Illinois Budget Gap a Concern for Municipal Bond Market: Fitch

The video discusses Illinois' financial challenges, focusing on the structural budget gap and pension issues. It highlights the importance of fully funding pension contributions and the impact of tax changes, such as the SALT deduction. Chicago's role as an economic center is emphasized, along with the state's revenue flexibility. The discussion also covers the potential effects of a progressive income tax, which requires a constitutional amendment and voter approval in 2020.

What is the primary concern for Illinois' budget in fiscal years 2019 and 2020?

• A structural budget gap

• A lack of economic growth

• Decreasing population

• High unemployment rates

What is one of the major issues Illinois faces regarding pensions?

• Not fully funding contributions on an actuarial basis

• Lack of pension plans

• Too many pension plans

• Overfunding their pension plans

How does the SALT deduction cap potentially affect Illinois?

• It has no impact on Illinois

• It may lead to people leaving high-tax states

• It encourages people to move to Illinois

• It increases state revenue

What role does Chicago play in Illinois' economy?

• It is a minor city with little economic impact

• It is the economic epicenter of the Midwest

• It is primarily a tourist destination

• It is a major agricultural hub

What is required for the progressive income tax proposal to be implemented in Illinois?

• Approval by the governor only

• Approval by the Senate only

• A constitutional amendment and voter approval

• A simple majority in the House