Click here to read the full report. Click here to read the press release for this analysis. Click here to see a diagram of CPS revenues and expenses. SUMMARY The Civic Federation supports the Chicago Public Schools (CPS) proposed budget for FY2020 because it demonstrates continued financial stability in the third year of Evidence-Based Funding from the State of Illinois. However, the Civic Federation continues to be concerned about the District’s long-term financial sustainability. The…
This year is the third year that Chicago Public Schools (CPS) will receive funding from the State of Illinois through the statewide Evidence-Based Funding formula that was signed into State law in August 2017. The CPS 2020 fiscal year runs from July 1, 2019 through June 30, 2020. The Evidence-Based Funding (EBF) formula is more equitable than the prior General State Aid formula. It calculates the funding adequacy of school districts based on available resources and district-wide needs rather…
The newly appointed Chicago Public Schools Board of Education has made several changes to the meeting structure at the monthly board meetings and, for the first time, livestreamed the board meeting held on July 24, 2019. This was the second board meeting for the seven new board members appointed by Mayor Lori Lightfoot. The new board has expressed its commitment to making Board of Education meetings more open and transparent. Board President Miguel del Valle announced at his first board…
The following blog post discusses how the City of Chicago has used surplus revenue in its tax increment financing (TIF) districts since 2013. TIF is a powerful economic development tool for the City of Chicago, particularly at a time when capital and development funding from the State of Illinois and federal government has been scarce. One out of every four properties in the City is in a TIF district and in 2017 the City of Chicago collected over $660 million in TIF revenue, nearly one-third…
Last week, the Civic Federation wrote about the Chicago City Council’s recent approval of a resolution to begin livestreaming committee meetings in September 2019. The Civic Federation continues to recommend that the Chicago Public Schools Board of Education follow suit on livestreaming their meetings. As the largest school district in Illinois, Chicago Public Schools should be a leader in the openness and transparency of its board meetings. With enrollment of approximately 361,000 students,…
In a series of blog posts last year, the Civic Federation examined the Illinois State Actuary’s first analysis of the Chicago Teachers’ Pension Fund (CTPF) actuarial assumptions and the impact changes to the actuarial assumptions recommended by the State Actuary had on the CTPF’s funded status. This blog post provides an update to those posts for decisions made during CTPF’s fiscal year 2018. In the first State Actuary report on CTPF, it recommended that the fund reduce its expected rate of…
2019 Civic Federation Legislative Priorities The Civic Federation's legislative priorities for 2019 include public employee pension reforms, consolidation of local government units in Illinois, enacting policies to rationalize the property tax system, creation of a Local Government Protection Authority, requiring the State of Illinois to build a rainy day fund, development and implementation of a capital improvement plan and improved…
Click here to read the full report. The Civic Federation supports Chicago Public Schools’ proposed FY2019 budget of $7.6 billion with reservations. Due to considerable recurring revenue sources, including increased State funding and a property tax levy dedicated to pension funding, the District’s financial position has significantly stabilized compared to recent years. However, as detailed in the report, the Federation has concerns about the reliability of future State funding, the proposed…
*Note: This blog post was updated on April 13, 2018 with more recent information on the Chicago Public Schools’ short-term borrowing and cash flow position. Chicago Public Schools (CPS) is heading into the next annual budget cycle for the 2019 fiscal year that begins on July 1, 2018. In a letter from CEO Janice Jackson to principals, CPS announced that individual school budgets will be delivered to principals in early April, much earlier than recent years. Last year, principals received their…
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 analysis to the public on December 28, 2017 and the recommendations have already had an impact,…
