February 9, 2018
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. This report presents the Civic Federation’s multi-year plan to stabilize Illinois’ finances and balance the State's budget.
While Illinois has ended its devastating two-year budget impasse, the enactment of a revenue and spending plan for FY2018 represents only the first of many difficult steps the State will have to take. Significant challenges remain, including a lowest-in-the-nation credit rating, ongoing budget deficits, remaining bill backlog, staggering public employee pension costs and a massive backlog of deferred infrastructure maintenance. The Federation’s proposal would eliminate the State’s operating deficit in FY2019 and clear the multi-billion-dollar backlog of bills by FY2023, allowing the State to begin building a rainy day fund to protect against future financial shocks.
As part of a comprehensive multi-year plan, the Civic Federation recommends that the State limit spending growth, place a constitutional amendment on the ballot to clarify the pension protection clause, broaden the sales tax base, introduce a new capital plan and consolidate and streamline government units throughout the State.