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2017 Annual Report THE CIVIC FEDERATION 2017 ANNUAL REPORT research • information • action since 1894 2017 THE CIVIC FEDERATION’S MISSION To provide research, analysis and recommendations that: • Champion efficient delivery of high-quality government services; • Promote sustainable tax policies and responsible long-term planning; • Improve government transparency and accountability; and • Educate and serve as a resource for policymakers, opinion leaders and the broader public. THE CIVIC FEDERATION’S HISTORY from our The Civic Federation was founded in 1894 by several of Chicago’s most prominent citizens, including Jane Addams, Bertha Honoré Palmer and Lyman J. Gage. They chairman coalesced around the need to address deep concerns about the city’s economic, political and moral climate at the end of the 19th century. The Federation has since and become a leading advocate for efficient delivery of public services and sustainable president tax policies. 2017 CIVIC FEDERATION STAFF Today the work of the Federation continues to evolve as greater emphasis is placed on working with government officials to improve the efficiency, effectiveness and accountability of the State of Illinois and local governments. The Civic Federation’s The State of Illinois’ enactment of a comprehensive fiscal Lauracyn Abdullah Institute for Illinois’ Fiscal Sustainability was launched in 2008 to provide Illinois Director of Finance and Operations policymakers, the media and the general public with timely and comprehensive year 2018 budget in July 2017 gave taxpayers reason to Patricia Acosta analysis of the state budget and other fiscal proposals for the State of Illinois. Executive Assistant breathe a short sigh of relief as Illinois finally joined the 49 Katy Broom Communications Director other states in abiding by the most basic of financial tenets. Roland Calia PAGE(S) Project Manager IN THIS REPORT However, following more than two years of unmanaged Laurie Cohen 3 Senior Analyst, IIFS Letter from the Chairman and President spending, Illinois’ challenges are far from over. Carol Frenda Membership and Events Manager Civic Federation Priorities in 2017 More than ever, the Civic Federation is called upon to increased transparency of some of the County’s data. Sustainable Tax and Fiscal Policies 4 - 5 Benjamin Kidder provide critical analysis and recommendations as our And we continue to raise awareness of the obvious Senior Analyst, IIFS Responsible Long-Term Financial Planning 6 - 7 governments at all levels face the results of decades of need to consolidate or streamline Illinois’ nearly 7,000 Annie McGowan High-Quality, Efficient Government Services 8 - 9 short-sighted policy decisions exacerbated by the State’s units of local government. Senior Research Associate budget impasse. As we address these unprecedented Laurence J. Msall challenges, the Federation continues to insist on telling The Federation’s influential work is made possible FY2018 Budget Analysis Summary 10 - 11 President taxpayers what they need to know rather than the only by the support and dedication of our members Mark W. Patoska simple answers they might want to hear. Building the and friends. We remain particularly grateful for the Manager of Local Government Research Institute for Illinois’ Fiscal Sustainability 12 - 13 political will to implement painful reforms may be expertise of each member and the steady leadership Isabella Romano difficult, but it will be necessary in order to secure our of our officers and committee chairs as they steer our Communications Specialist, IIFS Annual Civic Awards Luncheon 14 - 15 state’s financial future. work throughout the year. Sarah Wetmore Vice President and Research Director Despite the shaky financial landscape, Civic On behalf of the Civic Federation, thank you for your Motorola Solutions Foundation Excellence 16 Federation members and staff find many reasons to be continued interest, support and guidance. in Public Service Award encouraged. The State’s archaic school funding formula was overhauled in 2017. The City of Chicago has Photography by staff unless otherwise indicated Financials 17 more construction cranes in the air than ever before. Following publication of a recent Civic Federation Kent A. Swanson Laurence J. Msall report, Cook County public safety officials have Support 18 - 19 Chairman President 2 THE CIVIC FEDERATION THE CIVIC FEDERATION 3 Photo courtesy of City Colleges of Chicago. A Coalition to Call for an End to the of this report to their own work. The Budget Impasse Federation’s annual report on the estimated Following news in May that the Illinois full value of real property in Cook County General Assembly might attempt to pass a found that the estimated total value of stopgap “budget” for the second year in a real estate in the County rose for the third row, the Civic Federation convened a group year in a row after having fallen for six of eight civic and social service organizations consecutive years prior. to call for the State to enact either a comprehensive, balanced budget or no Establishing a Task Force to Study budget at all. Because unmanaged piecemeal Regional Competitiveness spending for large areas of government had In June the Civic Federation held its first continued over the previous two fiscal years, meeting of the newly established Chicago pressure on lawmakers to pass funding for Regional Competitiveness Task Force other areas of government had been relieved, to evaluate the Chicago area’s strengths, while the State’s backlog of bills ballooned weaknesses and where the region is an to unprecedented levels and Illinois’ most outlier for good or bad. The goal of the vulnerable citizens were irreparably harmed. Task Force is to develop actionable policy CIVIC FEDERATION PRIORITY As part of the Coalition for a State Budget, recommendations on tax, fiscal, economic, representatives from the Better Government quality-of-life and other issues in order Association, Civic Federation, Forefront, to help the region support its diversified Metropolitan Planning Council, Sargent economy and compete globally and Shriver National Center on Poverty Law, nationally for business and population. United Way of Metropolitan Chicago, Union League Club of Chicago and Voices Sustainable Tax and for Illinois Children came together to “Mr. Msall and his amplify this message, culminating in a press Civic Federation conference that generated local and national Fiscal Policies coverage along with acknowledgement from colleagues are respected many lawmakers in Springfield. leaders that play a critical § Pondering the City of Chicago’s role guiding government Fiscal Future institutions like City In April, the Civic Federation and Federal “Laurence Msall, president of the Reserve Bank of Chicago cohosted Colleges in the efficient The Civic Federation’s nonpartisan analyses and recommendations Civic Federation, a nonpartisan the policy forum, “Chicago’s Fiscal and thoughtful use promote sustainable tax and fiscal policies. This work is a critical resource Future: Growth or Insolvency?” Experts, Chicago-based government- practitioners and academics from around watchdog group, … said there of taxpayer resources. for Illinois governments as they address serious financial challenges such the country gathered to discuss the best and are really only a few ways for the They help ensure that as persistent structural deficits and historically low credit ratings. worst case scenarios for Chicago’s economic future. While recognizing the City’s serious state to solve its pension problems. City Colleges lives up to challenges—financial and otherwise—expert Illinois would need a constitutional our promise to provide “We share a common goal with the Civic panelists and guests saw many opportunities amendment that would allow the Federation in promoting policies that provide to stabilize Chicago’s finances and expressed Chicagoans with quality, optimism that with dedicated action the state to reduce the liability or affordable education budget transparency and accountability and City could leverage its resources and talent a means of bringing in enough to move past its current woes. leading to promote an environment where sound, principled revenue to cover state operations upward mobility.” financial decisions are made throughout Chicago. Annual Reports on Consumer Taxes and pay off pension debts over The independent analysis offered by the Civic and Estimated Property Values time.” The Civic Federation’s report on selected —Juan Salgado, Federation is something we continue to encourage consumer taxes included rates and THE WALL STREET JOURNAL, 7-5-17 City Colleges of Chicago as we pursue fiscally responsible policies that serve descriptions of taxes in place in the City of Chancellor Chicago on sales, accommodations, leases, every neighborhood in Chicago.” hotels, liquors, restaurants, soft drinks, tobacco and parking. As in past years, —Rahm Emanuel, local government officials commented to Federation staff in 2017 on the helpfulness Chicago Mayor 4 THE CIVIC FEDERATION THE CIVIC FEDERATION 5 Updates on Chicago Finances from the hosted an Indonesian fellow as part of City’s Treasurer and Chief Financial a U.S. State Department and American Officer Council of Young Political Leaders At the 124th Annual Meeting of the Civic program. Nurul Komolasari works for the Federation Board of Directors, members Indonesian government body responsible heard from City of Chicago Treasurer for ensuring accountability for entities that Kurt Summers about the City’s financial
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