The pension overhaul which passed the legislature last month doesn’t do everything. A new study from the U of I’s Institute of Government and Public Affairs says the state still stands to have a multi (b) billion dollar deficit even after it’s caught up on the pension obligations.
The study’s author, economist Dick Dye, says, “The structural deficit – the mismatch between sustainable revenues and spending patterns – is not, in the next ten years at least, fixed. It shaves about $1 billion off the deficit, but a deficit that’s growing from about $4 billion a year to fourteen in ten years.”
Of course, stabilizing the pension problem was the goal, though Dye says the public, and even some lawmakers, may not fully understand that’s all the new law does.