Before adjourning for a second time this session on May 28, 2010, the Illinois General Assembly sent a series of budget bills for FY2011 to the Governor. Both houses passed $26.0 billion in appropriations, emergency budget powers for the Governor, several one-time revenue sources and some borrowing for operations. The State’s budget for FY2011, which begins in less than 30 days on July 1, 2010, is still unbalanced. It relies heavily on debt, deficit spending and extending the State’s lag time…
This article discusses a City of Chicago pension panel’s recommendation that the four City pension funds undergo major reforms, including later retirements and larger City and employee pension contributions for new hires. The Civic Federation says the recommendations do not go far enough and that current employees should also be included in the reforms.
Despite the General Assembly’s goal to pass a budget for FY2011 and adjourn by May 7, 2010, legislators headed home after the session ended with no budget and no clear path out of the State’s current woeful financial situation. Although multiple appropriations bills, revenue bills, pension borrowing plans and emergency budget bills were deliberated and voted on in both houses of the legislature, none was sent to the Governor. Now with roughly six weeks left in the fiscal year it is still…
There are over 3200 public pension board trustees governing 657 separate public pension funds in the State of Illinois according to data from the Illinois Department of Insurance.[1] These trustees have fiduciary responsibility for $135.7 billion dollars in assets, and paid out $10.5 billion in benefits to 386,975 beneficiaries in 2008.[2] These pension funds can have as few as five or as many as thirteen trustees. Of the 657 pension funds, 644 are police or firefighter funds (352 police…
The City of Chicago released the final report of the Commission to Strengthen Chicago’s Pension Funds today, April 30, 2010. Chicago Mayor Richard M. Daley announced the creation of the Commission on January 11, 2008. The intent of the Commission was to propose ways to improve the financial strength of the City’s four pension funds. The Civic Federation served as a member of the group. The Civic Federation commends the City of Chicago for releasing report, which includes critical information…
The Civic Federation opposes Governor Pat Quinn’s $52 billion FY2011 recommended operating budget for the State of Illinois because it is unbalanced and does too little to address the State’s fiscal crisis. The Governor’s recommended budget borrows billions to pay for operations while continuing to ignore the massive backlog of unpaid bills, which will make the State’s financial condition worse. Although the Civic Federation is encouraged that Governor Quinn has signed significant pension…
The Civic Federation supports the Illinois General Assembly’s first steps toward comprehensive public pension reform in Illinois and urges state leaders to implement further reforms. On Wednesday, March 24, 2010, the Illinois General Assembly took the first important steps toward comprehensive public pension reform in Illinois by approving Senate Bill 1946 as amended by the Illinois House. The bill now awaits approval by Governor Quinn. While the reforms contained in the legislation do not…
The Civic Federation supports the Illinois General Assembly’s first steps toward comprehensive public pension reform in Illinois and urges state leaders to implement further reforms. On Wednesday, March 24, 2010, the Illinois General Assembly took the first important steps toward comprehensive public pension reform in Illinois by approving Senate Bill 1946 as amended by the Illinois House. The bill now awaits approval by Governor Quinn. While the reforms contained in the legislation do not…
All ten Chicago-area local government pension funds analyzed annually by the Civic Federation had negative investment returns in fiscal year 2008 for a total investment loss of $7.1 billion.[1] The average FY2008 rate of return for the eight funds with a January 1 to December 31 fiscal year was -25.3%, down from +8.1% the previous year. Rates of return ranged from -14.8% to -33.3% in FY2008, with returns for the Chicago Fire fund being the lowest. The Park District fund and the Chicago Teachers…
The total unfunded liabilities of the ten major Chicago-area public pension funds reached $18.5 billion in fiscal year 2008. That is an increase of over $15.1 billion dollars in ten years, up from $3.4 billion in fiscal year 1999. To put $18.5 billion in perspective, it is $5,821 of unfunded pension liabilities per Chicago resident. The debt grows to $10,037 per person when you add the State pension funds. The unfunded liability for the four City of Chicago pension funds alone is $…
