Illinois could soon be the first state in history to have its bonds rated as “junk.” Last month, both Moody’s MCO and Standard & Poor’s downgraded Illinois debt to just one notch above junk status.
Last week, the Illinois State Senate President Don Harmon (D-Chicago) wrote a
letter to Congress requesting a $41.6 billion bailout. Critics balked.
In many ways, Illinois may have already crossed the Rubicon.
Our analysis at OpenTheBooks.com shows that an Illinois family of four now owes more in unfunded pension liabilities ($76,000) than they earn in household income ($63,585). In a state of 13 million residents, every man, woman, and child owes $19,000 — on an estimated $251 billion pension liability.
Our auditors discovered 110,000 public employees and retirees who earned more than $100,000 last year.
We found tree trimmers in Chicago making $106,663; nurses at state corrections earning up to $277,100; junior college presidents making $491,095; university doctors earning up to $2 million; and 111 small town managers who out-earned every governor of the 50 states ($202,000).
Our interactive mapping tool allows users to quickly review the 110,000 public employees and retirees across Illinois making more than $100,000 (by ZIP code). Just clicka pin and scroll down to see the results in your neighborhood rendered in the chart beneath the map.
Mapping the Illinois $100,000 Club -- 110,000 six-figures public employee salary and pension records ... [+] OPENTHEBOOKS.COMAuditing Illinois’ large pay and pension systems
Here’s a system by system break down with the head counts of employees and retirees who made more than $100,000 per year:
Public schools (35,000) – Last year, nearly 22,000 educators earned a six-figure salary while more than 13,500 retirees received six-figure pensions. Six retired superintendents pocketed $300,000+ pensions, including Lawrence Wyllie (Lincoln-Way CHSD 210 – $341,019); Henry Bangser (New Trier Township HSD 203 – $331,489); Gary Catalani (Wheaton-Warrenville Unit SD 200 – $330,015); Laura Murray (Homewood-Flossmoor CHSD 233 – $324,677); and Mary Curley (Hinsdale CCSD 181 – $315,336).Chicago (22,000) – We calculated that the city paid out $521.2 million in extra pay (overtime, vacation, supplemental, fitness, etc.) above base salaries. Four deputy fire chiefs made between $314,983 and $351,715. Police officers made up to $272,672 and EMT’s up to $270,851. The Chicago Transit Authority (CTA) paid line workers up to $300,135, telephone line workers up to $282,123, and escalator mechanics up to $203,855. Colleges & universities (16,000) – Bradley Underwood made $2.9 million as the basketball coach at the University of Illinois. Junior college power couple Dale Chapman ($491,095) and Linda Terrill Chapman ($242,070) combined for a $733,000 income at Lewis and Clark Community College. Fady Toufic Charbel ($2 million); Mark Gonzalez ($1.1 million); and Konstantin Slavin ($1 million) are million-dollar doctors at University of Illinois at Chicago (UIC). A UIC pension paying out $524,865 goes to a retired doctor, Tapas Das Gupta.State of Illinois (15,000) – Six-figure salaries and pension payouts amounted to $1.8 billion last year. Five barbers at Corrections made over $100,000 while eight nurses at Veterans, Human Services and Corrections made between $200,000 and $277,100. Eight troopers and police officers at the Tollway Authority made between $200,000 and $277,000. A court-ordered monitor, Dr. Stewart Pablo, cost taxpayers $327,600 to report on the lack of mental healthcare availability within the prison system — $1 million in total during the past three years.Cities & villages (8,000) – Small town managers rake in the pay, perks, and pension benefits. These administrators include Michael Ellis (Village of Grayslake – $296,654); Richard Nahrstadt (Village of Northbrook – $290,603); Dane Bragg (Village of Buffalo Grove — $280,000); Patrick Nagle (Village of Rosemont — $279,523); Michael Cassady (Village of Mount Prospect — $278,282); and Reid Ottesen (Village of Palatine – $274,067). The Wheaton Park District conferred a $273,243 pension on retired administrator Elizabeth Kutska.
Largest pay and pension systems in Illinois conferring $100,000 per employee or retiree.
OPENTHEBOOKS.COMPrivate associations, nonprofits, and retired lawmakers
Consider the many ways that private associations, nonprofits, and retired lawmakers have exploited the legal loopholes.
Retired Chicago Mayor Richard M. Daley (D) double dipped the pension system for nearly $232,000. Daley made $149,009 per year in state lawmaker pension payouts after a short eight-year career as a state senator plus another $83,784 per year in city pension payouts for his 22 years as the mayor of Chicago.
Three of the highest earners within the municipal pension system work for private associations – not government. Peter Murphy, executive director of Illinois Association of Park Districts, made $359,287, while Brett Davis, executive director of the Park District Risk Management Agency, brought in $331,817. Brad Cole of the Illinois Municipal League pulled down $313,997. These private nonprofits muscled their way into the government system.
Former Illinois Governor Jim Edgar (R) double dipped pension systems: General Assembly pension ($175,951 per year) and University Retirement System pension ($85,140). After “retiring” from the University of Illinois, he was hired back part time for another $62,769. Last year, Edgar’s total payout from all sources was $323,860.
We estimate that Edgar earned $2.4 million in compensation from the University of Illinois (2000-2013) and another $2 million in pension payments already paid-out from his 20-year career as legislator, secretary of state and governor.
Highly compensated locals
DuPage County employees have a history of hefty salaries and pensions. Anthony Charlton, director of Stormwater Management, made $253,420. Five more county administrators made over $202,000 last year. Dewey Hartman, a chief deputy police officer, received $324,431 – a $159,574 bump in his final year. Hartman now receives a $176,872 pension.
Local park district administrators outearned the state director of parks ($116,500). These included James Pilmer ($212,794) at Fox Valley; Raymond McGury ($209,443) at Naperville; and Michael Bernard ($206,819) at Wheaton. However, the top two pensions exceeded the highest salaries: Elizabeth Kutska ($273,242) from Wheaton; and Steven Messerli ($215,484) from Fox Valley.
Forest preserve and even water district employees tapped into the largess. Brian Dorn pulled down $247,071 at North Shore Water Reclamation while Edward Stevenson made $214,856 at the Forest Preserve of DuPage County.
Possible solutions to the Illinois crisis
Illinois Governor J.B. Pritzker wants to hike the income tax during a recession. The proposal would change the state constitution to allow for a progressive income tax. Currently, the Illinois income tax is a flat rate tax.
Last week, Illinois State Senate President Don Harmon wrote a letter to Congress asking for a $40 billion bailout. $10 billion in bailout would be used for pension plan solvency.
This week, U.S. Senate Leader Mitch McConnell suggestedanother path, “I would certainly be in favor of allowing states to use the bankruptcy route.” McConnell specifically mentioned Illinois along with Connecticut, California, and New York.
You know I can see where some of the school districts that are in upper class areas would pay administrators that kind of money. However in this list aboce I see Ford Heights and Dolton among the highest paid.WTF!!!!! is up with that?
Pritzker has been in office for over a year and has done nothing about the excessive spending. How much did the McCormick place medical experiment cost the state of Illinois. I am starting to think that the governor is an incompetent clown.
Sadly a lot of these retirees leave the state because the taxes are to high, like a cheap date after they get what they wanted they move on. Time to tax pensions at the source, if your pension comes from an Illinois based entity i.e. state, county, municipality or Illinois based publicly traded corporation it gets taxed by Illinois. Just like Indiana residents who work in Illinois pay Illinois income tax.
They have Superintendents and assistant superintendents and principles and asst. principles and secretary's and clerks, teachers and teachers assistants. The only position they are short on is janitors. This is a great place for the political class to provide high paying jobs for their relatives and in-laws, everyone wins except the taxpayers and who give a sh!t about them?
You know I can see where some of the school districts that are in upper class areas would pay administrators that kind of money. However in this list aboce I see Ford Heights and Dolton among the highest paid.WTF!!!!! is up with that?
ReplyDeleteFord Heights is only a couple hundred students too unbelievable he is paid around a $1,000 per kid off of State aid.
DeleteNow all the other school Superintendents will demand a raise after seeing Jackson's salary in Ford Heights!
DeletePritzker has been in office for over a year and has done nothing about the excessive spending. How much did the McCormick place medical experiment cost the state of Illinois. I am starting to think that the governor is an incompetent clown.
ReplyDeleteNOT EARNED
ReplyDeleteTax these pensions now!
ReplyDeleteVia Forbes.com
ReplyDeleteApril 27, 2020
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Sadly a lot of these retirees leave the state because the taxes are to high, like a cheap date after they get what they wanted they move on. Time to tax pensions at the source, if your pension comes from an Illinois based entity i.e. state, county, municipality or Illinois based publicly traded corporation it gets taxed by Illinois. Just like Indiana residents who work in Illinois pay Illinois income tax.
ReplyDeleteThey have Superintendents and assistant superintendents and principles and asst. principles and secretary's and clerks, teachers and teachers assistants. The only position they are short on is janitors. This is a great place for the political class to provide high paying jobs for their relatives and in-laws, everyone wins except the taxpayers and who give a sh!t about them?
ReplyDeleteThey also get their crazy relatives janitor jobs which have pretty decent pay and benefits.
DeleteNow you know why everyone wants a government job! It would take millions in a 401k for these kinds on annuity payouts unreal.
ReplyDeleteIRISH WELFARE
ReplyDeleteFunny part how Republicans collecting big pensions want to cut pensions for Union members.
ReplyDeleteIf you try to cut these pensions they have the money for all kinds of lawsuits and appeals too.
ReplyDeleteRemember the teachers don't get paid enough it's for the children!
ReplyDelete