This transcript is automatically generated
We promoted this news is from Forbes magazine they say eleven states -- in a death spiral.
Then wood's death spiral.
No surprise that Illinois is on -- the eleven statements this state has an estimated that this 233.
Billion dollar pension obligation so.
Water is Illinois doing.
Putting a face on the problem creating a cartoon snake named squeezing the pension fund film.
-- stop laughing when will they stop taking this problem -- -- -- -- Joining us now is Kristina Rasmussen from the Illinois policy institute a -- We've been through this three minute pension.
Squeeze the python video.
That is all the result of Wall Street crashing.
That's why the -- so much pension trouble.
I didn't hear anything about -- plan to deal with this crisis what are you -- You're right that lack of solutions on the web -- from our governor Israeli Fannie.
-- everyone knows we have a problem that we can debate over who's to blame.
-- -- -- real solutions now if a -- -- I find is the fact that our governor has not where wherein deeper trouble than thought now.
In the absence of a real solid -- plans to deal -- this enormous pension problem.
Are you saying.
The one of their options for in Illinois is to go straight to DC insight we need a buyout we did after all vote for President Obama big time in the last election please give -- a bailout do you think that's gonna happen.
It's out and honestly -- that all too real possibility.
That governor refuses to rule out asking.
Or expecting a future federal bail out and if we keep sitting on our hands and doing -- The problem is only gonna get where and it's -- -- -- for a federal bailout and it would be outrageous -- the taxpayers and other states.
Folks who have their act together to fix our politicians -- But we -- you know look I've I've been saying this for a long time.
I think a bailout request is going to come I know that may be denying its.
But I think it's gonna come in California same situation Illinois same situation.
Both voted for President Obama big time I think of a bailout request at least is coming but absent that.
What plan could they put in place in Illinois to deal with -- pension -- you got -- ideas.
It's pretty simple what we need to deal we have to follow the lead of the -- and -- actor and transition into a defined contribution plan.
Pensions as we know at our throat trying to fix our system would be like bailing out the Titanic with -- -- cap.
You've got to do right by state workers and taxpayers and the -- -- -- -- that is a -- Kate's style look at them that that bit about wouldn't help now would it committee might help a mean fifteen years in the future that doesn't help now home.
-- number things you can do right now to bring down our payments that are supposedly squeezing out.
Other court services like ask Levy points out you can -- pension and salary you can get rid of -- as until the system -- thanks.
Those are things you can do right now to bring down.
So -- and why hasn't governor Quinn done.
Unfortunately these idea they're not very popular with the government employee unions who bank rolled his campaign's.
And it today it comes to hand and say we don't want these reforms I you don't see that kind.
Energy put behind -- reform proposals that you we really should be -- So that not prepared to make any kind of cuts they are prepared to continue to see big cuts in education and health -- And that quite prepared to go down the road and asked DC for a bailout.
That's the situation.
And are prepared for tax hikes I remember that we passed a major tax hike.
Last year in a lame duck session it hit middle class and we -- we're hearing rumblings they may try to make that tax pay per minute.
We're taking even higher with the progressive income tax once again putting the problem on the shoulder and I are working and -- and -- small business as a whole absolute disaster.
Extraordinary increase in a hold on for 12 I'll go Gerri Willis with the U wanna -- you got a comment I would ask this question one of the potential solutions here you can't have people.
Who are essentially the employees of the public making more than the public that's part of the problem.
Is it typically what happens public sector workers make more both in salary and benefits and the people who have hired them let's just unsustainable don't think.
It -- classic example of a teacher -- -- just about retire after thirty years on the job.
She's gonna be earning a first year pension of about 67000.
Over the course of her retirement that's -- -- of about 2.3.
Million dollars and a lot of that money is coming from struggling taxpayers taxpayers and finally -- -- badly but what what I save for their retirement and they've got a plan that 2.3 six dollar if you.
OK you were -- thirty years is a teacher.
And you retire you get 67000.
Dollars a year for life -- is that retirement age for teachers who put in thirty years when it.
Unfortunately think it's.
It's not high in half and folks can retire in their fiftieth a lot of folks go out in their sixties we've got to take that higher 67.
Good luck with that I don't think -- stand for I think you go from -- -- now that's what I think.
-- Rasmussen thank you very much for joining us please keep the commentary coming because we want to know about this bailout because I think it's coming Christina thank you very much -- -- --