SPRINGFIELD, Ill., Jan 8 (Reuters) - Hopes for substantive public pension reform in Illinois were dashed on Tuesday when the House of Representatives adjourned without voting on any measure to fix the state’s huge unfunded pension liability.
The lack of action to reform pensions left Illinois vulnerable to another round of cuts to its already relatively low credit ratings, which will boost the cost of borrowing money.
Democratic Governor Pat Quinn had offered a compromise proposal calling for a commission to be formed to recommend ways to reduce the state’s huge $96.8 billion unfunded pension liability. That plan was not brought to a vote in the House on the last day before a newly-election Legislature takes office.
Quinn made his proposal after a more comprehensive plan to curb pensions for state and local employees such as teachers failed to muster enough votes for approval.