The Illinois General Assembly’s Commission on Government Forecasting and Accountability (COGFA) began holding public hearings on October 5, 2011 on Governor Quinn’s proposal to close seven state facilities. COGFA is required under the State Facilities Closure Act (30 ILCS 608) to hold public hearings on the proposed closing of prisons, youth centers and centers for the mentally ill and developmentally disabled. The Act also requires COGFA to issue an advisory opinion on each proposed closure.…
This report examines the State of Illinois’ operating and capital budgets as enacted for Fiscal Year 2012, which began on July 1, 2011 and ends on June 30, 2012. Despite a major income tax increase implemented in January 2011, the total General Funds deficit is projected to grow in FY2012 and the State continues to deal with its financial problems by delaying payments to vendors and local governments. Read the press release here.
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…
Two months after the start of the State of Illinois’ 2012 fiscal year on July 1, 2011, Governor Pat Quinn has proposed the closure of seven state facilities and the layoff of more than 1,900 employees in order to cope with a funding shortfall for certain agencies in the budget passed by the General Assembly. At a press conference on September 8, 2011, the Governor said he plans to close a prison, a juvenile boot camp, three mental health institutions and two institutions for the developmentally…
New rulings by the Illinois Department of Revenue have reignited a debate over whether the State’s non-profit hospitals provide adequate charity care to patients in exchange for their property-tax exemptions. On August 16, 2011 the Department of Revenue denied property tax exemptions to three hospitals and said it was reviewing applications from 15 others seeking exemptions . As is customary for the Revenue Department, the rulings state that the ownership and use of the properties do not…
After twice rejecting the plan, a State of Illinois board voted on August 16, 2011 to allow Cook County to close Oak Forest Hospital. The Illinois Health Facilities and Services Review Board approved the proposal by a vote of 7 to 1, with one member voting present. It was the first time that the Health Facilities Board had considered the Oak Forest closure since Governor Pat Quinn in June 2011 filled three vacancies on the nine-member board. All of the Governor’s new appointees voted for the…
A recent mid-year report issued by Cook County provides more details on the budget difficulties facing the County’s public health system in the 2011 fiscal year that ends on November 30, 2011. The required FY2011 county subsidy to the Cook County Health and Hospitals System is estimated at $371.2 million, according to data in the report. That compares with a budgeted subsidy for the year of $280.1 million. As a result, the Health System’s deficit—the gap between budgeted and actual financial…
Governor Pat Quinn signed the State of Illinois’ FY2012 budget on June 30, 2011, a day before the start of the new fiscal year. The FY2012 budget is expected to generate a mountain of unpaid Medicaid bills and a possible court battle over union pay raises. In signing the budget, which includes $32.987 billion in general operating funds, the Governor reduced the budget passed by the General Assembly on May 31, 2011 by $376.4 million. The main cut involved a $276.0 million reduction in the…
The Federal Reserve Bank of Chicago recently co-hosted a conference featuring analysis and discussion among local and national budget experts to better understand the fiscal condition of states and prospects for economic recovery after several years of ongoing financial stress. The meeting was co-hosted by the by the Federal Reserve Banks of Philadelphia and New York in partnership with the John D. and Catherine T. MacArthur Foundation and the National Association of State Budget Officers (…
Since Cook County passed its FY2011 budget in February 2011, it has been evident that the County’s public health system would face major hurdles in achieving the budget goals. The size of those hurdles became clearer on June 24, 2011 at a meeting of the Board of Directors of the Cook County Health and Hospitals System. The Health System is expected to be slightly under budget on expenses for FY2011, which ends on November 30, 2011. However, net revenues are currently projected at $80 million to…
