This report analyzes basic financial data on ten major local government employee pension funds in Cook County. It is intended to provide lawmakers, pension trustees, pension fund members and taxpayers with the information they need to make informed decisions regarding public employee retirement benefits. The report reviews fiscal year 2009 actuarial valuation reports and financial statements of the retirement plans for the City of Chicago, Chicago Park District, Chicago Public Schools, Cook…
In 2010 the Civic Federation blog provided comprehensive information about government and fiscal issues across Illinois for the public, government officials and media. In a range of posts on topics from the effect Public Act 96-0889 would have on local government pension systems to explaining nuances of the Cook County property tax system, the Federation blog offered rapid-response commentary on current events and original research that accompanied the Federation’s publications. Issues…
The Civic Federation's legislative priorities for 2011 include public pension reform, requiring state government to develop and implement a capital improvement plan, the dissolving of the Illinois International Port District, creating a new governing board for the Cook County Forest Preserve District, reinstating means-tested transit discounts for seniors, requiring large counties to hold budget hearings and produce timely annual audits, enacting tax increment financing reporting reform,…
The Civic Federation often voices concerns when governments use one-time or nonrecurring revenue sources for ongoing expenses. There are a number of reasons this can be problematic. By definition such revenue sources will not be available in the future so if the government utilizes nonrecurring revenues for operations, they are ensuring future fiscal challenges. The practice allows governments to run structural deficits and postpone making inevitable difficult choices. There are…
On Monday the Civic Federation released its analysis of the Chicago Public Schools FY2011 proposed budget. The Federation supported the $6.5 billion spending plan because it offered a short-term solution to the District’s difficult, deepening financial crisis. This budget will allow schools to open on time and continue to provide students with access to education across Chicago. The Civic Federation, however, was very concerned with the District’s proposed budget as several components expose…
The Civic Federation supports the Chicago Public Schools proposed $6.5 billion budget for FY2011, which is a reduction of 5.9% or $402.3 million from the proposed FY2010 budget. The proposed budget offers a short-term solution to the District’s difficult, deepening financial crisis. This budget will allow schools to open on time and continue to provide students with access to education across Chicago. While acknowledging that the District was left with few options to close its budget deficit…
On June 15, 2010 the Chicago Board of Education approved measures to cope with the school district’s estimated $600 million deficit for the coming school year. The measures include authorizing the establishment of an $800 million line of credit to cover delayed state payments and authorizing CEO Ron Huberman to increase class sizes to 35 students if necessary. Could Tax Increment Financing (TIF) district revenues held by the City of Chicago be used to reduce the deficit and prevent…
Civic Federation Position Statement on School Vouchers June 17, 2010 The Civic Federation supports the use of vouchers to provide students in low-performing public schools with the opportunity to attend private schools. We view charter schools and a voucher system as important initiatives for public education because they provide school choice for parents and students and bring innovation to the state’s education system. The Civic Federation believes that a voucher system would be an affordable…
The Chicago School Finance Authority (SFA) is scheduled to be officially dissolved on June 1, 2010. The SFA is a separate unit of government created in 1980 by the Illinois General Assembly and charged with “promoting the financial integrity” of the Chicago Public Schools (CPS) (see the School Finance Authority statute, 105 ILCS 5/34A). In the wake of CPS’s 1979/1980 financial crisis, the Authority was directed to exercise financial control over and furnish financial assistance to the Chicago…
All ten Chicago-area local government pension funds analyzed annually by the Civic Federation had negative investment returns in fiscal year 2008 for a total investment loss of $7.1 billion.[1] The average FY2008 rate of return for the eight funds with a January 1 to December 31 fiscal year was -25.3%, down from +8.1% the previous year. Rates of return ranged from -14.8% to -33.3% in FY2008, with returns for the Chicago Fire fund being the lowest. The Park District fund and the Chicago Teachers…
