After the Illinois Supreme Court ruled a pension reform plan unconstitutional, lawmakers have failed to come up with a solution to a problem that worsens with each passing day. Could some form of federal bailout or bankruptcy restructuring be the answer for Illinois?
Illinois Supreme Court Ruling
A Cook County judge ruled Friday that Chicago's plan to change city workers’ pensions was unconstitutional. The city vows to appeal the decision. We look at the ruling, whether any pension reform can be constitutional, what the consequences are to the city's plummeting bond rating, and whether the city will have to raise taxes to cover the pension liability.
Mayor Emanuel and the city of Chicago are back to square one in efforts to resolve the funding crisis for two of the city's four pension funds, likely exacerbating the city's ongoing fiscal problems.
On Friday, May 8, the Illinois Supreme Court found the state’s 2013 pension reform law unconstitutional, affirming the ruling made six months earlier by a lower court. In its ruling, the Supreme Court said “crisis is not an excuse to abandon the rule of the law.” We discuss the decision with a panel of lawmakers.