Illinois

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DeKalb—Taxpayers United of America (TUA) today released the results of a new pension study of the employees of the City of DeKalb, DeKalb County, DeKalb County government schools, and Northern Illinois University.
“Illinois lawmakers continue their abuse of taxpayers by ignoring the number one budgetary problem in the state,” said Jim Tobin, president of TUA. “Illinois is in horrible financial shape, and yet taxpayers are still expected to pour their hard earned money into a failed government pension system.”
“While residents across DeKalb County face crushing tax increases, falling home values, high unemployment, and a painfully slow economic recovery, government employees continue to receive stunning pensions largely funded by taxpayers who will never collect more than $22,000 a year from Social Security.”
“Illinois’ government bureaucrats have been feeding off taxpayers in DeKalb and all across the state for the last 30 years, receiving gold-plated pension benefits in return for the votes they give politicians. Across the country, millions of bureaucrats are being paid billions, to do absolutely nothing! With their 3%, compounded cost of living adjustments (COLA), Illinois’ government retirees double their pensions after only 24 years of retirement.”
“The purpose of our study is to put some perspective around individual pensions, to put them in terms to which the average taxpayer can relate. Area taxpayers, whose average household income is $54,000, need to know how much DeKalb’s government retirees are being paid not to work and the astronomical accumulation of those payments over an average lifetime.”
“For example, Joel Milner retired from Northern Illinois University and collects an annual pension of $261,396. He has already collected $1.3 million in pension payments and his estimated lifetime pension payout is an amazing $7 million, 6.1% of which was his contribution.*”
“Robert L. Hammon retired from the Sycamore CUSD 427 and has an annual pension of $145,925, with a staggering estimated lifetime payout of $4,875,355. His contribution of the estimated lifetime payout would be only 3.1%.* ”
“Retired DeKalb County government employee, Kevin C. Hickey, has an incredible lifetime estimated pension payout of $5,015,178*, 2.6% of which he contributed, with an annual pension of $109,864.”
View pension amounts below:

• DeKalb Municipal Government Employees
• DeKalb County Government Employees
• Northern Illinois University
• DeKalb County Government Schools

“Illinois’ government pensions are in serious trouble with no end in sight. Government employees should be paid a fair wage for the work they do today so they can save for their own retirement.”
“Without sweeping and immediate reform that includes raising retirement age to 67, increasing employee contributions by 10%, increasing healthcare contributions to 50%, eliminating all COLA’s, and replacing the defined benefit system with a defined contribution system for all new hires, Illinois’ pension system will collapse. It’s mathematically impossible to tax your way out of this problem. Illinois has more than 6,700 retirees collecting more than $100,000; in 2020, that will be over 25,000 six figure pensioners.”
*Lifetime estimated pension payout includes 3% compounded COLA and assumes life expectancy of 85 (IRS Form 590).

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CHICAGO–Oak Park/River Forest High School Dist. 200 school board will vote on a property tax increase December 20 while sitting on a hoard of cash totaling $123 million, according to Barry Jay Epstein, Ph.D., CPA, CFF, a Chicago-based forensic accountant.
Furthermore, Epstein’s analysis shows that funds from the 2002 property tax increase were essentially never used for the purposes they were purportedly needed, and have sat idle, earning little or no return as they have accumulated over the decade.
“Even with worst-case assumptions, projections show no need for another increase for many years into the future,” stated Epstein. “This school board has been accumulating millions of dollars at the expense of homeowners.”
“Oak Park and River Forest High School is the only school in District 200 and is one of the most lavishly funded and financially viable schools in the state.”
“Over the past ten years, thanks in part to the additional property taxes imposed in 2002 (and phased in through 2005), the District’s cash and temporary investments have grown from about $23 million, at June 30, 2003, to over $123 million at the latest fiscal year-end due to annual operating surpluses.”
“This remarkable accumulation of unused wealth strongly implies that the claimed need for the 2002 property tax levy increase was, most charitably stated, ill-considered.  Indeed, this fact alone would serve to argue for a tax decrease in 2012, rather the $8 million property tax increase the Board is seeking.”
“Equally disturbing is the fact that this accumulation of cash has seemingly not been well-managed. The Board’s 2012 comprehensive annual financial report shows only $459,000 in earnings on an average of over $110 million in investable funds, for a return of less than one-half of one percent.  Even in today’s low-interest rate environment, this is incomprehensible – adding insult to injury for the taxpayers who were forced to remit these apparently unneeded funds.”
“The Educational Fund surplus has grown at almost a 30% annual rate, and the District’s funds’ total surplus has grown at over 20% annually, over the past decade.  Apparently, this remarkable performance record is not good enough, however, as the Board wants to impose even heavier taxes.  To fund what? – a question the Board must answer.”
“The current cash hoard of over $123 million, and the unrestricted surplus of almost $100 million (both as of June 30, 2012), are more than adequate to carry the District for perhaps as long as another fifteen years. A property tax decrease, not an increase, is indicated,” concluded Epstein.