Over the next few weeks, many Chicago-area local governments will be releasing their proposed budgets for fiscal year 2014. In preparation for the upcoming budget releases, this blog will recap the Civic Federation’s significant observations from our analyses of local governments’ proposed FY2013 budgets. The governments studied by the Civic Federation include: the City Colleges of Chicago and Chicago Public Schools (CPS) which have already released their FY2014 budgets, City of Chicago, Cook…
This week the Civic Federation released its annual Status of Local Pension Funding report. The purpose of this report is to compile and analyze basic financial data of the retirement funds for the City of Chicago (four separate funds – Municipal, Laborers’, Police and Fire), Chicago Park District, Chicago Public Schools (Teachers’ Fund), Cook County, Forest Preserve District of Cook County, Metropolitan Water Reclamation District (MWRD) and Chicago Transit Authority (CTA). [1] The report…
Chicago-area public employee pension funding levels dropped significantly in FY2011, with unfunded liabilities for the ten funds analyzed rising to $32.0 billion from $27.4 billion in FY2010, an increase of 16.7% according to the most recent audited data available. For all pension funds supported by the taxes of Chicago residents, including statewide funds, the total unfunded liabilities reached $16,914 per Chicago resident in FY2011. On average, the ten funds analyzed had an actuarial funding…
This blog examines some of the long-term obligations of the City of Chicago and its overlapping local governments using a per capita indicator based on bonded debt and unfunded pension liabilities. Rating agencies and other financial analysts commonly monitor overlapping direct debt trends as an affordability indicator when governments consider debt issuance. The indicator reflects the premise that the entire population of a jurisdiction benefits from and bears the cost of infrastructure…
A look back at the Civic Federation’s blog this year provides a preview of upcoming fiscal challenges for local governments in 2013. Pension Funding The most urgent fiscal challenge for Illinois governments continues to be the pension funding crisis. The combined funded ratio for the four City of Chicago pension funds fell to 43.3% in FY2011. The funded status of the Cook County Pension Fund also fell in FY2011 to 57.5%. The County’s fund was over 90% funded as recently as FY2000. The…
Last week the Civic Federation marked the end of the FY2013 budget season with a blog that summarized the proposed budgets for the nine local governments the Federation monitors. These governments include: the City Colleges of Chicago, Chicago Public Schools (CPS), DuPage County, City of Chicago, Cook County, Chicago Transit Authority (CTA), Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago (MWRD) and Chicago Park District. This blog focuses on…
Last week marked the end of the budget season for the nine local governments monitored by the Civic Federation. These governments include: the City Colleges of Chicago, Chicago Public Schools (CPS), DuPage County, City of Chicago, Cook County, Chicago Transit Authority (CTA), Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago (MWRD) and Chicago Park District. This blog provides a summary the proposed FY2013 budgets and how appropriations have…
The Civic Federation strongly supports the Chicago Transit Authority’s proposed FY2013 budget of $1.4 billion as a structurally balanced plan based on shared sacrifice by union members, riders and CTA management. The budget implements several prudent and sustainable steps including a targeted fare increase. The new proposed fare structure maintains base fares but increases rates for fare passes, generating much needed recurring revenue for the CTA while aligning pass fares closer to the…
The Institute for Illinois’ Fiscal Sustainability released a new report today that provides an overview of the condition and funding of Illinois infrastructure. As discussed in a previous post, one of the report’s functions is to compile needs assessments from a number of public agencies to provide an aggregate evaluation of the state of Illinois’ infrastructure, from drinking water to roads to rails. In addition, the report highlights gaps in available data, examines how capital is financed in…
This report provides an overview of the condition and funding of Illinois infrastructure based on a compilation of various needs assessments from public agencies that manage infrastructure in the State including the Illinois State Toll Highway Authority, the Regional Transportation Authority, the Metropolitan Pier and Exposition Authority and the Illinois Sports Facilities Authority. The Civic Federation found that State and local governments could need to invest more than $300 billion over…
