This article discusses Chicago Public School’s ongoing financial and pension issues. Laurence Msall, President of the Civic Federation, attributes the school district’s financial difficulties in part to the absence of a balanced State budget and the inequitable funding of Chicago Public School’s pensions.
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.
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.
This article explains how the three-percent compounded annual increase on the State of Illinois’ public employee pensions has contributed significantly to the State’s pension problems. Civic Federation President Laurence Msall remarks that Illinois is the only state that uses the three-percent compounded increase and notes that it is responsible for a third of the State’s unfunded pension liabilities.
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 article reports on the City of Chicago’s recent agreement with the Laborers Pension Fund to save the fund from insolvency through a combination of union concessions and revenue from telephone tax increases. Laurence Msall, President of the Civic Federation, says that the new reforms could be the start of improvements for the City’s pension funds.
The Chicago Public Schools faces a potentially devastating financial crisis. The elements of this crisis include: An FY2016 budget that was not balanced as it depended on the vague hope that the State of Illinois will provide $480 million for pension relief, A forthcoming FY2017 budget that may have a gap of $1 billion or more, An ongoing structural deficit due to the District’s pension funding crisis, increases in long-term liabilities, decreases in general state aid, employee…
This article explains that the City of Chicago has yet to provide alternative reforms for two of its pension funds after an Illinois Supreme Court ruling overturned the City’s previous reform plan. Civic Federation President Laurence Msall says the Illinois Supreme Court leaves open the possibility of future benefit changes but has not provided firm direction on how the Illinois General Assembly or City of Chicago could accomplish them.
