The fate of a proposal to use more than $5 billion in new federal funds to overhaul the State of Illinois’ Medicaid program remains unclear as a new gubernatorial administration takes office in Springfield. As previously discussed on this blog, the five-year proposal focuses on developing more community-based alternatives to institutional care for individuals with disabilities, including…
According to a recent study, the State of Illinois does not set aside enough revenue to account for fluctuations in its volatile tax sources and needs to improve its rules for making rainy day fund deposits in order to prepare for future financial challenges. The extensive report includes an in-depth study of the last 25 years of State revenues, previous legislation intended to establish a rainy…
A drop in Illinois’ income tax rates—and uncertainty about the implementation of pension changes—could cause the State’s backlog of unpaid bills to grow to $9.9 billion by the end of the 2016 budget year, according to a new forecast by Governor Pat Quinn’s office. Along with the decline in income tax revenues, the three-year projection for the State’s general operating budget through FY2018…
The following posts were among the most highly read on the Institute for Illinois’ Fiscal Sustainability’s blog in 2014 and represent the most closely followed Illinois fiscal issues of the year: State pension reform and the State budget. States Face Legal Challenges Over Reduced Pension COLAs January 3, 2014 This blog reviews legal challenges to reductions in state pension COLAs in…
On December 11, 2014, the Motorola Solutions Foundation and the Civic Federation honored the outstanding public service of Rocco Claps, current Director of the Illinois Department of Human Rights and the longest-serving Director in the agency’s history. The annual award recognizes a non-elected government official who has had an extraordinary impact on the quality of state and local government…
For anyone who wants to understand the pension crisis facing the State of Illinois, a recent report for the State’s largest pension fund would be a good place to start. The preliminary actuarial valuation report for the Teachers’ Retirement System (TRS) for the fiscal year ended on June 30, 2014 uses relatively plain language and reader-friendly charts to address a complex subject. The report’s…
The Civic Federation's legislative priorities for 2015 include public employee pension and retiree healthcare reforms, requiring the State of Illinois to develop and implement a capital improvement plan, establishing a consensus revenue forecast for the State of Illinois, creating a new governing board for the Cook County Forest Preserve District
On a preliminary trip to Springfield after winning the November election, Governor-elect Bruce Rauner held a press conference to draw attention to some of the gimmicks included in the current State budget, including interfund borrowing. Mr. Rauner called the plan to use $650 million borrowed from Special State Funds for FY2015 General Funds operations “fundamentally wrong.” The Governor-elect…
The Illinois House adjourned on Wednesday, December 3, 2014 with no further session days scheduled before the 99th General Assembly begins in January 2015. The Illinois Senate is expected to adjourn on December 4, 2014 and has one addition session day scheduled for January 13, 2015. This will mark the end of the 98th General Assembly. At the end of each two-year legislative session, all of the…
Shortly after a Sangamon County Circuit Court Judge ruled that the pension reform law passed in Illinois almost a year ago violated the State constitution, Attorney General Lisa Madigan announced she will be seeking an immediate appeal of the decision to the State Supreme Court. Judge John W. Belz issued the Circuit Court’s decision on Friday, November 21, 2014, one day after hearing oral…
