When the State of Illinois enacted its budget for the current fiscal year in June 2018, it had a narrow surplus on paper of about $14 million. But a new report from the Governor’s Office estimates that the State’s actual financial result for FY2019 will be a budget deficit of more than $1 billion—a gap that could widen to $2.8 billion the following year without policy changes. The projected…
UPDATE: The State Universities Retirement System (SURS) does not expect to be ready to fully implement pension buyout plans for its members during FY2019, according to documents provided to the Civic Federation. SURS attributed the delay to complex benefit provisions, limited staffing and poor quality payroll information. As discussed below, the other two large State pension funds, the Teachers’…
Illinois’ backlog of unpaid bills stood at nearly $7.4 billion as of September 13, down from its peak of nearly $16.8 billion in November 2017. The State’s FY2018 budget stopped the backlog’s growth by ending the two-year budget impasse and authorizing the issuance of $6 billion in bonds to pay off unpaid obligations. The State’s FY2019 budget, however, has a projected (and unlikely) surplus of…
Since Illinois passed its budget for the current fiscal year, many questions have been raised about the $445 million in savings expected from enacted pension changes. What is the basis for the savings estimate and how accurate is it likely to be? The assumed reductions in State pension contributions are the result of three provisions in the FY2019 budget legislation. The most important is a…
This article examines Illinois' financial state one year after the end of the two-year budget impasse. The article points out that while the State of Illinois recently enacted its second full-year budget since the end of the impasse, the State's $6 billion backlog of bills and $130 billion in unfunded pension liabilities continue to burden its finances. Civic Federation President…
After three years of political gridlock and missed deadlines, the Illinois General Assembly passed a budget for the coming fiscal year on the last day of its regular spring session. Governor Bruce Rauner promptly signed the budget amid bipartisan celebration. Although the $38.5 billion budget for fiscal year 2019 is roughly balanced on paper, concerns persist about whether the revenue and…
This article discusses Civic Federation recommendations from the FY2019 State of Illinois Budget Roadmap to expand the Illinois income tax to include federally-taxable retirement income and broaden the sales tax base to a number of services. The article points out that neighboring states also tax retirement income and services. Civic Federation President Laurence Msall said that tax increases…
When will Illinois have a budget for Fiscal Year 2019? The issue is of intense concern because of the State’s recent history: full budgets for FY2016 and FY2017 were never enacted, while the General Assembly enacted a budget for FY2018 over Governor Rauner’s veto six days into the fiscal year. Another long-term budget standoff between the legislature and Governor would undoubtedly be disastrous…
The following news items cover the release of the Institute for Illinois' Fiscal Sustainability at the Civic Federation's analysis of the State of Illinois FY2019 Recommended Operating Budget. The Federation could not support Governor Bruce Rauner’s recommended budget because it is precariously balanced and its modest surplus relies on aggressive assumptions. Additionally, the…
(CHICAGO) – In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability announced it cannot support Illinois Governor Bruce Rauner’s recommended budget for FY2019 because it is precariously balanced and its modest surplus relies on aggressive assumptions. Additionally, the proposal does little to address Illinois’ massive backlog of bills. The Institute’s full…
