On October 31, 2012, the Civic Federation released its analysis of the City of Chicago’s FY2013 proposed budget and President Laurence Msall presented the Federation’s position to City Council at its public hearing. The Civic Federation supports Mayor Emanuel’s proposed FY2013 budget of nearly $6.5 billion because it is a reasonable continuation of the City’s efforts to reduce its structural deficit through management reforms that focus on expenditure reduction and operational efficiency. With…
The Civic Federation supports the City of Chicago’s FY2013 proposed $6.5 billion budget which reduces the City’s reliance on one-time revenue sources while restructuring City government through better managing personnel expenditures. The proposal also holds the property tax level nearly flat and does not include any new tax or fee increases. Actions taken to close a $298 million budget gap…
Last week, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability published a blog on the State of Illinois’ Personal Property Replacement Tax (PPRT) and why the State will be distributing $182 million less to local governments in FY2013. This blog builds on that one to show the impact of the drop in PPRT revenues on the City of Chicago’s FY2013 budget. The PPRT is a revenue source for local governments that was created by the General Assembly in 1979 to replace a tax on the…
On June 30, 2011 the Civic Federation released Recommendations for a Financially Sustainable City of Chicago. The report offered a comprehensive set of forty recommendations to improve the City’s long-term fiscal condition. The reforms could be implemented over the next few fiscal years and covered a wide array of functions from pensions to public safety. Next month the City will release its proposed FY2013 budget. Despite cost saving initiatives implemented by the City over the past year, the…
Since 1988, the City of Chicago and its four pension funds have been party to the settlement of City of Chicago v. Korshak regarding how much the City, the funds and annuitants pay for healthcare. The settlement agreement expires June 30, 2013. The four pension funds are the Firemen’s Annuity and Benefit Fund; the Chicago Policemen’s Annuity and Benefit Fund; the Municipal Employees, Officers and Official Annuity and Benefit Fund and the Laborers’ and Retirement Board Employees’ Annuity and…
(Click here to read part one of this two-part look at the City's Annual Financial Analysis.) Last week, the City of Chicago released its Annual Financial Analysis for 2012. According to an executive order issued by Mayor Emanuel on May 20, 2011, the Office of Budget and Management is mandated to produce a financial analysis of the City budget by July 31 of each year. The analysis includes: • A financial condition analysis that covers the previous ten years including a discussion of…
This week the City of Chicago released its Annual Financial Analysis for 2012. According to an executive order issued by Mayor Emanuel on May 20, 2011, the Office of Budget and Management is mandated to produce a financial analysis of the City budget by July 31st of each year. The analysis includes: • A financial condition analysis that covers the previous ten years including a discussion of key factors impacting the performance of the City’s revenue streams; • A three-year baseline…
This week the Civic Federation released its annual Status of Local Pension Funding report. This report reviews fiscal year 2010 actuarial valuation reports and financial statements of the retirement funds.[1] The purpose of this report is to compile and analyze basic financial data on ten major local government employee pension funds in the Chicago area.[2] It is intended to provide policymakers, pension trustees, pension fund members and taxpayers with information they need to make informed…
This blog continues the Civic Federation’s examination of indicators that can be used to assess the financial health of local governments. The Federation is working on a project comparing the City of Chicago with a group of thirteen large U.S. cities that have also been the subject of analysis by the Pew Charitable Trusts’ Philadelphia Research Initiative. Previous entries examined the City of Chicago’s fund balance ratio, continuing services ratio, operating deficit ratio and debt service…
On Tuesday, May 8, 2012, Mayor Rahm Emanuel offered a plan to reform pensions for employees of the City of Chicago, Chicago Public Schools and Chicago Park District during a hearing of the Illinois House of Representatives Personnel and Pensions Committee. The Civic Federation is encouraged by Mayor Emanuel’s pension reform initiative and looks forward to receiving more details on how each of the provisions of the plan will be phased in, their financial impact in terms of cost savings and what…
