Illinois Budget

Asset transfers to the state pension systems: Six questions to be answered

Release: February 18, 2019

One idea that has been proposed by a number of observers to repay some of Illinois’ pension debt is an “asset transfer.” Under this proposal, the state (or the City of Chicago, which is also facing a large pension debt problem) would make a contribution to the pension systems in the form of a publicly owned property, such as a tollway or lottery, rather than in the form of cash.

More of the Same: The FY2019 General Fund Budget Fails to Address Illinois' Long-Term Structural Fiscal Issues

Release: October 2, 2018

The FY2019 Illinois General Fund budget is the first budget agreed upon by both the General Assembly and the Governor in Illinois since FY2015. Among the highlights of the budget is that the state will, fo rthe second year ina  row, increase funding for K-12 Education by at least $300 million over prior year levels, as required by teh new Evidence-Based Funding for Student Success Act.

Addressing Illinois’ Pension Debt Crisis With Reamortization

Release: May 21, 2018

Illinois' five state pension systems face a debt crisis after years of intentional borrowing from state contributions. The crisis is compounded by a backloaded repayment plan that calls for unrealistic, unsustainable state contributions in future years, putting funding for crucial public services at risk. Because the crisis is about debt, rather than benefits being earned by current and future employees, attempts to solve the problem through benefit cuts have failed.

Cutting Taxes for the Middle Class and Shrinking the Deficit: Moving to a Graduated State Income Tax in Illinois

Release: April 30, 2018

This report makes the case for a graduated rate state income tax in Illinois, and illustrates two possible rate structures that would accomplish each of three major objectives:

Three Problems With Gov. Rauner’s FY2019 Pension And Retirement Proposals

Release: February 16, 2018

This week, Gov. Bruce Rauner gave his fiscal year (FY) 2019 budget address, revealing his revenue and expenditure proposals for the upcoming year. The governor’s proposal relies on $1.5 billion in cost reductions to balance the budget, including:

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