On Thursday, August 31, 2017, Governor Rauner signed Senate Bill
1947 into law. The bill was passed earlier this week by both the
Illinois House and Illinois Senate. This legislation makes
changes to Illinois’ school funding formula, and requires the
State to pay the long-sought normal cost of Chicago teachers’
pensions.

CTPF Impact

The legislation has three main components which impact CTPF:

1. Beginning with the 2017 tax year, the City of Chicago’s Board
   of Education may impose a dedicated property tax levy of up to
   0.567% (the current property tax levy rate is capped at 0.383%).
   This increase, if implemented, will generate additional revenue
   which will go directly to the Fund.
2. Starting this fiscal year (July 1, 2017-June 30, 2018), the
   State will pay CTPF the normal cost of Chicago teachers’ pensions
   and retiree health insurance costs. Beginning in Fiscal Year
   2019, CTPF will provide a certified normal cost to the State on
   an annual basis which will include the $65 million authorized for
   the retiree health insurance subsidy.
3. The legislation also provides a continuing appropriation for
   all amounts contributed by the State to CTPF.

“This legislation offers stable and equitable State funding for
CTPF and provides Chicago’s Board of Education with additional
resources. We appreciate the hard work and cooperation that made
this possible,” said Charles A. Burbridge, CTPF Executive
Director. “The State has paid the normal cost of
downstate/suburban teacher pensions, and this legislation ensures
that teachers are treated equitably throughout the State. We want
to thank our members who have spent more than a decade educating
legislators about the importance of fully funding pensions and,
as a result, education in Illinois.”