Op-ed posted on Watchdog.org.
2015 promises to be an exciting year in a state desperately in need of major fiscal reform.
For the first time in 12 years, Illinois has a Republican governor. He’ll be working alongside Democratic supermajorities in the House and Senate – and everyone’s waiting to see what happens.
It would take a crystal ball and some strong political connections to accurately predict what will happen in the Illinois General Assembly in the coming months, but at least three fronts are likely to see movement: wages, jobs and growth reforms, and pension reform.
Wages
The Illinois Senate passed in December 2014 a bill that would raise the state’s minimum wage. Politicians may look to pass an increase this session, which would costs employers big. If so, it’s possible that this increase could be tied to other business measures intended to offset the added costs of a wage hike.
This could include: a reduction in LLC fees, which cost each new business that falls under this category $500 in its first year and then $250 each year the business remains active; and reform to the state’s workers’ compensation law, under which employees can file compensation claims for injuries that are not incurred on the job.
Jobs and growth reforms
Illinois is no exception when it comes to burdensome licensing rules. For example, under the state’s Barber, Cosmetology, Esthetics, Hair Braiding, and Nail Technology Act of 1985, anyone wishing to work as a barber must complete expensive training at a barber or cosmetology school for no less than 1,500 hours in a program lasting at least nine months before they can even take the state-required licensing exam and pay the associated licensing fees.
“Scope of practice” in health care is another aspect of occupational licensing that has supporters on both sides of the aisle. Seventeen states and the District of Columbia have laws granting “full practice authority” to professionals who have advanced nursing degrees and have passed national exams. This adjustment provides greater access to care for low-income residents and reduces wait times to see doctors and specialists, and also can majorly reduce health-care spending for the Illinois Department of Human Services.
Pension reform
No pension reform will move forward until the Illinois Supreme Court rules on the constitutionality of Senate Bill 1, the pension bill the General Assembly passed in 2013 and the Sangamon County Circuit Court ruled unconstitutional in November 2014. At the end of 2014, Illinois Attorney General Lisa Madigan’s office filed a motion to expedite the court’s ruling, and the court granted this request.
A decision is likely to be finalized in March or April, near the end of spring legislative session.
The sooner the state learns the fate of SB 1 the better, because its $111 billion pension debt will only continue to grow without true reform. No one on either side of the aisle truly believes SB 1 is a comprehensive pension bill – if the court strikes it down, lawmakers will have the chance to go back to the drawing board to find real solutions.
No matter how the court finds, the right thing to do would be to offer all government workers the chance to opt out of the failing pension funds. Nearly 20 percent of state university employees chose to enter a 401(k) plan instead of the State Universities Retirement System, or SURS, pension fund in 2014. But SURS is the only state retirement system that offers employees that choice.
The surest way to stop the bleeding is to enroll all new public employees in self-managed plans going forward. This move is constitutional, would save the state immediate millions and would protect worker retirements.
Illinois is a state rife with policy problems, and it’s tough to predict where momentum might shift. But in terms of combined importance and immediacy, these three issues sit atop the pile for state lawmakers in 2015.
concisionmedia.com 