(The Center Square) – Chicago taxpayers will be expected to provide larger payments for retired police and firefighters after Gov. J.B. Pritzker signed a Tier 2 pension bill into law.
House Bill 3657 is one of 124 bills the governor signed last Friday. The measure amends the Chicago Police and Chicago Firefighter Articles of the Illinois Pension Code to enhance benefits for Tier 2 retirees.
Chicago Mayor Brandon Johnson said he expressed concerns about the bill to state lawmakers.
“I am still very much concerned about the expectation and the demand of taxpayers to be able to pay these pensions, particularly without any progressive revenue attached to it,” Johnson said on July 23.
Chicago is facing an unfunded pension liability of $36 billion and a budget deficit of more than $1 billion.
Chicago Alderman Nicholas Sposato was asked if progressive revenue was the only way out of the city’s financial hole.
“Funny you say that, because I was talking to the budget director today. This is going to be a very ugly-type deal. Basically, it’s going to be ‘pick your poison.’ Me for example, and I’m guessing most of the people in my common-sense caucus will be with me, we don’t want to raise taxes. We don’t want to cut jobs and services, but what are we going to do? How are we going to do this?” Sposato said.
Sposato was a Chicago firefighter for 18 years. He did not express opposition to Pritzker signing HB 3657.
“I’m certainly not an expert on this, but it’s about fairness. I do appreciate the governor signing what’s fair. A lot of people don’t feel that unions are fair. Why do Chicago guys make a hundred grand a year and … Iowa guys make 50 grand a year? It’s about fairness, about two different tiers of pay levels,” Sposato told The Center Square.
The 38th Ward alderman said firefighters have an expired contract and haven’t had a raise in four years.
“So they’re still making what they were making four years ago. Once this gets settled, you’re going to be seeing in the paper that hundreds of millions of dollars goes to the firemen. Well, you know, they haven’t had a raise in four years. What’s so unfair about that?” Sposato asked.
HB 3657 took effect immediately after Pritzker signed it last Friday.
Greg Bishop contributed to this story.
