January 23, 2015 - 10:26am


January 23, 2015

The State of Illinois projected a major loss of income tax revenues in FY2015 due to the reduced rates for individuals and corporations that took effect on January 1, 2015. However, corporate income taxes have taken a steeper decline than originally projected and began to fall even before the rate declined to 5.25% from 7.0% halfway through the fiscal year.

The December 2014 monthly revenue report from the Commission on Government Forecasting and Accountability (COGFA) showed corporate income tax revenues declining by $89 million from December 2013. Receipts were also $217 million less for the first half of FY2015 compared to the first half of FY2014 (the State’s fiscal year runs from July 1 to June 30).


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January 21, 2015 - 5:45pm


January 21, 2015

The Civic Federation’s recent report profiling six townships in Cook County with the largest unincorporated population examined issues related to annexing unincorporated areas. The report described the unincorporated areas and identified many of the barriers that municipalities might face if they were to annex the unincorporated areas adjacent to their borders.


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January 16, 2015

Crain's Chicago Business

Crain's Chicago Business
January 16, 2015

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.

January 15, 2015 - 3:49pm


January 15, 2015

The fate of a proposal to use more than $5 billion in new federal funds to overhaul the State of Illinois’ Medicaid program remains unclear as a new gubernatorial administration takes office in Springfield.

As previously discussed on this blog, the five-year proposal focuses on developing more community-based alternatives to institutional care for individuals with disabilities, including supportive housing for people with mental health and substance abuse problems. The plan also seeks new federal money to accelerate the State’s movement toward managed care.


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January 15, 2015 - 1:20pm


January 15, 2015

The Civic Federation and IIFS blogs have written extensively about reductions to assumed rates of return on investment by State and some local public pension plans over the last several years. These changes are part of a nationwide trend, influenced partly by the low interest rate environment and by a larger debate over whether pension plans should use a risk-free rate of return to discount liabilities or the expected rate of return on investment, as used by most public pension plans.


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January 9, 2015 - 5:45pm


January 9, 2015

According to a recent study, the State of Illinois does not set aside enough revenue to account for fluctuations in its volatile tax sources and needs to improve its rules for making rainy day fund deposits in order to prepare for future financial challenges.

The extensive report includes an in-depth study of the last 25 years of State revenues, previous legislation intended to establish a rainy day fund in Illinois and a 50-state review of best practices for managing rainy day funds.


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January 7, 2015 - 11:00am


January 7, 2015

Annexation is the extension of municipal boundaries into adjacent unincorporated areas and the corresponding expansion of city services to those newly incorporated areas. In Illinois, municipal governments have the authority to determine and expand their boundaries, subject to the provisions of the Illinois Municipal Code.


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January 2, 2015 - 5:45pm


January 2, 2015

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.


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January 2, 2015

Marketplace

Marketplace
January 2, 2015

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. 

 

December 30, 2014 - 2:31pm


December 30, 2014

The following posts were among the most highly read on the Civic Federation blog in 2014 and represent some of the most closely followed local government issues this year:

Illinois General Assembly Passes Pension Reforms for Chicago
April 16, 2014


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