A report being released Tuesday says Illinois' plan to save $160 billion ultimately won't make much of a dent in the state's growing deficits.
The University of Illinois' Institute for Government and Public Affairs study says changes to the state's major public pension systems will eliminate their unfunded liability over the next 25 years, but the state's deficit will increase to $13 billion during that time. Institute researchers projected a $14 billion deficit - a $1 billion difference - if the state had not implemented pension reform.
Institute Director Chris Mooney says the study was released as campaigns for the 2014 general election begin to heat up in order to make sure the state's fiscal crisis is talked about.
SPRINGFIELD, Ill. (AP) - Illinois' treasurer says he's monitoring the debt ceiling showdown in Washington and the impact it could have on the state's finances.
Members of Congress continued late Tuesday to search for deal that would allow raising the country's cap to borrow more money in order to pay its bills. The government has been partially shut down for more than two weeks as Democrats and Republicans haggle over spending.
Dan Rutherford's office says it utilizes U.S. Treasury securities as an important investment tool for the state's portfolios. The state holds $1.2 billion in U.S. Treasury bills that will mature over the next month.
Rutherford says planning ahead for a possible short-term default will allow the state to meet its payments on bonds and interest on a short-term basis.
CHICAGO (AP) - Illinois officials say the state saved about $44 million in five months because of a vendor's work to scrub unentitled Illinois residents from the Medicaid rolls. Department of Healthcare and Family Services Director Julie Hamos detailed the savings Tuesday at a legislative hearing in Chicago.
The work by Reston, Va.-based Maximus resulted in the state canceling Medicaid for more than 125,000 people. Outsourcing that task will cost the state about $70 million over two years.
Hamos says 40 percent of the people kicked off Medicaid had no medical costs in the past six months, resulting in lower than projected savings.
She says Illinois officials still would like to complete the contract with Maximus and will appeal an arbitrator's ruling that would require the contract to be canceled Dec. 31.
SPRINGFIELD, Ill. (AP) - A bipartisan group of Illinois lawmakers tasked with pension reform will meet in Springfield on the day before a special legislative session is convened.
Senate Democrats say the 10-member committee will meet Monday. The House and Senate are scheduled to convene Tuesday to consider Gov. Pat Quinn's amendatory veto on concealed carry legislation.
While Quinn originally called the Legislature back July 9 to deal with pensions, it is unlikely the issue will be voted on by that deadline.
Committee members met last week in a grueling five-hour public session where little was resolved. They are scheduled to meet again Wednesday. Members say they are hopeful progress is being made, but legislation has yet to be drafted.
Illinois' worst-in-the-nation unfunded pension liability hovers around $100 billion.
Cuts in the classroom are coming to the East St. Louis School District. Teachers layoffs were announced during Thursday night's packed school board meeting.
In all, 69 teachers in District 189 will lose their jobs. Five elementary school principals and two middle school principals will also be cut.
East St. Louis is just the latest in a long list of metro-east school districts forced to make the cuts because of state and local budget issues.
The bill is sponsored by House Speaker Michael Madigan and comes out of a laborious process where lawmakers are addressing the pension problem piece by piece instead of a total overhaul at once. House members voted in favor 66-50 yesterday. It's the third scaled-back pension bill the House has recently approved.
Thursday's proposal says that no cost-of-living increases can be taken until retirees reach 67 years of age, or five years after retirement and applies COLAs only to the first $25,000 of an annual pension.
Illinois has nearly $100 billion in unfunded pension liability because for years lawmakers either skipped or shorted payments.
But the budget proposed by Governor Pat Quinn would cut education spending by more than $300 million.
Many Illinois school districts are already operating on deficits after the state failed to fully fund its obligations for the past two years. Virtually every metro-east district is laying off teachers in anticipation of less state funding next year. Some are cutting sports programs and closing schools.
St. Clair County schools superintendent Susan Sarfaty told the St. Louis Post-Dispatch that "Districts are no longer cutting fat from their budgets — they’re cutting bone." Sarfaty says "there's no more fat to cut."
Collinsville schools will be hit the hardest, with district officials voting to eliminate 16 full-time and three part-time teaching positions.
The Belleville district will cut three full-time teachers and one part-timer.
Both district boards say they have no choice but to make the cuts because the State of Illinois has failed to meet their financial obligations to the districts.
The Chicago Democrat will propose slashing $400 million from education in the fiscal year that starts July 1. It also will pin the blame for the cuts on lawmakers' failure to fix the state's worst-in-the-nation pension problem.
The automatic fund transfers include more than $2 billion in spending that Quinn's aides describe as "on autopilot." The amount those programs receive is set in state statute. Trying to cut it is likely to cause a contentious debate.
Quinn's proposed budget also attempts to pay down $2 billion in unpaid bills.
Governor Pat Quinn signed a supplemental appropriation bill Thursday evening that's meant to shore up parts of state government that are running short of money half-way through the budget year.
It includes $675 million in unanticipated federal and state money available for road projects this spring. It also shifts $25 million saved from Quinn's closure of correctional facilities to the Department of Children and Family Services.
Republicans have complained the bill was rushed.