New Teacher Pension Payments Passed To Districts

gerri.songer's picture

Thanks to a new state pension law, school districts will now have to pay their pensions. But Rauner's amendatory veto cut the part of SB 1 that would've recognized those pension payments as part of a school's cost of doing business.

Under the new formula, that’s known as the “adequacy target.” It’s calculated for each school district based on student demographics and other needs. The amount of new state dollars each district receives would be based on how capable it is of meeting its adequacy target. So shifting pension costs to districts, and then not counting those costs in their adequacy targets, would impact the amount of state aid a district gets.

"So the AV language, eliminating any of the reference to normal cost in the adequacy target, means that those are costs the district is going to have on all new teachers that will never show in their adequacy target."

The Senate is scheduled to vote on school funding on Sunday. The House will take the matter up the following Wednesday.