Kelly, Hagene react to Rauner pension proposal

Illinois Gov. Bruce Rauner gave his budget address on Feb. 14 and as part of it, floated an idea to have colleges, universities and local school districts share more of the cost of their own pensions.

"We'll phase in the shift over four years - in 25 percent increments per year - and give schools and local governments the tools they need to more than offset the costs," Rauner said. "The tools include increased education funding, the power to dissolve or consolidate units of local government, and more flexibility in contracting, bidding and sharing services."

But both Du Quoin District 300 Superintendent Gary Kelly and Pinckneyville District 101 Superintendent Keith Hagene said that plan could negate any additional funding the districts are to receive in the state's new funding formula that's supposed to begin in April.

"At one time, they were look at a 12-year phase-in, but to do something as quickly and rapidly in that timeframe would be quite a strain on districts," Kelly said. "I'm just hopeful that it's at least a starting point. Hopefully, we'll see some money in April, that's what they're telling us."

Rauner said universities will also be asked to share the load, phased in over four years as well, and pick up health care costs. The governor said an additional $205 million in appropriations in fiscal year 2019 would help offset the costs.

"These shifts will save the state $696 million this year," he said.

Hagene isn't convinced.

"The disappointing thing for us locally is we're a Tier 1 school and if they shift this pension burden on to us they will either (A) give us a mechanism to raise that money, or (B) it diminishes any new funding we get," he said.

Hagene noted that shifting costs, while not making structural reforms, doesn't fix the problem.

"They hold us accountable for our educational performance, yet they continue to play shell games with funding," he said.

As for the state's new funding formula, Hagene said his district constructed this year's budget without the potential revenue factored in.

"We're one of the districts who acted conservatively in that situation and did not jump into new programs or personnel based upon those dollars," he said.

Kelly is concerned the governor's proposal could result in "unrelated consequences" such as higher property taxes.

"I know the governor's against raising property taxes and he may not understand the unrelated consequences here," he said.