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Mon March 3, 2014
Civic Federation Has Plan To Balance Illinois Budget
The Civic Federation is releasing a new proposal it says will balance Illinois' budget, eliminate its bill backlog and reduce taxes.
The plan includes capping spending to help the state pay off its $5.4 billion backlog of unpaid bills over the next five years.
It also would extend the state's temporary income tax increase by a year before reducing tax rates gradually, and calls for taxing pension and social security income.
Officials from the government research group also suggest building a ``rainy day'' fund to help state budgeters cope with future economic downturns.
They say implementing the plan would allow Illinois to move beyond a ``perpetual fiscal crisis.''
Authors herald the recent pension reform legislation passed by the Legislature, but say that won't be enough to solve the problem.