BC-IL--Troubled Bridges,1031

AP IMPACT: 'These are people's lives you're playing with' _ Hundreds of Illinois bridges rated in poor shape

With BC-IL--Troubled Bridges-Rural, BC-IL--Troubled Bridges-Summary Box, BC-IL--Troubled Bridges-County Profiles, BC-IL--Troubled Bridges-Ratings, BC-IL--Troubled Bridges-Sufficiency Glance, BC-IL--Troubled Bridges-Deficient Glance
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Doc: 00270529 DB: research_d_2007_3 Date: Sun Sep 2 13:46:57 2007

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iD8RDFE481 09-02-2007 13:46:57*F BC-IL--Troubled Bridges:More than 1,500 Il

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BC-IL--Troubled Bridges,1031

AP IMPACT: 'These are people's lives you're playing with' _ Hundreds of Illinois bridges rated in poor shape

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ More than 1,500 Illinois bridges, some used by tens of thousands of people each day, carry worse structural ratings than the Minneapolis span that collapsed last month and killed 13 people, according to a review of records by The Associated Press.

Cars and trucks are barreling across worn-out decks, crumbling pillars or aging supports. One bridge in downtown Chicago that carries 139,000 vehicles every day has a structural rating of just 2 out of 100.

"It's highly questionable that those should even be open," said John Frauenhoffer, a Champaign engineer and past president of the Illinois Society of Professional Engineers. "That's a ridiculously low number."

State officials acknowledge the safety concerns but insist they're doing all they can to repair the poorest ones and keep an eye on others, including special inspections of all critical bridges since the Minnesota collapse Aug. 1.

"We can't just live with 93 percent or 82 percent or whatever. We want 100 percent of our bridges to be safe," said Ralph Anderson, engineer of bridges and structures for the Illinois Department of Transportation. "We're managing as well as we can within our means."

Overall, the vast majority of Illinois' 26,000 bridges are deemed safe.

Fewer than 10 percent are rated "structurally deficient" by inspectors. Nearly 890 of the 2,400 bridges in the deficient category simply need attention and some rehabilitation work, not replacement.

But more than 1,500 have bigger problems and they have been rated lower than the 50 given to the Minneapolis bridge. Fully one-third of those bridges were rated at 25 or below.

The ratings are based on a long list of factors that measure whether a bridge is structurally sound and able to meet modern traffic needs. The federal government will provide rehabilitation money for bridges rated 80 or below and will help replace bridges at 50 or below.

A low rating doesn't mean a collapse is imminent. But it does mean that inspectors see potential problems, which triggers a complicated process of determining how urgently the bridge needs repairs.

"It's a moving target," IDOT's Anderson said. "It isn't a science, it is somewhat of an art."

The worst-rated bridges are mostly little-traveled spans in smaller counties in central and southern Illinois. They're usually old and carry little truck traffic.

Others, however, are major crossings. They include:

_ The south bridge of Interstate 290 over the Chicago River, which carries 139,000 vehicles a day and has a sufficiency rating of 2. A sufficiency rating summarizes detailed inspection data for a bridge's deck, superstructure and substructure and provides an overall picture of a bridge's health.

_ A Peoria County bridge on U.S. 24 that serves 28,800 vehicles a day and scored only a 16.

_ The Stewart Avenue elevated section of Interstate 90-94 in Cook County, which carries 238,500 vehicles a day and scored a 35.

Bridges worry Maurice Jones, a Chicago security guard.

"I don't like none of them, I don't like walking over them," Jones said as vehicles zoomed across the rusty Chicago River bridge, which clanged as cars hit bumps and creaked slightly under the weight of a semitrailer.

"I'd like all of them to get fixed and repaired," he said. "These are people's lives you're playing with."

Amer Haskovic, a pizza delivery man who crosses the bridge three times a day, fears the span will continue to deteriorate until disaster strikes. "People don't pay attention until something happens," he said.

Anderson, the state engineer, acknowledged the low scores are troubling but said the agency is doing what it is supposed to _ delivering attention and money to the bridges that need repairs the most.

The department either has done major work or will start it soon on two low-rated Chicago bridges and several others in the area, closing lanes and spending millions of dollars. Bridges generally are inspected every two years. The lowest-rated bridges get yearly inspections, and some are examined more often and for more detailed problem areas, Anderson said.

"The bridge is talking. We're just hoping that we're listening," he said.

Still, there is no trigger point on the rating scale where officials are required to shut down a bridge for repairs or replacement, making such decisions more subjective. IDOT did not release its inspection reports for 10 low-rated bridges, despite multiple requests over nearly two weeks.

Governments need money for repairs, but that has been scarce in Illinois. Gov. Rod Blagojevich and state lawmakers have been deadlocked for years over proposals to borrow money for a major new construction program.

The Aug. 1 collapse in Minneapolis, which remains a mystery, has renewed calls for action in Illinois. Officials may try again to agree on a source of money when lawmakers return to Springfield in September.

Bridge inspectors don't have the luxury of taking a span out of service to pore over every inch of it, the way an airplane is inspected. They have to review a bridge's strength and condition while it's being used and then estimate the effect of everything from corrosion to traffic.

"Once you see something, even harder is to understand what the impact of that is on the safety of the bridge," said Robert Dodds, head of the civil engineering department at the University of Illinois at Urbana-Champaign.

The biggest challenge is prioritizing the bridges so that the limited pot of state and federal money goes to the spans most in need of repair or replacement. Experts say bridges often take a back seat to higher-profile transportation problems, such as reducing teen deaths.

"If we were killing 6,000 people a year with our highway bridges, we'd be spending more money," Frauenhoffer said.

___

Associated Press reporter Dan Strumpf contributed to this report from Chicago.

___

On the Net:

Federal bridge data for Illinois: http://illinois.ap.org/Bridge/Bridge.asp

Illinois transportation department: http://www.dot.state.il.us

American Society of Civil Engineers: http://www.asce.org/reportcard/2005/actionplan07.cfm

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Doc: 00270619 DB: research_d_2007_3 Date: Sun Sep 2 14:17:24 2007

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iD8RDFSD01 09-02-2007 14:17:24*F BC-IL--Troubled Bridges-Information:Bridge

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BC-IL--Troubled Bridges-Information,0633

Bridge condition details not easy to find, decipher

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ Illinoisans who want to know about the safety of local bridges can't get the information easily. Deciphering what they do get is even harder.

The Illinois Department of Transportation won't release inspection reports that provide detailed information about bridge conditions. Citing fears of terrorism, agency officials argue those reports are not public documents.

Nor does the state provide easy access, such as a Web site, to the ratings that are used to sum up a bridge's condition. Local and federal governments don't provide much help either.

But some officials will release inspection reports. Douglas County, for instance, provided four years of inspection reports on a poorly rated Kaskaskia River bridge Friday when asked for them.

Local officials say they have rarely, if ever, gotten requests for the highly technical documents, which assess categories such as deck geometry and minimum lateral underclearance.

An Associated Press analysis of federal transportation data found more than 2,400 bridges in Illinois are deemed structurally deficient. More than 1,500 of those have worse structural ratings than the Minneapolis bridge that collapsed last month, killing 13 and drawing new national attention to bridge safety.

The AP review was based on a detailed federal database covering everything from a bridge's age to general condition.

But the database didn't contain specifics from the reports that state and local inspectors fill out when they go over the spans every year or two.

The ratings give a general explanation of why a bridge might, for instance, get a "poor" rating of 4 on its deck. But they don't spell out whether the rating is because of potholes or a flaw in the material, or exactly where the problem area is located _ details that might be included in the inspection report.

The Federal Highway Administration does provide the ratings on its Web site, but it's not much help to the average visitor. The information must be converted into a database and deciphered with a guide to all the numeric codes that are used.

Spokesman Mike Claffey said IDOT does not plan to make bridge ratings available on its own Web site. "We certainly have been explaining to the press and to the public over the last month our bridge inspection process," Claffey said.

In refusing to release the inspectors' reports, IDOT cited a portion of the Illinois Freedom of Information Act that pertains to security matters. It also cited a letter from the governor's Illinois Terrorism Task Force.

"Release of information related to vulnerabilities at a specific location could compromise the security of that bridge," the group's chairman, Mike Chamness, wrote in an Aug. 24 letter.

Claffey would not elaborate on the potential dangers, saying only that engineers have been concerned since 2001 that such information could be used to damage bridges.

Township officials say they don't get many public requests for bridge information but it is available if requested.

"That obviously is a public record," said Bryan Smith, executive director for the Township Officials of Illinois.

Douglas County Engineer Jim Crane also said the inspection reports are available to the public.

An expert who has worked for three decades as a bridge engineer says he's never heard of a public request for bridge inspection information.

John Frauenhoffer, head of a Champaign engineering firm and past president of the Illinois Society of Professional Engineers, said citizens likely would need help to understand the jargon found on inspection reports if they did get them.

But he hopes interested citizens aren't deterred from seeking the information.

"The public should have access to it," Frauenhoffer said. "It ought to be available and it shouldn't be impossible to get."

---

Associated Press reporter David Mercer contributed to this story from Champaign.

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iD8RDFF9G0 09-02-2007 13:49:26*F BC-IL--Troubled Bridges-Rural:Most trouble

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BC-IL--Troubled Bridges-Rural,0482

Most troubled Illinois bridges are rural and little-traveled

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By DAVID MERCER and RYAN KEITH

Associated Press Writers

FICKLIN, Ill. (AP) _ The nameless, one-lane bridge on Douglas County Road 1050 has seen much better days. Concrete chunks are falling off its underside, and the structures anchoring it to the river bank have inch-wide cracks.

But the bridge over the Kaskaskia River, built in 1913, won't be replaced any time soon, even though it scored just 17.6 out of 100 on its last inspection. The bridge has a nine-ton weight limit, but some people who live nearby say they see heavy school buses and farm trucks crossing it.

"We're really reaching a breaking point where we can't keep up with bridge deterioration," said Jim Crane, the county's engineer. "We get to a point where we just have to close the bridge."

Hundreds of other bridges throughout Illinois are in the same position _ too many needs and not enough cash.

Most of the 2,400 Illinois bridges deemed structurally deficient are small, little-traveled bridges, an Associated Press review of federal data found. They need help but can't compete with bigger, busier bridges for scarce resources.

Douglas County, for example, had about $400,000 last year for bridges but replacing one can cost millions. Costs keep going up, but state and federal money doesn't match that growth.

Of the 2,400 Illinois bridges with structural problems, more than 1,000 serve just 100 or fewer vehicles each day, the AP review found. Among the very worst bridges _ those scoring 50 or less on inspections _ more than half have tiny traffic levels.

Problem bridges are found in nearly all of Illinois' 102 counties. Many are small, one- or two-lane spans, often old and neglected. With limited government money available for repairs, bridges are often prioritized by how much they're used. That means many smaller ones are left waiting year after year.

Sometimes, bridges are closed for good, or until repairs are done. Some are "shored up" with additional bracing. Mostly, though, they're kept open but placed under weight limits to keep extra-heavy trucks and other vehicles from crossing.

John Frauenhoffer, who has inspected bridges for townships and other governments, doesn't like small bridges being pushed down the priority list.

"I don't think that traffic volume should have anything to do with the ratings," said Frauenhoffer, a past president of the Illinois Society of Professional Engineers. "You've got to start replacing these structures."

Down the road from the Kaskaskia bridge, 89-year-old Robert Romine said he wasn't concerned about its condition.

"Oh no," said Romine, who has spent his entire life near the crumbling span. "I just now come from town on it."

___

Keith contributed to this report from Springfield, Ill.

___

On the Net:

Federal bridge data for Illinois: http://illinois.ap.org/Bridge/Bridge.asp

Illinois transportation department: http://www.dot.state.il.us

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Doc: 00267686 DB: research_d_2007_3 Date: Sat Sep 1 13:34:46 2007

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BC-IL--Troubled Bridges-County Profiles, 2 Takes,3688

Deficient bridges in each Illinois county

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By The Associated Press

More than 2,400 Illinois bridges are considered "structurally deficient," according to an Associated Press analysis of federal data. They range from one-lane spans that see little use to eight-lane bridges that serve tens of thousands of people each day. A look at the deficient bridges in each county, along with information on their use and their rating on a scale of 1 to 100.

�ADAMS

_21 of 309 bridges structurally deficient (6.8 percent).

_15 township bridges, 2 county, 1 state, 1 city, 2 other.

_12,626 vehicles a day total, or 601 per deficient bridge. Traffic ranges from one bridge at 8,750 to seven with 25.

_Average truck traffic ranges from 0 to 9 percent.

_Sufficiency ratings from 0 to 89.9, with average of 40.6.

�ALEXANDER

_5 of 91 bridges structurally deficient (5.5 percent).

_3 township, 2 state.

_525 vehicles a day total, or 105 per deficient bridge. Traffic ranges from one bridge at 275 to three at 25.

_Average truck traffic ranges from 0 to 7 percent.

_Sufficiency ratings from 17 to 34.7, with average of 24.4.

(similar entries for all 102 Illinois counties)

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Doc: 00267600 DB: research_d_2007_3 Date: Sat Sep 1 13:07:22 2007

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BC-IL--Troubled Bridges-Summary Box,0093

Summary box: Troubled bridges

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By The Associated Press

DEFICIENT SPANS: 2,400 Illinois bridges, or about 10 percent of the total, have been declared "structurally deficient," according to federal data.

MINNESOTA COLLAPSE: 1,500 of the Illinois bridges have lower ratings than the Minneapolis bridge that collapsed last month, killing 13.

BUSY BRIDGES: Many low-rated Illinois bridges serve thousands of people, including one rated 2 out of 100 that carries 139,000 vehicles each day.

WHAT GIVES: State engineers say they prioritize bridges for repairs based on inspections that occur every two years, annually or more frequently depending on conditions.

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Doc: 00267725 DB: research_d_2007_3 Date: Sat Sep 1 13:44:35 2007

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BC-IL--Troubled Bridges-Deficient Glance,0203

The best and worst in Illinois bridges

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By The Associated Press

The 10 Illinois counties with the highest percentages of bridges deemed structurally deficient and the 10 with the lowest percentages, based on an Associated Press analysis of December 2006 data provided by the U.S. Department of Transportation:

�MOST DEFICIENT

_Wabash: 25 of 91 bridges structurally deficient (27.5 percent)

_Shelby: 90 of 356 bridges (25.3 percent)

_White: 39 of 213 bridges (18.3 percent)

_Hamilton: 30 of 167 bridges (18 percent)

_Clay: 29 of 163 bridges (17.8 percent)

_Christian: 56 of 321 bridges (17.4 percent)

_Edwards: 13 of 78 bridges (16.7 percent)

_Macoupin: 40 of 243 bridges (16.5 percent)

_Lake: 38 of 232 bridges (16.4 percent)

_Brown: 11 of 68 bridges (16.2 percent)

�LEAST DEFICIENT

_Ogle: 5 of 373 bridges structurally deficient (1.3 percent)

_Putnam: 1 of 43 bridges (2.3 percent)

_Champaign: 17 of 695 bridges (2.4 percent)

_Edgar: 7 of 266 bridges (2.6 percent)

_Kankakee: 10 of 342 bridges (2.9 percent)

_Massac: 4 of 128 bridges (3.1 percent)

_Kendall: 4 of 121 bridges (3.3 percent)

_DeKalb: 10 of 256 bridges (3.9 percent)

_Clark: 9 of 227 bridges (4 percent)

_Scott: 4 of 100 bridges (4 percent)

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Doc: 00267703 DB: research_d_2007_3 Date: Sat Sep 1 13:39:07 2007

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BC-IL--Troubled Bridges-Ratings,0320

How to rate a bridge?

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By The Associated Press

Bridge inspections and safety ratings are a combination of technology, skill and art, all focused on preventing accidents or disasters. Inspectors have their hands full in Illinois, with 26,000 bridges.

How do they do it? A quick overview:

_ Most bridges are inspected every two years. Some are in good enough shape to need an inspection only once every four years. Others need special inspections every two years or once a year because they show structural problems. The three major elements of the bridge are graded individually: the deck, superstructure and substructure.

_ Inspectors follow a detailed set of instructions and an in-depth rating system developed by the federal government to assess bridge health. The system, used for the National Bridge Inventory, is exhaustive and covers everything from the length of the bridge to the kind of sealant used to protect its deck. A bridge's age, traffic volume, truck traffic and corrosion help inspectors decide whether special scrutiny is warranted.

_ A 9-point scale is used to rate the condition of key areas, such as the bridge's deck and substructure. A rating below 5 is considered from poor to failed condition, while 5 and above is fair to excellent. Bridges that do badly in one or more of these categories can be declared "structurally deficient." Illinois has 2,400 of those.

_ Based on all inspection data, each bridge receives a "sufficiency rating" to identify spans with structural problems or obsolete designs that don't meet modern traffic demands.

Bridges that receive an 80 or lower on the 100-point scale qualify for federal repair money, while those at 50 or below could get money for replacement. More than 1,500 bridges in Illinois scored below a 50 in the last inventory report, from December 2006.

___

For more information, visit the U.S. Department of Transportation's Federal Coding Guide at http://www.fhwa.dot.gov/BRIDGE/mtguide.pdf

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BC-IL--Troubled Bridges-Sufficiency Glance,0190

Illinois bridges, best and worst

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By The Associated Press

The 10 Illinois counties with the best average sufficiency ratings among bridges with structural problems and the 10 with the worst averages, based on an Associated Press analysis of December 2006 data provided by the U.S. Department of Transportation. The rating, based on inspection data, is intended to identify structural problems or obsolete designs that don't meet modern traffic demands.

�BEST AVERAGE

_Putnam: 1 bridge, 64.1 average rating (on 100-point scale).

_Rock Island: 26 bridges, 59.8 average.

_Champaign: 17 bridges, 58.6 average.

_Lee: 15 bridges, 56.2 average.

_Boone: 7 bridges, 56.1 average.

_Franklin: 14 bridges, 55.4 average.

_Cass: 4 bridges, 55 average.

_Randolph: 12 bridges, 54.3 average.

_Cook: 180 bridges, 54.1 average.

_Tazewell: 30 bridges, 53.8 average.

�WORST RATING

_Edwards: 13 bridges, 22.5 average.

_Pulaski: 5 bridges, 24 average.

_Massac: 4 bridges, 24.2 average.

_Alexander: 5 bridges, 24.4 average.

_Schuyler: 6 bridges, 24.5 average.

_Edgar: 7 bridges, 30.4 average.

_Brown: 11 bridges, 32.3 average.

_Hancock: 47 bridges, 32.3 average.

_Christian: 56 bridges, 32.4 average.

_Scott: 4 bridges, 32.4 average.

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Doc: 00251328 DB: research_d_2008_2 Date: Sun May 25 12:11:46 2008

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iD90SOVGG0 05-25-2008 12:11:46*F BC-IL--Legislature & You-Pension Pain:In t

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BC-IL--Legislature & You-Pension Pain,1107

AP IMPACT: Illinois pension debt worst in nation

%xhl(AP IMPACT: Illinois $42B pension debt worst in nation, growing with no solution in sight%)

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ In the time it takes you to read this sentence, Illinois taxpayers will be $200 deeper in debt.

The state's pension debt will exceed $44 billion this summer, increasing at a rate of about $120 per second, according to Gov. Rod Blagojevich's administration. The debt already tops $42 billion _ enough to give every one of Illinois' 12.8 million residents a check of $3,300 or buy 937,000 Cadillacs at $45,000 a pop.

The combination of debt in terms of both money and percentage gives Illinois the infamous distinction of having the nation's worst pension problem, according to an Associated Press review of records and interviews with experts. And there's no solution in sight.

The staggering debt load for the five pension plans for state employees is a problem that's remained largely in the shadows for decades. The $42 billion "unfunded liability" _ the difference between the systems' assets and what they owe employees in benefits _ also is creating a real problem for state policy makers.

It's squeezing out money for other valued needs, such as education and health care. It means the state has less money for things like child-care aid and fixing roads and schools, or paying some of the $1 billion it owes to Medicaid health care providers and others.

"Someday, those costs have to be paid," said Eden Martin, who heads the civic committee of the Commercial Club of Chicago, an economic improvement group. "There is no free lunch anywhere."

Dating to the 1970s, state lawmakers pushed off the yearly payments they were supposed to make to cover the "normal costs" of pensions, or how much employees earned that year in benefits. These so-called holidays added up, and the debt multiplies over time.

"People didn't pay attention," said Rep. Kurt Granberg, a Carlyle Democrat who helped push for a plan to deal with pension payments. "They saw the pension obligations 20, 30 years down the road. It was fiscally irresponsible."

And the problem is getting worse every second.

At $42 billion, the debt grows by $3.6 billion a year _ enough to let nearly 1 million people put $70 worth of gas in their vehicles every week for a year. Enough to cover $1 million ads for 3,600 companies during next year's Super Bowl.

Like an out-of-control credit card infatuation, or a house mortgage where only a fraction of the cost is paid each year, new pension debt gets piled on top of old.

Here's what the debt means:

For decades, state employees and teachers have been promised yearly payments when they retire, based on their salaries and years of experience. The average monthly benefit ranges from $1,900 to $3,100 per month, according to estimates from the Illinois Retirement Security Initiative.

The pension funds have invested the cash paid into the systems by employees and state government to build up the coffers, but the value of those investments still falls far short of what's needed to cover all the benefits earned so far. That's what causes the $42 billion debt.

Lee Ann Gemmingen, who's about halfway through her career as a seventh-grade language arts teacher in Belleville, said she is frustrated that the future is uncertain even though every year she and thousands of others like her pay what they're supposed to contribute toward their retirement.

With no Social Security to fall back on, Gemmingen can't help but feel uneasy.

"You get that knot in your stomach kind of feeling," she said. "Am I going to have a pension left? I don't have anything else there."

Overall, the Illinois pension systems have about 63 percent of the funding they should to meet their obligations. According to the National Association of State Retirement Administrators, California has an estimated $54 billion debt in its systems, and several states have funding totals under 63 percent.

But taken together, no other state can match Illinois' problem.

California's $54 billion debt is larger, but its pension systems are more than 87 percent funded. And states with worse funding percentages have much smaller pension funds _ Connecticut's is the largest at about $14 billion, about one-third of Illinois' debt.

Experts say the 63 percent funded number is important because many states are at 80 percent or higher; some, such as Florida, are fully funded. The higher the number, the more confident employees can be that their retirement money is safe and will be paid to them.

State pensions will be paid whether the systems are 60 percent funded or 90 percent funded, lawmakers say _ the funding percentage only matters if all state employees would retire at once.

"It's a little bit like saving up for college, except your kid never goes to college," said Sen. Don Harmon, D-Oak Park. "We're always saving up for retirements in 20 or 30 years."

And not long ago, Illinois was in even worse shape with pensions. Its funds were at 48 percent funded until $10 billion in pension borrowing bumped that up to 61 percent. A 50-year plan adopted in 1995 has the state on track to be up to 90 percent funding by 2045.

But here's the rub: The state agreed to pay the pension systems 8.5 percent interest _ the estimated return on investments the systems would expect to get if they had all the money they were owed _ for essentially borrowing money from the payments they should receive.

That's 8.5 percent every year. On $20 billion, that's about $1.8 billion a year. On $42 billion, it's $3.6 billion. When you add the actual cost of employees' benefits each year, the state faces nearly a $5 billion payment just to keep the debt from getting bigger.

"We're falling further behind, not even staying constant, and that's why we know we've passed the point where we have to do something," said John Filan, Gov. Rod Blagojevich's top budget adviser.

Many at the Capitol are concerned nothing significant will be done on pensions this year or even next. Lawmakers could be tempted to deal first with more politically popular programs, such as education and health care, and put off pension reform again.

"You don't get many kudos for paying pension expenses," Filan said. "There are competing choices."

___

On the Net:

State Office of Management and Budget: http://www.state.il.us/budget

State Commission on Government Forecasting and Accountability: http://www.ilga.gov/commission/cgfa2006/Resource.aspx?id5

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Doc: 00251346 DB: research_d_2008_2 Date: Sun May 25 12:17:41 2008

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iD90SP2981 05-25-2008 12:17:41*F BC-IL--Legislature & You-Pension Pain-Exce

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BC-IL--Legislature & You-Pension Pain-Exception,0372

Illinois fund an example of how things could be

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ Not all Illinois pension funds are in serious financial trouble.

Officials at the Illinois Municipal Retirement Fund tout the news wherever they can. They're not part of the underfunded state system _ and yes, their system for the past two years has been 100 percent funded.

That means the system roughly has all the money needed to cover all their members' earned benefits if they retired today. The five funds for state employees, in comparison, have a $42 billion combined debt and are only 63 percent funded.

How did they do it? IMRF officials say it's a combination of good planning and wise investing.

The fund has 84,000 retirees and 174,000 active members serving in local government throughout Illinois. It covers everyone from city, village and county workers to firefighters and police officers whose communities don't have local funds.

It was created in 1941 with five employers and $5,000 in assets. Today, it serves nearly 3,000 government bodies and has more than $24 billion in assets. Retirees each receive about $750 a month in average benefits.

Louis Kosiba, IMRF's executive director, credits smart investments and a diverse portfolio with helping to keep cash coming in. About two-thirds of the fund's money comes from investments, with the rest from employers and employees.

But early on, Kosiba said, the fund made a long-term plan to ensure it was as close to fully funded as possible _ and stuck to it. The state funds racked up a big debt because lawmakers for many years didn't put in enough money to cover retiree costs, spending that money on other needs.

"There's no one to blame," Kosiba said. "People want government that runs efficiently. Sometimes you just have to make a choice."

Kosiba said IMRF is committed to ensure both employees and employers pay what's expected of them each year to cover benefit costs. He said the state could slowly dig out of its hole if it made the same commitment.

"We've always had the funding goal," Kosiba said. "Once the momentum gets going, it really works out well."

___

On the Net:

The Illinois Municipal Retirement Fund: http://www.imrf.org

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Illinois pension problem has ugly ripples

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With BC-IL--Legislature & You-Pension Pain

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ The state's $42 billion pension problem is a regular worry for Virginia Yates, a widow who worked for 27 years as a mental health technician in southern Illinois.

She and other retirees who say they are just trying to keep up with expenses on modest pensions share some fears:

Will the state follow through on its promises? Could they reduce retirement payments, or cut them altogether, if there's not enough money?

"Now we have to fight to keep what we fought to get," said Yates, who lives in Sandoval and collects about $1,500 a month in pension payments. "People are scared because there's no money ... They don't know what they're going to do."

Illinois owes tens of billions in past-due payments to its five state employee pension systems. That leaves less and less money for other needs _ and the ripple effects are growing each year along with the debt.

Lawmakers in 1995 set up a 50-year plan to pay down the debt and get the funds to 90 percent funded (they are at 63 percent currently). But rather than structure flat annual payments over that time, they set up the plan with small initial payments that gradually increase each year. They hoped an improving economy would make increases easier to handle.

So every year, lawmakers are required to direct more tax money to paying off past pension debt. In 2005, that payment was about $2 billion. Next year, it's supposed to be $3.3 billion. By 2010, it's more than $4 billion.

Those are steep increases in any year. But when the state budget has a $750 million hole and tax revenues are expected to start slipping, it nearly wipes out any new money that could go to other needs.

"It's a major squeeze on the general revenue fund, and it brings to crisis proportions what would be a problem even without the pension issue," said John Bouman of the Shriver National Center on Poverty Law in Chicago.

That means less cash available to fix pothole-ridden roads, relieve prison overcrowding, fix beaten-up schools or give child-care subsidies to people like Michelle Ramirez, a single mother in Chicago who sends her kids, 3 and 4, to day care while she works as a receptionist.

Ramirez said she recently had to switch day care centers and has seen her monthly day care copay rise from $100 to $360 a month. To make ends meet, she's moved to a cheaper apartment and gotten rid of her car, and she's had to put off going back to school to get a college degree.

"We don't do things as much as we used to," Ramirez said.

They're hardly alone.

The Blagojevich administration notes that nearly $6 billion has been put into K-12 school funding since he took office in 2003 _ but pension debt will climb by about $4.8 billion this year alone.

If the state could cut its $42 billion pension debt to $20 billion, that would free up $1.8 billion a year. In just three years, the state could nearly double education funding if all that cash went there.

The state owes the pension systems 8.5 percent interest on debt that it carries over every year. That amounts to $3.6 billion in interest _ enough to give all public schools and colleges a 40 percent funding increase this year. Or enough to pay a year's worth of $150-a-month electric bills for 2 million people.

The administration is pushing legislators to take immediate action.

"We'd have other challenges, more education funding and a number of other things that might be out there," said John Filan, Gov. Rod Blagojevich's top budget adviser. "But we wouldn't have this annual sort of frozen in time (period) where we can't move forward because of the pension liability."

The situation makes a hard sell that much tougher for groups trying to help Ramirez and others. They come to the Capitol each year to lobby for social service improvements _ tens of millions of dollars more for health care, child care subsidies and job training systems.

They get used to being told "no" by lawmakers who simply can't find the money to help. Even now, advocates are urging lawmakers to put another $68 million into a program aimed at providing preschool for every Illinois child.

"Needless to say, we'll always have something on our plates that needs funding," said Sessy Nyman, vice president of public policy for Illinois Action for Children. "We haven't ever been the priority. We're always at the back of the line. How long are we supposed to wait?"

Nyman's group praised lawmakers for supporting recent improvements for low-income families who need affordable child care to stay employed, such as raising the income threshold for who can qualify for aid. But much more needs to be done, she says.

Blagojevich's budget proposal includes $55 million to help child care providers cover their costs, but not another $45 million needed to ensure the amount parents such as Ramirez have to pay for such care aren't too high.

Experts and advocates caution that pension debt isn't the only reason the state doesn't have more money for school funding, new state police cars, road improvements or better prison staffing.

But it clearly limits the discretion policymakers have with every budget.

"It causes a crowding-out effect of other important needs of the state," Comptroller Dan Hynes said. "That has a real impact."

For retirees, it's a matter of security.

Joyce King, who worked for the state on child welfare issues for 40 years, said retirees welcome any assurances they can get about their retirement, even if it takes state budget woes to get something done.

"I am dependent on that income," King said. "I don't want to be a bag lady."

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Needs getting squeezed out by Illinois pension debt

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By The Associated Press

More tax money must be devoted each year to paying off pension debt under a 50-year payment plan approved in 1995. That leaves more needs competing for less money in each state budget. Here is a look at some of the needs that advocates and state lawmakers are touting this year:

_$100 million to double the size of the state's earned income tax credit to help working families keep more money at tax time.

_$14 million to bolster treatment and services for children with mental illnesses.

_$10 million to aid new parents in optimizing care for infants and toddlers at risk of falling behind.

_$5 million to train volunteers who serve as children's advocates in juvenile court or foster care systems.

_$30 million to expand preschool opportunities by building more classrooms.

_$68 million to improve preschool and programs for children birth to age 3.

_$65 million for a variety of improvements to boost child care opportunities and access for low-income and working families.

_about $1 billion in outstanding bills to Medicaid health care providers and others.

_about $1 billion to create a $10 billion program for new statewide school, road and other government construction projects.

_$1 billion a year for the next five years to repair and improve roads and transit systems.

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Comparing pension debt to spending on education, roads

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With BC-IL--Legislature & You-Pension Pain

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By The Associated Press

Illinois' pension debt has more than doubled from the mid-1990s to about $42 billion today. The growth in the state's payments on that debt has far outweighed the cash increases lawmakers put into major needs such as schools and road improvements over the last few years.

Here is a comparison of yearly pension payment growth and increased spending for the State Board of Education and the Illinois Department of Transportation for the last decade, according to data provided by Gov. Rod Blagojevich's administration. (The 2004 increase and 2005 decrease for pensions reflect the proceeds of the $10 billion pension bond being put into the systems):

_1999: $102 million increase for IDOT (3.9 percent); $573 million increase for ISBE (10.5 percent); $254 million increase for pensions (27.4 percent).

_2000: $1.13 billion increase for IDOT (41.7 percent); $597 million increase for ISBE (9.9 percent); $116 million increase for pensions (9.8 percent).

_2001: $379 million increase for IDOT (9.8 percent); $534 million increase for ISBE (8 percent); $124 million increase for pensions (9.6 percent).

_2002: $106 million increase for IDOT (2.5 percent); $144 million decrease for ISBE (-2 percent); $116 million increase for pensions (8.2 percent).

_2003: $69 million decrease for IDOT (-1.6 percent); $153 million increase for ISBE (2.2 percent); $152 million increase for pensions (9.9 percent).

_2004: $667 million decrease for IDOT (-15.5 percent); $445 million increase for ISBE (6.2 percent); $7.6 billion increase for pensions (448 percent).

_2005: $91 million increase for IDOT (2.5 percent); $465 million increase for ISBE (6.1 percent); $7 billion decrease for pensions (-76 percent).

_2006: $119 million increase for IDOT (3.2 percent); $259 million increase for ISBE (3.2 percent); $786 million decrease for pensions (-35 percent).

_2007: $770 million increase for IDOT (20.2 percent); $432 million increase for ISBE (5.2 percent); $437 million increase for pensions (30.5 percent).

_2008: $442 million decrease for IDOT (-9.6 percent); $543 million increase for ISBE (6.2 percent); $685 million increase for pensions (36.6 percent).

Combined total: $1.8 billion increase for IDOT (58 percent); $6.5 billion increase for ISBE (71 percent); $3.6 billion increase for pensions (176 percent).

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Doc: 00251332 DB: research_d_2008_2 Date: Sun May 25 12:13:25 2008

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Year-by-year look at solving Illinois' pension debt problem

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By The Associated Press

Illinois' pension debt has grown dramatically since the mid-1990s, even with a 50-year plan designed to increase the pension systems to 90 percent funded by 2045. Here is a closer look at the amount of money state government was supposed to put into the systems each year under the plan, according to Gov. Rod Blagojevich's administration:

_1996: $607.2 million state contribution; plans 52.3 percent funded

_1997: $718.7 million; 52.6 percent

_1998: $839.6 million; 52 percent

_1999: $970.4 million; 51.6 percent

_2000: $1.11 billion; 51.4 percent

_2001: $1.25 billion; 51 percent

_2002: $1.42 billion; 51.5 percent

_2003: $1.59 billion; 51.7 percent

_2004: $1.78 billion; 52.1 percent

_2005: $1.97 billion; 52.5 percent

_2006: $2.17 billion; 52.9 percent

_2007: $2.39 billion; 53.4 percent

_2008: $2.62 billion; 54 percent

_2009: $3.31 billion; 62.5 percent

_2010: $4.05 billion; 63.1 percent

_2011: $4.18 billion; 63.6 percent

_2012: $4.38 billion; 64.1 percent

_2013: $4.52 billion; 64.5 percent

_2014: $4.68 billion; 64.9 percent

_2015: $4.84 billion; 65.3 percent

_2016: $5.01 billion; 65.6 percent

_2017: $5.23 billion; 66 percent

_2018: $5.44 billion; 66.4 percent

_2019: $5.67 billion; 66.8 percent

_2020: $5.93 billion; 67.2 percent

_2021: $6.2 billion; 67.6 percent

_2022: $6.48 billion; 68 percent

_2023: $6.77 billion; 68.4 percent

_2024: $7.1 billion; 68.9 percent

_2025: $7.42 billion; 69.4 percent

_2026: $7.72 billion; 69.9 percent

_2027: $8.04 billion; 70.5 percent

_2028: $8.39 billion; 71.1 percent

_2029: $8.74 billion; 71.8 percent

_2030: $9.14 billion; 72.5 percent

_2031: $9.54 billion; 73.2 percent

_2032: $9.94 billion; 74 percent

_2033: $10.3 billion; 74.8 percent

_2034: $9.57 billion; 75.7 percent

_2035: $9.99 billion; 76.7 percent

_2036: $10.4 billion; 77.7 percent

_2037: $10.9 billion; 78.8 percent

_2038: $11.4 billion; 79.9 percent

_2039: $11.9 billion; 81.1 percent

_2040: $12.4 billion; 82.4 percent

_2041: $13 billion; 83.7 percent

_2042: $13.6 billion; 85.2 percent

_2043: $14.2 billion; 86.7 percent

_2044: $14.9 billion; 88.3 percent

_2045: $15.6 billion; 90 percent

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Doc: 00251347 DB: research_d_2008_2 Date: Sun May 25 12:18:05 2008

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Find out more about Illinois' pension woes

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By The Associated Press

Illinois' $42 billion pension debt problem is complex and many people have a stake. Some Web links to find out more about the issue:

_Gov. Rod Blagojevich's Office of Management and Budget has two links to reports on the issue: http://www.state.il.us/budget

_Illinois state government has five pension funds for state employees:

Teachers Retirement System: http://trs.illinois.gov

State Universities Retirement System: http://www.surs.com/homepage.surs

State Employees Retirement System: http://www.state.il.us/srs/SERS/home_sers.htm

Judges Retirement System: http://www.state.il.us/srs/Judges/home_jrs.htm

General Assembly Retirement System: http://www.state.il.us/srs/GARS/home_gars.htm

_The civic committee of the Commercial Club of Chicago released a detailed report in 2006 on state government finances and pension debt: http://www.civiccommittee.org/initiatives/StateFinance/FacingFacts.pdf

_The taxpayer watchdog group Center for Tax and Budget Accountability created the Illinois Retirement Security Initiative to spotlight the pension problem. For more, including a question-and-answer section: http://www.ctbaonline.org/Pensions.htm

_Several unions representing state employees regularly discuss the problem and how it affects their members on their Web sites:

AFSCME Council 31: http://www.afscme31.org

Illinois Education Association: http://www.ieanea.org

Illinois Federation of Teachers: http://www.ift-aft.org

_Comptroller Dan Hynes has an in-depth analysis of the pension debt problem: http://www.ioc.state.il.us/FiscalFocus/current/article.cfm?ID138

_The Commission on Government Forecasting and Accountability, an arm of the state Legislature, has a section of its Web site devoted to the pension problem: http://www.ilga.gov/commission/cgfa2006/Resource.aspx?id5

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Solutions for Illinois pension hole not easy to implement

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With BC-IL--Legislature & You-Pension Pain

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ Finding a possible solution for Illinois' massive pension debt problem isn't difficult. Tax increases, more borrowing, selling state assets, trimming future benefits _ all are on the table for discussion.

But seeing any of those become reality is a much bigger hurdle. None is easy to adopt.

Some polarize policymakers and advocates at their very mention. All are major undertakings because of the price paid _ either with taxpayers' money or state officials' political popularity.

In fact, about all they agree on now is that Illinois' pension debt can't be pushed off any longer.

"It's a lot easier to put the problem off on somebody else. You can't do that forever," said Eden Martin, who heads the civic committee of the Commercial Club of Chicago.

Avoidance has been a problem for years. Illinois' pension debt now tops $42 billion, more than doubling since 1995. The debt grows by nearly $5 billion a year because of interest and the cost of benefits earned.

The state is more than 10 years into a 50-year plan designed to steadily whittle away at the debt. But that means more money is needed each year to pay pension expenses, taking from the pot of tax money available for other needs such as education, health care and law enforcement.

So lawmakers and advocates say the debt has to be dealt with today. But how?

The Blagojevich administration backs borrowing $16 billion in lower-interest pension bonds, potentially saving the state $55 billion over the next few decades.

"Anything you pay off sooner is cheaper and better," said John Filan, Gov. Rod Blagojevich's top budget adviser. "We really have to make some sizable, significant decisions, and a pension bond will help an awful lot."

Others say an income tax increase would help solve the pension and other state money problems. And there's a push to switch from a pension system that guarantees employees certain benefits to one that promises the state will pay a certain contribution each year in a 401(k)-style setup.

All face a difficult road that could become a dead-end.

"What it's going to take is some tough decision-making," said Rep. Kurt Granberg, D-Carlyle. "Members have to stand up and say, 'We have to resolve this issue.'"

That's not a preferred path for many lawmakers, especially with top leaders fighting over more high-profile issues such as budget spending and priorities.

To some extent, the very nature of pension funding and its public interest is at fault.

Lawmakers know voters are tuned in to issues such as schools, roads and health care. But pension systems largely are in the shadows. They don't spur passionate debate that can lead to action, like with electric rate and medical malpractice insurance increases.

For years, lawmakers favored other needs rather than paying off the pension system debt and even now may not tackle the issue.

"It's the elephant in the living room, and we've grown very accustomed to ignoring the elephant," said Sen. Don Harmon, D-Oak Park.

Some argue the 50-year plan has Illinois on the right path to get most of its pension debt paid off over time, as long as lawmakers commit to fully funding the required payment each year.

"We think it will work," said Nick Yelverton, a legislative director for the Illinois Federation of Teachers. "The problem is providing the resources in order to make it work."

Each possible solution comes with a backlash.

Critics say another pension bond is foolish because new borrowing to pay off old debt only pushes the problem to future generations. An income tax increase is adamantly opposed by Blagojevich and many Republicans whose support is needed for it to become law.

Switching to a 401(k)-style retirement plan is harshly criticized by the politically powerful unions as unfair to employees and costly to the state.

"You can only cut back so much," said Cinda Klickna, secretary-treasurer for the Illinois Education Association and a Springfield high school English teacher. "We reach a point where there isn't enough money and you're going to have to deal with some of these other solutions. Cutting benefits isn't going to work."

So what could be done?

Legislators could continue to follow the 50-year plan, which calls for putting more than $3 billion in money into the funds this year. They could take another pension "holiday" as they did in 2006 and 2007 when they cut back the annual payments to cover other budget needs.

Or they could try to reach agreement on one or more of the options outlined above.

Some predict pension debt will continue to grow until Illinois leaders feel true pressure to turn it around.

"This problem's not sexy enough," said Ralph Martire of the taxpayer watchdog Center for Tax and Budget Accountability. "We're at a pretty horrible place, and we need to fix it."

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Ways to deal with Illinois' huge pension debt problem

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With BC-IL--Legislature & You-Pension Pain-Solutions

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By RYAN KEITH

Associated Press Writer

SPRINGFIELD, Ill. (AP) _ Illinois has the nation's worst pension debt problem, and everyone involved agrees a solution is needed now.

But there are myriad ways to deal with it and no easy choices. A look at the pros and cons of the most-talked about ideas:

1. PENSION BOND: Under this plan pushed by Gov. Rod Blagojevich, the state would borrow $16 billion in lower-interest debt and pump the money into the pension systems.

PROS: The administration says the state could save $55 billion over the next 33 years by essentially trading the 8.5 percent interest pension debt for lower interest debt. This would lower the massive $42 billion debt and make the systems 75 percent funded, providing retirees more certainty about the future.

The state made the same move in 2003, borrowing $10 billion and bringing the systems from 48 percent to 61 percent funded. Blagojevich officials say market conditions are right for another pension bond.

"Something's got to be done," said John Filan, Blagojevich's top budget adviser. "The current situation is just not tolerable."

CONS: Critics, including business groups and Republicans, say borrowing to pay off old debt, even if it's at a lower interest rate, isn't wise. It just puts off the problem.

They say there's also too much risk in a pension bond. It only works if the invested proceeds from the bond get a better return than the interest rate on the amount borrowed, which could be 5 percent a year. In a shaky stock market, critics warn, nothing is guaranteed and the state's pension debt could get even worse.

"This is a craps game, and you shouldn't operate the state's finances based on taking those kinds of risks," said Eden Martin of the civic committee of the Commercial Club of Chicago.

2. INCOME TAX INCREASE: Under this idea backed by some Democratic lawmakers, the state would raise its income tax rate by a couple of percentage points to raise several billion dollars to spend on needs, including paying down pension debt.

PROS: Backers, including some state employee unions, say the pension debt and other budget problems were caused because Illinois simply didn't have enough revenue to cover its bills for many years.

Raising the income tax would bring in enough cash to significantly pay down the pension debt, allowing lawmakers to possibly restructure yearly pension payments and free up cash for more school funding, paying off health care bills and making other needed improvements. Illinois' income tax is low compared to other states, they argue, and citizens would support an increase if the proceeds went to the right priorities.

"We've got to do all those things, and we've got the capacity to do it," said Ralph Martire of the taxpayer watchdog Center on Tax and Budget Accountability.

CONS: A big obstacle is Blagojevich, who has repeatedly vowed to veto any general income or sales tax increase because it's unfair to working people.

Other opponents include Republican lawmakers who argue the state's tax burden is already too high, and raising taxes in a slow economy is foolish. They fear the extra money will go to create new state obligations rather than paying off existing ones.

3. NEW BENEFIT SYSTEM: Under this plan backed by business groups and Republicans, Illinois would switch to a 401(k)-style retirement program that requires the state to pay a defined contribution each year rather than providing employees set benefits.

PROS: Advocates say it would be cheaper to run in the long run because benefit packages could be slimmer. It would ensure the state pays its share of retirement costs each year and give employees more say over their invested money. It would also provide more flexibility for universities to attract out-of-state professors and for employees to take their pensions with them if they leave state employment.

"People get really afraid when you talk about a defined contribution system, but they really shouldn't be," said Sen. Bill Brady, R-Bloomington. "I can't see frankly a downside to it if you do it right."

CONS: Critics, led by teacher and state employee unions, say a contribution system would be more expensive because the state would have two tiers _ one for current employees and retirees in the existing system and a new system for new hires.

They contend employees would get worse benefits and would be more vulnerable to poor investment performance. They say it could hurt recruiting into state employment and would do nothing to reduce the current $42 billion debt.

"I just think we're putting people in jeopardy and our economy at stake," said Cinda Klickna, secretary-treasurer of the Illinois Education Association.

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History of Illinois state pension system woes

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By The Associated Press

Illinois' pension debt problem is the nation's worst when accounting for both the money owed and how underfunded the systems are. Here is a look back at how the pension problem developed, according to information reviewed by The Associated Press:

_1950: An actuary for the Teachers Retirement System warns that state contributions "are far from adequate to meet the current requirements of the system" and the system's funding is "unsound." At the time, TRS has only 23 percent of the funding needed to cover benefits earned.

_1970s: For many years, the amount the state pays into the five pension systems is based on 100 percent of what those systems are expected to pay out each year in benefits. But the debt grows because the funding does nothing to address the much higher costs of benefits being earned by employees each year.

_1982-1988: State contributions to the pension systems drop to an average of 60 percent of retiree benefits being paid out each year. That setup is ultimately dropped, and a flat payment is made each year into the systems.

_1989: Lawmakers approve a 40-year payment plan to have the pensions fully funded, with a seven-year phase-in period. But state law doesn't require set payments each year and the funding guidelines are never met.

_1995: Gov. Jim Edgar and lawmakers agree on a 50-year plan to get the pensions up to 90 percent funded by 2045. The plan requires the state to put in a certain amount of money each year and ramps up funding so each year more is required in state payments. Initial payments are smaller, requiring larger increases in later years.

_2003: A downturn in pension systems investments puts the funds at just 48 percent funded, with a $43 billion debt. New Gov. Rod Blagojevich and lawmakers agree to borrow $10 billion in pension bonds, using most of that to pay down pension debt and get the systems to 61 percent funded. Some of the cash is used to pay other state bills.

_2005: Governor pushes for lawmakers to adopt a host of pension reforms recommended by a commission of experts and lawmakers that would lower future pension costs for new state employees. Lawmakers approve some of the changes, saving the state tens of billions of dollars in the long-term. Others, such as raising the retirement age and service requirements, are left on the negotiating table.

_2006-2007: Blagojevich and fellow Democrats in the Legislature agree to cut pension payments by more than $2 billion over two years to help pay other budget needs. The move forces the state to increase more if its payments over the next several years to get back on the 50-year payment track.

_2008: The pension debt stands at $42 billion, and the systems combined are about 63 percent funded. That combination gives Illinois the worst pension funding problem in the nation, according to an Associated Press analysis of national data. The debt grows by $3.6 billion in interest alone each year.