Sunday, September 23, 2012
Bipartisan Group Opposes Federal Pensions Bailout
The Illinois Policy Institute launched “No Pension Bailout,” this week, a national movement to block Congress‘ attempts to rescue failing state and municipal pension plans. U.S. Sen. Jim DeMint, R-S.C., joined John Tillman, the institute’s CEO, presenting a study proving any bailout would "punish responsible states and reward reckless ones". The study shows the winners and losers by state and county. It's located here:
“States will assume they can run their pension systems into debt and turn to the federal government,” said DeMint. “For decades state legislators have endeared themselves to public employees with pension promises … based on accounting methods that would put any business in jail.” DeMint said blocking any hope of a bailout forces state politicians “to deal with this problem immediately.”
In fact, however, according to the study, Illinois would be among the top five winner states in a federal pension fund bailout since it has one of the highest pension debts per household, about $35,000.
In Illinois, DeMint said, “we had a $7 billion tax hike that was supposed to solve all our problems, pay all our bills, and instead it all went to pensions.”
According to the report, McHenry County is a donor county receiving less money back than it sends to Washington. The report figures McHenry County only receives about 35 cents of every federal tax dollar generated within it under current regimes. A federal bailout of Illinois pension systems would raise the return to 66 cents according to Illinois Policy Institute calculations.
You can read the full report on this story at: http://watchdog.org/56978/dc-demint-no-fed-bailout-for-state-pensions/
In the pic: U.S. Sen. Jim DeMint