A drop in Illinois’ income tax rates—and uncertainty about the implementation of pension changes—could cause the State’s backlog of unpaid bills to grow to $9.9 billion by the end of the 2016 budget year, according to a new forecast by Governor Pat Quinn’s office. Along with the decline in income tax revenues, the three-year projection for the State’s general operating budget through FY2018…
The following posts were among the most highly read on the Institute for Illinois’ Fiscal Sustainability’s blog in 2014 and represent the most closely followed Illinois fiscal issues of the year: State pension reform and the State budget. States Face Legal Challenges Over Reduced Pension COLAs January 3, 2014 This blog reviews legal challenges to reductions in state pension COLAs in…
This editorial discusses a lawsuit filed Tuesday against changes to the City of Chicago’s Municipal and Labor pension funds that are scheduled to go into effect January 1. It cites the Civic Federation’s most recent Status of Local Pension Funding analysis, which found that without reforms the Municipal Employees Pension Fund could be insolvent within 15 years.
For anyone who wants to understand the pension crisis facing the State of Illinois, a recent report for the State’s largest pension fund would be a good place to start. The preliminary actuarial valuation report for the Teachers’ Retirement System (TRS) for the fiscal year ended on June 30, 2014 uses relatively plain language and reader-friendly charts to address a complex subject. The report’s…
This article examines the possible bond sale and credit rating implications of a November 21 ruling in Sangamon County Circuit Court against Illinois’ pension reform legislation. The pension reform case is being appealed to the Illinois Supreme Court. The Civic Federation said Illinois cannot afford to wait for the Supreme Court’s ruling and must continue to address its fiscal issues in the…
Shortly after a Sangamon County Circuit Court Judge ruled that the pension reform law passed in Illinois almost a year ago violated the State constitution, Attorney General Lisa Madigan announced she will be seeking an immediate appeal of the decision to the State Supreme Court. Judge John W. Belz issued the Circuit Court’s decision on Friday, November 21, 2014, one day after hearing oral…
This article follows the passage of Chicago’s FY2015 budget by a 46-4 City Council vote. The Civic Federation supported the budget in its November 3 analysis and said the proposal is a reasonable response to the City’s immediate financial situation. The Federation also warned that long-term financial stability cannot be achieved without further pension reform action from the Illinois General…
This editorial discusses financial improvements made by the Chicago Transit Authority in the past few years that have led to a more fiscally stable agency. It cites the Civic Federation’s FY2015 CTA Budget Analysis which supports the budget, but retains some concerns about the current pension funding plan and whether the budget relies too heavily on expected payments from the cash-strapped State…
Report applauds level of public input in planning, warns of declining pension health In a report released today, the Civic Federation supports the $187.4 million budget proposed by the Forest Preserve District of Cook County. The balanced budget holds the property tax levy relatively flat and minimizes the use of one-time resources. The Federation also commends the District for increasing the…
Proposal reflects past work to secure pensions, modernize labor practices In an analysis released today, the Civic Federation supports the Chicago Transit Authority’s (CTA) proposed FY2015 operating budget of nearly $1.4 billion. The budget represents an improved level of fiscal stability made possible by the CTA’s efforts in past years to secure its pension fund and modernize its labor…
