February 10, 2016
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 three-year plan to stabilize Illinois’ finances and addresses the State’s critical financial situation.
More than seven months into the current fiscal year, the State of Illinois continues to operate without a budget. Under current revenue and expenditure policies, the State’s backlog of bills could grow to $25.9 billion by the end of FY2019 according to the Civic Federation’s analysis. Despite this dire situation, the roadmap shows that through dedicated action and shared sacrifice, it is possible to enact a comprehensive plan to get Illinois back on sound financial footing and pay down the State’s backlog of unpaid bills.
As part of a comprehensive three-year plan, the Civic Federation recommends that the State limit spending, pay down bills, broaden the income and sales tax bases, expand the Earned Income Tax Credit to low income residents and take steps to address the State’s pension crisis.