Detroit files for bankruptcy
Detroit files for bankruptcy
Chicago’s triple-notch credit downgrade
Chicago’s triple-notch credit downgrade
Pension costs are already unraveling the state’s finances. Now it’s the city of Chicago’s turn. The city’s out-of-control pension liabilities and “accelerating budget pressures associated with those liabilities” has resulted in another credit downgrade by Moody’s Investors Service. The national credit rating agency downgraded the city’s nearly $8 billion in general obligation bonds to A3...
Detroit goes bust
Detroit goes bust
It’s official: the city of Detroit is bankrupt. The Detroit News reported that the city filed a petition for bankruptcy protection this afternoon. The city is in a severe economic crisis and simply lacks the ability to raise sufficient taxes to pay its mounting bills. The city’s population fell more than 26% from 2000 to 2012 and...
Cheaper across state lines: buying gas in neighboring Wisconsin and Indiana cities saves money
Cheaper across state lines: buying gas in neighboring Wisconsin and Indiana cities saves money
It’s no secret to drivers in the Greater Chicago area that gas prices are cheaper across state lines. Illinoisans who live or work near bordering states often drive the extra few miles out of their way to take advantage of cheaper gas in Wisconsin and Indiana. So how do gas prices – and taxes –...
Pat Quinn is fourth-highest paid governor in the country
Pat Quinn is fourth-highest paid governor in the country
At a time when the state of Illinois has more than $100 billion in unfunded pension liabilities, more than $6 billion in unpaid bills and is coming off of its 13th credit downgrade since 2009, it might shock Illinoisans to hear that Gov. Quinn is one of the highest-paid governors in the country. Gov. Pat Quinn’s salary is $177,412. According...
Comptroller says Illinois’ unpaid bills will grow by $1 billion in coming weeks
Comptroller says Illinois’ unpaid bills will grow by $1 billion in coming weeks
by Ben VanMetre Illinois is notorious for ignoring its financial obligations and racking up billions in unpaid bills. When it sits on those unpaid bills long enough, the state has to pay a penalty. Illinois is required by law to pay interest of 1 percent a month on its unpaid bills, also called invoices, when they become...
Growing pension costs for Illinois judges are burdening state taxpayers
Growing pension costs for Illinois judges are burdening state taxpayers
Judges’ contributions to the Judges’ Retirement System, or JRS, have gone up by 52 percent since 1998. During the same time period, taxpayer contributions to judges’ retirements increased by 306 percent. In 2012 alone, Illinois taxpayers contributed $47 million more to JRS than judges did. And the disparity between taxpayers and employee contributions is projected...
Illinois taxpayers shelling out more to pay for state lawmakers’ retirements
Illinois taxpayers shelling out more to pay for state lawmakers’ retirements
by Ted Dabrowski Legislators’ contributions to the General Assembly Retirement System, or GARS, have gone up by 33 percent since 1998. During the same time period, taxpayer contributions to legislators’ retirements increased by 237 percent. In 2012 alone, Illinois taxpayers contributed nearly $9 million more to GARS than legislators did. And the disparity between taxpayers...
Illinois and Chicago travelers still paying among highest gas prices in country despite price drop
Illinois and Chicago travelers still paying among highest gas prices in country despite price drop
Since last month, gas prices in Illinois have fallen below the $4 mark, dropping by $0.32. But Illinois’ average price per gallon is still almost $0.25 above the national average of $3.48. Chicago’s average price at the pump is even higher – $4.12. Though this is a significant drop from less than a month ago when Chicago had...
Quinn’s crystal ball
Quinn’s crystal ball
After several months of saying that pension reform inaction by the Illinois General Assembly costs taxpayers $17 million a day, Gov. Pat Quinn lowered that number to $5 million per day for fiscal year 2014. That’s surprising, since no pension reform bill was passed in the recent legislative session and the unfunded liability is still almost...
Taxpayer contributions to SURS increased 333 percent since 1998
Taxpayer contributions to SURS increased 333 percent since 1998
Employee contributions to the State University Retirement System, or SURS, have gone up by 16 percent since 1998. During the same time period, taxpayer contributions to university worker retirements increased by 333 percent. In 2012 alone, Illinois taxpayers contributed $730 million more to SURS than university employees did. And the disparity between taxpayer and employee...
Illinois’ seemingly endless appetite: another $1.3 billion borrowing
Illinois’ seemingly endless appetite: another $1.3 billion borrowing
by Ted Dabrowski As if Illinois didn’t have enough debt to deal with, the state borrowed another $1.3 billion. The state says it needs the money for infrastructure projects. Illinois tapped the bond markets despite the current fallout from the state’s failure to reform pensions and the recent bond market instability, which drove states like...
Illinois cigarette tax hike falls $130M short of projected revenues
Illinois cigarette tax hike falls $130M short of projected revenues
Remember when the state of Illinois said its new $1 cigarette tax would bring in $350 million in additional revenue? Unless this tax garners an additional $138 million in the next 10 days, these lofty projections are about to crash and burn. The cigarette tax hike, which took effect a year ago this month, is...
Chicago Public Schools looking for cash can start by ending teacher pickups
Chicago Public Schools looking for cash can start by ending teacher pickups
Chicago Public Schools pension payment will increase by roughly $400 million due to the expiration of a temporary “pension holiday.” Local lawmakers knew this was coming but did nothing to prepare for the increased payment. The good news is there is a simple, responsible way to cut more than 30 percent of the increased pension...