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What we’ll discuss• Some of the successes we’ve had despite  the economic downturn• The state of the current budget• And w...
What Illinois Encountered• Climbing Pension Costs Due to 1995  Pension Law and 2008 Market Collapse• More People Qualifyin...
Active Membership, Years of Service in the          Big Three Systems                   Active Membership, Years of Servic...
Pension Cost as % of Total GRF          Spending
Growth in Unfunded Pension Liability
Growth in Unfunded Pension Liability:     Impact of Market Collapse
Medicaid Full Benefits Enrollment
Medicaid Full Benefits Enrollment – Type of                Enrollees
State and Federal Contributions to the Medicaid    Program Including Federal Match Rate
What Did the 2011 Tax Increase Do?• Purpose: Budget Stabilization and  Correcting the State’s Structural Deficit• Increase...
2011 Budget Stabilization Plan                  Personal Income    Corporate Income                  Tax Rate           Ta...
History of Illinois Individual Income Tax• 1969: Gov. Ogilvie Creates a State Income Tax at a  2.5% Rate• 1983: Gov. Thomp...
How Illinois Compares to Neighboring States                Personal    Personal     Corporate   Corporate                 ...
How Illinois Compares to Neighboring States• Wisconsin: Income over $10,180 is taxed at 6.15% and  up• Iowa: Income over $...
How Illinois Compares to Neighboring StatesIllinois Remains theOnly State Listed ThatDoes Not TaxRetirement Income
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
Senate President Cullerton Taxpayers Federation Slideshow
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Senate President Cullerton Taxpayers Federation Slideshow

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  • The law that took effect is designed to not really kick in until FY 11 and unfortunately the collapse of the markets in 2008 precipitated a spike in the pension contribution.
  • Transcript of "Senate President Cullerton Taxpayers Federation Slideshow"

    1. 1. What we’ll discuss• Some of the successes we’ve had despite the economic downturn• The state of the current budget• And what path we can take in the upcoming budget year
    2. 2. What Illinois Encountered• Climbing Pension Costs Due to 1995 Pension Law and 2008 Market Collapse• More People Qualifying for Entitlement Programs Like Medicaid
    3. 3. Active Membership, Years of Service in the Big Three Systems Active Membership, Years of Service Distribution* As of June 20, 2011 System/Years % of < 15 20-24 25-29 30+ Total Service Total 15-19 TRS 67.4% 92,836 17,753 11,384 7,827 7,911 137,711 SERS 54.9% 36,463 8,971 9,734 6,118 5,077 66,363 SURS 74.1% 56,344 8,123 6,515 3,531 1,486 75,999 Total 185,643 66.2% 34,847 27,633 17,476 14,474 280,073 66% of all Active Members have 15 or fewer years of service in TRS, SERS or SURS *JRS has 966 total actives. GAS has 180 total actives. No distribution available in the actuarial reports.
    4. 4. Pension Cost as % of Total GRF Spending
    5. 5. Growth in Unfunded Pension Liability
    6. 6. Growth in Unfunded Pension Liability: Impact of Market Collapse
    7. 7. Medicaid Full Benefits Enrollment
    8. 8. Medicaid Full Benefits Enrollment – Type of Enrollees
    9. 9. State and Federal Contributions to the Medicaid Program Including Federal Match Rate
    10. 10. What Did the 2011 Tax Increase Do?• Purpose: Budget Stabilization and Correcting the State’s Structural Deficit• Increased for four years the State’s personal income tax rate by 2 percentage points• Increased for four years the State’s corporate income tax rate by 2.2 percentage points
    11. 11. 2011 Budget Stabilization Plan Personal Income Corporate Income Tax Rate Tax RatePrior Rate 3.0% 4.8%2011-2014 5.0% 7.0% (not 9.5%)2015-2024 3.75% 5.20% (not 7.75%)2025 3.25% 4.80% (not 7.3%)• There is no personal property tax in Illinois like in Wisconsin, Indiana, Kentucky, Missouri and most states.
    12. 12. History of Illinois Individual Income Tax• 1969: Gov. Ogilvie Creates a State Income Tax at a 2.5% Rate• 1983: Gov. Thompson Raises the Rate to 3%; the Rate returns to 2.5% in 1984• 1989: Gov. Thompson Approves Another Temporary Increase to 3%; the Rate was Expected to Fall to 2.75% by 1993• 1993: Gov. Edgar Makes a Permanent Increase in the Rate to 3%• January 2011: Gov. Quinn Approves a Temporary Increase in the Rate to 5%
    13. 13. How Illinois Compares to Neighboring States Personal Personal Corporate Corporate Income Tax Rates Income Tax Rates Brackets BracketsILLINOIS Flat 5.0% Flat 7.0% (through (through 2014) 2014)Wisconsin 5 4.6% to Flat 7.9% 7.75%Indiana Flat 3.4% Flat 8.5%Iowa 9 0.36%-8.98 4 6%-12% %Missouri 10 1.5%-6% Flat 6.25%Kentucky 6 2%-6% 3 4%-6%
    14. 14. How Illinois Compares to Neighboring States• Wisconsin: Income over $10,180 is taxed at 6.15% and up• Iowa: Income over $13,221 is taxed at 6.12% and up• Missouri: Income over $9,000 is taxed at 6.0%• Kentucky: Income over $5,000 is taxed at 5.0% and up• Indiana: Counties can levy a personal income tax on top of the Statewide rate
    15. 15. How Illinois Compares to Neighboring StatesIllinois Remains theOnly State Listed ThatDoes Not TaxRetirement Income
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