Illinois to make full December pension payment
(Reuters) — Illinois will make the full $560 million December contribution to its retirement systems after the November pension payment was delayed by the state's ongoing budget impasse, a spokesman for the state comptroller said Tuesday.
"(The) primary reason is that December is a much better revenue month than November and we will have the available funds to make the payment," said Rich Carter, the spokesman.
He added that holiday sales and quarterly income tax payments generate higher revenue in December.
A battle between Republican Gov. Bruce Rauner and Democrats who control the Illinois Legislature has left the state without a budget for the fiscal year that began on July 1.
Gov. Rauner and legislative leaders will meet for the first time in months over the budget later on Tuesday. The stalemate, which has exacerbated the state's already shaky finances, led Moody's Investors Service Inc. and Fitch Ratings Inc. to push Illinois' credit rating into the triple-B level.
Illinois Comptroller Leslie Munger announced in October that the state lacked money for the $560 million November pension payment, while warning the December payment could be reduced or delayed as well. She also said all state pension funds would be paid in full by the time fiscal 2016 ends on June 30.
Various court orders have locked in funding for payroll and certain services at fiscal 2015 spending levels. Meanwhile, the rollback of temporarily higher income tax rates that took place on Jan. 1 will reduce fiscal 2016 revenue by about $5 billion.
