West Cook News

Sheila Weinberg, Founder and CEO of Truth in Accounting, criticized Illinois' pension funding plan as unrealistic, referencing SEC fraud charges from 2013. Her remarks were made on the Prairie State Wire Podcast.

"This schedule is so unreliable and so unrealistic that an SEC official said it was a balloon payment on steroids," said Weinberg, Founder CEO. "And I mention an SEC official because the SEC in 2013 charged the state with securities fraud. They're saying in their bond offering that this plan is going to fully fund the pensions."

Illinois’ pension funding schedules have been a source of significant controversy due to decades of underfunding and backloaded contributions, such as the "Edgar ramp," which have resulted in taxpayers shouldering an increasing debt burden. According to the Associated Press, practices like pension holidays and skipped payments have led to structural shortfalls that now consume a substantial portion of state revenues. Recent reforms, including the consolidation of local systems, have faced lawsuits and criticism for shifting costs onto taxpayers while failing to address the core issue.

The state's five pension systems currently hold approximately $257 billion in liabilities against only $115 billion in assets, leaving unfunded obligations around $142 billion. The Center for Tax and Budget Accountability reports this results in a funded ratio of about 45 percent, significantly below sustainable levels. Analysts highlight that this ongoing gap continues to strain the state budget and restrict spending on other priorities.

Illinois’ pension funded ratio is among the lowest nationwide at about 45 percent, compared with a national average nearing 80 percent. The Equable Institute notes that peer states maintain much stronger ratios, typically ranging from 60 to 80 percent. This stark disparity underscores Illinois’ unique fiscal challenges and the risks its pension debt poses to long-term budget stability.

Weinberg is also known for her work with Truth in Accounting, a nonprofit she founded in 2002 aimed at enhancing government financial transparency. Her biography at the University of Denver’s Daniels College of Business details her experience testifying before accounting boards, authoring studies like "The Truth About Balanced Budgets," and leading reports such as "The Financial State of the States." Weinberg earned her CPA designation in 1981 after completing her accounting degree at the University of Denver.