As part of its ongoing analysis of State and local government budgets, the Civic Federation also reviews proposed capital budgets along with any planning documents provided in support of infrastructure investments. Although many governments approve new and reappropriated capital spending on an annual basis, few public entities in Illinois have based these expenditures on comprehensive capital improvement plans (CIPs). Unlike the operating budgets, which mostly require that all appropriated…
Four large local government pension funds in the Chicago area reduced their expected investment rates of return for fiscal year 2012. While intended to make the funds’ actuarial assumptions more realistic, these decisions will also have the effect of increasing the funds’ liabilities and reducing their funded ratios. The State of Illinois’ five retirement funds also recently reduced their expected investment rates of return and the Chicago Teachers’ Pension Fund trustees voted last month to…
Over the next few weeks, many Chicago-area local governments will be releasing their proposed budgets for fiscal year 2014. In preparation for the upcoming budget releases, this blog will recap the Civic Federation’s significant observations from our analyses of local governments’ proposed FY2013 budgets. The governments studied by the Civic Federation include: the City Colleges of Chicago and Chicago Public Schools (CPS) which have already released their FY2014 budgets, City of Chicago, Cook…
Since July 2013 each of the six local governments monitored by the Civic Federation with General Obligation bond debt has experienced downgrades to their bond ratings. These governments are the City of Chicago, Cook County, the Metropolitan Water Reclamation District (MWRD), the Forest Preserve District of Cook County, the Chicago Park District and Chicago Public Schools. In the past three months, Moody’s Investors Service issued downgrades for each of the six local governments, and Fitch…
This week the Civic Federation released its annual Status of Local Pension Funding report. The purpose of this report is to compile and analyze basic financial data of the retirement funds for the City of Chicago (four separate funds – Municipal, Laborers’, Police and Fire), Chicago Park District, Chicago Public Schools (Teachers’ Fund), Cook County, Forest Preserve District of Cook County, Metropolitan Water Reclamation District (MWRD) and Chicago Transit Authority (CTA). [1] The report…
Chicago-area public employee pension funding levels dropped significantly in FY2011, with unfunded liabilities for the ten funds analyzed rising to $32.0 billion from $27.4 billion in FY2010, an increase of 16.7% according to the most recent audited data available. For all pension funds supported by the taxes of Chicago residents, including statewide funds, the total unfunded liabilities reached $16,914 per Chicago resident in FY2011. On average, the ten funds analyzed had an actuarial funding…
This blog examines some of the long-term obligations of the City of Chicago and its overlapping local governments using a per capita indicator based on bonded debt and unfunded pension liabilities. Rating agencies and other financial analysts commonly monitor overlapping direct debt trends as an affordability indicator when governments consider debt issuance. The indicator reflects the premise that the entire population of a jurisdiction benefits from and bears the cost of infrastructure…
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…
Last week the Civic Federation marked the end of the FY2013 budget season with a blog that summarized the proposed budgets for the nine local governments the Federation monitors. These governments include: the City Colleges of Chicago, Chicago Public Schools (CPS), DuPage County, City of Chicago, Cook County, Chicago Transit Authority (CTA), Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago (MWRD) and Chicago Park District. This blog focuses on…
Last week marked the end of the budget season for the nine local governments monitored by the Civic Federation. These governments include: the City Colleges of Chicago, Chicago Public Schools (CPS), DuPage County, City of Chicago, Cook County, Chicago Transit Authority (CTA), Forest Preserve District of Cook County, Metropolitan Water Reclamation District of Greater Chicago (MWRD) and Chicago Park District. This blog provides a summary the proposed FY2013 budgets and how appropriations have…
