2020 Civic Federation Legislative Priorities The Civic Federation's legislative priorities for 2020 include public employee pension reforms, consolidation of local government units in Illinois, enacting policies to rationalize the property tax system, creation of a Local Government Protection Authority, requiring the State of Illinois to build a rainy day fund, development and implementation of a capital improvement plan and…
Since the beginning of FY2009, the Cook County Pension Fund has seen an increase in its liabilities not covered by assets, or the unfunded liability, of nearly $3.8 billion. The increase is attributable to a number of factors and has fluctuated over the years. The following table presents the contributing factors that have increased or decreased the fund’s unfunded liability since the beginning of FY2009. The largest contributor to the nearly $3.8 billion growth in unfunded liabilities…
A new pension buyout plan designed to save hundreds of millions of dollars for the State of Illinois in the fiscal year that just ended actually generated relatively minor savings in FY2019 and does not appear likely to meet the annual cost-reduction target over the next few years. The shortfall has occurred despite robust participation by members of the State Employees’ Retirement System (SERS), the pension fund that was supposed to account for most of the savings. The problem stems from the…
Click here to read the full report. Click here to read the press release for this analysis. SUMMARY Amid one of the longest economic expansions in U.S. history, the State of Illinois still faces daunting fiscal challenges. The list includes chronic operating deficits, a multi-billion dollar backlog of unpaid bills, crushing public pension costs and five consecutive years of population loss. Illinois has the lowest credit rating of any state and is ranked as one of the worst…
Following an unexpected influx of income tax revenues in April 2019, Illinois Governor J.B. Pritzker has dropped a controversial proposal to delay funding for the State’s financially troubled pension funds. The pension holiday, proposed in the Governor’s budget for the fiscal year that starts on July 1, 2019, was intended to save about $878 million through a seven-year extension of the statutory deadline for achieving 90% funding. The pension savings were a key part of Governor Pritzker’s plan…
Click here to read the full report. Click here to read the press release for this report. AT A GLANCE The Civic Federation released this report in advance of the April 2, 2019 Chicago municipal election for consideration by the public and candidates for Mayor, Treasurer, Aldermanic Office and the City Clerk. The report details the City of Chicago’s major financial challenges, as well as options and recommendations to stabilize the City’s financial position. SUMMARY In April 2019…
In a series of blog posts last year, the Civic Federation examined the Illinois State Actuary’s first analysis of the Chicago Teachers’ Pension Fund (CTPF) actuarial assumptions and the impact changes to the actuarial assumptions recommended by the State Actuary had on the CTPF’s funded status. This blog post provides an update to those posts for decisions made during CTPF’s fiscal year 2018. In the first State Actuary report on CTPF, it recommended that the fund reduce its expected rate of…
Click here to read the full report. Click here to read the press release for this report. AT A GLANCE Prior to the release of the Governor’s annual budget recommendation, the Institute for Illinois’ Fiscal Sustainability at the Civic Federation releases an analysis of the State of Illinois’ fiscal condition. This report presents the Civic Federation’s multi-year plan to stabilize Illinois’ finances. EXECUTIVE SUMMARY The State of Illinois FY2020 Roadmap describes the State of…
A new study by a state commission in Pennsylvania compares the investment expenses paid by large public pension funds. Although such comparisons are difficult because of vast reporting discrepancies, the study still raises important questions about investment expenses of these funds—including some in Illinois. The Pennsylvania commission, established in 2017 by statute, was charged with reviewing the operations of two state pension funds and making recommendations to reduce investment costs…
The following is an infographic-style primer intended to concisely and accessibly present the most important information and data on the Illinois pension crisis. The series explores the history and magnitude of the State's pension challenges and offers options for addressing the problem. View this primer as a printable PDF. Sources and related links: COGFA Special Pension Briefing November 2018, State of Illinois General…
