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Is It Time to Change How Chicago Funds Teacher Pensions?

Illinois law separates Chicago teacher pensions from the fund for educators in the rest of the state.

As public school officials here announced $200 million in budget cuts and outlined plans to eliminate about 1,400 jobs, Mayor Rahm Emanuel on Wednesday called for a broad rethinking of how teacher pensions in Illinois are funded. Mr. Emanuel, who labeled the Chicago Public Schools’ budget cuts “intolerable, unacceptable and unconscionable,” said they were nonetheless necessary after the district borrowed money to make a required $634 million pension payment on Tuesday.

Illinois law separates Chicago teacher pensions from the fund for educators in the rest of the state.

Mr. Emanuel has long complained that the current structure forced city taxpayers to pay toward both systems. He called either for a single pension system for all Illinois educators, or for compromises that would have the state taking on more pension responsibilities, Chicago property owners paying higher taxes and city teachers contributing more toward their pensions.

Daniel Luzer is GOVERNING's news editor.
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