Mayor-Elect Rahm Emanuel and the newly elected Chicago City Council face a host of major financial challenges. One of the hardest problems to solve will be the pension crisis. As a result of recent state legislation, the City now faces two distinct pension problems: two of its four funds are still expected to run out of money by the year 2030 while the other two funds are scheduled to be rescued from insolvency but at a very steep cost to the City. The City of Chicago maintains four employee…
The three largest municipal governments analyzed by the Civic Federation are the Chicago Public Schools (CPS), the City of Chicago and Cook County. All three began their FY2011 budget processes projecting large budget shortfalls: CPS projected a gap of $370 million, the City of Chicago projected a gap of $655 million and Cook County projected a gap of $487 million.[1] These budget shortfalls were primarily the result of existing structural imbalances that were exacerbated by declines in…
The Civic Federation analyzes the budgets of nine Chicago area local governments. One important indicator that the Federation utilizes to assess the financial health of these municipalities is their fund balance level. In particular, we examine the balance within the general fund that does not have any external legal restriction, called the unrestricted fund balance. Fund balance differs from net assets typically reported by business enterprises in that it includes only a subset of assets and…
The long-term lease of assets by the City of Chicago is one of the most significant financial undertakings by the City in recent years. These groundbreaking transactions have received national attention and been examined by other governments interested in new models of public private partnerships. Recognizing the importance of these actions, the Civic Federation continues to examine these complex transactions and use of the proceeds. The Civic Federation’s Financial Challenges for the New Mayor…
This report identifies the most significant financial challenges facing the City of Chicago and provides recommendations to the new Mayor of Chicago for ways to improve and stabilize the City’s finances in the short- and long-term. Those challenges include addressing the City’s significant budget deficit expected to be at least $500 million for FY2012, a growing bonded debt load, and crisis-ridden employee pensions. Click here to read the press release for this report. For more information…
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…
The Civic Federation often recommends that local governments undertake long-term financial forecasting and planning, which the Federation believes is one of the single most important financial practices for local governments to undertake. Other groups such as the Government Finance Officers Association (GFOA) and the National Association Advisory Council on State and Local Budgeting also consider long-term financial planning to be a pillar of proper financial management. A recent GFOA white…
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…
This brief provides an updated compilation of selected consumer taxes, including rates and descriptions, in effect in the City of Chicago on December 1, 2010. It includes such taxes as the sales tax, gas tax, amusement tax, lease tax, hotel tax, liquor tax, restaurant tax, soft drink tax, wheel tax and parking tax.
UPDATE: The Civic Federation commends Governor Pat Quinn for signing Senate Bill 3538, a bill reforming police and fire pensions in Illinois, on Thursday, December 30 as Public Act 096-1495. To read Governor Quinn’s press release, please click here. Click here to read an article from the Chicago Tribune about Governor Quinn’s signing of the bill. This editorial in the Sun-Times echoes the Civic Federation’s position that while the reforms in SB 3538 are a good first step, more must be…
