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...
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     Corporate             Income Tax   Income Tax             Rate    ...
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 Midwestern States                 Personal    Personal Tax       Corporate   Corporate Tax       ...
States with Graduated Rates and Gross Receipts                    Taxes• Wisconsin: Income over $10,180 is taxed at 6.15% ...
How Illinois Compares to Midwestern States  • Indiana, Iowa, Kentucky, Michigan,    Missouri and Ohio Allow Local    Gover...
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
President Cullerton Civic Federation presentation.
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President Cullerton Civic Federation presentation.

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President Cullerton Civic Federation presentation.

  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. Pension Cost as % of Total GRF Spending
  4. 4. Growth in Unfunded Pension Liability
  5. 5. Growth in Unfunded Pension Liability: Impact of Market Collapse
  6. 6. Medicaid Full Benefits Enrollment
  7. 7. Medicaid Full Benefits Enrollment – Type of Enrollees
  8. 8. State and Federal Contributions to the Medicaid Program Including Federal Match Rate
  9. 9. 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
  10. 10. 2011 Budget Stabilization Plan Personal Corporate Income Tax Income Tax Rate RatePrior Rate 3.0% 4.8%2011-2014 5.0% 7.0%2015-2024 3.75% 5.20%2025 3.25% 4.80%
  11. 11. 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%
  12. 12. How Illinois Compares to Midwestern States Personal Personal Tax Corporate Corporate Tax Income Rates Income Rates Brackets BracketsILLINOIS Flat 5.0% (through Flat 7.0% (through 2014) 2014)Wisconsin 5 4.6% to 7.75% Flat 7.9%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%Michigan Flat 4.35% Flat 4.95%Minnesota 3 5.35%-7.85% Flat 9.8%Ohio 9 .587%-5.925% Flat 0.26%
  13. 13. States with Graduated Rates and Gross Receipts Taxes• 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• Ohio: Income over $102,100 is taxed at 5.451% and up• Michigan and Ohio charge a form of a Gross Receipts Tax on corporate income
  14. 14. How Illinois Compares to Midwestern States • Indiana, Iowa, Kentucky, Michigan, Missouri and Ohio Allow Local Governments to Charge an Additional Local Personal Income Tax Rate • Illinois Remains the Only State Listed That Does Not Tax Retirement Income

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