New FHA Report: Illinois home price growth slowest in nation, Northwest Indiana one of the fastest – Center Square

Illinois home prices, especially in the Chicago area, appreciated at the slowest pace in the nation last year, growing just below the rate of inflation. One of the fastest-growing areas in the nation, according to a new report, was right next door to Illinois.

The in-flow of Chicagoans is one of the key reasons behind the Gary area’s 7.9 percent increase in home prices year-over-year, according to an analysis of home price indices from the third quarter of 2019 by the Federal Housing Finance Agency, higher than all but six areas nationwide.

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Cash-Hungry Cities Seek Buyers for Sewer Systems to Pay Pensions – Bloomberg

Granite City, Illinois, a rust-belt town of 30,000 people on the Mississippi River, is facing a $130.8 million pension shortfall and has put part of its sewer system up for sale to raise funds. I

Alton, Illinois earlier this year sold its wastewater system to Illinois American and used the entire $53.8 million to chip away at its $134 million in pension liabilities. Godfrey, Illinois also sold a system this year that desperately needed upgrades to Illinois America. Mayor Mike McCormick says he’s stashing the money in a rainy day fund.

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Illinois offering low cost cannabis loans – The Telegraph

“When we made equity the core of the state’s new adult-use cannabis market, we wanted to ensure that social equity entrepreneurs had access to capital to get their businesses off the ground, and we’re proud to announce that interested applicants can start this process today,” said Pritzker.

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City Council committee votes to delay sales of legal weed until July 1 – Chicago Sun-Times

“Black Caucus Chairman Jason Ervin (28th) is furious African Americans have ‘zero representation’ among ownership of 11 dispensaries…. The 10 to 9 vote by the City Council’s Committee on Contract Oversight and Equity was a political embarrassment to Mayor Lori Lightfoot, whose administration tried desperately to appease the Black Caucus during negotiations that continued during the meeting.”

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Feds investigating former Cook County Assessor Joe Berrios, records show – Chicago Sun-Times

Former Cook County Assessor Joe Berrios.

A federal grand jury subpoena obtained by the Chicago Sun-Times shows investigators are digging into former Cook County Assessor Joe Berrios and his political organization. The subpoena seeks documents related to Berrios’ 31st Ward Democratic Organization, his Friends of Berrios campaign fund and the Mexican American Political Action Committee.

The subpoena asks for information about contributions to Berrios’ retirement

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Oak Lawn expects to reap at least $500K from ‘penny per push’ video gaming tax, believed to be first of its kind in Illinois – Chicago Tribune

The “push tax,” which is akin to a sin tax on people who gamble in Oak Lawn, will assess users a penny for each push or play of a video gaming terminal beginning Jan. 1.

Existing video gaming regulations impose licensing fees on terminal operators. Oak Lawn charges $1,000 annually per operator and $500 annually per video gaming terminal. But the push tax is unique in that it assesses a tax on individual players.

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Video: Shoplifters walk out of Lincoln Park store with armloads of winter coats – CWB Chicago

“We reported on Oct. 16 that shoplifting reports are up 20% over the past three years in Chicago. Suburban retailers have blamed the increase on a decision by Cook County State’s Attorney Kim Foxx to take a softer approach to shoplifting cases. Foxx has instructed her attorneys to reject felony-level retail theft charges unless a person is accused of stealing more than $1,000 in merchandise at a single event.”

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Editorial: Dorothy Brown and the case of the lying deputy: Voters, you can change this – Chicago Tribune

Not only was Brown the subject of several investigations into her fundraising and hiring practices, she also failed to modernize the office with basic technology despite pledging every campaign cycle to do so. A recent rollout of a computerized upgrade to the criminal court system flopped. Cleaning up that mess and installing a reliable electronic case-management system should be priority No. 1 for the next clerk.

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Lightfoot wants Chicago to grow its own pot in weed co-op – Chicago Sun-Times

Mayor Lori Lightfoot said Monday she is “very serious” about the city growing its own recreational marijuana to give minorities a chance to learn the business and share the wealth and said $15 million generated by tax-increment financing could be used as seed money.

Lightfoot said the concept of the city opening a “cooperative cultivation center” that minorities can “buy into” — either with a “modest cash investment” or with “sweat equity” — is aimed at overcoming the biggest impediment to minority ownership.

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Editorial: When taxpayers trust Springfield … Part 6: A motto for the Fair Tax: ‘Would we ever break a promise to you?’ – Chicago Tribune

“All but the hopelessly gullible can see that this envisioned extra $3 billion a year from the fat cats is just a first grab. The big money is further down the income ladder. Yet Democrats have to keep asking for voters’ trust that they’ll spare the middle class — despite the sorry history that animates this series of editorials: ‘When taxpayers trust Springfield, here’s what happens.'”

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ComEd finally in the spotlight for passing unfair costs on to customers – Crain’s

Between 2013 and 2018, the cost of utility distribution paid for by ComEd customers in Illinois grew by $730 million. That’s a price increase four to seven times more than the average annual rate of inflation for the same period, according to a study commissioned by AARP and conducted by the independent Power Bureau. But all this has gone on without question, thanks to inexplicable backroom deals and masterful public relations spin. Until now.”

The trifecta of an FBI probe, Lightfoot’s standoff and the state House bill could finally be what is needed to force ComEd to come out of

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As Mayor Lightfoot demands answers from ComEd over federal probe, her security chief’s wife lists the utility as a lobbying client – Chicago Tribune

Margaret Houlihan Smith in October added ComEd to her lobbying clients, and listed dozens of city departments she might lobby on the utility’s behalf, including the mayor’s office, according to city records.

The arrangement has raised questions about the kind of information Houlihan Smith might be privy to and the kind of access she could promise. But the mayor’s office said it saw no issues with her security chief, James Smith, being married to a lobbyist for ComEd.

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Should the city of Chicago have to pay $44 million for a shooting involving an off-duty police officer? Federal judges set to rule

Though officials now share the jury’s opinion that Kelly shot LaPorta with his service weapon, the city contends it is not liable for LaPorta’s injuries because Kelly was off duty when it happened. The appellate judges seemed to agree, suggesting it would be unfair to hold police departments responsible for anything and everything their employees do.

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Mayor Lori Lightfoot defends website shaming budget naysayers: ‘Since when is letting voters and residents know how aldermen voted bullying?’ – Chicago Tribune

The mayor’s committee launched the shaming website last week, prompting criticism from aldermen and political observers, including the Sun-Times editorial board, which compared Lightfoot’s move to bullying.

First term Ald. Rossana Rodriguez Sanchez, 33rd, told WTTW-Ch. 11, “We don’t have time to engage in petty discussions or arguments. We have work to do, and that’s what we’re going to do.”

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Commentary: Mayor Lightfoot’s call for ComEd hearings sounds good, but … – Chicago Tribune

“We’re going to call them for some kind of hearing and make them answer some questions in the public about the broader framing of what they were doing, how they were using their shareholders’ dollars, and give us assurances that we can be comfortable doing business with them,” Lightfoot said, according to reports.

As a former federal prosecutor, Lightfoot must know that a public hearing, conducted in the midst of an ongoing federal investigation, may be the last thing U.S. Attorney John Lausch and his colleagues in the Dirksen Federal Building need right now.

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Businesses hit hard by new property tax assessments in the suburbs — but homeowners could catch a break – Chicago Tribune

Initial assessments are in, covering the north and northwest suburbs, and they show valuations for commercial, industrial and larger apartment properties increased by more than 74%, compared with less than 16% for homes, a Tribune analysis found.

The result may be a significant shift in how the property tax burden is divided up — with homeowners paying less and business owners paying more. A Tribune analysis shows that if Kaegi’s initial property values stand, businesses would pick up 44% of the combined

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Failing US Pension System May Need Govt Bailout to Survive – NewsMax

The bottom three (Illinois, Kentucky, and New Jersey) are even more underfunded, dropping from ~50% funding in 2013 down to only ~38% in 2017.

A disturbing fact about the three worst funded state pensions is that they have been receiving more money, yet are more underfunded. According to the report, these states “had an average employer contribution rate of more than 31 percent of payroll in 2017—a 22 percentage point increase since 2007.”

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$1.2M settlement to family of man who died in police custody is ‘hush money’ for gangs, alderman says – Chicago Sun-Times

“What we … just did in the hopes of saving money is told [law-abiding residents] that, when these neighborhood terrorists continue to terrorize their communities and are caught, and if anything happens, we’re willing to pay them hush money to go away. That is unacceptable. We have told these neighborhoods that, ‘You are on your own,’” Lopez said.

“It is disgusting to me as an alderman. It is disgusting to me as a member of the Brighton Park community — and more so as a [resident of] the city of Chicago that we would even consider paying a

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Keeping watch is a tall task – News-Gazette

Adam Andrzejewski just turned 50, but he insists that, although he’s getting older, he’s also getting better.

The goal of Andrzejewski’s organization is to track the money spent by all 50 states and the federal government — “Every dime, On line, In real time” is the organization’s slogan.

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Lightfoot plans to demand end to shut-offs and answers on ComEd lobbying scandal before renewing utility’s franchise agreement – Chicago Sun-Times

The City Council’s Progressive Caucus has demanded any new franchise agreement with ComEd include both a progressive rate structure and an end to shut-offs — not just for those unable to pay, but also for those who refuse to pay.

Lightfoot has already ended water shut-offs, which has cost the city $20 million in water bill revenues. The mayor plans to ask ComEd to get on board.

“All the utilities — whether it’s ComEd, whether it’s Peoples Gas” should end shut-offs, she said. “People are suffering and they’re struggling. And we can tell from the data where

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Chicago Public Schools proposal to close 2 charter schools slammed as ‘racist and irresponsible’ by teachers union – Chicago Tribune

From the beginning, the Chicago Teachers Union was critical of the Chicago Public Schools initiative through which Chicago Virtual Charter School and Frazier Preparatory Academy opened more than a decade ago.

Now the union is calling CPS’ plan to close the two charter schools “an admission of failure by the district after decades of charter proliferation.”

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City of Chicago official hit with felony theft charge – Chicago Sun-Times

A longtime city official who currently works in the Department of Aviation has been hit with a felony theft charge for allegedly making purchases on credit and then claiming he didn’t receive the items he ordered, police said. George Coleman Jr., deputy commissioner for intergovernmental affairs at the Department of Aviation, has been charged with one count of continuing financial crimes enterprise.

 

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Illinois PACE efforts gain traction as first deal closes – The Bond Buyer

The state’s goal of offering commercial Property Assessed Clean Energy program financing as an affordable alternative for energy efficiency, renewable energy, water conservation, resiliency improvements and other green projects initially fell short, spurring additional legislative changes.

The bonds are repaid with local real estate taxes and assessment payments agreed to the property owner and amortized over the useful life of the project that ranges from five to 30 years.

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Illinois’ sports betting not expected until after Super Bowl – Capitol Fax

As part of the state’s $45 billion of capital spending for projects around Illinois, lawmakers approved sports betting. That money will go toward vertical construction projects such as schools. Gov. J.B. Pritzker signed the legislation in late June alongside other measures including doubling the state’s gas tax from 19 cents a gallon to 38 cents a gallon. State Rep. Michael Zalewski, D-Riverside, said Monday that he had hoped to roll out sports betting before the Super Bowl. “I’m starting to get a little more cautious in saying that if we could have someone placing a bet on March Madness, that

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Another day, another example of City Council balking at Lightfoot’s plan to chip away at aldermanic prerogative – Chicago Sun-Times

This time, the point of contention was the mayor’s plan to abolish four tax-increment-financing districts as part of declaring a record $300 million TIF surplus to help balance the city budget and bankroll the new teachers contract.

Three TIFs — Harlem Industrial, Pershing/King and South Works Industrial — were abolished without controversy by the City Council’s Finance Committee.

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Mike Madigan’s ComEd windfall – Crain’s

The company at the center of an expanding federal probe into Springfield lobbying went to unusual lengths to financially ingratiate itself with a key Springfield player, Illinois House Speaker Mike Madigan.

Political insiders and official state disclosure records indicate that Exelon Corp. and its Commonwealth Edison subsidiary for at least the last five years hosted a major autumn Chicago fund-raiser for the speaker, who doubles as chairman of the Illinois Democratic Party.

The events were a “command performance” for ComEd lobbyists, executives, suppliers and others, as one participant put it.

The take: $100,000 or more annually—enough to,

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Universities are smarting over this new tax – Crain’s

The new federal tax applies to any college or university that has at least 500 full-time, tuition-paying students—with more than half of them being in the U.S.—and that has assets, aside from those used for charity, of at least $500,000 per full-time student. U of C, Northwestern and Notre Dame look likely to fall into the taxed category, despite being on the cusp of eligibility, giving them a combined liability of about $30 million.

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The corporate head tax is an idea that just won’t die – Crain’s

If you think the head tax—the per-employee levy repealed in 2014—is dead, think again. And while you’re at it, consider Denver, which progressives hold up as a model. There, people pay for the privilege of having a job.

And Chicago Teachers Union, which supports the tax, responded thusly when columnist Hinz asked for comment: “Greg, you’ve disparaged the CTU and our work for much of the last few months, pushing Chicago Public Schools talking points ad nauseam and going so far as to compare us to big business and Donald Trump. spokesman Ronnie Reese emailed back. So don’t be

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Paris police arrest scores amid strike over pension reform – A.P.

The open-ended walkout by the country’s unions represents the biggest challenge to Macron since the yellow vest movement against economic inequality erupted a year ago.

Opponents fear the changes to how and when workers can retire will threaten the hard-fought French way of life. Macron himself remained “calm and determined” to push it through, according to a top presidential official.

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ComEd scandal claims a major civic victim – Crain’s

In a statement, club Chairman Ed Mazur said he has accepted Jay Doherty’s resignation as president and member of the board.

One source close to the probe into ComEd, which has been subpoenaed for records related to its activities in Springfield, says Doherty had more than 100 people drawing funds that originated with ComEd on his payroll, some in positions that involved little actual work.

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Illinois muni bond banker accepts award at The Bond Buyer’s annual gala – Video

Comment: A description of the muni bond industry that we find (um, how can we say this politely?) novel: “The opportunity to work in this industry with all of you has been extraordinary. The values, the vision of the people in public finance, my colleagues, my clients and, yes even my competitors — we all shared a journey because we want to leave this world a little better than it was…. We are unique as a financials services sector because we actually care about people.”

 

 

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Pritzker backs former Senate Republican leader for ethics commission after mistakenly appointing recent lobbyist – Chicago Sun-Times

Pritzker on Thursday appointed former Illinois Senate Republican Leader Christine Radogno to a newly formed ethics commission.

The governor on Wednesday named his four appointees to the commission, including former state Rep. Steven Andersson. Andersson was one of a dozen Republicans who joined Democrats to vote for a budget and income tax hike in July 2017 over the objections of former Gov. Bruce Rauner.

Andersson, however, was a lobbyist until June 28. The resolution bars anyone who registered or worked as a lobbyist in the previous five years.

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When a ComEd rate cut is actually a rate hike – Crain’s

The commission yesterday approved a $17 million reduction in ComEd’s delivery rates as requested by the utility. In a release, ComEd delivered the good news, saying the average residential customer would see their monthly electric bill decline by 60 cents next year.

But the release didn’t tell the whole story. ComEd’s net rates actually will climb by $33 million next year thanks to a move late last month to boost ComEd’s customer charge by $50 million for the energy-efficiency programs it administers. That Nov. 26 ICC ruling wasn’t the subject of any ComEd press release.

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A decade after recession, Illinois’ construction industry is ice cold – IL Policy

In 2018, Illinois saw 10,000 permits issued for new single-family homes, according to the U.S. Census Bureau. The state averaged around 40,000 permits a year prior to the Great Recession. That 75% plunge is the worst decline of any state in the nation. Indiana, Michigan, Wisconsin and Missouri have all seen more single-family home construction than Illinois for three years running.

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Get Your Priorities In Order, Illinois – Forbes

Which matters more:

Providing the necessary funding for the intellectually disabled to be able to access group homes and day programs after they age out of the public school system?

Or preserving, in the state pension plans, the 3% fixed annual cost-of-living increases, and unreduced retirement as early as age 55*?

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Plummer to Brady: Let’s get ethical – WCIA

Senate Republicans are closely monitoring and mulling over Minority Leader Bill Brady’s reaction to a recent rift that opened up between him and state Senator Jason Plummer over ethics and how forcefully or strategically to confront corruption.

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Tired of waiting for new Chicago police contract, FOP puts demand for 18% pay raise over 3 years to arbitrator – Chicago Sun-Times

Lightfoot agreed to pay striking teachers 16% over five years with staffing increases and other perks that pushed the overall price tag to $1.5 billion amid concern that would become the floor for police officers and firefighters.

Those fears turned out to be wrong.

Rank-and-file police officers won’t be content with simply matching the teachers. Their union is demanding an 18% pay raise over three years.

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Pritzker defends social equity measures in recreational pot bill, tamps down expectations for Jan. 1 launch – Chicago Tribune

“Our goal is not to immediately deliver as much access to recreational cannabis as possible as quickly as possible,” Pritzker said while signing a measure that tweaks the landmark legalization bill he signed in June.

Rather, Pritzker said, the overarching aim of the legalization law is “to address the inequities that have wreaked havoc on many of our communities.”

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FBI agents asking questions about House Speaker Madigan and his political operation, say four people they’ve interviewed – Chicago Tribune

Federal authorities have asked questions about Democratic Illinois House Speaker Michael Madigan and his political operation as part of an ongoing investigation, four people who have been interviewed told the Tribune.

The sources, all of whom requested anonymity, said FBI agents and prosecutors asked about connections between Commonwealth Edison lobbyists and Madigan, lobbyists giving contracts to people tied to the speaker, and city, state and suburban government jobs held by his associates.

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Recreational marijuana in Chicago is coming soon, but aldermen want more minority participation – Chicago Tribune

I’m telling them right now, don’t even talk to me unless you have African American partners,” said Ald. Walter Burnett Jr., 27th. “Don’t waste your time coming to see me. Because I don’t even want to talk to them. Because I think you’re just being racist in my face when you talk to me about this stuff and you don’t allow African Americans to be your partner. It’s ridiculous, man.”

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Illinois families sue TikTok, parent company over data practices – The Hill

Two Illinois children and their mothers sued the social media company TikTok and its parent company on Tuesday for allegedly collecting the personal information of minors without parental consent.

TikTok and ByteDance Technology allegedly tracked, collected, and disclosed information to a third party about the children that used the companies’ Musical.ly app, according to a lawsuit filed in the U.S. District Court for Northern Illinois.

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Cullerton got back-door loan from clouted bank – Chicago Sun-Times

In an unusual transaction, retiring Illinois Senate President John Cullerton obtained a personal loan from a politically connected Chicago bank by using money from his campaign fund as collateral, the Chicago Sun-Times has learned.

The deal allowed Cullerton to sidestep campaign finance disclosure requirements that would have been triggered if he had borrowed or withdrawn the money directly from his campaign fund.

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Straighten up and fly right – Editorial – News-Gazette

Gov. J.B. Pritzker vetoed legislation that would have canceled an estimated $50 million in sales taxes owed by 14 luxury private jet companies doing business in Illinois. That group includes Flightstar in Savoy.

There are several questions surrounding this complicated situation, the biggest being just who’s responsible for what appears to be a costly oversight.

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Chicago’s New Planning Chief Has Fresh Eyes For INVEST South/West – WBEZ

As a part of INVEST South/West, the city pledges to commit $220 million in tax-increment financing dollars, $30 million from the Neighborhood Opportunity Fund along with $500 million in planned infrastructure investments and partnerships with sister city agencies. The city needs to raise an additional $250 million from private companies. BMO bank has pledged $10 million.

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Editorial: Illinois’ corruption eruption: Giving thanks for FBI agents and federal prosecutors – Chicago Tribune

Federal law enforcers have been as busy as most members of the Illinois political class have been unnerved. The extent of the investigations remains unknown. Sweeps and subpoenas don’t automatically translate into indictments or convictions. But the U.S. attorney’s office is charging forward aggressively. For people cheated out of honest chances at jobs and contracts. For taxpayers. For citizens fed up with the stench of greed and corruption that rots a basic trust in government.

For that law enforcement effort we say,

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Senate President John Cullerton set to collect $2M pension – IL Policy

The departure of Senate President John Cullerton, D-Chicago, highlights one example of how pension sweeteners Illinois lawmakers passed decades ago are putting taxpayers on the hook for extravagant benefits today.

Cullerton is set to receive more than $2 million in state pension payments over the course of his retirement, should he live to age 85. He will take home nearly $4.2 million if he lives to age 95, which is $1.3 million more than he would have received without the special sweetener.

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Dorothy Brown’s office debuts upgrade to criminal court computers to wide ridicule – Chicago Tribune

The rollout of a long-awaited upgrade to Cook County courts’ archaic case management system by beleaguered Circuit Court Clerk Dorothy Brown’s office has caused disarray at the county’s main criminal courthouse on Chicago’s Southwest Side.

Attorneys and clerks interviewed by the Tribune since the rollout two weeks ago complained the supposed advancement has instead resulted in incomplete case information, poorly trained staff and lengthy delays in securing the most basic documentation.

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Alderman Says Gangs Have Left At Least 13 Blocks In The Dark In Brighton Park, And Problem Is Getting Worse – CBS Chicago

Walk down the streets in Brighton Park, you can see it for yourself – sliced wires hanging out at the bases of light poles. We found a few in such condition – pulled, broken, clipped.”

Why are they doing it?

“Obviously to be the dark to; do what they want to do – whether it’s driving through the neighborhood trying to shoot people, graffiti, or do other things of that nature,” Lopez said.

“As soon as we can fix it with CDOT, the lights are out the very next day,” he said.

CBS talked to people who live and work

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JIm Dey | Details, schmetails — just pass the pension legislation – News-Gazette

There was much celebration in Springfield two weeks ago after legislators passed a pension consolidation bill that its backers say will help put downstate fire and police municipal pensions on a firmer financial footing.

Gov. J.B. Pritzker called the legislation a “huge bipartisan step” toward “alleviating the enormous property tax burden in downstate and suburban communities.” Pritzker is at least two-thirds right — the vote was bipartisan and it was a step.

But huge? The facts don’t support that claim.

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Commentary: Math scares your child’s elementary school teacher — and that should frighten you – Chicago Tribune

What’s been overlooked is that teaching deep understanding to elementary students requires that teachers have that understanding themselves. Studies consistently show many don’t.

Research also shows that, compared with other college students, future elementary teachers are especially prone to math anxiety — apprehension about doing math that’s so severe it interferes with actually doing it. That anxiety remains once they are in classrooms, and studies show that students learn less math from a math-anxious

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Mayor Lori Lightfoot says alderman doesn’t understand budget because he went on hunting trip during committee hearings – Chicago Tribune

Far South Side Ald. Anthony Beale, 9th, called on Lightfoot last week to delay a vote on the 2020 budget due to concerns over $163 million in ambulance reimbursement payments she’s relying on as a key part of her spending plan for Chicago government.

On Monday, Lightfoot emailed Beale a response saying a delay would be “reckless and irresponsible.” Then she questioned the veteran alderman’s grasp of her proposal, saying his “predictions and statements about the proposed budget … reflect a basic

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Editorial: Illinois lawmakers try to skirt the impact of Janus. Why Gov. Pritzker should say no. – Chicago Tribune

Lawmakers during the fall veto session sent to Gov. J.B. Pritzker legislation that would make it easier for unions to recruit members and harder for employees to know their rights under Janus. Public employers — mostly governments — would be required to provide the names, addresses and contact information of their employees, including personal email addresses and cellphone numbers on file, directly to union bargaining units. If Pritzker signs the bill, he will demonstrate once again who actually runs Illinois state government. It’s not his administration. It’s not the department heads. It’s

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Chicago Treasurer Melissa Conyears-Ervin hired private security using taxpayer funds after CPD found there was no threat. She disagreed, saying people call her ‘the money lady.’ – Chicago Tribune

Chicago Treasurer Melissa Conyears-Ervin listens as her press secretary, Yolanda Joe, speaks during an interview at Conyears-Ervin's office in City Hall on Nov. 21, 2019, in Chicago.

“I cannot tell you how many places I go to where people say, ‘give me a loan, that’s the money lady, can you write me a check?’” Conyears-Ervin said. “People truly associate me with money … I’ve had people, when I walk in the room, they say, ‘Money, money, money — money.’”

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A political game that voters can’t win – Crain’s

At least 19 representatives of the current 118-member Illinois House were not chosen by voters when they first were seated, according to lawmakers’ biographical information on Ballotpedia. In the Illinois Senate, nearly a quarter of the 59-member chamber—14 senators—is filled by people who were appointed, not elected.

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Is Kimberly Lightford the next senate president? – WGN

 

She wants to take on Springfield’s culture of harassment and intimidation.“ There’s a lot of dictatorship in Springfield and it’s a changing and moving environment,” she said. “The culture is a lot different today than it was as it relates to men and women relationships. It’s time for us to have those uncomfortable conversations around relations.”

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A Chicago city income tax could be in our future because other alternatives are worse – Chicago Sun-Times

Comment: This article is a great example of how our press bears some of the responsibility for our fiscal crisis. This author ignored the Rhode Island decision on cutting pensions, which is the only decision on the point about a pension amendment, which he got wrong. Then there’s Ralph Martire, executive director of the Center for Tax and Budget Accountability, saying “it’s a rational thing to do” but only after exploring all other avenues. The author didn’t bother disclosing that CTBA is a union-funded propaganda machine, and quoted nobody else.

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How Are CPS Teachers Getting Post-Strike Makeup Days Off? – CBS Chicago

First, the Chicago Teachers Union demanded more makeup days for time spent on the picket line – and they got some of them, exactly as they wanted.

But now, CBS 2 Political Investigator Dana Kozlov has learned that teachers won’t be at work anyway on many of those days – and the Chicago Public Schools system is scrambling to find substitutes.

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How Lakefront Liberals Became Milwaukee Avenue Progressives – Chicago Magazine

Today, the Near Northwest Side is the heartland of the liberal Noth Side. The Chicago Chapter of the Democratic Socialists of America has its headquarters in Logan Square. In the 2016 Democratic primary, Bernie Sanders’s strongest wards were on the Northwest Side. Three of the City Council’s six democratic socialists represent Northwest Side wards: Daniel LaSpata of the 1st, Rossana Rodriguez Sanchez of the 33rd, and Carlos Ramirez-Rosa of the 35th.

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Dr. Jay Shannon Out As CEO Of Cook County Health – WBEZ

Shannon has partly blamed the rise in uncompensated care on other hospitals that send their uninsured patients his way, especially those who need expensive treatments. In recent months, he’s been vocal about imploring other hospitals to treat more people who don’t have insurance..

Besides facing financial pressures, Shannon has been caught up in a months-long volley with Cook County Inspector General Patrick Blanchard. In June, Blanchard released a damning report that accused Cook County Health’s Medicaid insurance business, called CountyCare, of sitting on nearly $700 million in unpaid bills owed to hospitals and doctors.

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Metro Chicago job growth hits a wall – Crain’s

The data is from the Illinois Department of Employment Security. Unlike most jobs numbers, it is based not on surveys and estimates but on an actual hard count of private-sector jobs covered by unemployment insurance that is considered highly reliable.

According to the report, the total number of jobs in the six-county metro area in the year ended March 31 grew just 1,361, to 3,598,232. That’s not even a tenth of a percent, and far and away is the lowest annual rise since the city and state began recovering from the subprime mortgage recession a decade ago.

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John Kass: Former Chicago FBI chief questions whether local prosecutors have ‘the will’ to take on Illinois corruption – Chicago Tribune

Rob Grant, former special agent in charge of the Chicago FBI:

“I always wondered why, when I was here, why the attorney general of the state of Illinois and other prosecuting officials never tackled the corruption that was so endemic in this area,” Grant said.

“I never got a straight answer,” Grant said. “…But there’s a very low level of desire, it appears to me, in the state of Illinois and in Cook County, to actually take on this particular crime problem in this city and this state and it’s left to the feds to do that job. Part of

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50,000 food stamp recipients in Cook County may have to find jobs starting Jan. 1 — or risk losing their benefits – Chicago Tribune

The change is the result of Cook County’s falling unemployment rate. Illinois, like other states, received waivers for the entire state for many years.

Now Cook County’s unemployment rate is also too low to qualify for the waiver. Last month the Illinois Department of Human Services submitted a waiver request for every county in the state except Cook and DuPage

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Pritzker rejects tying pension, income-tax amendments together – Crain’s

In an appearance at an Economic Club luncheon, Pritzker said he understands why some factions are pushing a “shared sacrifice” approach in which voters next year would vote on two amendments to the Illinois Constitution, one allowing his so-called “fair tax” and the other revamping a clause which locks in current payments for government workers.

But that won’t fly, either fiscally or politically, the Democratic governor asserted.

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Illinois pension costs skyrocketed by 500%, crowding out government services – IL Policy

Since fiscal year 2000, after adjusting for inflation, state spending on education has grown by 21%. State spending on everything from child protection, state police, college aid for low-income students and more has fallen by nearly one-third during that time.

But state spending on pensions for government workers, meanwhile, grew by a whopping 501% – on top of a 127% increase in spending on health care costs for state workers.

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Kim Foxx announces re-election bid — while admitting she didn’t handle Jussie Smollett case ‘well’ – Chicago Sun-Times

Cook County State’s Attorney Kim Foxx.

Foxx had others to blame: “Every day my office is under attack, from a president who uses our city as a punching bag. The NRA, hell bent on letting guns flood our streets. And the FOP, clinging to old ways. They’ll do anything to undercut progress, including attacking me personally over the Jussie Smollett case,” Foxx says.

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Lightfoot agrees to raise aldermanic expense allowance – Chicago Sun-Times

Mayor Lori Lightfoot agreed Monday to raise the annual aldermanic expense — from $97,000 to $122,000 — to appease aldermen demanding more staff for their ward offices and build support for her 2020 budget.

Instead of budgeting $4.85 million for the annual aldermanic expense allowance, the city will spend $6.1 million — about a 26% increase. The additional $1.25 million will come from unspecified spending cuts and revenue increases, officials said, as the City Council’s Budget Committee approved the mayor’s $11.65 billion spending plan.

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Lightfoot’s minimum wage compromise advances, to cheers from restaurant owners – Chicago Sun-Times

Mayor Lori Lightfoot’s plan to raise Chicago’s minimum wage to $15-an-hour by 2021, but maintain a “sub-minimum wage” for tipped workers, cleared a key legislative hurdle on Monday to cheers from restaurant owners.

That’s not good enough to satisfy Ald. Carlos Ramirez-Rosa (35th). He argued again Monday that eliminating the “sub-minimum wage” and phasing in a $15-an-hour wage for all workers was imperative to “reduce workplace sexual harassment” and eradicate a two-tiered system that “leaves black and Latino women in the service industry behind.”

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Lightfoot is killing Emanuel’s Infrastructure Trust – Crain’s

The trust, launched with a flourish at the start of Mayor Rahm Emanuel’s administration, has been criticized for accomplishing little at a snail’s pace and depending on public financing, even though it was created with a goal of freeing taxpayers from the cost and risk of funding big infrastructure projects.

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Downtown rents have companies taking a second look at the burbs – Crain’s

Tenant rep brokers say that widening gap isn’t enough to reverse or stop a suburban-to-urban trend alone, as real estate expenses pale in comparison to labor costs. But with the suburban millennial population expected to grow during the next decade and the rise of telecommuting and co-working allowing more workplace flexibility, the calculus companies are using to decide where they want to call home is changing.

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Cullerton’s complicated exit: disgruntled aide muzzled after money went missing – WCIA

WCIA’s examination of financial documents, interviews with top lieutenants and staff, and an investigation of his private business dealings reveals that behind the scenes, his caucus was devolving into a tailspin and his campaign operation was already in tatters.

Whichever of the 39 other Democratic senators should replace him in January will inherit a thorny tangle of ethical and legal headaches, as at least three sitting members of the caucus are either facing federal indictment, under investigation, or wiring up for the FBI.

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Editorial: Who will bear the burden of CTU’s generous new contract? Take a guess – Chicago Tribune

Chicago Teachers Union officials earlier this year said the costs of a new contract would come from “rich people,” casino gambling, legalized marijuana and sports betting. Nope. Those revenues won’t cover the 16% pay raises and other promises. Money expected to be generated, eventually, from gambling and cannabis legalization would flow to the city budget, not the schools.

The burden will be borne by rank-and-file middle-class taxpayers and property owners. Same as it ever was in Illinois.

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Ralph Martire: At last, Illinois finds pension answer beyond cutting benefits – Daily Herald

Comment: Oh, please, Ralph. The pensions covered by the new consolidation law discussed here represent only about 4.5% of our pension problems. The sponsors never offered a shred of analysis proving the claimed savings. Though this consolidation step is sensible in concept, the General Assembly mucked it up with other problems. See our own article on that linked here.

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Editorial: Illinois’ corruption scandals complicate the Democrats’ tax push – Chicago Tribune

Against this sorry backdrop — the certainty of ever more tax gouges, the worsening corruption eruption — Gov. J.B. Pritzker and his fellow Democrats want voters to approve their open-ended amendment to enable graduated income taxes. Higher tax rates would hit big earners first. What lawmakers refuse to admit publicly — just try asking them — is that they’ll next raise rates on middle-class taxpayers, too. That’s where the real money is.

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Successor to former state Rep. Luis Arroyo chosen, but one Cook County Democrat says ‘the fix is in’ – Chicago Sun-Times

Setting the stage for a potential battle with one of the state’s most powerful Democrats, a Northwest Side alderman and three other Democratic committeemen on Friday picked a successor for former state Rep. Luis Arroyo.

They did so with the use of Arroyo’s proxy votes — though he faces federal bribery charges, Arroyo remains the 36th Ward committeeman. That led another Democratic committeeman to leave the meeting, declaring “the fix is in.”

Arroyo didn’t attend, but 30th Ward Ald. Ariel Reboyras cast his own weighted vote and Arroyo’s proxy. In the end, Eva-Dina Delgado, an assistant to

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Chicagoans favor bankruptcy over taxes as city’s debt continues to mount – Chicago City Wire

Conducted by Ogden & Fry on behalf of the Illinois Opportunity Project, pollsters found 36 percent of respondents favor bankruptcy, compared to 21 percent of those in favor of raising taxes as a way of trying to tackle the deficit. Of the 534 respondents that were randomly selected from a pool of 2020 general election voters earlier this month, 42.7 percent were undecided on the issue.

 

 

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Illinois Senate passes public safety pension consolidation plan, giving Gov. J.B. Pritzker a big fall session win – Chicago Tribune

Comment: What’s “big” about it? The pensions covered represent just 4.5% of our pension unfunded liabilities. Actual savings are speculative, but in any event will barely move the needle. And there’s this astonishing comment from a lawmaker: “We’re finally doing what Illinois is supposed to do, which is get ahead of these issues before it becomes a crisis,” said Sen. Linda Holmes, an Aurora Democrat.

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Lightfoot says Uber offered black ministers $54M to get her to ‘back off’ fee hike — which Uber disputes – Chicago Sun-Times

Mayor Lori Lightfoot on Wednesday shot down an alternative congestion fee floated by Uber and accused the ride-hailing giant of offering black ministers $54 million to carry the ride-hailing giant’s water.

Lightfoot dropped the political bombshell at a City Hall news conference when asked about the tax plan that, Uber claims, would raise $21 million more than Lightfoot’s congestion fee in part because it would apply to taxis as well as ride-hailing.

“Is this the one where they’re paying off black ministers by $54 million? That one? Or is this a new one?” the mayor said.

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Mayor proposes wage hike for tipped workers – Crain’s

Mayor Lori Lightfoot has introduced her proposal to raise the city’s minimum wage to $15 by 2021 and boost base wages for tipped workers—but not to the full $15 that some employee advocates were hoping for.

Her proposal would boost the city’s minimum wage for businesses with 21 or more employees to $14 per hour on July 1, 2020, and $15 one year later. Those wages also would apply to the city’s sister agencies like the park district and Chicago Transit Authority and would rise with inflation. For those with fewer than 21 employees, wages would climb more slowly, rising

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Gov. J.B. Pritzker’s municipal pension consolidation plan hits a snag – Chicago Tribune

Illinois Municipal League Executive Director Brad Cole contends the amendment would shut out municipal governments from intervening in benefit allocation proceedings at the local level. In cases where benefits are abused, that could lead to a greater burden on their budgets and taxpayers, he said. Cole called language that was introduced Monday a “midnight provision that penalizes the taxpayer, the person we’re trying to support.” He said he communicated his stance to Pritzker earlier Tuesday that he described as “unwavering.”

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Ex-Chicago city official moonlighted for red-light camera contractor that’s part of federal probe – Chicago Sun-Times

Bill Helm — a $125,000-a-year deputy aviation commissioner — also was a paid sales representative for SafeSpeed, LLC, while on the city payroll, the records show.

SafeSpeed paid Helm, who’d held the city aviation post since 2014, a commission on red-light tickets written in Matteson and also Glendale Heights, the records show.

SafeSpeed and Helm have been named in federal search warrants and subpoenas served on several southwest suburbs and on the offices of state Sen. Martin Sandoval, D-Chicago

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Editorial: Mayor Lori Lightfoot’s showdown with Illinois lawmakers: Will they help or balk? – Chicago Tribune

Chicago Mayor Lori Lightfoot is about to learn a lesson in state political dynamics. If she’s counting on Springfield to help balance her 2020 budget, she’d better have a Plan B. And probably a Plan C. Weeks ago, Lightfoot might not have predicted that her “asks” of Springfield would confront so much resistance. She often has said Chicago is the “economic engine” of the state, warranting the attention of all legislators. But that’s part of the lesson in governing here. Little consideration gets granted in Springfield without the counter question, “What’s in it for me?”

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ComEd ‘Shadow Lobbying’ Portfolio Filled With Clouted Contractors, Hires – WBEZ

ComEd’s lobbying and contracting practices are now central to a wide-ranging federal criminal investigation into whether the power company hired politically connected employees and contractors in exchange for favorable government actions, including rate hikes.

A WBEZ analysis of federal regulatory filings found dozens of companies and individuals who’ve been on ComEd’s payroll and are connected to political A-listers like House Speaker Michael Madigan and indicted Chicago Ald. Ed Burke.

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Editorial: Watch out, Cook County land bank. The public could foreclose — on you. – Chicago Tribune

A bungle like approving the Corliss Avenue deal can cause public support to flag. The deal never should have happened. Not only should the county probe what happened in that case, it should conduct a deeper dive into the agency to see if any other too-cozy deals have escaped scrutiny. And it should set in place reforms that ensure public trust in the land bank doesn’t get undermined again.

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Chicago teachers’ abuse of sick days should leave us all feeling ill – Chicago Sun-Times

Lots of Chicago teachers call in sick when they are not sick. Just because they can. That sad fact lies behind a little noticed provision in the teachers’ new tentative contract. The teachers will be allowed to accumulate as many as 244 sick days, which they can put toward an earlier retirement with a full pension. Some teachers will be able to retire about a year and half early.

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Party over for Burke and Arroyo? Democrats ask criminally charged ward bosses to hit the bricks – Chicago Sun-Times

Leaders of the Cook County Democratic Party on Monday voted unanimously to ask former state Rep. Luis Arroyo to step down from its ranks Monday — and will be sending a letter to indicted 14th Ward Ald. Ed Burke requesting he do the same.

Democrats hadn’t previously asked Burke or Solis to hit the road, although the chair of the party, Cook County Board President Toni Preckwinkle, had asked Burke to step down from his party post in January when Burke was first hit with federal charges.

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Bribery charge against ex-state Rep. Luis Arroyo brings fresh scrutiny to sweepstakes machines, raises questions about potential for abuse as gambling expands – Chicago Tribune

Chicago Democrat Luis Arroyo, who resigned from the Illinois House on Friday after being charged with bribery Monday, is alleged to have offered kickbacks to an unnamed senator in exchange for the veteran lawmaker’s support for legislation that would regulate and tax so-called sweepstakes machines.

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Will Donald Trump upset Lori Lightfoot’s budget? – Chicago Sun-Times

“Ka-ching, k-not.”

Included in Lightfoot’s massive city budget expectation is $163 million federal dollars in ambulance service reimbursements based on the feds rewriting a section of the Medicaid formula. Political insiders are betting the ranch the Trump administration will nix the cash by turning a thumbs-down to approval of the formula rewrite by the U.S. Department of Human Services. Why? It’s pretty obvious this president, who is consistently bashing Chicago, doesn’t forget slights.

And Lightfoot’s decision not to greet Trump at the airport Monday, his first trip to Chicago since his 2016 election, probably stung. As a

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New teachers contract to cost $1.5 billion over 5 years. Where will CPS get the money? – Chicago Sun-Times

Jesse Sharkey and Vice President Stacy Davis Gates sloughed off concerns about how a school system that has borrowed to the hilt can afford such a generous contract:

“So to hear this discussion arise about, ‘Oh, my God. It’s gonna cost too much money.’ No. quite frankly, it should be costing a lot more money.”

Pressed on where the money should come from, Davis Gates said, “Rich people. Reinstate the corporate head tax.

“[Lightfoot] has an opportunity to expand the tax base to include those who can pay more. She should do that,” Davis Gates said.

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A Proposition 30 Explainer – Hoover Inst.

Comment: Yes, high taxes do cause flight and other behavioral responses, as this study shows, as if that weren’t obvious to Illinoisans. “Our results therefore predict that as of today, California is on the wrong side of the so-called Laffer Curve. That is, the only way that state authorities can reasonable increase revenues relative to what they would be without further policy action is to cut tax rates.”

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Jussie Smollett case might soon blow up on Kim Foxx again – Chicago Sun-Times

Is there a whiff of something out of whack here? Former Smollett press adviser Rosen co-hosting a dinner for Tchen, whose involvement in the Smollett case raised heavy eyebrows? Former White House insiders tell Sneed Tchen and Jarrett are not only this/close and chummy on the Tinseltown scene, but they got to know Foxx as a frequent visitor at Hollywood fundraising events.

Smollett’s Chicago case, which still sparks of outrage in Chicago, is now in the hands of special prosecutor/mega legal eagle Dan K. Webb.

Will Webb discover a few former White House spoons were used to

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Berrios in-law pushes to legalize sweepstakes machines while running PAC tied to Madigan – Chicago Sun-Times

James T. Weiss — a son-in-law of Joseph Berrios, the former Cook County Democratic Party chairman and county assessor — owns and operates sweepstakes machines. Weiss also runs the Alliance of Illinois Taxpayers, which has raised hundreds of thousands of dollars, largely from personal injury law firms allied with Madigan. Other donors include individuals with ties to Madigan’s political organization.

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The $1.5 billion question: How will Chicago pay for Lightfoot’s CTU deal? – Crain’s

That’s the five-year, high end estimate from the CPS budget office. “The union won the strike. They absolutely won,” says Paul Vallas, a former CPS CEO who was one of Lightfoot’s rivals in the February mayoral election. “It’s going to be impossible for them to come up with that much dough without major tax increases if (Gov. J.B.) Pritzker does not fully fund the state’s new school-aid formula.”

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Joseph Berrios’ son-in-law and a fired former Chicago cop emerge as key figures in federal probe of state Rep. Luis Arroyo – Chicago Tribune

State Rep. Luis Arroyo’s foray into the shady world of sweepstakes machines is at the center of the federal bribery case alleging he agreed to pay off a state senator in exchange for support on legislation that would benefit the largely unregulated industry. Now other players linked to the alleged scheme are emerging, including businessman James Weiss, the son-in-law of former Cook County assessor and county Democratic Party boss Joseph Berrios, and an ex-Chicago cop who was fired for consorting with a drug trafficker, the Chicago Tribune has confirmed through state records and a source with

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The Union Routs Students in Chicago – Wall Street Journal

Estimated cost to follow, but you can bet it will be expensive. The agreement also includes new job protections for substitute teachers who going forward may only be removed after conferring with the union about “performance deficiencies.” Chicago Public Schools will become a “sanctuary district,” meaning school officials won’t be allowed to cooperate with the Immigration and Customs Enforcement without a court order. Employees will also be allowed 10 unpaid days for personal immigration matters.

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Teachers strike is over, but Lightfoot faces political fallout – Analysis – Chicago Sun-Times

Having boxed herself in with an education platform that reads like the CTU playbook, Lightfoot had no choice but to essentially give away the store to a teachers union that backed her opponent, County Board President Toni Preckwinkle.

In a desperate attempt to honor her “not-on-my-watch” promise to avoid a teachers strike, she quickly agreed to a 14% pay raise over five years, then upped the ante to 16%, matching the recommendation of an independent fact-finder.

The strategy violated Negotiations 101: When facing a difficult adversary, hold something back. Give yourself room to maneuver.

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Fight over real estate transfer tax could zap some city neighborhoods – Crain’s

Comment: With the higher transfer taxes not even approved yet, progressives are already proposing expanding the scope of the tax increase to homes valued at just $500k. “The plan from Rep. Will Guzzardi, D-Chicago, could spark a bit of a homeowners’ revolt on much of the North Side and other sections of the city where property values are relatively high. They could end up paying hundreds of dollars more in taxes on the sales of even rather ordinary houses and condominiums,” says Crain’s

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Another federal probe of Exelon: This time, it’s the SEC – Crain’s

Exelon disclosed that the agency notified the company on Oct. 22 of an investigation it had opened into Exelon and ComEd’s “lobbying activities,” according to the company’s quarterly filing today with the SEC.

The U.S. Attorney’s office in Chicago also is probing the lobbying practices of the two companies in Illinois. Exelon revealed in mid-July that it had received that subpoena.

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Chicago Fed Board Chairwoman Pramaggiore Steps Down Amid Probe of Former Employer – Wall Street Journal

The Chicago Fed said that Ms. Pramaggiore stepped down from her position on Oct. 25. Ms. Pramaggiore abruptly retired on Oct. 15 from her job as chief executive of the utilities unit of Exelon Corp., the largest operator of nuclear plants in the U.S., less than a week after the company said it had received a second grand-jury subpoena from federal prosecutors looking into its lobbying activities in Illinois.

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Chart: Recreational cannabis stores will be few and far between in Illinois – Marijuana Business Daily

Recreational cannabis sales are set to begin in Illinois at the start of the new year, but a lack of retail stores threatens to curtail the rollout of what could eventually be a $2.5 billion market.

Illinois has taken a restrictive approach to licensing adult-use businesses in general, and – combined with the ability of local governments to ban marijuana businesses – a lack of access to retail stores could persist indefinitely.

That would leave room for black-market operators to serve consumers.

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Distracted driving lawsuit against the city gets stronger – Chicago Sun-Times

In August 2015, Chicago quietly shifted distracted driving tickets from administrative hearings to Traffic Court after being advised by its own attorneys that motorists caught talking on cellphones and texting behind the wheel were being denied due process.

Why, then, did City Hall continue to collect $3.2 million in fines from motorists whose tickets issued before then were “illegally” routed to administrative hearing officers and use those citations to suspend drivers licenses, deny permits and prohibit city employment for two more years?

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Foxx Budget Would Expand To Take On Burge Torture Cases – WBEZ

The proposed FY2020 budget for the prosecutor’s office calls for adding 10 new positions to the unit that handles wrongful conviction claims, like the ones tied to Burge.

In total, the budget calls for about 22 new positions in the prosecutor’s office, including new positions to help with expungements based on the new Illinois law legalizing marijuana.

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Arroyo arrest illustrates pitfalls of lawmaker-lobbyists – Chicago Sun-Times

If this were a normal state with reasonable expectations and standards for the ethical conduct of public officials, the first reaction to the news of state Rep. Luis Arroyo’s arrest might have been:

What do you mean the state legislator was acting as a lobbyist on the side? How could that be legal?

Unfortunately, in Illinois, it IS legal for an elected official to be a paid lobbyist, as long as they aren’t lobbying the same branch of government they were elected to represent.

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Among about 3,100 U.S. counties, Lake ranks fifth in the damage done to future home values as a result of the cap on property tax deductions enacted two years ago. – Crain’s

Cook County isn’t far behind, though among Chicago’s metro-area counties it’s taking the smallest hit. That’s in large part because Cook County has the smallest proportion of homes whose property tax bills are over $10,000, the new limit for deducting state and local taxes on federal filings.

Of nearly 3,100 U.S. counties, Lake County ranks fifth for lost home value in the wake of the tax law changes, according to a list compiled by Mark Zandi, chief economist of Moody’s Analytics and published earlier this month by ProPublica. Cook County ranks

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Feds allege state Rep. Luis Arroyo caught on undercover recording paying $2,500 bribe. ‘This is the jackpot.’ – Chicago Tribune

The 13-page criminal complaint, made public Monday, revealed that the state senator allegedly targeted by Arroyo first began cooperating with the FBI in 2016 but was terminated as a confidential source after it was revealed he had filed false income tax returns. The senator later agreed to cooperate with the FBI again in the hopes of winning a break at sentencing on expected tax fraud charges, according to the complaint.

The senator was not named in the complaint, but a source identified

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New challenge to union power brewing in wake of Janus ruling – Fox News

The Supreme Court ruled in the case of Janus v. AFSCME that unions could not extract what’s called an “agency fee” from non-members who happened to work in the same place a union had “exclusive representation” rights. But one group argues that in saying it was unconstitutional to force people to fund labor unions’ speech with their own money, the high court also indicated that the legitimacy of “exclusive representation” itself could be up for debate.

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Column: Trump’s Chicago visit proves too tantalizing for striking CTU to pass up. School was out anyway, right? – Chicago Tribune

Chicago teachers remained on strike Monday, freezing 300,000 students out of crucial instructional time. Why? The reasons are growing, but they aren’t about pay or working conditions.

The latest reason: President Donald Trump visited Chicago to speak to police chiefs before heading to a ritzy fundraiser hosted by Chicago Cubs co-owner Todd Ricketts. No way could Chicago Teachers Union leaders miss out on the opportunity to protest Trump and a 1-percenter, together, on the same day. That was a double aphrodisiac

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Aldermen demand to know Lightfoot’s Plan B – Chicago Sun-Times

Aldermen from across the city demanded to know how a budget that makes a series of rosy assumptions will be balanced in the event that Lightfoot doesn’t get what she wants?

What if the Illinois General Assembly fails to authorize a graduated real estate transfer tax and a casino gambling fix during its abbreviated fall veto session?

What if the federal government refuses to sign off on the $163 million windfall that the mayor assumes she’ll get by increasing ambulance fees paid by private insurers and from reimbursements administered by the state for ambulance transports for low-income

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Lightfoot’s 2020 budget requires $60 million pension reimbursement from CPS – Chicago Sun-Times

At a time when union leaders claim another $38 million could end the teachers strike, Mayor Lori Lightfoot’s 2020 budget requires the Chicago Public Schools to reimburse the city for $60 million in pension contributions previously covered by City Hall. The historic about-face is buried in the mayor’s budget overview. It states, “In 2020, an additional $60 million is expected from Chicago Public Schools to cover a portion of its share of the city’s annual contribution to the Municipal Employees’ Annuity and Benefit Fund.”

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Southwest suburbs that feds visited use insurance broker where Madigan’s son is an exec – Chicago Sun – Times

Alliant/Mesirow Insurance Services and company executive Andrew Madigan — neither of which has been accused of any crime — add an intriguing link to people federal authorities appear to be interested in.

Among them: Cook County Commissioner Jeff Tobolski, who doubles as the mayor of McCook and whose office was raided Sept. 26. McCook village records show Tobolski invited Andrew Madigan in 2011 “to submit a proposal” to help secure liability coverage.

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Road map to riches — or ruin? – Chicago Sun-Times

Eager developers are now painting rosy images of vast new entertainment complexes — ones that are now allowed to break ground on land without any aquatic pretenses — costing hundreds of millions of dollars in this latest gaming growth, which Pritzker is banking on to help fund his signature $45 billion capital plan for statewide construction projects.

<img loading="lazy" decoding="async" class="aligncenter" src="https://cdn.vox-cdn.com/thumbor/NSK98OZ5NHBWGLdSjpElN1pX0uI=/0x0:1024x517/1200x800/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg" sizes="(min-width: 1221px) 846px, (min-width: 880px) calc(100vw - 334px), 100vw" srcset="https://cdn.vox-cdn.com/thumbor/l0FJqMw_dFP_sqzP4zy95NIanvA=/0x0:1024x517/320x213/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 320w, https://cdn.vox-cdn.com/thumbor/haJbkSspvGDKZYjvmZDqvYjNFQE=/0x0:1024x517/620x413/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 620w, https://cdn.vox-cdn.com/thumbor/k7j4QhYhTXoAul74N2RlfxdnCiM=/0x0:1024x517/920x613/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 920w, https://cdn.vox-cdn.com/thumbor/XEDV4z1MFEtZy1BIFEqjgVPiBgo=/0x0:1024x517/1220x813/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 1220w, https://cdn.vox-cdn.com/thumbor/gwGXpmnpqICz9LyaDKpQYHgV790=/0x0:1024x517/1520x1013/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 1520w, https://cdn.vox-cdn.com/thumbor/Dlidr1vWOyNDbGEfHq64N4SXhAI=/0x0:1024x517/1820x1213/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 1820w, https://cdn.vox-cdn.com/thumbor/UmKNgXSrGMs-trDGb1cOVBHbO7I=/0x0:1024x517/2120x1413/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 2120w, https://cdn.vox-cdn.com/thumbor/cRdoQNFi-FqwIfnfFGDUQLVPNJg=/0x0:1024x517/2420x1613/filters:focal(446x145:608x307)/cdn.vox-cdn.com/uploads/chorus_image/image/65556760/CASINO_GAMBLE.0.jpg 2420w" alt=" Illinois’ first authorized casino riverboat, the Alton Belle Casino" width="233" height="155"

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Chicago Fed Board Chief Can Continue After Exit From Private Sector Firm Under Investigation – Wall Street Journal

The chairwoman of the board of directors of the Federal Reserve Bank of Chicago can continue in that role while her former employer is the subject of a federal probe, the regional Fed bank said.

Anne Pramaggiore abruptly retired Oct. 15 from her job as chief executive of the utilities unit of Exelon Corp. , the largest operator of nuclear plants in the U.S., less than a week after Exelon Corp. said it had received a second grand-jury subpoena from federal prosecutors looking into its lobbying activities in Illinois.

Ms. Pramaggiore has served on the

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Mayor Tobolski’s ‘boys club’ came courtesy of McCook taxpayers – Chicago Sun-Times

By Pippenburg’s account, Tobolski used the taxpayer-subsidized dining spot, Alta Grill, as his private hangout, often staying past closing time to drink with pals while running up tabs he sometimes didn’t pay. Tobolski regularly went behind the bar to pour himself a drink or wandered into the kitchen to order up items not on the menu — and insisted the restaurant always be prepared to serve him his favorite dish: grilled octopus, she said.

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From Woke to Broke – National Review

Lightfoot has discovered that there is no limit to the appetite of the constituencies generated by government spending. She has learned that the special interests bargaining for higher benefits also desire policies that make such benefits unattainable.

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Editorial: Why Chicago teachers won’t take ‘yes’ for an answer – Chicago Tribune

Here’s what should infuriate Chicagoans: This strike is about power and relevancy for leaders of the Chicago Teachers Union. It always has been….

Additionally, CTU keeps pushing for a three-year deal, even though Lightfoot’s offer of a five-year contract would protect teachers from the potential damage of a recession and rising health care costs. But CTU, being CTU, wants the shorter contract.

Why? To maintain its relevancy. To guarantee that it has leverage during and after the 2023 mayoral election.

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Community Organizers Work to Save Trees Targeted by Obama – Wall Street Journal

Next week former President Barack Obama’s eponymous foundation is hosting a summit meeting to promote its planned Obama Presidential Center in Chicago’s historic Jackson Park. But a hardy band of conservationists, determined to save local birds and trees from the designs of our nation’s 44th President, is planning a Friday court filing and a weekend protest. The Obama tree removals have not yet been scheduled. But once they are scheduled, he believes as many as 500 trees could be doomed by the Obama plan, counting land for the center and related transportation projects.

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Chicago to raise cloud-computing tax – Crain’s

The city’s tech companies are going to feel the pain of Mayor Lori Lightfoot’s first budget.

Lightfoot’s budget proposes to boost the city’s tax on cloud-computing services, which was wildly unpopular when it was instituted in 2015, is going up to 7.25 percent from 5.25 percent.

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Trustees continue fighting over pension in Maine Township – Chicago Tribune

In-fighting among members of the Maine Township Board continued this week as elected officials resumed their dispute over the assessor’s interest in receiving a municipal pension.

The voting members of the board argued with and shouted at each other during a lengthy meeting. At the heart of Tuesday’s disagreement was a desire by three of the five elected officials to appeal the latest determination by the Illinois Municipal Retirement Fund Board that Township Assessor Susan Moylan Krey is pension-eligible.

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Brazil Congress passes landmark overhaul of pension system – A.P.

The most meaningful change sets a minimum retirement age of 65 for men and 62 for women. That’s up from averages of 56 and 53, according to the Organization for Economic Co-operation and Development, a club of nations whose populations on average retire at about 66.

The overhaul also introduces progressive brackets for contribution amounts as well as limits for survivor benefits and includes a period for transition to the new system.

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J.B. Pritzker 8th most unpopular governor in the country, poll says – Chicago Sun-Times

A Morning Consult poll found his favorability at 44%, with the latest poll clocking him at 43%. His disapproval rating has grown from 35% earlier this year to 42%. Unsurprisingly, the disapproval is coming from Republicans, who watched the political newcomer rush in a bevy of progressive measures, including his push for a graduated income tax question on the 2020 ballot. Of those polled, 14% said they were undecided.

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California’s Tax-the-Rich Boomerang – WSJ

Democrats in California have raised taxes on the rich again and again, and liberals claim it has no effect on taxpayer migration and does no harm to state tax revenue. A new study finds the opposite. In sum, the study estimates that outward migration and taxpayer behavioral responses erased 45.2% of the expected revenue gains from the tax hike on top earners.

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Chicago’s new budget summary graphic

Comment: $538 in spending cuts and savings, $352 million of new taxes and $52 million in additional programs and spending. Keep in mind this is a cash budget only that does not include accruing debts, especially for pensions, which continue to be funded less than tread-water amounts, so the unfunded liabilities will continue to grow.

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Lightfoot to declare $300 million TIF surplus — largest in Chicago history – Chicago Sun-Times

Mayor Lori Lightfoot’s 2020 budget includes a $300 million tax-increment-financing surplus — the largest in Chicago history — just to help bankroll the $500 million offer the striking Chicago Teachers Union has already rejected, a top mayoral aide said Wednesday.

By closing out five TIF’s and scouring all of the others, Lightfoot has managed to generate $163 million for Chicago Public Schools. That’s $66 million more than the school system received last year.

The city will get $31 million of that new money to help defray its $838 million budget gap.

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Commentary: Most teachers in CPS strike never benefit from pensions that strangle the system — and taxpayers. There’s a better way. – Chicago Tribune

On average, to earn a full pension, a teacher must remain in the same state or district for 25 years — a condition that less than half of teachers nationally will meet. In Illinois, where the vesting period for the pension system is 10 years of employment, only half of new teachers will ever vest in the system. And only 1 out of 5 teachers in Illinois will ever break even from their pension plan.

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Chicago Investors Want Mayor to Bolster Finances Beyond 2020 – Bloomberg

Investors want comprehensive plans that set up the city for more revenue and lower costs going forward. Chicago’s fiscal woes don’t end in 2020. The city is struggling with $30 billion of unfunded pension liabilities. And its required payments to the cash-strapped retirement system ramp up this year and keep climbing, topping $2 billion in 2022, city documents show.

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Elizabeth Warren’s ill-timed insult to Chicago’s new mayor – Crain’s

Her goal: To curry favor with progressives and organized labor by intervening in a teachers strike she really doesn’t know much about, intervening against Lightfoot—an African-American woman and a progressive herself who understands (in a way Warren doesn’t) that driving Chicago Public Schools back to near-bankruptcy will only harm the city’s children.

Warren seemed oblivious to that.

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Attorney General Raoul defends state from Trump – 1IL

Attorney General Kwame Raoul addresses the City Club of Chicago Monday at the Union League Club. (One Illinois/Ted Cox)

Calling it “perhaps the most important time to be a state attorney general,” Kwame Raoul said Monday that he is confronting the Trump administration on several issues critical to Illinois residents.

“We perceive the urgency of this moment,” Raoul said in explaining his actions taken in concert with other attorneys general against what they regard as overreaching federal initiatives. “When the

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Lightfoot to shift $750 million to South and West sides – Crain’s

Lightfoot accounced that the city would realign “more than $750 million in public funding over the next three years” toward 10 neighborhoods on the city’s South and West sides as part of the INVEST South/West program.

That money will come from $250 million in existing pools: tax increment financing (TIF), the Small Business Improvement Fund (SBIF), and the Neighborhood Opportunity Fund; plus $500 million in already planned infrastructure improvements around transportation, housing and “quality of life enhancements.”

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Lightfoot moves to hike Chicago restaurant taxes – Crain’s

A few hours after unveiling a $40 million tax on rides from Uber, Lyft and other ride-sharing firms, Lightfoot’s office confirmed that she’ll also seek a $20 million new tax on restaurants. The quarter-percentage-point levy would apply to all food and beverages sold at retail establishments. Combined with levies by other governments including Cook County and the Metropolitan Pier & Exposition Authority, the tax on restaurant bills would rise to as much as 11.75 percent.

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Sen. Martin Sandoval’s daughter took in more than $52,000 during failed County Board bid from people and companies later named in federal corruption probe – Chicago Tribune

A Chicago Tribune review of the campaign fund created for Angie Sandoval’s unsuccessful Cook County Board candidacy shows that more than a dozen of her donors — individuals and companies — were named in federal search warrants executed in September at Sen. Sandoval’s Capitol office and the village halls in west suburban McCook and Lyons. Both towns are in Sandoval’s Senate district.

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Chicago Teachers Union leader on city lawyer strike comments: ‘Rich white men tell black women … in CPS what to do all the time’ – Chicago Tribune

A CPS lawyer sent a note asking union leaders to spend more time in negotiations and less at rallies prompted got an angry response from the union vice president.

“Rich white men tell black women with children in the Chicago Public Schools what to do all the time,” Vice President Stacy Davis Gates said.

She also complained attributed her misspelled name to racism and sexism:

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George Will: No Will on Pension Reform – BuryPensions

“[T]he nation’s most ominous governance problem is the unsustainable trajectory of the entitlement state because of the unfunded promises that have been made regarding pensions and medical care. Everyone understands what must be done: a mixture of increases of taxes and reductions of promised benefits. Everyone also knows that there is insufficient political will for either part of this remedy.”

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Commentary: Dennis Byrne witnessed the genesis of the Illinois Exodus. Now he’s joining it: ‘Fed up. I’m gone.’ – Chicago Tribune

There are as many reasons for leaving as there are people fleeing, the weather not being the least of them. But little is to be done about Chicago’s weather. Unlike how the city and state have been ravaged. By the greedy, incompetent and power-hungry. By the boodlers, gonifs and crooks who fancy themselves as the feudal lords and we their vassals. By public employee unions that have turned the idea of “public service” into a joke on the taxpayers, who, in fact, have become the public servants. By voters whose party loyalties, ideologies and self-serving have made Chicago not just

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Mike Madigan’s troubles a boon to lawyers — legal bills exceed $1.5 million – Chicago Sun-Times

House Speaker Mike Madigan dipped into his campaign funds for more than $418,597 in legal fees over the past three months, bringing the total he has spent on lawyers since last year to more than $1.5 million.

The Southwest Side Democrat’s legal headaches heated up in February 2018 amid allegations made by political consultant Alaina Hampton that one of Madigan’s longtime political aides sent her barrages of unwanted texts.

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After 98 years in Chicago, Midland Metal Products moves to Hammond without ‘looking back’ -NWI Times

“We consider everybody who works for us, no matter nationality, race, sex or interest, to be family,” she said. “I think that’s what made us successful.” Midland Metal Products President Marcus McDonald said the company “desperately needed a new location” in order to continue to deliver products on time and at the right price to customers. He said the company faced too much uncertainty about its costs in Illinois. “This location and this facility were the perfect solution,” he said.

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John Kass: Taxpayers and the Chicago teachers’ contract, a tale of two cities – Chicago Tribune

People don’t always connect the dots between the contracts that have to be negotiated for teachers, police, and fire, and their property tax bills says Ted Dabrowski. “But their tax bills keep going up. People are leaving. And you’re not actually helping teachers, police and fire if we’re heading toward bankruptcy. Rather than helping the system, we’re making it more top-heavy, and it will collapse on itself.”

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Pritzker halts sale of land for Tinley Park horse track casino after Tribune investigation – Chicago Tribune

Heidner’s plans had been cut short Tuesday morning by a terse letter from Gov. J.B. Pritzker’s administration informing Tinley Park officials that the piece of state-owned land Heidner needed for his “racino” project no longer was for sale. The letter came days after a Tribune investigation detailed Heidner’s longstanding business relationships with a banking family whose financial involvement with mob figures helped sink a Rosemont casino, as well as a convicted bookie.

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Cook County officials say pension board’s proposed fix would cost an extra $267 million – Crain’s

A proposed permanent fix from Cook County’s Pension Fund board would cost $267 million more than expected and would achieve full funding only a few years earlier, Toni Preckwinkle’s CFO says. In draft legislation, the pension fund proposed the county make a $588 million payment in 2022, $650 million in 2023 and $717 million in 2024—about $267 million more than the county was planning on.

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