This report compares effective property tax rates in selected communities around metropolitan Chicago and finds that while all communities’ effective tax rates increased in 2008, rates have mostly declined since 1999. The report also finds that Chicago’s effective tax rates are still regionally competitive and the lowest of any of the selected Cook County municipalities. Read the press release…
A tax increment financing (TIF) transparency bill (Public Act 096-1335) passed by the Illinois legislature in May and signed into law by Governor Pat Quinn on July 27 includes a number of long-standing Civic Federation recommendations detailed in the Federation’s 2007 TIF report: Each TIF will require a 10-year status report. The county or municipality that created the TIF would be required…
The sales tax rate on general merchandise in Cook County declines by 0.5 percentage point on July 1, 2010. This rolls back half of the 1.0 percentage point increase imposed by the Cook County Board of Commissioners effective July 1, 2008. For two years Chicago has had the highest sales tax of any major city in the United States. The partial roll back of the Cook County sales tax…
On June 15, 2010 the Chicago Board of Education approved measures to cope with the school district’s estimated $600 million deficit for the coming school year. The measures include authorizing the establishment of an $800 million line of credit to cover delayed state payments and authorizing CEO Ron Huberman to increase class sizes to 35 students if necessary. Could Tax Increment…
The Civic Federation supports the Illinois General Assembly’s first steps toward comprehensive public pension reform in Illinois and urges state leaders to implement further reforms. On Wednesday, March 24, 2010, the Illinois General Assembly took the first important steps toward comprehensive public pension reform in Illinois by approving Senate Bill 1946 as amended by the Illinois House. The…
The Civic Federation supports the Illinois General Assembly’s first steps toward comprehensive public pension reform in Illinois and urges state leaders to implement further reforms. On Wednesday, March 24, 2010, the Illinois General Assembly took the first important steps toward comprehensive public pension reform in Illinois by approving Senate Bill 1946 as amended by the Illinois House. The…
All ten Chicago-area local government pension funds analyzed annually by the Civic Federation had negative investment returns in fiscal year 2008 for a total investment loss of $7.1 billion.[1] The average FY2008 rate of return for the eight funds with a January 1 to December 31 fiscal year was -25.3%, down from +8.1% the previous year. Rates of return ranged from -14.8% to -33.3% in FY2008, with…
The total unfunded liabilities of the ten major Chicago-area public pension funds reached $18.5 billion in fiscal year 2008. That is an increase of over $15.1 billion dollars in ten years, up from $3.4 billion in fiscal year 1999. To put $18.5 billion in perspective, it is $5,821 of unfunded pension liabilities per Chicago resident. The debt grows to $10,037 per person when you add…
As reported in the Civic Federation’s latest report on ten local government pension funds, the most recent audited financial statements of the Chicago firefighters’ pension fund showed a market value funded ratio of only 27.2%. The Chicago police fund was close behind at only 34.7%. What do these numbers mean? Funded ratio is the most basic indicator of pension fund status. It is the ratio…
This report analyzes basic financial data on ten major local government employee pension funds in Cook County. It is intended to provide lawmakers, pension trustees, pension fund members and taxpayers with the information they need to make informed decisions regarding public employee retirement benefits. The report reviews fiscal year 2008 actuarial valuation reports and financial statements of…
