local government
Civic Federation: Funding Continues To Decline For Chicago-Area Public Employee Pension Funds
The Chicago-based Civic Federation is out with a new report about the health of Chicago-area public employee pension funds. The independent, non-partisan government research organization that provides analysis and recommendations on government finance issues for the Chicago region and State of Illinois put out the following news release this morning:
Aggregate Unfunded Liability for Chicago-area Public Pension Funds Increased by $4.6 Billion in FY2011
(CHICAGO) A Civic Federation report released today examines the continued funding decline of Chicago-area public employee pension funds. Unfunded liabilities for the ten funds analyzed in the report increased to $32.0 billion in fiscal year 2011 from $27.4 billion in fiscal year 2010, an increase of 16.7% according to the most recent audited data available. For all pension funds supported by the taxes of Chicago residents, including statewide funds, the total unfunded liabilities reached $16,914 per Chicago resident in FY2011.
“Without comprehensive reforms, this staggering level of pension obligations will soon mean dramatic tax increases, significant service cuts or both for Chicago residents,” said Civic Federation President Laurence Msall. “Illinois and local lawmakers owe it to taxpayers and public employees to agree on reforms that will significantly reduce pension costs for our state and local governments and ensure that the funds remain solvent for current and future public employees.” In the report, the Federation urges local governments to develop pension reform frameworks suited to their own employee population, statutory provisions and funding levels. The report cites Cook County Commissioner Bridget Gainer’s OpenPensions.org site as an example of transparently advocating for changes tailored to the needs of the County’s pension fund.
Each of the ten funds analyzed in the report experienced sharp funding declines in the last decade. On average, the ten funds had an actuarial funding level of 50.8% in FY2011, down from 80.3% in FY2002. All ten funds are now funded below 65%, ranging from a low of 28.3% for the Fire Fund to a high of 64.9% for the Laborers’ Fund.
The declining health of Chicago-area public pension funds is due in large part to inadequate employer contributions over a sustained period and recent investment losses. All of the local funds analyzed received their statutorily required employer contributions in FY2011. However, the employer contribution level set by State statute was approximately $1.6 billion short of the $2.5 billion level necessary to cover current costs for the funds and reduce their unfunded liabilities over a 30-year timeframe.
Adequate funding levels are likely to be even more difficult to attain in the future because the funds have fewer employees to support a rising number of beneficiaries. In FY2011 the ten funds had 1.16 active employees for every beneficiary, down from 1.65 actives per beneficiary in FY2002. Six of the ten funds – the Police, Laborers’, MWRD, Forest Preserve, CTA and Park District Funds – had more beneficiaries than active employees in FY2011.
The Federation’s analysis reviews the FY2011 actuarial valuation reports and financial statements for the City of Chicago’s Police, Fire, Municipal and Laborers’ Funds, the Chicago Teachers’ Pension Fund and the pension funds of Cook County, Forest Preserve District of Cook County, Chicago Park District, Metropolitan Water Reclamation District and the Chicago Transit Authority. FY2011 data is the most recent audited data available for all ten funds.
The full 79-page report, available at www.civicfed.org, is intended to provide policymakers, pension trustees, pension fund members and taxpayers with the resources to make informed decisions regarding public employee retirement benefits.
(Editor’s note: Italics added for emphasis)
Even though I’ll be moving out of Chicago very soon, I’ll still be living in Cook County. As such, I won’t be surprised to get hit with more fees and taxes, in conjunction with less government services, as financial challenges grow at the county and state level.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Chicago Flash Mobs/Mob Attacks/Wildings Derailed This Summer?
South Side youths intent on carrying out a flash mob/mob attack/wilding in downtown Chicago may find themselves unable to get to their destination this summer.
From the Chicago Transit Authority (CTA) website this morning:
Coming: May 19, 2013
Faster. Smoother. Better.
Beginning May 19, 2013, the CTA will rebuild the tracks along the south Red Line, from Cermak-Chinatown to 95th/Dan Ryan—a project that will provide faster, more comfortable and more reliable service for Red Line riders.
From just north of the Cermak-Chinatown station to the 95th Street station, crews will replace everything in the track bed: ties, rail, third rail, ballast (the stone material that holds the ties in place) and drainage systems. Some stations will also receive improvements ranging from new canopies, paint and lighting upgrades to new benches and bike racks. Additionally, the stations at Garfield, 63rd and 87th will get new elevators, making all stations on the South Side Red Line accessible.
The south Red Line, called the Dan Ryan branch, is more than 40 years old and needs a full replacement…
The work is part of Mayor Rahm Emanuel’s Building a New Chicago program, which is updating infrastructure that’s critical to the city—and includes improvements that will help ensure that CTA continues to serve customers as effectively as possible.
The project is made possible by $1 billion in state and local funding announced in late 2011 by Mayor Rahm Emanuel and Governor Pat Quinn for the Red and Purple Lines.
The Red Line will completely close from Cermak-Chinatown through 95th/Dan Ryan. The closure is expected to last 5 months, until late October 2013.
Knowing all this, I won’t be surprised if it’s a “quiet” summer along the “Magnificent Mile” and in other tourist hotspots downtown. Still, if I were an urban dweller/visitor in that part of the city, I wouldn’t let my guard down for an instant. They shouldn’t be doing that anyway, especially as the more-established criminal element in the city is probably well-aware of the ongoing manpower shortage in the Chicago Police Department.
You can read more about that CTA project beginning this weekend here.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Cook County Public Pension Crisis Worsens
Back on April 9, 2012, I blogged about the public pension crisis in Cook County, Illinois. From that post:
Chicago, Cook County, and Illinois- a trifecta of serious financial concerns.
Hal Dardick talked about all three entities and their growing pension problems early this morning on the Chicago Tribune website:
Cook County’s pension fund will go broke in 26 years without changes that could include an increase in employee contributions and later retirement ages, according to a new analysis.
The report, done under the direction of county Commissioner Bridget Gainer in her role as chairwoman of the board’s pension-oversight panel, shows that it’s not just state and city pension funds that have perilous futures.
Even if the county fund generally is in better shape, Gainer said, that doesn’t mean the county can continue to ignore a funding gap that had grown to $5.2 billion by the end of 2010. That’s seven times the size it was a decade earlier…
(Editor’s note: Italics added for emphasis)
The public pension crisis in the country’s second most populous county has grown worse since I posted that, with the funding gap now having reached $6.79 billion. Paul Merrion revealed on the Crain’s Chicago Business website Wednesday:
Solvency of Cook County’s pension funds deteriorated in the last fiscal year, according to a new report, and county commissioners are pressing anew for reforms.
The county’s main Employees’ Annuity and Benefit Fund saw its pension debt grow to $6.79 billion, up $969.5 million last year and an increase of $1.6 billion in the gap between assets and liabilities since 2010. The plan is only 53.5 percent funded, down from 57.5 percent in fiscal 2011, and the fund is projected to be insolvent by 2034.
(Editor’s note: Italics added for emphasis)
I anticipate Cook County’s financial woes will make themselves known well before that 2034 date. County residents and businesses should plan accordingly.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
Merrion, Paul. “Cook County pension woes worsen.” Crain’s Chicago Business. 8 May 2013. (http://www.chicagobusiness.com/article/20130508/NEWS02/130509769/cook-county-pension-woes-worsenwww.sj-r.com). 10 May 2013.
Cook County Sheriff Proposing $300 ‘May Issue’ Concealed-Carry Permits If State Misses Deadline
As Illinois state legislators scramble to enact a concealed-carry law after a federal appeals court required one to be in place by June 9, the top law enforcement officer in Cook County is proposing his own CCW legislation. Frank Main reported on the Chicago Sun-Times website last night:
Sheriff Tom Dart said Sunday that he is proposing a concealed-carry gun ordinance to keep Cook County from becoming the “Wild West.”
Dart said he’s worried about a stalemate in the General Assembly on a law to license people to carry concealed guns. If legislators don’t meet a June 9 court deadline to pass such a law, anyone with a state firearm owner’s identification card could legally walk anywhere in public with a concealed weapon, Dart said…
Dart’s ordinance would give him the power to approve and reject licenses to carry concealed guns in Cook County. Applicants would have to pay a $300 fee for a license.
As I mentioned in an April 19 post on lawful concealed-carry in Illinois:
However, I predict there’s a good chance concealed-carry legislation will be enacted in the state by that June deadline.
If not, something will be patched together quick… after perceived political opportunities are exploited and exhausted, of course.
Stay tuned…
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
Main, Frank. “Sheriff Tom Dart proposes Cook County concealed-carry ordinance.” Chicago Sun-Times. 5 May. 2013. (http://www.suntimes.com/news/19919549-418/sheriff-tom-dart-proposes-cook-county-concealed-carry-ordinance.html). 6 May. 2013.
More Video Surveillance Cameras Coming To A Public Place Near You?
As I watched the television news coverage on the Boston terror attack right after it happened, one of the “talking heads” noted what some person responded with when asked what they thought would come from all this:
Less freedom.
While I support the law enforcement community and their mission “to serve and protect,” I am concerned about what I see is a steadily-developing Police State in America.
Regrettably, there are a number of civil servants who give public service a bad name in their lust for private glory and control over others.
I should know. I’ve met and worked alongside a few of these individuals during my past employment in different levels of government.
(Editor’s note: It’s been my experience that the majority of public servants are good, hard-working people who realize they answer to and work for you. Unfortunately, there are plenty of “rotten apples” in the barrel as well.)
One of the features associated with the Police State is the proliferation of video surveillance cameras in public places. Here in Chicago, these monitoring devices now number 22,000 according to an AP piece that was published earlier today.
Rather worrisome are the results of a recent poll conducted by The New York Times and CBS News asking Americans their views on security issues after the Boston Marathon bombings (April 24-April 28, 965 people surveyed), which could be construed as Americans being open to the increased use of surveillance cameras. From The New York Times website Tuesday:
Some people think installing video surveillance cameras in public places is a good idea because they may help to reduce the threat of terrorism. Other people think this is a bad idea because surveillance cameras may infringe on people’s privacy rights. What do you think?
Survey said…
• 78 percent good idea
• 16 percent bad idea
• The remaining 6 percent replied “both,” “don’t know,” or didn’t answer
In the wake of this poll, the Associated Press’ Tami Abdollah reported this morning:
Police and politicians across the U.S. are pointing to the example of surveillance video that was used to help identify the Boston Marathon bombing suspects as a reason to get more electronic eyes on their streets.
From Los Angeles to Philadelphia, efforts include trying to gain police access to cameras used to monitor traffic, expanding surveillance networks in some major cities and enabling officers to get regular access to security footage at businesses.
(Editor’s note: Italics added for emphasis)
Abdollah added the following:
Dozens are said to sit today around the house of George Orwell, the author of “1984,” a story that foretold of a “Big Brother” society. Privacy advocates in the U.S. are concerned that the networks proposed by officials today could grow to realize Orwell’s dystopic vision.
I’m no “privacy advocate,” but the danger of these cameras being used for purposes other than fighting crime (monitoring political opponents and so-called “enemies of the state” comes to mind) probably isn’t too far of a stretch of the imagination.
When it comes to the continued proliferation of these video surveillance cameras, it’s wise to remember what Orwell penned in 1984:
The end was contained in the beginning.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Sources:
“Americans on Terrorism Threats.” The New York Times. 30 Apr. 2013. (http://www.nytimes.com/interactive/2013/04/30/us/poll-terror-graphic.html?ref=us). 2 May 2013.
Abdollah, Tami. “Police, politicians push surveillance post-Boston.” Associated Press. 2 May 2013. (http://news.yahoo.com/police-politicians-push-surveillance-post-boston-084307887.html). 2 May 2013.
Tinley Park, Illinois, Site Of Urban Warfare Training Exercise
A little over a year ago, I blogged about Chicago hosting one of these military training exercises that since have popped up with increasing frequency in the news. From that April 16, 2012, post:
The City of Chicago’s Office of Emergency Management and Communications (OEMC) released the following statement about the scheduled urban warfare training exercise today:
The City of Chicago is providing support for a routine military training exercise in and around the Chicagoland area on April 16 -19. This routine training is conducted by military personnel in cities across the country, designed to ensure the military’s ability to operate in urban environments as service members meet mandatory training certification requirements and prepare for upcoming overseas deployments.
The training sites have been carefully selected to minimize the impact on the daily routine of residents.
The training is not open to the public.
“The training is not open to the public.”
I guess downtown Chicago residents and workers were supposed to close their eyes and pretend the helicopters that buzzed them during last year’s event didn’t exist.
Anyway, last week, another one of these exercises took place in the Chicagoland area- in the southwest Chicago community of Tinley Park, Illinois. From the Chicago Tribune website today:
Department of Defense training exercises that included explosions heard miles away and helicopters flying over Tinley Park angered residents.
Residents said they heard “bomb” noises from about 10 p.m. to 1 a.m. on April 23 during what was an urban warfare training exercise at the former mental health center. Tinley Park police received about 25 calls from residents who were either fearful or angry, especially in the wake of the bombings in Boston the previous week.
Defense officials followed up with another exercise April 24 involving helicopters that flew over Tinley Park for much of the night. Residents reported hearing them from 8:30 p.m. until about 12:45 a.m…
Local police were not involved with the training, said Pat Carr, Emergency Management Agency director.
Like the Chicago urban warfare exercise last year, the public was not allowed to view the training. But that didn’t prevent a few from trying.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
“Urban warfare exercise rattles Tinley Park residents.” Chicago Tribune. 2 May 2013. (http://www.chicagotribune.com/news/local/suburbs/tinley_park/ct-tl-tinley-park-dod-exercise-20130502,0,7645588.story). 2 May 2013.
CBS Chicago Asks: Is Chicago, Cook County Safe From Terrorists?
From a CBS Chicago news broadcast last night:
ROB JOHHNSON: Chicago’s Mayor and Police Superintendent have said they would use lessons learned from the Boston Marathon bombings to make Chicago safer.
KATE SULLIVAN: But tonight, we’ve learned that they’ve already made some changes. Chief Correspondent Jay Levine sat down with Superintendent McCarthy and began by asking the simple question, “Are we safe?” So what do you say, Jay?
JAY LEVINE: One word Kate- absolutely.
Tuesday night, CBS Chicago’s Levine focused on Cook County as the second most populous county in the U.S. refines its anti-terrorism plans and procedures in the wake of the Boston terror attack (video segment here).
Personally, as long as our borders are as porous as they are, I won’t feel safe from terrorists. It won’t stop me from doing what I want, when I want, but you won’t see me at some mass gathering or in some other situation that screams “juicy jihadist target” anytime soon.
Besides, I dislike crowds.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Chicago May Update Emergency Plan After Boston Attack
Here’s something out of City Hall that all Chicagoans can get behind. From Craig Dellimore on the CBS Chicago website last week:
Mayor Emanuel says Chicago may revise its emergency medical plans in light of Boston’s response to the Boston Marathon bombings a week ago, reports WBBM Political Editor Craig Dellimore.
Mayor Emanuel says special circumstances not withstanding, Boston showed it was well-prepared to face a crisis when those bombs went off.
“Now not every time are you going to have an incident where you have medical care on-site because they had a marathon they had it on-site. That clearly saved lives. But having a well-rehearsed, well-planned, well thought out medical emergency response, was crucial in saving lives. We have a very good plan. We did it for NATO exercise. I have asked everybody to go back and look at it,” said Emanuel.
And he says after Boston authorities review their response, Chicago will see about updating its emergency plan.
I’ve never seen the City of Chicago’s “official” emergency preparedness plan. Even when I worked in the public safety field. Last I heard, the plan was closely-guarded. Leah Samuel wrote in The Chicago Reporter website back on September 12, 2007:
Although the federal government recommends that cities plan their responses to terrorism with inclusiveness and openness, Chicago’s emergency preparedness plan is known only to a few in city government, The Chicago Reporter has found.
Among those who haven’t been shown the plan are the city’s aldermen, firefighters and police officers.
“We do not discuss the particulars of our plan so as not to allow those who would harm us an additional way to create disorder,” Cortez Trotter, executive director of the Office of Emergency Communications, or 911 Center, said in a written statement. “Full disclosure of the plan might assist those who would thwart evacuation and rescue procedures.”
Samuel added later in the piece:
“We don’t want anyone to see it,” said Larry Langford, public information officer for the Office of Emergency Communications. He called the secrecy “an unfortunate by-product” of emergency planning: “You want to reassure everyone, but you don’t want to give the plan away.”
Here’s hoping more than just “a few in city government” are familiar with the City’s emergency preparedness plan in 2013.
Or else Chicago residents could really be screwed in a major crisis.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Sources:
Dellimore, Craig. “Chicago May Update Emergency Plans In Wake Of Boston Terror Attack.” CBS Chicago. 22 Apr. 2013. (http://chicago.cbslocal.com/2013/04/22/chicago-may-update-emergency-plans-in-wake-of-boston-terror-attack/). 1 May 2013.
Samuel, Leah. “Emergency Plan Eludes City Officials.” The Chicago Reporter. 12 Sep. 2007. (http://www.chicagoreporter.com/news/2007/09/emergency-plan-eludes-city-officials). 1 May 2013.
City Of Chicago On Review For ‘Possible Downgrade’ By Moody’s
“We still have a very strong bond rating. Our fiscal position is getting better every year and we are aggressively managing our liabilities and obligations.”
-City of Chicago Comptroller Amer Ahmad, July 20, 2012, as noted in a July 22, 2012, Chicago Sun-Times article
I’ve been warning Survival And Prosperity readers for some time that the City of Chicago’s finances are not as peachy keen as City Hall would like outsiders to believe.
So much so, the City’s credit rating is on review for a possible downgrade by Moody’s Investors Service. From the Moody’s website earlier today:
Moody’s has announced its final approach to the way it will analyze and adjust pension liabilities as part of its credit analysis of state and local governments. These changes reflect the rating agency’s view that pension obligations are a significant source of credit pressure for governments and warrant a more conservative view of the potential size of the obligations. As a result of this new approach, Moody’s has also placed the general obligation ratings of the cities of Chicago, Cincinnati, Minneapolis, and Portland, OR, and of 25 other US local governments and school districts on review for possible downgrade. The entities whose ratings have been placed on review have large adjusted net pension liabilities relative to their rating category…
Moody’s rates over 8,000 local governments in the United States. Less than 1% of those with general obligation or equivalent ratings have been placed under review because of the new pension adjustments.
(Editor’s note: Italics added for emphasis)
Great. Chicago is in another “select group” it really doesn’t want to belong to these days.
You can read the entire announcement on the Moody’s website here.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Chicago Police Department: ‘No Known Threat’ To City Related To Boston Explosions
All’s well in Chicago after the Boston Marathon incident?
From the Chicago Sun-Times website late this afternoon:
Chicago Police said Monday afternoon there is “no known threat” to the city, although police in Los Angeles, New York and London are stepping up security following explosions at the Boston Marathon.
“We are closely monitoring events as they unfold in Boston and the City of Chicago’s public safety departments are actively communicating with our law enforcement partners both locally and throughout the country,” said Melissa Stratton, spokewoman for the 911 center. “At this time, there is no known threat to Chicago.”
Good to know.
I’ll keep all of the above in mind as I continue practicing eternal vigilance in these uncertain times.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
“‘No known threat’ to Chicago, official says.” Chicago Sun-Times. 15 Apr. 2013. (http://www.suntimes.com/19504594-761/no-known-threat-to-chicago-official-says.html). 15 Apr. 2013.
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