IL Audit: State Pensions Underfunded by Almost 40%

Not only that, but the amount the state needs to plug into its pension plans continues to mushroom by billions of dollars each year – with more than $2 billion being added to the total last year, Holland reported, according to a news report in the   Bloomington Pantagraph.

In itsannual review of the state’s five pension systems, auditors put the state’s unfunded pension liability at $40.7 billion.

In his latest budget proposal, Governor Rod Blagojevich wants to cut that amount to $15 billion by leasing the state lottery and selling bonds. He says his plan will bring in $26 billion and increase the pension system’s funding level from the current 60% to 83%.

Blagojevich’s budget office said the audit shows that pension reforms imposed over the past four years are helping improve the underfunding problem. “This is a strong indication that we’re moving in the right direction,” said spokesman Justin DeJong, according to the news report.

The Holland audit reports are   here .