The massive unfunded Illinois pension obligation has made reducing the state's costs a priority for years.
An overhaul of retirement benefits for state employees, public school teachers and university workers has been the subject of talks between state leaders in recent months.
Gov. Bruce Rauner said as much Wednesday, but he sounded uncertain as to what will come of it.
The state Supreme Court has ruled that a previous law cutting pension benefits was unconstitutional.
Now there's an extra incentive for lawmakers from Chicago to find a solution, because Chicago Public Schools has approved a budget which relies on some $215 million in the stopgap spending plan legislators passed in June.
The money would be to pay for part of the CPS pension costs -- similar to what Illinois does for every other district.
The state’s largest school district will receive that money only if lawmakers and the governor pass legislation to reduce Illinois pension costs by reducing future benefits for current state employees, public school teachers and university workers.
Rauner says there is an agreement on what sort of changes would be legal.
"We've agreed on what's constitutional to try to change it,” he said. “Now it's just getting the political will that I hope the General Assembly will show to pass true, good pension reform."
A previous, loosely agreed-to plan called for giving public workers a choice: Agree to a lesser pension package, or forgo earning retirement benefits on a future pay raises.
The governor said that, while progress has been made, it hasn't been enough.
"Could I sit here today and say absolutely, for sure, we're going to get that pension reform agreement worked out in the next few months?” Rauner asked. “Well I'm going to try my darndest, because I can to try to change our pensions. But you know, who knows?"
Asked if he sees any reason a deal won't go through, he chuckled: "This is Illinois."
Rauner's comments came as his administration warns there's a potential the state's pension costs will soar if the Teachers Retirement System lowers its assumptions for how much it will make on its investments. Rauner's office says that would devastate the state budget.
