Dear Members:

Last week the Chamber was invited to participate in a press conference with the Illinois State Chamber of Commerce. Our message was simple; doing nothing is unacceptable and now is the time for action. For several years groups like the Illinois and Naperville Chambers, Civic Federation, Civic Committee and several other policy orientated groups have decried the perilous nature of our state’s finances.

Gov. Pat Quinn noted this year was a “rendezvous with reality,” and last week in a rare appearance in Springfield Mayor Rahm Emanuel referred to this opportunity to drastically change our state’s fiscal course as a “moment of truth.”

They are both right and all of the legislative leaders including President John Cullerton, Speaker Mike Madigan and minority Leaders Christine Radogno and Tom Cross, deserve praise for acknowledging that reform must occur. All four leaders and Gov. Quinn have spoken of the bold reforms that are needed to fix our state’s finances for the long-run. Obviously the details matter, but the tone, direction and blueprints are a step in the right direction.

At the May 14, 2012 Legislative Committee meeting we heard from Representatives Mike Connelly and Darlene Senger who told attendees of the possible solutions. Our local representatives affirmed that opponents of reform are being vocal, active and often using erroneous or specious information.

The Chamber will continue to provide you with the facts, our analysis and evaluation of proposed reforms. We hope that you will speak up and let your officials know what you think, whether you agree or disagree with our analysis.

In preparation for our visit to Springfield last week, I reviewed the Civic Committee’s latest publication, “Just The Facts,” and was struck by a figure included in the report, which is included below. The chart details that 44 percent of the underfunding of the retirement systems is the result of past General Assemblies and Governors not making their required contributions.

The other 56 percent of the shortfall is the result of lower-than-expected returns and changes in actuarial assumptions and factors.

The business community thinks it’s time to move past the debates about how we got in this awful mess –there are multiple reasons. Instead, we need to focus on the solutions that will put our state on the path towards fiscal solvency. The time for endless debate and analysis is over; we need our officials to deliver real reform.

Illinois’ public pension systems are underfunded by $85 billion – and the problem is only getting worse. The assets in the system aren’t sufficient to cover current retirees, let alone the current workers who are paying into the system. Pension funding is crowding out every other element of the budget, even with the 67 percent increase in the tax rate. These facts are all true and cannot be distorted or changed.

We need bold and real reform and we need our officials to act this session. Right now, we need a bill that can be reviewed, debated and amended.

This is a once-in-a-generation opportunity to fix our state. In the next two weeks our General Assembly and elected officials will be challenged like never before. The magnitude of the problem is almost unfathomable.

The Naperville Area Chamber of Commerce offers our praise and unyielding thanks for their service during this difficult time. We urge all our officials to do right by the next generation and use this historic opportunity to get our state back on track.

Sincerely,


John Schmitt
President & CEO
Naperville Area Chamber of Commerce
D: 630-544-3370
E: jschmitt@naperville.net