VIDEO: One simple solution to brutal Illinois tax hikes

[VIDEO] At the expense of being accused of copyright infringement I just had to upload this editorial by the General Manager of our local FOX affiliate Dennis Welsh. With that in mind what you see above isn't owned by me, merely uploaded - unlisted - to my YouTube account. It is for educational purposes and for the sake of history that must be preserved.

Here's the pension language in the Illinois constitution contained in section 5 of article XIII. What's been put in bold were emphasized in the video above.

SECTION 5. PENSION AND RETIREMENT RIGHTS

Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

(Source: Illinois Constitution.)

In 2008, this state had the opportunity to vote in favor of a state constitutional convention and it could've address this pension language. Unfortunately voters in Illinois voted against a convention because many arguments against this involved pensions.

Now with an income tax hike, sales tax in Chicago, and even a potential property tax increase for Chicago schools are mostly for pensions. As one of the people in the video above states less money for the students, for roads, or for police most of that money is going for public employees' - yes I'm including teachers in that - retirement!

To this I say what a shame! We've gotten ourselves in this mess and it's hard to get out because these government employees want their generous pensions. Taxes are going up because we can't afford them and it seems they will continue to go up as long as they use Illinois' constitution framework to fight any attempt to reform this system. It needs reform for sure!

Capitol Fax: Who knew?

I didn't show this fast enough, but some of the bickering between Mitt Romney and the President Tuesday night some of it was about pensions. Romney made sure to note that the President's pension most of which he accrued as an Illinois state Senator had also come from overseas investments. I'm sure that point was made against Romney's considerably sizeable pension that also contains foreign investments which includes Chinese investments.

Well that is the charge afterall, Romney is making all this money and he's set for life. And look his money is not even all that American. So before the end of the bickering, Obama made sure to note that he doesn't have as much to look at as Romney. Score one for the President!

I recognize that this point was only made regarding the President and what Rich Miller sought to explain in his post was where the President's state pension is coming from. He wanted to show how ignorant outsiders are about what's really going on in this state. He didn't really dispute much of anything other than where the money for the pensions are coming from.

Well all this to say, what does this say for us? Many of us can only wish for the generous pensions politicians and public employees get for their pensions. Even then pensions are today's bogeymen because we hear reports that governments can't afford these anymore. Where ever the money is coming from in these various pensions where will the government get this money. I'm sure that money comes from the taxpayers to invest overseas.

All the same I would rather keep the focus on the economy and not on where the money comes from for governmental pensions. Also if these pensions are out of control for the taste of the taxpayers we shouldn't nitpick on where the money comes from, but also nitpick on how to dispense these pensions. I accept that they just can't be as generous as they used.

Oh and for the sake of clarity I do have a lot more to learn about pensions. My issue is that hopefully the numbers and the various pension systems aren't too difficult to understand.

Capitol Fax: A truly messed up situation

Rich Miller talks about the state of pensions in Illinois. Well its an issue in a number of states and I wonder if other states have pensions in their constitution like this state does. In any event, this column talks about one of his relatives and then the issue of pensions in this state.

An interesting lawsuit...

From the CapFax. It was news yesterday that a retired state judge is suing the state over their plan to make state retirees pay their health insurance premiums are unconstitutional. The state constitution has a provision especially for pensions contained in article 13:

SECTION 5. PENSION AND RETIREMENT RIGHTS Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired. (Source: Illinois Constitution.)

Now I wonder why this provision is in the state constitution and can this be found in any other state constitution. Also, now a retired judge is going to argue that health insurance is protected under this provision?

Should be interesting to watch!

State Rep. Franks: Take away new lawmakers’ pensions

You know this makes a lot of sense to me. At the very least change the terms of those new comers to the civil service so that they can't benefit as generously from public pensions as so many have had in the past or even currently:

Rep. Jack Franks, a Marengo Democrat, wants to take the chances for state pensions away from all future lawmakers.

Franks has filed legislation that would keep all members of the Illinois General Assembly taking office in 2013 and after out of the state pension system in an effort to save money.

Franks acknowledges doing so wouldn’t make a huge difference to the state’s huge budget problems, but he said it’s important to cut where possible.

“I can’t think of anywhere else a person can work part-time and receive a pension, let alone a pension as lucrative as those received by Illinois lawmakers,” Franks said in a statement.

In 2008 where many people were focused on electing our then US Senator to the Presidency, Illinois also had the option to vote for a state constitutional convention. There were many who opposed it because they feared the impact it could have on state pensions. Of course pensions are an issue now that many of the states are suffering through financial deficits.

And it's perfectly reasonable for Rep. Franks to exclude those who have already earned their benefits. Just focus on those who will join the civil service in the future and change the terms of their pensions. I won't say they shouldn't earn one, but that the system can't stay as is now.