May 11, 2009
The Civic Federation's Institute for Illinois' Fiscal Sustainability produced this analysis of the proposed FY2010 Illinois operating and capital budgets. The Civic Federation does not support the proposed operating budget because it raises taxes without fixing the state's structural deficit. If significant pension and employee healthcare reforms are implemented, the Federation could support a smaller income tax increase targeted at reducing the state's existing obligations in the areas of Medicaid and pensions. The Civic Federation opposes the $26 billion proposed Illinois Jobs Now! capital plan because it is not tied to a comprehensive planning process and is unaffordable now and in the future. The analysis commends Governor Quinn for proposing bold changes to the state's pension systems.