One of the most important concepts in public pension finance is Normal Cost—the annual cost of benefits earned by employees in a given year. Understanding Normal Cost, both for employees and for the State of Illinois as the employer, is essential for evaluating the sustainability of the pension system. What is Normal Cost? For theContinue reading “The Role of Normal Cost in Stabilizing Illinois’ Pension System”
Category Archives: Public Management
How would a Public Infrastructure Trust work?
The 2008 parking meter lease remains one of Chicago’s most debated fiscal decisions — widely regarded as a raw deal that traded long‑term public revenue for short‑term budget relief. Facing severe financial strain at the time, the City of Chicago agreed to lease its parking meters for 75 years to Chicago Parking Meters LLC inContinue reading “How would a Public Infrastructure Trust work?”
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”
Hello NITA, Goodbye RTA
The Illinois General Assembly has adjourned from the Spring Legislative Session and one of the newest governmental entities that was created is the Northern Illinois Transit Authority (NITA). Established under Public Act 104-0457, the NITA replaces the Regional Transportation Authority (RTA) beginning on September 1st, 2026, and will oversee the three main transit entities – Continue reading “Hello NITA, Goodbye RTA”
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”
What reassigning CPD’s tactical officers to patrol districts means
A recent letter from Alderman Marty Quinn of the 13th Ward called for Superintendent Brown, head of the Chicago Police Department (CPD), to reverse the decision in which tactical officers would be reassigned to beat cars. This piece explains what that means. Since 1994, Chicago Alternative Policing Strategy (CAPS) has been implemented in which communities, theContinue reading “What reassigning CPD’s tactical officers to patrol districts means”
Legislative Look: Amending Illinois’ Open Meetings Act
One bill on deck this legislative session is amending the Open Meetings At. The Open Meetings Act (OMA) ensures that public body meetings are open and held publicly. This allows for a more transparent government for the people, as deliberations within the public body can be observed by the general public. Public Act (P.A.) 101-0640Continue reading “Legislative Look: Amending Illinois’ Open Meetings Act”
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”
Crime will continue to be the definitive local issue in 2022
By: Christopher Ryan Crisanti Crime has probably been the hyperlocal, defining issue of 2021 and with no signs of the numbers decreasing, it seems like this trend will continue in 2022. Prairie State Policy has published a few pieces as it relates to crime. One particularly notable piece illustrated where homicides occur in the cityContinue reading “Crime will continue to be the definitive local issue in 2022”
Prairie State Policy 