Civic Federation

Like today in Chicago, we may be facing stormy weather for CPS finances, but we are optimistic about a brighter future for the public school system. At Budgets and Bevvies today, Senior Research Associate Alana Warren, MPP provided an update on our ongoing research on Chicago Public Schools' finances, including the District's increased pension contributions, long-term liability burden, and more. Thanks to Board Member Joseph Seliga and Mayer Brown for sponsoring the event! Catch us in the new year for our next Budgets and Bevvies in January.

Did you miss our latest reports and blog posts? Our November newsletter has you covered. Learn more about the release of our strategic plan, our analysis of Cook County Government’s FY2025 Proposed Budget and much more: conta.cc/3V1gcTT

Join us on December 12 as the Civic Federation presents the 33rd Motorola Solutions Foundation Excellence in Public Service Award?to?City Colleges of Chicago Chancellor Juan Salgado! At the event, we will invite special guests to reflect on Chancellor Salgado's public service and how his leadership has positively impacted City Colleges of Chicago. The event will also feature a fireside chat with Chancellor Salgado and Latino Policy Forum President and CEO Sylvia Puente. This event (and party for Chancellor Salgado) is made possible by the generous support of our sponsors! Deep gratitude for: Leader sponsor Motorola Solutions Foundation; Partner sponsors Blue Cross and Blue Shield of Illinois, Kristin Carlson Vogen and Shawn Vogen, Patti Eylar and Charles Gardner, Ford Motor Company, and United Airlines; and Advocate sponsors AT&T, Loyola University Chicago, Mayer Brown, NAMI Chicago, Peoples Gas, SB Friedman Development Advisors, Septon Strategies, and Walgreens. Become a sponsor today at https://lnkd.in/gaiQiuVi

Great news, Cook County residents: full value property in the tax year 2022 met or exceeded 2006 levels. ? This is only the second year since 2006 this has happened. ? In addition, in tax assessment year 2022: ?? In Cook County, the full value estimated increased by 8.9% from 2021 and 64.6% from 2013 ?? The estimated full market value of City of Chicago real estate increased by 8.3%, the Northwest suburbs by 9.3% and the Southwest suburbs by 9.8% ? Learn about the full market value of property in Cook County between tax years 2013 and 2022 in our latest report: t.ly/2tYVD

Cook County Government’s Pension Fund, under the stewardship of Toni Preckwinkle, is in a more sustainable financial situation compared to many other pension funds in the region thanks to sustained funding increases since 2016. Here are some data points: ?? Actuarial value funded ratio: rose from 57.5% in FY2014 to 65.9% in FY2023 ?? Market value funded ratio: rose from 59.2% in FY2022 to 62.6% in FY2023 ?? County pension contributions increased from $190.0 million in FY2014 to $472.7 million in FY2024 Learn more: t.ly/fDRxp

It’s finally here: Civic Federation's Strategic Plan. The Strategic Plan is a collective vision of our future over the next several years and provides the framework to grow and better serve the governments and residents of Chicago and Illinois. Take a look: t.ly/71ldt

Civic Federation President Joe Ferguson presented to a delegation of the Parliament of Mongolia this week about our research, partnerships and educational efforts on our region's most pressing fiscal issues. The delegation was interested in learning how our work helps to hold governments accountable and promote transparency. It was great to have an international perspective on our work. Thanks to the Council of International Programs Chicago (CIP Chicago) and George Palamattam for including us in the delegation's visit to Chicago.

As Mayor Johnson attempts to close the City of Chicago’s projected $982.4 million budget deficit, his FY2025 budget proposal relies on practices that will leave the City in a worse structural position in future fiscal years with even more significant deficits. Some of the problematic mechanisms to close the gap include: ?? Eliminating over 744 full-time vacant positions, a substantial number of which may be critically necessary to meet the City’s legal obligations under the ongoing federal Consent Decree ?? Failing to account for two forthcoming costs: 1) a pending firefighters contract and 2) a fix to Tier 2 pensions ?? Relying on several non-recurring revenue sources, including a record $570.8 million TIF surplus, $131.9 million for the City’s Corporate fund and $139.6 million from the City’s prior-year fund balance ?? Calling for a $300 million property tax increase, which should be a last resort in the wake of a looming reassessment and a likely property tax increase from other local governments and was unanimously voted down by City Council today There are other solutions to shorten the budget gap. In October, we released a FY2025 Budget Roadmap report, which outlined options for the City to secure its finances. Learn more: t.ly/RKsEn

The City of Chicago faces mounting fiscal challenges, with a projected FY2025 budget gap of $982.4 million. A significant contributor to the City’s increasing costs? Its rising debt. Here are some startling trends concerning the City of Chicago’s long-term debt: ?? Total net debt outstanding: increased by 32.8% between FY2014 and FY2023, rising from $22.0 billion to $29.2 billion ?? Total debt outstanding per capita: increased by 30.3% between FY2014 and FY2023, rising from $8.2 billion to $10.6 billion ?? Debt service ratio: averaged 19.4% between FY2021 and FY2025, exceeding the 15-20% ratio considered high by the rating agencies Learn more: t.ly/ZJsmW

We are moving forward into a new era. At our 130th Annual Board of Directors meeting yesterday, we presented our brand new Strategic Plan, which we are excited to implement over the next several years. Sincere thanks to guest speaker Rep. Mike Quigley for his remarks on the future of the region and the nation; to Civic Federation President Joe Ferguson, Board of Directors Chair Jill Wolowitz and Civic Federation staff for their presentations; and to Polsky Center at the University of Chicago's Samir Mayekar for hosting.