State Rep. Jennifer Gong-Gershowitz (D-Glenview) supports a bill that would consolidate pension funds to provide middle-class families property tax relief, according to a press release.

Local governments pay fees for the management of police and fire departments, which inflates property taxes for families and seniors, Gong-Gershowitz said. Senate Bill 1300, which cleared the Illinois House on Wednesday and was sent to the Senate, would reduce 650 local police and fire pension funds into two systems, one for police and one for fire.

“By consolidating hundreds of funds, Illinois can reduce the costs of government operations, increase buying power, and ultimately use tax dollars more judiciously,” Gong-Gershowitz said.

Currently, local governments must pay consultants and financial advisors to manage each of the 650 pension funds. Homeowners are burdened with covering these costs through their property taxes.

Combining the assets and management of these funds could reduce the costs of their administration and management, leading to property tax relief as well as greater returns on investment, according to the press release. Over the next 20 years, consolidation is estimated to generate between $3.6 billion and $12.7 billion in investment returns.

“Stabilizing our state’s financial footing is critical to empowering taxpayers and strengthening the economy,” Gong-Gershowitz said. “Our families expect their dollars to be used in the wisest, most efficient manner and this bill is a step towards doing so while putting downward pressure on property taxes over the long-term.”

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