Tuesday, September 27, 2011

Illinois budget deficit to hit $8 billion despite 67% tax increase

(W)hile lawmakers cut spending for state agencies this year, the reductions were offset by higher pension costs and the growing cost of paying back years of increased borrowing to keep Illinois afloat - Chicago Tribune

"What we're seeing is that even after a considerable tax increase and a commitment by the Illinois General Assembly to set expenditures based on revenues, because of the manipulations to under fund Medicaid and the growing debt service and pension contribution costs, the state remains in an unstable and unsustainable fiscal situation," said Laurence Msall, Civic Federation president.