Dear Members,

Illinois is nearly bankrupt. For too many years the state has lived beyond its means, spent more than it had and promised more than it could deliver. For FY 2011 Illinois faces a projected budget deficit of at least $14 billion dollars.

All told, Illinois has a debt total of $160 billion and approximately $130 billion, or nearly 80% of those obligations, is tied to public sector retirement obligations. That’s $25,000 for every household in our state. We as job creators, business leaders and taxpayers have to pay for those obligations. The unfunded obligations equates to nearly 20% of our gross state product!

The perilous nature of the pension funds is jeopardizing the delivery of vital services to the citizens of Illinois. The state must immediately take drastic action to honor and protect the rights already earned by retirees and current employees. The funds are on a precipitous path to insolvency.

Together as business, civic and citizen leaders, we must stand up and raise the pressure on our officials to answer this crisis. The state must honor its promises and change its ways. The General Assembly and Governor took a good first step earlier this year by reforming the pension system for future hires, but it isn’t enough. So, what can we as citizens and business leaders do?

     1.) Sign up to learn more about the Illinois Is Broke Campaign at the Chamber’s Membership luncheon on Monday, August 23. Speaking at the lunch will be Miles White, Chairmanand Chief Executive Officer of Abbott, and Chairman of the Civic Committee of the Commercial Club of Chicago, and R. Eden Martin, President of the Civic Committee of the Commercial Club of Chicago. These two leaders call it like they see it and they, and their colleagues on the Civic Committee, have looked at the numbers and concluded that Illinois Is Broke. Through the Civic Committee's collective experience running some of Chicago and the nation's largest corporations, they have the experience, expertise and knowledge to chart a path forward for Illinois. They will be sharing their plan at our August Lunch.

     2.) Join the Illinois Is Broke Committee and visit their website at www.illinoisisbroke.com. Join the Facebook group, Follow Illinois is Broke on Twitter, use our resources and spread the word amongst your colleagues, family and friends.

     3.) Do your research and find out where the candidates stand on this important issue before you cast your ballot on November 2. Do they support reforming retirement benefits for state workers? Are they willing to support real budget reform that includes producing multiple year budgets and ending the state’s practice of “balancing” the budget with money borrowed through bond issues and unpaid bills?

It is our duty and responsibility as citizens to answer this challenge by working with our officials and candidates. Reforming our pension system, in concert with other real budget reforms, will enable the State of Illinois to work for its citizens again. I hope you will join with us in this worthy cause.

Sincerely,


John Schmitt
President & CEO
(630) 544-3370