May 13, 2014
The Civic Federation opposes Governor Pat Quinn’s recommended budget for FY2015 because it uses revenue from extending the 2011 temporary income tax increase for new spending. The State’s fiscal crisis demands that any increased revenue be used to stabilize State finances by significantly reducing its massive backlog of unpaid bills.
The Civic Federation is encouraged that the recommended budget recognizes the State cannot withstand a $1.8 billion reduction in revenues next year due to the scheduled partial rollback of the temporary income tax rates, and addresses this fiscal cliff by extending the higher tax rates. However, new spending initiatives are contradictory to the State’s fiscal reality, especially those financed by borrowing. The additional spending in this budget would require the State to borrow money to balance the operating budget, even after extending the higher income tax rates.
In its recent State budget roadmap for FY2015, the Federation recommended that the 2011 tax rate increases be extended for one year and then scaled back by 20% over the following three years.
Illinois' Fiscal Year begins July 1, 2014 and ends June 30, 2015.