Illinois school districts devoted more than 21% of employee-related spending to pension contributions in 2023, the second-highest burden in the country, according to a national database published Saturday, July 12. For North Shore families already facing a 39% township reassessment, the data quantifies a growing squeeze: pension costs consumed more than all new money flowing into classrooms statewide over the past eight years.
The U.S. School Employee Atlas, compiled by Hoover Institution researchers Gregory Kearney and Joshua Rauh, who have advocated for pension reform, tracks contributions across roughly 12,800 districts from 2015 to 2023. In that span, Illinois's pension share rose more than five percentage points, from 15.3% to above 21%. Adjusted for inflation, pension contributions statewide grew by $1.9 billion while total education spending rose only $1.3 billion.
Kearney and Rauh estimate that if the pension share had stayed at 2015 levels, Illinois districts would have had an additional $1.72 billion available in 2023 for teachers, classroom resources, and support staff.
Local tax pressure
North Shore families will feel the other side of the equation when Cook County mails second-installment property tax bills in September 2026, due in early October. Cook County Assessor Fritz Kaegi released New Trier Township reassessment figures in April 2025 showing total assessed value grew 39%, reflecting three years of market gains across Winnetka, Wilmette, Kenilworth, Glencoe, and portions of Northfield and Glenview.
New Trier Township High School District 203 is 91% funded by local property taxes, with a tax base of nearly $1.9 million per pupil, according to a Capitol News Illinois analysis published July 8. That enormous local investment still passes through a pension system that claims a growing share before classroom spending begins.
Winnetka Public Schools District 36, which serves 1,743 students at Crow Island, Greeley, Hubbard Woods, and Washburne, noted in its fiscal year 2024 financial report that it "continues to have concerns regarding the movement of unfunded pension costs to District taxpayers."
What it means for newer teachers
The pension squeeze hits younger educators hardest. Illinois's 2011 Tier II reform moved new hires onto a leaner plan, but those teachers pay the same 9% contribution rate as their Tier I predecessors while receiving substantially lower benefits. Their pensions fall short of the federal "safe harbor" standard that keeps Illinois teachers out of Social Security, leaving newer teachers across all six North Shore districts without either form of retirement protection.
Kearney and Rauh estimate that under market-based Treasury yield assumptions, required annual contributions would need to rise from roughly $7 billion to more than $15.7 billion, pushing pension costs to nearly 37% of covered employee spending. Illinois's own actuaries use a higher assumed rate of return, which produces lower required-contribution estimates; the Hoover researchers argue that method understates the true liability.
No pending state legislation addresses the structural gap. The Illinois Constitution's pension protection clause, upheld by the state Supreme Court in 2015, bars benefit reductions for current members.
What's next
New Trier District 203's Board of Education is scheduled to present a 15-year facilities plan on Monday, July 13, at the Northfield campus (7 Happ Road). None of the six North Shore districts has issued a public statement on how pension cost growth will factor into long-term spending plans. Families can search district-level pension data at schoolpensionatlas.org or request budget documents through each district's FOIA officer.
North Shore schools week ahead
- Monday, July 13 — New Trier District 203 Board of Education meeting, Northfield campus, 7 Happ Road. 15-year facilities plan presentation and May 2026 financial reports.
- Monday, July 20 — Cook County bridge loan applications open for school districts affected by tax-billing delays. Districts can apply for no-interest loans from a $300 million county fund.
- Monday, August 24 — Wilmette District 39 Board of Education meeting, Mikaelian Education Center, 615 Locust Road, Wilmette. First meeting of the 2026-27 schedule.
