Although Governor Pat Quinn originally proposed a capital budget for FY2015 with no new debt-funded projects, the General Assembly approved an additional measure that added $1.1 billion in new road projects that will be funded through the sale of long-term capital bonds. As previously discussed here, the Governor’s recommended FY2015 capital budget included $19.5 billion in total spending, of which $16.5 billion represented reappropriations from previous years and $2.9 billion were pay-as-you-…
The capital budget proposed by Governor Pat Quinn for FY2015 represents the sixth year of the Illinois Jobs Now! capital spending program and the first year since its inception that new bond-funded projects are not included in the recommendation. The capital budget includes $2.9 billion in new appropriations that are funded on a pay-as-you-go basis and reauthorization of $16.5 billion in previously approved projects, bringing the total to $19.5 billion in requested spending authority. Bond-…
Plan Uses Revenue from Increased Income Tax Rates on New Homeowners’ Grant (CHICAGO) – In a new report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability opposes Governor Quinn’s recommended budget for FY2015 because it uses revenue from extending the 2011 temporary income tax increase for new spending. The State’s fiscal crisis demands that any increased revenue be used to stabilize State finances by significantly reducing its massive backlog of unpaid bills…
The Civic Federation opposes Governor Pat Quinn’s recommended budget for FY2015 because it uses revenue from extending the 2011 temporary income tax increase for new spending. The State’s fiscal crisis demands that any increased revenue be used to stabilize State finances by significantly reducing its massive backlog of unpaid bills. The Civic Federation is encouraged that the recommended budget recognizes the State cannot withstand a $1.8 billion reduction in revenues next year due to the…
As part of the FY2015 budget recommendation for the State of Illinois, Governor Pat Quinn provided two separate five-year projections for both “recommended” and “not recommended” budget proposals. The long-term outlooks show the implications of the extension of higher income tax rates in the recommended budget and the considerable spending reductions that would be necessary to balance the State’s budget if the increases were allowed to roll back under the not recommended budget. Under current…
The following posts were among the most highly read on the Institute for Illinois’ Fiscal Sustainability’s blog in 2013 and represent some of the most closely followed Illinois fiscal issues this year: Analysis of Pension Reform Proposal Shows Significant State Savings January 3, 2013 This blog examines a pension reform proposal introduced in the Illinois General Assembly late in 2012 by a bipartisan group of legislators. Actuarial reports showed that the proposal could immediately reduce…
As part of its ongoing analysis of State and local government budgets, the Civic Federation also reviews proposed capital budgets along with any planning documents provided in support of infrastructure investments. Although many governments approve new and reappropriated capital spending on an annual basis, few public entities in Illinois have based these expenditures on comprehensive capital improvement plans (CIPs). Unlike the operating budgets, which mostly require that all appropriated…
To support construction projects during the busy summer months, the State of Illinois issued $2.0 billion of capital purpose debt, which for the most part will be repaid from the State’s Capital Projects Fund. The Fund was created to receive the revenues from a package of new taxes and fees that was passed in FY2010 to fund the $31-billion Illinois Jobs Now! capital program. As previously discussed here, these revenue sources have lagged far behind the original legislative estimates. With the…
As the State of Illinois enters the fifth year of its $31-billion Illinois Jobs Now! capital spending program, revenue sources approved to fund the projects are still lagging far behind original projections. Revenues deposited in the Capital Projects Fund in FY2013 from dedicated taxes and increased fees approved by the General Assembly in FY2010 are between $300 million and $500 million short of the original expectations. The funding is needed to pay for anticipated debt service on more than…
This article examines the Chicago Infrastructure Trust, introduced by Mayor Emanuel in March 2012 to attract private sector funds to rebuild the City of Chicago’s aging infrastructure. It cites the State of Illinois Infrastructure report, which found that State and local governments could need to invest $300 billion throughout the next 30 years to maintain depleted public infrastructure throughout the State.
