Prior to the COVID-19 pandemic, Illinois’ financial health was the worst in the nation. An unprecedented influx of federal stimulus and bailouts, combined with stronger-than-expected rebounds in tax revenues, saved Illinois from financial ruin. If state lawmakers do not take advantage of this incredibly rare opportunity and pursue structural financial reforms, then state finances will return to their pre-pandemic status quo.
After years of enhanced revenue from federal aid, a return to the basic principles of budgeting can put Illinois on the path to long-term financial stability
Illinois’ pension debt is the highest of any state. An easy fix to state law would start the Tier 3 retirement program, saving $577 million while workers gain options.