This article analyzes the connection between pension debt and major tax increases among selected U.S. states and municipalities. Civic Federation President Laurence Msall notes that the percentage of state source revenue going to Illinois pensions and related debt is far in excess of well-run states and says that it will be difficult for Illinois to stabilize its finances without additional revenue.
This article discusses the Civic Federation’s call for a full actuarial analysis of the City of Chicago’s plan to save the City’s Municipal Employees Pension Fund and questions whether it may be enough. Civic Federation President Laurence Msall describes the utility tax plan as a reasonable option to help prop up the fund, but also explains that the Federation will not be convinced until it sees the full analysis.
This article reports on the State of Illinois’ worsening pension debt due to poor investment returns. Laurence Msall, President of the Civic Federation, comments that there is no easy way to stabilize Illinois’ pension systems and notes that during a time when returns are difficult for its public pensions funds, the State increasingly needs more contributions just to not lose ground from its financial crisis.
Recent decisions by two of the largest State of Illinois retirement systems are expected to result in significant increases to statutorily required pension contributions in the upcoming budget year. This blog post discusses the decisions and their potential impact on the State budget. Changes in Actuarial Assumptions The Boards of Trustees of the Teachers’ Retirement System (TRS) and the State Employees’ Retirement System (SERS) recently voted to revise assumptions that affect the estimated…
In 2012 the Governmental Accounting Standards Board (GASB) issued new accounting and financial reporting standards for public pension plans and for governments, Statements 67 and 68. According to GASB, the new standards were intended to “improve the way state and local governments report their pension liabilities and expenses, resulting in a more faithful representation of the full impact of these obligations.”[1] Among other disclosures, pension funds and governments are now required to…
The Chicago Board of Education approved a reinstated dedicated pension levy as part of the Chicago Public Schools (CPS) FY2017 budget on August 24, 2016. The levy will allow the District to bring in $250.0 million in new revenue in FY2017. This additional property tax revenue will be used to fund the Chicago Teachers’ Pension Fund. Since CPS is subject to the Property Tax Extension Limitation Law (PTELL, also known as “tax caps”), additional property tax revenue for pensions had to be approved…
This article reports on the amount in tax increases that the City of Chicago will need to stabilize the City’s major government pension plans. Laurence Msall, President of the Civic Federation, says the tax hikes are reasonable and better than no action but also notes that it remains to be seen whether they will be enough.
This article reports on the City of Chicago’s potential plan to save the Municipal Employees Pension fund through raising utility taxes. Civic Federation President Laurence Msall remarks that there are very few, if any, sources of revenue that could generate the amount of money needed to fund the City’s largest pension fund at an actuarially determined level.
This article discusses a plan to provide $20 million in property tax rebates to City of Chicago homeowners. Laurence Msall, President of the Civic Federation, notes that the program is likely to have a very modest impact to Chicago taxpayers.
After a yearlong stalemate, the State of Illinois finally saw a crack in its ongoing budget impasse on the last day of the fiscal year. The General Assembly rushed approval of bills authorizing a full year of preschool through high school education funding, including additional assistance for the Chicago Public Schools, along with a partial spending plan for other government services to cover some FY2016 and FY2017 costs. The stopgap budget bills were passed and signed into law…
