The Civic Federation announced its support for the City Colleges of Chicago FY2013 tentative budget on July 12, testifying at a public hearing and releasing its analysis of the proposed $659.5 million budget. The budget demonstrates continued fiscal discipline and attention to financial best practices as City Colleges enters the third phase of its multi-year Reinvention effort. The FY2013…
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…
On July 6, Chicago Public Schools announced its proposed 2012-2013 budget, which covers a $665 million deficit through a combination of cutting operations, raising property taxes and using $432 million in reserves to avoid significant program cuts. The Civic Federation is concerned the District would have no way to absorb unforeseen costs if the reserves are emptied, and said the plan leaves no…
This blog discusses plans announced by Chicago Public Schools (CPS) to drain its unrestricted reserve fund to help balance a proposed $5.16 billion spending plan for 2012-2013. The Government Finance Officers Association recommends governments keep a minimum of two months operating expenses (approximately $850 million for CPS) in reserve. The Civic Federation said the proposed budget would leave…
On June 27, 2012, the Office of Cook County Board President Toni Preckwinkle released its annual Preliminary Budget Estimates report for fiscal year 2013. The report summarizes mid-year FY2012 revenues and expenditures, expected current year-end estimates for FY2012 and projected revenues and expenditures for the upcoming FY2013.[1] The preliminary budget estimate is required by Executive Order…
Cook County’s public health system faces significant financial challenges in fiscal year 2013, although the outlook could improve if the federal government signs off on a plan to expand Medicaid coverage in advance of national healthcare reform. New financial projections for the Cook County Health and Hospitals System were included in the Preliminary Budget Estimates report for FY2013, issued on…
In light of the State of Illinois’ pension funding crisis, it has become more widely understood that the annual Cost of Living Adjustment, or COLA, plays a large role in the State’s overall pension costs. Just how large, however, has been difficult to pin down. As discussed here, detailed information on pension costs and projected savings due to proposed changes was hard to come by during the…
This article looks at the fiscal health of states around the country coming out of the recession. While many states are experiencing economic recovery, Illinois and California are still facing large budget gaps. The Civic Federation said Illinois will end FY2012 with over $8 billion in unpaid bills, even after the Illinois General Assembly closed a $2.7 billion gap in the State’s Medicaid program…
As part of the spring legislative session, the Illinois General Assembly approved a sweeping reform measure intended to add transparency, accountability and competition to the State’s Enterprise Zone Act. The final version of the measure, Senate Bill 3616, passed both chambers of the legislature unopposed on the final day of regular session, May 31, 2012. Earlier in the spring a series of…
State of Illinois officials expect unpaid Medicaid bills to decline to $600 million by the end of the 2013 budget year, but that prediction depends on legislation that has not yet passed the Senate. As discussed here, unpaid Medicaid bills on hand were projected to reach nearly $1.9 billion by the end of the current fiscal year on June 30, 2012, due largely to significant underfunding of the…
