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…
The fiscal fallout to states and local municipalities resulting from Standard & Poor’s downgrade of the United State’s debt rating is the focus of this article. The article cites the Civic Federation’s “Cost of the Crisis” report, which found that the State of Illinois will pay increased amounts of debt service because its bond rating was downgraded.
The State of Illinois’ plan to relieve some cash flow pressures in FY2011 by borrowing nearly $1 billion from its Special Funds to pay for operations netted less than half of that amount at the close of FY2011. The interfund borrowing program, previously discussed here, was approved by the General Assembly as part of the FY2011 Emergency Budget Act. It allowed the State to transfer cash balances…
Governor Pat Quinn’s plan to cancel pay raises for State of Illinois unionized workers due to insufficient funds in the FY2012 budget has hit a major hurdle. The plan, which would have affected 30,000 members of Council 31 of the American Federation of State, County and Municipal Employees (AFSCME) across 14 state agencies, would have violated a union contract, according to a ruling on July 19,…
After two consecutive years of losses, the State of Illinois is reporting moderate growth in sales tax revenue for FY2011, which ended on June 30, 2011. Not only did sales tax revenue collected by the State grow but it also beat the projections on which the budget was based. Total General Funds revenues from sales taxes declined from FY2008 through FY2010 by nearly $1 billion, from $7.2 billion…
Governor Pat Quinn signed the State of Illinois’ FY2012 budget on June 30, 2011, a day before the start of the new fiscal year. The FY2012 budget is expected to generate a mountain of unpaid Medicaid bills and a possible court battle over union pay raises. In signing the budget, which includes $32.987 billion in general operating funds, the Governor reduced the budget passed by the General…
The Federal Reserve Bank of Chicago recently co-hosted a conference featuring analysis and discussion among local and national budget experts to better understand the fiscal condition of states and prospects for economic recovery after several years of ongoing financial stress. The meeting was co-hosted by the by the Federal Reserve Banks of Philadelphia and New York in partnership with the John…
The Illinois General Assembly reconvened on June 22, 2011 for an extra day of the spring session to sort out several issues that were not addressed three weeks ago when the legislature adjourned after approving a $33.2 billion budget. Both the House and the Senate took action to reauthorize the State’s ongoing $31-billion capital program, which was first enacted in FY2010. As previously discussed…
Although lawmakers have been considering ways to cut the State of Illinois’ costs for state retiree health insurance, the General Assembly adjourned on May 31, 2011 without taking action on the issue. A bill (Senate Bill 175) to require all retirees to pay a share of the cost for insurance premiums cleared the Senate Executive Committee on May 29 by a vote of 9 to 6. However, the sponsor, Senator…
This article discusses some of the actions made by the State of Illinois General Assembly during the spring legislative session. The article cites Civic Federation data that showed debt dedicated to the State's pension system has exceeded capital debt.
