by Kristina Rasmussen Dennis Byrne’s column poses some interesting questions about the Illinois state pension system — namely, if it goes belly up, will taxpayers be on the hook for paying those benefits? A new analysis prepared for the Civic Committee by the Chicago law firm Sidley Austin says “no”: The opinion acknowledges that the constitution creates a...
by Kristina Rasmussen The House just voted on the ill-crafted state government/union boss bailout bill. The bill passed, and it looks headed to President Obama’s desk for his likely signature. Unions representing public employees and teachers may be cheering, but many taxpayers are jeering, and for good reason. They understand this measure will only increase the pressure...
by Ashley Muchow What’s that? More bailouts? That’s right, I said it. More bailouts. Illinois’s own, Senator Dick Durbin, has confirmed his support of Senator Robert Casey’s (D-PA) brilliantly frivolous bill, ironically titled the Create Jobs and Save Benefits Act, to bailout approximately $165 billion of underfunded union pension funds. Believe it or not, our state government is...
by Kristina Rasmussen Congress is on its way to passing a $26 billion bailout of state and local government overspending. States like Illinois can’t afford to fund the costly Medicaid benefits and plush public employee union contracts they’ve bestowed, so the federal government is stepping in to fill the gap. Illinois is slated to “get” over $1...
by Joe O’Malley It is no wonder residents of Cook County are fleeing to other states. USA Today highlights a recent study that shows just how costly it is to do business in Chicago. The study focused on the local taxes that impact business travelers, such as taxes from hotels, rental cars, and meals. It found that...
by Kristina Rasmussen Illinois’s budget is required to be balanced by constitutional mandate, right? Then why has the budget been balanced only 15 of the 41 years between 1970 and 2010? The last time Illinois had a balanced budget was in 2001. We certainly didn’t have one this year. Charles Wheeler has a great article in the...
by Kristina Rasmussen Yesterday Will blogged about the “Summertime Blues” list of 100 silly stimulus projects (compiled by friend-of-the-taxpayer Senator Tom Coburn). Will didn’t mention it, but there was an Illinois project on that list, coming in at number 72: 72. Studying Whether a Soda Tax Will Stimulate Health (Chicago, IL) – $521,005 The current administration has previously...
by Heather Wilhelm Illinois may be a laggard in many key economic rankings, but it’s leading its Midwestern neighbors when it comes to state borrowing. CNN Money put together an interactive table showing how much each state owes on a per capita basis. If you live in Illinois, your share of the state’s borrowing bundle is...
by Ashley Muchow Long has it been the case that Washington politicians turn to the Zandi multiplier to justify stimulus spending under the conjecture that such spending triggers economic growth. Mark Zandi, of Moody’s Economy.com, is regularly consulted by politicians and the press for his “Fiscal Economic Bang for the Buck” chart postulating that spending initiatives, such...
by Kristina Rasmussen As Illinois families dive into back-to-school shopping, smart moms and dads will account for how looming tax hikes will affect their household spending. A combination of the soon-to-expire Bush tax cuts and Illinois Governor Pat Quinn’s income tax hike plan would take a painful chunk out of the already-stretched family budget. A new report...
by Ashley Muchow Hats off to Governor Pat Quinn and State Senator Pamela Althoff (R-McHenry) for their vocal support of greater transparency and responsible financial decision making in Springfield. It comes in the wake of a recent Institute report that showed 97 percent of the bill’s awaiting the governor’s signature have no fiscal note attached. After the legislature’s unprecedented...
by Amanda Griffin-Johnson It looks like Cook County was counting its eggs before they hatched. The county recently found out seven contracts totaling nearly $175,000 would not be reimbursed by grants from the federal government. The Chicago Sun-Times reports: Now a strapped Cook County government is left with the final tab for seven contracts — five...
by Amanda Griffin-Johnson Illinois Statehouse News (ISN) reports that “Gov. Pat Quinn’s office is, for the first time, acknowledging that the state may not get $750 million from Washington” for Medicaid. The Governor’s office was hoping that the Federal Medical Assistance Percentage (FMAP), the increased Medicaid reimbursements from the federal government, would be extended. Chances are...
by Kristina Rasmussen Budget & Tax News (one of my go-to publications for state fiscal policy news) features a great interview with Indiana Budget Director Christopher Ruhl. It’s refreshing and encouraging, and Illinois state leaders could learn a thing or two from it: Gov. Mitch Daniels (R), who took office in 2005, insists on fiscal discipline. One of his...