This article reports on a pension funding plan announced by the City of Chicago April 1 that would bring the Municipal and Laborers pension funds to a 90% funded level by 2054. Without reforms, both funds face insolvency within 9-17 years. The Civic Federation said the City’s plan is reasonable, but aiming for a 100% funded level would be ideal.
Chicago Mayor Rahm Emanuel unveiled a proposal to stabilize the City’s underfunded Municipal and Laborers pension funds on March 31. The 40-year plan includes successive property tax increases to provide additional pension funding coupled with employee benefit reductions. His proposal does not address the severe funding crisis in the Police and Fire Pension Funds. Legislation based on the Mayor’s…
The Federal Reserve Bank of Chicago and the Board of Directors of the Civic Federation are pleased to announce a conference on how municipalities in Illinois can avoid or resolve fiscal stress. The half-day conference will take place on Wednesday, April 23rd in the Conference Center at the Federal Reserve Bank of Chicago, 230 S. LaSalle Street. The event will start at 8:00 a.m. and conclude with…
This article discusses Illinois’ March 11 sale of taxable revenue-backed bonds in the context of the State’s temporary income tax increase scheduled to rollback in January 2015. It cites the Civic Federation’s recommendation to gradually reduce income tax rates by 20% after extending the rates for one year in 2015 to avoid a sharp revenue cliff.
This editorial highlights the recommendations in the Civic Federation’s State of Illinois FY2015 Budget Roadmap and calls the Federation’s plan a thoughtful, comprehensive approach to the State Budget that offers a solid starting point for discussion. Recommendations include building a rainy day fund that totals at least 5% of General Funds revenues.
This editorial examines the Civic Federation’s State of Illinois FY2015 Budget Roadmap and calls the Federation’s plan a “reasonable and balanced approach” to addressing Illinois’ perpetual fiscal crisis. The Federation’s recommendations would allow the State to eliminate its $5.4 billion bill backlog in five years.
This article focuses on the Civic Federation’s recommendation for Illinois to include federally taxable amounts of retirement income in its income tax base. Of the 41 states that impose an income tax, Illinois is one of only three that exempt all pension income. The recommendation was part of the State of Illinois FY2015 Budget Roadmap.
Last month, an independent Blue Ribbon Panel convened by the Society of Actuaries released its report with recommendations to improve the financial health of public pension plans. Laurence Msall, president of the Civic Federation, was a member of the panel, along with actuaries, economists, former plan trustees and government and financial experts. Mr. Msall was also interviewed as part of a…
In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability proposes a comprehensive plan for achieving long-term fiscal sustainability for the State of Illinois. The five-year plan would fully pay down the State’s $5.4 billion backlog of unpaid bills while gradually reducing income tax rates by 20%, broadening the tax base and building a reserve fund as…
Prior to the release of the Governor’s annual budget recommendation, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation releases an analysis of the State of Illinois’ fiscal condition. The report reviews Governor Quinn’s three-year budget projection and proposes a comprehensive five-year plan for achieving long-term fiscal sustainability for the State of Illinois. The Civic…
