civic federation

NPR Illinois hosted its fifth Illinois Issues forum August 9 at the Union League Club of Chicago. The listening tour of the state focuses on the financial health of Illinois and the lasting impacts of the two-year-long state budget impasse. 

A proposed amendment to the state’s constitution would protect money set aside for transportation projects. Supporters say the change is needed because money that's supposed to be earmarked for building roads has gone to other expenses over the years. But the amendment could allow some of those practices to continue, while endangering other popular programs. 

Illinois workers get an added bonus once they retire: They don't have to pay taxes on pension or Social Security checks. It's one possible change the state could look to as it hunts for more money.

Illinois is a rare state that taxes income on a regular paycheck, but not on retirement.

Fiscal experts like the non-partisan Civic Federation say as Illinois' population ages, and there are more seniors, the government will increasingly lose out on a source of revenue.

Illinois has more than $100 billion in pension debt. So far, attempts to fix it have been mostly illegal.

Next week, Gov. Bruce Rauner will unveil his spending proposal. The non-partisan Civic Federation has some suggestions.

The Civic Federation’s Director, Laurence Msall, says Illinois’ budget isn’t just in bad shape; its condition is terrible ... and climbing out of it won’t be easy.

“These are not politically attractive answers. There are financial, reality-based suggestions on how the state can stabilize its finances,” he says.

Illinois is about a quarter of the way into its fiscal year and building up debt along the way. A new report from the Civic Federation says it's a return to detrimental policies that landed Illinois in an unstable financial position in the first place.

There was one, glaring question for lawmakers last spring: what were they going to do about the temporary income tax?

  The debate over state retiree pensions has been a consistent backdrop for the Illinois gubernatorial election, bringing older voters to the forefront of many debates. It's this senior voting bloc that could make all the difference this election.

The Illinois Building on the State Fairgrounds in Springfield is buzzing with activity. But it's not prized cattle or blue-ribbon pies fair attendees are taking in. Along one wall, it's an array of motor scooters. Along another, it's rows of booths offering different kinds of home care.

  Taxes have been in the spotlight at the state Capitol this spring, most visibly the fate of the state's income tax rates. But another tax plan, floated by Governor Pat Quinn, is also attracting ire of Republicans and economists alike.

Governor Quinn's plan for the Illinois budget calls for extending the state's 5-percent income tax rate, instead of allowing it roll back.

It's coupled with a $500 property tax rebate for every homeowner in Illinois.

  As more baby-boomers retire, Illinois is increasingly missing out on a revenue source. Of the 41 states with an income tax, Illinois is one of only three that exempt all pension income.

A new report from the Chicago-based Civic Federation says Illinois needs to take a longer-term approach to budgeting; one that is rooted less in politics, and more in reality. Most notably. the group recommends Illinois extend its current income tax rate for a year before gradually rolling it back.