Plan Uses Revenue from Increased Income Tax Rates on New Homeowners’ Grant (CHICAGO) – In a new report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability opposes Governor Quinn’s recommended budget for FY2015 because it uses revenue from extending the 2011 temporary income tax increase for new spending. The State’s fiscal crisis demands that any increased…
The Civic Federation opposes Governor Pat Quinn’s recommended budget for FY2015 because it uses revenue from extending the 2011 temporary income tax increase for new spending. The State’s fiscal crisis demands that any increased revenue be used to stabilize State finances by significantly reducing its massive backlog of unpaid bills. The Civic Federation is encouraged that the recommended budget…
As part of the FY2015 budget recommendation for the State of Illinois, Governor Pat Quinn provided two separate five-year projections for both “recommended” and “not recommended” budget proposals. The long-term outlooks show the implications of the extension of higher income tax rates in the recommended budget and the considerable spending reductions that would be necessary to balance the State’s…
The consolidation and dissolution of local units of government has been the subject of much discussion recently in Illinois. The purpose of this blog post is to briefly summarize a recent report released by the Illinois Local Government Consolidation Commission and other relevant legislation aimed at improving the efficiency and effectiveness of government operations by streamlining the…
This article reviews the $423 million capital plan released by Chicago Public Schools May 2, which is financed primarily through borrowing. The Civic Federation said the District needs to have a plan for absorbing the resulting increased debt service into a budget that is already severely constrained.
The Civic Federation joined with the Federal Reserve Bank of Chicago on April 23, 2014 to co-host a conference on ways that municipalities in Illinois can avoid or resolve fiscal stress. Experts, practitioners and academics from around the country gathered to discuss Chicago’s fiscal future and how different state intervention and revenue policies around the country have impacted local…
Governor Pat Quinn’s recommended budget for FY2015 proposes that the State of Illinois build a financial cushion to deal with future economic downturns. The Governor suggests the creation of an adequate “rainy day” fund in a five-year blueprint for the State, but specifics of the plan have not been provided. The State’s perilous financial situation—a looming revenue loss due to income tax rate…
Although the budget recommended by Governor Pat Quinn for FY2015 proposes extending current income tax rates to avoid a massive revenue cliff, it also relies on borrowing $650 million to close a budget gap and pay down a portion of the State’s backlog of unpaid bills. Despite the additional income tax revenues, total General Funds revenues from State taxes and fees combined with federal…
This article discusses the City of Chicago’s plan to restore 90% funded levels to its Municipal and Laborers pension funds by 2054 through a combination of property tax increases, increased employee contributions and lower cost-of-living increases for retirees. The Civic Federation said the plan strikes a reasonable balance of shared sacrifice among taxpayers, employees and retirees to stabilize…
On March 26, 2014, Governor Pat Quinn presented an FY2015 budget proposal for the State of Illinois that avoids a fiscal cliff by retaining temporary income tax increases that were scheduled to be phased out beginning in January 2015. The Governor’s recommended budget also significantly increases the property tax credit for homeowners on State income taxes. In order to balance the budget and pay…
