Decisions by two of the largest State of Illinois pension funds to reduce their expected rates of return on investment have garnered headlines, but they were not the only funds to change their assumptions recently. On May 11, 2016, the Retirement Board for the Firemen’s Annuity and Benefit Fund of Chicago voted to reduce the expected rate of return on investment for the fund to 7.5% from 8.0…
Recent decisions by two of the largest State of Illinois retirement systems are expected to result in significant increases to statutorily required pension contributions in the upcoming budget year. This blog post discusses the decisions and their potential impact on the State budget. Changes in Actuarial Assumptions The Boards of Trustees of the Teachers’ Retirement System (TRS) and the State…
The Chicago Board of Education approved a reinstated dedicated pension levy as part of the Chicago Public Schools (CPS) FY2017 budget on August 24, 2016. The levy will allow the District to bring in $250.0 million in new revenue in FY2017. This additional property tax revenue will be used to fund the Chicago Teachers’ Pension Fund. Since CPS is subject to the Property Tax Extension Limitation…
The following news pieces cover the Civic Federation’s recent analysis of Chicago Public School’s proposed FY2017 budget. As mentioned in the analysis, the Federation cannot support the District’s FY2017 budget because it effectively remains out-of-balance by relying on uncertain funding and one-time measures in order to close a $1.1 billion operating deficit. ----- Crain's Chicago Business:…
District Should Detail Transparent Backup Plan In a report released today, the Civic Federation announced it cannot support the Chicago Public Schools proposed FY2017 operating budget of $5.46 billion. The budget effectively remains out-of-balance by relying on uncertain funding and one-time measures in order to close a $1.1 billion operating deficit. The Civic Federation urges CPS to develop a…
The Civic Federation cannot support the Chicago Public Schools proposed $5.46 billion budget because it effectively remains out-of-balance by relying on uncertain funding and one-time measures in order to close a $1.1 billion operating deficit. The Civic Federation urges CPS to develop a public and transparent contingency plan for members of the Board of Education to approve in the event relied-…
This segment explores the history of Illinois’ Budget Stabilization Fund, more commonly known as a “rainy day fund.” Host Tony Sarabia and President of the Civic Federation Laurence Msall discuss the consequences for the state and for taxpayers of regularly draining the fund for cash flow problems, leaving the fund inadequate to address potential unforeseen crises or future economic downturns.
This article discusses the repeated depletion of the State of Illinois’ rainy day fund, due in FY2017 to the absence of a comprehensive, balanced budget. Civic Federation President Laurence Msall remarks that, in effect, Illinois continues to act as if the State will never experience another economic downturn.
The City of Chicago recently released its mid-year Annual Financial Analysis for 2016, which provides financial estimates for the City’s fiscal year ending on December 31, 2016 and a forecast for the next fiscal year. The analysis shows improvements toward reducing the budget deficit and eliminating “scoop and toss” borrowing practices. This is the first year that the City has released the…
The Civic Federation recently released its analysis of the City Colleges of Chicago FY2017 Tentative Annual Operating Budget. This blog examines City Colleges of Chicago tuition rate changes for in-district, out-of-district and out-of-state tuition rates per semester hour over a ten year period. This blog also compares City Colleges of Chicago in-district tuition rates with the in-district rates…
