Illinois Governor Pat Quinn said that lawmakers must fix the Illinois state pension plan before the program collapses. On February 22, 2012 Governor Pat Quinn gave a 30 minute budget speech but never mentioned how he plans to fix the Illinois pension system. Quinn said that he was elected governor in November 2010 to be honest with the people of Illinois and that he would be honest during the budget speech even if it was not what the people wanted to hear. He said the truth is that for 35 years past governors and members of the General Assembly have been clinging to budget fantasies rather than confront harsh realities with respect to the Illinois pension plan.

Quinn said he is proposing serious spending reductions but for the reductions to work Illinois must stabilize and strengthen the Illinois pension system. Quinn also said he plans to fix the state’s Medicaid program. However, he never mentioned how he plans to fix these two financial disasters. I think the reason for him not being able to speak to how he will fix the problem is because the Illinois state pension plan is more of a predicament instead of a problem.

Problems can be fixed but predicaments have an end result which we do not have control over. The predicament, in this case is that the Illinois state pension plan will crash due to enormous pension debt and the state’s overall debt levels. Illinois is in the 48th worst financial position of all 50 US states.

The end result of this predicament is not one that I hope for but nevertheless will become true. This year’s Illinois pension plan payment is $5.2 billion which is triple what it cost in fiscal year 2008. Quinn plans to wait and hear what his budget commissions will recommend by the April 17 deadline.

For over three decades Illinois governors have not ensured that the proper payments were made to the Illinois state pension fund and used flawed accounting methods to provide the numbers on the balance sheet. But now Governor Pat Quinn is trying to show he will fix the pension disaster in the countries 48th worst financial state. I applaud Governor Pat Quinn for addressing this financial disaster in his budget speech yesterday but I am afraid it will be too little too late. Governor Quinn never indicated any suggestions as to how Illinois pension system would be fixed.

For the hundreds of thousands of government employees paying into the Illinois state pension system and the retirees already receiving passive income for life I am afraid it is soon going to be over. If you feel you deserve your hard earned pension and want to take an active role in providing yourself financial security even if your pension disappears I suggest you begin your education on the future of state pensions and how to truly earn passive income for life. Your Illinois state pension needs a bailout and you need a plan B.