The irony in this part of his interview with Governor Pat Quinn is that Neil Steinberg and maybe even the Governor do not know the pension problem is directly attributable to stealing money allocted to pensions in years past to increase State Aid to Education.
Neil Steinberg adds to the pressure to address the public pension mess Monday morning in a column featuring an interview with Illinois Governor Pat Quinn.
There is one part that I found interesting, accurate as far as it goes, but missing the main point.
“The folks who put us in this mess are from both parties,” Quinn said.
He’s got that right.
“Every governor and every session of the legislature, the choice at the end of the year came down to: ‘Do we pay this pensions thing or spend a little bit more money on other things?”
Correct again.
“They always picked now over requiring pension payments. So it got worse and worse.”
The Governor again speaks truth.
But not the whole truth.
Each year I remember the Governor’s budget would allocate so much for education.
It would be broken down into State Aid to Education, university subsidies and pension payments for those employed in higher and lower education.
Each year, the teachers unions–I’m talking the Illinois Education Association and the Illinois Federation of Teachers–would come in and argue that the pension money would be better spent “NOW,” to put it in the Governor’s word, on State Aid to Education.
Tomorrow would take care of itself was the implicit message.
Since those still employed as teachers or professors or support personnel were so much more influential than the retired folks, the money was allocated by General Assembly after General Assembly for current expenditures, rather than future pension payments.
Hard to criticize the political sense of the judgment at the time, because most of the representatives and senators voting for the budgets wouldn’t be around to pay the piper, so to speak.
But doing so had more than political advantages for incumbent legislators running for re-election.
Sending extra money to local schools had the unintended effect of increasing the pension burden on state taxpayers.
At the risk of pointing out the obvious, higher teacher salaries meant higher teacher pensions.
Having said pointed that out, I remember thinking time and time again that I might be around to have to figure out how to pay for extravagant programs.
That was before I voted, “No.”
Maybe someone can find someone who voted against more budgets than I over the 16 years I served in the General Assembly, but I doubt it.
At this point, it would be appropriate to remind readers that I receive a legislative pension, but one that was not hopped up by having a post-GA job at a higher salary than I received as a state representative. Because of the 3% annual so-called “cost of living” increase–which is a flat rate not based on inflation–my pension is substantially higher than my final salary in the Illinois House of Representatives in 2000.
I remember voting for only two pension bills. One was in the second year of my first term that affected the General Assembly pension system. I remember asking the legendary C.L. McCormick from Vienna what it was all about. He told me not to worry about it and I voted in favor.
That was the favorable last pension vote I remember until a McHenry County Judge called me in the 1990′s about supporting a bill that would put his bifurcated judicial service on an equal footing with those who had only served as a judge. He had been an Associate Judge after serving as Assistant State’s Attorney, gone into private practice and returned to the bench to finish his career.
Huntley School Board President certainly has an interest in the legislative process.
Just look at the agenda for the District 158 Committee of the Whole meeting coming up June 9th:
Skala is the Chairman of the Legislative Committee and giving a report on June 9th.
Of course, the newly-reconfigured 66th District in which he lives has an incumbent–Mike Tryon.
Tryon’s political base has been split by the Illinois Democrats’ reapportionment map. He lives in the northernmost precinct in the district, just south of my precinct, which abuts the South Shore of Crystal Lake (the lake).
Mike Skala
While the 66th District has 67% of Republican primary voters, the rest are in Kane County.
The district in which my Algonquin 7 precinct is the southernmost precinct, on the other hand, has almost all of its residents in McHenry County. It does dip enough into Lake County to reach JoAnn Osmond’s home in Antioch, however.
Osmond has not decided whether she will run in the district whose number she now represents or the McHenry County-dominated one.
Tryon is considering whether he and his wife should downsize from their Four Colonies home into something smaller located in the district in which Osmond lives.
If Tryon does decide to move, that would leave the 66th House District empty.
Being an elected official in the governmental body that probably has more constituents than any other located in that part of McHenry County, Skala would seem to be well-positioned to run for State Representative.
After being narrowly defeated for school board when he was last President by Aileen Seedorf and his ally Jim Carlin, Skala was reappointed to the board when Carlin resigned about six months into his term.
In the next election, Skala then matched himself against arch-foe Larry Snow and beat Snow. The campaign saw Tryon endorse Skala and was akin to a state rep. campaign in intensity. He even had the same campaign manager that Tryon used.
Skala has been a large contributor to Tryon’s campaign war chest and participates in a now annual fish boil fund raiser for Tryon in Huntley.
So, if Tryon decided to run in the northern district, his blessing would undoubtedly be bestowed upon Skala.
No other possible candidates for the lower House have been brought to my attention should Tryon abdicate the seat, but, if one should arise, Tryon’s school board leadership could cut both ways.
Skala was one of those who pushed for the school district tax rate hike and, while apparently legal, I’m told he voted for the teachers’ contract before the current one, even though his wife teaches French at Huntley High School.
His wife is a former Co-President of the Huntley Education Association. That would mean to me that teachers would be favorably inclined to support Skala throughout the district, a nice geographically spread base.
When he was Minority Leader, Lee Daniels was known for recruiting those with school board or school administration backgrounds. They were called “IEA Republicans.”
With both House Speaker Mike Madigan and House Minority Leader Tom Cross supporting Cross’ pension reform bill, the Illinois Education is contacting members urging them to contact their state legislators.
The third floor is where the legislature meets. To the rigth in this photo is the House Chamber, to the left the press room.
We are in this mess because over the years Governors have proposed X amount of dollars for education.
Usually a couple of hundred million dollars.
When the discussions of how to cut up that amount took place, current salaries won over future pensions.
That’s what the Illinois Education Association lobbyists said they wanted.
If it made that powerful group with its big Political Action Committee happy, legislators were happy.
This was a win-win for the teachers’ unions.
They knew the state constitution would require the General Assembly to come up with the pension money.
And, with the larger share going to State Aid to Education that originally planned, not only would their members salaries be higher, but their pensions would increase.
is the title of an April 5, 2011, article by former Huntley School District 158 Board member Larry Snow. (The quote was in the Chicago Tribune Marcy 31, 2011. It is from Executive Director Dick Ingram of Teachers’ Retirement System.)
The article was published in “The Champion” with this teaser:
“82,981 of 132,502 Illinois Teachers Pay Nothing or Little into Their Pensions“
That’s 63% of all teachers in Illinois.
The State Journal-Register is reporting that State Rep. Kevin McCarthy (D-Orland Park) is promoting a bill where state and local governments would all pay six percent of payroll toward employee pensions.
In a revealing sentence in reporter Chris Wetterich’s article, he writes,
“What’s unclear is how much more employees themselves would have to pay.“
Because no one has done the research except, I believe, the Illinois Education Association and Snow, how much extra teachers would have to pay if their so-called contribution rate was raised from 9.4% to 13.77% is a really good question.
While not covering every school district in Illinois, Snow did research the teachers’ contracts for all of the large school districts (by law all are supposed to be on the internet) in order to find out how much teachers pay in order to get a “full 75 percent pension after working only 27 years.” He points out, “Most adults work for 27 years before they turn age 50.”
As way of background, Snow notes that teachers are not in the Social Security System and, therefore, are not forced to pay Social Security taxes.
“Ordinary workers get hit with a 6.2 percent deduction for Social Security,” Snow writes. “It’s a deduction they have to pay federal and state income taxes on.
“Democrats gave teachers a huge loophole of not paying income taxes on any of their pension deductions” he continues. “This enormous no-tax handout to teachers amounts to billions of dollars each year.”
Snow’s research leads him to this conclusion:
“Over 51,000 of the total 132,502 teachers in Illinois contribute nothing from their K-12 paychecks into their pensions. Illinois law says it is to be 9.4 percent.
“About an additional 32,000 teachers pay little into their pensions. It is 1.81 percent to be precise for these 31,956 teachers.“
How many teachers pay not a dime toward their retirement?
51,025 teachers in 186 school districts pay nothing for retirement benefits.
They “don’t pay a penny into the 9.4 percent called out by Illinois law.
“There are a total of 868 districts in Illinois.
“The pay-zero teachers listed are 39 percent of all teachers in Illinois,” Snow reveals.
No agency in state government seems to keep track of this information.
Not the Downstate Teachers Retirement Fund, which boldly and incorrectly claims,
“Active TRS members are required to contribute 9.4 percent of their creditable earnings each year…”
The State Board of Education doesn’t keep track either.
My guess is that only the Illinois Education Association has a matrix showing what school districts have given what benefits in contract negotiations.
The Board will pay the current level of retirement contribution to the Teachers Retirement System of Illinois.”
It is expressly understood that figures appearing on this salary schedule include a sum equal to the current level of TRS contribution of the base salary of each Teacher which is, in fact, payable to the Teachers’ Retirement System on the Teacher’s behalf.”
“The ISBE report shows this board paying nothing. A Democrat bureaucracy doesn’t check the teachers contracts to see if what is reported, matches what’s in writing.”
And, if legislation is passed requiring 4.37 percentage points more, how long do you think it will take Lockport taxpayers to pick up the difference?
Given that local teachers’ unions pretty much control school boards wherever they are elected (read everywhere but Chicago), my guess is will be on the top of the collective bargaining list.
Do you wonder if Rep. McCarthy knows that?
Is his proposal just a setting up local taxpayers for an even bigger fall?
Five years from now will 39% of teachers still be paying nothing for their pensions?
Even better for teachers is that this pension payment ups their pension payments.
Take a look at the chart below. Chances are your school district is on it.
Chart of Pension Contributions by 82,981 District Teachers of 132,502 Total Illinois K-12 Teachers
I became interested in a series of emails from and to incumbent candidates running for re-election on the Grayslake Unit School District 46 Board.
They are of interest, first, because they were sent on two school district email accounts and, secondly, they give a pretty good indication of what happened when during a teacher union-backed election campaign.
2011 election returns for Grayslake Unit School District 46. Challengers Kip Evans and Shannon Smigielski ran second and first. Incumbent emailer Sue Facklam placed third. Her running mate Mary Garcia came in fourth.
I have noted previously that in low turnout elections, relatively small, but well-organized groups like teachers unions can have disproportionate influence on outcomes. In McHenry County, it would surprise me if any school district’s board did not have a majority whose members were not supported (officially or unofficially) by its local teachers’ union.
This week there was an action-packed meeting that you can read about here and here.
But let’s look at some more emails. As usual, you can enlarge any image by clicking on it.
First, let me post one from March 3rd that should have been in the first article.
Both the Illinois Federation of Teachers and the Illinois Education have a common interest in the re-election of the incumbents. Instructions are given to form a Political Action Committee "once you have raised $1,000."
Republican State Senator Suzi Schmidt shows up in this email.
As of March 7th Republican State Senator Suzi Schmidt is still in the loop.
The incumbents running for re-election sought help from Lake County Democrats. They wanted access to Votebuilder. Campaign consultant Alex Finke is identified as having worked on Democratic Party campaigns in McHenry County. An email sent to 8th Congressional District Committeewoman Nancy Shepherdson is included. 8th Congressional District Democratic Party Committeewoman writes Sue Facklam, "I fear the Tea Party in your race, as well." Of course, Tea Party activists have been blamed (credited) with Congresswoman Melissa Bean's 2010 defeat.
There is reference to a letter to Illinois Education Association (IEA) members in this email. the school district seems not have supplied an attachment.
Literature for Mary Garcia and Sue Facklam is discussed here. One signer of the piece is fellow Board member Ray Millington, who was elected President of the new board.
An exchange about yard signs and flyers from Grayslake School District employee Ellen Correll to North Chicago Unit School District Ph.D. Douglas Parks is in this email.
The teacher-supported candidates reveal why liberals only want written questions. It's so their liberal friends can screen out embarrassing questions. " I definitely want written questions," emails Sue Facklam, the incumbent who won re-election. "I do not want questions from the audience," writes losing Board member Mary Garcia.
School board member Ray Millington (now District 46 Board President) sends the opposition's post card via the Grayslake School District email server.
Sign placement was the topic of this email to Grayslake Village Trustee Ron Jarvis, who won re-election.
Chris Williams of Grafton-Algonquin-Nunda-Dorr Community Advocates shares a request that Crystal Lake High School District 155 make public details of the most expensive part of the school budget–teacher salaries.
It comes on the rejection of the following Freedom of Information Request:
Chris Williams asks for "a copy of the Board's and IEA's other correspondences related to the teacher's contract under negotiation. Huntley D158 provided this transparency during their teacher's contract negotiation.
Here is District 155′s reply to Williams’ request:
April 27, 2011
Mr. Chris Williams
GAND Community Advocates
3951 Willow View Dr.
Lake in the Hills, IL 60156
crswms@comcast.net
VIA ELECTRONIC MAIL
Re: Response to FOIA Request – Community High School District 155
Dear Mr. Williams:
This letter is in response to your Freedom of Information Act (“FOIA”) request
dated April 19, 2011 and received on April 20, 2011 by Community High
School District 155 (“District”). You requested “a copy of the Board’s and IEA’s
offer correspondences related to the teacher ’s contract under negotiation.”
Your request is respectfully denied as records relating to collective negotiating
matters between public bodies and their employees or representatives
are exempt from FOIA (5 ILCS 140/7(p)).
Please be aware that our response to your request is pursuant to our understanding of your FOIA request. If we have misunderstood your request, please let us know as soon as possible so we may provide the correct information.
You have a right to have the denial of your request reviewed by the Public Access Counselor (PAC) at the Office of the Illinois Attorney General. 5 ILCS 140/9.5(a). You can file your Request for Review with the PAC by writing to: Public Access Counselor, Office of the Attorney General, 500 South Second St., Springfield, IL 62706.
You also have the right to seek judicial review of your denial by filing a lawsuit
in the McHenry County circuit court (5 ILCS 140/11).
If you choose to file a Request for Review with the PAC, you must do so within
60 calendar days of the date of this denial letter. 5 ILCS 140/9.5(a). Please
note that you must include a copy of your original FOIA request and this denial
letter when filing a Request for Review with the PAC.
Sincerely,
Jeffrey Puma
Freedom of Information Officer
The follow-up from Williams is below:
Subject: District 155 Teachers Contract Negotiations
Hello,
Thank you for giving our organization a voice in January 2011. GANDCA remains engaged in the D155 budget and taxpayer impact. We believe that our involvement has influenced the board to abate $2.5 million for FY12 in February 2011 from the tax levy, which they unanimously passed on December 14, 2010. It is also worth noting that D155 did not take the legally available 1.6% budget increase for the 2011/2012 school year as many other districts have; saving D155 property taxpayers ~1.2M. To date GANDCA believes that it has influenced a total D155 property taxpayer savings of ~$3.7M.
We have remained abreast of the teachers’ contract negotiations to the best of our ability.
On April 17, 2011, we shared with Jill Hawk our desire to inquire with the board at the forthcoming board meeting on the teachers’ contract negotiations to learn of the progress, any impact that the local and national teacher layoffs has had, as well as, the Wisconsin Governor, Scott Walker’s actions on the negotiations. It would be insightful to learn the mood and atmosphere. Jill Hawk has not replied to date.
We submitted the attached FOIAR and received the attached response, which we are inquiring with Lisa Madigan’s office to learn if D155 correctly interpreted the law.
We urge D155 to make the teachers’ contract negotiation dialog/offer public just as D158 did the last time around.
The public deserves to know how our school board proposes to spend out tax dollars, especially since District 155 teachers are already the highest paid in McHenry County.
The current economic and political environment is conducive to negotiate anything but the status quo contracts of the past.
The record property tax appeals are proof that the property taxes that support D155 are at the tipping point; D155 employees are included in those that appealed.
We are in the process of identifying all D155 employees that have filed for a 2010 property tax appeal with McHenry.
Please share if you are interested in meeting.
Chris Williams, President
GAND Community Advocates
3951 Willow View Drive
Lake In The Hills, IL 60156
847.340.8531
The story with the embedded truth that step and lane changes lead to salary increases, even if the language says, "Salary freeze."
While I was doing the story on how the Rockford Register-Star is trying to hold onto circulation, I found a story on the Rockford school district that had an interesting paragraph.
Here it is:
Union contract talks
In March, the School Board approved a one-year contract extension with the Rockford Education Association. Pay and benefits were frozen for the year and carried over from the previous year. Employee step and lane increases, however, were still in place, so many union members are still earning more money this school year, despite the freeze.
I would hope that any reporter covering teacher salary negotiations would figure out and report this essential aspect of the story.
McHenry County Blog has surveyed school districts with major presences in McHenry County and discovered that union employees paid $3.8 million in dues during calendar year 2010.
The total amount was $3,825,572.
Contracts are typically for more than one year and most expenses would in contract negotiation year.
Most are from dues paid by teachers, but there are also office worker and school bus drivers.
Most go to the Illinois Education Association-National Education Association.
Part of the collective bargaining proposal made by Wisconsin Governor Scott Walker is to end mandatory union membership.
Illinois, of course, has laws that force all employees of a bargaining unit to pay dues.
The legislation would require that teacher union officials collect their own dues, rather than having as a payroll deduction, as is the case in all of the districts below.
To no one’s surprise, employees of the largest district examined, Carpentersville Unit District 300, paid the most dues. The total was over $1.1 million.
Barrington Unit District 220 – $554,555
Alden-Hebron Unit District 19 – $22,427
Cary Grade School District 26 – $52,254
Crystal Lake Grade School District 47 – 315,342
Crystal Lake High School District 155 – $287,202
Carpentersville Unit District 300 – $1,122,392
Fox River Grove Grade School District 3 – $23,599
Harvard Unit School District 50 – $96,745
Huntley Unit School District 158 – $356,047
Johnsburg Unit District 12 – $106,055
Marengo-Union Grade School District 165 – $48,778
Marengo High School District 154 – $30,005
McHenry Grade School District 15 – $207,111
McHenry High School District 156 – $109,331
Prairie Grove Grade School District 46 – $10,863
Richmond-Burton (Nippersink) Grade School District 2 – $59,429
Richmond-Burton High School District 157 – $37,592
Riley Grade School District 18 – $9,161
Wonder Lake (Harrison) School District 36 – $13,249
Woodstock Unit School District 200 – $372,595
Teachers walk picket line outside Huntley High School in 2008.
This is a journal of news and opinion designed to bring to light matters of public interest and to encourage public participation in the governmental process.
Emphasis will be on McHenry County, but Illinois state news will be covered. Articles and photos are copyrighted and may not be reproduced without explicit written permission.