This article discusses the downgrades to the State of Illinois’ already low credit rating. Civic Federation President Laurence Msall remarks that these downgrades will result in tens of millions of dollars in unnecessary borrowing costs for taxpayers and explains the consequences of further downgrades.
The Illinois General Assembly ended its regular spring session on May 31, 2016 without passing a budget for the upcoming fiscal year. The legislature now has less than one month to complete a budget for the year that begins on July 1, and passage has become more difficult. After the end of May, a three-fifths vote of both the House and Senate—instead of a simple majority—is needed for a bill to take effect immediately. A simple majority will again be sufficient at the beginning of the 2017…
This article reports on a City of Chicago plan to create a property tax rebate to lower the tax burden to City homeowners. Laurence Msall, President of the Civic Federation, says it’s difficult to see how Chicago can afford a property tax rebate plan with its current financial issues and notes that there are more effective alternatives.
This article explains how the three-percent compounded annual increase on the State of Illinois’ public employee pensions has contributed significantly to the State’s pension problems. Civic Federation President Laurence Msall remarks that Illinois is the only state that uses the three-percent compounded increase and notes that it is responsible for a third of the State’s unfunded pension liabilities.
One year after passing the Illinois General Assembly, a bill that puts the City of Chicago’s Police and Fire pension funds on a 40-year plan to reach 90% funding has become law. Illinois Governor Bruce Rauner vetoed the legislation after it was sent for his consideration on March 31, 2016, but the General Assembly voted to override the veto. Senate Bill 777 (now Public Act 99-0506), reduces by $220 million the first year of pension contributions Chicago would have been required to make under a…
This segment reports on the Illinois General Assembly overriding Governor Rauner’s veto of pension reforms for the City of Chicago’s police and fire pension funds and on the short and long-term effects of the legislation. Laurence Msall, President of the Civic Federation, says the reforms will ease financial pressure for City taxpayers in the short-term and give the Mayor more flexibility going forward.
This segment discusses the long-term damage being done to the State of Illinois as the State approaches one full year without a budget in place. Civic Federation President Laurence Msall discusses the consequences of the budget impasse and says Illinois is sending the wrong message to citizens and businesses by not having a budget.
This article reports on the City of Chicago’s recent agreement with the Laborers Pension Fund to save the fund from insolvency through a combination of union concessions and revenue from telephone tax increases. Laurence Msall, President of the Civic Federation, says that the new reforms could be the start of improvements for the City’s pension funds.
With the current year’s budget still incomplete, the State of Illinois is now facing the prospect of starting another year without a financial plan. Due to a political dispute between Illinois’ Republican Governor and Democratic legislators who control the General Assembly, the State does not have a comprehensive budget for fiscal year 2016, which ends on June 30. Despite recent efforts by lawmakers, there are no clear signs of progress on a budget for FY2017, which begins on July 1. Since…
This segment discusses the State of Illinois’ almost year-long budget impasse and how the expiration of the 2011 temporary income tax hike in 2015 has affected the State’s finances. Civic Federation President Laurence Msall remarks that Illinois never had a plan for the expiration of the temporary income tax or how the State would handle the huge decrease in revenues.
