Co-authored with Bill Zettler

In the March 28, 2011 issue of the Weekly Standard, Eli Lehrer, Vice-president of the Heartland Institute, a premier think-tank based in Illinois, wrote an article entitled “Pensions Aren’t the Problem.” Lehrer puts forth the argument that defined-benefit state pensions, not only were not in trouble, but were a good way for states to recruit talent at little expense.

While Heartland does some fine work, in this case, we have to disagree with their analysis.  All too often of late the positions of NASRA (National Association of State Retirement Administrators), an organization of self-interest and self-righteousness not unlike their sister organization the NEA (National Education Association), have not received the critical examination they are due. After all, if all state employees were on Social Security and 401K programs there would be no need for state retirement administrators and their staff of thousands.

Let’s go through Mr. Lehrer’s major claims one by one:

CLAIM: “…pension benefits represent a reasonably small share of overall state spending (3.4 percent in Illinois).”

FACT: The way you come up with what appears to be a minuscule percentage of state spending is as follows: (more…)

Recently Illinois Senator Ed Maloney (D) introduced SB136 which would require “the parents or legal guardians of children attending non-public schools, a defined term, or private or parochial schools to annually register their children with the State Board of Education, in conformance with procedures prescribed by the State Board of Education.”

Basically homeschoolers and anyone else who has deemed the public education system a failure would have to register their children with the State, since apparently Senator Maloney believes “that since the State was responsible for the education of our children, the State should know who was being homeschooled,” according to Pastor James McDonald who met with the Senator along with several homeschooling advocates.

I hate to burst the Senator’s progressive utopian bubble, but as Pastor McDonald points out “in the eyes of most home educators, the responsibility to ensure our children receive a competent education belonged to parents, not the State.”  I don’t think registering children, like licensing a dog, was exactly what Thomas Jefferson had in mind when he envisioned public education.

,Jefferson trusted the people closest to the issue to care most for the outcomes.  Regarding education he stated in a letter to Joseph Cabell, “But if it is believed that these elementary schools will be better managed by the Governor and Council, the commissioners of the literary fund, or any other general authority of the government, than by the parents within each ward, it is a belief against all experience.”

Hardly a resounding endorsement of the power of the State, which he was extremely wary of, when he stated in the same letter, “What has destroyed liberty and the rights of man in every government which has ever existed under the sun? The generalizing and concentrating all cares and power into one body, no matter whether of the autocrats of Russia or France, or of the aristocrats of a Venetian senate.”  Or even the Illinois Senate.

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Co-authored with Bill Zettler

There has been much talk regarding the unsustainable fiscal mess most states are mired in.  Some are even discussing the creation of legislation that will allow states to declare bankruptcy.  The largest component of the mess is the unsustainable pensions for public sector employees.  If a contest were held to select the poster child for the pension debacle, Illinois would win hands down.

Today, Illinois’ unfunded pension liability is estimated to be $78 billion. How did we get here?  Let’s call it the “Four Rules of Too” for public employees whose salaries are too high; contributions are too low; plans are too bloated; and retirement is too early.  As the following chart regarding the Teachers Retirement System (TRS) shows, over the last decade teacher salaries have risen by 7% per year or 96% compounded and the pension cost (Pension Benefit Obligation) taxpayers are responsible for has gone up 116%.

If we look at the rest of us who are locked into the Social Security system, our salaries increased by an average of 3.65% or 43% compounded, less than one half of the teachers’ increases. Thus although our income has gone up less than half as fast as teacher salaries and pensions, we have had to pay more taxes out of our lesser incomes to fund the promises made by union bosses and politicians.  This model could be applied to other state workers as well.  For instance, 35% of Illinois State Troopers make more than $100,000 per year with top salaries of $185,000.

And the future doesn’t look any brighter.

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