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The Illinois Medicaid Program: An Issue Brief

Abstract: The Civic Federation's Institute for Illinois' Fiscal Sustainability wrote this issue brief about the Illinois Medicaid Program. The report provides an overview of Medicaid in Illinois and highlights areas where the program's cost efficiency might be improved. The report recommends that the General Assembly and Governor form a joint legislative and gubernatorial commission to launch a review of the future financing of the Illinois Medicaid program, especially with regard to the expiration of federal stimulus funds in 2011.
Full PDF Document: civicfed_295.pdf (149 KB)
Publication Date: May 22, 2009
Category: Research Reports

State of Illinois FY2010 Recommended Operating and Capital Budgets

Abstract: The Civic Federation's Institute for Illinois' Fiscal Sustainability produced this analysis of the proposed FY2010 Illinois operating and capital budgets. The Civic Federation does not support the proposed operating budget because it raises taxes without fixing the state's structural deficit. If significant pension and employee healthcare reforms are implemented, the Federation could support a smaller income tax increase targeted at reducing the state's existing obligations in the areas of Medicaid and pensions. The Civic Federation opposes the $26 billion proposed Illinois Jobs Now! capital plan because it is not tied to a comprehensive planning process and is unaffordable now and in the future. The analysis commends Governor Quinn for proposing bold changes to the state's pension systems.
Full PDF Document: civicfed_294.pdf (535 KB)
Publication Date: May 11, 2009
Category: Budget Analyses

Status of Local Pension Funding Fiscal Year 2007: An Evaluation of Ten Local Government Employee Pension Funds in Cook County

Abstract: This report provides a trend analysis of indicators that measure the financial health and performance of ten major local government pension funds from 1998 to 2007, the most recent year for which audited data are available. It finds that unfunded liabilities for the ten funds climbed even during years of good investment returns, increasing from $4.8 to $17.1 billion in ten years, and makes numerous recommendations on legislative actions that should be taken to slow the downward spiral of pension underfunding.
Full PDF Document: civicfed_293.pdf (551 KB)
Publication Date: March 30, 2009
Category: Research Reports

A Fiscal Roadmap for Creating a Sustainable State Budget: Actionable Recommendations for Governor Pat Quinn and the Illinois General Assembly

Abstract: The Civic Federation's Institute for Illinois' Fiscal Sustainability produced this guide for addressing the state's FY2010 budget. The roadmap provides an in-depth outline of best practices for a budget that would confront the state's growing fiscal crisis, including the areas of state spending, revenue, pensions, employee and retiree health insurance, Medicaid, capital, and asset sales.
Full PDF Document: civicfed_292.pdf (300 KB)
Publication Date: March 9, 2009
Category: Research Reports

Civic Federation 2009 Legislative Priorities

Abstract: The Civic Federation's legislative priorities for 2009 include public pension reform, the dissolving of the Illinois International Port District, creating a new governing board for the Cook County Forest Preserve District, requiring all counties to hold budget hearings, requiring large counties to produce timely annual audits, enacting tax increment financing reporting reform, requiring school financial management accountability reforms, and authorizing state and local government entities to establish trust funds for the advance funding of retiree health care.
Full PDF Document: civicfed_291.pdf (122 KB)
Publication Date: February 11, 2009
Category: Position Statements

The 2009 Federal Economic Stimulus Package and Proposed Federal Infrastructure Spending in Illinois

Abstract: This issue brief and position statement reviews President-Elect Obama and Congressional leaders' proposed federal stimulus package. The Civic Federation supports a federal infrastructure plan that aims to create jobs as a countercyclical economic measure to combat recessionary trends. We are concerned, however, that the State of Illinois is ill-equipped to participate in the process of securing the federal infrastructure funds.
Full PDF Document: civicfed_288.pdf (119 KB)
Publication Date: January 16, 2009
Category: Position Statements

Chicago Park District FY2009 Operating Budget Recommendations: Analysis and Recommendations

Abstract: The Civic Federation supports the Chicago Park District's FY2009 budget because it is a fiscally responsible plan and demonstrates a commendable emphasis on cost containment, avoiding a property tax increase for the fifth consecutive year. This has been accomplished utilizing reasonable increases in user fees and charges, personnel reductions, departmental consolidations and a three day District shutdown.
Full PDF Document: civicfed_284.pdf (272 KB)
Publication Date: November 5, 2008
Category: Budget Analyses

Civic Federation In the News

Note: for full coverage, please see the source’s website. Some sites may require login and/or fees to access articles.

Chicago Turns to Workers to Close Deficit

Source: Wall Street Journal
Date: June 24, 2009
Page: Section 1, Page A4
This article describes the City of Chicago’s plans to close an operating budget deficit of about $300 million with worker furloughs and funds received as part of the privatization of the city’s assets. The Civic Federation is quoted staying that while cuts to the city’s payroll are desperately needed, spending funds received from privatizations on operating costs is inefficient.

Taxpayers beware: Game is on this week

Source: Chicago Sun-Times
Date: June 23, 2009
Page: Section 1, Page 18
In this column, Steve Huntley explores the deadlock in Springfield over the State of Illinois budget. He cites the Civic Federation’s analysis of Governor Quinn’s proposed budget, which advocated state employee pension and health care benefit reforms and budget cuts before any kind of tax increase.

Robert Degnan stands to collect two government pensions

Source: Chicago Sun-Times
Date: June 17, 2009
Page: Section 1, Page 3
In this article about the double pension benefits earned by CTA manager and Fleet Management commissioner Robert Degnan upon retiring, the Civic Federation points out the need for serious reform of the city’s pension systems.

Study says DuPage should keep convalescent center

Source: Daily Herald
Date: June 10, 2009
Page: Online edition
This article about the future of the DuPage County’s convalescent center cites the Civic Federation’s analysis of the County’s FY2009 budget, in which the Federation recommends that the County consider privatizing the center.

Quinn’s wrong targets

Source: Chicago Tribune
Date: June 4, 2009
Page: Section 1, Page 28
In an editorial about Governor Quinn’s proposed cuts to the Illinois budget, the Chicago Tribune strongly commended the Civic Federation’s analysis of the state’s FY2010 budget, saying it has “produced solid recommendations for saving billions of dollars in state spending.”

I-Team Report: Big Spenders

Source: ABC 7 News
Date: June 3, 2009
Page: Online edition
In this news segment the Civic Federation criticized the Illinois General Assembly’s capital plan, which is not tied to a capital improvement plan and includes funds to refurbish government buildings in Springfield. The Federation pointed out that with the legislature still at a budget impasse, the revenues raised to support the capital spending could be better used to balance the state’s operating budget.

City’s Parking Meter Deal Gets More Criticism

Source: Chicago Public Radio
Date: June 3, 2009
Page: Online edition
Civic Federation President Laurence Msall was interviewed for this news segment about Chicago’s poorly-implemented deal to privatize the city’s parking meters. Mr. Msall points out that the privatization itself was not the problem, but rather the management and oversight of the deal.

Cost overruns, missing records mar Kennedy-King construction

Source: Chi-Town Daily News
Date: June 2, 2009
Page: Online edition
With cost overruns of over $110 million, missing documents, and a lack of financial information, the Civic Federation expresses concern about the Public Building Commission and City Colleges of Chicago’s construction of the new Kennedy-King college campus in this article.

Chicago Water Reclamation District Has Its Eye on BABs

Source: The Bond Buyer
Date: June 1, 2009
Page: Online edition
This article about the Metropolitan Water Reclamation District’s plans to tap Build America Bonds to finance tunnel and reservoir construction quotes Civic Federation research into the MWRD’s unfunded pension obligations and projected future losses to the pension system.

Illinois Senate OKs Income Tax Increase

Source: CBS 2 Chicago
Date: May 31, 2009
Page: Online edition
In this news segment about a proposed increase to the Illinois income tax, the Civic Federation expresses concerns that too much of the focus in Springfield is on raising taxes, rather than fixing the state’s current fiscal problems. The Federation notes that it could support a small increase in the income tax, provided that state pensions are properly funded.

No tax hike before reform

Source: Chicago Tribune
Date: May 29, 2009
Page: Section 1, Page 28
In this editorial, the Tribune urges state officials to cut spending before they consider increasing taxes. The editorial cites Civic Federation recommendations for budget cuts.

Connected to Chicago Interview

Source: WLS 890 AM
Date: May 24, 2009
Page: Online edition
Civic Federation President Laurence Msall is interviewed by WLS Political Editor Bill Cameron in this "Connected to Chicago Interview" on the status of the State of Illinois budget.

Madigan v. Madigan raises Springfield eyebrows

Source: Crain's Chicago Business
Date: May 22, 2009
Page: Online edition
In this blog post, Greg Hinz notes The Civic Federation's release of an issue brief about Medicaid spending in Illinois that emphasizes the need for the state to prepare for the end of federal stimulus funds in 2011 that could leave the state with a $1.3 billion budget hole.

Veto stands, but can Stroger?

Source: Chicago Tribune
Date: May 20, 2009
Page: Section 1, Page 1
In this article about a failed vote by the Cook County Board of Commissioners to overturn a veto that blocked the repeal of the County's one percentage point sales tax hike, The Civic Federation is quoted questioning how much of the increased revenue from the tax was actually being spent in the County Health Bureau.

Tell them, Governor

Source: Chicago Tribune
Date: May 19, 2009
Page: Section 1, Page 22
This editorial encourages Illinois Governor Pat Quinn to push harder for his ethics reform agenda and praises The Civic Federation's analysis of Governor Quinn's proposed budget and recommendations for reform.

This ain't your old budget tiff

Source: Chicago Tribune
Date: May 19, 2009
Page: Section 1, Page 7
This article examines the politics surrounding legislative negotiations to enact a State of Illinois FY2010 budget. In it The Civic Federation warns of the consequences of not dealing with the state's massive pension and other debt.

DEAL IN FOCUS: Illinois Readies $1B of GO Certificates

Source: The Bond Buyer
Date: May 13, 2009
Page: Online edition
This article reviews an Illinois plan to take bids on $1 billion in general obligation certificates to help with cash-flow pressures in the face of the state’s $12 billion deficit and details The Civic Federation and IIFS’ analysis of Governor Quinn’s FY2010 budget proposal. The article discusses how the Federation is unable to support the budget as proposed due to insufficient spending cuts and an income tax increase that does not do enough to reduce the state’s existing liabilities.

Quinn Budget ripped for spending excesses

Source: Chicago Sun-Times
Date: May 12, 2009
Page: 14
The Civic Federation’s critiques of Governor Quinn’s proposed budget are the main focus of this article. The article notes that while the Federation’s analysis says Quinn has made positive strides in dealing with the state’s $11.6 billion deficit, more spending cuts are needed to help achieve budget solvency.

Quinn Budget Puts Policy Goals Above Fiscal Crisis Fixes: Civic Federation

Source: Associated Press
Date: May 12, 2009
Page: Online edition
This article discusses the Federation’s opposition to Governor Quinn’s proposed Illinois state budget and was selected for syndication by such news outlets as The Huffington Post, The Chicago Tribune, and WAND TV.

Cook assessment relief no guarantee of tax cut

Source: Chicago Tribune
Date: May 12, 2009
Page: Section 1, Page 9
This article about Cook County Assessor James Houlihan’s plans to provide assessment relief to suburban homeowners quotes Civic Federation President Laurence Msall, who says that reductions in property assessments are no guarantee of reduced property taxes. Improving the efficiency of local governments and reducing levies are the best ways to provide reduced property taxes to homeowners.

Break for Suburban Homes?

Source: Chicago Sun-Times
Date: May 12, 2009
Page: 1
In this article about Cook County Assessor James Houlihan’s plans to lower assessments, The Civic Federation is quoted saying that because different taxing bodies such as local governments and schools may have raised their tax levies, not all taxpayers will see lower taxes as a result of lower assessments.

Laurence Msall of the Civic Federation joins Don Wade & Roma

Source: WLS 890 AM
Date: May 12, 2009
Page: Online edition
Don Wade and Roma interview Civic Federation President Laurence Msall about the Federation’s analysis of Governor Quinn’s proposed FY2010 Illinois state budget in this podcast available at wlsam.com. Mr. Msall discusses various aspects of the budget analysis in detail, focusing on issues in the state’s public pension and post-retirement benefits systems, explaining how the state has underfunded and mismanaged those systems, and the steps that the state needs to take to repair them.

First, Fix Springfield

Source: Chicago Tribune
Date: May 11, 2009
Page: Section 1, Page 20
The Civic Federation’s FY2010 State of Illinois budget analysis is the main focus of this editorial, which discusses several points from the report, including the Federation’s recommendation to couple a reduced income tax increase with deeper spending cuts and financial reforms.

Watchdog group “rejects” proposed Illinois budget

Source: Reuters
Date: May 11, 2009
Page: Online edition
This Reuters article about the Federation’s issues with Illinois’ proposed budget for FY2010 discusses the budget’s insufficient cuts in spending and plan to underfund pensions through a partial pension “holiday.” The article was selected for distribution in news outlets nationwide, including MSNBC, USA Today, and Portfolio.com.

Civic Federation: Quinn should reduce tax plan, cut budget more

Source: The State Journal Register
Date: May 11, 2009
Page: Online edition
This article discusses The Civic Federation’s analysis of the FY2010 State of Illinois budget proposal, including recommendations for Governor Patrick Quinn and the General Assembly on how to resolve the state’s budget crisis.

Quinn has own recipe to cook pension books

Source: Crain’s Chicago Business
Date: May 11, 2009
Page: Online edition
In his blog, Greg Hinz discusses the funding status of Illinois’ public pensions and quotes a warning about Illinois’ fiscal solvency made by The Civic Federation in its analysis of the Governor Quinn’s proposed budget for FY2010.

Even if pension is cut, teachers get good deal

Source: Chicago Sun-Times
Date: May 7, 2009
Page: Section 1, Page 6
Columnist Mark Brown discusses Illinois teacher pensions and how their generous benefits and underfunded status present a current and future problem for the state's taxpayers. The Civic Federation notes that the state’s $11 billion deficit is caused in part by state employee pensions and that the state should implement a two-tiered benefits system that would limit future pension growth.

City’s Budget Woes: $300 Million Shortfall

Source: WTTW Chicago Tonight
Date: May 7, 2009
Page: Online edition
In this roundtable discussion on Chicago Public Television’s “Chicago Tonight” program, Civic Federation President Laurence Msall talks about the City of Chicago’s present budget crisis. Mr. Msall points out that in current tough financial times, the city administration must consider all options to balance its budget, including such drastic steps as program cuts and employee furloughs.

The Case for Charter Schools and Why Waukegan Didn’t Buy It

Source: Chicago Reader
Date: May 7, 2009
Page: 1
This front page story on suburban Chicago resistance to charter schools cites Civic Federation research analyzing the financial impact of charter schools on three school districts in downstate Illinois.

What the Sales Tax Repeal Means to Cook County’s Budget

Source: Chicago Public Radio
Date: May 6, 2009
Page: Online edition
Civic Federation President Laurence Msall was interviewed for this news segment on Chicago Public Radio about the vote by Cook County commissioners to repeal the 2008 county sales tax increase. Mr. Msall discusses the county’s lack of a long-term plan to pay for its hospitals and other health service programs and the effect that the sales tax has had on local businesses.

Chicago-Area Issuers Face $17B of Liabilities

Source: The Bond Buyer
Date: March 31, 2009
Page: Online edition
This article discusses the recent Civic Federation research report on Chicago-area public pension funds, focusing on the Federation’s finding that local governments’ contributions to the pension funds have been inadequate. The article also includes Federation recommendations for reforms and changes to pension administration.

State keeps spending as red ink rises

Source: Crain’s Chicago Business
Date: March 30, 2009
Page: 3
In this article, The Civic Federation questions why certain discretionary expenditures were made by the State of Illinois, despite the State’s deficit. The Federation notes that Illinois must make a better effort to change its operations and determine what spending is critical.

City pension funds missed out on fat times

Source: Crain’s Chicago Business
Date: March 27, 2009
Page: Online edition
In his blog, Greg Hinz highlights a recent Civic Federation report that analyzes the fiscal status of 10 Chicago-area public pension funds.

State Could Lose Stimulus Funds Because of Poor Planning

Source: Chicago Public Radio
Date: March 26, 2009
Page: Online edition
In this interview on the Eight Forty-Eight news program, Laurence Msall, President of the Civic Federation, expresses concern about Illinois’ lack of a capital improvement plan. Msall notes that communications between the various governments of Illinois regarding stimulus projects are lacking, and as a result the potential exists for Illinois to lose out on billions of dollars of federal assistance if governments submit competing programs.

$88,000 more for Chicago School Board ‘slush funds’?

Source: Chicago Sun-Times
Date: March 25, 2009
Page: 15
In this article about a proposed increase to Chicago Public Schools board members’ expense accounts, The Civic Federation argues that such a move would send the wrong message to taxpayers. The Federation also questions the wisdom of not requiring board members to submit receipts to be reimbursed.