Illinois’ large number of local government units – the largest in the United States at approximately 7,000 according to the U.S. Census Bureau – is often cited as a reason for high property taxes in Illinois and has fueled calls for government consolidation and efficiencies. In February 2015 former Governor Bruce Rauner created the Local Government Consolidation and Unfunded Mandates Task Force to study issues of local government and school district consolidation and unfunded mandates, and to…
A new study by a state commission in Pennsylvania compares the investment expenses paid by large public pension funds. Although such comparisons are difficult because of vast reporting discrepancies, the study still raises important questions about investment expenses of these funds—including some in Illinois. The Pennsylvania commission, established in 2017 by statute, was charged with reviewing the operations of two state pension funds and making recommendations to reduce investment costs…
The following is an infographic-style primer intended to concisely and accessibly present the most important information and data on the Illinois pension crisis. The series explores the history and magnitude of the State's pension challenges and offers options for addressing the problem. View this primer as a printable PDF. Sources and related links: COGFA Special Pension Briefing November 2018, State of Illinois General…
The Illinois General Assembly passed a budget for fiscal year 2019 on May 31, 2018 and Governor Rauner signed it into law on June 4, 2018. The Institute for Illinois' Fiscal Sustainability has since then continued to analyze the enacted State of Illinois budget, releasing periodic updates via the IIFS blog. All of the enacted budget content is gathered on this page for readers’ convenience. Illinois Passes Budget on Time; Fiscal Challenges Remain Originally published June 8, 2018…
2019 Civic Federation Legislative Priorities The Civic Federation's legislative priorities for 2019 include public employee pension reforms, consolidation of local government units in Illinois, enacting policies to rationalize the property tax system, creation of a Local Government Protection Authority, requiring the State of Illinois to build a rainy day fund, development and implementation of a capital improvement plan and improved…
When the State of Illinois enacted its budget for the current fiscal year in June 2018, it had a narrow surplus on paper of about $14 million. But a new report from the Governor’s Office estimates that the State’s actual financial result for FY2019 will be a budget deficit of more than $1 billion—a gap that could widen to $2.8 billion the following year without policy changes. The projected outcome in FY2019 is not a surprise, given concerns expressed last spring that the budget was based on…
Illinois’ contributions to its severely underfunded retirement systems are expected to increase significantly in the upcoming budget year, but the numbers could change due to pension buyout plans that have yet to be implemented. Proposed State contributions to the five pension funds are $9.1 billion in fiscal year 2020, which begins on July 1, 2019. That represents an increase of $679.9 million, or 8.0%, from the $8.5 billion in contributions originally required in the current fiscal year.…
A new study by the Kaiser Family Foundation found that Medicaid enrollment declined by 0.6% across the United States in 2018—the first nationwide drop since 2007. The decrease was linked to a stronger economy, which caused more people to gain jobs and health insurance, as well as increased efforts in some states to verify eligibility. The Kaiser study did not provide enrollment information for individual states. Data on the State of Illinois’ website, which is not strictly comparable to the…
The Civic Federation is a member of Transform Illinois, a coalition of organizations committed to greater government efficiency. Transform Illinois held its fourth annual Transformer Awards on Thursday, October 11, 2018, which honored three elected officials and one citizen for their work on government streamlining and collaboration. The award winners were: Senator Melinda Bush, representing areas of Lake County, who was recognized for her consolidation efforts at the State level. Senator…
The Illinois Estate tax is levied on net assets over $4 million of the estates of the deceased. Illinois does not have an inheritance tax, which is levied on assets received by the inheritors of an estate. Estate tax revenue is forecast to be $293 million in FY2019, of which 6% will go to the Estate Tax Refund Fund for overpayments. The remaining $275 million will go to General Funds, and represent about 0.7% of total General Funds Revenues. The following chart shows the history of estate tax…
