Largely due to the income tax increase that took effect in January 2011, the State of Illinois’ operating deficit is expected to shrink from $3.9 billion in FY2011 to $454 million in FY2012. However, as previously discussed here, FY2012 costs are understated because appropriations do not cover the full cost of the Medicaid program. The operating budget underfunds projected Medicaid costs by as much as $1.7 billion. In addition, revenues are higher because the State plans to divert less revenue…
Two months after the start of the State of Illinois’ 2012 fiscal year on July 1, 2011, Governor Pat Quinn has proposed the closure of seven state facilities and the layoff of more than 1,900 employees in order to cope with a funding shortfall for certain agencies in the budget passed by the General Assembly. At a press conference on September 8, 2011, the Governor said he plans to close a prison, a juvenile boot camp, three mental health institutions and two institutions for the developmentally…
This article discusses the Civic Federation’s analysis of Chicago Public Schools’ FY2012 budget proposal. The Civic Federation supports the proposal, albeit with concerns over the long-term health of the District’s finances.
In this news segment about a possible lengthening of the school day at Chicago Public Schools, Civic Federation President Laurence Msall says he is impressed that CPS found the funds to offer teachers a 2% pay increase in exchange for lengthening the school day given its overall precarious fiscal condition.
This story discusses plans by Chicago Police Superintendent Garry McCarthy to cut police vacancies to help the City of Chicago with its budgetary problems. The Civic Federation applauds the proposal, which follows recommendations made by the Federation in its “Recommendations for a Financially Sustainable City of Chicago” report.
The State of Illinois still owes income tax refunds to many businesses, but the backlog declined in the fiscal year ended June 30, 2011 and is expected to dip further this year. According to the Illinois Department of Revenue, 4,569 businesses were owed $626.9 million in income tax refunds at the end of FY2011, down from $690.9 million at the end of FY2010. Nearly 34,000 individuals were owed $18.6 million at the end of FY2011, down from $43.6 million at the end of FY2010, but all of the…
Illinois’ Personal Property Replacement Tax (PPRT) is a revenue source for local governments that was created by the General Assembly in 1979 to replace a tax on the personal property of businesses that was abolished pursuant to the 1970 Illinois Constitution Article IX Section 5. Although its name refers to the tax it replaces, the PPRT is an income tax on the federal taxable income of corporations, business partnerships, trusts and Subchapter S corporations and a tax on public…
On Monday the Civic Federation released its analysis of Chicago Public Schools $5.9 billion FY2012 budget proposal. The Federation supports the proposal as it provides a reasonable short-term plan to fund the District’s core educational mission during its difficult, deepening financial crisis. However, the Civic Federation has major concerns about the long term fiscal health of the District due to the prospect of enormous budget shortfalls in the coming years, particularly with the end of a…
This article discusses the Civic Federation’s support for Chicago Public Schools $5.9 billion FY2012 budget proposal. It mentions the Federation’s warnings about the District’s long-term fiscal prospects.
This article is about the Civic Federation’s analysis of Chicago Public Schools $5.9 billion FY2012 budget proposal. It examines the Federation’s recommendations for reforms to the CPS teacher pension system.
