Illinois’ budget: Where does all the money go?
Illinois’ budget: Where does all the money go?
Even with record revenues, Illinois is suffering
Pension cost shift: why school districts would benefit from a 401(k)-style retirement plan
Pension cost shift: why school districts would benefit from a 401(k)-style retirement plan
The problem Illinois has the worst-funded pension systems in the nation. The structure of Illinois’ current defined benefit system coupled with the political unwillingness to reform has left the state’s pension systems in danger of running completely dry. Even the head of the Illinois Teachers’ Retirement System, or TRS, Dick Ingram, said the fund may...
Proposed TIF district would encompass Buffalo Grove government property
Proposed TIF district would encompass Buffalo Grove government property
by Brian Costin Property tax bills are hitting mailboxes this week for residents across the state. The average homeowner in Illinois has an effective property tax rate of 1.93 percent; this is the second-highest property tax rate in the country. Homeowners in Lake County pay a median effective property tax rate of 2.46 percent, which ranks...
Cross-Nekritz makes Illinois’ already-broken pension system worse
Cross-Nekritz makes Illinois’ already-broken pension system worse
HB 3411 known as Cross-Nekritz – the latest iteration of Nekritz-Biss – paints over Illinois’ pension crisis with more of the same broken policies that have pushed government retirement systems to the edge of collapse. This bill: Perpetuates unstable, unpredictable and unmanageable defined benefit systems – The key driver of Illinois’ pension crisis is the state’s defined...
Illinois state spending has grown 3x population plus inflation since 1990
Illinois state spending has grown 3x population plus inflation since 1990
Some individuals would have you believe that Illinois has a “revenue problem” – that the state needs to increase taxes again because it doesn’t have enough money in its coffers. But don’t be fooled; Illinois’ revenue is at an all-time high. The Illinois comptroller reported that Illinois’ fiscal year 2012 revenue was $68.6 billion. Even...
Taxes matter: Illinoisans respond to higher tax rates
Taxes matter: Illinoisans respond to higher tax rates
Ben VanMetre Senior Budget and Tax Policy Analyst Proponents of higher taxes often argue that tax increases don’t influence how individuals behave. But recent revenue numbers in Illinois show that’s simply not the case. According to the Associated Press, Illinois’ income tax revenue for 2013 will exceed previous forecasts by $1.3 billion. But revenue isn’t higher...
Illinois vendors finally receive payment – but not from the state
Illinois vendors finally receive payment – but not from the state
by Ben VanMetre Illinois is notorious for not paying its bills on time. Thousands of businesses, contractors and nonprofits choose to do business with the state of Illinois each year, providing everything from charity work to medical services to office supplies. These organizations are the state’s vendors. The problem is Illinois doesn’t pay these vendors...
Madigan’s pension plan would perpetuate Illinois’ crisis
Madigan’s pension plan would perpetuate Illinois’ crisis
Illinois Speaker Michael Madigan’s pension proposal (House Amendment #1 to Senate Bill 1) perpetuates Illinois’ crisis. The plan locks in the unmanageable defined benefit plan, guarantees the crowd out of core government services and continues the irresponsible pension payment ramp. Madigan’s plan keeps politicians in control of state employee pensions. By failing to get rid of...
Quinn hikes taxes on Illinois homeowners as part of ‘property tax relief law’
Quinn hikes taxes on Illinois homeowners as part of ‘property tax relief law’
by Brian Costin Gov. Pat Quinn just hiked my property taxes. And, if you’re younger than 65 years old, he just hiked your property taxes too. But if you attended Quinn’s bill signing ceremony for Senate Bill 1894 you would have seen him championing himself as a fighter against Illinois’ outrageously high property tax rates, as evidenced...
Lessons from the Edgar plan: Why defined benefits can’t work
Lessons from the Edgar plan: Why defined benefits can’t work
The problem The blame for Illinois’ pension crisis is often laid at the feet of state politicians who supposedly “skipped” payments and caused the state’s five pension systems to be underfunded. This has prompted legislators to add a “funding guarantee” to the current crop of pension reforms bills in order to stop any future pension...
States with no income tax had a surplus or no deficit in 2012
States with no income tax had a surplus or no deficit in 2012
States that dont have an income tax manage to stay out of the red, and many are even operating with budget surpluses. Texas, for example, currently foresees and $8.8 billion surplus over its current two-year budget cycle.
States with no income tax have something Illinois doesnt: jobs
States with no income tax have something Illinois doesnt: jobs
The average unemployment rate for states without an income tax is 6.6 percent. Illinois has the nations second-highest unemployment rate ringing in at 9.5 percent, or nearly three full percentage points higher than states that dont tax income.
Illinois taxpayers worked 115 days into 2013 to pay for taxes
Illinois taxpayers worked 115 days into 2013 to pay for taxes
April 25 marks Illinois Tax Freedom Day. This day commemorates the point in 2013 when Illinoisans have worked enough to cover the rising cost of federal, state and local government.
The pension funding guarantee: an irresponsible plan
The pension funding guarantee: an irresponsible plan
This memo provides a review of the funding guarantee provisions found in the pension reform bills that currently are or have been under consideration by the Illinois General Assembly.