Why Illinois’ State Pension System Threatens Its Entire State Budget

No state has managed to avoid funding problems with their pensions, but if two states can be considered epicenters of the pension crisis, it would be Illinois and New Jersey. Illinois alone has $134 billion in unfunded liabilities for its five pension funds, and Illinois lawmakers have done little but kick the proverbial can down the road and make it someone else’s problem. Unfortunately, this multi-governor trend has been going on for so long that the state’s five pension funds are threatening its entire budget. Fitch threatens to downgrade Illinois’ credit rating New Illinois Governor J.B. Pritzker is trying to…