The pension reform plan approved by lawmakers last month will have only a minimal impact on Illinois’s chronic budget deficit, according to researchers at the University of Illinois.
The Institute for Government and Public Affairs finds that even though the reform plan would stabilize the pension funds, it won’t stop the rising tide of red ink, which is estimated to climb to $13 billion by the year 2025. That’s only a billion dollars less than the estimated deficit if pension reform had not been approved.
The study assumed that lawmakers would not extend the state’s temporary income tax increase next year. If the tax hike is made permanent, the estimated deficit would be cut in half, to $7 billion.