Impact on Illinois' Structural Deficit

The Impact of Flawed Tax Policy & Pension Debt Repayment Plans on Illinois’ Structural Deficit


October 21, 2019

The state of Illinois faces a significant structural deficit into the future. The report highlights the nature of the structural deficit and identifies two key causes: the state’s historically flawed  tax policy and the plan devised for repayment of Illinois’ pension debt. CTBA proposes both the adoption of the Fair Tax and a reamortization of the pension debt as described in the report titled: Addressing Illinois’ Pension Debt Crisis With Reamortization. Doing so would allow the State to ensure full funding for the Evidence Based Funding Formula while also improving the status of Illinois’ public employee pension system and eliminating the State’s structural deficit by 2042.

Topics:Tax and Budget, Illinois Budget, Income Tax, Revenue Policy, Pensions, Public Pensions

Tags:State Budget, State Revenue, Deficit, Illinois Economy, General Fund, Income Tax, Fair Tax, Illinois Pensions, State Employee Pension