State of Illinois FY2013 Budget Roadmap: Budget Overview, Projections and Recommendations for the Governor and the Illinois General Assembly
January 30, 2012
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. The FY2013 Roadmap includes a review of Governor Quinn’s three-year budget plan, a rough five-year budget projection for FY2013 to FY2017 and recommendations for the Governor and General Assembly to improve the state’s financial condition.
The Civic Federation’s Illinois research institute warns that Illinois could face an unprecedented $34.8 billion backlog of unpaid bills if action is not taken immediately by the Governor and General Assembly to stabilize the State’s finances in FY2013 and beyond. The Federation’s five-year forecast incorporates known spending pressures in the areas of Medicaid, health care and pensions while keeping other areas of spending flat and takes into account future revenue expectations including the scheduled reduction in income tax rates beginning in FY2015.
The increase in the State’s unpaid bills is driven by an unsustainable rise in State Medicaid costs and rising pension costs. The Civic Federation urges aggressive implementation of Medicaid reform legislation passed in January 2011. In this analysis, the Federation also recommends for the first time that current Illinois retirees and employees hired before January 1, 2011 receive reduced annual increases to their pension benefits.