This article discusses a recent Chicago conference that featured expert panelists who discussed solutions to the City’s biggest challenges. As a panelist, Civic Federation President Laurence Msall gave his insight on the City of Chicago’s fiscal issues, urged Illinois officials to put an end to the States’ budget impasse and discussed the corrosive effects the impasse has had on Chicago.
This article discusses the high interest rate that the City of Chicago recently paid for $220 million in short-term funding. Civic Federation President Laurence Msall calls the interest costs an unfortunate and avoidable expense, noting that the money could have been used for City services or other important investments.
In advance of a $550 million bond sale this week, the State of Illinois announced it had negotiated new terms with the largest holder of Illinois swaps. The new lower level for termination of the swaps based on Illinois’ credit ratings dropped to Ba1 with Moody’s Investors Service and BB+ with Standard and Poor’s. As discussed here previously, under its swap agreements the State is required to maintain a bond rating above a certain level or the deal is terminated. When a swaps contract is…
This article reports on the City of Chicago’s record property tax increase and how it will affect City homeowners this year. Laurence Msall, President of the Civic federation, notes that with Chicago’s historic underfunding of pensions, Cook County taxpayers are likely to face increased property taxes for the indefinite future.
This article discusses the downgrades to the State of Illinois’ already low credit rating. Civic Federation President Laurence Msall remarks that these downgrades will result in tens of millions of dollars in unnecessary borrowing costs for taxpayers and explains the consequences of further downgrades.
The Illinois General Assembly ended its regular spring session on May 31, 2016 without passing a budget for the upcoming fiscal year. The legislature now has less than one month to complete a budget for the year that begins on July 1, and passage has become more difficult. After the end of May, a three-fifths vote of both the House and Senate—instead of a simple majority—is needed for a bill to take effect immediately. A simple majority will again be sufficient at the beginning of the 2017…
This article reports on a City of Chicago plan to create a property tax rebate to lower the tax burden to City homeowners. Laurence Msall, President of the Civic Federation, says it’s difficult to see how Chicago can afford a property tax rebate plan with its current financial issues and notes that there are more effective alternatives.
One year after passing the Illinois General Assembly, a bill that puts the City of Chicago’s Police and Fire pension funds on a 40-year plan to reach 90% funding has become law. Illinois Governor Bruce Rauner vetoed the legislation after it was sent for his consideration on March 31, 2016, but the General Assembly voted to override the veto. Senate Bill 777 (now Public Act 99-0506), reduces by $220 million the first year of pension contributions Chicago would have been required to make under a…
This segment reports on the Illinois General Assembly overriding Governor Rauner’s veto of pension reforms for the City of Chicago’s police and fire pension funds and on the short and long-term effects of the legislation. Laurence Msall, President of the Civic Federation, says the reforms will ease financial pressure for City taxpayers in the short-term and give the Mayor more flexibility going forward.
This segment discusses the long-term damage being done to the State of Illinois as the State approaches one full year without a budget in place. Civic Federation President Laurence Msall discusses the consequences of the budget impasse and says Illinois is sending the wrong message to citizens and businesses by not having a budget.
