(Bloomberg) -- The Illinois Supreme Court rejected the state’s solution for its worst-in-the-U.S. $111 billion pension- funding shortfall, throwing into doubt how its financial crisis will be resolved.
The dispute was being watched around the country as state and local governments grapple with total pension deficits that exceeded more than $2 trillion, according to a Moody’s Investors Service report last year. Closing that gap in many states conflicts with union contracts and even constitutional pension guarantees for public employees.
A lawyer for New Jersey Gov. Chris Christie was sharply questioned by that state’s highest court this week when he argued for a law to rein in public-employee pension costs he called “unsustainable.”
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