Whether the State of Illinois has spent more or less on education in the last five years has recently been the subject of intense debate. This blog post examines various factors that affect the calculation of education spending trends and expands on the Civic Federation’s recent report on the State’s enacted budget for FY2015. The Illinois State Board of Education provides resources for elementary and secondary education based on appropriations from the Illinois General Assembly. The following…
(The full content of this article is only available to the publication’s subscribers.) This article discuses findings in the FY2015 State of Illinois Enacted Budget analysis recently completed by the Institute for Illinois’ Fiscal Sustainability at the Civic Federation. The analysis found that while General Funds expenditures appear to decline in FY2015, net expenditures actually increase by $528 million due to shifting funds from year to year and between State accounts.
This article reviews the FY2015 State of Illinois Enacted Budget analysis by the Civic Federation’s Institute for Illinois’ Fiscal Sustainability. The analysis found the budget relies on borrowing and will increase the State’s backlog of unpaid bills to an estimated $6.4 billion, marking the first year-end increase in the backlog since FY2012.
This analysis finds that the State of Illinois' FY2015 enacted budget represents a return to unsustainable fiscal practices including borrowing for operations and underfunding known costs. This spending plan will increase Illinois’ backlog of unpaid bills to $6.4 billion at the end of FY2015, the first year-end increase since FY2012. Additionally, the budget fails to fund nearly $500 million in known expenses, including payroll, which will require either a supplemental appropriation in FY2015…
Spending Plan Halts Illinois' Recent Fiscal Progress An analysis released today by the Institute for Illinois’ Fiscal Sustainability finds that the FY2015 budget represents a return to unsustainable fiscal practices including borrowing for operations and underfunding known costs. This spending plan will increase Illinois’ backlog of unpaid bills for the first time since FY2012. The full 77-page report is available here. Fiscal progress prior to FY2015 included reining in agency expenses,…
In the past few months, it has become evident that Illinois vastly underestimated the number of newly eligible recipients who would sign up for Medicaid under the Affordable Care Act. However, the fiscal implications of the unexpectedly strong enrollment remain unclear. Governor Pat Quinn said on September 30, 2014 that 468,000 newly eligible individuals had enrolled in Illinois’ Medicaid program. The Governor made the announcement at an event marking the one-year anniversary on October 1 of…
As recently as 2011, the State of Illinois projected its backlog of unpaid income tax refunds could increase to more than $1.0 billion but by the end of FY2014 nearly all refunds were paid. In FY2015, for the second year in a row, the State transferred revenues originally diverted to pay for refunds back into the operating budget. In FY2014 the State ended the year with only $1.6 million in approved refunds yet to be paid compared to a peak of $735 million in FY2010. The State also received a…
A new law that restores certain Medicaid benefits previously cut due to budget pressures also adds a new service: kidney transplants for undocumented Illinois residents. Public Act 98-0651, signed by Governor Pat Quinn on June 16, 2014, authorizes State funding of kidney transplants for low-income non-citizens beginning on October 1. Recipients must have end-stage renal disease and already be receiving renal dialysis services covered by Medicaid. Immigrants’ rights experts said Illinois might…
Despite its name, a social impact bond (SIB) is not a debt instrument and does not require a government to issue debt. Rather, an SIB is a social impact financing arrangement whereby funds are raised from private sector investors to provide social service agencies the funding necessary to deliver their services. The government enters into a contract with a private sector entity working as an intermediary and the private sector entity’s chosen social service providers. The private sector…
Businesses do not always pay their bills immediately, and neither do governments. Delays of a month or two are standard practice, although prompt payment is preferable to take advantage of discounts, avoid penalties and maintain access to the largest possible pool of vendors. Since FY2009, long payment delays by the State of Illinois have been a highly visible sign of the State’s financial distress. With revenues under pressure due to the Great Recession, the State also faced growth in…
