Volcker Alliance Launches Analysis of 50 State Budgets

gerri.songer's picture

In 2015, Illinois brought in $71B revenue, spent $75B on expenses, and carried $141B in total debt. The interest on this debt cost taxpayers nearly $5B, which was more than the state's contribution to TRS, $4B.

Last year, 2016, Total Revenue was $68B, Total Expenses were $73B, and the state increased its debt to $147B Total Debt. Revenue decreased by $3B due to the state reducing its flat individual and corporate income tax rates. Expenses were down $2B, but there was still a $5B shortfall because of the decrease in revenue.

The majority of debt is pension debt, which is financed in what looks like a balloon mortgage. Total pension debt went up $7B ($109B in 2015 to $116B in 2016).

Also, the State's bond ratings were downgraded. This means that interest rates will increase.

To give you an idea of what this looks like at the local level, D214's pension contributions have increased from $9M in 2002 to $57M as of FY2016. D211 is in the same boat ($10M in FY2002, $57M in FY2016).

This isn't sustainable.

Every level of government is in serious debt. We're seeing the fallout of this type of mismanagement in countries like Greece and Venezuela. We would be naive to think the same can't happen here, particularly when we have the perfect storm brewing.

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Volcker Alliance Launches Analysis of 50 State Budgets

Post By: The Volcker Alliance
https://www.volckeralliance.org/news/volcker-alliance-launches-analysis-...

Partnering with 13 Academic Institutes and University Departments to Collect Data

The Volcker Alliance today announced that it is conducting a multiyear study to help improve budgeting and fiscal sustainability in all fifty US states. The Alliance is partnering with thirteen academic institutes and universities’ schools of public administration or policy to accomplish the study. Together, they will also collaborate with Municipal Market Analytics Inc., a leading independent financial consulting firm based in Concord, Massachusetts, and Katherine Barrett and Richard Greene, special project consultants to the Alliance. Data collected by professors and graduate students from around the country will provide the Alliance with the basis for evaluating state budgeting and financial reporting performance in areas including clarity and integrity.

“Trust in government is at a low point,” said Volcker Alliance founder and chairman Paul A. Volcker, “and part of the reason is that the public cannot even tell what our government can afford. Accounting may be complicated, but governments have an obligation to the public to reveal what services cost, how much money is borrowed, where there are shortfalls, and what tradeoffs society will face to balance the budget. This project aims to show the way.”

The Truth and Integrity in Government Finance Project, as the study is known, will lay the groundwork for governors, legislators, civic organizations, and citizens concerned about fiscal stewardship to effect meaningful improvements in the quality and transparency of state budgets in a time of fiscal stress for many governments. To provide improved tools for elected officials, analysts, and members of the media researching the critical fiscal decisions that governors and legislators must make, the Alliance in October published State Budget Sources: An Annotated Guide to State Budgets, Financial Reports, and Fiscal Analyses. Written by Katherine Barrett and Richard Greene, the guide includes links to budgets for all the states as well as legislative analyses of budget bills and treasurers’ or comptrollers’ monthly state cash-flow statements; capital spending plans; reports on public-worker pension funding and returns; and reports by local and national fiscal research organizations, bond rating firms, and associations of state fiscal and finance officials.

VIEW: State Budget Sources - An Annotated Reference Guide to State Budgets, Financial Reports, and Fiscal Analysis
https://www.volckeralliance.org/sites/default/files/attachments/State%20...

ILLINOIS, pg. 46

Executive and Other Constitutional Finance Offices

GOVERNOR'S OFFICE
2016 state of the state address.
http://multimedia.illinois.gov/gov/sots-012716.html

2016 budget address.
http://multimedia.illinois.gov/gov/budget-021716.html

OFFICE OF MANAGEMENT AND BUDGET
Current and past budget documents, economic and performance information, and debt management.
https://www.illinois.gov/gov/budget/Pages/AboutUs.aspx

Budget Books
https://www.illinois.gov/gov/budget/Pages/BudgetBooks.aspx

Economic and Fiscal Policy Reports
https://www.illinois.gov/gov/budget/Pages/PolicyReports.aspx

Illinois Capital Markets
Bond information and financial updates.
https://www.illinois.gov/gov/budget/capitalmarkets/Pages/default.aspx

COMPTROLLER
Accounting, financial reporting, and other fiscal information.
http://illinoiscomptroller.gov

Comprehensive Annual Financial Reports
http://ledger.illinoiscomptroller.com/find-reports/comprehensive-reporti...

Tax Expenditure Reports
http://ledger.illinoiscomptroller.com/find-reports/fundamental-reporting...

Other Reports
http://ledger.illinoiscomptroller.com/find-reports/

* * The Ledger: Illinois Finances Made Transparent * *
Redesigned in April 2016, this site provides revenue, expense, contract, and employee compensation information, as well as the Fiscal Focus blog and information on the Illinois bill backlog; provided by the comptroller’s office.
http://ledger.illinoiscomptroller.gov

OFFICE OF THE TREASURER
Investment and other financial programs.
http://www.illinoistreasurer.gov

Legislative Offices and Other Resources

COMMISSION ON GOVERNMENT FORECASTING AND ACCOUNTABILITY
Research for the Illinois Legislature on the state and regional economies and state revenues; the impact of federal fiscal policies; pension funding, debt, and health benefit liabilities; capital appropriations; and budget information.
http://cgfa.ilga.gov/Home.aspx

AUDITOR GENERAL
Financial, compliance, and performance audits.
• http://www.auditor.illinois.gov/default.asp

Nongovernmental Organizations

CENTER FOR TAX AND BUDGET ACCOUNTABILITY
Covers topics such as taxes, budgets, and pensions.
http://www.ctbaonline.org

ILLINOIS POLICY INSTITUTE
Research organization providing policy analysis and some budget, tax, and other fiscal coverage; part of the State Policy network of state-focused, free market-oriented think tanks.
https://www.illinoispolicy.org

**VIEW: Illinois Policy Institute Funding Sources (https://www.desmogblog.com/illinois-policy-institute)

[The Illinois Policy Institute is a member of the State Policy Network (SPN), a group that has supported some of the most vocal organizations denying man-made climate change including the Heartland Institute, Cato Institute, and Heritage Foundation. According to Huffington Post, in 2011 SPN members' combined fundraising totaled more than $83 million and included significant contributions from Koch, Donors Trust, and Donors Capital Fund.]

INSTITUTE FOR ILLINOIS FISCAL SUSTAINABILITY AT THE CIVIC FEDERATION
Produces regular budget and fiscal research.
https://www.civicfed.org/iifs

INSTITUTE OF GOVERNMENT & PUBLIC AFFAIRS, UNIVERSITY OF ILLINOIS
Public policy, economic, and fiscal research.
http://igpa.uillinois.edu

Fiscal Futures Project
Studies of budget transparency and long-term impacts.
http://igpa.uillinois.edu/policy-initiatives/fiscal-futures-project

FISCAL POLICY CENTER AT VOICES FOR ILLINOIS CHILDREN
Budget and fiscal analysis with a focus on Illinois children; part of the State Priorities Partnership, a network of state organizations coordinated by the center on Budget and Policy Priorities.
http://www.voices4kids.org/our-priorities/fiscal-policy-center/

REBOOT ILLINOIS
This news sites follows budget, tax, and scal stories, as well as other public policy issues; posts and articles come from a diverse group of contributors.
https://rebootillinois.com

TAXPAYERS FEDERATION OF ILLINOIS
Focuses on tax issues but also follows Illinois budget developments; some materials are available only to members; part of the National Taxpayers Conference.
http://www.iltaxwatch.org

READ: Looting the Pension Funds (attached)