State of Illinois

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Cook County’s Request to Close Oak Forest Hospital Rejected by State Board

A key component of Cook County’s plan to remake its public health system was rejected by a State of Illinois board on May 10, 2011, adding to concerns that the County might have difficulties implementing its FY2011 budget. At a meeting in Joliet, the Illinois Health Facilities and Services Review Board (Health Facilities Board) rejected by one vote the request to end inpatient and emergency room…

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Investments in Transportation Dominate State Capital Spending

  The State of Illinois’ largest area of capital investment, transportation projects, received a funding boost this week when the federal government announced additional grants to support high-speed rail projects in Illinois. The U.S. Department of Transportation notified Illinois in the past week that it would receive two additional grants for high-speed rail. On May 4, 2011, the State…

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State of Illinois FY2012 Recommended Operating and Capital Budgets: Analysis and Recommendations

The Civic Federation opposes Governor Pat Quinn’s $52.7 billion FY2012 recommended operating budget for the State of Illinois because it is unbalanced by approximately $2.4 billion and is based on the premise that long-term borrowing is the right tool to dig the State out from under its massive backlog of unpaid bills and other obligations. To the contrary, the Governor’s proposed borrowing is…

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Illinois’ State Pensions Still Worst Funded

The Pew Center on the States recently released its report card on the health of state pension systems. Just as they were last year, the funding status of Illinois’ pension systems is the worst in the nation, with the State only funding 51% of its liabilities through FY2009. States in marginally better shape include West Virginia with 56% funding and Oklahoma at 57%. Illinois has its work cut out…

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Cost of State Employee and Retiree Health Insurance Attracts More Attention

Governor Pat Quinn’s recommended FY2012 budget for the State of Illinois proposes that General Funds appropriations for the State Employees’ Group Insurance Program more than double to $1.4 billion from $695.8 million in FY2011.[1] This proposal, which reflects significant underfunding of the program in FY2011, has drawn more attention to how much the State pays for employee and retiree…

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Tax Amnesty Program Update: Payments Up but New Revenue Low

Although the State of Illinois' FY2011 tax amnesty program brought in more than $700 million of delinquent tax payments owed by taxpayers and business, only $12 million of that revenue can be considered new funds. As previously discussed on this blog, the tax amnesty program approved by the Governor and General Assembly allowed payment of personal income tax, corporate income tax and sales tax…

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Legislatively Required Transfers: Another Use of State General Operating Funds

General Funds represent the largest component of the State of Illinois budget and are mainly used to support the regular operating and administrative expenses of state agencies through annual appropriations by the General Assembly.[1] General Funds are also diverted to Other State Funds to make debt service payments on bonds and for a wide range of other legislatively required transfers—from…

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Governor’s Budget Proposes Increases to Agency Spending

Although it includes deep cuts to some agencies and programs, the FY2012 budget proposed by Governor Pat Quinn includes increases in other areas that would more than offset the reductions. In all, the proposed budget for FY2012 would increase General Funds appropriations for agency operations by more than $1.0 billion.  General Funds appropriations make up the majority of the State’s…

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State Deficit Expected to Decline in FY2011 Due to Tax Increases and Borrowing

After three years of increasing budget deficits, the State of Illinois is expected to see a smaller budget gap at the end of FY2011 because of tax increases and expanded borrowing for operations. The FY2011 year-end deficit is currently projected to total $4.4 billion, according to Civic Federation calculations based on information in Governor Pat Quinn’s FY2012 recommended budget. That compares…

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What Would it Mean to Shift More Illinois Teacher Pension Costs to School Districts?

Illinois Senate President John Cullerton has recently suggested that school districts should begin contributing a larger share of the employer contribution to the Teachers’ Retirement System of the State of Illinois. President Cullerton noted that this change would relieve some of the financial pressure on the State, which has borrowed to make its pension payments for the past two years. He has…