On June 27, 2013, Cook County Board President Toni Preckwinkle released a report on preliminary budget estimates for fiscal year 2014, which begins on December 1, 2013 and ends November 30, 2014. The report provides an overview of mid-year FY2013 revenues and expenditures, expected current year-end estimates for FY2013 and projected revenues and expenditures for the upcoming FY2014. The preliminary budget report is required by Executive Order 2012-1, issued by Board President Preckwinkle…
The FY2014 budget for the State of Illinois approved by the General Assembly has an operating deficit of $89 million, according to documents published in connection with an upcoming State bond sale. The legislature’s budget authorizes General Funds spending of $35.699 billion for the year that begins on July 1, 2013, the bond documents show. General Funds revenues are projected at $35.610 billion, resulting in an operating deficit of $89 million. The bond-related disclosure is the first formal…
Despite increasing its revenue estimate on the final day of the regular legislative session, the Illinois General Assembly appears to have enacted a spending plan for FY2014 that exceeds the State’s expected resources. On May 31, 2013, the legislature increased its General Funds revenue estimate for FY2014 to $35.4 billion in a resolution passed by the House of Representatives (HR389). That was an increase of $365 million over its original revenue estimate of $35.1 billion adopted in House…
Due to its large backlog of outstanding bills, the State of Illinois has permanently extended its annual deadline for paying old bills to December 31—six months after the end of the fiscal year. The extension was enacted without fanfare in August 2012 as an amendment to the State Finance Act. Beginning in FY2013, the General Assembly gave the Comptroller’s Office six months after the fiscal year ends on June 30 to make the required payments. Permanently extending the deadline is a reflection of…
Due to a surge in income tax receipts, the Illinois Comptroller’s Office has been able to reduce the State’s backlog of unpaid bills by $3.8 billion in the last four months. General Funds bills and other payables in the Comptroller’s Office declined by 54.8% to $3.1 billion on April 30, 2013 from $6.9 billion on December 31, 2012. In addition to bills owed to vendors, State obligations include payments owed to school districts, universities and pension funds and fund transfers to support State…
This segment discusses an internet gambling proposal sponsored by Senate President John Cullerton. The Civic Federation maintains its position on gaming expansion from last November and said the modest potential revenue attached to gaming expansion pales in comparison to the State’s $97 billion pension liability and nearly $7 billion backlog of unpaid bills. Chicago News and Weather | FOX 32 News
This editorial supports a proposal by Alderman Ameya Pawar to create an independent budget office for the Chicago City Council. The Civic Federation recommended an independent budget office in its 2011 report, Recommendations for a Financially Sustainable City of Chicago, because it would allow aldermen to seek independent, professional expertise before considering major legislation, including the annual budget.
This article discusses the State of Illinois FY2014 Recommended Budget Analysis released May 13 by the Institute for Illinois’ Fiscal Sustainability at the Civic Federation. The analysis supports the Governor’s proposed budget as a stopgap but says the overwhelming constraints on this budget further demonstrate the urgent need for comprehensive pension reform.
(The full content of this article is only available to the publication’s subscribers.) This article discusses the State of Illinois FY2014 Recommended Budget Analysis released May 13 by the Institute for Illinois’ Fiscal Sustainability at the Civic Federation. The analysis shows there is little chance for the State to address its nearly $7 billion backlog of unpaid bills until its unsustainable pension costs are reduced.
The Civic Federation supports Governor Pat Quinn’s $62.4 billion FY2014 recommended operating budget for balancing revenues and expenditures without borrowing and making progress toward reducing the State’s backlog of unpaid bills. However, this budget proposal is only a stopgap that further demonstrates the urgent need for comprehensive pension reform. The State’s pension costs, including debt payments on past borrowing for pensions, will consume nearly 25% of State-source General Funds…
