Citing reliance on one-time revenue sources, such as borrowing, to try and close its FY2011 operating shortfall, Moody’s Investors Service announced last week that it was downgrading its outlook on the State of Illinois’ $25 billion of outstanding General Obligation Bonds (GO Bonds) from stable to negative. The negative outlook is a warning from the rating agency that if significant steps…
The State of Illinois will receive less federal Medicaid funding than it budgeted for in FY2011—but more than had been feared several months ago. After months of debate, Congress in August of 2010 passed and President Obama signed a bill extending enhanced Medicaid payments that were contained in the American Recovery and Reinvestment Act of 2009. The enhanced payments, which began in…
The Civic Federation often voices concerns when governments use one-time or nonrecurring revenue sources for ongoing expenses. There are a number of reasons this can be problematic. By definition such revenue sources will not be available in the future so if the government utilizes nonrecurring revenues for operations, they are ensuring future fiscal challenges. The practice allows…
Only two months into the new fiscal year, the State of Illinois has already begun pushing FY2011 operating costs into the next fiscal year. By borrowing cash on hand in the State’s special funds, rather than sweeping it, the State has passed on more than $70 million in current operating cost to FY2012. As previously discussed on this blog, the State plans to borrow nearly $1 billion from…
Over the past two weeks the Civic Federation blogged here and here about the Metropolitan Water Reclamation District’s reaction to its estimated $24 million budget deficit. Specifically, we outlined Executive Director Richard Lanyon’s proposals to reduce this deficit, in part, by making changes to employee and retiree health benefits. Mr. Lanyon presented his cost-cutting plan to the…
This news segment is about how some states are coping with severe budgetary troubles in the current recessed economy. In a discussion of the State of Illinois, Civic Federation President Laurence Msall says Illinois’ fiscal troubles are not just the result of the bad economy, but also the State’s inability to produce a balanced budget and reduce its spending in the face of revenue declines. Mr.…
This opinion piece explores the effect that the State of Illinois’ fiscal crisis is having on the community of Oak Park. The Civic Federation says the State’s problems are likely to become worse and that deeper pension program reforms are needed.
In this editorial about how the State of Illinois should address its pension funding issues, the Civic Federation says that if the State borrows more money, it risks further downgrades to its bond ratings and higher interest rates.
This editorial about the State of Illinois’ fiscal woes discusses findings in the Civic Federation’s “Cost of the Crisis” report.
Bill Cameron interviews Civic Federation President Laurence Msall about findings in the Federation’s “Cost of the Crisis” report.
