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…
The decision by the Chicago Public Schools Board to rescind an annual wage increase to employees in the CPS union is the focus of this article. The Civic Federation says that the action is necessary in light of CPS' enormous budget deficit.
Despite a significant increase in Illinois’ corporate income tax rate enacted in January 2011, much of the anticipated new State revenue will be offset by corporate tax incentives provided in recent changes to the federal tax code. Known as bonus depreciation, the federal rule allows businesses to take an upfront deduction for the cost of capital investments in machinery or equipment from their…
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…
A critical fiscal process for state and local governments is the planning and funding of capital projects. The literature on best practices for capital budgeting is not as robust as for operating budgets and there is significant variety in the practices of governments. There are a number of factors that add complexity to capital planning, including the multi-year nature of capital projects, the…
The cancellation of Chicago Park District Fourth of July fireworks displays due to costs is the focus of this article. The Civic Federation says the cancellation of the displays demonstrates the dire financial straits the City is in, but that the Chicago must consider how it will attract visitors to the lakefront as it creates a long-term financial plan.
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.
This article discusses increases to health insurance premiums paid by City of Chicago retirees. The Civic Federation says that the City should create a retiree healthcare trust fund.
After several significant budget related initiatives failed to advance out of the General Assembly, such as proposed pension reforms and borrowing to pay down the State’s backlog of unpaid bills, the legislature passed an operating budget for FY2012 in the final hours of its regular session late on May 31, 2011. The budget passed by both chambers and sent to Governor Pat Quinn totals $33.2…
This article discusses State of Illinois Treasurer Dan Rutherford’s resistance to proposals by State lawmakers to borrow to pay the State’s backlog of unpaid bills. The Civic Federation says that borrowing won’t ease the backlog and will impinge on future school and healthcare spending.
