This article covered the City of Chicago's significant financial challenges ahead of Mayor Lori Lightfoot's State of the City address. Civic Federation President Laurence Msall said that the Mayor does not have any easy solutions left to address a roughly $1 billion budget deficit, growing pension liabilities and a high debt burden. A Civic Federation report released earlier in the year outlined the magnitude of the City's financial problems, weighed the costs and benefits of a number of…
This article covered the passage of the Chicago Public Schools FY2020 budget. The Civic Federation supported the budget because it demonstrated continued financial stability in the third year of Evidence-Based Funding from the State of Illinois. However, the Civic Federation continues to be concerned about the District’s long-term financial sustainability. Related Coverage: Crain's Chicago Business: Watchdog warns of CPS spending pressures as teacher strike looms…
Concerns persist on enrollment declines, teachers’ pension fund and other pressures (CHICAGO) — In a report released today, the Civic Federation announced its support for Chicago Public Schools’ proposed $7.7 billion FY2020 budget, but expressed ongoing concerns about the District’s long-term financial sustainability. The full report is available here. As detailed in the analysis, CPS’ proposed budget demonstrates increased financial stability in the third year of Evidence-Based Funding (EBF…
Click here to read the full report. Click here to read the press release for this analysis. Click here to see a diagram of CPS revenues and expenses. SUMMARY The Civic Federation supports the Chicago Public Schools (CPS) proposed budget for FY2020 because it demonstrates continued financial stability in the third year of Evidence-Based Funding from the State of Illinois. However, the Civic Federation continues to be concerned about the District’s long-term financial sustainability. The…
This year is the third year that Chicago Public Schools (CPS) will receive funding from the State of Illinois through the statewide Evidence-Based Funding formula that was signed into State law in August 2017. The CPS 2020 fiscal year runs from July 1, 2019 through June 30, 2020. The Evidence-Based Funding (EBF) formula is more equitable than the prior General State Aid formula. It calculates the funding adequacy of school districts based on available resources and district-wide needs rather…
This article covered the Civic Federation’s analysis of the City Colleges of Chicago FY2020 Tentative Budget. The Federation supported the $447.5 million proposal, but had severe concerns about the future fiscal stability of the District. The article highlighted the Federation’s most severe concerns—declining enrollment and the use of one-time revenues to fill a structural deficit. Related: WBEZ: 4 Things To Know About City Colleges of Chicago’s Shaky Finances
(CHICAGO) In an analysis released today, the Civic Federation announced its support of the City Colleges of Chicago’s proposed FY2020 operating budget as a one-year plan for the District—while expressing concerns about the District’s long-term fiscal stability. The full report is available here. The Civic Federation supports many aspects of the District’s efforts to stabilize its finances for FY2020 and beyond, including implementing several cost-containment strategies. The District will…
Click here to read the full report. Click here to read the press release for this analysis. SUMMARY The Civic Federation supports the City Colleges of Chicago FY2020 Tentative Annual Operating Budget totaling $447.5 million, but has concerns about the future fiscal stability of the District. The District is still recovering from the two-year State budget impasse that severely underfunded higher education institutions and reduced and delayed MAP grants, impacting student enrollment. In an…
A new pension buyout plan designed to save hundreds of millions of dollars for the State of Illinois in the fiscal year that just ended actually generated relatively minor savings in FY2019 and does not appear likely to meet the annual cost-reduction target over the next few years. The shortfall has occurred despite robust participation by members of the State Employees’ Retirement System (SERS), the pension fund that was supposed to account for most of the savings. The problem stems from the…
A Commission created to analyze an annual five-year forecast of Cook County revenues held its first meeting in early July. The Cook County Board of Commissioners approved an ordinance establishing an Independent Revenue Forecasting Commission on October 17, 2018. The Commission is intended to help the Board of Commissioners make informed budgetary decisions by evaluating long-term revenue estimates. The Commission is chaired by the Cook County Chief Financial Officer and consists of three…
