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

  • 01.30.12

    State of Illinois FY2013 Budget Roadmap: Budget Overview, Projections and Recommendations for the Governor and the Illinois General Assembly

    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.

  • 01.30.12

    Illinois Faces Financial Disaster; Urgent Need for Medicaid and Pension Reforms

    (CHICAGO) 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 new FY2013 Budget Roadmap analyzes the state’s current fiscal position, reviews Governor Quinn’s three-year budget plan, presents a rough five-year budget projection for FY2013 to FY2017 and provides recommendations to improve the state’s financial condition. The full 53-page report is available at www.civicfed.org/iifs.

  • 11.11.11

    Civic Federation 2012 Legislative Priorities

    The Civic Federation's legislative priorities for 2012 include public pension reform, requiring the State of Illinois to develop and implement a capital improvement plan, dissolving the Illinois International Port District, creating a new governing board for the Cook County Forest Preserve District, requiring all counties to hold budget hearings and large counties to produce timely annual audits, enacting tax increment financing reporting reform, requiring school financial management accountability reforms and authorizing state and local government entities to establish trust funds for the advance funding of retiree health care.