Failure to address pension crisis, plan for upcoming revenue loss threatens to erase progress on State’s backlog of unpaid bills (CHICAGO) – An analysis released today by the Institute for Illinois’ Fiscal Sustainability at the Civic Federation warned that the FY2014 budget may represent a high-water mark with future years bringing sharp reductions in revenues and further consequences of the…
This analysis of the State of Illinois’ Fiscal Year 2014 Enacted Budget finds that the budget may represent a high-water mark, with future years bringing sharp reductions in revenues and further consequences of the unresolved pension crisis. Although the State reduced the backlog of unpaid bills to $5.8 billion, that progress is threatened by legislative failure to prepare for extreme financial…
An effort to clear Illinois’ Medicaid program of ineligible enrollees has led to the removal of 128,700 participants, but State savings are expected to be far lower than hoped by lawmakers, according to testimony at a legislative hearing on September 17, 2013. The State has moved to cancel 75,707 Medicaid cases as of September 9, officials of the State’s main Medicaid agency said at the joint…
Several recently enacted laws are designed to increase public access to information about the State of Illinois’ budget and improve other aspects of the State’s budget process. The following table lists budget-related legislation signed by Governor Pat Quinn since the end of the General Assembly’s spring session on May 31, 2013. Public Act 98-0461, signed on August 16, requires the Governor’s…
At the end of the month, the Board of Education for Chicago Public Schools will vote on the District’s $5.6 billion operating budget for FY2014. The total budget of $6.6 billion is supported by local, state and federal revenues and other resources, including $761.6 million of appropriated fund balance. This blog focuses on the State of Illinois’ resources for CPS. The State of Illinois will…
Charged with finding a solution to the State of Illinois’ pension crisis, a legislative conference committee is considering a reform framework proposed by public university presidents. The central feature of the university proposal is a compounded automatic annual benefit increase set at half of the percentage increase in the Consumer Price Index (CPI). Current Illinois retirees and employees…
Amidst a flurry of reports on the State of Illinois’ inability to solve its ongoing pension crisis and worst bond rating of all 50 states, a new study claims that the State’s $96.8 billion unfunded pension liability poses no risk of default to bondholders. The report, published by the Mercatus Center at George Mason University, compares Illinois’ current financial woes to the last state to…
The FY2014 budget for the State of Illinois approved by the General Assembly has an operating deficit of $89 million, according to documents published in connection with an upcoming State bond sale. The legislature’s budget authorizes General Funds spending of $35.699 billion for the year that begins on July 1, 2013, the bond documents show. General Funds revenues are projected at $35.610 billion…
Despite increasing its revenue estimate on the final day of the regular legislative session, the Illinois General Assembly appears to have enacted a spending plan for FY2014 that exceeds the State’s expected resources. On May 31, 2013, the legislature increased its General Funds revenue estimate for FY2014 to $35.4 billion in a resolution passed by the House of Representatives (HR389). That was…
Due to its large backlog of outstanding bills, the State of Illinois has permanently extended its annual deadline for paying old bills to December 31—six months after the end of the fiscal year. The extension was enacted without fanfare in August 2012 as an amendment to the State Finance Act. Beginning in FY2013, the General Assembly gave the Comptroller’s Office six months after the fiscal year…
