Taxpayer contributions to SURS increased 333 percent since 1998
Taxpayer contributions to SURS increased 333 percent since 1998
Employee contributions to the State University Retirement System, or SURS, have gone up by 16 percent since 1998. During the same time period, taxpayer contributions to university worker retirements increased by 333 percent. In 2012 alone, Illinois taxpayers contributed $730 million more to SURS than university employees did. And the disparity between taxpayer and employee...
By John Klingner
Illinois’ seemingly endless appetite: another $1.3 billion borrowing
Illinois’ seemingly endless appetite: another $1.3 billion borrowing
by Ted Dabrowski As if Illinois didn’t have enough debt to deal with, the state borrowed another $1.3 billion. The state says it needs the money for infrastructure projects. Illinois tapped the bond markets despite the current fallout from the state’s failure to reform pensions and the recent bond market instability, which drove states like...
Illinois cigarette tax hike falls $130M short of projected revenues
Illinois cigarette tax hike falls $130M short of projected revenues
Remember when the state of Illinois said its new $1 cigarette tax would bring in $350 million in additional revenue? Unless this tax garners an additional $138 million in the next 10 days, these lofty projections are about to crash and burn. The cigarette tax hike, which took effect a year ago this month, is...
By Hilary Gowins
Chicago Public Schools looking for cash can start by ending teacher pickups
Chicago Public Schools looking for cash can start by ending teacher pickups
Chicago Public Schools pension payment will increase by roughly $400 million due to the expiration of a temporary “pension holiday.” Local lawmakers knew this was coming but did nothing to prepare for the increased payment. The good news is there is a simple, responsible way to cut more than 30 percent of the increased pension...
By Benjamin VanMetre
Illinois pension debt to double as new Moody’s methodology kicks in
Illinois pension debt to double as new Moody’s methodology kicks in
It’s taken as fact that Illinois’ five state-run pension systems have a $100 billion funding shortfall. That’s what the official reports say. But all that’s about to change. Moody’s Investors Service is making good on its promise to evaluate state pension plans on more realistic assumptions. The rating agency has long critiqued the pension funds’...
Illinois lawmakers still shopping without price tags
Illinois lawmakers still shopping without price tags
In March, the Illinois Policy Institute released a report on the lack of fiscal notes – or legislative “price tags” – on legislative bills that passed the 97th General Assembly. Fiscal notes estimate the costs, savings and revenue gain or loss resulting from the implementation of proposed legislation. Crafted properly, fiscal notes can provide a wealth of...
By Jane McEnaney
The ‘temporary’ income tax hike was a lie
The ‘temporary’ income tax hike was a lie
When lawmakers passed the record 2011 tax hike they went on record making promises to taxpayers about the purpose and temporary nature of the tax hike. Now it’s clear that those promises were actually lies. When passing the tax hike, Gov. Pat Quinn said: “We have some temporary tax increases that are designed to pay our...
By Benjamin VanMetre
Chicago has highest gas prices in the country
Chicago has highest gas prices in the country
In the fight for the highest gas prices in America, Chicago now reigns supreme. Customers purchasing fuel in the city are now paying an average of $4.59 per gallon. That’s $0.13 more per gallon than when we last reported on Illinois’ high gas prices at the end of May. Many have chalked up Chicago’s consistently high gas prices to...
By Hilary Gowins
Illinois’ congressional delegation proposes radical changes to government spending
Illinois’ congressional delegation proposes radical changes to government spending
by Brian Costin When it comes to proposing radical changes to government spending, Illinois Democrats vastly outdo Illinois Republicans. In fact, a group of five liberal Democrats from Illinois propose spending increases that dwarf the spending cut proposals of any Republican in the country by a wide margin. This information comes from a new National Taxpayers...
Illinois General Assembly continues to ignore the basics of good public policy
Illinois General Assembly continues to ignore the basics of good public policy
by Ben VanMetre Illinois has a spending problem. State government spending has grown at three times the rate of inflation since 1990. Despite Illinois’ existing balanced budget requirement, the state hasn’t had a balanced budget since 2001. That’s because political leadership in Illinois has been ignoring the basics of good public policy for decades. Lawmakers had the...
Moody’s downgrades Illinois credit rating: 13th credit downgrade under Quinn
Moody’s downgrades Illinois credit rating: 13th credit downgrade under Quinn
by Ted Dabrowski Moody’s Investors Service downgraded Illinois’ credit rating to “A3” from “A2” after the General Assembly failed to move forward on pension reform before the end of the spring legislative session. The rating agency also says it has a negative outlook on Illinois’ credit: “The negative outlook reflects our expectation that Illinois’ pension...
Session wrap up: move against progressive income tax continues to gain momentum
Session wrap up: move against progressive income tax continues to gain momentum
Illinois lawmakers want to pass another multibillion dollar tax increase in Illinois in the form of a progressive income tax. That discussion materialized earlier this year when state Rep. Naomi Jakobsson, D-Urbana, proposed an amendment (HJRCA 2) to swap out Illinois’ constitutionally protected flat rate income tax for a progressive tax. The plan is to make permanent...
By Benjamin VanMetre
Fitch downgrades Illinois after lawmakers fail to pass pension reform
Fitch downgrades Illinois after lawmakers fail to pass pension reform
by Ted Dabrowski Fitch Ratings downgraded Illinois’ credit rating to “A-” from “A” after the General Assembly failed to move forward on pension reform before the end of the spring legislative session. In its statement announcing the downgrade, Fitch called Illinois’ pension liability “unsustainable” and said it was concerned about the state being able to...
Illinois General Assembly reverses Quinn’s education budget cuts
Illinois General Assembly reverses Quinn’s education budget cuts
Just a few months ago, the big education news in Illinois was Gov. Pat Quinn’s proposed $400 million cut to the General State Aid for Education budget – the state’s single-largest education expenditure. This article in the Chicago Tribune captured the frantic pleas of school boards, administrators and teachers at the time: Roger Eddy, a former state...
By Benjamin VanMetre