This article discusses a potential factor in the City of Chicago’s work with its unions and the Illinois General Assembly to achieve sustainable pension reforms: the pending expiration of a ten-year settlement agreement requiring the City of Chicago to share health care costs with retirees. In its FY2013 City of Chicago Budget Analysis the Civic Federation recommended the City create an independent retiree health care trust fund similar to the model adopted by the Chicago Transit Authority.
This article discusses a ten-year settlement agreement set to expire on June 30, 2013 that requires the City of Chicago to share health care costs with retirees. The Civic Federation recommends that Mayor Emanuel and the City County carefully consider creating an independent trust fund, similar to the model adopted by the Chicago Transit Authority, to provide retiree health care benefits upon expiration of the settlement.
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…
The State of Illinois budget for fiscal year 2013 underfunds the expected cost of State group health insurance by at least $550 million, paving the way for a significant increase in unpaid bills unless more spending is authorized later this year. Governor Pat Quinn signed the $33.7 billion budget on June 30, 2012, one day before the start of the current fiscal year. The Governor had recommended a General Funds budget for FY2013 of $33.8 billion based on a somewhat higher revenue projection.…
Faced with the threat of a significant budget gap in FY2013, the Illinois General Assembly has approved legislation that would reduce the State’s bill for retiree health insurance by shifting more of the costs to retirees. Senate Bill 1313 passed the Senate on May 10, 2012 by a vote of 31 to 20. One day before, on May 9, the legislation passed the House by a vote of 74 to 43. The bill eliminates provisions of State law under which approximately 90% of the more than 80,000 retirees covered by…
On May 7, 2012, the Civic Federation sent this letter to Senator Gary Forby and the members of the Illinois General Assembly. Click here to read the Civic Federation's Position Statement on SB 3564. Update: On May 9, 2012, the Illinois Senate narrowly rejected Senate Bill 3564. The vote was 29 to 23, with one member voting present. Passage requires a majority vote of the 59 Senate members. Dear Senator Forby: The Civic Federation opposes SB 3564, as amended, which would amend the State…
Update: On May 9, 2012, the Illinois Senate narrowly rejected Senate Bill 3564. The vote was 29 to 23, with one member voting present. Passage requires a majority vote of the 59 Senate members. On May 7, 2012, the Civic Federation sent this letter to Senator Gary Forby and the members of the Illinois General Assembly. The Civic Federation opposes SB 3564, as amended, which would revise the State Facilities Closure Act and make it more difficult for the Governor to close State facilities.…
This article discusses the negative economic ripple effect caused by pension funding crises in a growing number of states. It points to Illinois as an example and cites projections from the Civic Federation’s State of Illinois FY2013 Budget Roadmap on the State’s persistent budget deficit.
The Civic Federation supports Governor Pat Quinn’s $57.4 billion FY2013 recommended operating budget, because it acknowledges the depth of the State’s financial problems and would put Illinois finances on the road to recovery with major structural reforms to the State’s Medicaid program and pension systems. The Governor’s proposed FY2013 budget makes several important steps toward Illinois’ fiscal recovery. The proposal does not rely on borrowing, a departure from the State’s pattern of…
