A key component of Cook County’s plan to remake its public health system was rejected by a State of Illinois board on May 10, 2011, adding to concerns that the County might have difficulties implementing its FY2011 budget. At a meeting in Joliet, the Illinois Health Facilities and Services Review Board (Health Facilities Board) rejected by one vote the request to end inpatient and emergency room services at Oak Forest Hospital. The Cook County Health and Hospitals System wants to turn the Oak…
The State of Illinois’ largest area of capital investment, transportation projects, received a funding boost this week when the federal government announced additional grants to support high-speed rail projects in Illinois. The U.S. Department of Transportation notified Illinois in the past week that it would receive two additional grants for high-speed rail. On May 4, 2011, the State learned it would get another $186 million in funding to continue upgrading tracks to facilitate faster…
The Civic Federation opposes Governor Pat Quinn’s $52.7 billion FY2012 recommended operating budget for the State of Illinois because it is unbalanced by approximately $2.4 billion and is based on the premise that long-term borrowing is the right tool to dig the State out from under its massive backlog of unpaid bills and other obligations. To the contrary, the Governor’s proposed borrowing is likely to make the State’s financial condition worse over time. Although the Civic Federation is…
The Pew Center on the States recently released its report card on the health of state pension systems. Just as they were last year, the funding status of Illinois’ pension systems is the worst in the nation, with the State only funding 51% of its liabilities through FY2009. States in marginally better shape include West Virginia with 56% funding and Oklahoma at 57%. Illinois has its work cut out as it tries to restore solvency to its pension systems. Pension funding best practices recommend…
Governor Pat Quinn’s recommended FY2012 budget for the State of Illinois proposes that General Funds appropriations for the State Employees’ Group Insurance Program more than double to $1.4 billion from $695.8 million in FY2011.[1] This proposal, which reflects significant underfunding of the program in FY2011, has drawn more attention to how much the State pays for employee and retiree healthcare.[2] The State Employees’ Group Insurance Program provides medical, dental, vision and life…
Although the State of Illinois' FY2011 tax amnesty program brought in more than $700 million of delinquent tax payments owed by taxpayers and business, only $12 million of that revenue can be considered new funds. As previously discussed on this blog, the tax amnesty program approved by the Governor and General Assembly allowed payment of personal income tax, corporate income tax and sales tax owed to the State from previous years without the usual interest and penalties charged for late…
General Funds represent the largest component of the State of Illinois budget and are mainly used to support the regular operating and administrative expenses of state agencies through annual appropriations by the General Assembly.[1] General Funds are also diverted to Other State Funds to make debt service payments on bonds and for a wide range of other legislatively required transfers—from distributing state income taxes to local governments to promoting thoroughbred breeding and racing.…
Although it includes deep cuts to some agencies and programs, the FY2012 budget proposed by Governor Pat Quinn includes increases in other areas that would more than offset the reductions. In all, the proposed budget for FY2012 would increase General Funds appropriations for agency operations by more than $1.0 billion. General Funds appropriations make up the majority of the State’s operating budget and are the part over which the Governor and legislature have the most discretion. Total…
After three years of increasing budget deficits, the State of Illinois is expected to see a smaller budget gap at the end of FY2011 because of tax increases and expanded borrowing for operations. The FY2011 year-end deficit is currently projected to total $4.4 billion, according to Civic Federation calculations based on information in Governor Pat Quinn’s FY2012 recommended budget. That compares with a total budget gap of $6.3 billion in FY2010. The table below shows factors contributing to…
Illinois Senate President John Cullerton has recently suggested that school districts should begin contributing a larger share of the employer contribution to the Teachers’ Retirement System of the State of Illinois. President Cullerton noted that this change would relieve some of the financial pressure on the State, which has borrowed to make its pension payments for the past two years. He has also stated that it would lead school districts to more carefully consider the effects of their…
