IIFS Blog

05.17.13

Internet Sales Tax Legislation Does Not Automatically Apply to Illinois

Many cash-strapped states are looking to a proposal in the U.S. Congress to help collect sales taxes on internet purchases. The legislation could lead to a windfall in recaptured state sales tax revenues but currently would exclude Illinois. The U.S. House of Representatives and the U.S. Senate are...

05.09.13

Union-Backed Pension Reform Proposal Approved by Senate

A union-backed pension reform proposal sponsored by Senate President John Cullerton was passed by the Senate on May 9, 2013 by a vote of 40 to 16. Senate President Cullerton believes that Senate Bill 2404 is a less risky option for the State than legislation discussed here, which was approved by...

05.02.13

House to Consider Speaker’s Pension Reform Bill

UPDATE: On May 2, 2013, the House passed Speaker Michael Madigan’s pension reform proposal by a vote of 62 to 51. During the debate on the House floor, Speaker Madigan said that the changes are expected to reduce the State’s required contribution in FY2015 by $1.5 billion from FY2014...

04.24.13

Illinois Lacks an Executive-Legislative Consensus on Revenue Estimates

An important first step in preparing a government budget is the preparation and publication of revenue estimates for the upcoming fiscal year. The estimates provide the basis for the spending decisions that are subsequently incorporated into the budget. Under Illinois law, the Governor begins the...

04.11.13

Illinois Bond Sale Results Reflect State’s Financial Woes

Despite historically low interest rates, bonds recently sold by the State of Illinois continue to cost much more than debt issued by other states. Even when compared to similarly low-rated California bonds, the $450 million of tax-exempt bonds sold by Illinois appear to have cost the State at least...

04.05.13

Governor Proposes Reduced State Funding for Local Governments and Mass Transit

Faced with rising pension costs and modest revenue growth, Governor Pat Quinn has recommended a reduction in State of Illinois funding for local governments and statewide public transportation. In his FY2014 budget, the Governor proposed capping those distributions at FY2012 levels. Savings to the...

03.27.13

State Requests Extension for Cook County Medicaid Expansion Plan

The State of Illinois has asked the federal government to extend Cook County’s Medicaid expansion plan to ensure that recipients remain covered after the end of 2013. In a letter on March 21, 2013, the Illinois Department of Healthcare and Family Services (HFS) told federal authorities that...

03.22.13

State Pension Update: House Approves Limits to Pension COLA

On March 21, 2013, the Illinois House passed a bill that would significantly reduce the State’s pension costs by limiting automatic annual benefit increases for retirees and employees. House Bill 1165, approved by a vote of 66 to 50, addresses the largest single factor driving the State...

03.21.13

State Pension Update: Comprehensive Reform Proposal Rejected by Senate

On March 20, 2013, the Illinois Senate rejected a proposal designed to significantly reduce the State's burdensome pension costs but approved a narrower measure that applies only to active teachers outside of the City of Chicago. Senate Bill 35 was defeated by a vote of 23 to 30. The bill,...

03.14.13

Governor Proposes Corporate Tax Changes to Pay Down Bills

Governor Pat Quinn has proposed eliminating several corporate tax incentives to help pay down the State’s backlog of unpaid bills that is expected to total $7.5 billion at the end of the current fiscal year. The Governor’s proposal would eliminate three rules that allow corporations to...