Illinois will have to delay a $560 million November payment to its pension funds, and may also delay or reduce a similar payment in December, state Comptroller Leslie Munger said on Wednesday, blaming a cash crunch stemming from the state’s budget impasse.
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“The monthly pension payment of $560 million is the largest consistent expenditure that we have throughout the year”, Munger said, “and it’s one of the few areas where we have some flexibility because it’s not covered by a court order and the delay will not cause immediate hardship”.
However, she says the retirement systems will be paid in full by the end of the fiscal year.
There are months the state takes in more revenue than others; Munger, who as comptroller is in charge writing the state’s checks, says during those times, she’ll try to catch up.
Illinois’ debt service payments on bonds total $3.4 billion in fiscal 2016, while payments to its five retirement systems total $6.8 billion, according to a May budget analysis by the Chicago-based Civic Federation.
Munger urged the governor and state lawmakers to approve a budget that would allow Illinois to regain its fiscal footing.
However, money is still being allocated through state laws and consent decrees at last year’s rates while less revenue is coming in.
The state has been operating without a budget since July 1.
Munger called for the governor and leaders of the General Assembly to get together and work out a balanced budget.
The need for these decisions could have been avoided, Brown argued, had Gov. Bruce Rauner worked with the Legislature.
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“I didn’t think we’d necessarily get there this soon, but I think the comptroller is doing what she can to look ahead and do whatever is possible to keep the state from an even worse position”, said Rep. Joe Sosnowski, R-Rockford.
