Since its beginnings in July with the overhaul of the Civic Federation’s website, the IIFS blog has focused mostly on issues related to the Illinois budget, including Medicaid, debt, and the State pension system. These posts expand upon topics discussed in IIFS research publications and events in the news. Discussion about Illinois’ FY2010 budget and how the State was planning to bridge a two-year, $11.6 billion budget gap was the focal point for a number of blog posts. “New Borrowing Worsens…
Taxpayers should get what they pay for, and pay for what they get—that is the core notion behind intergenerational equity in government. When governments live within their means, balancing revenues and expenditures without hoarding excess cash or borrowing from the future, they achieve intergenerational equity among taxpayers and others who pay for and receive government services. If today’s taxpayers pay less than the full cost of the services they use today, a future taxpayer will pay…
This article about a report on the States in the worst fiscal condition by the Pew Center on the States quotes the Civic Federation in its profile of Illinois’ budget problems. The Federation noted that Illinois’ budget hole is too large to be filled with just a tax increase.
The Civic Federation has enormous concerns about the fiscal risks associated with Governor Quinn’s “deal” to avoid CTA fare increases. Under the proposal, the Regional Transportation Authority will issue General Obligation bonds worth $83 million in both 2010 and 2011 and transfer the funds to the CTA for capital projects. The CTA will then shift a similar amount of its existing capital funds to its operating budget. The State of Illinois is supposed to then pay the first two years of debt…
The Civic Federation supports the Chicago Transit Authority’s (CTA) proposed FY2010 budget of $1.29 billion. Facing significant public funding short falls, CTA plans to close its $300.9 million deficit with fare increases ranging from 25 to 75 cents per ride, the elimination of 1,021 full-time equivalent positions, reductions in bus and rail service and the transfer of capital funds into general operating funds. The Federation finds that the transfer of capital funds into operating funds and…
A new report from the U.S. Government Accountability Office (GAO) says that more information is needed to determine whether local school districts that receive federal stimulus money from the State of Illinois are using the funds promptly, as required by federal regulations. The report stems from the GAO’s effort to track uses of funds under the American Recovery and Reinvestment Act of 2009 (ARRA) in Illinois, 15 other states and the District of Columbia. Together, these governments account…
The Governor’s office recently published its first official document that included details of the revenues and expenditures approved by the General Assembly for FY2010 fiscal year. The Official Statement accompanying the sale of $1.25 billion in short term debt on August 20, 2009 includes new information on the State’s fiscal condition. It should eventually be available along with the other bond issuance documentation on the Governor’s Office of Management and Budget website. Until then it is…
Starting today, increases in the taxation rates on soft drinks, personal grooming and hygiene products, and candy will take effect to help pay for improvements to Illinois’ infrastructure. The tax base of these three categories of merchandise will change from the low food and medicine rate of 1% to the higher general merchandise rate of 6.25%. Many municipalities add an extra tax to the base State rate. Please click here to find your local tax rate. The State sales tax on liquor will also…
Earlier this spring the Civic Federation opposed the $26 billion capital plan proposed by Governor Quinn because it was unaffordable over time and was not based on a capital improvement plan (CIP). The massive spending proposal was heavily debt funded, borrowing $10.6 billion for new projects (HB 312) and (HB 313). The Governor also planned to refinance the State’s existing $11.8 billion of capital purpose bonds scheduled to expire over the next 10 to 15 years in order to take advantage of…
More details are finally available on the FY2010 operating budget, and it would be difficult to describe it as balanced—even on paper. Depending on how you look at it, there is technically either a $157 million deficit or an $872 million surplus in the budget approved by the General Assembly and signed by Governor Pat Quinn on July 15, 2009. However, those numbers don’t take into account the $3.5 billion that the State plans to borrow to make its required pension payments. Nor do they reflect…
