State of Illinois Budget<br />An Uphill Battle<br />
Uncontrolled Spending<br />FY2003 spending has increased $4.3 billion or 19%!<br />
Borrowing to Spend<br />
Worst Funded Pension System in the Nation<br />
Unpaid Bills<br />
Exploding Medicaid Growth<br />
Medicaid is the Largest Insurer in the State<br /><ul><li>Covers 2.8 million Illinoisans
Covers 1 of every 5 Illinoisans
Covers 1 of every 2 births in Illinois
Covers 2 of every 3 nursing home residents in Illinois
Covers 1 of every 3 children in Illinois</li></li></ul><li>More People and Higher Costs<br />
Lagging Behind<br />
Lagging Behind<br />
Business Climate<br /><ul><li>Chief Executive Magazine ranks Illinois 46th in the nation of best states in which to do bus...
In this year’s ranking Chief Executive Magazine ranked Illinois as the biggest loser over the last 5 years, as we dropped ...
Citizens of Chicago pay the highest sales tax (9.75%) of any city in the nation.
Forbes Magazine ranked Illinois #50 (worst in the nation) for debt burden.  According to Forbes, we have the worst debt pr...
Overall Economic Performance*<br />*Historical measure based on a state’s performance in three important performance varia...
Losing Jobs<br /><ul><li>Illinois ranks 47th in the nation in job growth.
Only three states in the nation have performed more poorly than Illinois over that time period. (Michigan, Ohio & Rhode Is...
Illinois has LOST almost 250,000 jobs.
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Watson budget challenge and responsibility 2011

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Watson budget challenge and responsibility 2011

  1. 1. State of Illinois Budget<br />An Uphill Battle<br />
  2. 2. Uncontrolled Spending<br />FY2003 spending has increased $4.3 billion or 19%!<br />
  3. 3. Borrowing to Spend<br />
  4. 4.
  5. 5. Worst Funded Pension System in the Nation<br />
  6. 6. Unpaid Bills<br />
  7. 7.
  8. 8.
  9. 9. Exploding Medicaid Growth<br />
  10. 10. Medicaid is the Largest Insurer in the State<br /><ul><li>Covers 2.8 million Illinoisans
  11. 11. Covers 1 of every 5 Illinoisans
  12. 12. Covers 1 of every 2 births in Illinois
  13. 13. Covers 2 of every 3 nursing home residents in Illinois
  14. 14. Covers 1 of every 3 children in Illinois</li></li></ul><li>More People and Higher Costs<br />
  15. 15.
  16. 16.
  17. 17. Lagging Behind<br />
  18. 18. Lagging Behind<br />
  19. 19. Business Climate<br /><ul><li>Chief Executive Magazine ranks Illinois 46th in the nation of best states in which to do business. The ranking is done by surveying 600 major company CEOs.
  20. 20. In this year’s ranking Chief Executive Magazine ranked Illinois as the biggest loser over the last 5 years, as we dropped from ranking 17th to 46th in the last five years.
  21. 21. Citizens of Chicago pay the highest sales tax (9.75%) of any city in the nation.
  22. 22. Forbes Magazine ranked Illinois #50 (worst in the nation) for debt burden. According to Forbes, we have the worst debt problem of any state in the country.</li></li></ul><li>Average Worker’s Compensation Costs (per $100 of payroll)<br />*Source: 2009 ALEC-Laffer State Economic Competitiveness Index<br />
  23. 23. Overall Economic Performance*<br />*Historical measure based on a state’s performance in three important performance variables: Personal Income Per Capita Cumulative Growth, Absolute Domestic Migration and Non-Farm Payroll Employment Cumulative Growth -- all highly influenced by state policy.<br />Source: 2009 ALEC-Laffer State Economic Competitiveness Index<br />
  24. 24. Losing Jobs<br /><ul><li>Illinois ranks 47th in the nation in job growth.
  25. 25. Only three states in the nation have performed more poorly than Illinois over that time period. (Michigan, Ohio & Rhode Island).
  26. 26. Illinois has LOST almost 250,000 jobs.
  27. 27. During that same time period, 30 other states added jobs.
  28. 28. Illinois LOST over 4% of its jobs while the average state INCREASED jobs by 1.7%.
  29. 29. If Illinois had simply grown at the national average, we’d have 350,000 more jobs today.
  30. 30. If Illinois had grown jobs at the rate of Texas, which grew jobs at over 10%, we’d have over 850,000 more jobs today and almost $3 Billion in associated state revenue annually.</li></li></ul><li>Credit Rating<br /><ul><li>Illinois has the lowest credit rating of any state in the nation.
  31. 31. Every other state in the nation is operating in the same national economy, yet we are rated worst. We’re not just like every other state. We’re worse than every other state.
  32. 32. Almost half of all the credit downgrades in the history of Illinois have occurred on Pat Quinn’s watch.
  33. 33. We’ve been downgraded 8 times in less than two years (of 17 total in history).
  34. 34. Lower credit ratings mean higher interest payments for Illinois taxpayers.
  35. 35. These downgrades will cost taxpayers hundreds of Millions of dollars.
  36. 36. Illinois has one of the highest risks of default of any sovereign government in the world.
  37. 37. Lately, Illinois regularly ranks in the top 10 highest default risks with countries like Iraq, Greece, Pakistan and Iceland.</li></li></ul><li>
  38. 38.
  39. 39. Taxes and your Bottom Line<br />Source: Illinois Policy Institute<br />
  40. 40. Effective Corporate Taxes<br />Pre-Lame Duck: 7.3%<br />Post-Lame Duck: 9.5%<br />We are now FOURTH highest in the nation.<br />Worldwide, our corporate taxes are higher than Japan.<br />
  41. 41. Increases in the State Spending Cap<br />16.63% increase over four years<br />
  42. 42. Solutions!<br /><ul><li>No new spending until the state can pay its bills within 30 days
  43. 43. Cut overall spending by 10%
  44. 44. Further Medicaid reforms
  45. 45. Pension concessions with guaranteed funding
  46. 46. Forensic Audit
  47. 47. Zero Based Budgeting
  48. 48. Sell state fleet of cars and airplanes
  49. 49. Eliminate Lieutenant Governor office
  50. 50. Combine comptroller and treasurer
  51. 51. More on JimWatsonIllinois.com</li>

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