State's pension costs to consume nearly 25% of State-source revenues in FY2014 (CHICAGO) – In a new report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability supports Governor Quinn’s proposed budget for FY2014, but warns the proposal is only a stopgap that further demonstrates the urgent need for comprehensive pension reform. The $62.4 billion proposal balances revenues and expenditures without borrowing and makes progress toward reducing the State’s backlog…
This article examines the accumulation of Illinois’ backlog of unpaid bills in the past decade, from nearly $1.2 billion in FY2002 to $9.0 billion in FY2012 to its current level of $5.6 billion reported by the State Comptroller on April 29, 2013. The Civic Federation said comprehensive pension reform is a critical first step to stabilizing the State’s finances.
This article discusses Chicago Public Schools’ proposed $162 million capital budget for FY2014. The Civic Federation is concerned that the District is expanding its borrowing without a clear plan for addressing its projected deficit of $1 billion in FY2014.
This blog reviews the 2012 4th Quarter STAR (Set Targets Achieve Results) report for Cook County’s performance management program. The blog compares FY2012 targeted expenditures and FY2012 actual costs as reported by participating County departments. In its 2010 Cook County Modernization Report, the Civic Federation recommended that performance measures be incorporated into the budgeting and management process. In January 2011 Cook County Board President Toni Preckwinkle introduced the…
An important first step in preparing a government budget is the preparation and publication of revenue estimates for the upcoming fiscal year. The estimates provide the basis for the spending decisions that are subsequently incorporated into the budget. Under Illinois law, the Governor begins the budget process by proposing a budget based on a revenue estimate for the coming fiscal year and the General Assembly then establishes its own estimate of available funds. For the past three fiscal…
This article discusses the $500 million Wrigley Field renovation proposal which will be financed by the Cubs franchise without the use of municipal bonds. The Civic Federation said Mayor Emanuel’s decision to withhold public money shows he’s focusing on the strains of the City’s pension costs and recognizes the City can’t afford to commit funds to sports teams.
This article discusses a Morgan Stanley Wealth Management poll result that 93 percent of high net worth investors in the Chicago area are worried about the state’s financial well-being despite general optimism about the national and global economies. The Civic Federation said these concerns are confirmed by Illinois’ severely underfunded pensions, backlog of unpaid bills and credit rating that is the worst of all 50 states.
UPDATE: At its April 24, 2013 meeting, the Chicago Board of Education approved the District’s amended FY2013 capital budget. Original blog published on April 17, 2013 On April 6th Chicago Public Schools (CPS) released its plan for an amended FY2013 capital budget. The original FY2013 Capital Plan, released in May 2012, totaled $109.7 million. The proposed supplemental capital budget for FY2013 will add $363.7 million, resulting in a total FY2013 Amended Capital Plan of $473.3 million. This…
The Civic Federation joined with the Federal Reserve Bank of Chicago on April 4, 2013 to co-host a conference on economic development strategies during difficult fiscal times. Experts and practitioners from California, Michigan and the Chicago area led discussions of the opportunities and challenges states and local governments face in making decisions on how best to grow their economies while still balancing budgets. Attendees to the sold out conference included civic and business leaders,…
Faced with rising pension costs and modest revenue growth, Governor Pat Quinn has recommended a reduction in State of Illinois funding for local governments and statewide public transportation. In his FY2014 budget, the Governor proposed capping those distributions at FY2012 levels. Savings to the State are estimated at $143 million, according to State bond documents. The savings estimate is based on the difference between the proposed FY2014 payment and the projected payment under current law…
