Moody’s Investors Service recently cut the city of Chicago’s credit rating to Baa1 from A3, citing pension debt as a key factor in the downgrade. Chicago’s now has the lowest credit rating of all the major cities in the U.S., with the exception of Detroit. Moody’s saw something that’s being ignored by Illinois lawmakers –...
The unfunded liability for Illinois’ five state-run pension systems has officially passed the $100 billion mark, hitting $100.5 billion. Source: Commission on Government Forecasting and Accountability
Lawmakers in Indiana are pushing to cut the state’s corporate income tax rate to 4.9 percent in 2019 from 6.5 percent in 2015. If successful, the legislation would give Indiana one of the most competitive corporate income tax rates in the Midwest. Corporations in Illinois currently pay 9.5 percent of their income to the state...
The Illinois Policy Institute recently published a study titled “The crisis hits home: Illinois’ local pension problem.” The audit measured 10 different metrics related to pensions to arrive at a holistic picture of how rising local pension costs are hurting each city’s fiscal health. The city of Springfield performed dismally in the audit. It scored...
Thousands of Illinois students are trapped in failing schools. These schools fail at their most basic task: providing students with the knowledge and skills they need to succeed in the future. Take a look at some statistics from a forthcoming Illinois Policy Institute special report on the state’s lowest-performing schools: 72 percent of students at...
The city of Springfield’s local pensions are in crisis. But instead of facing this problem head on, Springfield Mayor Mike Houston is quibbling over what he calls “flaws” in a comprehensive report by the Illinois Policy Institute that measures the fiscal health of Illinois’ 114 largest cities. Our report found that Springfield scored worst among...
The Liberty Justice Center’s legal challenge to Evanston’s anti-competitive food-truck law took an important step forward this week, as Cook County Circuit Court Judge Jean Prendergast Rooney denied the city government’s motion to dismiss our lawsuit’s claims that the city’s law violates the due process and equal protection guarantees of the Illinois Constitution. The Liberty...
This week, the governor’s office is scheduled to submit “The Path to Transformation: Illinois 1115 Waiver Proposal” to the U.S. Department of Health and Human Services. If approved by the federal government, this proposal would overhaul the Illinois Medicaid program. The state would not only consolidate multiple health-care programs aimed at providing home and community-based...
Three years ago today, Wisconsin Gov. Scott Walker overhauled the state’s labor law by signing Act 10. Act 10 changed the balance of power in Wisconsin, shifting it from government union officials back to taxpayers. Government unions were limited to bargaining over salaries. Complicated work rules and lavish benefits – often on terms that were...
The Chicago Bears are in the market for a pass-rusher to bolster their defensive line. But taxation in Illinois’ can make it difficult to lure talent from other states. The Bears targeted Seattle’s Michael Bennett, whose younger brother Martellus stars at tight-end for Chicago. Brad Biggs from the Chicago Tribune placed Chicago’s offer at around...
Only one month remains in the ObamaCare open enrollment period for this year. Even though the Obama administration is pulling out all the stops, Illinois is less than half-way to its goal of nearly 237,000 enrollees for 2014. March 31 is the deadline to obtain qualified health-insurance coverage or face a penalty under ObamaCare. Despite...
Only one month remains in the ObamaCare open enrollment period for this year. Even though the Obama administration is pulling out all the stops, Illinois is less than half-way to its goal of nearly 237,000 enrollees for 2014. March 31 is the deadline to obtain qualified health-insurance coverage or face a penalty under ObamaCare. Despite...
The city of Springfield owes $216 million in police and firefighter pension debt alone. This 2012 figure is 6.5 times larger than the $33.5 annual payroll for police and firefighters. Just 10 years earlier, the shortfall was two times larger. (A fully funded pension should have no shortfall.) Pension debts are dwarfing the payrolls that...
Government transparency – a major tool in preventing waste and corruption – took a small step forward in Illinois this past week. With the signing of House Bill 1040 – which passed both Illinois legislative houses unanimously – state agencies will now be mandated to develop detailed plans on how to get vital public information...