Tax and Budget

New Details Emerge on Illinois' "Tier 3" Pension Plan

Release: September 27, 2017

Illinois' fiscal year 2018 budget introduced major changes to the state's public pension systems in an attempt to grapple with Illinois' roughly $130 billion in unfunded liabilities. One of the most important aspects of these changes was a new package of benefits. This new package, called "Tier 3," introduced a hybrid defined benefit-defined contribution plan in addition to the defined benefit plans of Tier 1 and Tier 2.

Governor Rauner’s Amendatory Veto of SB1 Has a Number of Negative Consequences for Schools Across Illinois

Release: August 14, 2017

While the Illinois Senate voted on Sunday to override the Governor's amendatory veto (AV) of SB1, the Evidence-Based Model for education funding reform, a new CTBA analysis has identified at least six aspects of the AV that would each threaten the ability of Illinois school districts to reach adequate funding to serve their students.

These deficiencies underscore the importance of passing SB1.

CTBA finds that Governor Rauner's AV would frustrate SB1's core purpose of creating an adequate and equitable education funding formula in a number of ways, including by weakening:

Governor Rauner’s Amendatory Veto of SB1 Artificially Inflates the Equalized Assessed Value of Most School Districts—Thus Under- Funding the Classroom

Release: August 7, 2017

CTBA analysis shows that school districts around the state would see their funding threatened by Governor Bruce Rauner's amendatory veto of Senate Bill 1, the Evidence Based Model for School Funding Reform.

The Cost of a Two-Year Property Tax Freeze For Illinois Schools: Up to $830 Million

Release: June 23, 2017

Governor Bruce Rauner has made a property tax freeze a centerpiece of his demands for a full state budget, and the Illinois Senate passed a bill (SB484) that would enact a two-year freeze in May. But such a freeze, without provision for replacement revenue from the state, would effectively be a massive funding cut for K-12 education in Illinois.

Good Money After Bad: "Transferability" Would Make EDGE Tax Credits Even More Dubious Economic Policy

Release: May 15, 2017

The Economic Development for a Growing Economy ("EDGE") Tax Credit program has released more than $1.6 billion in credits to companies promising to create or retain jobs in Illinois since its creation in 1999. But the evidence that tax incentive programs like EDGE produce real economic growth is limited, and EDGE credits in particular have been abused by companies simply moving jobs from one part of the state to another, as found by a 2015 Chicago Tribune investigation.