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  • The Illinois Report 2008 - The Funding of K-12 Education in Illinois | Institute of Government and Public Affairs
    being adequately funded Education Funding in Illinois School districts are funded by a combination of state local and federal funds Illinois state government contributes about 36 percent of school funding an amount that has stayed flat or slightly decreased over the past few years By contrast communities and the federal government have increased their contributions at twice the state rate in the 2005 and 2006 school years The net result shows that in 2006 Illinois funded slightly more than 35 percent of a school district s budget with the other 65 percent coming from local and federal government If you compare these contributions to the six surrounding states Illinois state contributions are the lowest with Michigan and Minnesota contributing the most at 60 1 percent and 69 6 percent respectively This disparity of contribution no doubt leads to most of the criticism of Illinois state funding for schools Education Funding Standards The First Class Education organization promotes the concept that states and school districts should spend 65 percent of all school funding on classroom instruction as defined by the National Center for Educational Statistics Only 21 Illinois schools spend more than 60 percent on instruction More affluent schools not only spend 30 percent or more on instruction but spent significantly more money related to enhanced instruction and bricks and mortar Using Education Funding Effectively Data moreover suggest that schools demonstrating modest academic gains are increasing their spending at a slightly higher rate than schools with decreasing or stagnant funding Schools that have lower funding but get higher achievement results high payoff schools are moderately large average 1 039 students with the largest white population 96 percent 23 percent receiving free reduced lunch and get 54 percent of their funding from the community and 41 percent from the state These are

    Original URL path: http://igpa.uillinois.edu/library/ILReport08K12 (2016-02-17)
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  • The Illinois Report 2008 - Poverty and Inequality in Illinois | Institute of Government and Public Affairs
    below the appropriate threshold Who is Most Affected by Poverty The incidence of poverty steadily declines with age those younger than 25 are over represented in poverty while those older than 25 are under represented Whites are under represented in poverty in Illinois while blacks are grossly over represented African Americans comprise only 12 percent of the non poor Illinois population but more than one third of the poor while whites make up 65 percent of the Illinois population as a whole and only 40 percent of the poor Hispanics are also substantially over represented in the poverty population Child poverty is a special concern both because those under 18 comprise 35 percent of all poor individuals and because children may be particularly vulnerable to any adverse effects of poverty on lifetime potential While there are more white children in poverty in Illinois white children s poverty is proportionate to their representation in Illinois population while black children s poverty is grossly disproportionate to their presence in the population as a whole Poverty in Illinois There are two distinct landscapes of poverty in Illinois highly urbanized areas and sparsely populated and or depopulating areas Densely populated counties such as Cook and Peoria have high poverty rates In other areas in Illinois it appears that those unable to flee an eroding regional economic base remain behind in poverty Counties such as Vermilion McDonough and Macon for example are experiencing population declines and high rates of poverty Poverty is a counter cyclical phenomenon i e robust economic growth tends to reduce poverty rates and this generates year to year variation in the poverty rate as the overall strength of the economy waxes and wanes In most years Illinois tends to have a lower poverty rate than the entire United States but a high poverty rate for the region Long Term Solutions to Poverty Rigorous research from long range longitudinal studies finds a very high degree of intergenerational correlation of both income and earnings This high degree of immobility between economic classes in U S society in fact helps to explain the intransigency of poverty rates over lengthy periods Given this reality long run solutions to the poverty problem must directly attack this link between generations and break it down for those at the low end of the income earnings spectrum Policies to maximize long run human capital formation by focusing on the early years of life offer the most promise for reducing poverty in future generations Education It is well documented that poverty can be avoided through education The extensive economic literature on the returns to education indicates that an additional year of schooling in the U S has a real financial return in earnings of 8 10 percent per year While Illinois has an above average share of citizens with at least a Bachelor s degree second in the region only to Minnesota it also has a fairly high share of individuals without a high school diploma within the region only

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Poverty (2016-02-17)
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  • The Illinois Report 2008 - Deficient Bridges in Illinois | Institute of Government and Public Affairs
    but it is nevertheless true that many bridges in Illinois require maintenance and upgrading a project which is extremely costly Evaluating the Status of Bridges The Federal Highway Administration evaluates the condition of bridges structure in three places the deck where cars travel the superstructure underneath the deck and the substructure foundation The I 35W bridge in Minnesota was rated poor on superstructure fair on deck and satisfactory on substructure In Illinois 673 bridges have a rating of poor or worse in one of the three key evaluative areas Four of these bridges are on interstates and 402 are on local roads Bridges are eligible for Federal Highway Bridge Replacement and Rehabilitation Program HBRPP funding if they receive a rating of poor or worse and are therefore considered structurally deficient They are also eligible if they are considered functionally obsolete or designed for levels of traffic or purposes which are currently outdated or inefficient 8 percent of bridges in Illinois are functionally obsolete though 24 of cars which drive across bridges are driving across a functionally obsolete bridge Thus heavily traveled bridges seem to be more likely to be functionally obsolete Illinois disparity in this regard is greater than any neighboring states Still Illinois ranks well in comparison to neighbors for the number 11 of structurally deficient bridges and how much traffic they encounter 9 Problematic Areas in Illinois Of all the Illinois regions Peoria seems to have the greatest problem with deficient bridges 21 percent of bridge crossings in Peoria are across structurally deficient bridges The Chicago area on the other hand has problem with functionally obsolete bridges with 27 of bridge crossing there being functionally obsolete due to higher levels of traffic which affects urban areas in general The cost of repairing both structurally deficient and functionally obsolete

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Bridges (2016-02-17)
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  • The Illinois Report 2008 - Illinois Energy Outlook | Institute of Government and Public Affairs
    64 is the cost of crude oil The price of crude oil has risen due to political instability in the key oil producing regions and the increased demand for oil in developing nations such as India and China Additionally oil supplies are shifting from light to heavy crudes which require more processing and yield less gasoline overall Formulation requirement by agencies such as the EPA have fragmented costs in the U S straining refinery capacities and increasing prices in places like the Chicago area and the Illinois suburbs of St Louis where gasoline must be more refined to reduce emissions in the summer months Refinery Capacity and Gasoline Prices Increasing refinery capacity in the U S would be a key way to reduce prices but no new refineries have been built since 1976 Refinery expansion continues to be a controversial issue all over the U S Some industry observers believe that improving technology or operating procedures alone cannot meet increasing demand for gasoline Illinois is fortunate in this regard it has 5 2 of the national capacity and 4 of the 50 largest refineries in the United States Nevertheless Illinois refineries capacity has decreased since the 1980s from 1 024 300 to 903 600 barrels per calendar day Illinois has excellent pipeline connections to crude oil this suggests that Illinois major barrier to producing gasoline in the state is refinery capacity Taxes and Gasoline Prices Taxes constitute about 14 of the price of gasoline nationally Illinois taxes are generally well above the national average and in places like Chicago this can amount to up to 12 75 cents in taxes per gallon The difference in Illinois is due to the difference in sales taxes and the underground fuel storage tank fund tax these taxes are generally regressive and increased transportation

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Energy (2016-02-17)
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  • The Illinois Report 2008 - Health and Healthcare | Institute of Government and Public Affairs
    actions slow the growth in health care spending cut back on efforts to expand insurance and re orient health care spending toward initiatives that address the major health problems facing Illinois today Health Care Reform The most important development in health policy in Illinois last year was Gov Rod Blagojevich s Illinois Covered proposal This is primarily a plan to reduce the number of uninsured in Illinois but it also has elements that will help improve health and hold down the costs of health care Parts of this proposal have been implemented by the governor through executive authority and parts are still waiting legislative approval The Illinois Covered plan represents a major commitment of the state to address the problem of the uninsured and in this regard Illinois is a national leader However full implementation of the program will be quite costly and it is uncertain whether the state has the resources to fully implement such a bold initiative Health Insurance Coverage and Markets In 2006 15 8 percent of the U S population was uninsured up from 15 3 percent in 2005 Private health insurance coverage dropped nationally from 68 5 percent in 2005 to 67 9 percent in 2006 Medicaid enrollment nationally was 12 9 percent in 2006 down slightly from the 13 percent recorded in 2005 By comparison in Illinois the percentage uninsured in 2006 was 14 percent up from 13 7 percent in 2005 Overall Medicaid enrollment in Illinois increased modestly in 2006 to 10 9 percent from 10 8 percent in 2005 In contrast to national trends private health insurance coverage in Illinois increased albeit modestly from 72 7 percent to 72 8 percent There are 100 different health insurance policies available to individuals from seven different insurers via the web based health insurance marketer eHealthInsurance com 31 of which are Health Savings Account HSA eligible For a 38 year old male the premiums range from 60 per month to 320 per month By contrast in a heavily regulated state such as New Jersey there are only 14 plans available from three different insurers none of which are HSA eligible The premiums for these polices for a 38 year old male range from 177 per month to 658 per month Illinois consumers legislators and providers would want to be very cautious about pursuing a heavily regulatory regime in the state health insurance market A New Approach to Managing Medical Malpractice Risk A recently implemented initiative at the University of Illinois Medical Center at Chicago has the potential to reduce the frequency and volatility of medical malpractice claims and to improve the reliability with which victims of medical injury are compensated Now in its third year the initiative shows signs that it may lead to a rapid and significant reduction in the Medical Center s financial burden of its medico legal liability The Medical Center s excess liability insurer has offered to reduce the Center s yearly premium anticipating a reduction in exposure to very large

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Health (2016-02-17)
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  • The Illinois Report 2008 - The Illinois Economy | Institute of Government and Public Affairs
    from 5 342 jobs last year to 4 189 in 2007 Patterns of Economic Growth in Illinois From September 2006 to September 2007 patterns of growth within the state of Illinois differed The non metropolitan areas lost jobs while metropolitan areas have shown impressive growth that exceeds the RMW Seven of the ten major metropolitan areas in Illinois have shown more growth than others Champaign Urbana and Davenport Rock Island Moline both declined while Kankakee remained the same Prospects for Recovery in Unemployment Illinois employment peak came in November 2000 and it has not since been able to recover back to this point Though Illinois continues to create jobs an increasing population and labor force mean that to return to this peak at current levels would require 18 more months 72 000 jobs of growth Current estimates are that Illinois will create between 30 000 and 40 000 jobs in the coming year but the forces affecting these estimates are hard to determine Affects of the Sub Prime Mortgage Crisis The sub prime mortgage crisis will exact a ripple effect on the economy and since much of Illinois trade is with RMW the lagging economy of the area might exact a negative toll on Illinois economy The falling cost of the dollar may help in this regard as Illinois international exports have increased from 26 1 billion in 2003 to 42 1 billion in 2006 Similarly Illinois total share of exports has increased from 3 7 to 4 1 percent in the same time Illinois share of GDP however fell from 4 7 to 4 5 percent 30 years ago this was 6 percent Illinois Gross Product Illinois gross product grew just below the US s rate of 3 4 percent at 3 percent This is significantly above the RMW

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Economy (2016-02-17)
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  • The Illinois Report 2008 - Illinois' Fiscal Future | Institute of Government and Public Affairs
    a whole While comparisons with other states are interesting Illinois relatively low spending in 2004 does not necessarily mean that it is spending too little There may be other factors at play such as 2004 may not be a representative year Illinoisans may have less need for government sponsored health care or other levels of government may provide more health care in Illinois Other states may spend too much or Illinois may be more efficient at delivering services than other states Education In 2004 Illinois spent less per capita on K 12 education than a number of other large states and the nation as a whole Again this does not necessarily mean that Illinois is spending too little Local government has greater than average responsibility for funding education in Illinois Other states may spend too much or Illinois may be able to deliver education at lower cost than other states Business Taxes Illinois business taxes are not very different from other similar states Of course this does not mean that the level of business taxes is appropriate but it does suggest that relative to its most prominent competitors the level of business taxes in Illinois is neither a big advantage nor disadvantage One Time Revenue There are two types of one time or non recurring revenue windfall revenue is money the state obtains on a one time basis without giving up future claims on an asset and liquefied assets are revenues the state obtains by converting an existing asset to current revenue or by borrowing Borrowing Regardless of whether it is good state policy to invest borrowed money through pension funds sound fiscal management dictates that borrowed money should not be used to pay operating expenses While Governor Blagojevich s public statements suggested that all the borrowed money would be used to pay down the state s very significant pension debt the precedent set in 2003 and 2004 when more than 2 billion from pension obligation bonds went to the general fund suggests that Illinois might be cautious in pursuing this strategy Leasing the Lottery Even if leasing of the lottery generated a bid equal to or greater than the value of the stream of revenue the state would have generated from the lottery it would create a temporary cash flow problem under Governor Blagojevich s plan because the leasing payment would be deposited into the pension fund Some new revenue source would be required to offset the loss to the general fund because even without the sale of the lottery planned spending exceeds expected income Options for Illinois Fiscal Future Change the personal income tax base to federal income tax liability This option would convert Illinois personal income tax to a surcharge on the federal income tax and each Illinoisan s personal income tax liability would simply be a share of their federal income tax liability Expand the sales tax to cover consumer services This change would broaden the sales tax to include an important and growing segment of

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Fiscal (2016-02-17)
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  • The Illinois Report 2008 - Introduction | Institute of Government and Public Affairs
    we present the current status draw comparisons with national and regional trends and offer some possible solutions A wide range of policy issues are discussed throughout the report For instance the structural deficit in state finances is analyzed and the possibility of the conversion of Illinois personal income tax to a surcharge on federal income tax liability is suggested as one option to consider There is great uncertainty surrounding the national and state economies Through 2007 Illinois has continued to under perform in the period of recovery since the 2000 downturn and it does not appear that this year will render significant improvements However Illinois position in the Midwest puts it in a strategic position in terms of regional markets and resources Healthcare has become an increasingly urgent topic nationwide and the situation in Illinois is no different While healthcare coverage has stayed consistent for the past 10 years there are other distressing trends in this area including an increase in obesity and a widening ethnic disparity in health and healthcare access It is concluded that meaningful advances in eliminating these disparities must come from new policy initiatives with public health initiatives playing a key role It is apparent that major deficiencies exist in Illinois funding of K 12 education While all Illinois schools receive state funding there is a large achievement gap between the highest and lowest performing schools The report proposes that an increase in state contributions coupled with support and guidance can increase the quality of the educational experience for Illinois students and help under performing schools attain their academic expectations With the publishing of this report the Institute of Government and Public Affairs seeks to spark innovation in the policy forum Finding solutions to these and the other issues presented in The Illinois Report 2008 is

    Original URL path: http://igpa.uillinois.edu/library/ILReport08Intro (2016-02-17)
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