The following news items cover the release of the Institute for Illinois' Fiscal Sustainability at the Civic Federation's analysis of the State of Illinois FY2019 Recommended Operating Budget. The Federation could not support Governor Bruce Rauner’s recommended budget because it is precariously balanced and its modest surplus relies on aggressive assumptions. Additionally, the proposal does little to address Illinois’ massive backlog of bills. ----- Chicago Sun-Times: Civic…
This article discusses the state of Illinois’ unfunded pension liabilities on the three-year anniversary of the Illinois Supreme Court’s ruling that the State’s bipartisan attempt at pension reform was unconstitutional. As the article notes, the State has since suffered credit downgrades to one notch above junk status, and the unfunded liability for State pensions ballooned to more than $130 billion. Civic Federation President Laurence Msall said that compounding nature of these liabilities has…
Click here to read the full report. The Civic Federation’s Institute for Illinois’ Fiscal Sustainability is not able to support Governor Bruce Rauner’s recommended FY2019 budget because it is precariously balanced and its modest surplus relies on aggressive assumptions. Additionally, the proposal does little to address Illinois’ massive backlog of bills. While the Civic Federation is encouraged by the improved financial condition of the State, Illinois still faces severe fiscal problems,…
This article previewed a forum hosted by the Civic Federation and the Federal Reserve Bank of Chicago. The half-day conference featured former elected officials, analysists and union officials to discuss options for tackling the State of Illinois’ massive unfunded pension liabilities. The article sets the backdrop with a brief analysis of the current state of Illinois pensions and mentions a few solutions proposed by various organizations. For more information on the forum, including…
This article discusses the withholding of City of Harvey funds by the Illinois Comptroller in response to continued underfunding of Harvey's public safety pensions. Following the intercept, the City laid off nearly half of its police and fire department. The article suggests that the struggles surrounding public pensions in Harvey are mirrored across the State and are indicative of a much larger problem. Civic Federation President Laurence Msall said that the State is ultimately…
This article discusses the ruling to overturn funding reforms for the Chicago Park District’s pension system. As part of the ruling, increased employee contributions will have to be repaid with interest, and the District will have to return its property tax levy to prior levels. Civic Federation Vice President Sarah Wetmore said that, among other consequences, the decision is likely to affect the long-term sustainability of the fund and will potentially leave taxpayers on the hook for the not-…
Illinois Governor Bruce Rauner presented his annual budget address on February 14, 2018, outlining his budget proposal for the State fiscal year 2019. The 2019 fiscal year begins on July 1, 2018 and ends June 30, 2019. The Civic Federation will release a full analysis of the Governor’s proposal in the coming months. This blog will focus on two key elements of the Governor’s budget proposal that will most significantly impact local governments and the State’s higher education institutions.…
Click here to read the full report. 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 and balance the State's budget. While Illinois has ended its devastating two-year budget impasse, the enactment of a revenue and spending plan for FY2018…
Public Act 100-0465, which overhauled the State of Illinois’ school funding formula and made significant changes to how Chicago teachers’ pensions are funded, also required the State Actuary to review the actuarial assumptions and valuation of the Chicago Teachers’ Pension Fund (CTPF) as it does annually for the State’s five retirement systems. The Auditor General released the State Actuary’s analysis to the public on December 28, 2017 and the recommendations have already had an impact,…
This article discusses a proposal before the Illinois legislature’s personnel and pension committee to borrow $107 billion to put toward the $129 billion in unfunded pension liability. Civic Federation president Laurence Msall said that while it is important to be exploring every option, the Civic Federation is skeptical that the State could borrow such a large sum and successfully pay it off. Additional coverage: Chicago Tribune: Column: Proposed $107 billion bond isn't the cure…
