The operating budget enacted by the State of Illinois for FY2011 is based on General Funds revenues projected to be slightly higher than last year’s, and so far actual monthly revenues appear to be on target to meet or exceed these expectations. This increase signals the State’s hope that FY2011 will be a transition year for economically sensitive revenues such as income taxes and sales taxes that have plummeted over the last two years. The revenue estimates and early indicators show that…
A new report by the Civic Federation’s Institute for Illinois’ Fiscal Sustainability (IIFS) shows why the State of Illinois is struggling to make its roughly $4 billion pension contribution in FY2011. The report reviews the State’s $53.5 billion operating budget for the current fiscal year, which began on July 1, 2010 and ends on June 30, 2011. The report focuses on the $25.8 billion General Funds budget, the largest component of the operating budget and the part of the budget over…
This report examines the State of Illinois’ $53.5 billion operating budget for Fiscal Year 2011, which began on July 1, 2010 and ends on June 30, 2011. The report focuses on the $25.8 billion General Funds budget, the largest component of the total operating budget. It is designed to provide Illinois residents with a resource to understand expenditure and revenue trends at the State of Illinois. Read the press release here.
The Civic Federation's legislative priorities for 2011 include public pension reform, requiring state government to develop and implement a capital improvement plan, the dissolving of the Illinois International Port District, creating a new governing board for the Cook County Forest Preserve District, reinstating means-tested transit discounts for seniors, requiring large counties to hold budget hearings and produce timely annual audits, enacting tax increment financing reporting reform,…
When the General Assembly reconvenes next week for its annual veto session, it is expected to continue deliberating whether to borrow in FY2011 to make its required pension payment. If approved, the borrowing plan would lighten the load on the already stressed General Funds of the State but would lead to dramatically higher debt service payments for almost a decade. This would be the second year in a row that the State issued pension related debt rather than make its required payment to the…
After experiencing several years of poor market conditions, three of the five Illinois State employee retirement funds have reduced their expected rate of return on investments. This rate, also known as the discount rate, is used to calculate the present value of the future obligations of the systems. Although the reductions were small, one percentage point or less, the move triggers a substantial increase in the present value of the commitments made by the State to its employees and…
As explained in its recent analysis of the State of Illinois FY2011 proposed budget, the Civic Federation opposes the practice of supplying money to the State’s pension funds through borrowing. Pensions are an annual operating expense and the use of debt to fund them is not sustainable, adding to the State’s mounting debt service burden and increasing future pressures on the operating budget. On Thursday the Civic Federation sent a letter to members of the Illinois General Assembly urging them…
An issue in this year’s election campaign for Illinois Governor has concerned the State’s budgetary trends since FY2009. Different conclusions can be reached depending on which numbers are included in the analysis. Counting pension contributions, debt service and legislatively required transfers yields different results. In the table below, the top line shows enacted General Funds appropriations. General Funds support the regular operating and administrative expenses of most state agencies and…
A recent poll of Illinois voters might help explain why elected officials have been reluctant to make difficult decisions to solve the State of Illinois’ fiscal crisis. The poll, by the Paul Simon Public Policy Institute at Southern Illinois University Carbondale, asked registered voters to choose among three different proposals for closing the State’s roughly $13 billion deficit in FY2011. More than half of the respondents—57.0%—said the State takes in plenty of money and can fix the problem…
The State appears one step closer to implementing new performance measurement requirements that may significantly improve the General Assembly’s annual budget appropriations process. Illinois Senate President John Cullerton announced this week that Senator Dan Kotowski would take a leadership role in the implementation of the “Budgeting for Results” provisions included in Emergency Budget Act of FY2011. The Civic Federation has consistently urged the State to develop a performance…
