Gov. Rauner suggests bankruptcy for towns to fight pension woes

Gov. Bruce Rauner wants to give cities, towns and counties the authority to file for bankruptcy protection, a move that could give local governments a stronger foothold when negotiating with local police and fire officials over costly pension obligations.

The governor made no mention of the idea during his State of the State speech Wednesday, instead burying the concept in a list of talking points the administration distributed to lawmakers. Rauner aides would not elaborate on how it might work.

But the single sentence calling for the state to “extend to municipalities bankruptcy protections to help turn around struggling communities” mirrors a proposed law introduced last month by state Rep. Ron Sandack, R-Downers Grove…Please click here to read Kim Geiger, Hal Dardick and Joe Mahr’s story in the Tribune.