This article previewed a forum hosted by the Civic Federation and the Federal Reserve Bank of Chicago. The half-day conference featured former elected officials, analysists and union officials to discuss options for tackling the State of Illinois’ massive unfunded pension liabilities. The article sets the backdrop with a brief analysis of the current state of Illinois pensions and…
This article discusses the withholding of City of Harvey funds by the Illinois Comptroller in response to continued underfunding of Harvey's public safety pensions. Following the intercept, the City laid off nearly half of its police and fire department. The article suggests that the struggles surrounding public pensions in Harvey are mirrored across the State and are indicative of a…
This article discusses the ruling to overturn funding reforms for the Chicago Park District’s pension system. As part of the ruling, increased employee contributions will have to be repaid with interest, and the District will have to return its property tax levy to prior levels. Civic Federation Vice President Sarah Wetmore said that, among other consequences, the decision is likely to affect the…
Illinois Governor Bruce Rauner presented his annual budget address on February 14, 2018, outlining his budget proposal for the State fiscal year 2019. The 2019 fiscal year begins on July 1, 2018 and ends June 30, 2019. The Civic Federation will release a full analysis of the Governor’s proposal in the coming months. This blog will focus on two key elements of the Governor’s budget proposal that…
Click here to read the full report. 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. This report presents the Civic Federation’s multi-year plan to stabilize Illinois’ finances and balance the State's budget. While Illinois has…
Public Act 100-0465, which overhauled the State of Illinois’ school funding formula and made significant changes to how Chicago teachers’ pensions are funded, also required the State Actuary to review the actuarial assumptions and valuation of the Chicago Teachers’ Pension Fund (CTPF) as it does annually for the State’s five retirement systems. The Auditor General released the State Actuary’s…
This article discusses a proposal before the Illinois legislature’s personnel and pension committee to borrow $107 billion to put toward the $129 billion in unfunded pension liability. Civic Federation president Laurence Msall said that while it is important to be exploring every option, the Civic Federation is skeptical that the State could borrow such a large sum and successfully pay it off.…
After stabilizing due to legislative changes, Illinois’ contributions to its severely underfunded retirement systems are expected to resume their climb in the upcoming budget year. Proposed State contributions to the five pension funds rise by $539.9 million to $8.5 billion in fiscal year 2019, which begins on July 1, 2018. That represents an increase of 6.8% from $7.9 billion in FY2018.…
Following Mayor Rahm Emanuel’s FY2018 budget address, Civic Federation President Laurence Msall spoke with a pool of reporters on the City of Chicago’s finances. He said the Mayor’s budget is a reasonable plan that can move the City forward but warned that Chicago still has long-term financial challenges that must be addressed. ----- Chicago Sun-Times: Emanuel unveils 2018 budget; Chicago…
After several iterations and much disagreement, the State of Illinois now has a new statewide school funding formula. The Illinois General Assembly approved the new formula as Senate Bill 1947, House Floor Amendment 5 on August 29, with the Illinois House passing the bill Monday, August 28 and the Senate concurring the next day. The Governor signed the bill into law as Public Act 100-0465 on…
