Illinois Insights: An Update from Cozen O’Connor (11/20)
November 20, 2023
November 20, 2023
Governor’s Office of Management and Budget releases its Economic and Fiscal Policy Report
Last week, the Governor’s Office of Management and Budget (GOMB) released the Illinois Economic and Fiscal Policy Report. The report includes a revised revenue and spending forecast for FY 2023 and a five-year budgetary forecast.
An upward revision to the FY 2023 projected operating revenues shows a proposed increase of nearly $1.5 billion over the enacted budget. The projected increase can be attributed to higher-than-expected income and sales tax collections through the first four months of the year.
After accounting for the supplemental budget pressures, the revised FY 2024 surplus is projected to total $422 million.
The budget office warned, however, that “most of this fiscal year 2024 revenue forecast revision is assumed to be one-time in nature” while some cost increases and other spending pressures are not.
Additionally, GOMB is estimating that expenditures for FY 2025 will exceed projected FY 24 revenues, resulting in a projected deficit of $891 million.
The full report can be read here.
State to conduct audit of immigrant healthcare programs as costs keep rising
“The Illinois Auditor General will conduct an audit of the state’s two healthcare programs that provide healthcare coverage for people over age 42 as costs for the program continue to exceed budget limits,” by The Daily Line.
Illinois school board weighs increased funding requests ahead of budget season
“Under the law, the state is required to add at least $350 million in new funding each year to its preK-12 spending, with the bulk of that money earmarked for districts that are the least adequately funded. During the budget hearings, however, advocates pushed for an even bigger increase – roughly $550 million,” by Crain’s Chicago Business.
City of Chicago Announces New Shelter Stay Policy, Additional Landing Zone Personnel and New Regulatory Measures
“With the aim of accelerating resettlement efforts for new arrivals, the City of Chicago is announcing the next phase of the New Arrivals Mission. Three new efforts build upon the work that the City has been doing for the past year,” from the Office of Mayor Johnson.
City Officials Set Mid-January Deadline for Some Migrants to Leave City Shelters; Rest Will Have to Leave by April
“Migrants who have been staying in city-run shelters since 2022 — as well as those who arrived Friday — will have to find permanent housing by mid-January, as Mayor Brandon Johnson moves to limit the city resources available to the more than 21,300 people sent to Chicago from the southern border on buses paid for by Texas Gov. Greg Abbott,” by WTTW.
Mayor Johnson’s budget relies on tens of millions in additional fines
“In all, the mayor expects to bring in $348 million from things like parking tickets, red-light and speed enforcement fines, moving violations, booting fees, sanitation code violations and housing court fines,” by the Chicago Tribune.
Chicago Awarded an Anticipated $17 Million CDC Grant to Bolster Overdose Prevention
“The City of Chicago has been selected as a recipient of a $17 Million grant over five years from the Centers for Disease Control and Prevention (CDC) to address the opioid epidemic through the Overdose Data to Action (OD2A) program. The grant represents a transformative opportunity to strengthen ongoing efforts in combating the overdose crisis and reducing overdose-related harms,” from the Office of Mayor Brandon Johnson.
South Chicago Neighbors Skeptical Of Alderman’s Plan To Oust Group Overseeing Business District
“South Chicago neighbors and the former alderman packed a public meeting Thursday to criticize Ald. Peter Chico’s (10th) proposal to ‘possibly’ oust the organization that oversees the taxing district to improve Commercial Avenue,” by Block Club Chicago.
Beltway Briefing, Government Funding: A 2024 Problem
In the midst of heated debates and elbows, Congress kicks the “government funding can” down the road by passing a laddered continuing resolution (CR), allowing the government to stay open over the holidays and punting funding negotiations into the new year. Looking ahead to 2024 retirements, redistricting and aspirations for higher office, Washington braces itself for high turnover and a competitive race for control of both chambers. Featuring CPS’ Patrick Martin, Towner French and Kaitlyn Martin.
Listen to the Beltway Briefing here.
If you have any questions regarding this update or if you’re interested in ways to engage on these issues, please contact one of our team members here.
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February 22, 2024
February 22, 2024