The Illinois House this week voted to borrow nearly $4 billion needed for the state to make its scheduled payment to the pension systems but the Senate needs to act on the House bill to make sure the systems get their money.
Borrowing was the best option since the likely alternative would be for the state to do what has been done in the past: Take a “pension holiday” and forgo the payment until next year, further weakening the pension systems and incurring billions of dollars in additional debt.
The Democrats in the House needed help from Republicans to pass the pension borrowing plan and the same is true in the senate.
Doug Finke at Gatehouse reports
“I have been told there are no votes in the Republican caucus for borrowing,” said Sen. John Sullivan, D-Rushville, one of the Democrats’ budget negotiators.
The Senate did not return to Springfield until late Wednesday afternoon and did not take up any budget issues. Both parties planned to hold private meetings with members Wednesday to talk over positions on the remaining budget issues.
Sen. Larry Bomke, R-Springfield, said Republicans have not yet taken a position on the pension borrowing bill.
“The governor called me (Tuesday). I said I will consider it. Right now, I haven’t ruled it out or decided to support it,” Bomke said.
It’s worth noting that Bomke represents Springfield and thousands of state workers who want their pensions funded.
Keep checking the IEA Website for updates.