This editorial discusses recent efforts to overhaul the State of Illinois’ public pension systems and reduce its unfunded liabilities. It mentions a Civic Federation proposal to eliminate the income tax exemption for pension income in Illinois as a possible part of a solution to the State’s budget crisis, which is caused in part by Illinois’ underfunded pension system.
This editorial about Illinois’ perilous fiscal condition features Civic Federation commentary about the State of Illinois’ fiscal crisis and mentions recommendations made by the Federation in its “Fiscal Rehabilitation Plan for the State of Illinois” report.
This editorial about the options Illinois has to balance its budget focuses on recommendations made by the Civic Federation in its “Fiscal Rehabilitation Plan for the State of Illinois.”
The State of Illinois has yet to determine how it will handle its required pension contributions for FY2011. However, a recent analysis by the Commission on Government Forecasting and Accountability (COGFA) estimates that skipping the $3.5 billion payment entirely would cost the State $12.5 billion in additional contributions. COGFA’s actuaries forecasted how much the State would be required to contribute to its five retirement systems between FY2012 and FY2045 with and without a pension…
On June 15, 2010 the Chicago Board of Education approved measures to cope with the school district’s estimated $600 million deficit for the coming school year. The measures include authorizing the establishment of an $800 million line of credit to cover delayed state payments and authorizing CEO Ron Huberman to increase class sizes to 35 students if necessary. Could Tax Increment Financing (TIF) district revenues held by the City of Chicago be used to reduce the deficit and prevent…
Civic Federation Position Statement on School Vouchers June 17, 2010 The Civic Federation supports the use of vouchers to provide students in low-performing public schools with the opportunity to attend private schools. We view charter schools and a voucher system as important initiatives for public education because they provide school choice for parents and students and bring innovation to the state’s education system. The Civic Federation believes that a voucher system would be an affordable…
The State of Illinois is not the only cash-strapped state that shied away from major tax increases to improve its financial condition in FY2011. According to Stateline.org, most states avoided raising significant revenue and instead patched together FY2011 budgets by finding a few new items to tax, curtailing spending and relying on federal stimulus dollars. So far only Kansas and Arizona have raised their sales tax rates this year, according to Stateline, a daily online publication of the Pew…
This article discusses how the Chicago Public School system plans to balance its FY2011 budget with a combination of class size increases and borrowing. The Civic Federation questioned why CPS would opt to increase class size without trying to negotiate with the teachers union over $125 million in scheduled FY2011 pay increases.
This editorial opposes the policy decisions that have led to the dire state of Illinois’ pension system. The Civic Federation says the threat that Illinois’ pensions will run out of money is very real and that Illinois’ police and firefighter pensions are among the worst-funded and most vulnerable in the State.
The Civic Federation is quoted in this article that details the challenges facing Illinois government agencies in their efforts to reduce expenditures to help the State balance its budget.
