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Research • Information • Action Since 1894 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 Chicago’s most prominent established by its founding members as it helps governments citizens—including Jane Addams, 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 Illinois 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.” —Pat Quinn, 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
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