This article discusses Illinois’ partial income tax rollback that took effect January 1 and compares Illinois’ new tax rates to the rates of neighboring Midwestern states. The Civic Federation said the steep rollback will dramatically destabilize Illinois’ already weak financial condition and recommended an alternate income tax rollback plan in its State of Illinois FY2015 Budget Roadmap.
A drop in Illinois’ income tax rates—and uncertainty about the implementation of pension changes—could cause the State’s backlog of unpaid bills to grow to $9.9 billion by the end of the 2016 budget year, according to a new forecast by Governor Pat Quinn’s office. Along with the decline in income tax revenues, the three-year projection for the State’s general operating budget through FY2018 assumes an increase in expenditures, mainly for pension contributions and for health insurance for…
This Marketplace Morning Report discusses the expiration of Illinois' temporary income tax increase on January 1, 2015. As discussed here, the reduction will lead to a revenue loss of $1.9 billion in FY2015, net of any underlying economic growth. This report also mentions the Civic Federation's recommendation to expand the income tax base to include retirement income as part of a comprehensive strategy for stabilizing the State's finances.
The following posts were among the most highly read on the Institute for Illinois’ Fiscal Sustainability’s blog in 2014 and represent the most closely followed Illinois fiscal issues of the year: State pension reform and the State budget. States Face Legal Challenges Over Reduced Pension COLAs January 3, 2014 This blog reviews legal challenges to reductions in state pension COLAs in several states, considering the basis of the lawsuit and the state’s level of constitutional pension…
The Cook County Clerk’s Office annually releases a tax rate report that provides the tax rates for various taxing agencies within Cook County. It is important for property taxpayers to have an accurate picture of which governments receive their property tax dollars and for what purpose so that taxpayers may hold public officials accountable for the level of taxation imposed. The largest portion of a Chicago property owner’s tax bill goes to the Chicago Public Schools, which accounts for 53.74…
This article follows the passage of Chicago’s FY2015 budget by a 46-4 City Council vote. The Civic Federation supported the budget in its November 3 analysis and said the proposal is a reasonable response to the City’s immediate financial situation. The Federation also warned that long-term financial stability cannot be achieved without further pension reform action from the Illinois General Assembly.
Report applauds level of public input in planning, warns of declining pension health In a report released today, the Civic Federation supports the $187.4 million budget proposed by the Forest Preserve District of Cook County. The balanced budget holds the property tax levy relatively flat and minimizes the use of one-time resources. The Federation also commends the District for increasing the level of public input in its planning process. The full 61-page report is available here. “This…
Full Report Discusses Recent Progress, Fiscal Uncertainty Ahead In a report released today, the Civic Federation supports Cook County’s proposed FY2015 operating budget of $3.7 billion and praises the work of Board President Preckwinkle and her administration to reform County operations. The full 95-page report is available here. “Under the leadership of President Preckwinkle and her team, Cook County is continuing to become a more accountable and efficient steward of public resources,” said…
The Civic Federation supports Cook County’s proposed FY2015 operating budget of $3.7 billion for holding the property tax levy relatively flat and not including any new fines or fees. Instead, a $168.9 million shortfall is closed through a combination of revenue increases, expenditure reductions and management efficiencies. Under the leadership of President Preckwinkle and her team, Cook County is continuing to become a more accountable and efficient steward of public resources. Despite…
This article discusses Mayor Rahm Emanuel’s FY2015 Budget announcement for the City of Chicago on October 15. The Civic Federation said the budget is fairly conservative in addressing the city’s $297 million deficit, but lacks a detailed, long-term plan for addressing the City’s underfunded police and fire pension systems.
