The Illinois General Assembly voted Thursday to help prop up the $9.8 billion Chicago Public School Teachers' Pension & Retirement Fund with a one-time, roughly $200 million state pension contribution and property tax levy.
The one-time contribution, due by June 30, 2017, would cover the normal cost of teachers’ pensions — the contribution required to cover active teachers in Chicago Public Schools. The annual Chicago property tax levy, which requires the Chicago Board of Education’s approval, could raise $250 million for the teachers’ pensions in fiscal year 2017, according to documents provided by a CPS spokeswoman.
The measures were components of a temporary six-month budget passed by the Legislature Thursday for the fiscal year that started July 1.
But Gov. Bruce Rauner said in a news conference Thursday that he would not sign off on the roughly $200 million state contribution without more comprehensive pension reform for Illinois. Mr. Rauner signed the levy bill Thursday.
Illinois has been operating without a full budget since July 1, 2015.
As of the same date, the Chicago teachers’ pension fund faced $9.2 billion in unfunded liabilities and a funded status of 53.7%.
Officials in the governor’s office were not immediately available for further information.