IIFS Blog

08.11.16

Illinois to Seek Federal Funding for Behavioral Healthcare Overhaul

August 24, 2016 UPDATE 3: The State now plans to post the draft waiver application on August 26 and hold public hearings in Springfield on September 8 and Chicago on September 9. For more information, see the website of the Department of Healthcare and Family Services. August 19, 2016 ...

07.14.16

State Higher Education Funding Still Below FY2015

Despite a stopgap spending measure enacted on June 30, 2016, State of Illinois appropriations for higher education remain below expenditures in fiscal year 2015—the last year the State had a complete annual budget. For FY2016 and FY2017, appropriations from general operating funds and related...

07.01.16

Break in Illinois’ Budget Impasse Allows for Partial Spending Plan

After a yearlong stalemate, the State of Illinois finally saw a crack in its ongoing budget impasse on the last day of the fiscal year. The General Assembly rushed approval of bills authorizing a full year of preschool through high school education funding, including additional assistance for the...

06.17.16

Illinois Announces Reduced Swaps Risk and Completes Bond Sale

In advance of a $550 million bond sale this week, the State of Illinois announced it had negotiated new terms with the largest holder of Illinois swaps. The new lower level for termination of the swaps based on Illinois’ credit ratings dropped to Ba1 with Moody’s Investors Service and...

06.09.16

State Budget Progress Remains Elusive

The Illinois General Assembly ended its regular spring session on May 31, 2016 without passing a budget for the upcoming fiscal year. The legislature now has less than one month to complete a budget for the year that begins on July 1, and passage has become more difficult. After the end of May, a...

05.19.16

State Budget Impasse Continues as New Fiscal Year Approaches

With the current year’s budget still incomplete, the State of Illinois is now facing the prospect of starting another year without a financial plan. Due to a political dispute between Illinois’ Republican Governor and Democratic legislators who control the General Assembly, the State...

05.05.16

State Capital Budget Shortfall Continues to Grow

The State of Illinois can add another complication to its already stressed financial condition, an $800.7 million shortfall in its capital spending plan caused by failure in several of the dedicated revenue sources enacted to fund debt service. The State relies heavily on the sale of bonds to fund...

04.22.16

Illinois Swap Liabilities Looming After Downgrades

The State of Illinois’ budget impasse could cost taxpayers another $138 million due to liabilities associated with its swaps portfolio, if the lack of a spending plan causes its bond ratings to fall much further. As previously discussed here, two of the three major rating agencies cut...

04.06.16

Interest Penalties on Illinois’ Overdue Health Insurance Bills Keep Rising

Due to its growing backlog of overdue group health insurance bills, the State of Illinois is expected to pay a total of at least $454 million in interest penalties in the current and upcoming budget years, according to a new report. The report by the General Assembly’s Commission on...

03.25.16

Illinois’ State Budget Deficits Overshadow Continued Economic Growth

As the State of Illinois’ budget impasse continues to drag on, it is commonly overlooked that the underlying economy and tax base in the State continue to grow. In FY2017 the State of Illinois is projected to have an additional $631 million in General Funds revenues available compared to...

03.03.16

Proposed Illinois Budget for FY2017 Has $3.5 Billion Gap

With the budget for the current fiscal year still incomplete, Governor Bruce Rauner proposed a financial plan for the next budget year with an operating deficit of $3.5 billion. The proposed budget for fiscal year 2017, which begins on July 1, 2016 and ends on June 30, 2017, was issued on February...

02.17.16

Penalties on Overdue Bills Add Up for State of Illinois

In recent years, Illinois’ delayed payment of bills has caused financial stress for vendors, social service agencies and local governments. It has also cost the State $1.0 billion in interest penalties since fiscal year 2006, according to data from the Illinois Comptroller’s Office....

02.04.16

State Bond Costs Increase After Downgrades

Based on available market data, the State of Illinois paid approximately $40 million more for the $480 million of new bonds it sold in January than it would have before its bond ratings were downgraded at the end of last year. As previously discussed here, due to the FY2016 budget impasse, two of...

01.14.16

Governor’s Budget Projection Shows Growth in Unpaid Bills

A new report by Governor Bruce Rauner’s administration projects that the State of Illinois’ backlog of unpaid bills could grow to $25.0 billion in FY2019 from $4.4 billion in FY2015 based on current tax and spending policies. The three-year forecast, issued on January 6, 2016, covers...

01.07.16

Illinois Prepares for January Capital Bond Sale

After a 20-month hiatus from the municipal bond market, the State of Illinois recently announced it would sell bonds later this month in order to continue paying for ongoing capital projects in need of additional funding. According to the bond sale documents posted online, the State will sell $480...