Court Pension Smackdown Toughens Job for U.S. Governors, Mayors
Bruce Rauner, governor of Illinois, left, delivers a budget address in the House Chamber of the State Capitol building in Springfield, Illinois, U.S., on Wednesday, Feb. 18, 2015.
Photographer: Daniel Acker/BloombergThe Illinois Supreme Court’s rejection Friday of a measure meant to make the state’s pensions solvent is the most powerful reminder yet that it’s a brutal time to be the chief executive of a fiscally challenged city or state.
The court’s ruling that the state constitution bans any reduction in worker retirement benefits was the latest victory for an American labor movement that’s otherwise been on a long losing streak. It signals that governors and mayors, Republicans and Democrats alike, may be unable to avoid the politically unpalatable choice of tax increases or service cuts.