As previously discussed here, the enacted FY2015 budget for the State of Illinois includes several budgetary gimmicks intended to make up for the loss of revenues associated with the expiration of the temporary income tax increases halfway through the fiscal year. Two of these measures include shifting funds to pay for FY2015 General Funds expenses, which masks the growth in spending when comparing total operating costs for FY2015 and FY2014. An analysis of the FY2015 enacted budget…
Whether the State of Illinois has spent more or less on education in the last five years has recently been the subject of intense debate. This blog post examines various factors that affect the calculation of education spending trends and expands on the Civic Federation’s recent report on the State’s enacted budget for FY2015. The Illinois State Board of Education provides resources for elementary and secondary education based on appropriations from the Illinois General Assembly. The following…
Municipal bankruptcies are very rare but a spate of filings, including the largest municipal bankruptcy in U.S. history by the City of Detroit, and ongoing municipal budgetary stress around the country has led to discussions of what, if anything, states should do to assist distressed cities. This blog will provide an overview of current state statutes that govern fiscally stressed municipalities and other units of local government in Illinois. The Civic Federation has previously written…
This analysis finds that the State of Illinois' FY2015 enacted budget represents a return to unsustainable fiscal practices including borrowing for operations and underfunding known costs. This spending plan will increase Illinois’ backlog of unpaid bills to $6.4 billion at the end of FY2015, the first year-end increase since FY2012. Additionally, the budget fails to fund nearly $500 million in known expenses, including payroll, which will require either a supplemental appropriation in FY2015…
In the past few months, it has become evident that Illinois vastly underestimated the number of newly eligible recipients who would sign up for Medicaid under the Affordable Care Act. However, the fiscal implications of the unexpectedly strong enrollment remain unclear. Governor Pat Quinn said on September 30, 2014 that 468,000 newly eligible individuals had enrolled in Illinois’ Medicaid program. The Governor made the announcement at an event marking the one-year anniversary on October 1 of…
As recently as 2011, the State of Illinois projected its backlog of unpaid income tax refunds could increase to more than $1.0 billion but by the end of FY2014 nearly all refunds were paid. In FY2015, for the second year in a row, the State transferred revenues originally diverted to pay for refunds back into the operating budget. In FY2014 the State ended the year with only $1.6 million in approved refunds yet to be paid compared to a peak of $735 million in FY2010. The State also received a…
A new law that restores certain Medicaid benefits previously cut due to budget pressures also adds a new service: kidney transplants for undocumented Illinois residents. Public Act 98-0651, signed by Governor Pat Quinn on June 16, 2014, authorizes State funding of kidney transplants for low-income non-citizens beginning on October 1. Recipients must have end-stage renal disease and already be receiving renal dialysis services covered by Medicaid. Immigrants’ rights experts said Illinois might…
Despite its name, a social impact bond (SIB) is not a debt instrument and does not require a government to issue debt. Rather, an SIB is a social impact financing arrangement whereby funds are raised from private sector investors to provide social service agencies the funding necessary to deliver their services. The government enters into a contract with a private sector entity working as an intermediary and the private sector entity’s chosen social service providers. The private sector…
The Civic Federation and the Motorola Solutions Foundation issued a call for nominations this week for the 23rd Annual Motorola Solutions Foundation Excellence in Public Service Award. The award seeks to honor individuals whose exemplary management, leadership, and innovation has led to lasting achievements and more effective government in Illinois. Individuals eligible for nomination are currently serving as non-elected state or local government officials in Illinois, including department…
Information included in recent bond disclosures by the State of Illinois indicate that the pension obligation bonds (POBs) sold in 2003 primarily to boost the retirement systems’ assets have earned the minimum investment returns needed to break even in only seven of the last ten years. The $10 billion pension bond issuance will cost the State a total of $11.9 billion in interest repaid through FY2033. This amounts to a total interest cost of 5.05%. According to the bond document, any…
