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December 12, 2013

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Hinz: Pension Reform Up To Illinois Supreme Court
From the Chicago Sun-Times
It's no exaggeration to say that the fate of Illinois' budget and economy rests in the hands of the seven members of the state Supreme Court.
A furious legal battle already has commenced, even before the unions file their promised legal challenge.
It will only grow louder in coming months as the court decides whether to uphold or toss out the pension-reform package adopted last week by Illinois lawmakers, a package that was vehemently attacked by both left-leaning labor unions as too strong and right-leaning political candidates as too weak.
Given that combination of foes, I'd say legislative leaders were basically on target. As Goldilocks might put it, a deal that's hated by both extremes may be juuuuuust right.
But the underlying legal question is crucial, with good arguments on both sides. The question: Is a bill legal that reduces pension cost-of-living allowances for retirees and imposes stiffer cuts on those who still are working, given that the Illinois Constitution says pensions are “an enforceable contractual relationship, the benefits of which shall not be diminished or impaired”?
“That's about as clear as could be,” said Andy Raucci, a veteran election lawyer and Springfield lobbyist who is very familiar with that clause. “It's a no-brainer. (The new law) is clearly unconstitutional.” He may be right.
But even Mr. Raucci isn't making any predictions about the court, which is not just a legal but a political body — and one that House Speaker Mike Madigan says will uphold the law.
Read more in our daily News Update...

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