This article discusses Illinois’ FY2015 budget approved by State Legislators last week, which fails to provide adequate funding for a full year despite borrowing for operations and shifting revenue from FY2014. The Civic Federation said the budget is an example of the same fiscal irresponsibility that led to the State’s backlog of unpaid bills and dismal credit ratings.
UPDATE: Illinois General Assembly Passes FY2015 Budget On May 30, 2014, a day before the end of the Illinois General Assembly’s regular spring session, the Senate passed the FY2015 budget previously approved by the House. As discussed below, the budget does not cut spending or extend existing income tax rates that are scheduled to be rolled back midway through FY2015. It relies instead on short-term measures —including borrowing and shifting revenue from FY2014—to cover operating…
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-…
This article covers the analysis of Governor Quinn’s FY2015 Recommended Budget released today by the Institute for Illinois’ Fiscal Sustainability at the Civic Federation. The Civic Federation opposes the budget because it uses revenue from extending the 2011 temporary income tax increase for new spending, rather than reducing the State’s backlog of unpaid bills.
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 consolidation and dissolution of local units of government has been the subject of much discussion recently in Illinois. The purpose of this blog post is to briefly summarize a recent report released by the Illinois Local Government Consolidation Commission and other relevant legislation aimed at improving the efficiency and effectiveness of government operations by streamlining the procedures for annexing, consolidating and dissolving units of local government in Illinois. The Local…
This article reviews the $423 million capital plan released by Chicago Public Schools May 2, which is financed primarily through borrowing. The Civic Federation said the District needs to have a plan for absorbing the resulting increased debt service into a budget that is already severely constrained.
The Civic Federation joined with the Federal Reserve Bank of Chicago on April 23, 2014 to co-host a conference on ways that municipalities in Illinois can avoid or resolve fiscal stress. Experts, practitioners and academics from around the country gathered to discuss Chicago’s fiscal future and how different state intervention and revenue policies around the country have impacted local governments. Attendees to the sold out conference included civic and business leaders and government officials…
