Recent decisions by two of the largest State of Illinois retirement systems are expected to result in significant increases to statutorily required pension contributions in the upcoming budget year. This blog post discusses the decisions and their potential impact on the State budget. Changes in Actuarial Assumptions The Boards of Trustees of the Teachers’ Retirement System (TRS) and the State…
This segment explores the history of Illinois’ Budget Stabilization Fund, more commonly known as a “rainy day fund.” Host Tony Sarabia and President of the Civic Federation Laurence Msall discuss the consequences for the state and for taxpayers of regularly draining the fund for cash flow problems, leaving the fund inadequate to address potential unforeseen crises or future economic downturns.
This article discusses the repeated depletion of the State of Illinois’ rainy day fund, due in FY2017 to the absence of a comprehensive, balanced budget. Civic Federation President Laurence Msall remarks that, in effect, Illinois continues to act as if the State will never experience another economic downturn.
This article discusses the State of Illinois’ FY2017 stopgap plan and how it will not be enough to make whole many of the programs that rely on State funding. Civic Federation President Laurence Msall remarks that the stopgap plan is neither balanced nor comprehensive and explains that it does not give Illinois social services and universities the ability to manage their operations in an…
Despite a stopgap spending measure enacted on June 30, 2016, State of Illinois appropriations for higher education remain below expenditures in fiscal year 2015—the last year the State had a complete annual budget. For FY2016 and FY2017, appropriations from general operating funds and related accounts total $1.6 billion, or 82.4% of the $1.9 billion spent in FY2015. In other words, higher…
This article discusses the State of Illinois’ FY2017 stopgap plan and the financial impact of the State not enacting a comprehensive balanced budget. Laurence Msall, President of the Civic Federation, describes the stopgap plan as a political gimmick and notes that it does not end Illinois’ fiscal crisis.
After a yearlong stalemate, the State of Illinois finally saw a crack in its ongoing budget impasse on the last day of the fiscal year. The General Assembly rushed approval of bills authorizing a full year of preschool through high school education funding, including additional assistance for the Chicago Public Schools, along with a partial spending plan for other government services to cover…
In advance of a $550 million bond sale this week, the State of Illinois announced it had negotiated new terms with the largest holder of Illinois swaps. The new lower level for termination of the swaps based on Illinois’ credit ratings dropped to Ba1 with Moody’s Investors Service and BB+ with Standard and Poor’s. As discussed here previously, under its swap agreements the State is required to…
The Illinois General Assembly ended its regular spring session on May 31, 2016 without passing a budget for the upcoming fiscal year. The legislature now has less than one month to complete a budget for the year that begins on July 1, and passage has become more difficult. After the end of May, a three-fifths vote of both the House and Senate—instead of a simple majority—is needed for a bill to…
This segment discusses the long-term damage being done to the State of Illinois as the State approaches one full year without a budget in place. Civic Federation President Laurence Msall discusses the consequences of the budget impasse and says Illinois is sending the wrong message to citizens and businesses by not having a budget.
