Of the state’s 102 counties, 67 are on a watch list — or more serious warning list — created by the research arm of the Heartland Alliance, which works on social issues in areas that include poverty. That’s up from 52 last year.

Hating Illinois is a sickness, according to this author, and you should just leave.

“Illinois has reached the point where the fiscal focus should shift from spending cuts, to generating the tax revenue needed to fund an adequate level of public services — a reality the Pritzker Administration is showing the rare political will to recognize.”

Talk about irony.

Car buyers are on the hook for an estimated $40 million extra in sales taxes thanks to an Illinois law starting next year that will cap trade-in tax credits for most motor vehicles at $10,000.

Currently, car buyers pay sales tax on the difference between the value of a new car and the value of the car they’re trading in. But starting Jan. 1, car buyers will receive sales tax credit on only up to $10,000 of the value of their trade-in.

Charlie Kirk: “I leave while carrying a sense of survivor’s guilt. There are many people I know here who would like to leave but are trapped by individual circumstance. For them and for the state I love, I will continue to speak out on the excesses of government, but I will do so from a distance. You will still hear from me, I’m just sad we just won’t be seeing each other as often.”

“God bless the black-hearted members of the Illinois House and Senate — they stand to get a windfall pay raise that will place them among the top-five highest-paid state legislatures in the country.”

Erin Guthrie, the new head of the DCEO, may not be the state’s top salesperson to businesses in search of places to expand—Gov. J.B. Pritzker is—but she’s the one who hones and follows up on the pitch.

The disparity between well-funded public pension systems and those that are fiscally strained has never been greater.

For example, South Dakota, Tennessee, and Wisconsin had, on average, 97 percent of the assets needed to fully fund their pension liabilities in 2007 and remained at 95 percent funded or higher in 2017. Conversely, the three states with the lowest funded ratios—Illinois, Kentucky, and New Jersey—saw a drop from 69 percent funded, on average, in 2007, to 36 percent funded in 2017.

See our Quicktake linked here on why this should have Madigan & Friends sweating.

Nice summary of the major items if you haven’t been keeping up.

CNBC puts Illinois at No. 30.

Comment: We who oppose the progressive income tax “aren’t genuine in now suddenly caring about the best interests of our working families,” writes Quentin Fulks, who runs the pro-tax operation.

Some community colleges and four-year universities in Illinois are exploring the possibility of launching educational programs to train people in the business of growing and marketing marijuana in light of a new state law legalizing adult-use recreational marijuana.

There is, however, one significant hitch in that idea: Such programs could run afoul of a federal law that still requires higher education institutions to maintain drug-free policies.

The irony is that the same politicians who are about to pass these tax hikes have been howling for more than a year about the 2017 federal tax cuts, which they say raised taxes on the state.

llinois is the only state that has not yet published its fiscal 2018 comprehensive annual financial report and the officials who manage the process can’t put a date on its expected release.

The absence of a CAFR is a blot on the credit of the nation’s lowest-rated state, though it was able to adopt a budget on time this year and releases other reports and updates about its finances.

Certain lawmakers who voted against their pay raises are now suing to get them.

Presented without comment.

“The current budgetary method for transportation funding is flawed, resulting in states like Illinois not getting a fair share of transportation funding,” Foster said.

By pension actuary Elizabeth Bauer.

Comment: Miller’s basic message here is that Lightfoot must work together with Springfield to find the right way to raise taxes to fund pensions.

Mendoza and Mautino: It’s Rauner’s fault.

A republication of our Wirepoints article.

An energized, organized populace can work wonders. Democrat House Speaker Michael Madigan is determined to perpetuate the failed and gerrymandered legislative status quo, and no one suggests that taking on his corrupt business-as-usual approach will be easy.

“The capital flight is already underway, not to mention the exodus of citizens who have moved. You can almost feel the energy being drained from the state as high taxes, deteriorating schools, high crime rates, and a disgust at politicians from both parties imparts a sense of helplessness and discouragement. Yes, but at least the teachers are happy.”

A republication of our Wirepoints article.

The increase in the state’s motor fuel tax — from 19 cents a gallon to 38 cents — will hit a lot of consumers, not just those who own vehicles. Businesses are just now working through how they’ll pay for it, but the early read is that, like most things, their increased costs of doing business will trickle down to customers. Garbage haulers, florists, food delivery and more.

However unrealistic Lightfoot’s proposal for a state bailout may be, it is helpful in one disturbing respect. It reveals just how difficult the city and state’s pension underfunding problems are.

At the same time, Pritzker has no real appetite to address the state’s pension problems. After all, it was just a few months ago that Pritzker proposed skipping $800 million-plus in required pension payments for the 2019-20 budget.

The Chicago Tribune chronicles an astonishing list of academics who have received huge payouts from Illinois state-owned institutions of higher education or remained collecting six-figure salaries after losing their jobs.

This is not the first appropriation-secured bond issue to run into the failure-to-appropriate issue. For example, Lombard, Illinois failed to fund an appropriation for debt issued through its Public Facilities Corporation for a hotel and conference center. In that case as well, the rating agencies were swift to act. Moody’s withdrew its rating; Standard & Poor’s dropped Lombard’s rating down to a speculative grade B.

Comment in an email from a reader: “It pays to be a screw-up in Illinois.”

Comment: More loaves and fishes from Pritzker. The $3.5 billion projected to come from the progressive tax has been promised away many times over.

Legalization includes an exemption to the Smoke-Free Illinois Act ban on indoor smoking, letting cities decide whether to allow on-site use at bars, restaurants, theaters, even new cannabis smoke lounges.

An detailed analysis of the accelerating outbound migration across the border to the Badger State.

Presented without comment.

“As a result of the Government’s breach of its obligations, Land of Lincoln was ultimately driven into liquidation in 2016,” lawyers for Land of Lincoln wrote in the petition for its case to be heard by the Supreme Court. “More than 50,000 policyholders were left without health insurance in October of the coverage year, and many forced to endure additional healthcare expenses.”

A national republication of our article.

Comment: The capital bill is a grossly oversized, pork-ridden, politically discriminatory monstrosity. The gambling bill tries to fund it by making losers out of our own citizens.

Comment: This report reiterates what we’ve been saying — that our supposed “full funding” of pensions is baloney. “Although Illinois has had a recent track record of meeting the contributions required by the state’s funding plan, those payments were insufficient to make progress on paying down the state’s pension debt. In fact, its pension debt has grown, driven by the state’s contribution policy and practices.

Presented without comment.

Comment: In other words, taxpayers will pay to induce teachers to get hired into the Tier 2 pension system which forces them to pay more than their own way and subsidize the cost for lavish Tier 1 pensions that the state isn’t adequately funding.

AFSCME Council 31 lost about 6,000 fee-payers but added 1,100 full members. Other public sector unions in Illinois reportedly fared about the same.

By continuing practices such as automatic raises and taxpayer-subsidized platinum health insurance, along with a new $2,500 bonus, the AFSCME contract will transfer more than $3.6 billion in additional compensation from taxpayers to state workers.

Where does that leave the taxpayer? It’s most likely a division of opinion that includes disgust, apathy and resignation. One thing, however, seems certain — this problem is going to get a whole lot worse before it gets better, assuming that it ever gets better.

Comment: This is nonsense, entirely ignoring recent Rhode Island decision.

Comment: And guess who Comptroller Mendeza is blaming? Rauner, of course.

Cook County leaders this week are trying to sort out a big surprise: why the county health system’s Medicaid health insurance plan owes $701 million to doctors, hospitals and other vendors.

Comment: Sound familiar. Most of this fits Illinois, except the surplus.

The State Universities’ Retirement System of Illinois is allocating 20% of its portfolio to an asset class called the Crisis Risk Offset Class (CRO), a new segment dedicated to insulating the pension’s assets to major market swings.

The letter was published Monday on Medium.com and details the “support [for] a moderate wealth tax on the fortunes of the richest 1/10 of the richest 1 percent of Americans.”

“Lawmakers clearly did not pay attention to what is working across the country.”

SmartAsset recently looked at population shifts for those younger than 35 with adjusted gross incomes of at least $100,000, and found Illinois was losing these successful young adults at a faster pace than every other state except New York. The referenced survey is linked here.

“The common man will be spending more on the fuel cost,” he said. “There won’t be any money left for them to reward themselves to buy a drink or candy or a snack item.”

Comment: How ’bout that — we agree with Ms. Klickna! She was long the president of the Illinois Teachers Association, and we’ve criticized her for many reasons for years. But she’s stating here what we’ve also long told you — that claims about pension “full funding” are a lie.

More on the recent authorization for more pension spiking.

A lengthy new forum collected viewpoints from all sides.

Comment: Meanwhile, the nation’s leading financial paper, the Wall Street Journal, is writing about Illinois’ “inevitable financial collapse.” You decide.

The measure calls for lowering interest rates on outstanding consumer debt from 9 percent to 5 percent. It would also trim 10 years off the time a lender can pursue collection. The legislation would only apply to consumer debt — that is, debt for personal, family or household expenses. It’s also limited to debt under $25,000.

The acting head of the Illinois Department of Transportation on Thursday called the $848 million Interstate 80 plan the “signature” project in the state’s largest capital bill ever.

“We are committed to it,” Omer Osman, the acting state transportation secretary, said of the I-80 project at a luncheon meeting for the Joliet Region Chamber of Commerce and Industry.

Comment: Savings from the buyout program will be negligible; it’s a sham. Consolidation is a good idea and will result in some savings for the local pensions, but nothing that meaningfully alters their course.

Some cities are proving to be uniquely problematic, with Chicago, for example, a particularly extreme case. While the city contributed a substantial 33.2 percent of its revenue toward servicing the city’s pensions, the city would have needed to contribute a staggering 66.3 percent of its revenues in order to maintain its existing liability.

Practically without substantive opposition beyond backstabbing within the gambling industry itself, three decades of Illinois lawmakers gradually upping the ante on legalized wagering as a solution to government revenue needs gave way to an “all in” explosion of new and larger gambling venues and more ways for people to part with their money —including online and sports betting.

More than 71,000 people collecting public pensions from six statewide retirement plans have moved out of Illinois, taking more than $2.4 billion annually with them.

Pritzker made Illinois the most liberal state in the United States for access to reproductive health care. Pritzker said the law makes the Prairie State a “beacon” for access to pregnancy care, contraception, birth control, abortion procedures and other related benefits by making access to these things a “fundamental right.”

Peter Breen, vice president and senior counsel of the law firm, said the “deceptively titled” Reproductive Health Act makes Illinois “an abortion destination for the country.”

Persistent budget deficits, enormous and growing pension obligations, a high debt burden and labor contract negotiations all await Lori Lightfoot as she settles into office

Presented without comment.

What does that even mean? Last year he said that budget was balanced, without the double talk.

Comment: Just what Illinois needs — more tedious crap to annoy employers.

Illinois, in particular, is already under pressure… More than a decade ago, the school began actively recruiting students from abroad, said Kevin Pitts, vice provost for undergraduate education at the flagship campus in Urbana-Champaign. Chinese students are the biggest cohort, making up almost 12% of the school’s 49,000 students and concentrated in business and engineering degrees.

The University of Illinois’ international students overall generated about $475 million in economic impact and supported more than 7,300 jobs, according to data from NAFSA. Tuition paid by them also helps fund need-based and merit aid for in-state students.

Others say progressive tax will help middle-class workers, state

Comment: The more correct word is lying. They are simply lying about the budget and debt reduction. Many GOP and Dem lawmakers, too.

Comment: Actually, nobody seems to be buying it, except some stenographers pretending to be reporters.

The Center for Illinois Politics, a Chicago-based nonprofit, compared the progressive tax rates approved by lawmakers with other states that have progressive income tax systems.

The “giveaway to teachers unions is the strongest sign yet that the Democrats who control both houses of the General Assembly as well as the Governor’s Mansion work for them and no one else.”

https://www.cnbc.com/2019/06/14/five-reasons-why-your-high-tax-state-wont-let-you-move-out.html

“People are mobile. And they will go to a better tax environment. That is not a hypothesis. That is a fact. People act in their own economic interest. Businesses act in their own economic interest.”

— New York Gov. Andrew Cuomo in February,

Comment: It’s utterly stupid and irresponsible to call this budget “balanced,” as we’ve documented endlessly. And, by the way, there is no budget yet from the General Assembly or Pritzker — just cherry picked releases and thousands of pages still being read. There is nothing with line items, even a summary.

A new Illinois law signed by Gov. J.B. Pritzker does not repeal or extend the limitation on when an employee can file a claim under the workers’ compensation system, it creates “unprecedented new rights,” a Chicago-based defense lawyer said.

An area of Chicago, encompassing six ZIP codes, endured more than 1,000 reverse mortgage foreclosures in the past five years – more than many entire states.

Comment: This corrects a Reuters story we posted hear earlier saying “The U.S. Supreme Court on Monday agreed to settle a circuit split over whether federal labor law preempts local “right to work” laws that ban compulsory union membership and dues. The court granted certiorari to the Illinois village of Lincolnshire, which is appealing a 2018 7th U.S. Circuit Court of Appeals ruling.” In fact, this version appears correct — the court disposed of the case concurrently and sent it back for dismissal.

Governor J.B. Pritzker plans to offer pay raises, more time off work, enhanced family leave and a cash stipend to offset “financial hardship” state workers endured under the administration of his Republican predecessor, according to a copy of the Pritzker administration’s contract offer.

By Truth in Accounting’s Sheila Weinberg.

“To hear some Republican leaders talk about how we have to raise taxes because Illinois taxpayers don’t currently pay enough to cover our spending programs is shocking. These are Democrat talking points and they are embarrassing.”

“We have not and will not own uninsured general obligations of the State of Illinois, or bonds from the City of Chicago and Chicago Public Schools,” says Franklin Templeton. Lots more here on Illinois and Chicago. This research report was referenced in a Blooomberg article posted here a couple weeks ago.

See our own article linked here explaining why this decision validates the path for Illinois to amend its constitutional pension protection clause and proceed with real pension reform.

The measure removes restrictions on abortions later in one’s pregnancy. The new law also repeals Illinois’ partial birth ban and the state’s 1975 abortion act, in addition to expanding insurance coverage for procedures and for contraception.

Comment: And that’s using the state’s phony cash-only budget accounting that ignores the real problem — annual run-up in unfunded pension and retiree healthcare liabilities.

“The state’s decision to legalize gambling and marijuana helps immediate problems but delays the state’s inevitable financial collapse.”

A republication of our Wirepoints article.

“Something you should probably understand is that a lot of people are serious about this separation business, even if most of us regard it as kooky.”

Shelia Weinberg of Truth in Accounting.

The bill, headed to the desk of Gov. J.B. Pritzker, specifies that businesses seeking marijuana licenses with the state must be given credit for demonstrating “a plan of action” to “engage in fair labor practices, and provide worker protections.”

Pritzker and legislative leaders appear to have picked a number — in this case $45 billion — and then worked backward to stuff items into the grocery cart. That includes $50 million for the Illinois Arts Council, overseen by House Speaker Michael Madigan’s wife. In that tranche: $1.5 million for an AIDS garden, $50,000 for a Jewish museum renovation, $370,000 for the Inner City Muslim Action Network and millions more in unexplained line items.

The article has no headline, which is probably sensible because it’s strangely vacuous.

Comment: But count on the progressive legislators to squelch any discussion of this proposal.

With unions applauding, a 3 percent cap on late-in-career pay raises is reversed, even though the added pension cost will be paid by a state fund that’s already $75 billion in the red.

Studies show states that turn to gambling and pot tend to have few other options. Heavily in debt, losing population, facing difficulties funding pensions or even paying its bills, Illinois fits the description.

Comment: Includes a line-item summary, the first we’ve see, which they had to cobble together themselves because the governor’s office still hasn’t provided one.

Comment: Amen to this. And demand that teachers’ unions apologize for their campaign of lies that made pension spiking easier.

Presented without comment.

In another spectacular display of bad judgment, members of the House and Senate have opened the way to more pension “spiking” by local school boards that will add to the terrible underfunding woes faced by the Teachers Retirement System.

Comment: The Proft-Martwick panel starts at the 12:00 mark. Before that you can listen to Cullerton’s whopping lies, including a claim that the new budget pays down debt. Martwick repeats that, too.

https://www.journalstandard.com/opinion/20190608/my-view-pritzker-dancing-on-backs-of-struggling-illinoisans

Read the examples of reported bias. Hilarious. Why are places like this even called “universities”?

“Sure, let’s hand out raises at retirement time to teachers and administrators.It’s Someone Else’s Money. Why not be generous?”

Great collection here of examples where your new taxes will go. The pork barrel bonanza comes courtesy of Democratic Gov. J.B. Pritzker’s $45 billion construction program that lawmakers approved as the spring legislative session spilled into overtime last weekend.

Surprise, surprise. The new law is rigged for political insiders. The legislation is a triumph for rookie Democratic Governor J.B. Pritzker — and for special-interest lobbying that yielded protections and opportunities for current gaming investors such as Neil Bluhm, a billionaire Chicago real-estate mogul and major donor to Democrats. He benefited along with casino operators, racetracks, professional sports leagues, stadium owners and even the proprietors of truck stops, who will be allowed to add more slot machines.

Why not change it to something appropriate, to this? “Illinois: Shut up and Take it.” Because if you’re a taxpayer, that’s exactly what you’re expected to do. Just shut up and take it.

Especially now that Gov. Big Boy and his boss, House Speaker Michael J. Madigan and the iron-fisted Democratic legislative majority have passed an amazing $40 billion operating budget and another $45 billion capital spending plan chock-full of pork and dripping with pork fat.

Illinois has a throwback rule, the more aggressive approach.

Comment: By Rich Miller, de facto spokesman for Illinois public unions, and the most perniciously biased voice in the Illinois press.

Comment: This is one reason why we are anxious to see Illinois’ long overdue financial statements for 2018. Our healthcare liability already rivals pensions, and it may be exposed as much worth under the new accounting rules.

Comment: Note the remarks from JPMorgan’s Michael Cembalest, whose work we’ve written about often here. He said Illinois was one of two states where “deteriorations in pension finances … are practically irreversible.” In order to address its pension gap, Cembalest said the state would have to either increase tax revenues by 25 percent, increase public sector worker contributions by 689 percent or achieve an annual investment return equal to 11.5 percent.

Whether you call it pork barrel spending, earmarks or plain old-fashioned horse trading, it took a lot of sweeteners to get lawmakers on board Gov. J.B. Pritzker’s $45 billion state construction plan, which he calls Rebuild Illinois.

“I’m told state representatives were instructed to designate $2.5 million-$3 million worth of projects for their districts, while senators were allotted $5 million-$6 million, not to suggest everyone was treated equally.” Although many of those “member initiatives” are detailed in the legislation, H.B. 62, others are lumped together in large multi-billion categories with more specific appropriations expected to be disclosed later.

Today’s unwelcome example hikes statewide costs for funding teacher and administrator pensions.

With comments from Wirepoints’ Ted Dabrowski.

The new state budget doles out money for new buildings and the yet-to-be-built Discovery Partners Institute, as well as the most money ever for the state’s student financial assistance program.

According to the Daily Illini, the school will use part of the “adversity score,” better known as the Environmental Context Dashboard (ECD), to better establish which high schools have fewer resources and will actively use that for admission decisions.

The bill, H.B. 3394, would have required Illinois companies to have at least one woman, an African-American and a Latino on their boards. But the version that passed the Senate dropped that requirement in favor of one mandating that publicly traded companies in Illinois report on their websites the demographics of their board and executive ranks as well as plans for promoting diversity in the workplace. The bill, which is now on its way to the Governor’s desk, also requires an annual report card on Illinois companies’ diversity that will be published by the University of Illinois.

Oh, the impudence of those cheese-heads. First they took our companies, now they’re looking forward to our new gambling expansion as a chance to bet against our teams.

300 bills sailed under the radar as lawmakers passed a flurry of legislation in the frantic waning days of the Illinois General Assembly’s spring legislative session that wrapped up Sunday.

Some are skeptical because past projections have been wrong.

Citing Wirepoints’ research. “The last state to adopt a progressive income tax was Connecticut in 1996, and we know how that turned out. Now Democrats in Illinois want to follow Connecticut down the elevator shaft with a referendum replacing the state’s flat 4.95% income tax with progressive rates they will set later. This is a classic liberal bait-and-switch—vote now on a promise to fix a fiscal mess, pay later as the fiscal mess gets worse.”

“Now we have to wait and see what our wacky Illinois courts do with this new and shocking concept,” said Keefe, one of the state’s most experienced workers’ compensation defense lawyers.

“And like the state’s last gambling expansion, in 2009, the massive new bill could bring trouble.”

“Unfortunately, Illinois is definitely not back. Its future is as bleak as ever. The state remains effectively bankrupt, its financial situation exacerbated (if that’s possible) by the tax and spending spree the Legislature just wrapped up. Nothing the Legislature did is going to change that.”

A republication of our Wirepoints article.

What they were thinking but didn’t say: “We sure hope we’re the ones hired to rate all those bond offerings that will be coming.”

And the teachers unions are delighted. Spike away to your hearts’ content.

Another union handout: “The Illinois cannabis legislation contains multiple references to labor-peace agreements, which will be part of the selection criteria for applicants for new licenses for distribution centers. The intent of the legislation was clear: “to have good, well-paying union jobs in this industry,” Rep. Emanuel “Chris” Welch, a Democrat from Westchester, testified just before the vote May 31 in the Illinois House.”

Comment: This is the best summary yet, but as it says, you can’t tell about everything because the budget hasn’t been released — just highlights.

Comment: The caption should say “and many Republicans, too.”

Illinois state lawmakers pass $1,600 pay raise for themselves

“Here’s one conclusion — the Illinois Legislature either has no real grasp of the financial situation in this state or simply doesn’t care. It is our suspicion that too many legislators simply don’t understand the financial reality the state and city face.”

Comment: Absolutely right. This is appalling.

So much for your promises of transparency, Governor Pritzker.

Yes, unions, whatever you’d like.

We will be printing our reaction to this shortly.

Presented without comment.

Comment: Had Zorn gone through the studies saying otherwise that he didn’t mention, it would be clear that his sloppy look at this topic is draws the wrong conclusion.

Comment: Consider this the official spin by public union’s unofficial top spokesman and the Illinois media’s Denier-in-Chief — Rich Miller.

Chicagoans could pay nearly $1 per gallon in taxes alone under Pritzker capital plan

With a budget and capital plan still being sorted out — not to mention an expansive gambling measure that would add a Chicago casino, Illinois House Speaker Mike Madigan has opted to extend adjournment of the spring legislative session until Sunday.

The extension means that any vote taken after May 31 will require a three-fifths majority to for the law to go into effect within the next 12 months — and legislators will likely use Friday to handle the state’s budget.

Comment: We missed this a couple days ago when it came out, but it’s important and outrageous. Read the whole thing.

And there’s a separate Budget Implementation Bill of 1,088 pages linked here! The lawmakers who will vote on this have little idea what’s in it. Nor does the public. And thousands of pages of other critical bills are being likewise shoved through today. No summaries published that we’ve seen yet.

Comment: Former Illinoisan Joel Pollak, who wrote this article, is probably going too far thinking Illinois would go red. However, it will indeed be interesting to see how much blowback results from this catastrophic legislative session now ending.

Top states with largest enrollment decrease by number of students:

• Florida -48,363
• California -44,940
• Illinois -30,466
• Michigan -17,278
• Pennsylvania -16,853

‘Quite literally’ a ‘speech police.’ According to University of Illinois policy, students are prohibited from posting and distributing “leaflets, handbills, and any other types of materials” concerning non-campus elections without “prior approval” from administrators.

Franklin Templeton Investments says no way.

In an item of particular importance to some companies, the General Assembly has approved and sent to Gov. J.B. Pritzker a measure to extend the life of the state’s tax credit for research and development.

Presented without comment.

And oppressed Native-American Elizabeth Warren hailed the program.

Taxpayers to fund $50 for all kids born or adopted in the state after Jan. 1, 2021.

Comment: Typical goofiness from NPR and BGA. The tax data referenced in the “analysis” is from 2016, and is premised on the notion that people move immediately in response to tax changes. They don’t; it takes a number of years to make the decision and effectuate a move.

Democrats are completely back in charge in Springfield, and when push comes to shove, and at some point it always does, they’re going to do things their way.

Comment: Another unfunded mandate for broke school districts. Meanwhile, they ignore the real problem — Tier 2 pension ripoff that essentially means new hires are forced to pay not just all their own retirement benefits but some of Tier 1’s.

The new analysis shows Illinois manufacturers employ 592,000 people, each earning around $88,691 in average income.

Comment: Keep in mind that this is income tax only.

Money to support a McCormick Place expansion would be raised by expanding a 1% tax on restaurant meals and drinks under legislation advancing Wednesday in the Illinois Senate. The proposal, which has strong backing from trade unions, would enlarge the part of Chicago’s central business district in which the tax is collected

Illinois still hasn’t released its 2018 financial statements. Illinois legislative representatives chose to move ahead anyway, even though the latest financial results from an audited financial report available to citizens and their elected representatives are for a year that ended almost 700 DAYS AGO! This year, the report is significantly later than the last two years.

a House committee Tuesday endorsed creation of a Property Tax Relief Fund that would be used to pay rebates from the state to anyone claiming a homestead exemption. The rebate would show up as a line item on the tax bills sent out by county treasurers.

Sounds great, right?

Except they didn’t identify any source of revenue to pay for the rebates, specify the amount of the rebates or what the total cost to the state would be. In other words, they did nothing.

But now word on any funding for the property tax relief fund or where that money might come from.

In a statement released today, CTU president Sharkey did everything but yell “whoopie” about the prospect of all those billions and billions of dollars in new revenues running into the state treasury—and to CTU members.

“It is only through taxing those who have received every benefit of the current economic recovery—and therefore can afford to pay more—that we fund the services that everyone else depends upon,” Sharkey declared. “Revenue from the new tax must go to immediate needs for the vast majority of Illinoisans: lower class sizes; librarians and enough school clinicians for

In a historic vote, the Illinois House on Monday agreed to ask voters to change the 1970 state constitution by authorizing a graduated-rate tax based on the size of income and repealing the currently mandated flat-rate income tax.

The move came on a 73-44 party-line vote, two votes more than the bare minimum needed for approval. It represented a significant victory for first-term Democratic Gov. J.B. Pritzker, who campaigned for election on the concept of taxing wealthier incomes at a higher rate as part of an overall plan to deal with Illinois’ ailing finances.

The proposed amendment won’t go before

Polling indicates the progressive income tax is unpopular in key Illinois House districts.

Comment: Good news for Illinois, in a perverted way. Investors seeking yield are piling into the riskiest corner of the municipal bond market at a pace not seen in decades.

Comment: Outrageous misuse for political grandstanding of taxpayer’s money held at the Treasurer.

Bloomberg’s tally included analysis by absolute net gain and loss of income: New York’s annual net loss was the highest, with a net $8.4 billion leaving the state. Exiting incomes of $19.1 billion were replaced by people who brought in $10.7 billion less in income. Illinois and New Jersey were next with net outflows of $4.8 billion and $3.4 billion, respectively.

Data released on May 23 by the U.S. Census Bureau show 1,040 Illinois communities shrank from July 2017 to July 2018, with population decline affecting communities of all sizes relatively equally during the year.

So if your legislators promise to “only soak the 3%,” remember:

• Illinois tollways will be freeways by 1973. (Promised conversion dates varied.)
• The Illinois Lottery, authorized in 1973, will fund schools. (Instead, in a shell game, lottery proceeds get diverted).
• The 1989 income tax surcharge is just temporary. (Made permanent in 1993.)
• Gov. Jim Edgar in 1994 signs into law a plan to fix a $15 billion unfunded pension liability that Edgar calls “a time bomb.” (Lawmakers give themselves pension holidays and spend the money elsewhere. Taxpayers’ unfunded liability now exceeds $130 billion.)
• The “College Illinois” program Madigan helped

Illinois and New Jersey.

Illinois spends more on the typical student than the rest of the country, according to new figures released this week by the U.S. Census Bureau. And while it’s easy to say more spending on schools and teachers is a good thing, studies have been mixed on the effect public education spending.

Presented without comment.

There was some disagreement among Democrats about the proposed rates. State Rep. Yehiel Kalish, D-Chicago, said he thought the proposed income tax rates were too low.

“I want to be on record saying that I don’t think we go high enough,” he said. “Honestly, if we are going to tax and if we’re going to pass a tax, I fully believe that we have to pay the bills [from] the last four years that we’ve accumulated by an administration that refused to pay its bills.”

A republication of our Wirepoints article.

Comment: And David Harris, as a legislator, voted for the last tax increase because he said he trusted Madigan to deliver reforms. Where are they, David?

Lyons’ mayor, son of the former town boss who went to prison, is building clout in the western suburbs amid claims of cozy deals, including the purchase of his own house.

Pritzker, a Democrat elected last November, vowed at the event to make Illinois “the most progressive state in the nation when it comes to guaranteeing women’s reproductive rights.” Democratic legislators in his state intend to help him keep his word. In mid February, they introduced the Reproductive Health Act (RHA), the most radical abortion expansion in state history and in the entire country. Though this bill bears the same name as the legislation New York governor Andrew Cuomo signed on the day Pritzker delivered his remarks, its contents are far more radical.

Comment: Sorry, moms. Gotta do what the teachers’ unions say to do.

Comment: More of his loaves and fishes act. His $3.5 tax hike wouldn’t come remotely close to funding all he claims.

By Illinois Policy Institute’s John Tillman.

With the state expected to be freed from the restrictions of the 1998 law, environmental advocates are again turning their attention to a highly ambitious clean energy bill that aims to move Illinois to 100% clean energy by mid-century.

For the state’s most highly taxed homeowners, it isn’t nothing. But it’s close.

Davesurance.com insurance broker Dave Castillo said consumers can expect to pay more if such a tax passes, but that money will be matched dollar for dollar by the federal government. House Bill 272, which would impose a 1 percent tax on claims paid by health insurance carriers or third-party administrators to be solely used for funding Medicaid services, remains in a House committee.

If annual income tax revenue growth caused by secular income growth matches the state’s recent experience, the progressive income tax rates passed by the Senate will fail to pay off the state’s pension debt – ever.

In a preliminary plan called “Rebuild Illinois” and shared with legislators Friday, the governor allocated $175 million to build and improve cost-effective housing options primarily for seniors, those who are homeless, and people with disabilities.

The preliminary analysis of Illinois officials pointed to non-wage taxes like capital gains and dividends playing a large part in the revenue surge.

“As a result, this significant one month overperformance cannot safely be extrapolated into future underlying growth,” according to the Commission on Government Forecasting and Accountability.