On Monday the Civic Federation released its analysis of the Chicago Public Schools FY2011 proposed budget. The Federation supported the $6.5 billion spending plan because it offered a short-term solution to the District’s difficult, deepening financial crisis. This budget will allow schools to open on time and continue to provide students with access to education across Chicago. The Civic Federation, however, was very concerned with the District’s proposed budget as several components expose…
Spending Plan Exposes District to Greater Financial Risk in the Future The Civic Federation supports the FY2011 proposed Chicago Public Schools budget of $6.5 billion as an adequate plan to close a large deficit and ensure continued access to education for students across Chicago this year. However, the Federation is very concerned that the spending plan guarantees future fiscal distress by draining the CPS reserve fund and using multiple one-time revenues. The full 74-page analysis of the…
The Civic Federation supports the Chicago Public Schools proposed $6.5 billion budget for FY2011, which is a reduction of 5.9% or $402.3 million from the proposed FY2010 budget. The proposed budget offers a short-term solution to the District’s difficult, deepening financial crisis. This budget will allow schools to open on time and continue to provide students with access to education across Chicago. While acknowledging that the District was left with few options to close its budget deficit…
This article describes how Illinois' budget crisis is affecting schools, universities and social services across the state. The Civic Federation is quoted saying that the State's budget situation has been getting worse, financed by more borrowing and more unpaid bills.
This National Public Radio segment is about how some states are struggling to cope with massive budget deficits. Civic Federation President Laurence Msall says Illinois’ fiscal troubles – 30 years in the making and rooted partially in the State’s underfunded public pension system – are causing the State to delay payments to service providers and schools and its bond ratings to fall.
This article is about how state pension systems around the country are coping with the effects of the financial crisis. The Civic Federation comments on the State of Illinois’ recent pension reforms, saying that the reforms are a good first step, but do not address the State’s unfunded pension liabilities.
This editorial discusses recent efforts to overhaul the State of Illinois’ public pension systems and reduce its unfunded liabilities. It mentions a Civic Federation proposal to eliminate the income tax exemption for pension income in Illinois as a possible part of a solution to the State’s budget crisis, which is caused in part by Illinois’ underfunded pension system.
The State of Illinois has yet to determine how it will handle its required pension contributions for FY2011. However, a recent analysis by the Commission on Government Forecasting and Accountability (COGFA) estimates that skipping the $3.5 billion payment entirely would cost the State $12.5 billion in additional contributions. COGFA’s actuaries forecasted how much the State would be required to contribute to its five retirement systems between FY2012 and FY2045 with and without a pension…
This editorial opposes the policy decisions that have led to the dire state of Illinois’ pension system. The Civic Federation says the threat that Illinois’ pensions will run out of money is very real and that Illinois’ police and firefighter pensions are among the worst-funded and most vulnerable in the State.
This article examines Illinois’ pension-funding crisis and the legislative reforms that attempt to stabilize the State pension systems. The Civic Federation points out that the reforms do not do enough to address immediate funding problems and to prevent bankruptcy, the State should increase employee contribution requirements.
