Illinois state income tax could help city pensions

April 28, 2014

The Associated Press

Illinois Gov. Pat Governor approves income tax revenues for municipalities.

Gov. Pat Quinn says he favors giving Illinois cities a larger share of income tax revenues to help solve the municipal pension problem.

The idea previewed Monday before the City Club of Chicago is part of the Chicago Democrat's pitch to extend the 2011 income tax increase. It rolls back in January, leaving an estimated $1.6 billion revenue hole. Quinn's budget plan proposes an extension to avoid budget cuts.

Municipalities statewide have pushed for legislative help for underfunded pensions. Mayors say costs have risen, pension obligations are crowding out spending for other services and raising property taxes may be the answer. Quinn's against raising property taxes.

Lawmakers approved a plan for two Chicago pension systems that indirectly could mean a property tax increase. Quinn won't say if he'll sign it.