Holds Fares Flat, but Could be Complicated by State Budget Impasse In an analysis released today, the Civic Federation announced it supports the Chicago Transit Authority’s (CTA) proposed FY2016 operating budget of $1.47 billion. The budget represents an effective effort to actively manage costs and improve service levels. The full 52-page analysis is available here. “The CTA is continuing to benefit from reforms made in its past four budget cycles,” said Laurence Msall, president of the…
The Civic Federation supports the Chicago Transit Authority's (CTA) FY2016 operating budget of nearly $1.47 billion. The budget represents a continued effort to actively manage costs and improve service levels. The CTA is continuing to benefit from reforms made in its past four budget cycles. This budget restores some express bus service that was cut in 2010 due to budget constraints, enhances bus service in the central business district and invests in technologies that improve the transit…
In this interview on the City of Chicago’s Proposed FY2016 Budget with Mayor Rahm Emanuel, the Mayor discusses the Civic Federation’s analysis of the budget. The Civic Federation supported the budget and necessary property tax increase as a long overdue action to address the City’s public safety pension funding crisis.
This segment asks whether Illinois can run out of money while the State’s budget impasse continues. Civic Federation President Laurence Msall explained that the State is still receiving revenue, but that revenue can only be spent if there are existing budgetary appropriations or other spending authority. It cites a recent Civic Federation blog post on State revenue.
This article discusses the amusement tax changes presented as part of Cook County’s FY2016 Proposed Budget and the lack of support the amusement tax is seeing. It cites the Civic Federation’s analysis of the budget proposal, which could not support the budget due to the one percentage point sales tax increase. A Civic Federation blog post went into detail on the amusement tax.
This article reviews the Civic Federation’s analysis of Cook County’s FY2016 Proposed Budget. The Federation could not support the budget because the introduction and approval of a one percentage point increase in the County’s sales tax in order to increase pension funding happened outside of the budget process, and there are legal uncertainties regarding the increased pension fund contribution.
UPDATE: On Monday, November 9, 2015, Cook County Board President Preckwinkle called a special meeting of the Board of Commissioners to address the Hotel Accommodations Tax. On Friday November 6, 2015, the Civic Federation discussed a Hotel Tax based on net receipts; however, the ordinance introduced to the Board indicates that the 1.0% tax will be on gross receipts which will change the effective tax rates discussed previously and are shown in the table below. Because four levels of government…
One Percentage Point Sales Tax Increase Unreasonable Given Alternatives In a report released today, the Civic Federation announced it could not support Cook County’s proposed FY2016 budget of $4.5 billion because it is based on a one percentage point increase in the County’s sales tax that will make the City of Chicago an outlier compared to other major urban centers with a composite rate of 10.25%. Most of the sales tax revenue collected in FY2016 will be dedicated to an increased…
The Civic Federation cannot support Cook County’s proposed FY2016 budget of $4.5 billion because it is based on a one percentage point increase in the County’s sales tax approved on July 15, 2015 that will make the City of Chicago an outlier compared to other major urban centers with a composite rate of 10.25%. While the Federation supports the County’s efforts to increase pension funding, the magnitude of the sales tax increase is not reasonable given the other available revenue and…
Two of the three major rating agencies have cut the State of Illinois’ bond ratings due to its ongoing budget crisis and worsening financial condition. These downgrades make Illinois the only state credit currently rated below the ‘A’ category and signal a weakened capacity for the government to meet its financial obligations. Both downgrades come on the heels of the announcement by the State Comptroller that due to year-end spending pressures and lower revenues, Illinois would be delaying…
