Since Illinois passed its budget for the current fiscal year, many questions have been raised about the $445 million in savings expected from enacted pension changes. What is the basis for the savings estimate and how accurate is it likely to be? The assumed reductions in State pension contributions are the result of three provisions in the FY2019 budget legislation. The most important is a voluntary buyout plan that offers certain employees who are about to retire upfront cash payments—in…
This article examines Illinois' financial state one year after the end of the two-year budget impasse. The article points out that while the State of Illinois recently enacted its second full-year budget since the end of the impasse, the State's $6 billion backlog of bills and $130 billion in unfunded pension liabilities continue to burden its finances. Civic Federation President Laurence Msall noted that interest paid on the $6 billion the State borrowed to pay down its backlog of…
(CHICAGO) In an analysis released today, the Civic Federation announced its support of the City Colleges of Chicago’s proposed FY2019 operating budget. The $436.1 million budget is a prudent plan to continue to stabilize the District’s finances following the second full year of State funding since fiscal year 2015. The full report is available here. As detailed in the report, the District will modestly increase its property tax levy and reinstitute a per-credit hour based tuition…
Click here to read the full report. The Civic Federation supports the City Colleges of Chicago’s proposed FY2019 operating budget. The $436.1 million budget is a prudent plan to continue to stabilize the District’s finances following the second full year of State funding since fiscal year 2015. As detailed in the report, the District will modestly increase its property tax levy and reinstitute a per-credit hour based tuition structure for part-time students while maintaining a flat-rate…
Illinois Governor Bruce Rauner presented his FY2019 State budget proposal in February for the State fiscal year beginning on July 1, 2018. As discussed in an earlier blog post, the proposal included measures that would have affected local governments including municipalities, counties and transit agencies. The State of Illinois FY2019 enacted budget was passed by the Illinois General Assembly on May 31 and signed by Governor Rauner on June 4. This blog post provides an update on two of the…
After three years of political gridlock and missed deadlines, the Illinois General Assembly passed a budget for the coming fiscal year on the last day of its regular spring session. Governor Bruce Rauner promptly signed the budget amid bipartisan celebration. Although the $38.5 billion budget for fiscal year 2019 is roughly balanced on paper, concerns persist about whether the revenue and spending estimates are realistic. The budget assumes savings of $382 million from a new pension buyout…
This article discusses Civic Federation recommendations from the FY2019 State of Illinois Budget Roadmap to expand the Illinois income tax to include federally-taxable retirement income and broaden the sales tax base to a number of services. The article points out that neighboring states also tax retirement income and services. Civic Federation President Laurence Msall said that tax increases should not be taken lightly and must come within the framework of a comprehensive budget with spending…
When will Illinois have a budget for Fiscal Year 2019? The issue is of intense concern because of the State’s recent history: full budgets for FY2016 and FY2017 were never enacted, while the General Assembly enacted a budget for FY2018 over Governor Rauner’s veto six days into the fiscal year. Another long-term budget standoff between the legislature and Governor would undoubtedly be disastrous for the State. The question of whether it can be avoided looms as the State nears a technical…
The following news items cover the release of the Institute for Illinois' Fiscal Sustainability at the Civic Federation's analysis of the State of Illinois FY2019 Recommended Operating Budget. The Federation could not support Governor Bruce Rauner’s recommended budget because it is precariously balanced and its modest surplus relies on aggressive assumptions. Additionally, the proposal does little to address Illinois’ massive backlog of bills. ----- Chicago Sun-Times: Civic…
(CHICAGO) – In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability announced it cannot support Illinois Governor Bruce Rauner’s recommended budget for FY2019 because it is precariously balanced and its modest surplus relies on aggressive assumptions. Additionally, the proposal does little to address Illinois’ massive backlog of bills. The Institute’s full report is available here. The State of Illinois’ financial condition is significantly improved…
