Illinois taxpayers are getting a de facto raise as of Thursday, as the state’s income tax rate drops to 3.75 percent.

It will leave a massive revenue gap in the state budget, but analysts say it’s a good thing for taxpayers. Back in 2011, Gov. Pat Quinn called for a temporary increase to the state’s income tax rate, from 3 percent to 5 percent, in an effort to increase revenue.

The state raised about $31 billion from the tax hike, but Illinois still faces massive budget deficits.

An actuary hired by the state’s Auditor General concludes the state’s pension funding method increases the risk that the plans are becoming unsustainable.

The executive summary of the Cheiron report said delaying payments does not meet generally acceptable principles.

The AG-hired actuary concluded the funding method of ninety-percent by 2045 does not meet generally acceptable actuarial principles.

On his path to becoming Illinois’ next governor, equity investor Bruce Rauner boasted he would be able to fix the state’s massive financial problems, assuring voters, “I’ve been a success at everything I’ve done.”

As the Republican prepares to take the reins of power Jan. 12, that campaign theme is sure to be severely tested. Here’s a taste of what he faces:

Some state agencies are expected to run out of money for critical services little more than a month after he’s sworn in. That’s because the Democrat-approved budget Rauner inherits may be short at least $1.4 billion.

Illinois Gov. Pat Quinn says he hopes to convince lawmakers to agree to hold a special election in 2016 to replace late Comptroller Judy Baar Topinka.

Quinn appointed his budget director, Jerry Stermer, as interim comptroller after Topinka died last month. But Stermer’s term ends when Gov.-elect Bruce Rauner takes office Jan. 12.

Rauner has said that whoever he appoints should remain in office the next four years. But Quinn hopes in his last full week of office the special session he called for Thursday will result in lawmakers approving the special election.

Gov. Pat Quinn enters his final days in office with a last speech and special legislative session on the agenda, but it’s unclear whether fellow Democratic leaders will work with him on his proposal for a 2016 comptroller election or other issues he might raise.

The Chicago Democrat has kept a lower profile since losing on Nov. 4, aside from a weekend flurry of public stops. Political experts and lawmakers say his dwindling influence means little hope for a full commitment from legislators on his desire for an election to replace late Comptroller Judy Baar Topinka, or any last push to increase Illinois’ minimum wage. Aides also acknowledge the lower-key exit, saying he’s focused on slogging through clemency petitions and the transition of power to Republican Gov.-elect Bruce Rauner.

Quinn addresses the City Club of Chicago’s business and civic leaders for a Tuesday luncheon — a setting where he’s previously floated new ideas but this week could also talk about his legacy or future plans.

Over the past few years, Chicago mayor Rahm Emanuel has enraged public-sector unions by closing failing public schools and calling for pension reform. The head of the American Federation of Teachers, Randi Weingarten, went so far as to offer a local labor official $1 million in union campaign support to take on Emanuel, up for reelection in February. But private unions have a different view of the mayor.Building-trades groups like the Construction and General Laborers’ District Council have benefited from his infrastructure spending and have donated heavily to his reelection, while the hotel workers’ union, Unite Here, has openly endorsed him for boosting Chicago tourism. “There’s a lot of support I have from working men and women,” Emanuel retorted last year when asked about the public-sector-union opposition to his mayoralty.

Chicago’s labor rift isn’t unique. The goals of public and private unions are diverging. Government employees, determined to hold on to their pay and benefits, are fighting to defeat political leaders and candidates advocating fiscal reforms, such as limits on tax increases. Private unions, by contrast, see the nation’s sluggish economic growth as a threat to their members and are increasingly encouraging politicians to focus on private-sector job creation.

Nina Olson, the national taxpayer advocate, said at a conference recently that she worries it could rank as the worst since 1985, which was regarded as a disaster due to a computer failure, lost returns and delayed refunds.

The budget: Congress has shrunk the IRS budget over the past five years, while at the same time requiring the agency to administer even more complex laws.

The IRS topline budget for 2015 is about 10% less than it was in 2010. But the real drop is actually steeper since the 10% doesn’t account for cost increases that have occurred in the past five years.

Former Chicago Public Schools employee, with help from colleagues and vendors, orchestrated the theft of more than $870,000 by fraudulently billing the district for goods and services, according to the annual report from the district’s inspector general.

The alleged scheme involved a half-dozen former CPS employees and is the subject of an ongoing criminal investigation by the Cook County state’s attorney office, the IG’s report said. CPS is seeking to bar vendors and business owners involved in the scheme from getting future district contracts.

Most of the alleged fraud occurred at Michele Clark High School in the Austin neighborhood on the West Side, sources said.

Mayor Rahm Emanuel is taking charge Monday to rescue the University of Chicago’s faltering bid for the Obama Presidential Library and Museum, including planning for the first public discussions about the Chicago Park District sites the school seeks for the development.

There are now only two sites. As I reported last week – and its official today – the lakefront South Shore Cultural Center, a jewel of the park district, is off the table, leaving at issue about 10 acres in either Washington or Jackson parks.

President Barack Obama and first lady Michelle are looking for a campus-like setting for their legacy institution.