This segment examines the City of Chicago’s short-term borrowing to fund police and fire pensions. Civic Federation President Laurence Msall indicates that borrowing for pension payments is not an ideal situation.
This article discusses the Chicago City Council authorizing up to $200 million of bonds to help pay termination fees to exit swaps linked to its water debt. Civic Federation President Laurence Msall noted that, while this helps the city refinance its variable-rate debt, it is important to have a thorough understanding of the full cost and how it will impact taxpayers.
This article reports on payments made to Chicago's police and fire pension funds using $220 million in short-term borrowing. Laurence Msall, President of the Civic Federation, called the borrowing an unfortunate, expensive, yet forseeable development, due to the lack of contingency planning in the City’s FY2016 budget.
This article examines the costs of high pensions paid to former school district administrators in Illinois. Laurence Msall, President of the Civic Federation, notes that these are a prime example of why the State continues to need pension reform.
This article reports on a real estate investment made on behalf of five of Chicago’s public pension plans, which resulted in significant losses for those plans. Civic Federation President Laurence Msall comments on the lost investment and explains what could be done to prevent future risky investments.
This annual brief provides a compilation of selected consumer taxes, including rates and descriptions, in place in the City of Chicago as of May 1, 2016. It includes such taxes as the sales tax, amusement tax, lease tax, hotel tax, liquor tax, restaurant tax, soft drink tax, wheel tax and parking tax.
This editorial discusses the eight-month Illinois budget impasse, calling on Illinois General Assembly leaders to aid in passing a budget. The Civic Federation’s State of Illinois FY2017 Budget Roadmap is cited as a reasonable blueprint for what the State’s budget might look like, including a mix of increased revenues and spending cuts.
This article reports on the Chicago Transit Authority’s costly pensions and associated fees for investment, actuarial and legal services. Laurence Msall, President of the Civic Federation, discusses the disadvantages of the CTA’s current pension system.
On January 25, 2016, the office of the Cook County Treasurer mailed the first installment of the property tax bill to all homeowners in Cook County which is due on March 1, 2016. The bill lists all taxing districts to which property taxes are paid. The Treasurer also provides taxpayers with debt and financial information for each taxing agency on the bill. In this blog, we provide an overview of the property tax levy and billing process and an explanation of the components of the first…
Based on available market data, the State of Illinois paid approximately $40 million more for the $480 million of new bonds it sold in January than it would have before its bond ratings were downgraded at the end of last year. As previously discussed here, due to the FY2016 budget impasse, two of the three major rating agencies reduced the State of Illinois’ bond ratings in October 2015. These downgrades made Illinois the only state credit currently rated below the ‘A’ category and signals a…
