This article reviews the Institute for Illinois' Fiscal Sustainability at the Civic Federation’s FY2016 State Budget Roadmap, an annual report released prior to the Governor’s budget address. The recommendations in the comprehensive 5-year plan would immediately stabilize the State’s operating budget, establish a sustainable long-term financial plan and pay off the State’s $6.4 billion backlog of…
This article discusses recommendations made in the FY2016 State Budget Roadmap, an annual report released by the Institute for Illinois' Fiscal Sustainability at the Civic Federation prior to the Governor’s budget address. The 5-year plan includes tapping into new revenue sources that will stabilize the State’s budget while protecting essential government services.
In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability proposes a comprehensive five-year plan that responds to the dire reality of Illinois’ financial condition with painful, but necessary recommendations. The plan immediately stabilizes the State’s operating budget and establishes a sustainable long-term financial plan that would pay off Illinois’…
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 and proposes a comprehensive five-year plan for achieving long-term fiscal sustainability for the State of Illinois. This plan responds to the dire reality of Illinois’ financial condition…
This article discusses a proposal by Governor Bruce Rauner to allow cities, towns and counties in Illinois to file for bankruptcy protection. The Civic Federation’s 2015 Legislative Priorities encourage the Illinois General Assembly to create an Illinois Municipal Protection Authority as an alternative to bankruptcy to assist local governments in finding creative, voluntary solutions to their…
A 2009 GFOA white paper identified long-term financial planning as the central tool for local governments to become financially resilient. Financial resiliency is characterized by going beyond just financial sustainability to a system that is adaptive and able to sustain external shocks such as an economic downturn.[1] Credit rating agencies have also recognized the importance of long-term…
The State of Illinois projected a major loss of income tax revenues in FY2015 due to the reduced rates for individuals and corporations that took effect on January 1, 2015. However, corporate income taxes have taken a steeper decline than originally projected and began to fall even before the rate declined to 5.25% from 7.0% halfway through the fiscal year. The December 2014 monthly revenue…
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…
This Marketplace Morning Report discusses the expiration of Illinois' temporary income tax increase on January 1, 2015. As discussed here, the reduction will lead to a revenue loss of $1.9 billion in FY2015, net of any underlying economic growth. This report also mentions the Civic Federation's recommendation to expand the income tax base to include retirement income as part of a…
