Civic Federation’s Post

Civic Federation President Joe Ferguson has offered some great wisdom on the current fiscal challenges facing the City of Chicago and the Chicago Public Schools. We must look clearly at the facts and create long-term sustainable revenues and reduce the cost structure to address the significant gaps both of these local governments face. The Civic Federation is here, as it as been for more than a century, to provide facts for a rational debate. From the Civic Federation's newsletter: It is long past time for everyone — interested parties and the public alike — to begin the hard conversations we have long deferred. We cannot revert to unsustainable fiscal practices CPS has engaged in the past — including using scoop and toss and draining reserves during the State budget impasse in Springfield in 2016-17, and shorting pension contributions — to name a few. But those conversations will not be successful without all the facts being on the table in the public-facing way needed to force the parties to account for the consequences (i.e., costs and program impacts) of their practices and demands. The Civic Federation staff is working to set that table in two ways. First, with an analytical report that will bring CPS’ holistic financial situation into full public light. Second, and simultaneously, with a City Budget Roadmap report to be released ahead of the fast-approaching City budget cycle. The broad objective of both is to inform and elevate understanding, recalibrate narratives, and prioritize the debate to better align with the sobering realities.    For those who wonder whether there is anything adversarial in the endeavor, know that while we do not always get all the information needed, there is a high degree of collaboration and mutual respect in the process. As evidence of that, the programming for the Civic Federation’s September Board meeting will be a conversation with the City’s Budget Director and Chief Financial Officer.    So, into the breach we go. Together.

🚨 BREAKING: New York's proposed $245.8 billion budget focuses on making the state more affordable for families, supporting education, health, and critical investments. Here's a snapshot of what the plan includes: 🔹 Tax Relief: Earned Income Tax Credit expansion, STAR Tax Rebate Credit, sales tax holidays. 🔹 Wages: 3.2% cost of living adjustment across human services agencies. 🔹 Education: $36.4 billion for Public Schools, rejection of Executive's proposals on Foundation Aid. 🔹 Higher Education: Investments in SUNY and CUNY, Tuition Assistance Program enhancements. 🔹 Health: $3.1 billion for Medicaid, $1.1 billion in public health investments. 🔹 Housing: $500 million for NYCHA, critical funding for rental and homeownership assistance. 🔹 Childcare: $500 million for Child Care Provider Wage Enhancements. 🔹 Transportation: Investments in State Road and Bridge program, MTA support. 🔹 Safety Net: Investments in nutrition support, antipoverty programs, and combatting gun violence. 💭 Let's keep an eye on how these budget allocations impact New Yorkers and the state's overall well-being. #NYBudget #InvestingInOurFuture 🌟 https://lnkd.in/ejimMnCX

📉 **Pittsburgh's Financial Crisis Deepens: What Business Owners Need to Know** 📉 The Pennsylvania Supreme Court's recent rejection of the "jock tax" proposed by Pittsburgh has significant implications for the city's financial landscape and its public services. Here are the key takeaways: 1. **Revenue Shortfall:** The jock tax was expected to generate $8 million annually. Its rejection means Pittsburgh now faces a significant budget deficit. 2. **Impact on Public Services:** Essential services like transportation, parks, and emergency services may face cutbacks, affecting the quality of life for residents. 3. **Credit Rating Concerns:** The city's credit rating could suffer, leading to higher borrowing costs and complicating future financial planning. 4. **Tax Burden on Residents and Businesses:** To fill the revenue gap, the city might increase taxes on residents and local businesses or reduce services. 5. **Deterrent to Investments:** Financial instability could deter new businesses from investing in Pittsburgh, hampering economic growth and development. **Legal and Logistical Challenges:** - **Constitutionality:** The tax was deemed unconstitutional, violating the Commerce Clause of the U.S. Constitution. - **Equity and Fairness:** Targeting professional athletes was seen as unfair, raising concerns about the tax's broader implications. - **Implementation Issues:** The logistics of collecting the tax posed significant administrative challenges. **Steps Forward for Pittsburgh:** 1. **Budget Reevaluation:** Trim non-essential expenditures to match the new budget constraints. 2. **State Assistance:** Seek additional funding or grants from the state government. 3. **Private Investment:** Foster a business-friendly environment to attract new investments. 4. **Public-Private Partnerships:** Collaborate with private entities on essential projects. 5. **New Revenue Streams:** Explore innovative income sources like tourism or entertainment taxes. The court's ruling has left Pittsburgh scrambling for alternative revenue sources, making it crucial for business owners and high-net-worth individuals to stay informed and plan accordingly. For personalized tax-saving strategies tailored to your unique financial situation, connect with the experts at Together CFO. **Set up a call** by visiting **[https://lnkd.in/gv9k3qy4. 🔍 Let's discuss how you can navigate these changes and optimize your tax savings! 💼

In the face of nascent fiscal challenges, the governors of Arizona, California, Maryland, and Massachusetts recently turned to a similar strategy to bring state budgets back into balance: They have sought to spend less on state employees. In taking these actions, the governors are following a well-worn script. When states face budget challenges, one of the first things they typically do is to try to limit state head counts and personnel spending. But if more states face new budget problems—later this year or in the future—there are good reasons to doubt that this strategy will achieve the same savings it has in the past. That’s primarily because many are already allocating a significantly smaller share of their budgets toward salaries and wages. With that in mind, state leaders should regularly update their budget-balancing playbooks to ensure that they can close budget gaps quickly—and with the least disruption possible to residents and public services. Learn more from Josh Goodman, who works on The Pew Charitable Trusts' state fiscal policy project, here:

**Comparing Trump and Harris' Child Tax Credit Plans: Key Takeaways for Business Owners** With the 2024 elections approaching, understanding the differing Child Tax Credit plans from Donald Trump and Kamala Harris is essential for savvy financial planning. Here’s a breakdown of their proposals: **Donald Trump's Plan** 1. **Increased Credit Amount:** Proposes raising the credit from $2,000 to $2,500 per child. 2. **Expanded Eligibility:** Higher income thresholds to include more middle-income families. 3. **Temporary Enhancements:** Aimed at mitigating the economic impact of COVID-19. 4. **Increased Refundable Portion:** More benefits for low-income families. **Kamala Harris' Plan** 1. **Significant Credit Increase:** Up to $3,600 per child under 6, and $3,000 for children aged 6-17. 2. **Monthly Payments:** Provides consistent financial support throughout the year. 3. **Extended Age Limit:** Benefits families with older children. 4. **Permanent Changes:** Ensures long-term financial stability. 5. **Fully Refundable:** Maximizes benefits for the lowest earners. **Implications for Business Owners** 1. **Immediate Relief:** Trump's plan can offer immediate financial relief, relevant for those concerned with short-term economic recovery. 2. **Long-term Stability:** Harris' plan provides consistent support, making it potentially beneficial for long-term business planning, especially in industries relying on consumer stability. 3. **Employee Well-being:** Understanding these plans can help business owners support their employees better, potentially improving employee satisfaction and retention. **Next Steps** Want to learn how to optimize your tax savings and align them with your business goals? **[Set up a call with Together CFO](https://lnkd.in/gAa4dwUG today and discover strategies tailored to your needs. Engage with us in the comments: Which plan do you think aligns better with your financial goals and why? #TaxSavings #FinancialPlanning #ChildTaxCredit #BusinessOwners #TogetherCFO

LAUSD Budget Outlook Improves, But Financial Challenges Remain California’s revenue is declining, but Los Angeles Unified leaders are cautiously optimistic about the district’s immediate financial outlook. The district plans to restore previously restricted funding to individual schools following the governor’s latest budget proposal. What changed: District finance staff pointed to several factors that improved the district’s finances, including more state funding for cost of living adjustments, increased attendance and administrative cost-cutting. Altogether that nets $136 million more than previously expected. Ongoing challenges: However, the district still faces a growing budget deficit. California school funding is tied to enrollment and fewer students are attending LAUSD — and the majority of districts in the state — every year. “What we're doing now is quickly doing something to make things better, and I'm supportive of that completely,” said Board President Jackie Goldberg. “But it's not the solution. It doesn't tell us where we need to go.” Response from labor: Thousands of educators and support staff rallied outside the board of education meeting last week to protest expected cuts to individual schools. “They're moving in the right direction, but you know, we are not negotiating with them,” said Service Employees International United Local 99 Executive Director Max Arias. “We are demanding absolutely no cuts next year.” 🔗 https://bit.ly/4bEnnrb ✍️ Mariana Dale 📸 Julie Leopo/LAist

Last week, Governor Newsom presented a 2024-25 Budget Proposal which underscores notable budget challenges for California in the year ahead. Here is what Newsom included in the budget that relates to our work at UWBA: Housing Justice: We are optimistic to see a continued focus on accountability in state housing proposals, the budget maintains its multi-year commitments of $3.3 billion for Homeless, Housing, Assistance & Prevention Grants (HHAP); as well as $2.8 billion for Project Homekey.. Financial Stability: Governor Newsom’s commitment to targeted tax credits for families with low incomes remains a nation-leading investment, and we enthusiastically look forward to what more we can do as a state to bolster programs that put cash into household budgets. Basic Needs: We are thrilled that Governor Newsom specifically highlighted the impact of the state’s continued commitment to refundable tax credits like the California Earned Income Tax Credit and the Young Child Tax Credit as critical to our state’s “economic dominance.” We only have to look at the decrease in child poverty rates due to the temporarily expanded federal Child Tax Credit during the Pandemic — and conversely the negative results of its expiration — to understand the direct critical benefit investments in tax credits make for California’s families. Visit https://okt.to/9GYyOo to learn more about the budget from Peter Manzo, President and CEO of United Ways of California. #TheWorkUWBA #PublicPolicy

Governor Murphy budget highlights credit NJBIZ Notable toplines of the proposed FY 2025 plan include: $6.1 billion projected surplus More than $2 billion in funding to continue the ANCHOR property tax relief program Expansion of Senior Freeze and $200 million to pre-fund the StayNJ property tax relief program Fully funding the S2 school formula, making Murphy the first governor to do so, as well as marking the single-largest investment in the state’s K-12 schools with $11.7 billion altogether for public education A fourth consecutive full pension payment with a proposed $7.16 billion contribution for FY25 A series of initiatives to address critical workforce needs $120 million to finish the State Police Training Center $70 million to support state parks (from Debt Defeasance and Prevention Fund) $21 million to convert veterans’ home rooms to single occupancy A suite of initiatives to advance the AI moonshot and build upon the forthcoming AI Hub at Princeton University Continued support for programs such as the Main Street Recovery Funds, Manufacturing Initiatives and Strategic Innovation Center, altogether bringing the total investment to the trio to more than half a billion dollars over the last five years $40 million in state matching funds for electric grid modernization work And much more https://lnkd.in/g6CRW3n3

Florida Gov. Ron DeSantis announced his proposed budget for the 2024-2025 fiscal year for the state. According to the Office of Governor Ron DeSantis, the proposed budget totals $114.4 billion. Governor Ron DeSantis was applaud for proposing strategic investments that build upon Florida’s blueprint for economic success in the Fiscal Year 2024-25 Focus on Florida’s Future Budget. Please find below 2 articles about Governor's budget 👇 https://lnkd.in/e2jKeFeT https://lnkd.in/e3suUhBw

🎭 Let’s Talk Fiscal “Magic Tricks” in Government and Life! 🎩 Imagine you received a windfall of cash and decided to “solve” your personal debt by simply shifting your credit card bill due date from the end of one month to the next. Sounds ingenious? Well, that’s pretty much what’s happening in California’s budget management under Governor Newsom. Five years ago, Newsom criticized a budgeting “gimmick” his predecessor used to reduce a deficit—simply delaying state worker payroll by one day, from the end of June to the start of July, essentially pushing the expense into the next fiscal year. Fast forward, and not only has this tactic returned to the playbook, but it’s being used even when there’s no economic crisis to blame. Here’s the kicker: Newsom himself said, “If I use it in six years, in a recession, forgive me.” Yet, here we are, using old tricks to make historic deficits disappear… on paper. Of the supposed $17.3 billion in budget reductions, only $3.6 billion are actual cuts. The rest? A cocktail of borrowing, delaying, and drawing from rainy day funds. If we pulled this in our personal lives—delaying payments, borrowing to cover essential expenses, and using savings meant for real emergencies—we’d probably spiral into a financial disaster. Yet somehow, it’s a sanctioned strategy in government. 🤷♂️ https://lnkd.in/gZf-Psb9 #Finance #GovernmentSpending #BudgetManagement