Table of Contents
- 1 Why is Illinois in financial trouble?
- 2 When did the Illinois budget crisis start?
- 3 Does Illinois have a spending problem?
- 4 What is Illinois spending money on?
- 5 How did Illinois get its shape?
- 6 Why is Illinois a good state?
- 7 When is Illinois budget due?
- 8 Why can’t Illinois solve its budget problems?
- 9 What’s going on with Illinois’ finances?
Why is Illinois in financial trouble?
Illinois has a problem with rising and unsustainable pension costs that are crushing the state and threatening the economic security of current and future generations. Pension reform is the only way for the state to secure a better, more prosperous future for all Illinoisans.
When did the Illinois budget crisis start?
The Illinois Budget Impasse was a 793-day-long budget crisis in the state of Illinois. From July 1, 2015, to August 31, 2017, Illinois was without a complete state budget for fiscal years 2016, 2017, and part of 2018. As a result, many state agencies had to cut services or continue borrowing to operate.
Does Illinois have a spending problem?
Illinois politicians continue to spend more money than the state takes in: Despite those plentiful revenues, Illinois has not had a balanced budget since 2001. That problem will only worsen as the nearly $170 billion in unfunded promises made to state-worker retirements come due.
Is Illinois in bad financial shape?
A new report from Truth in Accounting found Illinois again has the second-worst fiscal health in the nation. It’s the second year in a row the report ranked Illinois as second worst. Only New Jersey has a worse fiscal position than Illinois, although Illinois has about $36 billion more in unpaid debts.
What is the Illinois state budget?
The General Assembly’s FY2022 budget has $44.3 billion in total expenditures. The base spending for this fiscal year is $23 million or 0.1\% less than the estimated FY2021 budget.
What is Illinois spending money on?
Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation. State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
How did Illinois get its shape?
The boundaries of Illinois were basically set by three rivers on the south, east, and west borders. The Wabash, Ohio, and Mississippi Rivers hemmed in the slowly growing populace. The northern border of the territory was initially set at the southern end of Lake Michigan.
Why is Illinois a good state?
Illinois is a great state and Chicago is its gem. No one can deny that the living experience Illinois offers is exceptional and unique. And while comparing the pros and cons of living in Illinois, you also would have realized that the state also ranks high in outdoor entertainment, food scene, and natural beauty.
What is Illinois budget?
Who makes the Illinois state budget?
the Governor
The Illinois Constitution requires the Governor to present a state budget to the General Assembly for the upcoming fiscal year. The Governor’s Office of Man age ment and Budget is responsible for estimating revenues and developing budget recommendations that reflect the Governor’s programs and spending priorities.
When is Illinois budget due?
The State paid off the borrowing as planned in June 2021. The FY2022 State budget includes provisions to repay the remaining $2.0 billion of MLF debt that was issued in December 2020 within the fiscal year, though it is not due until December 2023.
Why can’t Illinois solve its budget problems?
Much like a family, Illinois cannot solve budget problems when politicians refuse to clearly look at the main causes of the state’s poor fiscal health: rapidly rising costs for pensions and government worker health insurance.
What’s going on with Illinois’ finances?
While the budget impasse is throwing a spotlight on Illinois’s dire financial situation today, the fiscal problems go back at least to the 1980s and involve politicians from both parties. The most glaring evidence is the enormous pension crisis.
What is the solution to Illinois’ fiscal crisis?
The only real and sustainable fix is structural reforms. A real budget – one that balances Illinois’ budget with structural reforms instead of tax hikes – is the solution Illinois needs. Here are the facts on what has led Illinois to its current fiscal crisis.
Are Illinois tax hikes making the state’s financial crisis worse?
Even politicians’ go-to solution to Illinois’ financial crises – tax hikes – only succeeded in making the state’s problems worse. In 2011, Illinois politicians enacted a record 67 percent income tax hike on individuals and a 46 percent corporate income tax hike.