Major Tax Increase, Cuts to Appropriations Did Not Fix State’s Finances (CHICAGO) The Institute for Illinois’ Fiscal Sustainability at the Civic Federation released its analysis of the enacted FY2012 State budget today. The report found that the spending plan will increase Illinois’ total general operating deficit to $5.0 billion by June 2012. The shortfall would be even larger if the State had not significantly underfunded Medicaid costs and business tax refunds. The full 56-page report is…
In April 2011, State of Illinois officials announced plans to award four new contracts for state employee health insurance to replace existing contracts that were scheduled to expire on June 30, 2011. The Illinois Department of Healthcare and Family Services (HFS) expected savings of approximately $102 million in FY2012 and more than $1 billion over the 10-year term of the new contracts. However, nearly four months after the State’s announcement and a month after the existing contracts were due…
The Civic Federation released today a comprehensive set of forty recommendations to improve the City of Chicago’s long-term fiscal condition. The new Federation report includes reforms that can be implemented now and over the next few fiscal years and cover a wide array of functions, from public works to procurement to pensions. The Civic Federation has in recent years become increasingly troubled by the condition of the City of Chicago’s finances. The Federation’s Chicago Finance initiative…
The purpose of this report is to provide the City of Chicago’s Mayor and City Council with detailed recommendations on ways to address the City’s serious financial challenges and create a government that is more efficient, less costly and more accountable. On February 14, 2011, the Civic Federation released Financial Challenges for the New Mayor which identifies the most significant fiscal issues facing the City of Chicago. Recommendations for a Financially Sustainable City of Chicago expands…
Although lawmakers have been considering ways to cut the State of Illinois’ costs for state retiree health insurance, the General Assembly adjourned on May 31, 2011 without taking action on the issue. A bill (Senate Bill 175) to require all retirees to pay a share of the cost for insurance premiums cleared the Senate Executive Committee on May 29 by a vote of 9 to 6. However, the sponsor, Senator Jeffrey Schoenberg, said he did not request a vote by the full Senate because many legislators had…
This article discusses increases to health insurance premiums paid by City of Chicago retirees. The Civic Federation says that the City should create a retiree healthcare trust fund.
A new report estimates that the State of Illinois could save between $260 million and $300 million in FY2012 by increasing the share of health insurance premiums paid by retirees and their dependents from the current average of roughly 9% to approximately 50%. As previously discussed on this blog, the General Assembly’s Commission on Government Forecasting and Accountability (COGFA) hired a consulting firm to study the cost of retiree health coverage in Illinois and other states and to present…
In this blog post, Greg Hinz discusses a Pew Center on the States report that found Illinois is the worst in the nation at funding its pension systems. The Civic Federation says that the news may serve as a signal to lawmakers that they must address the issue. Click here to read the Federation's blog post about the report.
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…
This article discusses the high cost of providing free health benefits to elected officials in suburban townships. The Civic Federation notes that providing free health care is not a best practice for the private sector or modern governments.
