Pensions top story

Crundwell crime in Dixon makes No. 8 on the AP’s hit list

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Rita Crundwell, accompanied by her attorneys, arrives at Federal Court in Rockford before a hearing. Crundwell, the former comptroller of Dixon, pleaded guilty to allegations she embezzled more than $50 million from Dixon to fund a lavish lifestyle that included a nationally known horse-breeding operation. Crundwell’s crime was voted the eighth most important news story in the AP’s annual survey of its Illinois member editors and staff. (SVM file photo)
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CHAMPAIGN – For the first time in 4 years, former Gov. Rod Blagojevich and his corruption saga were not the most important news story in Illinois in 2012.

The imprisoned governor was displaced at the top of an annual, year-end Associated Press survey by a long-festering problem that leapt to the top of the state’s agenda, if not public awareness, after barely being mentioned in prior years: The state’s $96 billion gap in funding its employees’ pensions, and lawmakers’ failure to deal with it.

The state’s financial problems make several appearances in the Top 10 Story survey of AP-Illinois members and staff, but interspersed with stories of success (President Barack Obama’s re-election, No. 4), tragedy (the deadly Harrisburg tornado, No. 7) and disgrace (the $50 million embezzlement case of former Dixon comptroller Rita Crundwell, No. 8).

Blagojevich needn’t feel left out though. His March trip to federal prison in Colorado still checked in at No. 3. The region’s drought was No. 2.

The pension crisis was not mentioned at all in last year’s survey and only as part of the state’s larger financial challenges 2 years ago. This year, however, it was the focus of intense negotiations toward a solution that broke down at the last minute during the spring legislative session. A later special session called by Gov. Pat Quinn went nowhere.

Meanwhile, hundreds of state workers, from park rangers to college professors, were taking early retirement, fearing the pensions might be reduced if they waited. Credit-rating agencies expressed diminishing faith in Illinois as a credit risk or a business partner.

Other symptoms of the state’s sorry financial situation scored high in the survey. They included, at No. 5, Quinn’s plans to close 14 prisons and mental health facilities. The idea drew legal challenges from unions, who argued that it would cost valuable jobs and make the state’s overcrowded prisons more dangerous. A state Supreme Court decision cleared the way for at least some of Quinn’s closure plan, which will be carried out in the coming weeks.

Close behind, at No. 6, was a deal between Quinn and legislators last spring on a complex, $2.7 billion package of reforms to shore up Medicaid, which the governor said would save it from collapse. The high price included leaner services going forward from the state’s health care program for the poor and disabled.

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