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We believe that for government to truly serve the public, it must be: Stable, Sustainable, and Resilient

Achieving this requires a foundation built on systems that are: Accessible, Accountable, Effective, and Transparent

Through independent research, analysis, and advocacy, we promote policies and practices that not only address today’s challenges but also build long-term trust in government. Our two primary pillars of work are government fiscal policy and governance structure. Focus areas within these pillars include budgeting best practices, pensions, property tax, government consolidation, infrastructure, and structural reform, among others.

June 16, 2025

CPS’ FY2026 Financial Outlook

As Chicago Public Schools (CPS) heads into a pivotal budget season under new leadership—and with a newly finalized, high-cost contract with the Chicago Teachers Union—the Civic Federation is releasing a three-part educational series on what's at stake for CPS in FY2026 and beyond. The new contract significantly increases the District’s structural budget deficit, and with a new Board now responsible for developing long-term solutions, a clear understanding of the financial landscape is imperative. CPS is burdened with high pension costs and a low credit rating, with few options to raise its own revenue without asking the City or the State for aid. The District also faces a structural deficit that will continue to grow as the costs of the new contract come due. This series provides public officials, advocates, and the media with a grounded understanding of the District’s fiscal challenges, the limitations of available options, and the risks of unsound solutions.

This three-part educational series sheds light on what's at stake for CPS in FY2026 and beyond.

Understanding the Components of CPS’ FY2026 Projected Structural Deficit

A Brief History of the School Finance Authority

How Chicago Public Schools' Pensions Work: An Explainer

Click here to view the one-page summary of these reports.

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Featured Reports & Analysis

State of Illinois
March 19, 2025

Modernizing Illinois' Sales Tax: A Pathway to a Sustainable Future

As the State of Illinois’ second largest revenue source, the sales tax is a critical tool that supports government operations and public services throughout the state. First implemented in the 1930s, Illinois’ antiquated sales tax structure still primarily taxes goods rather than services. Due to this narrow tax base — which does not reflect the modern, service-oriented economy — the sales tax is falling short. Illinois needs a more strategic and sustainable fiscal structure that delivers consistent and reliable revenue growth, efficient spending, and economic competitiveness.
State of Illinois
February 12, 2025

State of Illinois FY2026 Budget Roadmap: Landscape, Issues, and Recommendations

The State of Illinois (Illinois or the “State”) has made significant progress in stabilizing its budget in recent years, yet still faces ongoing financial challenges, including a high tax burden, structural budget deficits, and legacy pension obligations, all of which put a strain on the state’s long-term sustainability. Overshadowing these challenges is the unprecedented uncertainty in Washington, D.C., with a new federal administration that threatens to eliminate billions of dollars in federal funding and disrupt the fragile government ecosystem. While the impacts of threatened or looming cuts to core government services and programs, including Medicaid, education funding, environmental protection programs, and medical research, are still unknown, the uncertainty surrounding federal funding of state and local government is a serious concern that must be part of conversations about strengthening Illinois’ fiscal stability and resilience.
Chicago Public Schools
January 13, 2025

Financial Landscape Analysis of the Chicago Public School District: FY2025

The Chicago Public School District (CPS or the “District”) faces a critical financial juncture, highlighted by structural budget imbalances, rising expenditures, declining enrollment, significant near-term infrastructure investment needs, and substantial long-term liabilities. A new 21-member Board of Education (the “Board”), partially elected for the first time, inherits these challenges as it assumes oversight on January 15, 2025. This new report by the Civic Federation is intended to provide the new Board, as well as other officials, advocates, parents, and community members, with a complete picture of the financial landscape of the District. To guide the Board, the report also offers several concrete suggestions rooted in the urgent need for long-term financial planning.

Keep up with the Civic Federation's latest research and recommendations on fiscal policy and other key issues facing our state and local governments.

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