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Illinois must move forward on digging out of its pension problem

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Illinois must move forward on digging out of its pension problem


If left too lengthy on the again burner, Illinois’ underfunded pensions will deplete the state’s funds.

As David Roeder reported in Wednesday’s Solar-Occasions, the Civic Committee of the Industrial Membership of Chicago launched a report this week calling for a 10-year earnings tax surcharge and exploring different measures to get the state’s pensions again into stability. The Legislature ought to observe up by enacting pension reform.

Illinois’ 5 statewide pensions are underfunded by about $140 billion. The state now’s on a “ramp” that requires ever-increasing funds into the pension funds annually till 2045, when the state can pay some $18 billion in 2045 alone. That can make it exhausting to pay for all the opposite issues the state does, together with schooling, public transportation and roads and bridges. 

Within the present fiscal yr, the state’s price range is near $50 billion, which exhibits how exhausting it is going to be to provide you with $18 billion only for pensions.

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If there’s to be a graduated earnings tax surcharge, we’d prefer to see high earners pay a better share than these on the underside rung. That may require a constitutional modification, and the newest effort to cross a progressive earnings tax modification failed in 2020.

The Civic Committee, which opposed the 2020 progressive tax referendum, is now proposing a surcharge of 0.5% on people and 0.7% on firms, which might elevate an estimated $2.9 billion. It is also recommending broadening the gross sales tax to incorporate providers. All of that cash would go towards funding pensions and the state’s rainy-day fund. People now pay a flat price of 4.95%.

“If you happen to do that in a accountable style and undertake correct actuarial and accounting strategies … we’ll really remedy the issue,” stated state Sen. Robert Martwick, D-Chicago, a longtime proponent of pension reform.

Absolutely funding the pensions would enhance Illinois’ bond ranking, which at BBB+ is now the bottom amongst all states.

Illinois already has taken smart measures. For the state’s fiscal years 2022 and 2023, Gov. J.B. Pritzker added a complete of $500 million to pension funds past what’s required by legislation. What’s wanted, although, is a plan that covers yearly going ahead till pensions are correctly funded.

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The Civic Committee plan contains recommendations the Legislature is more likely to discover unpalatable, comparable to a tax on retirement earnings and eliminating the property tax on belongings above $4 million. It additionally suggests chopping state company spending by 2% to three%, which could sound affordable till you keep in mind some state companies try to recuperate after have been hollowed out by yr after yr cuts.

However a complete plan that bumps up income to front-load repayments whereas flattening out the upward curve of the present compensation “ramp” might get Illinois on a path towards fixing the issue. Any aspect that may assist make new taxes progressive needs to be included.

With wholesome revenues coming in, the Legislature is probably not within the temper to lift taxes. However the time to behave is now.

The Solar-Occasions welcomes letters to the editor and op-eds. See our pointers.

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Illinois

GoFundMe page reaches goal after West Springfield woman is found dead in Forest Park

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GoFundMe page reaches goal after West Springfield woman is found dead in Forest Park


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A GoFundMe page created to pay for memorial services for Joann Garelli has reached its fundraising goal in one week.

A GoFundMe page has raised more than $5,000 to assist with memorial service costs for a West Springfield woman who was found dead earlier this month in Springfield’s Forest Park.

Joann Garelli, 56, was found dead Jan. 7 in the Camp Star Angelina area of Forest Park, according to a Facebook post from Hampden District Attorney Anthony Gulluni.

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Garelli’s death is currently under investigation by the Hampden District Attorney’s Office and the Springfield Police Detective Bureau’s Homicide Unit.

Andrew Santiago created the GoFundMe page to help his wife, Elizabeth Herd, pay for her mother’s memorial service, according to the page. On the page, Santiago called for an end to violence against women.

“[T]he violence and abuse of women are not taken seriously and we all need to come together as one to help prevent these attacks on women!” Santiago wrote.

The page was created Jan. 9 and will remain open until Garelli’s memorial service, which is scheduled to be held Jan. 21.

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Future of hemp in Illinois uncertain amid Delta-8 concerns

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Future of hemp in Illinois uncertain amid Delta-8 concerns


A controversial bill aimed at tightening restrictions on hemp products in Illinois failed to gain traction in the state legislature, leaving the future of the industry in limbo.

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Illinois House Bill 4293 sought to impose strict licensing requirements on hemp businesses, similar to those for cannabis dispensaries.

What we know:

Governor JB Pritzker supported the bill, calling it a priority to address concerns about unregulated hemp products like Delta-8, which can produce a psychoactive effect.

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Critics, however, argue that the proposed regulations would disproportionately impact small businesses. The Illinois Black Hemp Association raised concerns about high licensing costs and lengthy approval processes, warning that many entrepreneurs could be forced out of the market.

What they’re saying:

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“I found that it helped me out in a wellness perspective but also saw it as an opportunity to create generational wealth in the Black community,” said Sam Wilson of the Illinois Black Hemp Association. “Unfortunately, now that dream is in jeopardy because the American dream is under attack and is under attack by our billionaire governor.”

For small business owners like Misty Nelson, who runs Sunkissed Greenz in Mokena, hemp is essential. She and her husband started their business in 2020 using their pandemic stimulus checks and now rely on hemp sales for 40% of their profits.

“If there’s a complete ban, our small business would go up in smoke,” said Nelson, who supports regulating Delta-8 rather than banning it outright. “We want to protect children, too. Instead of a ban, we’d like regulations that ensure safety while letting our clientele access natural remedies for sleeping, pain, and anxiety.”

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Some lawmakers agree that regulation, not prohibition, is the way forward. State Representative La Shawn Ford supports age restrictions similar to those for tobacco and cannabis.

“We definitely need to regulate Delta products,” Ford said. “If we passed that today, I would be very happy.”

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What’s next:

The Delta-8 issue of whether to regulate, ban, or not change anything is expected to return when the new General Assembly convenes.

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Officials identify body found at Springfield’s Forest Park

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Officials identify body found at Springfield’s Forest Park


SPRINGFIELD, MA (WGGB/WSHM) – Authorities have released the identity of the person whose body was found last week in Forest Park in Springfield.

Last Tuesday evening, Springfield Police responded to the area of Trafton Road for a reported body found. When they arrived, they found a woman dead in the area of Camp Star Angelina.

On Thursday, the Hampden District Attorney’s Office identified the body as 56-year-old Joann Garelli of West Springfield.

The case remains under investigation by the D.A.’s office, in conjunction with the Springfield Police homicide unit.

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Western Mass News will continue to follow this story and will have more information as it becomes available.



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