As Chicago Alderman Vito Marzullo used to say, “Everything is going up! The only thing coming down is the rain!”

In what looks more and more like a shooting war in Europe, Russia recognized two regions of Ukraine yesterday.

In response the Germans cut off the Russian gas pipeline to the West.

I’m not sure who this punishes.

Winter gas bills in Chicago are already up. In 2021 our heating bills were 43% higher than in 2020.

Which reminds me that as prices go up, Illinois retired teachers saw their pensions only rise 3% last February 1.

Inflation is running at a record pace.

We haven’t seen inflation like this since the mid eighties.

As Chicago Alderman Vito Marzullo used to say to justify tax increases for the first Mayor Daley, “Everything is going up! The only thing coming down is the rain!”

Why aren’t our pension increases tied to the cost of living like Social Security payments, which may I remind you, Illinois teachers do not receive.

Go ask the Governor and the legislature.

The Governor announced yesterday that he was budgeting an actual increase in the state’s contribution to the public pension funds. Pritzker is tossing in an additional $500 million.

Fiscal year 2023 is the first time since 1994 that the state’s annual pension contribution will exceed the statutory minimum.

And by the way, the statutory minimum is just a number the Governor makes up.

It should not be confused with the actuarial amount which is what is necessary to reduce the unfunded portion of the pensions.

To put this in perspective, Governor Pritzker said the added $500 million will reduce the future long-term liability of the state’s pension systems by an estimated $1.4 billion.

As mom used to say, “A billion here, a billion there. Pretty soon it starts to add up.”

The total long-term liability of all of the state’s five pension systems currently stands at $236.5 billion. The TRS unfunded liability is $80 billion.

None of this impacts the pension check we get each month. The Illinois Supreme Court has ruled that public employee pension benefits, including healthcare benefits, cannot be diminished or impaired.

It is the taxpayers who are getting screwed (and teachers are taxpayers too) since something like 70 cents on the dollar of the state’s pension costs go to pay interest on the debt. Who pays that? You do. Who gets it. Not retirees.

Right.

The banks.

What may impact our pension check each month is that while the Governor has added to the statutory minimum, he has reduced the contribution to retired teacher healthcare benefits.

Is this an unconstitutional diminishment of pension benefits? The state’s teacher unions say no. Incredible.

The Illinois Retired Teachers Association says yes.

The courts will decide.

My money, literally, is on the IRTA.