Illinois Economy

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.

Center for Tax and Budget Accountability Releases New Report on the Cost of Disinvestment in Higher Education

CHICAGO – Between 2000 and 2015, Illinois cut nearly $1.4 billion from General Fund appropriations to Higher Education—even before the ongoing budget crisis, which has cost Illinois colleges and universities over a billion addition dollars. That is one finding from Illinois’ Significant Disinvestment in Higher Education, a new report released today by the Center for Tax and Budget Accountability (CTBA).

“Investing in higher education has always been important,” said Ralph Martire, Executive Director of CTBA. “But in today’s economy, the strong correlations between post-secondary education and economic viability make it more important than ever.”

The study details the drastic cuts to Higher Education in Illinois both during the current budget crisis, with General Fund appropriations falling from $1.95 billion in fiscal year (FY) 2015 to $755 million in FY2016 and $843 million in FY2017, as well as over the longer term.

“Between 2008 and 2015, Illinois cut per-student Higher Education funding by 54 percent—more than every state but Arizona,” said Danielle Stanley, CTBA Research Associate.

The report also underlines the cost of these cuts in human terms, including:

• Chicago State University laying off 40 percent of its non-faculty workforce and nearly shutting its doors last April
• The University of Illinois eliminating 484 staff positions
• Severe declines in enrollment in the last year, such as 1,100 students or 13 percent at Eastern Illinois University and 1,300 students or 7.5 percent at South Illinois University-Carbondale

Finally, the report describes how each dollar of funding cuts to institutions of Higher Education results in $2.29 lost to the state economy, as fewer students, and reduced worker wages, mean less economic activity generated by, for example, purchases at local stores.

PowerPoint presented by Ralph Martire at the Senate Revenue Hearing.

Presentation on the FY2015 budget proposals given at the National Associatioin of Social Workers Advocacy Day in Springfield, Illinois.

Governor's FY2015 Proposed General Fund Appropriations ($ Millions)

Economic changes and recent developments in public policy have created new demands on our transit systems. Many communities, whether urban, suburban or rural are looking for solutions to expand existing transit and transportation services to accommodate routes to work, especially for low income families, as a result of new growth outside of central business districts, the development of jobs away from affordable housing for working families, and the expansion of low wage jobs, particularly in the retail and service industries.

This Report takes a look at what government funding is available to support transportation-to-work projects, such as the Job Access and Reverse Commute program; what has driven the interest in these new services for lowwage workers; and how communities can access these funds and serve as a catalyst to creating new services.

An introduction to public transit in Illinois: what it is, how it’s funded, who the major stakeholders are and how to get involved. Includes a glossary of transit terminology.

A presentation on the Illinois economy, and how it relates to education funding.

Medicaid spending is often misunderstood and misrepresented because of the complexities of its financing structure.This Report is intended to: (1) clarify how Illinois’ Medicaid program is funded, (2) highlight the benefits to the state of Medicaid’s financing structure, (3) identify the percentage of state, own-source general fund spending dedicated to the program and (4) demonstrate the economic impact Medicaid spending (or cuts) has on the state and local economy.

A Fact Sheet on the impact Medicaid has on Illinois' economy.

Reduced funding in FY2011 would continue long-term pattern of spending cuts, harm vulnerable populations and fall disproportionately on small to midsized businesses, hurting the state economy. This Report finds that after adjusting for inflation and population growth, Illinois under funded human services by $4.4 billion from Fiscal Year 2002 through Fiscal 2010.