The General Assembly Retirement System (GARS) was established in 1947 to provide lawmakers and certain members of the executive branch with a mechanism to save for retirement. Like Illinois’ other four state‑run pension systems, GARS is structured as a defined benefit plan, offering guaranteed lifetime pensions based on salary and years of service. Because theContinue reading “The State Pension Fund with the lowest funded ratio: GARS”
Category Archives: Finance
The Illinois municipality with the worst bond rating
Riverdale, a small municipality of roughly 10,000 residents, is in trouble. In April of this year, Fitch Ratings downgraded Riverdale’s Issuer Default Rating (IDR) from B‑ to CCC‑, citing reasons such as low margin for servicing obligation, weakened financial profile, negative general fund reserves, very limited liquidity, and deferral of pension spending. With Fitch’s downgrade,Continue reading “The Illinois municipality with the worst bond rating”
Mid-year update on the State Pension System
Illinois pensions remain significantly underfunded, but the trajectory has improved over the last several years due to full statutory payments, supplemental contributions, and strong investment markets. Earlier this year in February, Gov. Pritzker announced a path to full funding by 2048, building on a 2024 multi-tiered pension plan and recent credit upgrades. The administration plansContinue reading “Mid-year update on the State Pension System”
The Rise and Regulation of Prediction Markets
The growing popularity among states to legalize sports gambling has led way to another growing phenomena, prediction markets. These markets—platforms where users trade on the outcome of future events—have transitioned from academic curiosities to a multi-billion dollar industry. The concept of participating in prediction markets is simple: a user pays a sum of money toContinue reading “The Rise and Regulation of Prediction Markets”
U of I Flash Index shows uptick in Illinois economy for May
The University of Illinois’ Flash Index, a measure of the overall performance of the Illinois economy, recently reported an increase after four straight months of decline. The Flash index is “the weighted average of Illinois growth rates in corporate earnings, consumer spending, and personal income as estimated from receipts for corporate income, individual income, andContinue reading “U of I Flash Index shows uptick in Illinois economy for May”
The economics of Chicago’s Italian Beef Sandwich
Italian beef sandwiches have been a staple of Chicago cuisine, but with the popularity of the tv show The Bear it has elevated its presence on the national scene. So much so that there has been a growing appetite within the General Assembly to make it the national sandwich of Illinois. The origin of theContinue reading “The economics of Chicago’s Italian Beef Sandwich”
The Dow turned 130 years old. Here are some Illinois based companies formally part of the Index
The Dow Jones Industrial Average, a price-weighted stock market index tracking 30 large companies listed on U.S. exchanges, turned 130 years old on May 26. Currently, there are no Illinois based companies listed on the Index. However, there have been some notables over the years. Kraft Foods Most Americans grew up recognizing the iconic blue-boxedContinue reading “The Dow turned 130 years old. Here are some Illinois based companies formally part of the Index”
The last time the state of Illinois contributed its rainy day fund
Gov. J.B. Pritzker recently made his annual budget address, in which he touted the improved fiscal condition of the state as well as roughly $1 billion in extra revenue. Some of the highlights include providing financial relief to taxpayers by freezing taxes on gasoline and groceries. This is expected to cost the state $135 millionContinue reading “The last time the state of Illinois contributed its rainy day fund”
Understanding and Analyzing Municipal Real Estate Transfer Taxes
Overview There are three things that are certain in life: birth, death, and taxes. While we don’t like paying them, they play an important role in helping fund public services, like police and fire departments, schools, and garbage collection. They can hit us from all corners, but one area of taxation where people seem toContinue reading “Understanding and Analyzing Municipal Real Estate Transfer Taxes”
Something stinks on Chicago’s Southwest Side
Midway Defective Windows Cause for Concern Residents of Chicago’s Midway area have been couping with the smell of odorous chemicals coming from the installation of soundproof windows procured by Chicago Department of Aviation (CDA). The issue began over ten years ago, when the city of Chicago created the Midway Residential Sound Insulation Program (RSIP) toContinue reading “Something stinks on Chicago’s Southwest Side”
Prairie State Policy 