A look at the damage of Illinois’ 3-year budget impasse
Source: The State Journal-Register

With Illinois approaching a third straight year without a state budget, there were fresh signs Thursday that the effects of the unprecedented stalemate will worsen for residents statewide.

Illinois’ credit rating took another major hit, hours after lawmakers adjourned their regular session for the third year without a budget agreement for the fiscal year beginning July 1. The Illinois comptroller, who controls the state’s checkbook, declared the crisis “unconscionable.” Social service agencies — who’ve estimate over 1 million people including seniors and domestic abuse victims have felt the pain — took stock.

Here’s a look at some of the fallout of the ongoing budget fight between Republican Gov. Bruce Rauner and Democrats controlling the Legislature

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Thought Mortality Was Dead?
Source: Cambridge Associates

Considerations for Pensions Given the IRS’s Delay in Implementing RP-2014

Longevity risk, the risk that plan participants live longer than assumed, gained widespread attention in October 2014 when the Society of Actuaries released its draft of updated mortality assumptions (called RP-2014). Because this was the first update to the standard assumptions in over a decade, the change from the previous tables was noticeable: a boost of life expectancy of two to three years, on average. By 2016, accounting auditors largely required defined benefit plan sponsors to use the updated assumptions on their financial statements, resulting in an average drop in reported funded status of 4%–8%.

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Major Savings and Reforms Budget of the U.S. Government Fiscal Year 2018
Source: Office of Management and Budget

This volume describes major savings and reform proposals included in the 2018 President’s Budget. It includes both discretionary and mandatory savings proposals that bring Federal spending under control and return the Federal budget to balance within 10 years. These proposals encompass a common sense approach to redefine the proper role of the Federal Government, and curtail programs that fall short on results or provide little return to the American people.

In total, this volume highlights 2018 savings of $57.3 billion in discretionary programs, including $26.7 billion in program eliminations and $30.6 billion in reductions. The volume also describes the major mandatory proposals summarized in Table S-6 of the Budget volume.

Going forward, the Administration will build on these proposals in order to implement the President’s charge to create a leaner, more accountable, less intrusive, and more effective Government.

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