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...
by Kristina Rasmussen “Oregon Raises Taxes, But Budget Situation Worsens.” There’s a lesson here for tax hikers in Illinois. Amber Gunn has the story in the August edition of Budget & Tax News: Oregon voters in January approved significant personal and corporate income tax hikes. The predicted increases in revenue have failed to materialize, however, and now the state...
by Will Compernolle The State of Illinois spent $6,795 on the “printing of pens” in fiscal year 2009 by Global Printing and Graphics. Between fiscal years 2008 and 2009, the State spent $9,294 on products and services from Global Printing and Graphics, including printing letterhead and printing of business cards. As we have blogged about before, the...
by Kate Piercy Despite Illinois’s dire pension system, which includes police, fire and public-sector employees, boosting public employee salaries shortly before retirement in order to put them on a path to a bigger and better retirement package has turned into common practice among government in Illinois. Illinois has the most underfunded pension system in the nation,...
by Brian Costin On Wednesday, the State of Illinois resorted to more borrowing and sold $900 Million in Build America Bonds to support public works projects. Unfortunately, due to Illinois rapidly deteriorating credit rating taxpayers are paying a premium. On face, the bonds will pay investors an average interest rate of 6.96 percent. Bad enough but...
Illinois is facing a budget crisis. The state’s revenue collections are low, and dropping. Yet we’ve continued to spend more than we’ve taken in from taxes – in 2006, in 2007, in 2008, in 2009, in 2010, and yes, in 2011. Some of the revenue shortfall can be blamed on falling collections due to a...
by Amanda Griffin-Johnson The U.S. Department of Transportation estimates that the states have spent a total of around $5 million of stimulus funds on signs “touting ‘The American Reinvestment and Recovery Act’ and reminding passers-by that the program is ‘Putting America Back to Work.’” ABC News reports that “the state of Illinois has spent $650,000 on about 950...
by Joe O’Malley Contrary to the free-market principle that businesses which make reckless decisions should fail, Chicago Democrats are now petitioning Treasury Secretary Timothy Geithner to bail out a local community bank. Its name is ShoreBank. According to the New York Times, ShoreBank made business decisions that were very poor: “An ill-timed, overly aggressive expansion at the...
by Kristina Rasmussen Talk of a soda tax is bubbling up again: CHICAGO (CBS) ― Feel like you’re taxed enough already? More could be coming. There’s an early push to explore taxing soft drinks that are sweetened with sugars – all to get you to stop buying them. CBS 2’s Kristyn Hartman reports it’s all about...