Civic Federation Board of Directors

T he C ivic federation 2 0 0 8 - 2 0 0 9 ann u al report

research • information • action since 1894

The civic federation 1 HISTORY the civic federation’s mission In 1894 a group led by several The Civic Federation remains true to the non-partisan mission of ’s most prominent established by its founding members as it helps governments citizens—including , reduce their costs and improve the quality of services by: Bertha Palmer, and Lyman J. • Promoting opportunities to reform local tax structures; Gage—coalesced around a serious • Guarding against wasteful expenditure of public funds; and issue: the need to address deep • Serving as a technical resource to public officials and opinion concerns about the city’s economic, leaders through non-partisan tax and fiscal research. political, and moral climate. They created the Civic Federation, which grew to become a leading voice for THE CIVIC FEDERATION: governmental fiscal responsibility An Objective Perspective and an effective champion of rational As a non-profit, non-partisan organization, the Civic Federation tax policy. The work of the Civic provides an objective perspective on state and local government Federation continues to evolve in the tax and finance issues. 21st century, as a greater emphasis is placed on working with State of Thanks to our reputation for fair, unbiased research and thoughtful and local government officials advocacy, we successfully challenge the elected leaders of northeast- to improve governmental efficiency, ern Illinois to adopt rational tax policies and improve government effectiveness, and accountability. efficiency, effectiveness, and accountability. We continue to focus our efforts on identifying and eliminating inefficient or unnecessary ex- penditures of public funds and on offering cost-saving alternatives.

The Civic Federation provides all of our reports, studies, and analyses directly to the leaders of the major units of munici- pal, county, and state government. We also work with the news media to inform the residents of Illinois and make our research available to the general public at no cost through our website, www.civicfed.org.

2 The civic federation from our chairman and president

The years 2008 and 2009 marked great change and growth for the Civic Federation as we founded a new research institute dedicated to studying issues at the State of Illinois and took on new areas of research, including a review of the finances of the Chicago 2016 Olympic Bid.

Unfortunately, these same years were very difficult financially the Civic Federation recommends full dissolution and for our governments in Illinois. Many entered the Great restructuring, while in the case of the Forest Preserves, the Recession ill-prepared for decreased revenue and increased Federation advocates the creation of an independent Board of demand for their services, with little or no budget reserves Commissioners. Read more about these projects on page 16 or and no financial plan to guide them through difficult times. visit our newly refurbished website, www.civicfed.org. You can read about the recommendations the Civic Federation made to improve the finances of the ten governments we As the Federation celebrated 115 years of accomplishments in analyze and the positions we took on their budgets on pages 2009, we also recognized the significant contributions of our six to eight of this report. Board of Directors with the creation of a new award, the Abel E. Berland Award for Exemplary and Outstanding Service to The Federation notched several significant achievements in the Civic Federation. You can read more about Mr. Berland, the our efforts to promote government efficiency and rational award, and our first honoree, Theodore M. Swain, on page 21. tax policy during 2008 and 2009, including the partial roll- back of an ill-conceived Cook County sales tax increase. The Civic Federation Board members’ commitment and talent is Federation forcefully opposed the tax hike with our research the driving force behind every one of our accomplishments reports, media statements, and testimony before the Cook over the organization’s 115-year history. Their expertise County Board of Commissioners since the increase was and experience is an invaluable resource that guides our approved in March 2008. The DuPage County Board in 2009 research and policy debates as we consider the most pressing implemented transparency reforms to its budgeting process government issues of the day. Thanks to our members and to that had been recommended by the Civic Federation. In the dedication of our research and communications staff, the 2008 the Illinois legislature passed significant reforms to the Civic Federation’s perspective continues to grow in influence Chicago Transit Authority’s pension system that were strongly among opinion leaders, setting the stage for another 115 years supported by the Federation and based in part on our long- of innovative research, vital information, and successful action. time recommendations to improve the sustainability of public pensions. For more Civic Federation accomplishments, turn to pages 15-17.

While the Civic Federation is proud of all we accomplished in 2008 and 2009, we are always working toward our next reform objectives. We are continuing to work on a campaign to reform overlooked and non-responsive governments such as the Forest Preserve District of Cook County and Illinois Thomas McNulty Laurence J. Msall International Port District. In the case of the Port District, Chairman President

TheThe civic civic federa federationtion 3 3 research “The people of Illinois are well served by the Civic Federation and their non-partisan recommendations for achieving rational and cost effective government services.”

—, Governor, State of Illinois

4 The civic federation The Civic Federation’s work to improve government efficiency and sustainability begins with our long-term, in-depth research reports, which cover the full range of public finance issues at the state and local levels. Over the past two years, the Civic Federation has used its research expertise to offer analysis of and solutions to many of Illinois’ most complex fiscal questions, from the thorny issues surrounding the Medicaid program to the Federation’s signature issue: the dire need for comprehensive public pension reform. All of our reports are available free of charge on our website, www.civicfed.org.

Cook County Property Tax Appeals: A Primer A Call for the Dissolution and Restructuring of on the Appeals Process with Comparative Data the Illinois International Port District calls for for 2000-2008 provides summary information the abolishment of the District and the transfer of on property tax appeals in Cook County, Illi- its operations to the City of Chicago. It finds that nois. It describes the assessment appeal process at the District has shifted its primary focus from port the Cook County Assessor’s Office and the Cook operations to the management of a golf course. County Board of Review and includes data on the Even though the golf course brings in over half number and type of real estate parcels filing ap- the District’s annual revenue, the Civic Federation peals at those offices from 2000 to 2008. It also found no evidence that those revenues have been describes avenues to appeal property assessments reinvested to improve port facilities or promote at the Property Tax Appeal Board or in the court commerce. system. Governor Quinn speaks to Civic Federation members at a Board meeting Forest Preserve District of Cook County: A Call Illinois Medicaid Program: An Issue Brief pro- for a Separate Board of Commissioners calls for vides an overview of Medicaid in Illinois and the creation of an independent board of commis- highlights areas where the program’s cost efficiency sioners for the Forest Preserve District of Cook might be improved. The report recommends that County. The joint report by the Civic Federation the General Assembly form a joint legislative and and Friends of the Forest Preserves finds that the gubernatorial commission to launch a review of current arrangement by which the Cook County the future financing of the Illinois Medicaid pro- Board of Commissioners also serves as the gov- gram, especially with regard to the expiration of erning board for the Forest Preserve District has federal stimulus funds in 2011. resulted in conflicts of interest and neglect of the preserves. A Fiscal Roadmap for Creating a Sustainable State Budget: Actionable Recommendations for Annual Reports on Pensions in Chicago and Governor Pat Quinn and the Illinois General Property Taxes in Cook County The Civic Assembly was produced by the Civic Federation’s Federation annually produces reports on the status Institute for Illinois’ Fiscal Sustainability as a guide of ten local pension funds in metropolitan Chi- for addressing the State’s FY2010 budget. The cago, an estimate of the full value of real estate in roadmap provides an in-depth outline of best prac- Cook County, and an analysis of effective property tices for a budget that would confront the State’s tax rates in the six-county region of Northeast Il- growing fiscal crisis, including the areas of State linois. Visit www.civicfed.org to read these much spending, revenue, pensions, employee and retiree anticipated reports. health insurance, Medicaid, capital, and asset sales.

State of Illinois Constitutional Convention Fiscal Issues provides an overview of some state and local fiscal issues that could be considered at an Illinois Constitutional Convention if Illinois The civic federation 5 citizens had voted in favor of a “Con-Con.” Budget Analyses The Civic Federation conducts analyses of the budgets of major taxing bodies in the City of Chicago, the Counties of Cook and DuPage, and the State of Illinois every year. Our reports eval- uate the governments’ fiscal policy decisions and provide rec- ommendations for effective financial management. In calendar years 2008 and 2009 we took the following positions:

State of Illinois FY2010 Recommended Operat- The City Colleges of Chicago FY2009 Tenta- ing Budget: In 2009 the Civic Federation’s tive Budget: The Civic Federation did not Institute for Illinois’ Fiscal Sustainability support the City Colleges’ proposed $388.6 produced its analysis of the proposed FY2010 million FY2009 budget because it was unsus- Illinois operating and capital budgets. The tainable and relied almost exclusively on rev- Civic Federation did not support the pro- enue enhancements, including a maximum posed operating budget because it raised property tax increase, rather than focusing on taxes without fixing the State’s structural ways to reduce costs. The Federation com- deficit. If significant pension and employee mended the District for beginning to imple- healthcare reforms had been implemented, ment important planning procedures, but the Federation could have supported a small- urged it to use these tools to control spend- er income tax increase targeted at reducing ing and make targeted cuts in non-essential the State’s existing obligations in the areas of programming. Medicaid and pensions. The Civic Federation opposed the $26 billion proposed Illinois Chicago Public Schools FY2010 Budget: Citing Jobs Now! capital plan because it was not tied reasonable measures taken by Chicago Public “The Civic Federation’s to a comprehensive planning process and was Schools to balance its $6.9 billion budget, unaffordable. in 2009 the Civic Federation announced its authoritative research support of the District’s FY2010 spending State of Illinois FY2009 Recommended plan. The District cut personnel, proposed provides critical insight into Operating Budget: The Civic Federation op- drawing down a portion of its reserves, and the many difficult issues posed the unaffordable program expansions made a modest increase to its property tax and long-term borrowing proposed in the levy to close a $473 million budget deficit, facing Illinois government.” FY2009 State budget recommendation, but the largest since 1995. supported the proposed 3% cut from non- —, priority agencies and other efforts to stream- Chicago Public Schools FY2009 Budget: The Minority Leader, line and modernize State government. The Civic Federation supported the Chicago Federation again strongly urged the General Public Schools’ recommended $6.2 billion Assembly to implement pension benefit re- FY2009 budget because it showed restraint forms. by freezing property taxes rather than reflex- ively raising them to the maximum amount The City Colleges of Chicago FY2010 Tentative allowed under the State property tax cap law. Budget: The Civic Federation supported However, the Federation urged CPS to con- the $492.1 million City Colleges of Chica- tinue to work toward a more comprehensive go FY2010 budget because it was a prudent and transparent capital improvement plan. spending plan that both held the District’s property tax levy flat and compensated for Forest Preserve District of Cook County uncertainties in State funding by proposing FY2010 Budget: The Civic Federation sup- alternative plans to support core academic ported the FY2010 Forest Preserve District programs. The Federation was concerned of Cook County budget of $198.2 million that City Colleges had predicted revenue because the District planned to reduce its shortfalls through FY2013 and did not ar- property tax levy by $1.1 million and use a ticulate a clear and detailed plan to address portion of its budget reserve funds, rather the funding gap. than increase taxes, to balance its budget. However, the Civic Federation warned that 6 The civic federation the Forest Preserve District continues to face fiscal pressures due to rising personnel costs and should transfer law enforcement duties to Chicago Transit Authority FY2010 Budget: The the Cook County Sheriff and swimming pools Civic Federation supported the Chicago Tran- to local park districts to maximize operating sit Authority’s proposed FY2010 budget of efficiency. $1.29 billion. Facing significant public fund- ing shortfalls, the CTA planned to close its Forest Preserve District of Cook County FY2009 $300.9 million deficit with fare increases, job Budget: The Civic Federation supported the cuts, reductions in bus and rail service, and the Forest Preserve District’s proposed $193.6 transfer of capital funds into general operating million budget because the District froze funds. The Federation found that the transfer its property tax levy and maintained a pru- of capital funds into operating funds and the dent fund balance. However, the Federation cost of providing free rides to senior citizens warned that the District will face fiscal pres- posed serious long-term challenges that the sure in the future due to rising personnel costs CTA needed to address in order to ensure the and should implement performance measure- fiscal sustainability of its capital and operat- ments to assess the effectiveness of its current ing funds. The Civic Federation also opposed staff before adding more positions. the deal between the Regional Transportation Authority and Governor Quinn to freeze fares City of Chicago FY2010 Budget: The Civic for two years. The Federation felt that bor- Federation opposed the FY2010 City of Chi- rowing to balance the operating budget was “The Civic Federation cago budget of $6.14 billion because it was unsustainable and would result in steeper fare unsustainable and relied too heavily on one- increases in 2012 and an additional $10 mil- is the go-to source for time reserve funds to close a $520.0 million lion in annual debt service. independent, evidence- budget deficit. The proposed drastic draw down of long-term reserves allowed for in- Chicago Transit Authority FY2009 Budget: based research on local creased spending in FY2010 but did not prop- The Civic Federation supported the CTA’s erly plan for the future. The Federation felt FY2009 budget of $1.3 billion as a respon- government and public the City must consider FY2011 and FY2012 sible short-term plan to provide critical mass policy in Cook County.” when crafting its FY2010 budget as its rev- transit services to the Chicagoland popula- enues were not likely to rebound enough in tion. The CTA’s proposed fare increases of 25 —Anita Alvarez, the coming year to replace the reserves. to 50 cents per ride, combined with person- nel reductions, were a reasonable means of Cook County State’s Attorney City of Chicago FY2009 Budget: The Civic offsetting the mounting costs of the free ride Federation supported the FY2009 City of programs mandated by Governor Blagojevich, Chicago budget of $5.97 billion because it did decreased real estate transfer tax revenues, not rely on raising property taxes and began and skyrocketing energy and fuel costs. The the painful yet necessary step of reducing pay- Federation was concerned about the overall roll by 2,618 full-time equivalent positions to lack of State capital planning and especially balance the budget. The Federation warned the State’s responsibility for mass transit that steps must be taken to reduce the mount- infrastructure. The civic federation 7 ing liabilities of the City’s pension funds. DuPage County FY2010 Budget: The Civic Metropolitan Water Reclamation District Federation supported the $521.2 million FY2010 Tentative Budget: The Civic Fed- FY2010 DuPage County budget proposal eration supported the $1.7 billion FY2010 because it maintained funding for core pro- Metropolitan Water Reclamation District of grams while providing property tax relief. Greater Chicago (MWRD) tentative budget The County also improved its budget plan- as a prudent response to revenue shortfalls. ning process and increased government The MWRD tentative budget included plans transparency. to prioritize spending, control personnel costs, and implement a modest increase to its DuPage County FY2009 Budget: The Civic property tax levy to balance its budget. Federation offered qualified support for the $505 million FY2009 DuPage County bud- Metropolitan Water Reclamation District get proposal. Although DuPage County pro- FY2009 Tentative Budget: The Civic Federa- posed a reasonable spending plan that froze tion supported the MWRD’s FY2009 bud- property taxes, the Federation’s support was get because it minimized the burden on tax- qualified because the budget failed to provide payers and demonstrated reasonable financial sufficient transparency and to demonstrate planning. The Civic Federation recommend- that the County Board is effectively planning ed that the District pursue numerous pension for its future financial challenges. reforms in order to improve the declining fis- cal health of its pension fund. Chicago Park District FY2010 Operating Budget: The Civic Federation offered quali- Cook County FY2010 Budget: The Civic Fed- fied support for the FY2010 Chicago Park eration opposed Cook County’s $3.0 bil- District’s proposed operating budget of lion FY2010 operating budget because it $391.9 million. The District proposed a re- was predicated on the continuation of an sponsible budget that reduced expenditures ill-conceived one percentage point sales tax and held the property tax levy flat by using increase and provided limited evidence of “The insightful Medicaid operating efficiencies, personnel cuts and a cost-saving efficiencies or structural reforms. modest increase in certain fees to balance the The Federation called on the Cook County reforms proposed by the budget. The Federation’s support was quali- Board of Commissioners to make the inde- Civic Federation serve as fied because the District’s budget proposed pendent Health System Board of Directors closing $7.7 million of its budget gap with permanent. a valuable resource to the proceeds from the parking garage lease that were initially set aside for capital projects. Cook County FY2009 Budget: The Civic Fed- General Assembly’s efforts eration opposed the Cook County FY2009 to ensure Illinois residents Chicago Park District FY2009 Operating proposed budget because it was built on an Budget: The Civic Federation supported unstable foundation of $364.0 million in receive access to quality the Chicago Park District’s FY2009 budget borrowed funds to pay for operating expenses of $392.2 million because it was a fiscally less than a year after the County raised its healthcare while remaining responsible plan that demonstrated a com- sales tax by one percentage point. The report cost efficient.” mendable emphasis on cost containment made numerous recommendations for cost while avoiding a property tax increase for reductions, management reforms, and pen- — Patti Bellock, the fifth consecutive year. This was accom- sion reforms. plished by utilizing reasonable increases in Illinois State Representative user fees and charges, personnel reductions, departmental consolidations, and a three-day District shutdown.

8 The civic federation institute for illinois’ fiscal sustainability The Institute for Illinois’ Fiscal Sustainability (IIFS) is an initiative of the Civic Federation, made possible by a generous grant from the John D. and Catherine T. MacArthur Foundation. The Institute’s mission is to improve the State of Illinois’ decision-making process by providing timely fiscal policy analysis and recommendations to State officials, the media, and the public through education and digital outreach.

Since its inception in the fall of 2008, the IIFS has expanded the Civic Federation’s capacity to analyze and comment on Illinois fiscal issues via all- new reports and more detailed State budget research. The IIFS staff write a blog, published weekly, that provides commentary and analysis about Illinois fiscal matters, including the State Medicaid program, the capital and operating budget, as well as the State’s ongoing budget deficit and pension crisis.

The IIFS has advanced public knowledge about the precarious state of Illinois’ finances and contributed to the local and national conversation about how Illinois should fix its fractured budget. Among the IIFS’ many activities in its “…Many of the best and first year and a half of existence were the following events and publications: gutsiest budget proposals

A Discussion about the State’s Pension Informing Legislators have come from the Civic System and Budget Issues After the release of the IIFS analysis of the Federation of Chicago.” In a presentation to over 100 Civic Federation proposed FY2010 Illinois State Budget, IIFS members and guests on April 9, 2009, Illinois staff were invited to discuss their findings and —Chicago Tribune Governor Pat Quinn discussed the State of Il- recommendations with many legislators, in- linois’ finances and budget challenges in the cluding House Minority Leader , wake of a severe downturn in the economy. Senate Minority Leader Christine Radogno, Governor Quinn also outlined his plans to re- Senator Dan Kotowski, and Representative form pension benefits by implementing a sec- . Furthermore, the IIFS Medicaid ond tier of pension benefits for new hires. issue brief, published May 22, 2009, which recommended the General Assembly form a A Fiscal Roadmap for the State joint legislative and gubernatorial commission In February 2009 the IIFS published the “Fis- to review the future financing of the Illinois cal Roadmap for Creating a Sustainable State Medicaid program, received much attention Budget: Actionable Recommendations for from State Senator , Represen- Governor Pat Quinn and the Illinois General tative Patricia Bellock, and Representative Julie Assembly,” which provided a detailed outline Hamos. These legislators subsequently intro- of budgetary best practices for addressing the duced a resolution that included some of the State’s fiscal crisis ahead of the governor’s re- IIFS’ recommendations, demonstrating how lease of his proposed FY2010 budget. This IIFS research is helping to inform lawmakers. report received a large amount of media at- tention with local, national, and international A Forum on Medicaid news outlets citing its recommendations in On October 22, 2008, the IIFS presented a news stories and editorials. forum with Kerry Weems, Acting Adminis- trator for the national Centers for Medicare and Medicaid Services, to discuss the future of Medicaid and a new actuarial report issued by the Centers about the future of the program. The civic federation 9 information “The Civic Federation is a rare entity in the government research sector— they can be critical of public policies without being cynical about the prospect for government reform.” — Richard Durbin, United States Senator

10 The civic federation The Civic Federation works closely with governments to improve their effectiveness. We participate in their commissions and provide evidence-based, independent analysis of some of the most difficult issues they face. Through conferences and other events, the Federation also helps keep our members and the public informed about the most important policy questions of the day.

2009 The State of Illinois’ Finances that the economic situation and unprec- and Budget Challenges edented revenue shortfalls in Illinois re- Illinois Governor Pat Quinn addressed quired bipartisan action. members at a Board meeting hosted by Neal, Gerber and Eisenberg LLP. Gov- The Challenges and Opportunities ernor Quinn spoke about the very serious Facing Chicago Government: budget deficit facing Illinois. Several key Paul Volpe, then Chief of Staff to Chi- factors that the Governor felt would play cago Mayor Richard M. Daley, spoke to a role in fixing the State’s structural prob- Civic Federation Board members at a spe- lems included pension reform, a public cial meeting at the 2009 Chicago Auto works program, and increasing the State’s Show hosted by Board member and past income tax to help enable investment in Chairman Jerry Cizek. His presentation education. touched on the challenges the City was facing due to the economic downturn and Public and Private Sector Compensa- decreased revenue, as well as citizens’ in- tion: What is Affordable in this Reces- creased need for government services. To United States Senator Richard Durbin at a Civic sion and Beyond? deal with these difficulties, he highlighted Federation Board Meeting In 2009 the Civic Federation hosted a the need to seek out creative management forum in partnership with the Federal efficiencies and advocate for any portion Reserve Bank to examine differences be- of the federal stimulus bill that might be tween public sector and private sector available to Chicago. wages and benefits and discuss best prac- tices in work force sustainability and cost Safety and Law Enforcement containment. The program consisted of Challenges in Cook County two panels: the first discussed the em- Cook County Sheriff Tom Dart was the ployee compensation differences between special guest speaker at the 2009 Civic the public sector and the private sector, Federation Annual Meeting, hosted by and the second focused on the wages and Morgan Stanley. Sheriff Dart began his benefits required to attract and retain the address by outlining his budget and dis- ideal workforce in each sector. cussing his ideas to improve the Sheriff’s office. He indicated that many techno- The State of Illinois’ Finances logical improvements had already been and Legislative Challenges implemented. Sheriff Dart explained his Civic Federation Board members heard desire to expand the County’s electronic about State issues from the perspective monitoring program, use closed circuit of Senate President at a television instead of transporting detain- meeting hosted by the Metropolitan Chi- ees to routine court hearings, and assume cago Healthcare Council. President Cul- policing duties in the Forest Preserve lerton discussed impeachment proceed- District of Cook County to increase ef- ings against former Governor Blagojevich ficiency. and several cases where Democrats and Republicans in the legislature had worked together to pass legislation. He stated The civic federation 11 2008 Institute for Illinois’ FY2009 Illinois Revenue Overview Fiscal Sustainability Director of the Illinois Department of In 2008 the Civic Federation received Revenue Brian Hamer spoke with the a generous grant from the John D. and Civic Federation State Budget Commit- Catherine T. MacArthur Foundation to tee regarding FY2009 revenue proposals form the Institute for Illinois’ Fiscal Sus- contained in the budget. Issues discussed tainability (IIFS). The Institute’s mission included new tax treatments, a payroll tax is to improve the State’s decision-making for healthcare, and corporate income taxes. process by providing timely fiscal policy analysis and recommendations to State of- Cook County State’s ficials, the media, and the public through Attorney Candidate Forum education and digital outreach. For more Civic Federation Board members had the information, visit www.civicfed.org/iifs or opportunity to hear from the Democrat- view page 9. ic and Republican candidates for Cook County State’s Attorney in 2008. Cook The Legal Challenges Facing Illinois County Commissioner Tony Peraica spoke Illinois Attorney General Lisa Madigan about Cook County’s financial challenges, addressed members at the Civic Federa- including the economy, increased requests tion’s 2008 Annual Meeting, held at the for government aid, and tax increases Adler Planetarium. She spoke about her passed by the Cook County Board of Com- work as Attorney General and applauded missioners. Then Chief Deputy State’s the Federation for highlighting the many Attorney Anita Alvarez spoke about what problems facing the State’s pension funds. she believed were necessary qualities for a She argued that the State’s structural fi- State’s Attorney. She gave Board members Illinois State Representative Elaine Nekritz at a nancial problems impede Illinois’ ability her perspective on the office’s challenges, rally supporting a separate board for the Forest to properly address and fund many core as well as ideas she hoped to implement if Preserve District of Cook County responsibilities, such as education and a elected as State’s Attorney. crumbling infrastructure. “Some of the most innovative Cook County Financial Challenges Facing the Challenge of Retiree and Reform Opportunities ideas to improve government Health Care: Liabilities and Responses Then Cook County Commissioner Mike of State and Local Governments Quigley presented Civic Federation mem- efficiency in Illinois are The Civic Federation and the Federal bers with his views on Cook County’s fi- produced by the Civic Reserve Bank of Chicago presented a fo- nancial challenges and possible reform rum to discuss retiree healthcare for state opportunities at a board meeting hosted Federation. I view them as and local government employees in 2008. by ABN AMRO. Commissioner Quigley Many governments began reporting liabili- noted his support for initiatives to priva- an excellent resource for ties for Other Post Employment Benefits tize duplicative and inefficient County information on subjects (OPEB) in their fiscal year 2008 financial operations. statements. The forum considered the ranging from pension reform anticipated scope of those liabilities, le- State of Illinois Constitutional gal issues, funding changes, and featured Convention Fiscal Issue Forums to government reform.” commentary from early implementers of The Civic Federation and the Union —Elaine Nekritz, Illinois State GASB 43 and 45. League Club of Chicago hosted a series of three forums about issues surrounding Representative A Forum with Illinois State Treasurer a “Con-Con.” The focus of the first fo- Alexi Giannoulias rum was the structure of Illinois govern- Illinois State Treasurer Alexi Giannoulias ment, the second discussed State and local spoke to Civic Federation Board members government finance issues, while the third at a meeting hosted by UBS Financial Ser- highlighted education funding and reform vices. His presentation included informa- issues. tion about the State’s finances and budget challenges. Treasurer Giannoulias dis- cussed the transparency and accountability reforms he had implemented.

12 The civic federation Olympics

On June 30, 2009 the Chicago City Council passed a resolution asking the Civic Federa- tion to conduct a review of the financial projections made by Chicago 2016 for the City’s bid to host the 2016 Summer Olympic Games. Specifically, the resolution asked the Federa- tion to deliver a report and recommendations to the City Council on Chicago’s proposed financing of the 2016 Games and any financial impact on taxpayers. The Civic Federation agreed to undertake an independent review of the City’s bid for the 2016 Olympic Games with support from several foundations. The Federation’s final report found that the pro- posed operating budget for the Chicago 2016 Bid provided adequate protection for taxpay- ers. However, the development of the Olympic Village still exposed the City to continuing real estate risks that needed to be managed. In order to effectively carry out this plan and manage the risk associated with construction of the Village, the Civic Federation and our consultant L.E.K. Consulting recommended the following:

• The City Council must exercise its oversight role and require regular reporting on the status of the Games, including public disclosure of budgets, contracts, and construction updates to the City Council. • The Olympic Bid’s proposed insurance coverage must be purchased to manage the risk to taxpayers that comes with guaranteeing delivery of the Games. • The Organizing Committee for the Olympic Games must be led by a professional and experienced management team that understands and executes the proposed Chicago 2016 plan.

Civic Federation President Laurence Msall testifies at New Website and Blogs a Chicago City Council meeting

In mid-2009 the Civic Federation launched an upgraded website. The new website was designed with the goal of increasing the accessibility of our ever-growing catalog of research “The Civic Federation with resources such as an updated library that allows visitors to search through Federation [is] renowned for its and IIFS research and commentary quickly and easily, expanded RSS feeds, and all-new blogs. objective and non-partisan

Our blogs, which are written by Federation staff, focus on Civic Federation research, pro- viewpoints.” vide commentary on events in the news, and highlight other topics on government finance. — The Chicago City Council Also new to www.civicfed.org is the “Issues” page that spotlights the many research topics the Civic Federation and our Institute for Illinois’ Fiscal Sustainability cover on a regular basis. These new resources have helped triple the number of average daily visitors to the Civic Federation’s website.

In the new online library, named for past Civic Federation Secretary Douglas Sutherland, visitors can now search by the date reports were published or by government, type of publi- cation, and government fiscal year. With hundreds of research documents already available on the site and more added daily, the Federation and IIFS are committed to providing citi- zens, public officials, and the media with critical information about government in Illinois.

The civic federation 13 action “The Civic Federation brings a strong, independent voice to the table and provides state, county and local governments with recommendations needed to tackle the toughest problems facing public bodies today.”

—Lisa Madigan, Illinois Attorney General

14 The civic federation The Civic Federation’s research and information creates a solid, factual foundation for public information campaigns to improve the cost-efficiency and quality of state and local government. In 2008 and 2009 the Civic Federation took action on a number of important policy issues that affect taxpayers in Cook County and throughout northeastern Illinois. The issues include:

2009

Cook County Tax Rollback Mayor Daley’s Commission to In December 2009 the Cook County Strengthen Chicago’s Pensions Board of Commissioners voted to roll In 2008 and 2009 the Civic Federation back a one percentage point County sales participated in a commission to propose tax increase by half. The Civic Federa- ways the City of Chicago could improve tion opposed the 2008 sales tax hike as the financial strength of its four pension unnecessary and repeatedly called for its funds. The Federation recommended re- repeal, most recently in its analysis of the forms that included increasing contribu- FY2010 Cook County budget. tions by governments and employees to the plans and possibly shifting retirement Cook County Veto Override Threshold programs to defined contribution plans. In November 2009 Governor Quinn signed into law a measure that made it Tax Increment Financing Transparency easier for Cook County commissioners In April 2009 the City of Chicago ap- to override the veto power of the Cook proved a tax increment financing (TIF) County Board President, an action that transparency ordinance that was based Illinois Attorney General Lisa Madigan speaks at the the Civic Federation had supported since on recommendations detailed in a Civic 2008 Civic Federation Annual Meeting 2001. The measure, which became ef- Federation issue brief about TIF. The or- fective immediately, reduced the margin dinance, introduced by Aldermen Manny required to override a veto by the Board Flores and Scott Waguespack, would re- President from four-fifths majority to quire all TIF redevelopment agreements three-fifths and should help create a more and exhibits as well as TIF district de- level playing field between the executive mographics data to be accessible to the and legislative branches of Cook County public online by the end of 2009. Ad- government. ditionally, all proposed redevelopment agreements would be made accessible to Pension Modernization Task Force the public ahead of Chicago City Council In 2009 the Civic Federation served as a consideration. member of the Illinois Pension Modern- ization Task Force created by the General Assembly. The Task Force was charged with recommending changes to mod- ernize state pension benefit systems and report findings to the General Assembly and the Governor. The Federation sub- mitted a minority report, which stated that the Task Force’s recommended re- forms did not go far enough and instead recommended that the committee adopt a report submitted by the Civic Committee of the Commercial Club as the Task Force work product.

The civic federation 15 2008

Chicago Transit Authority levels of assessment to 10% for residen- Pension Reform tial, vacant, and apartment properties In 2008 the General Assembly passed and 25% for commercial, industrial, and comprehensive Chicago Transit Authority non-profit properties. The Civic Federa- pension and healthcare reform in order to tion supported this proposal as a means to avert an imminent collapse of the CTA bring greater transparency to the property pension fund. The Civic Federation was tax system, while simplifying the classifi- a strong supporter of the reforms, which cation system. Civic Federation President included many Federation recommenda- Laurence Msall testified to this effect at tions such as increasing employer and a meeting of the Cook County Board of employee contributions and increasing Commissioners; the proposal passed in years-of-service and age requirements for September of 2008. early retirement. Mr. Msall also served on Cook County Separation of Cook County Board President Todd Stroger’s Cook Forest Preserve District County Property Tax Classification Task The Civic Federation issued a joint report Force, which was convened in order to with the Friends of the Forest Preserves study the potential effects of the ordi- in 2008 that called for the creation of nance change and advise the Cook Coun- an independent board of commissioners ty Board of Commissioners. for the Forest Preserve District of Cook County. The report found that the cur- ILPERS rent arrangement by which the Cook The Civic Federation supported Illinois County Board of Commissioners also Treasurer Alexi Giannoulias’ proposal to serves as the governing board for the For- merge the investment functions of all five est Preserve District has resulted in an un- state-funded pension systems into a sin- avoidable conflict of interest and neglect gle fund managed by a new Illinois Pub- of the preserves. The Civic Federation re- lic Employees’ Retirement System (ILP- ceived a grant from the Joyce Foundation ERS). The benefits would have included in 2009 to conduct a public information reduced costs due to economies of scale campaign to garner support for a separate and savings in administrative expenses “At civicfed.org, the… board. related to operating separate pension in- Chicago Civic Federation vestment bodies. The Treasurer’s proposal Dissolution of the Illinois would have required ILPERS to make provides budget analyses International Port District investment information more accessible The Civic Federation issued a report in and transparent and included training re- covering city and county 2008 that called for abolishing the Illi- quirements for pension board members. agencies, research papers nois International Port District. In the The Federation has for years urged the report the Federation outlined how the State to require financial training for pen- explaining dense financial District has shifted its primary focus from sion board members and has consistently port operations to the management of a advocated for more transparency. issues, position papers golf course. The Civic Federation recom- spelling out opinions, and mends that port operations and assets be Illinois Municipal League Police transferred to the City of Chicago, For- and Fire Pension Reforms more. An invaluable and est Preserve District of Cook County, and In 2008 the Civic Federation supported the Chicago Park District. With the assis- the Illinois Municipal League’s successful free online resource for tance of a generous grant from the Joyce effort to reform Downstate Illinois fire policy wonks.” Foundation, the Civic Federation will and police pension systems with a letter continue to advocate for the dissolution writing campaign to State legislators that —Chicago Magazine of the Illinois International Port District culminated in the passage of Public Act while raising public awareness of the is- 95-950. The law enhanced public dis- sue. closure and regulatory improvements for local police and fire pension funds. The 10 and 25 Cook County Property IML’s work was assisted by the Federa- Classification Ordinance tion’s pension research. In 2008 Assessor Houlihan proposed amending the Cook County Classifica- tion Ordinance in order to change the 16 The civic federation Selected Civic Federation Accomplishments 2008-2009

In 2009 DuPage County implemented The Illinois General Assembly heard the recommendations by the Civic Federation Civic Federation’s call for a State of Illinois that will improve the transparency of its accountability and performance report- operations. Concerned by DuPage County’s ing system. Senator Dan Kotowski inserted inadequately transparent budget and lack of a measure into the FY2010 budget imple- a formal long-term financial plan and capi- mentation bill that will create a system by tal improvement plan, the Civic Federation which State agencies continuously improve had suggested a number of steps the County accountability and reporting to provide citi- could take to improve the disclosure and ac- zens with the most effective and efficient counting of expenditures. In response, the programs. County held budget hearings and posted budget materials and a budget calendar on- The Chicago Park District’s adoption in line. January 2009 of a formal reserve fund policy came on the heels of recommenda- Heeding the Civic Federation’s warnings tions made by the Civic Federation in its about the dangers of borrowing hundreds analysis of the FY2009 District budget. By of millions of dollars to pay for operating implementing a formal policy that would expenses, in 2009 the Cook County Board require a certain percentage of expenditures of Commissioners followed Federation or revenues to be set aside for contingencies recommendations and cut expenses to bal- and emergencies, the District could avoid ance its FY2009 budget. The Federation’s issuing Tax Anticipation Notes and prevent analysis of the budget cautioned that the future negative fund balances like those ex- board’s plan to borrow money to make up perienced in FY2002 and FY2003. a budgetary shortfall in lieu of reducing operating expenses was irresponsible and a The Civic Federation supported legisla- bad deal for taxpayers. Through testimony tion that allowed the Metropolitan Water and letters to the editor, the Civic Federa- Reclamation District to create an Other tion emphasized the importance of avoiding Post Employment Benefits trust fund that Chicago Public Schools CEO Ron Huberman speaks to Civic Federation Board members and guests unnecessary borrowing, especially less than will provide irrevocable funding for retiree one year after the County enacted a one per- health, dental, and life insurance and long- centage point sales tax increase. term care coverage. In keeping with the “Chicago Public Schools Civic Federation’s recommendations, in The State of Illinois in 2009 increased the FY2009 the MWRD also pursued and re- takes the Civic Federation’s limit on the number of charter schools ceived legislative approval for increased em- permitted within the State, a move long ployer contributions to its pension funds. budget and accountability advocated by the Civic Federation. The These are steps in the right direction that recommendations very City of Chicago will now be permitted to will help put the MWRD on stronger finan- develop 40 new charter schools, in addition cial footing. seriously. We look forward to 15 schools downstate and five schools for dropout recovery. Responsibly-run charter to working with them schools bring high quality learning options as the District confronts to underserved communities in a cost-effec- tive manner. current and future fiscal challenges.” — Ron Huberman, CEO, Chicago Public Schools

The civic federation 17 2008 and 2009 THE ADDAMS-PALMER AWARD Presented for the first time in 1995, this award honors Jane Addams and Bertha civic Honoré Palmer, two outstanding Chica- goans who helped form the Civic Federa- tion. In their memory, the Addams-Palmer federation Award for Exemplary Civic Involvement is given each year in recognition of outstand- ing civic participation by an individual or awards institution. From our founding, the Civic Federation has brought together 2009 Molex Incorporated 2008 BlueCross BlueShield of Illinois business leaders who share an interest in making the Chicago 2007 Michael H. Moskow metropolitan area a better place to live and work. Named 2006 Allstate Corporation for the Federation’s founding members, the Lyman J. Gage 2005 William Blair & Company, L.L.C. 2004 Exelon Corporation Award and Addams-Palmer Award recognize the outstanding 2003 RR Donnelley civic contributions of individuals and institutions whose 2002 Aon Corporation leadership and dedication set an example for all of us. Over 2001 LaSalle Bank 500 of Chicago’s business, civic, and government leaders 2000 McDonald’s Corporation 1999 BP Amoco joined Civic Federation Board members and the event co- 1998 First Chicago NBD Corporation chairmen in both 2008 and 2009 to celebrate our honorees. 1997 Chicago ‘96 1996 united Airlines, Inc. 2009: 1995 Sears, Roebuck and Co. The 2009 Civic Federation Awards Luncheon recognized the exceptional civic leadership of Richard L. Thomas, retired chairman of First Chicago NBD Corporation, with the Lyman J. Gage Award. Luncheon co-chairman John A. Canning, Jr. presented the award to Mr. Thom- as, emphasizing the honoree’s efforts on behalf of Chicago’s most prominent cultural and civic organizations and his most recent work to promote campaign finance reform.

Molex Incorporated, a leading supplier of interconnect products, received the Addams-Palmer Award for Exemplary Civic Involvement. Vice Chairman and Chief Executive Officer Martin P. Slark accepted the award on behalf of his company from luncheon co-chair Lester Crown. Mr. Crown praised Molex’s three-generation commitment to Chicago’s civic well-being. (L to R) 2009 Luncheon Co-Chair Lester Crown, Molex Vice Chairman and CEO Martin P. Slark, Event co-chairmen John A. Canning, Jr., Lester Crown, W. James Farrell, Andrew J. McK- Retired Chairman of First Chicago NBD Richard L. enna, and John W. Rowe were instrumental to making the luncheon such a fitting tribute to Thomas, Luncheon Co-Chair John A. Canning, Jr., and Civic Federation President Laurence Msall the honorees.

Award recipients (L to R) Martin P. Slark of Molex Incorporated and Richard L. Thomas

Illinois Senate Minority Leader Christine Rado- gno gives the Salutation Address at the 2009 Civic Awards Luncheon

18 The civic federation THE LYMAN J. GAGE AWARD In keeping with the civic commit- ment and vision of its first president, the Civic Federation annually presents the Lyman J. Gage Award for Outstand- ing Civic Contribution to an individ- ual who has consistently demonstrated dedication to civic concerns in the Chicago area. 2009 Richard L. Thomas John W. Rowe, Chairman, President Raymond F. McCaskey, Chief Executive 2008 John W. Rowe and Chief Executive Officer of Exelon Officer of BlueCross BlueShield of Illinois Corporation 2007 Patrick G. Ryan 2006 John W. Rogers, Jr. 2008: 2005 W. James Farrell 2004 Lester Crown In 2008 the Civic Federation recognized John W. Rowe, Chairman, President and Chief Ex- 2003 William A. Osborn ecutive Officer of Exelon Corporation, with the Lyman J. Gage Award for Outstanding Civic 2002 Andrew J. McKenna Contribution. Richard L. Thomas, co-chairman of the event, underscored Mr. Rowe’s strong commitment to education and preserving the City of Chicago’s history in his presentation 2001 John H. Bryan speech. 2000 Clark Burrus 1999 Ruth M. Rothstein BlueCross BlueShield of Illinois received the Addams-Palmer Award for Exemplary Civic In- 1998 James J. O’Connor volvement. Chief Executive Officer Raymond F. McCaskey accepted the award on behalf of 1997 Daniel E. McLean his company. Luncheon co-chair Andrew McKenna presented the award to Mr. McCaskey, 1996 Henry Hyde citing BlueCross BlueShield’s dedication to ensuring quality healthcare reaches underprivi- leged youth and the company’s generous giving through its foundation. 1995 Hillary Rodham Clinton 1993 William L. Weiss Many thanks to the co-chairmen of the 2008 luncheon, Lester Crown, W. James Farrell, An- 1992 Robert W. Galvin drew J. McKenna, and Richard L. Thomas, for their efforts that made the event such a success. 1991 Stanton R. Cook 1990 Richard M. Morrow 1989 Frank W. Considine 1988 James F. Beré 1987 Edward A. Brennan 1986 John E. Swearingen 1985 Philip M. Klutznick 1984 Lavern W. Kron 1983 Donald Regan 1982 Alan Greenspan

(Clockwise from top left) 2008 Luncheon Co- Chair Andrew J. McKenna, BlueCross BlueShield of Illinois CEO Raymond F. McCaskey, Chairman, President and CEO of Exelon Corporation John W. Rowe, 2007-2008 Civic Federation Chairman Barbara Stewart, Luncheon Co-Chairs Richard L. Thomas and Lester Crown, and Civic Federation President Laurence Msall; Patti Eylar and Civic Federation Board members Charles Gardner and Susan McKeever; Civic Federation Board member Gregory O’Leary, Larry Weithers, Laurence Msall, and Civic Federation Treasurer Joseph Starshak; Civic Federation Board member Bert Nuehring and State of Illinois COO Greg Wass

The civic federation 19 2008 and 2009 excellence in public service awards

In 1990 executives at Motorola recognized the need to identify and promote the exemplary work of public servants throughout the State of Illinois. Motorola had previously worked with the Illinois business community to support the achievements and hard work of non-elected government officials. Judy Erwin accepts the 2009 Motorola Foundation Excellence in Public Service Award Now sponsored by the Motorola Foundation and presented by the Civic Federation, the Excellence in Public Service Award annually recognizes a non-elected government official who has had an extraordinary impact on the quality of government services in the City of Chicago, Cook County, and the State of Illinois. The award seeks to honor individuals who show dedication to a vision of quality management, leadership, and innovation that leads to lasting achievements and more effective government in Illinois.

2009: The 18th Annual Motorola Foundation Excellence in Public Service Award honored Judy Erwin, Executive Director of the Illinois Board of Higher Education (IBHE). As the Ex- ecutive Director of IBHE, Judy Erwin managed a $2.7 billion higher education budget and worked with colleges and universities across the state to coordinate and map out the state’s postsecondary education policies and goals. After taking over IBHE, Ms. Erwin led initiatives to expand the affordability of higher education to lower income and minority residents and Arne Duncan speaks to attendees at the 2008 Motorola Excellence in Public Service Award instituted programs to improve the academic preparation of Illinois’ high school students. luncheon in his honor

2008: Arne Duncan, then Chief Executive Officer of the Chicago Public Schools, was the 17th An- nual Motorola Honoree. The award celebrated his life-long commitment to education. His focus as head of Chicago Public Schools, the nation’s third-largest school district, was school reform through the Renaissance 2010 program and through the promotion of charter schools. Mr. Duncan also improved the quality of teaching in the District by bolstering the caliber of Chicago’s teachers and improving the learning process.

20 The civic federation support

The Board of Directors of the Civic Federation is at the heart of all that the Civic Federation accomplishes. Our Board of Directors is a diverse and highly talented group of business and professional leaders from a wide range of Chicago area companies and institutions. They make our success possible by generously providing their time and expertise in the planning and execution of our mission to provide a non- partisan, objective perspective on State and local government tax and finance issues. In our system of Board committees, members of different interests and skills debate and discuss Civic Federation Board members listen to Chicago issues with staff and each other, ensuring rigorously vetted Public Schools CEO Ron Huberman at a Federation Board meeting research and policy analysis that reflects the highest standards of our business and civic community.

The Abel E. Berland Award for Exemplary and Outstanding Service to the Civic Federation of Chicago

The Abel E. Berland Award was established in 2009 to honor Mr. Berland’s extraordinary service to the Federation and to recognize members of the Civic Federation Board of Directors for their own exceptional contributions.

Abel E. Berland is a thirty-plus year member of the Civic Federation Board of Directors and a past Chairman of the Board. Mr. Berland is an internationally recognized bibliophile and collector of rare manuscripts. He is a distinguished real estate executive and was President of Arthur Rubloff & Co. for many years. It is thanks to Mr. Berland that his friend Arthur Past Civic Federation Chairman John Ward (L) Rubloff included a very generous endowment of the Civic Federation in his bequests. That presents the first Abel E. Berland Award to Theodore M. Swain (R) endowment has enabled the Civic Federation to continue its valuable work uninterrupted through good economic times and bad.

The 2009 Berland honoree was Theodore M. Swain, also a thirty year Civic Federation Board member and a preeminent expert on property tax law in Illinois. Mr. Swain’s greatest achieve- ment at the Civic Federation was as Chairman of the Civic Federation Task Force on Reform of the Cook County Property Tax Appeals Process. The Task Force quarterbacked one of the most influential accomplishments in the Civic Federation’s 115-year history: the drafting and enactment between 1994 and 1998 of historic legislation to reform the Cook County assess- ment appeals process. The law made it easier for taxpayers to successfully appeal incorrect assessments, a major victory for property owners across Cook County.

The civic federation 21 Civic Federation Supporters 2008-2009

Mr. & Mrs. Hall Adams, Jr. Julie Emms John W. Madigan James Reilly James L. Alexander Judy Erwin Patrick Magoon André Rice Garland Allen Sylvia Ewing Tariq Malhance Robert Rich Dr. Paula Allen-Meares William C. Foote Timothy P. Maloney Desiree Rogers Bridget Anderson Rita Forden Lynn M. Martin John W. Rogers, Jr. Mark A. Angelini Donald B. Franklin Paul E. Martin McKim Barnes Carol Freeman Timothy W. Martin Ruth Rothstein William C. Bartholomay Michael Froy Rick Mattoon Jesse Ruiz Frank Beal Jerry Fuller Terry Mazany Mr. & Mrs. Patrick G. Ryan Carol Bernick David W. Grainger John McCaffrey Michael Sacks Mark H. Beaubien David L. Grange Raymond F. McCaskey Nancy J. Sage Steve Birchard Joseph A. Gregoire Thomas McCracken Manuel Sanchez Michael J. Birck Suzanne Griffith Pam McDonough Buzz Sawyer Robert D. Blackwell, Jr. James Gordon Andrew J. McKenna Kathy Schaeffer David Blake Charley Gross Richard A. Melman Stefanie Schumann Neil G. Bluhm Frances Grossman Jack Molloy Lois A. Scott Linda Boasmond Charles Guengerich Richard M. Morrow Gordon I. Segal Mr. & Mrs. Norman Bobins Julio Guerrero Peggy Mueller Sanjay Sharma Marshall M. Bouton Patricia Hemingway Hall Clare Munana Todd Sholeen Kim Bowman Anthony Halter Mr. & Mrs. Michael R. Gary Skoien Woods Bowman Francia E. Harrington Nathanson Dion Smith John A. Buck Wayne E. Hedien Gordon H. Smith John Bucksbaum Joanne E. Howard Paul Newman William L. Smith, Jr. Dean L. Buntrock Patricia J. Hurley Bonnie Oberman David Snyder Don Campbell Verne G. Istock Peter O’Brien David B. Speer Paul Campbell Richard M. Jaffee Geoffrey S. Obrzut Daniel Sprehe John A. Canning, Jr. Edgar D. Jannotta, Sr. John R. O’Connell, Jr. Harrison I. Steans Greg Carlin Debra Walker Johnson Fred O’Connor Avy H. Stein Warrick L. Carter Margaret Jones Mary Pat Olson Roger Stone Gregory C. Case Robert Jordan Kate O’Malley Stuart D. Strahl Martin Castro Tilden Katz Mr. & Mrs. William O’Neill Mr. & Mrs. Russ Strobel Mr. & Mrs. Donald C. Dennis J. Keller Sarah Pang Scott C. Swanson Civic Federation Vice Chairman and Chairman Clark Linda K. Kingman Faye T. Pantazelos James L. Terman of the Research Committee A.G. Anglum Lori Clark Barbara Kohley Thomas M. Paris Richard L. Thomas Michelle Collins David Kohn Debra Parker Robert Tisdahl Suzanne Connor Martin J. Koldyke Robert L. Parkinson, Jr. Fred L. Turner Joe Costello Fred A. Krehbiel Kathleen Pasulka-Brown James C. Tyree Lester & Susan Crown Paul G. Kuchuris, Jr. Mr. & Mrs. Donald S. Lori Vallelunga Perkins “As Chairman of the Research John Czuino Duane R. Kullberg Dennis Vicchiarelli Terry Peterson Omar Daghestani Nicol Lee Frederick H. Waddell David Plomin Committee, I see firsthand Andrew Davis Mr. & Mrs. Homer J. Elmer L. Washington Erika Poethig Rolanda Derderian Livingston, Jr. Greg Wass J.B. Pritzker the results that the Civic Emilia DiMenco Donald Lubin Steven Weiss George Ranney Jay Doherty William T. Lynch, Jr. Miles D. White John Rau Craig Duchossois C.H. Randolph Lyon Thomas J. Wilson Federation’s knowledgeable James C. Reddinger Christine T. Dudley Gabrielle Lyon Peter Wrenn James Regan Board and talented staff Ann Marie Dunlap Jane P. Madden Donna F. Zarcone achieve together to improve Foundation Support government performance.” The Civic Federation’s work to improve the effectiveness of local and state governments is made possible by the generous support of the foundation community in Illinois. In 2008 and 2009 —A.G. Anglum, Civic Federation the Civic Federation received grants to found a new Illinois research institute, to improve the Vice Chairman, Chairman of transparency of Cook County, to review the Chicago 2016 Olympic Bid, and to examine the finances of Chicago charter schools, among many other projects. the Research Committee, and Vice President of Harris Bank Our gratitude goes out to the following foundations for their financial and experiential support: The John D. and Catherine T. MacArthur Foundation The Chicago Community Trust The Commercial Club Foundation The Joyce Foundation Motorola Foundation Searle Funds at The Chicago Community Trust The Elizabeth Morse Genius Charitable Trust McCormick Foundation Polk Bros. Foundation The Field Foundation of Illinois 22 The civic federation Woods Fund of Chicago Statements of financial position Year Ended September 30, 2009 and 2008

ASSETS 2009 2008 Cash and cash equivalents $ 388,636 $ 243,871 Investments 1,829,728 1,937,296 Receivables Pledges 494,856 735,230 Other 33,510 43,920 Investment in pooled trust fund 16,100 23,620 Civic Federation Board members Thomas Vanden Berk (L) and Glenn Mazade (R) talk after a meet- Website development costs 15,000 -- ing of the Board of Directors Prepaid expenses 2,464 3,433 total Assets $2,780,294 $2,987,370

LIABILITIES AND NET ASSETS LIABILITIES 2009 2008 Deferred rent $ 10,126 $ 13,876 Accounts payable 13,678 59 Accrued wages 11,258 2,998 Accrued vacation 16,613 8,666 Accrued real estate taxes 12,000 -- Civic Federation Board member Ron Gidwitz (L) chats with Craig Dellimore (R) of WBBM total Liabilities 63,675 25,599 radio before the 2009 Motorola Foundation Excellence in Public Service Award Breakfast

NET ASSETS Unrestricted Undesignated $ 274,390 $ 223,805 Board-designated 1,829,728 1,937,296 total Unrestricted 2,104,118 2,161,101

Temporarily Restricted $ 612,501 $ 800,670 Total Net Assets 2,716,619 2,961,771 total Liabilities $2,780,294 $2,987,370 Civic Federation member Dawn Clark Netsch (L) and Civic Federation Board member and Net Assets Michael Lovett (R) speak at a 2008 “Con-Con” forum

The civic federation 23 2009 Officers Civic Federation Board of Directors

Thomas McNulty Steven H. Abbey David Abel Catherine M. Adduci Chairman Fifth Third Bank William Blair & Company LLC Unisys Corporation A.G. Anglum Allan Ambrose A.G. Anglum Adrienne Archia Vice-Chairman Northern Trust Harris Bank Rice Financial Products Company Mark Davis Murray E. Ascher Alicia Berg Abel E. Berland Vice-Chairman Henry Crown & Company Columbia College Chicago CB Richard Ellis Thomas Livingston Brian A. Bernardoni Roger Bickel Ambassador J.D. Bindenagel Vice-Chairman Chicago Association of Realtors Freeborn & Peters LLP DePaul University Aileen Blake Douglas H. Cameron Whitney Carlisle Joseph B. Starshak Northern Trust HIGroup, LLC McCracken, Walsh & de LaVan Treasurer Timothy L. Christen Robert J. Christie Richard Ciccarone Laurence J. Msall Baker Tilly Northwestern Memorial Hospital McDonnell Investment Management, President LLC Lise Valentine Jerry Cizek III Nancy J. Clawson Lew Collens Vice President Merrill Lynch & Co. The Chicago Community Trust Elizabeth G. Coolidge Mark Davis Amy Anderson Day 2008 Officers Siebert Brandford Shank & Co., LLC O’Keefe Lyons & Hynes, LLC Kevork M. Derderian Julian C. D’Esposito Jon B. DeVries Barbara Stewart Continental Offices Ltd. Mayer Brown Roosevelt University Chairman Thomas H. Donohoe Martin L. Eisenberg Brian D. Fabes Sarah Garvey McDermott Will & Emery LLP Civic Consulting Alliance Vice Chairman Timothy J. Faerber Timothy Fair Stephen B. Friedman George Lofton HNTB Corporation KONE, Inc. S.B. Friedman & Company Vice Chairman Charles R. Gardner Carol W. Garnant Sarah Garvey Thomas McNulty CDCT Land Company, LLC Navistar, Inc. Vice Chairman Anthony Gedeller Ronald J. Gidwitz Peter G. Glick Wm. Wrigley Jr. Company GCG Partners Wells Fargo Securities Joseph B. Starshak Treasurer Judith A. Gold Andrew F. Gottschalk Patrick J. Hagan Perkins Coie LLP KPMG LLP RSM McGladrey, Inc. Laurence J. Msall President Philip Hale M. Hill Hammock Albert C. Hanna Loyola University Chicago Chicago Deferred Exhange Company Draper and Kramer, Incorporated Lise Valentine Patricia M. Holden Bruce T. Hopple Margaret Houlihan Smith Vice President Bank of America UGL Equis United Airlines – HDQGV Lorna Brett Howard James H. Kane William Ketchum 2010 Staff True Partners Consulting

Laurence Msall Lise Valentine Jim Kranjc Stephen Legatzke Thomas E. Livingston President Vice President and Ryan Goldberg Kohn CSX Transportation Research Director Michael A. Lovett William D. Mack Glenn Mazade Roland Calia Sarah Wetmore PricewaterhouseCoopers LLP Morgan Stanley Charter One Bank Project Manager Director of Susan L. McKeever Thomas J. McNulty Eileen Mitchell Communications Neal, Gerber & Eisenberg LLP AT&T Illinois Susan Charrette Genevieve Nolan Fred H. Montgomery Timothy E. Moran Monica Mueller Operations Manager Senior Research Associate Sara Lee Corporation Schmidt Salzman & Moran, Ltd. Motorola, Inc. Laurie Cohen Peter Matuszak Michael E. Murphy Bert Nuehring Michael F. O’Brien Senior Analyst Senior Analyst Sara Lee Corporation Crowe Horwath LLP Aon Risk Services, Inc.

David Levett R. Zach Thomas Holly O’Connor Gregory J. O’Leary Robert Pasin Senior Research Associate Communications Specialist Chesley, Taft & Associates, LLC Radio Flyer Dorice Pepin Donovan Pepper Tiffany Butler Carol Frenda WTAS Walgreen Company GTCR Event Planning and Membership Manager Communications Assistant Alexander I. Rorke Scott Saef John C. Sciaccotta Loop Capital Sidley Austin LLP Shefsky & Froelich Ltd. Helen Jackson Administrative Assistant James E. Spiotto Caryn Stancik Joseph B. Starshak Chapman and Cutler LLP Metropolitan Chicago Healthcare Starshak Winzenburg & Co. Council Barbara Stewart Eugene S. Sunshine Theodore M. Swain JPMorgan Chase Gould & Ratner LLP Kent A. Swanson Courtney A. Thompson Thomas C. Vanden Berk The John Buck Company The Boeing Company UCAN Robert S. Vihon Sue E. Wallace John F. Ward, Jr. the civic federation Worsek & Vihon LLP Exelon Corporation Ward and Ward P.C. 177 N. State St., Suite 400 Jeffrey D. Warner Andrew L. Weil Jerrold Wolf Chicago, Illinois 60601 PNC Bank Morgan Lewis Public Consulting Group Phone: 312 201-9066 Philip Zinn Fax: 312-201-9041 PricewaterhouseCoopers LLP www.civicfed.org