by Ashley Muchow Steve Malanga’s article in the WSJ today covers a topic that is both timely and closely connected to Illinois’s deteriorating fiscal condition. One measure about to reach the lame-duck Congress floor is a call to extend Build America Bonds (BABs)–bonds used by states and municipalities to accrue nearly $160 billion in new debt...
by Ashley Muchow Using data from the CBO’s 2010 Long-Term Budget Outlook, Mercatus Center’s Veronique de Rugy has charted the long-term path of federal spending on three of its largest components–Social Security, Medicare and Medicaid, and interest on federal debt. Here’s the kicker: interest costs, if they remain on their current path, are set to become the majority of...
by Ashley Muchow Cook County Board President-elect, Toni Preckwinkle, recently warned county officials they would be responsible for making major spending cuts in their budgets to close the county’s $487 million gap. Preckwinkle met with elected county officials, including Cook County Clerk David Orr, Cook County Sheriff Tom Dart, and Treasurer Maria Pappas, asking each to cut...
President Obama will eventually agree to extend all the tax cuts if the Republicans stand firm and hold out for the full extension for all income levels. Extending the tax cuts helps Obama for his 2012 re-election regardless of how the economy performs. Allowing the tax hikes to go into effect could hurt him badly...
by Wesley Fox Many property taxpayers in Cook County are confused and angry by their property tax bills. While property value assessments are supposedly declining, tax bills are increasing leaving many asking, “Why?” According to one columnist at the Southern Star: I have been writing about the property tax for more than two decades now and still...
by Wesley Fox While many experts are trying to interpret the results of the election in Illinois, they might have an easier time determining the people’s views on taxes. In this year’s election there were dozens of referenda on the ballot asking voters if they support or oppose local sales and/or property tax increases. Of the...
by Wesley Fox According to the Rockford Register Star, Illinois will soon have to pay interest charges on the $2.2 billion it borrowed from the federal government. Illinois took out the loan to help pay out unemployment benefits after the state unemployment fund ran dry. Beginning on January 1st, the federal government will begin charging interest...
by Kate Piercy The city of Chicago has just approved 6 million dollars in tax increment financing (TIF) for Accretive Health Inc. “to pay for job training and the build-out costs” of a new facility, which will be located at 231 South LaSalle Street. By law, TIFs are intended to promote economic development in blighted areas,...
by Amanda Griffin-Johnson Since 2000, Chicago’s city budget has increased 11% (adjusted for inflation). Spending reforms are needed to ensure the long-term health of city finances, but it appears that Mayor Daley would rather continue depleting the city’s reserves. Failing to make tough spending cuts today will only make the situation worse down the road. The Chicago Tribune reports: The...
by Kristina Rasmussen Americans for Tax Reform just released its 2010 Illinois list of Tax Pledge signers: WASHINGTON, D.C. – Today, Americans for Tax Reform (ATR) released an updated list of incumbents and challengers in Illinois who have signed the Taxpayer Protection Pledge. These candidates have made a written commitment to their constituents to never raise their...
by Collin Hitt A new brief by the red-hot Civic Federation looks at the state budget in FY2011: “Total spending and transfers out increased by $543 million, or 1.6%, from $33.0 billion in FY2009 to $33.5 billion in FY2011.” Yes, programmatic spending is down. But pension payments are way up, 67 percent. Government in Illinois isn’t getting smaller yet...
In a recent survey of 750 Likely Voters in Illinois, Rasmussen Reports measured citizens’ views on the Illinois budget crisis. 73% of voters in Illinois blame the budget crisis in the state on politicians’ unwillingness to reduce government spending. 16% blame the taxpayer’s unwillingness to pay more in taxes. 10% are not sure who is more to...
by Ashley Muchow Illinois has received $8.4 billion in stimulus funds since the American Recovery and Reinvestment Act (ARRA) was passed in early February of last year. While these funds came as life preservers to some, a recent Mercatus on Policy study shows quite the opposite. According to Russell Sobel and George Crowley of the Mercatus Center, federal grant funding leads...
The Illinois Honest Taxation Pledge has another new signer! Senator Dale Righter (R-Matoon) reaffirmed his commitment to protecting taxpayers and being honest with voters through his signature today. The pledge asks incumbents pledge to oppose and vote against all tax hikes through the start of the 97th Session of the General Assembly in 2011. Previously, David Vaught the Illinois...