In its recently released FY2015 budget roadmap report, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation recommended that the State of Illinois publish a five-year financial plan and that the plan be updated annually. This recommendation follows a best practice of the Government Finance Officers Association (GFOA), which urges every government to use long-term financial…
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. The report reviews Governor Quinn’s three-year budget projection and proposes a comprehensive five-year plan for achieving long-term fiscal sustainability for the State of Illinois. The Civic…
The Illinois House of Representatives has approved a revenue projection for the coming fiscal year that includes a $2.2 billion loss in operating resources for FY2015, after a holding series of committee meetings to deliberate varying estimates. The General Funds revenue estimate totaling $34.5 billion was unanimously approved on February 25, 2014 in House Joint Resolution 80. The revenue…
It is widely known that the State of Illinois faces a dramatic reduction in general operating revenue starting on January 1, 2015, when temporary income tax rate increases enacted in 2011 are scheduled to partially roll back. General Funds income tax receipts will also decline around the same time for another reason: beginning on February 1, 2015, a portion of individual income tax collections…
At a recent committee hearing, Illinois lawmakers were provided with a mixed message regarding the economy and State budget for the coming fiscal year. Officials from the Illinois Department of Revenue explained that although the State could expect improved underlying economic growth in the next two years, operating resources would still plummet in the next year due to current tax policy. Many…
In the fall of 2011, the Rhode Island General Assembly passed and Governor Lincoln Chafee signed landmark pension reform legislation intended to end a pension funding crisis and make retirement obligations for public employees more sustainable for the state and many local governments. To learn more about Rhode Island Retirement Security Act of 2011 (RIRSA) reforms, see this Civic Federation blog…
The State of Illinois’ new pension law is expected to reduce statutorily required State contributions by $144.9 million over 30 years and lower its unfunded pension liability by about $24 billion, according to actuarial reports from the largest retirement systems. An analysis of the actuarial reports can be found in a document issued on January 24, 2014 in connection with the State’s planned…
The Civic Federation's legislative priorities for 2014 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, requiring all…
The State of Illinois hopes to receive approximately $3.25 billion in new federal Medicaid funding under a proposal to be submitted to the federal government in March. The estimated amount of new federal funding in the State’s comprehensive waiver proposal was discussed at a General Assembly hearing in Chicago on January 22. Consultants testified that the new funding would be based on State…
Although the most significant change in Illinois’ new pension law consists of a reduction in annual benefit increases paid to current and future retirees, the legislation also requires the State to commit additional funding to the retirement systems through a series of supplemental payments that could total more than $40 billion. The additional funding is intended to go above and beyond the…
