Union perks prevent the upward mobility of all Illinoisans
Union perks prevent the upward mobility of all Illinoisans
Families in Illinois are struggling to afford higher education for their children. Incoming undergraduate students have seen tuition and mandatory fees at Illinois’ public universities increase by more than 60 percent since 2004. But that’s not the only problem. The government expects families to pick up the education bill for state employees, too. The Upward Mobility Program, available...
By Benjamin VanMetre
Twinkies, Ho Hos and the future of Illinois state pensions
Twinkies, Ho Hos and the future of Illinois state pensions
If Illinoisans want a glimpse of the state’s upcoming fiscal cliff, they should look no further than the failed negotiations between the maker of Twinkies and the unions that took them on. Hostess Brand’s bankruptcy is much more than the demise of famous brands like Twinkies, Ho Hos and Wonder Bread. It’s also the tragedy...
By Ted Dabrowski
Lawmakers’ pension fund posts negative investment return
Lawmakers’ pension fund posts negative investment return
For the third time in the last five years, the General Assembly Retirement System (GARS) has posted a negative investment return. Although the pension fund predicted it would earn $4 million in fiscal year 2012, it actually lost $81,448. The fund posted an investment return of -0.14 percent, far below the 7 percent it expected....
By Jonathan Ingram
Illinois’ pension debt grew by nearly $12 billion last year
Illinois’ pension debt grew by nearly $12 billion last year
Illinois’ pension systems are one year closer to complete insolvency. According to actuarial reports, the state’s five public pension systems owe a combined $94.6 billion. That’s up 14 percent from the $82.9 billion reported last year. Worse yet, none of the pension systems have enough assets on hand to pay benefits to those who have...
By Jonathan Ingram
Lessons from Denmark: taxing foods doesn’t trim waistlines – it drives consumers to greener pastures
Lessons from Denmark: taxing foods doesn’t trim waistlines – it drives consumers to greener pastures
Does the government have any business taxing foods it deems unhealthy? That was the status quo in Denmark until recently, when the country got rid of its controversial fat tax. This nanny-state policy, originally put in place about a year ago, increased taxes on all foods with a saturated fat content of above 2.3 percent. Authorities...
By Benjamin VanMetre
The irony of Cook County’s 2013 budget
The irony of Cook County’s 2013 budget
Taxes are about to go up again on many items for Cook County residents under the county’s 2013 budget. The Cook County Board of Commissioners approved a $2.95 billion budget for fiscal year 2013 by a landslide 16-1 vote last week. The budget includes a series of new revenue initiatives– a $1 per pack tax...
By Benjamin VanMetre
The progressive income tax: unfair, unstable, unresponsive and inefficient
The progressive income tax: unfair, unstable, unresponsive and inefficient
Gov. Pat Quinn and many groups in Illinois are pushing for the state’s next multibillion dollar tax increase – a progressive income tax. Passing a progressive income tax is “one of my goals before I stop breathing,” Quinn said. There has been a lot of misinformation about the progressive income tax floating around. It’s time to...
By Benjamin VanMetre
With the election over, will Obama bail out Illinois pensions?
With the election over, will Obama bail out Illinois pensions?
President Barack Obama has won a second term, giving him what he described earlier this year as “more flexibility” in his policy choices. Will one of those choices be bailing out state pensions? All across the country, states are grappling with pension systems that are massively underfunded. Under new accounting rules, Illinois’ unfunded pension debt stands...
By Jonathan Ingram
California’s Proposition 30: a sneak peek into Illinois’ future
California’s Proposition 30: a sneak peek into Illinois’ future
Last night, California Gov. Jerry Brown asked Californians to pay higher income taxes. Fifty-four percent of voters opted for the tax increase. A similar scenario is beginning to play out in Illinois. Under California’s current progressive income tax structure, the second-highest marginal rate of 9.3 percent kicks in at just $48,000. To put that into perspective,...
By Benjamin VanMetre
Sales tax referendums defeated
Sales tax referendums defeated
Last night, four Illinois counties had referendums asking voters if they wanted to create a new sales tax. All four referendums were defeated. The 2007 Illinois County School Facility Tax Act allows a referendum to go on the ballot once a school board representing 51 percent of a county’s population approves the measure. Recently, the...
By Brian Costin
Unused sick days add big payout for retired public school teachers
Unused sick days add big payout for retired public school teachers
For most Illinoisans, paid sick days count on a use it or lose it basis. But that
Illinois Policy Institute experts available to comment on proposed Cook County taxes
Illinois Policy Institute experts available to comment on proposed Cook County taxes
FY2013 budget includes cigarette tax hike, guns and ammo taxes and more taxes on businesses
TRS earned less than 1 percent on its investments last year
TRS earned less than 1 percent on its investments last year
On Thursday, the Teachers’ Retirement System announced its annual investment returns for fiscal year 2012. You may recall that it was predicting 8.5 percent returns. So what kind of returns did it actually get? A meager 0.76 percent. For comparison, the S&P 500 grew7.39 percent during fiscal year 2012, while the Dow Jones Industrial average grew 7.92 percent and...
By Jonathan Ingram