A tale of two states: Illinois vs. Wisconsin in the public pension debate

By Benjamin Yount and M.D. Kittle | Watchdog.org

SPRINGFIELD – The dividing line in the national debate over the future of public-sector unions can be found between the Land of Lincoln and its neighbor to the north.

The story of Illinois and Wisconsin is a tale of two very different states.

Wisconsin, led by Gov. Scott Walker and majority Republicans, took on public-sector unions and won in the pursuit of balancing a $3.6 billion state budget shortfall in 2011.

Illinois, led by Democrats with a veto-proof supermajority in the Legislature and Democrat Pat Quinn in the governor’s mansion (at least occasionally), have long coddled the public unions to which they and their campaign war chests are beholden. Consequently, the state faces billions of dollars in unpaid bills and unfunded pension liabilities for current public employees of about $130 billion.

Wisconsin’s economic prospects have vastly improved. The state’s public pension system, while not perfect, is nearly funded – at least based on much more liberal accounting standards than market-based measures. The Badger State budget now boasts a surplus of $741 million, the vast majority of that targeted for tax cuts over the next two years.

Illinois, meanwhile, continues to be buried under a mountain of debt, a broken fiscal house that has taken the state’s credit rating with it.

Read more at WisconsinReporter.com

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