The Federal Reserve Bank of Chicago recently co-hosted a conference featuring analysis and discussion among local and national budget experts to better understand the fiscal condition of states and prospects for economic recovery after several years of ongoing financial stress. The meeting was co-hosted by the by the Federal Reserve Banks of Philadelphia and New York in partnership with the John…
The Civic Federation released today a comprehensive set of forty recommendations to improve the City of Chicago’s long-term fiscal condition. The new Federation report includes reforms that can be implemented now and over the next few fiscal years and cover a wide array of functions, from public works to procurement to pensions. The Civic Federation has in recent years become increasingly…
The purpose of this report is to provide the City of Chicago’s Mayor and City Council with detailed recommendations on ways to address the City’s serious financial challenges and create a government that is more efficient, less costly and more accountable. On February 14, 2011, the Civic Federation released Financial Challenges for the New Mayor which identifies the most significant fiscal issues…
Since Cook County passed its FY2011 budget in February 2011, it has been evident that the County’s public health system would face major hurdles in achieving the budget goals. The size of those hurdles became clearer on June 24, 2011 at a meeting of the Board of Directors of the Cook County Health and Hospitals System. The Health System is expected to be slightly under budget on expenses for…
The Illinois General Assembly reconvened on June 22, 2011 for an extra day of the spring session to sort out several issues that were not addressed three weeks ago when the legislature adjourned after approving a $33.2 billion budget. Both the House and the Senate took action to reauthorize the State’s ongoing $31-billion capital program, which was first enacted in FY2010. As previously discussed…
The decision by the Chicago Public Schools Board to rescind an annual wage increase to employees in the CPS union is the focus of this article. The Civic Federation says that the action is necessary in light of CPS' enormous budget deficit.
Despite a significant increase in Illinois’ corporate income tax rate enacted in January 2011, much of the anticipated new State revenue will be offset by corporate tax incentives provided in recent changes to the federal tax code. Known as bonus depreciation, the federal rule allows businesses to take an upfront deduction for the cost of capital investments in machinery or equipment from their…
Although lawmakers have been considering ways to cut the State of Illinois’ costs for state retiree health insurance, the General Assembly adjourned on May 31, 2011 without taking action on the issue. A bill (Senate Bill 175) to require all retirees to pay a share of the cost for insurance premiums cleared the Senate Executive Committee on May 29 by a vote of 9 to 6. However, the sponsor, Senator…
A critical fiscal process for state and local governments is the planning and funding of capital projects. The literature on best practices for capital budgeting is not as robust as for operating budgets and there is significant variety in the practices of governments. There are a number of factors that add complexity to capital planning, including the multi-year nature of capital projects, the…
The cancellation of Chicago Park District Fourth of July fireworks displays due to costs is the focus of this article. The Civic Federation says the cancellation of the displays demonstrates the dire financial straits the City is in, but that the Chicago must consider how it will attract visitors to the lakefront as it creates a long-term financial plan.
