Amid the frenzied activity at the end of the Illinois General Assembly’s spring session, a little-noticed tax on health insurers is expected to have a major impact on the State’s FY2020 budget. The new tax on managed care organizations (MCOs) is expected to bring in nearly $1.1 billion in additional federal Medicaid revenues, according to estimates by Illinois officials. The extra federal dollars will be used to cover about $500 million in existing Medicaid costs and to support almost $600…
Governor J.B. Pritzker’s FY2020 budget features an array of revenue-raising proposals, such as recreational cannabis and sports betting, that have attracted considerable attention. Another idea is less flashy but just as important to next year’s budget: a tax on health insurance plans. As outlined by the Governor, the tax on managed care organizations (MCOs) would generate $390 million to be used in place of general operating funds to pay for State Medicaid costs. The tax would also result in…
(CHICAGO) – In a report released today, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation announced its support for Governor Pritzker’s recommended FY2020 budget, because it represents a workable short-term plan to move Illinois forward. The full report is available here.
Click here to read the full report. Click here to read the press release for this analysis. SUMMARY Amid one of the longest economic expansions in U.S. history, the State of Illinois still faces daunting fiscal challenges. The list includes chronic operating deficits, a multi-billion dollar backlog of unpaid bills, crushing public pension costs and five consecutive years of population loss. Illinois has the lowest credit rating of any state and is ranked as one of the worst…
Following an unexpected influx of income tax revenues in April 2019, Illinois Governor J.B. Pritzker has dropped a controversial proposal to delay funding for the State’s financially troubled pension funds. The pension holiday, proposed in the Governor’s budget for the fiscal year that starts on July 1, 2019, was intended to save about $878 million through a seven-year extension of the statutory deadline for achieving 90% funding. The pension savings were a key part of Governor Pritzker’s plan…
Click here to read the full report. Click here to read the press release for this report. AT A GLANCE The Civic Federation released this report in advance of the April 2, 2019 Chicago municipal election for consideration by the public and candidates for Mayor, Treasurer, Aldermanic Office and the City Clerk. The report details the City of Chicago’s major financial challenges, as well as options and recommendations to stabilize the City’s financial position. SUMMARY In April 2019…
Governor J.B. Pritzker’s first budget proposal for the State of Illinois faced major challenges, including an operating deficit that the new administration estimated at $3.2 billion. Closing the gap by implementing a graduated income tax—a centerpiece of the Governor’s election campaign—was off the table in fiscal year 2020 because of the lengthy process required to amend the Illinois Constitution. Instead, the FY2020 recommended budget, which was issued on February 20, 2019, relies on $…
In light of Springfield’s past bad practices, group also cautions against gimmicks, pitfalls (CHICAGO) – In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability has proposed a multi-year plan to address the State of Illinois’ financial challenges. The full report is available here. The Federation presents a Roadmap each year for consideration by the Governor and General Assembly in advance of their budget negotiations. The Federation proposes two new…
Click here to read the full report. Click here to read the press release for this report. AT A GLANCE Prior to the release of the Governor’s annual budget recommendation, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation releases an analysis of the State of Illinois’ fiscal condition. This report presents the Civic Federation’s multi-year plan to stabilize Illinois’ finances. EXECUTIVE SUMMARY The State of Illinois FY2020 Roadmap describes the State of…
The following blog post examines the possibility of the City of Chicago starting a public bank. It is intended for informational purposes only. The Civic Federation has not taken a position on the idea, which has been discussed during the run-up to the Chicago municipal election later this month. A public bank is a financial institution owned and operated by a government on behalf of its citizens. It can be used to provide loans to governments for economic development projects and/or invest in…
