The Government Finance Officers Association (GFOA) recently published a report entitled Should We Rethink Reserves? A Multimillion Dollar Question recommending that governments use risk analysis techniques to optimize the use of their reserves beyond adhering to traditional reserve standards. This approach can allow governments to tailor their reserve needs to their particular circumstances rather than following a “one size fits all” policy. The considerations in the report are based on…
Fund balance is a term used to describe the net assets of a governmental fund and serves as a measure of budgetary reserves.[1] In FY2021, the last year for which audited financial information is available, Cook County’s total unrestricted general fund balance was $869.1 million. This was a $276.0 million, or 46.5%, increase from the prior fiscal year. It represented 53.6% of general fund operating expenditures of $1.6 billion. Cook County’s General Fund consists of three accounts: Corporate,…
This blog post examines the Chicago Public Schools’ contributions to the Chicago Teachers’ Pension Fund in the FY2023 budget and the funding status of the Pension Fund based on financial health indicators. Additional descriptive information about teachers’ pension benefits and history can be found in past budget analyses.[1] Members of the Chicago Teachers’ Pension Fund Certified CPS teachers are enrolled in the Public School Teachers’ Pension and Retirement Fund of Chicago (known as the…
The Civic Federation recently released its analysis of the Chicago Public Schools proposed FY2023 budget. The Federation opposed the budget because the District has not provided sufficient justification for raising its property tax to the maximum amount allowed under the Property Tax Extension Limitation Law (PTELL) at a time when taxpayers already face serious economic strains and when CPS has alternative options available. Despite opposition to this aspect of the budget proposal, the…
(CHICAGO) In a report released today, the Civic Federation announced support for Cook County’s proposed FY2019 budget. The $5.9 billion budget proposal is structurally balanced without raising new taxes and continues the practice of making supplemental pension payments. The full report is available here. “Overall, this budget is a prudent plan for the coming year—but it fails to set its sights much further,” said Civic Federation President Laurence Msall. “While there are many positive aspects…
Click here to read the full report. The Civic Federation supports Cook County’s proposed FY2019 budget of $5.9 billion because it is structurally balanced without raising new taxes and continues the practice of making supplemental pension payments. The Federation is encouraged by the County’s strong level of fund balance reserves and its commitment to performance-based budgeting and mid-year preliminary forecast hearings. The Federation further applauds the County’s continued…
The City of Chicago released its 2017 Comprehensive Annual Financial Report (CAFR) earlier this summer. This blog will examine the City’s Corporate Fund (i.e. General Fund) fund balance as a percent of general operating expenditures based on audited data from the City’s most recent CAFR. This ratio serves as a measure of whether a government is maintaining adequate levels of fund balance to mitigate current and future risks and ensure stable tax rates.[1] The City considers its budget…
*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…
This article reports on a real estate investment made on behalf of five of Chicago’s public pension plans, which resulted in significant losses for those plans. Civic Federation President Laurence Msall comments on the lost investment and explains what could be done to prevent future risky investments.
Short-term or current liabilities are financial obligations that must be satisfied within one year. They can include short-term debt, accounts payable, accrued payroll and other current liabilities. This blog post presents 12-year trends for 1) total short-term liabilities in the Governmental Funds and 2) short-term liabilities as a percentage of operating revenues for the three largest local governments the Civic Federation regularly monitors and evaluates: the City of Chicago, Cook County…
