Illinois Is ‘Draining its Savings Account’? Better Check the Numbers. – WP Original

  “Financial watchdogs” fretting over a “rainy day fund” that’s almost meaningless, in more ways than one.   By: Mark Glennon*   “Illinois drains state’s savings account due to budget crisis” was the headline on an Associated Press article yesterday. It was widely republished across Illinois today.   Somebody needs to wake up and take a broader look at the money on hand in the Illinois Treasurer’s office. The most recent balance posted by that office (as of the end of July) is $14 billion, up from $12.2 billion just three months ago. Not that it matters, however, because even

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Do Illinois’ public colleges pay off for students? – Crain’s

A study by Third Way, a nonpartisan research group that tries to straddle Washington’s ideological lines, finds that “expensive” schools actually are worth the cost, in part because they offer so much financial aid. But “cheaper” schools that force students into loan programs rank worse, with fewer students graduating and relatively few of them landing top-paying jobs.

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The Illinois budget crisis in context: A history of poor fiscal performance – Federal Reserve Bank of Chicago

The article shows that compared with the national average, Illinois used to be a relatively low-expenditure, low-revenue state. This changed in the mid-1990s, when, unlike the typical U.S. state, Illinois began consistently spending more than it brought in. A major contributor to this budgetary imbalance was the accumulation of pension liabilities.

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Illinois Schools Could Ask For Tax Increase – INN

Schools across Illinois have until August 22 to decide if they’ll place a tax hike question on the November ballot. “It appears there are a lot of districts considering taking a step toward a referendum, either in November or maybe next year,” Illinois Association of School Boards spokesman Gary Adkins said.

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What Illinois universities have to learn from Chicago State’s money crisis – Chicago Tribune

Chicago State’s generous severance policies aren’t much different from those of most other public universities in Illinois. That is, they’re an artifact of the profligate past in which this state’s universities raised tuition, added staff, resisted consolidation and spent extravagantly because … they could. Spending, borrowing, debt, pensions, whatever.

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