The State of Illinois’ bond rating was reduced again this week but despite being one of the lowest rated state credits it remains well above the level assigned to speculative debt. On August 29, 2012 Standard & Poor’s (S&P) reduced the State’s long-term General Obligation (GO) bond rating to A from A+ and issued a negative outlook. This was the third time S&P reduced the State’s bond…
The State’s largest retirement system postponed until September a decision on whether to reduce the system’s assumed rate of return on investment — a decision that could result in an increase in the annual State contribution required by law. As discussed here, on August 23, 2012 the Board of Trustees of the Teachers’ Retirement System (TRS) considered a consultant’s recommendation to lower the…
On August 17, 2012, Illinois legislators adjourned a special one-day session of the General Assembly without taking action on the State’s pension crisis. Due to the stalled effort, the State continues to face pension costs that will consume an increasing share of its resources over the next two decades. The chart below compares total pension costs—including State contributions and payments on…
The State of Illinois’ enacted budget for FY2013 is missing key components needed to carry out the General Assembly’s spending plan, according to a recent filing in connection with State bond offerings. The bond disclosure documents, which were filed by Governor Pat Quinn’s Office on August 6, 2012, indicate that the enacted general operating funds budget totals $33.041 billion. In contrast, a…
Earlier today, Illinois Governor Pat Quinn signed legislation intended to add transparency, accountability and competition to the State’s Enterprise Zone Act. The Civic Federation’s issue brief on Illinois enterprise zones, previewed in a blog post last month, is now available on our website. The purpose of this issue brief is to describe: · How enterprise zones currently operate in Illinois and…
This issue brief examines how enterprise zones currently operate in Illinois. Enterprise zones are geographic areas designed by state and/or local governments to stimulate economic growth and create or retain jobs in economically depressed areas. The purpose of this issue brief is to describe: • Recent efforts to reform the administration and implementation of enterprise zones in Illinois; • The…
In the wake of the U.S. Supreme Court decision on national healthcare reform, Illinois officials plan to seek authorization from the Illinois General Assembly to participate in the expansion of the Medicaid program under the federal Affordable Care Act. Julie Hamos, Director of the Illinois Department of Healthcare and Family Services, told members of the agency’s Medicaid Advisory Committee at a…
As discussed here previously the Illinois General Assembly recently passed a sweeping overhaul of its Enterprise Zone Act. If signed by the Governor, the new law will change how the State grants and renews economic development areas and will require additional reporting to help determine the effectiveness of the tax benefits provided under the law. Enterprise zones are areas designated by…
Total revenues collected by the State of Illinois in FY2012 beat expectations by $576 million, according to an update from the General Assembly’s financial oversight commission. However, the same report suggested that stalled economic growth may prevent continued gains in the current fiscal year. In its monthly briefing for June 2012, the last month of FY2012, the Commission on Government…
The State of Illinois budget for fiscal year 2013 underfunds the expected cost of State group health insurance by at least $550 million, paving the way for a significant increase in unpaid bills unless more spending is authorized later this year. Governor Pat Quinn signed the $33.7 billion budget on June 30, 2012, one day before the start of the current fiscal year. The Governor had recommended a…
