0
Balanced Budget
$8.0 Billion
11%
$27.8 Billion
39.0%
$35 Billion
50%
FY14: All Funds Budget
$71 Billion
Federal Funds Other State Funds Ge...
Personal Income
45%
Corporate Income
8%
Sales
21%
Other Sources
15%
Federal Receipts
11%
FY14 General Revenue Funds by Sou...
Government Services
3.3%
Public Safety
and Regulation
4.8%
Human Services
14.7%
P- 12
18.9%
Higher Ed
5.6%
Medicaid/Health...
Paying Our Bills
Paying Bills
• The budget office
estimates that we will end
the current fiscal year with
$3.5 billion less bills on
hand w...
Pension Obligation
Bonds Issued in
FY10 and FY11
• For fiscal years 10 and
11, the state issued $7.166
billion in bonds to...
Pension Obligation
Bonds Issued in
FY10 and FY11
• Strong performance has
meant a return of nearly
$1.52 billion to the pe...
$9.2
$8.0
$9.1
$6.1
$5.6
$8.8
$8.0 $7.0
$6.1
$5.0
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
FY10 FY11 F...
Taxes
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000...
6.00% 6.25%
7.00%
7.90% 8.00%
12.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Kentucky Missouri Illinois Wiscons...
Government Services - $1,178
3%
Public Safety and
Regulation - $1,692
5%
Human Services - $5,202
15%
P- 12 - $6,687
19%
Hi...
Pensions
0%
5%
10%
15%
20%
25%
30%
GRF Pension Cost as a Percentage of Total General
Funds
Current Law; Assuming No Expiration of T...
0%
5%
10%
15%
20%
25%
30%
GRF Pension Cost as a Percentage of Total General
Funds
Comparison; Assuming No Expiration of Ta...
Questions and Answers
Upcoming SlideShare
Loading in...5
×

Draft sjr ppt

296

Published on

ililinois Senate Democrats explain the Balanced Budget plan.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
296
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • The red slice of the pie represents Other State Funds. There are over 700 state funds, or checking accounts. Examples include the Road Fund, which funds road construction and maintenance, and the Medical Disciplinary Fund, which doctors pay into through their license fees and then use to fund the agency that regulates physicians.
  • Other sources include gaming proceeds and utility taxesFederal receipts are the match we generate on Medicaid spending
  • The Governor’s introduced budget include a $145 million cut to money the state uses to reimburse school districts for the cost of transporting students
  • So here is Illinois personal rate at 5%. It is flat, regardless of income level.Now, let’s take a look at: (Illinois 5% rate will appear first, followed by this list)Indiana, which yes, is lower although individual counties can assess an income tax on top of the state rateKentuckyMissouriWisconsinAnd IowaOh and wait, as a reminder, Illinois rate drops to 3.75% on January 1, 2015. That’s law. And THAT puts us lower than Indiana. DatesIndividual Corporate1/1/11-12/31/14 5.0% 7.0%1/1/15 – 12/13/24 3.75% 5.25%1/1/25 – 3.25% 4.8%Illinois’ corporate income tax rate is sometimes listed as 9.5%. That rate includes 2.5% Personal Property Tax Replacement Income Tax collected for local governments. (corporations: 2.5% of federal taxable income; partnerships, trusts, and “S” corporations: 1.5% of federal taxable income)
  •  DatesIndividual Corporate1/1/11-12/31/14 5.0% 7.0%1/1/15 – 12/13/24 3.75% 5.25%1/1/25 – 3.25% 4.8%Illinois’ corporate income tax rate is sometimes listed as 9.5%. That rate includes 2.5% Personal Property Tax Replacement Income Tax collected for local governments. (corporations: 2.5% of federal taxable income; partnerships, trusts, and “S” corporations: 1.5% of federal taxable income)
  • $5.4 billion dollars lostWhat does that mean in terms of state spending?Well, we can’t cut debt service costs. We already have the lowest ratio of state employees to population in the nation.So let’s look at three major areas of discretionary spending: human services, p-12, and higher educationA $5.4 billion loss is a 39% hit to those budgetsIf we were to spread that proportionally, p-12 would lose $2.6 billion. That’s more than half of the $4.4 billion we will spend on state aid to school districts this year
  • In FY10 and FY11, TRS and SURS DID receive GRF before bonds were sold and bond proceeds were distributed to the systems. The GRF they received prior to the bond sale was NOT returned to GRF. This is why the 5.1% and 4.8% , respectively, appears.
  • I’m proud of many of the accomplishments made by Senate Democrats in the last few years. Many of those successes were on issues of vital importance to this region. Here are just a few: We passed a responsible concealed-carry measure. In the wake of a ruling by the U.S. 7th Circuit Court of Appeals that declared the state’s ban on the right to carry unconstitutional, Forby has been collaborating with colleagues from both sides of the aisle to bring Illinois in line with the 49 other states who have some form of concealed carry. We passed fracking legislation. And it goes without saying that Southern Illinois has been known as a resource-rich area with deep coal deposits and an abundance of fertile farm ground. During the spring session, a push has been made by Forby and other local lawmakers to tap what is being called one of the largest natural gas reserves in the Midwest. We are proud of our commitment and fight to keep Tamms open as both an important jobs center for the region and a deterrent within the criminal justice system.
  • Transcript of "Draft sjr ppt"

    1. 1. Balanced Budget
    2. 2. $8.0 Billion 11% $27.8 Billion 39.0% $35 Billion 50% FY14: All Funds Budget $71 Billion Federal Funds Other State Funds General Revenue Funds $3.6 billion of $35 billion GRF is attributed to federal match on Medicaid spending.
    3. 3. Personal Income 45% Corporate Income 8% Sales 21% Other Sources 15% Federal Receipts 11% FY14 General Revenue Funds by Source $35.5 Billion Personal Income - $16.0B Corporate Income - $2.9B Sales - $7.4B Other Sources - $5.1B Federal Receipts - $4.0B
    4. 4. Government Services 3.3% Public Safety and Regulation 4.8% Human Services 14.7% P- 12 18.9% Higher Ed 5.6% Medicaid/Healthcare 23.5% Pensions 16.9% Debt Service on Pension Bonds 4.7% Debt Service on Capital Bonds 1.7% Public Transportation 1.9% Transfers to Local Governments 4.3% FY 2014 Enacted GRF Discretionary and Non-Discretionary Appropriations $35 billion Government Services - $1,178 Public Safety and Regulation - $1,692 Human Services - $5,202 P- 12 - $6,687 Higher Ed - $1,991 Medicaid/Healthcare - $8,311 Pensions - $5,988 Debt Service on Pension Bonds - $1,655 Debt Service on Capital Bonds - $527 Public Transportation - $664 Transfers to Local Governments - $1,508 State Employees = $4 billion (11%) $ below in millions
    5. 5. Paying Our Bills
    6. 6. Paying Bills • The budget office estimates that we will end the current fiscal year with $3.5 billion less bills on hand when compared with FY12 •Major reforms to state law will continue to drive this number down in later years $9.1 $6.1 $2.8 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 FY12 FY13 est. FY14 est. Unpaid Bills: End of Fiscal Year ($ in Billions) By FY14 half of the unpaid bills will be less than 60 days old. $2.8 $5.6 total
    7. 7. Pension Obligation Bonds Issued in FY10 and FY11 • For fiscal years 10 and 11, the state issued $7.166 billion in bonds to make the required contribution to the pension systems • By the end of fiscal year 14, the state will retire $3.8 billion in costs associated with those bonds $802,477 $1,791,240 $2,765,815 $3,817,370 $5,036,678 $5,818,607 $6,870,770 $7,874,648 $8,827,541 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cumulative Debt Service Paid by the End of Each Fiscal Year ($ In Thousands)
    8. 8. Pension Obligation Bonds Issued in FY10 and FY11 • Strong performance has meant a return of nearly $1.52 billion to the pension systems, or $806 million more than the interest costs •Bonds will retire by FY20 $715,392,200 $1,521,163,041 $0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 Interest Return FY10 and FY11 POBs Interest vs. Return July 1, 2010 through July 1, 2013 Difference = $805.77 million
    9. 9. $9.2 $8.0 $9.1 $6.1 $5.6 $8.8 $8.0 $7.0 $6.1 $5.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 FY10 FY11 FY12 FY13 est. FY14 est. End of Fiscal Year - Bills and Combined Debt Service on Pension Bonds ($ in Billions) Bills Owed Bonds Owed $7.4 billion in combined debt service and backlog reduction since FY10
    10. 10. Taxes
    11. 11. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 TaxRate Income (Married Filing Jointly) *Indiana's tax rate includes an average county tax rate of 1.28% Personal Income Tax Rates of Midwestern States Iowa Wisconsin Missouri Kentucky Illinois Indiana Illinois - 2015
    12. 12. 6.00% 6.25% 7.00% 7.90% 8.00% 12.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Kentucky Missouri Illinois Wisconsin Indiana Iowa IncomeTaxRate Top Corporate Marginal Income Tax Rates of Midwestern States
    13. 13. Government Services - $1,178 3% Public Safety and Regulation - $1,692 5% Human Services - $5,202 15% P- 12 - $6,687 19% Higher Ed - $1,991 6% Medicaid/Healthcare - $8,311 23% Pensions - $5,988 17% Debt Service on Pension Bonds - $1,655 5% Debt Service on Capital Bonds - $527 1% Public Transportation - $664 2% Transfers to Local Governments - $1,508 4% FY 2014 Enacted GRF $35 billion $ in Millions State Employees = $4 billion (11%) Human Services, P-12, and Higher Education Total $13.88 billion
    14. 14. Pensions
    15. 15. 0% 5% 10% 15% 20% 25% 30% GRF Pension Cost as a Percentage of Total General Funds Current Law; Assuming No Expiration of Tax Increase FY 1996 - FY 2046 (Projected) Notes: All future projections of State pension contributions come from the Retirement System Actuaries. Only the GRF portion of the regular pension appropriation plus pension bond debt service is shown here. GRF FY 2013-2016 projections provided by CoGFA's revenue staff; figures for FY 2017 - 2045 used an assumed growth rate of 2.3%. Approximately 66% of SERS' total annual appropriation is assumed to come from GRF while the rest comes from other State Funds not shown here. FY 2010 and FY 2011 amount do not reflect the pension bond/note proceeds pursuant to P.A. 96-0043 and P.A. 96-1497.
    16. 16. 0% 5% 10% 15% 20% 25% 30% GRF Pension Cost as a Percentage of Total General Funds Comparison; Assuming No Expiration of Tax Increase FY 1996 - FY 2045 (Projected) Statutory Contributions SB 2404 SB 1 Notes: All future projections of State pension contributions come from the Retirement System Actuaries. Only the GRF portion of the regular pension appropriation plus pension bond debt service is shown here. GRF FY 2013-2016 projections provided by CoGFA's revenue staff; figures for FY 2017 - 2045 used an assumed growth rate of 2.3%. Approximately 66% of SERS' total annual appropriation is assumed to come from GRF while the rest comes from other State Funds not shown here. FY 2010 and FY 2011 amount do not reflect the pension bond/note proceeds pursuant to P.A. 96-0043 and P.A. 96-1497. Projections including transfers pursuant to the PSA were not available for neither GARS nor JRS. SB 2404 choice: Younger 50% of Actives Elect Choice A, Older 50% of Actives and 100% of Inactives Elect Choice B, Option 2; Retirees: 100% Elect Choice A
    17. 17. Questions and Answers
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×