February 15, 2011
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 actionable recommendations for the Governor and General Assembly for the coming fiscal year. This year the State of Illinois Budget Roadmap also includes an analysis and recommendations based on Governor Pat Quinn’s preliminary budget plans for FY2011 and three-year budget plan published on January 20, 2011.
The Civic Federation opposes Governor Quinn’s plan to borrow $8.75 billion over 15 years for unpaid bills and to prop up spending in FY2012. The Federation estimates that the borrowing would cost more than $3.4 billion in total additional interest costs over the life of the bonds. The Civic Federation recommends that the state pay down its backlog of bills through fiscal restraint, particularly by holding the line on spending through the end of FY2011. The Federation urges the Governor and General Assembly to work together to create a more sustainable budget plan for FY2012 and reform the state’s pension system.