Last week, Chicago Public Schools (CPS) issued an amended FY2013 budget plan based on the new contract agreement between the District and the Chicago Teachers Union (CTU). The revised budget includes an additional $103 million in spending which CPS plans to fund through cost-reductions in operations and one-time revenue sources. The Civic Federation maintains its opposition to the CPS FY2013…
The fact that the State of Illinois is no longer behind on paying business income tax refunds is good news for taxpayers and the State budget. But due to an obscure provision of State law, the elimination of the refund backlog also means that the State will distribute an estimated $182 million less in Personal Property Replacement Tax (PPRT) to local governments in FY2013 than in FY2012. As…
Although discussion about the State of Illinois’ annual budget primarily focuses on the operating expenditures the State also appropriates significant funding each year for capital investments. The State approved a $22.7 billion capital budget for FY2013 that is not part of the $33.0 billion General Funds budget enacted for operations. Since FY2005, the State’s capital budget and operating budget…
This analysis of the State of Illinois’ Fiscal Year 2013 budget estimates that projected savings could reduce the State’s existing backlog of $8.9 billion in unpaid bills by roughly $1.3 billion, but warned that the reduction may be difficult to achieve. The budget reflects significant steps to rein in the costs of Medicaid but fails to address the unsustainable costs of the State’s pension…
An analysis released today by the Institute for Illinois’ Fiscal Sustainability at the Civic Federation estimated the State’s FY2013 budget could reduce the existing backlog of unpaid bills by roughly $1.3 billion, but warned that the reduction may be difficult to achieve. The State’s $33.0 billion operating budget reflects significant steps to rein in the costs of Medicaid but fails to address…
This editorial discusses Moody’s Investor Service’s most recent downgrade CPS in the wake of a new labor contract for teachers and rising pension costs. The Civic Federation says CPS cannot afford to wait for leadership from the Illinois General Assembly and should immediately work to identify sustainable pension reforms.
A $1-per-pack cigarette tax increase enacted by the State of Illinois in June to help fund the State’s Medicaid program is bringing in far less revenue than originally expected and could fall short of projections by as much as $125.7 million. However, due to the way the tax was enacted it is not expected to have a major impact on Medicaid funding. The Illinois Department of Revenue (IDOR) has…
On June 30, 2011 the Civic Federation released Recommendations for a Financially Sustainable City of Chicago. The report offered a comprehensive set of forty recommendations to improve the City’s long-term fiscal condition. The reforms could be implemented over the next few fiscal years and covered a wide array of functions from pensions to public safety. Next month the City will release its…
Yesterday, DuPage County Board Chairman Dan Cronin presented the DuPage County Proposed FY2013 Financial Plan to the County Board. DuPage County’s current fiscal year ends on November 30, 2012; the new 2013 fiscal year begins on December 1, 2012. Budget Overview DuPage County proposes a FY2013 budget of $431.8 million. The budget is a 1.8%, or $8.1 million, decrease from the FY2012 current budget…
This article discusses strong investor interest in the City of Chicago’s recent $271 million sewer bond sale, despite the City’s severe financial challenges including a $369 million projected deficit for FY2013. The article cites the Civic Federation’s warning that contributions to the City's police and fire pensions will increase from $476 million in FY2012 to $1.2 billion in FY2015.
