This segment discusses whether Chicago is on the same financial path as Detroit and whether bankruptcy is an option for the City. Laurence Msall, President of the Civic Federation, says that Chicago has a lot of great assets and strong investment in the City, which Detroit did not have before it entered bankruptcy.
This article discusses the high interest rate that the Chicago Public Schools will have to pay on $387 million in loans that the District is using as a short-term fix for its financial crisis. Civic Federation President Laurence Msall remarks that the extraordinary interest rate that the District will pay on the loans is a waste of money that could otherwise go to the benefit of students.
As the State of Illinois approaches two full years without enacting a comprehensive state budget, local governments have been forced to make difficult financial decisions to continue operating during these uncertain times. City Colleges of Chicago has received only a quarter of its funding from the Illinois Community College Board during the last two fiscal years, along with reduced MAP Grant funding for low income students. As a result, it has resorted to making cuts and efficiencies as well…
This segment discusses how the State of Illinois could lose the Powerball and Mega Millions lottery games if the State does not reach a budget agreement by the end of this month. Civic Federation President Laurence Msall makes the point that this development is yet another blow to Illinois' fiscal reputation and notes that the loss of revenue from those games will be money that is not available for the State’s education funds.
The Illinois General Assembly ended its regular session on May 31, 2017 without passing a budget, heightening concerns that the State might move into a third year without a complete financial plan. Standard & Poor’s and Moody’s Investors Service immediately lowered Illinois’ credit rating by one notch to just above junk status. S&P cited “the severe deterioration of Illinois’ fiscal condition, a byproduct of its stalemated budget negotiations” and Moody’s pointed to the “prolonged…
The following news pieces cover a recent press conference held by the Civic Federation and several social service, civic and advocacy organizations. During the press conference, Civic Federation President Laurence Msall and leaders from the other organizations urged the Illinois General Assembly and Governor Bruce Rauner to end the budget impasse and to pass and sign a comprehensive, balanced FY2018 budget. For more information on the organizations involved and on the coalition's message,…
This article examines the City of Chicago’s proposed short-term borrowing plan to prevent the Chicago Public Schools from ending the school year early. Civic Federation President Laurence Msall remarks that the District could pay a premium for the short-term fix and notes that there needs to be a long-term plan from the State of Illinois and City of Chicago on how to handle the District’s financial issues.
The following news items cover the release of the Institute for Illinois’ Fiscal Sustainability at the Civic Federation's analysis of Governor Rauner’s FY2018 recommended budget. As mentioned in the analysis, the Civic Federation cannot support the FY2018 recommended budget. Further, the Federation calls on the Governor and General Assembly to end the unacceptable stalemate and to reject any attempt to pass standalone K-12 spending, payment of non-emergency workers or any piecemeal approach…
Civic Federation urges governor and legislators to pass comprehensive, balanced budget (CHICAGO) – In a report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability announced it cannot support Illinois Governor Bruce Rauner’s recommended budget for FY2018 because it has an operating deficit of at least $4.6 billion and does not address Illinois’ massive backlog of bills. The Institute’s full 86-page report is available here. For nearly two years, Illinois has…
Click here to read the full report. The Civic Federation’s Institute for Illinois’ Fiscal Sustainability not able to support Governor Rauner’s recommended FY2018 budget because it has an operating deficit of at least $4.6 billion, presents an insufficiently detailed plan for closing the gap and does not address Illinois’ massive backlog of bills. In addition to analyzing the recommended budget, the report examines the costs of the ongoing impasse and the irreparable harm caused to our…
