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…
Mayor Rahm Emanuel is exploring privatization of Midway airport with a shorter-term lease that preserves City ownership. The Civic Federation said exploring a deal makes sense considering the City’s looming financial challenges, including significant infrastructure needs.
This article discusses Mayor Rahm Emanuel’s consideration of whether to privatize Chicago’s Midway Airport and focuses on proposed safeguards to prevent the mistakes of past privatization efforts including a shorter-term lease and an ownership interest for the City. The Civic Federation has urged the City to revisit the Midway deal which is not a panacea but could be an important part of comprehensive pension reform and reinvestment in City infrastructure.
On June 30, 2011 the Civic Federation released Recommendations for a Financially Sustainable City of Chicago. The report offered a comprehensive set of forty recommendations to improve the City’s long-term fiscal condition. The reforms could be implemented over the next few fiscal years and covered a wide array of functions from pensions to public safety. Next month the City will release its proposed FY2013 budget. Despite cost saving initiatives implemented by the City over the past year, the…
On April 24, 2012, the City Council passed an ordinance establishing an Infrastructure Trust for the City of Chicago. Introduced by Mayor Rahm Emanuel, the Trust is an alternative source of funding that will be used to attract private sector funds to rebuild the City’s aging infrastructure. At a time when capital funding from the federal government and State of Illinois is scarce and the City’s debt levels are high, the Trust aims to open investment opportunities from new sources that would…
Last week, Cook County Board President Toni Preckwinkle announced two alternative service delivery initiatives: 1) managed competition for County custodial services; and 2) third-party administration of the County’s employee absence and leave management.[1] In its 2010 Cook County Modernization Report, the Civic Federation recommended that Cook County institute alternative service delivery, also known as outsourcing, for non-essential services. Historically, the County has not taken advantage…
This Chicago Sun-Times editorial discusses Mayor Rahm Emanuel’s recently-announced plan to create the Chicago Infrastructure Trust and an upcoming April 18 vote on the proposal by City Council. The Civic Federation supports alternative financing for infrastructure projects, but urges the Mayor and City Council to strengthen the plan’s provisions for oversight of the Trust and public disclosure of its activities.
This article reports that the City of Chicago’s recently announced $7.2 billion infrastructure plan will be funded in part by the Chicago Infrastructure Trust which will be financed by savings from retrofits and future user fees. The Civic Federation said the City cannot rely on State infrastructure funding during Illinois’ fiscal crisis, and is wise to identify alternate sources of funding.
Mayor Rahm Emanuel announced a $7.2 billion, three-year infrastructure plan which includes repaving half of the city’s streets, rebuilding transit and the goal of adding a fourth runway at O’Hare airport. The announcement follows the Mayor’s March 14 announcement of the Chicago Infrastructure Trust. The Civic Federation said the city has clear infrastructure needs to address, but the plan lacks details on how individual projects will be funded.
This article discusses public private partnerships that were proposed or implemented in Chicago, including possible funding for the Red Line Extension project and revisiting the proposed privatization of Midway airport. Speakers from last week’s P3 conference co-hosted by the Civic Federation and the Federal Reserve Bank of Chicago were quoted discussing various P3 projects across the country.
