voting in line with Democrats— bringing the bill to the House of Representatives, where it must pass with a three-fifths vote. Although the House has 15 days to act on this override, the Senate also passed a contingency bill should the House fail to do so that would restart the process of fixing the school funding issue.

According to an analysis of the amendatory veto released by the Illinois State Board of Education, Chicago Public Schools (CPS) would receive $463 million less in funding for the coming school year under the Governor’s plan than the one approved by the Illinois General Assembly. However, under Rauner’s formula, ISBE found that CPS would receive $1.31 billion this year, an increase of $28.6 million from the year before.

According a document released by Rauner’s office, not counting an additional $221 million in aid for CPS outside of the school funding formula, CPS would lose $242 million under his veto. After removing the millions from CPS, Rauner’s version would distribute the amount to other districts. Democrats opposed the veto, citing districts with declining enrollment could lose state money under these changes.

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

“Governor Rauner’s education funding veto brought together rural, suburban and urban educators and legislators in bipartisan opposition to the governor and in support of today’s veto override. This diverse group of educators and leaders knows the Senate’s education bill is right for Illinois children and the governor’s veto is flat wrong,” Chicago Mayor Rahm Emanuel said in a statement. “I want to thank Senate President Cullerton and the state Senators who voted on behalf of students and educators. The Senate’s vote is a bipartisan rejection of the governor’s divisive politics and of his repeated attempts to pit children with different backgrounds and from different parts of the state against one another.”

Defending his veto, Rauner called on legislative leaders in a statement to meet as quickly as possible to resolve the override.

“This weekend, the Illinois State Board of Education released data showing my amendatory veto sends the most amount of resources to the neediest school districts in Illinois. These numbers clearly show how badly change is needed to ensure fairness and equity in how we fund our children’s schools.”

State aid funds to school districts were supposed to be sent out August 10, but due to a budget package requirement, which says the state needs an “evidence-based” funding formula approved before it can release them, they were not released for the first time since the creation of the comptroller’s office in the 1970s.

The House is scheduled to be in session next Wednesday.

“We are hopeful that Speaker Madigan and President Cullerton share our sense of urgency to reach resolution. Families and educators across the state are heading back to school,” Rauner said. “We owe it to them to adopt a funding formula that is fair and equitable to all, and we owe them the assurance that their schools will open and stay open for the remainder of the school year.”

Tags: , , , ,

CalPERS $100K Pension Club up 63% Since 2012, Watchdog Says

Transparent California’s report notes more than 850 six-figure CalPERS retirees in Santa Clara County.

CalPERS still analyzing data.

A California watchdog released 2016 pension data last week that found a 63% increase in the number of retired public workers in the state earning six-figure pensions since 2012.

Transparent California’s report notes that the California Public Employee Retirement System (CalPERS) paid out more than $20 billion to 646,843 pensioners. Of those retirees, 22,826 earned pensions more than $100,000 in 2016. The average pension for a full-career former CalPERS employee in 2016 was $66,400.

The largest CalPERS pension went to former Solano County administrator Michael Johnson at $390,485.

The most CalPERS pensions over $100,000 went to Santa Clara County, where 861 recipients collected their six-figure retirements. Trailing at second and third were Oakland and Riverside County, with 523 and 469 respective pensioners.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

In 2016, there were 52,963 total statewide six-figure retirees from all pension systems. The largest California pension last year went to former Deputy Chief of Police Earl C. Paysinger, who received a payout of almost $1.5 million. Paysinger’s pension includes a one-time DROP payout of $1,338,232.

In regards to Transparent California’s information, CalPERS is still analyzing the data —with more information to be made available early this week.

According to the fund the overall statewide average pension of a CalPERS retiree is $33,528 —although 76% of retirees receive an average non-safety pension of $29,088. Only 3% of CalPERS service retirees overall receive pensions of $100,000 or more per year. They are usually executives who hold seats in either city or county offices, or are physicians, or senior managers for police and fire departments.

“Unlike the private sector, about 24% of CalPERS retirees don’t coordinate with Social Security for benefits and their CalPERS pension may be their sole source of retirement income,” Amy Morgan, Information Officer, Pensions and Retirement, CalPERS told CIO in an email. “Pensions are funded by both the employee who contribute every month out of their paycheck and the employer contributions, which are invested for fund growth over time. Some workers currently contribute up to 15.25 percent of their paycheck.”

Transparent California has more than 1.1 million pension records from 33 public California plans. According to the watchdog’s research director Robert Fellner, Californians will spend “over $30 billion on pension costs in the coming year.”

Tags: , ,

«