Fortner Introduces Own Pension Plan |
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April 23, 2012
Fortner Introduces Own Pension Plan
State Representative Mike Fortner
For Immediate Release Contact: Rep. Mike Fortner
April 20, 2012 (630) 293-9344
Fortner Introduces Own Pension Plan
Springfield, IL… In March, State Rep. Mike Fortner presented House Bill 5754 to stabilize the pension costs for current employees going forward. Today he introduced House Bill 6158 to deal with the unfunded liability. These two bills work together to provide a complete solution to our current pension problem.
HB 6158 introduces two new revenue streams allocated to paying down the state’s unfunded pension liability: a flat 15 cent tax on gas, which provides fuel tax relief, and money currently allocated to paying back existing bonds once the bonds have matured.
“In Illinois, we have a double tax on fuel,” said Fortner. “My plan would eliminate the sales tax on fuel and replace it with a 15 cent flat tax on gas. With prices at the pump at such high levels, a flat tax will save local motorists on gas.”
Under former Governor Rod Blagojevich and current Governor Pat Quinn, the state sold bonds instead of making the required payments for pension liability from the general fund. We are still paying back these bonds, with interest. Under HB 6158, when the bonds mature, the money currently allocated to repaying the bonds will be redirected into the state’s pension fund. Fortner claims these new revenue streams, combined with the cost-savings effect of HB 5754, will fully fund the pension obligation in 30 years without a tax increase.
“We are sitting on the brink of disaster with our pension systems and something must be done,” said Fortner. “I am concerned that many of the current proposals before the General Assembly will not be able to withstand a constitutional challenge, or will call for a massive tax increase. We need to come up with creative solutions that will not increase taxes and that follow the law of the land – that is what I am offering today.”
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For Immediate Release Contact: Rep. Mike Fortner
April 20, 2012 (630) 293-9344
Fortner Introduces Own Pension Plan
Springfield, IL… In March, State Rep. Mike Fortner presented House Bill 5754 to stabilize the pension costs for current employees going forward. Today he introduced House Bill 6158 to deal with the unfunded liability. These two bills work together to provide a complete solution to our current pension problem.
HB 6158 introduces two new revenue streams allocated to paying down the state’s unfunded pension liability: a flat 15 cent tax on gas, which provides fuel tax relief, and money currently allocated to paying back existing bonds once the bonds have matured.
“In Illinois, we have a double tax on fuel,” said Fortner. “My plan would eliminate the sales tax on fuel and replace it with a 15 cent flat tax on gas. With prices at the pump at such high levels, a flat tax will save local motorists on gas.”
Under former Governor Rod Blagojevich and current Governor Pat Quinn, the state sold bonds instead of making the required payments for pension liability from the general fund. We are still paying back these bonds, with interest. Under HB 6158, when the bonds mature, the money currently allocated to repaying the bonds will be redirected into the state’s pension fund. Fortner claims these new revenue streams, combined with the cost-savings effect of HB 5754, will fully fund the pension obligation in 30 years without a tax increase.
“We are sitting on the brink of disaster with our pension systems and something must be done,” said Fortner. “I am concerned that many of the current proposals before the General Assembly will not be able to withstand a constitutional challenge, or will call for a massive tax increase. We need to come up with creative solutions that will not increase taxes and that follow the law of the land – that is what I am offering today.”
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