IIFS Blog
07.29.10
Civic Federation’s Illinois Rehab Plan Wins National Award
On Tuesday in New York City, the Governmental Research Association recognized the Civic Federation’s Institute for Illinois’ Fiscal Sustainability with its Most Distinguished Research Award for the Institute’s “A Fiscal Rehabilitation Plan for the State of Illinois....
07.22.10
Sales Tax Holiday Could Prove Complicated
Despite a $2 billion drop in the State’s annual revenues in FY2010 , the General Assembly passed Governor Pat Quinn's proposal to provide a back-to-school sales tax holiday for Illinois consumers as part of the FY2011 budget. The State charges a composite rate of 6.25% on consumer purchases...
07.14.10
Unbalanced State Budget Triggered Downgrades
Almost immediately after the Illinois General Assembly approved an unbalanced budget for FY2011, two of the three major rating agencies downgraded the state’s debt ratings. It was the fifth time in the last 18 months that Illinois has seen its ratings reduced by Fitch and the third reduction...
07.01.10
Governor Announces Cuts, But FY2011 Budget Remains Unbalanced
On July 1, 2010—the first day of the State of Illinois’ FY2011 fiscal year—Governor Pat Quinn said that his budget for the new year will contain major spending cuts. However, most of the reductions have yet to be determined and the FY2011 budget continues to be unbalanced, with an...
06.22.10
Pension Holiday in FY2011 Estimated to Cost $12.5 Billion
The State of Illinois has yet to determine how it will handle its required pension contributions for FY2011. However, a recent analysis by the Commission on Government Forecasting and Accountability (COGFA) estimates that skipping the $3.5 billion payment entirely would cost the State $12.5...
06.17.10
States Punt on Tax Increases for FY2011
The State of Illinois is not the only cash-strapped state that shied away from major tax increases to improve its financial condition in FY2011. According to Stateline.org, most states avoided raising significant revenue and instead patched together FY2011 budgets by finding a few new items to tax...
06.07.10
States Worry Medicaid Stimulus to End, Adding to Budget Woes
Illinois and many other states drafted budget plans for FY2011 based on the assumption that Congress would extend the expiration date for enhanced federal Medicaid funding by six months—from December 31, 2010 to June 30, 2011. Now that assumption is looking increasingly shaky, adding to...
06.04.10
Large Gap Remains in FY2011 State Budget
Before adjourning for a second time this session on May 28, 2010, the Illinois General Assembly sent a series of budget bills for FY2011 to the Governor. Both houses passed $26.0 billion in appropriations, emergency budget powers for the Governor, several one-time revenue sources and some borrowing...
05.24.10
Illinois Lawmakers Propose $1.3 Billion in State Budget Cuts
As the General Assembly nears the final days of this year’s regular session with no FY2011 budget in sight, a group of lawmakers is attempting to advance the negotiations by proposing a $1.3 billion package of spending reductions and savings. The proposal by ten Democrats on May 24, 2010...
05.20.10
Update on Governor’s Proposal to Reduce State’s Costs for Retiree Healthcare
Governor Pat Quinn and his Department of Healthcare and Family Services (HFS) appear to have different estimates of how much the State would save under the Governor’s proposal to require all state retirees to pay a share of their health insurance premiums. In announcing the Governor’s...