Dive into the hidden world of government finance and the rising influence of Artificial Intelligence in this thought-provoking webinar hosted by Truth in Accounting. This session unpacks how opaque financial reporting, emerging AI technologies, and real-world cases of mismanagement converge to impact taxpayers, public trust, and the future of democratic accountability.

The Chicago government derives its power from the consent of the governed, making it essential for officials to report their actions and results in a truthful and understandable manner. And because official government reports are often complex and misleading, Truth in Accounting (TIA) provides this transparent, citizen-friendly research and report just in time for the 2026 annual budget debate, which must be signed into law by December 31st, 2025. This is Truth in Accounting’s 11th annual Financial State of Chicago report. This report analyzes the fiscal health of our nation’s third-largest city based on its 2024 Annual Comprehensive Financial Reports (ACFRs).

In the world of finance, timeliness isn't just a courtesy—it's a cornerstone of trust, accountability, and informed decision-making. Yet, when it comes to state governments, this principle seems optional. Truth in Accounting's (TIA) sixteenth annual Financial State of the States report, released in September 2025, shines a harsh light on this issue. 

In August 2025, Illinois Governor JB Pritzker signed legislation boosting pensions for Chicago police and firefighters, a move projected to cost the city $11 billion over 30 years. Despite warnings from Chicago’s Chief Financial Officer about the “devastating” financial impact and a police pension fund that is currently funded below 20%, the state pressed forward. 

State pension plans, particularly those for public employees like teachers, firefighters, and government workers, are subject to various federal regulations, including IRS rules and other federal laws, to ensure compliance with tax, nondiscrimination, and retirement benefit standards. These rules apply because state pensions often receive tax advantages (e.g., tax-deferred contributions) and may opt out of Social Security; therefore, they must align with federal standards to maintain their tax-qualified status or avoid penalties. Below are detailed examples of how state pensions fall under IRS rules and other federal regulations, with a focus on key provisions and their implications.

The retirement benefits landscape is complex, but one federal law stands out for its role in regulating private-sector pensions: the Employee Retirement Income Security Act (ERISA). Enacted in 1974, ERISA introduced accountability, transparency, and worker protections. 
 

States face a significant loss of federal dollars as temporary pandemic-related programs that were initiated in 2020 come to an end and national fiscal pressures rise.

Paying off the obligations the state of Michigan owes public retirees and others would require each taxpayer to surrender another $4,100 to the public treasury, according to a new report from a nonprofit that analyzes state budgets. The report also warns that Michigan’s budget could face an 8% shortfall if the federal government were to reduce its financial support of Michigan to its pre-pandemic level.

llinois taxpayers in 2024 owed an average of $38,800 each, ranking No. 3 in the U.S. Illinois earned an “F” for fiscal management.

Dear teachers who light the spark of curiosity in young minds, firefighters who charge into the inferno to save strangers, police officers who stand as sentinels in the night, and all you public sector warriors who stitch the fabric of our communities together – this is for you.