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…
This article examines a CPS bond sale that had been previously delayed. President of the Civic Federation, Laurence Msall comments that the 8.5 percent yield is due to a number of factors, one of which is the District’s poor credit rating, and warns that costs for any future borrowing will continue to be high.
2016 Civic Federation Legislative Priorities The Civic Federation's legislative priorities for 2016 include public employee pension reforms, consolidation of local government units in Illinois, expanding the income and sales tax base while controlling spending, creation of a Local Government Protection Authority, development and implementation of a capital improvement plan,…
View the Article This article discusses the continued fiscal strain faced by the City of Harvey, a south Chicago suburb, and a potential need for state intervention. Laurence Msall, President of the Civic Federation, explains the essential changes that have to be made by the city in order to move forward and also discusses the role of the State in this matter. Mentioned in the article is the…
The Civic Federation has long supported legislation aimed at improving the efficiency and effectiveness of government operations in Illinois by consolidating or abolishing redundant and/or anachronistic local governments. For example, on November 17, 2003, the Federation called on the State to abolish the Suburban Cook County Tuberculosis Sanitarium District. The District was ultimately dissolved…
This article reports on a proposal from local lawmakers that would use surplus TIF funds to close a portion of CPS’ budget deficit. Laurence Msall, President of the Civic Federation, commented on the need for a comprehensive plan to responsibly address CPS’ entire budget gap.
This article discusses the current $480 million CPS budget shortfall, impacts of the budget gap and proposed short-term solutions. President of the Civic Federation, Laurence Msall, remarked on the necessity of a long-term plan to help stabilize CPS’ finances.
A new report by Governor Bruce Rauner’s administration projects that the State of Illinois’ backlog of unpaid bills could grow to $25.0 billion in FY2019 from $4.4 billion in FY2015 based on current tax and spending policies. The three-year forecast, issued on January 6, 2016, covers FY2017 through FY2019. It also includes actual budget results for FY2015, which ended on June 30, 2015, and…
This article reports on the signs indicating that the State of Illinois may not have a budget until later this calendar year. Civic Federation President, Laurence Msall, discusses the looming pressures to put an end to the budget impasse.
This article discusses that the city of Harvey, a south suburb of Chicago, is in serious financial trouble with millions of dollars unaccounted for. President of the Civic Federation, Laurence Msall, notes that the lack of records and documentation to showing how the cities’ money was spent is troubling.
