Issues: State Employee and Retiree Health Care

The State of Illinois provides generous heath care benefits to its employees and retirees, benefits now estimated to be underfunded by $24 billion. Other Post Employment Benefits (OPEB) costs such as retiree health care are paid for by the state using a pay-as-you-go method, which means monies have not been set aside in a separate fund or trust to pay down this existing liability. Read more about IIFS analyses of the state’s health insurance program as well as our recommendations for reform here.

Recent Research

  • 04.26.10

    State of Illinois FY2011 Recommended Operating and Capital Budgets: Analysis and Recommendations

    The Civic Federation opposes Governor Pat Quinn’s $52 billion FY2011 recommended operating budget for the State of Illinois because it is unbalanced and does too little to address the State’s fiscal crisis. The Governor’s recommended budget borrows billions to pay for operations while continuing to ignore the massive backlog of unpaid bills, which will make the State’s financial condition worse.

    Although the Civic Federation is encouraged that Governor Quinn has signed significant pension reform legislation and recommends some reductions in spending, we cannot support his FY2011 State of Illinois operating budget because it does not effectively stabilize state finances or substantially reduce the State’s $12.9 billion deficit going into FY2011.

  • 02.22.10

    A Fiscal Rehabilitation Plan for the State of Illinois

    An Analysis of the State’s Fiscal Crisis and Actionable Recommendations for Governor Pat Quinn and the Illinois General Assembly

    Please visit the Illinois Fiscal Rehabilitation Plan web page for a comprehensive look at the report.

  • 05.11.09

    State of Illinois FY2010 Recommended Operating and Capital Budgets

    The Civic Federation's Institute for Illinois' Fiscal Sustainability produced this analysis of the proposed FY2010 Illinois operating and capital budgets. The Civic Federation does not support the proposed operating budget because it raises taxes without fixing the state's structural deficit. If significant pension and employee healthcare reforms are implemented, the Federation could support a smaller income tax increase targeted at reducing the state's existing obligations in the areas of Medicaid and pensions.