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…
The Federal Reserve Bank of Chicago and the Civic Federation co-hosted a sold-out conference earlier this month on the timely topic of infrastructure spending in Illinois. Speakers from around the country discussed best practices in infrastructure planning and possible funding sources as Springfield mulls over a major new capital spending program. To see speaker presentations, visit the event…
It has been ten years since Illinois’ last major capital bill, but a new one may come as soon as next month. Whether any bill that emerges adequately addresses Illinois’ capital needs depends on whether the General Assembly and…
A Civic Federation blog post last week raised questions about the revenue estimate attached to Governor J.B. Pritzker’s graduated income tax plan. After the post was published, the Governor’s Office released an explanation of the methodology used to arrive at the estimate. The new information shows how the plan could bring in $3.4 billion of additional revenue by raising effective tax rates on…
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…
Click here to read the full report. Click here to read the press release for this report. AT A GLANCE Prior to the release of the Governor’s annual budget recommendation, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation releases an analysis of the State of Illinois’ fiscal condition. This report presents the Civic Federation’s multi-year plan to stabilize Illinois’…
During this decade of financial difficulties, the State of Illinois’ backlog of unpaid bills has become an important indicator of its fiscal condition, relied on by policymakers, rating agencies, taxpayers and journalists. Now two different ways of measuring the backlog have begun to diverge. One showed the backlog at $7.91 billion as of December 31, 2018. The other measure indicated a backlog…
Illinois’ large number of local government units – the largest in the United States at approximately 7,000 according to the U.S. Census Bureau – is often cited as a reason for high property taxes in Illinois and has fueled calls for government consolidation and efficiencies. In February 2015 former Governor Bruce Rauner created the Local Government Consolidation and Unfunded Mandates Task Force…
A new study by a state commission in Pennsylvania compares the investment expenses paid by large public pension funds. Although such comparisons are difficult because of vast reporting discrepancies, the study still raises important questions about investment expenses of these funds—including some in Illinois. The Pennsylvania commission, established in 2017 by statute, was charged with…
The following is an infographic-style primer intended to concisely and accessibly present the most important information and data on the Illinois pension crisis. The series explores the history and magnitude of the State's pension challenges and offers options for addressing the problem. View this primer as a printable PDF. Sources and…
