A new pension buyout plan designed to save hundreds of millions of dollars for the State of Illinois in the fiscal year that just ended actually generated relatively minor savings in FY2019 and does not appear likely to meet the annual cost-reduction target over the next few years. The shortfall has occurred despite robust participation by members of the State Employees’ Retirement System (SERS…
A Commission created to analyze an annual five-year forecast of Cook County revenues held its first meeting in early July. The Cook County Board of Commissioners approved an ordinance establishing an Independent Revenue Forecasting Commission on October 17, 2018. The Commission is intended to help the Board of Commissioners make informed budgetary decisions by evaluating long-term revenue…
Amid the frenzied activity at the end of the Illinois General Assembly’s spring session, a little-noticed tax on health insurers is expected to have a major impact on the State’s FY2020 budget. The new tax on managed care organizations (MCOs) is expected to bring in nearly $1.1 billion in additional federal Medicaid revenues, according to estimates by Illinois officials. The extra federal…
Governor J.B. Pritzker’s FY2020 budget features an array of revenue-raising proposals, such as recreational cannabis and sports betting, that have attracted considerable attention. Another idea is less flashy but just as important to next year’s budget: a tax on health insurance plans. As outlined by the Governor, the tax on managed care organizations (MCOs) would generate $390 million to be used…
(CHICAGO) – In a report released today, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation announced its support for Governor Pritzker’s recommended FY2020 budget, because it represents a workable short-term plan to move Illinois forward. The full report is available here.
Click here to read the full report. Click here to read the press release for this analysis. SUMMARY Amid one of the longest economic expansions in U.S. history, the State of Illinois still faces daunting fiscal challenges. The list includes chronic operating deficits, a multi-billion dollar backlog of unpaid bills, crushing public pension costs and five consecutive years of population…
Following an unexpected influx of income tax revenues in April 2019, Illinois Governor J.B. Pritzker has dropped a controversial proposal to delay funding for the State’s financially troubled pension funds. The pension holiday, proposed in the Governor’s budget for the fiscal year that starts on July 1, 2019, was intended to save about $878 million through a seven-year extension of the statutory…
Click here to read the full report. Click here to read the press release for this report. AT A GLANCE The Civic Federation released this report in advance of the April 2, 2019 Chicago municipal election for consideration by the public and candidates for Mayor, Treasurer, Aldermanic Office and the City Clerk. The report details the City of Chicago’s major financial challenges, as well…
Governor J.B. Pritzker’s first budget proposal for the State of Illinois faced major challenges, including an operating deficit that the new administration estimated at $3.2 billion. Closing the gap by implementing a graduated income tax—a centerpiece of the Governor’s election campaign—was off the table in fiscal year 2020 because of the lengthy process required to amend the Illinois…
In light of Springfield’s past bad practices, group also cautions against gimmicks, pitfalls (CHICAGO) – In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability has proposed a multi-year plan to address the State of Illinois’ financial challenges. The full report is available here. The Federation presents a Roadmap each year for consideration by the…
