Illinois Governor Eyes Bond Sale, Tax Hike to Save Pensions

  • Progressive income tax, $2 billion debt sale to raise cash
  • It’s first show of how he’ll approach biggest fiscal challenge
Illinois Pension Liabilities Add to State's $3.2 Billion Deficit
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Illinois Governor J.B. Pritzker is considering a broad plan to inject cash into the state’s struggling pensions by selling $2 billion of bonds, implementing a progressive income tax and using billions of dollars of government assets to reduce the massive debt owed to the retirement system.

At the same time, the Democrat, who took office last month, wants to extend the state’s timetable for paying down the debt by seven years to prevent swelling pension payments from crowding out spending on other priorities, Deputy Governor Dan Hynes said in a statement. His administration also wants to encourage workers to accept early retirement buyouts.