A new law that restores certain Medicaid benefits previously cut due to budget pressures also adds a new service: kidney transplants for undocumented Illinois residents. Public Act 98-0651, signed by Governor Pat Quinn on June 16, 2014, authorizes State funding of kidney transplants for low-income non-citizens beginning on October 1. Recipients must have end-stage renal disease and already be…
Despite its name, a social impact bond (SIB) is not a debt instrument and does not require a government to issue debt. Rather, an SIB is a social impact financing arrangement whereby funds are raised from private sector investors to provide social service agencies the funding necessary to deliver their services. The government enters into a contract with a private sector entity working as an…
The Civic Federation and the Motorola Solutions Foundation issued a call for nominations this week for the 23rd Annual Motorola Solutions Foundation Excellence in Public Service Award. The award seeks to honor individuals whose exemplary management, leadership, and innovation has led to lasting achievements and more effective government in Illinois. Individuals eligible for nomination are…
Information included in recent bond disclosures by the State of Illinois indicate that the pension obligation bonds (POBs) sold in 2003 primarily to boost the retirement systems’ assets have earned the minimum investment returns needed to break even in only seven of the last ten years. The $10 billion pension bond issuance will cost the State a total of $11.9 billion in interest repaid…
Some recent progress has been made when it comes to reducing the number of local governments in Illinois. The State of Illinois has 6,963 local governments. To provide context to this issue, the table below displays the type and number of local governments in Illinois compared to other select midwestern states. Of the 6,963 local governments in Illinois, county governments make up 102, or 1.5% of…
Businesses do not always pay their bills immediately, and neither do governments. Delays of a month or two are standard practice, although prompt payment is preferable to take advantage of discounts, avoid penalties and maintain access to the largest possible pool of vendors. Since FY2009, long payment delays by the State of Illinois have been a highly visible sign of the State’s financial…
Unincorporated areas lie outside municipal boundaries. The residents and businesses located in these areas are usually provided municipal services such as police protection and building code enforcement by county government or special districts. Because unincorporated areas may be scattered throughout a county’s territory, the provision of these services by counties has been inefficient and…
According to recent reports, the State of Illinois’ operating revenues, which are expected to decline this year due to the partial rollback of State income tax rates, exceeded expectations in FY2014, the last full year of the increased income tax rates. Documents published by the State to update bond disclosures include preliminary results for FY2014, which ended on June 30. The new data show…
Less than a month into the new fiscal year, which began on July 1, Standard and Poor’s announced that the financial outlook for the State has deteriorated from “developing” to “negative.” The rating agency directly blamed the FY2015 budget approved by the Governor and General Assembly for the change in perspective. An analyst from S&P stated that the budget was not structurally balanced,…
The Illinois Supreme Court’s recent ruling on health insurance for State retirees is expected to increase State costs by approximately $128 million through FY2015, according to the Department of Central Management Services. Although litigation is ongoing, the high court’s decision apparently means the State will bear the cost of health insurance premium increases previously charged to retirees.…
