Governor Pat Quinn’s recommended budget for FY2015 proposes that the State of Illinois build a financial cushion to deal with future economic downturns. The Governor suggests the creation of an adequate “rainy day” fund in a five-year blueprint for the State, but specifics of the plan have not been provided. The State’s perilous financial situation—a looming revenue loss due to income tax rate…
Although the budget recommended by Governor Pat Quinn for FY2015 proposes extending current income tax rates to avoid a massive revenue cliff, it also relies on borrowing $650 million to close a budget gap and pay down a portion of the State’s backlog of unpaid bills. Despite the additional income tax revenues, total General Funds revenues from State taxes and fees combined with federal…
On March 26, 2014, Governor Pat Quinn presented an FY2015 budget proposal for the State of Illinois that avoids a fiscal cliff by retaining temporary income tax increases that were scheduled to be phased out beginning in January 2015. The Governor’s recommended budget also significantly increases the property tax credit for homeowners on State income taxes. In order to balance the budget and pay…
This article discusses Governor Quinn’s FY2015 budget recommendation, which calls for making Illinois’ temporary income tax rate increases permanent to help finance education and pay down unpaid bills. It cites the Civic Federation’s State of Illinois FY2015 Budget Roadmap, which found the State would face a $3.9 billion revenue drop by FY2016 if the income tax rates partially roll back as…
This article follows Governor Quinn’s FY2015 Budget Address and plan to make Illinois’ temporary income tax increase permanent to generate more State revenue. It cites the Civic Federation’s State of Illinois FY2015 Budget Roadmap, which recommended extending the current tax rate for one year before gradually reducing the rate by 20%.
This article covers Governor Quinn’s March 26 announcement of his plan to make Illinois’ temporary income tax increase permanent. The Civic Federation said the tax increase alone won’t signal to credit rating agencies that the State knows what to do to avoid another fiscal crisis. In its State of Illinois FY2015 Budget Roadmap the Civic Federation recommended that Illinois publish a long-term…
This article previews the budgetary challenges Governor Quinn is facing in advance of his March 26 fiscal year 2015 budget address. It cites the Civic Federation’s State of Illinois FY2015 Budget Roadmap, which recommends extending the current income tax rates for one year before gradually rolling back the individual and corporate rates by 20% to avoid a steep revenue cliff.
Next week Governor Pat Quinn will give his sixth budget address since taking office in 2009. The budget is expected to be one of the most difficult of his tenure considering that the State is currently expected to have approximately $5.4 billion in unpaid bills at the end of FY2014 and will see a loss of $1.6 billion in General Funds revenues in FY2015, due to the reduced income tax rates that…
Unlike the federal government, the State of Illinois exempts all retirement income from the individual income tax. Of the 41 states that impose an income tax, Illinois is one of only three that exempt all pension income and one of 27 that exclude all federally taxed Social Security income, according to a report from the Chicago Metropolitan Agency for Planning. The Illinois Comptroller estimates…
This article discusses Illinois’ March 11 sale of taxable revenue-backed bonds in the context of the State’s temporary income tax increase scheduled to rollback in January 2015. It cites the Civic Federation’s recommendation to gradually reduce income tax rates by 20% after extending the rates for one year in 2015 to avoid a sharp revenue cliff.
