The Civic Federation supports the Chicago Public Schools proposed $5.9 billion budget for FY2012, which is an increase of 1.5%, or $87.0 million, from the year-end estimates of FY2011. The proposed budget is a reasonable short-term plan to fund the District’s core educational mission through its difficult, deepening financial crisis. The Civic Federation is very concerned about the District’s long term fiscal health. CPS will face enormous budget shortfalls in future years, particularly with…
In its fiscal year 2012 budget proposal, the Chicago Public Schools administration provided for the first time a three-year projection of its future financial situation on page 9. The projection shows that the total CPS employer pension contribution is expected to jump from $219.3 million in FY2013 to $671.7 million in FY2014, adding over $450 million in expenditure pressure to the CPS operating budget that year. This spike is primarily the result of 2010 legislation that gave CPS a three-year…
This editorial assesses the troubles facing the State of Illinois if it does not overhaul its public pension systems. The Civic Federation estimates that every Illinois resident owes $6,031 to the pension system.
The Chicago Teachers’ Pension Fund accumulated nearly $5.4 billion in unfunded obligations over the past ten years. This was an increase of over 10,000%, from $5.1 million in FY2001 to $5.4 billion in FY2010. In three years alone, from FY2008 to FY2010, unfunded liabilities grew by $2.3 billion. Unfunded actuarial accrued liability is the dollar value of accrued liabilities not covered by the actuarial value of assets in the pension fund (see the Civic Federation’s Status of Local Pension…
This article discusses the funding issues the Cook County pension fund is facing, including a 60 percent funding status. The Civic Federation says that if a pension falls under 70 percent funded status, it may be necessary for a government to sell assets to meet its pension obligations.
Findings in a report from Cook County Treasurer Maria Pappas that show that the County owes $108 billion in accrued debt is the focus of this article. The Civic Federation says the report is a good contribution to the debate over local government debt and pension obligations.
The Civic Federation released today a comprehensive set of forty recommendations to improve the City of Chicago’s long-term fiscal condition. The new Federation report includes reforms that can be implemented now and over the next few fiscal years and cover a wide array of functions, from public works to procurement to pensions. The Civic Federation has in recent years become increasingly troubled by the condition of the City of Chicago’s finances. The Federation’s Chicago Finance initiative…
The purpose of this report is to provide the City of Chicago’s Mayor and City Council with detailed recommendations on ways to address the City’s serious financial challenges and create a government that is more efficient, less costly and more accountable. On February 14, 2011, the Civic Federation released Financial Challenges for the New Mayor which identifies the most significant fiscal issues facing the City of Chicago. Recommendations for a Financially Sustainable City of Chicago expands…
This article discusses some of the actions made by the State of Illinois General Assembly during the spring legislative session. The article cites Civic Federation data that showed debt dedicated to the State's pension system has exceeded capital debt.
An actuarial projection of the future solvency of the Chicago Park District’s pension fund has estimated that the fund will exhaust its assets in the year 2025.[1] The projection takes into account the reduced pensions for employees hired on or after January 1, 2011 pursuant to Public Act 96-0889. The Park District’s pension fund was relatively healthy just ten years ago. In FY2001 it had a funded ratio of 96.7% based on the actuarial value of assets and 89.3% based on the market value of…
