[American Thinker] As many people know, Illinois is a fiscal mess and a national leader in out-migration. To turn Illinois around, how about our elected officials Take the Pledge this November? Will our elected officials endorse these eight suggestions? Does any of these suggestions apply to your state?1. Illinois is sinking in pension debt. Moving to a 401(K)/403(b) defined contribution plan for all new State of Illinois hires with the ability to put all newly hired public-sector (municipal, school, etc.) employees on a defined contribution plan as well will finally put a cap on unfunded pension liabilities and give certainty to businesses and job-seekers about the future of Illinois. Illinois recently moved to Tier 3 pensions, hybrid defined benefit-defined contribution plans that include a defined benefit component. This hinders the ability of public-sector employees to seek private-sector employment without compromising their defined benefit plan.
According to Reuters (February 2018), Illinois has an unfunded public pension liability of $129 billion. This is up from $111 billion in 2016. Moving new public-sector hires to a defined contribution plan caps unfunded pension liability. In addition, the funds in the public-sector employee's account belong to him ‐ allowing him to move freely between public- and private-sector employment without losing his 35% funded Illinois pension. No more public-sector job lock, no more collecting multiple pensions, no more unfunded pension liability ‐ a win for all.
2. Freeze public-sector hiring until we have shrunk the state workforce by 11.5% via attrition. Assuming a 4% turnover, this should take three years. The average cost per state employee (wages, benefits) is $97,545. Shrinking the payroll by 11.5% saves taxpayers at least $839 million in payroll cost, allowing Illinois to start working down the size of the unfunded pension liability. Those in need of state services will receive their services at a slower rate while a greater role for technological efficiency is implemented ‐ but they will get their services.
3. Repeal the 32% tax increase that went into effect July 1, 2017. In theory, this income tax increase generated $5 billion of revenue. In reality, it just continues to drive productive citizens and businesses out of Illinois.
Five more ill-fated suggestions at the link.