Chicago News

  • Members of the Illinois Transportation Trade Association (ITTA), the lobbying arm of the city’s taxi-industry, are meeting privately with the Mayor’s staff today to discuss an ordinance that would impose stricter regulations on ride-hailing companies like Uber and Lyft–a move that could signal the administration is warming up to the plan after months of opposition.

    Business Affairs and Consumer Protection Commissioner Maria Guerra LapacekMara Georges, who represents ITTA, members of AFSCME and Communities United are all expected to attend the private meeting, sources tell Aldertrack.

    Since Ald. Anthony Beale (9) introduced an ordinance in March that would impose stricter regulations on ride-hailing companies, more than 30 aldermen have signed on as co-sponsors, including powerful Finance Chairman Ed Burke (14), who during the council budget meetings last fall noted that multi-billion-dollar company Uber isn’t paying its fair share in city taxes.

    Ald. Beale’s ordinance doesn’t deal with taxes. But it would require all Lyft, Uber and other drivers who work for ride-hailing apps apply for a full-time chauffeur's license, which comes with added fees for background checks and fingerprinting. At least 5% of all ride-share cars would have to be wheelchair accessible with the same pricing and response times as the rest of the fleet, under the ordinance.

    Those are two provisions the taxi-industry believes are non-negotiable. A source close to the ongoing negotiations over Ald. Beale’s ordinance said the taxi industry refuses to decrease safety standards or regulations on the city’s yellow taxi industry as a way to create more parity among the two industries.

    Earlier this spring, cabbies and other taxi industry officials told aldermen that due to their decision last fall to open the city’s airports, McCormick Place and Navy Pier to Uber and Lyft drivers, the yellow cab industry is teetering on the verge of bankruptcy and medallions are plummeting in value. ITTA filed a lawsuit against the city alleging that differing regulations for cabbies and Uber violates federal equal protection laws, which could put the city on the hook for a massive payout. That lawsuit could also be the reason for the meeting, the source said.

  • Two massive redevelopments for the Illinois Medical District got the thumbs up from nearly all County commissioners at Tuesday’s Finance Committee meeting. Together, the redevelopment plan includes the demolition of three Cook County Health and Hospitals System (CCHHS) buildings dating back to as early as the 1930s, and the total rehab of the century-old County Hospital and its surrounding area.

    By 2028, according to county plans, the area will feature a new CCHHS building for administrative offices and outpatient facilities, a restored hospital building, and a new hotel, housing, retail, pocket parks, and infrastructure. The two ordinances are up for full board consideration today.

    The two plans have been hailed by Board President Toni Preckwinkle as a way to “create a state-of-the-art medical campus adjacent to a vibrant, mixed-use community.” The new CCHHS building has an estimated cost of $118 million, and will be paid by a bond issuance expected to go out in the fall, County CFO Ivan Samstein said. The old hospital redevelopment will be funded by Civic Health Development Group, which will invest roughly $600 million in the project. The county will be responsible for up to $5 million to clean up the site. Construction on both projects is scheduled to begin in 2017.

    Comm. Larry Suffredin called the old CCHHS structures slated for demolition–Fantus, Polk, and Hektoen–”terrible buildings” he was glad to see go. Comm. Peter Silvestri said a visit to Fantus years ago was like walking through a clinic in a third world country, and said the county would need to invest a significant amount of money to meet the high patient expectations for a modern healthcare facility. “Everybody wants an omelet but nobody wants to break an egg,” Silvestri said of the $118 million bond issuance. “If we want this omelet... we have to spend.”

    Nearly all hailed the site redevelopment as a new gateway to the West Side. But for more than an hour before the near-unanimous approval, commissioners heard public testimony from West Side activists who said the plans didn’t go far enough to address unemployment and a lack of affordable housing.

    Kia Giles, an activist wearing a bright green Westside Health Authority shirt, gave some of the most impassioned testimony of the day. “It has been 90 shootings, 17 homicides just this month… nothing stops a bullet but a job. We’re not playing, we’re hurting for real. If it hasn’t affected your family, believe it, it’s coming. Regardless of what race you come, this is a plague that’s slowly killing all of us.”

    "Too often, tax payer money in the form of subsidies and tax breaks maximize gains for private investors without any benefit to the communities from which they profit," a statement from The Westside Community Benefits Coalition read. "Throughout the city of Chicago, private development in low-income areas has led to gentrification and displacement of the most vulnerable residents."

    Shortly before the committee hearing, Comm. Richard Boykin held a press conference aimed at delaying a vote on the redevelopment. He said commissioners should prioritize spending on immediate violence prevention and job creation, and called for passage of his Community Stabilization and Anti-Violence Act.

    Later, at the committee hearing, he faced off in a tense back and forth with defenders of the plan. Jessica Caffrey, the county’s Director of Real Estate Management, told him the county had worked with stakeholders to create a community benefits agreement that would prioritize jobs for local workers as part of the redevelopment. The agreement, in part, mandated roughly seven percent of the construction jobs be filled by residents within a three mile radius of the site. She said the project would create 3,200 construction jobs and 2,600 permanent jobs.

    “How for the life of me can anybody agree to this? This is ludicrous,” Boykin said, calling the agreement a “sham.” He later said the Chicago Cook Workforce Partnership is a “horrible organization,” and blasted the project for not prioritizing jobs for Austin residents living in the 29th and 37th Wards. 

    Commissioners fired back at Boykin. “We need to be very honest with everyone who has sat in or listened to the conversation today: this is not a jobs program for everyone,” Comm. Jesus “Chuy” Garcia, said. He was seated next to Boykin, but did not speak directly to him. “This is a construction program in its essence. This will go to people with jobs in building and trades. Do they exclude a lot of people? Yes. We’ve been raising that issue for decades… This project is not a save-all of the West Side.” Garcia said the West Side organizations who testified had not contacted him on the issue. “I didn’t receive one phone call, one letter, one email. No one came to visit me at my district office [on the South West Side] or here at Cook County. Why not?”

    “Good job, Chuy,” Comm. Suffredin told him. Others, like Comm. Deborah Sims, and Finance Chair John Daley echoed Garcia. Boykin asked for a roll call he ultimately lost.

    Roll Call: 

    Yes - Arroyo, Butler, Gainer, Garcia, Gosselin, Morrison, Silvestri, Sims, Suffredin, Daley
    No - Boykin
    Absent - Fritchey, Moore, Murphy, Schneider, Steele, Tobolski

  • Cook County Commissioners will consider a $334 million bond deal; a proposed gas tax to fund a youth jobs program and new county disability office; and a series of “clean up” tax clarifications proposed by Board President Toni Preckwinkle this morning, ahead of the full Board of Commissioners meeting later today.

    Bonds - An ordinance authorizing up to $375 million in general obligation bonds was introduced by President Preckwinkle last month that “would permit the refunding of approximately $330 million of Series 2006A Bonds, which currently are subject to an average interest cost of 4.83%,” the President’s Office said. “The Refunding Bonds that would be issued are anticipated to have a blended cost of capital below 4%." The move is expected to provide $20 million in reduced interest cost savings.

    The senior managers of the deal are Loop Capital Markets LLC and Barclays Capital Inc. Co-senior managers are Siebert Brandford Shank & Co. LLC and William Blair & Co. LLC. Chapman and Cutler LLP and Burke Burns & Pinelli Ltd. are co-bond counsel, co-disclosure counsel will be Katten Muchin Rosenman LLP and Reyes Kurson Ltd., Nixon Peabody is pension counsel and Charity & Associates is underwriter’s counsel.

    Gas Tax - Cook County Commissioner Richard Boykin’s plan to tack an extra four-cent tax when county residents pay at the pump is also up for committee consideration, though county insiders say passage is highly unlikely. 

    Revenues from the gas tax would go toward a new County Jobs Council, Parenting to Prevent Violence Initiative, Office for People with Disabilities, and Community Policing Initiative, plus $45 million would go toward a youth jobs programs that would start in 2017. Boykin has held a number of press conferences and events with West Side pastors and activists since introducing the legislative package laying out those initiatives, the Community Stabilization and Anti-Violence Act (CSAVA), on April 4. He said the legislation is “designed to decrease violence, increase economic opportunity and keep our most vulnerable citizens from falling through the cracks.” He has also asked each commissioner to forego $10,000 from his or her $85,000 salary to help fund 80 youth summer jobs.

    Commissioners will also vote on a series of clarifications to the County tax code:

    • Use Tax: Changes reporting requirements for those paying directly to the department, and record-keeping.
    • Amusement Tax: amends the definition of maximum capacity at places of amusement such as stadiums and theaters.
    • Cigarette Tax: several changes, including expiration, concealment, or improper stamping of tax stickers on packages of cigarettes; mandated monthly returns for wholesale tobacco dealers or cigarette manufacturers; and changes to penalties for things like mutilated packs and hindering inspection
  • The City Council’s Committee on Transportation and Public Way meets today at 11:00 a.m. to consider the appointment of Rev. Johnny L. Miller to the the Chicago Transit Board, the governing arm of the Chicago Transit Authority.

    It’s one of the few city board positions that are compensated. Members receive a $25,000 yearly stipend to attend monthly board meetings where they are asked to consider and approve construction and concession contracts as well as intergovernmental agreements with various city and state agencies. Seven members serve on the Chicago Transit Board: four are appointed by the mayor, three by the Governor.

    Miller, a pastor at the Mt. Vernon Baptist Church in the city’s East Garfield Park neighborhood, also served as a member of the Chicago Police Board. He was appointed by Mayor Daley and re-appointed by Mayor Emanuel in 2011. He was replaced by Rev. Michael Eaddy, pastor of the People’s Church of the Harvest Church of God, in February of 2014.

    Mayor Emanuel recommended Miller to succeed the late Rev. Charles E. Robinson on the Transit Board. Robinson was also a West Side pastor. If approved by the full City Council, Miller’s term would expire September 1, 2021.
  • Mayor Rahm Emanuel speaks at a press conference on January 13, 2016. Mayor Rahm Emanuel speaks at a press conference on January 13, 2016.

    On December 9, 2015, in a rare early morning speech to the City Council after protests against police brutality had engulfed the city, a teary-eyed Mayor Rahm Emanuel addressed growing demands for police reform, saying, “We can either be defined by what we failed to do or what we choose to do.”

    “We have to be honest with ourselves about this issue,” Mayor Emanuel told a packed City Council Chamber ahead of the last Council meeting of 2015. “Each time when we confronted it in the past, Chicago only went far enough to clear our consciences so we could move on.”

  • Former 4th Ward Alderman Will Burns will be promoting his new employer, home-sharing company Airbnb, at a special talk today on the industry’s rapid growth in Chicago and the impact of several City Council ordinances to regulate the industry.

    Burns, who vacated his seat on the City Council earlier this year to accept a job with Airbnb as a Director, Midwest Policy and Senior Advisor, will join the founders of 1871, the city’s largest tech incubator, at Merchandise Mart this morning.

    According to the summary of the event, Burns is expected to tout the company’s positive impact on the city’s economy. Airbnb’s growth in Chicago has grown exponentially since the platform first extended its operations to Chicago in 2009. Airbnb did an analysis of their economic impact in Chicago, from July 2014 to June 2015, that found 165,800 guests used their platform to find a place to stay. Over that same period, 4,550 Chicagoans rented out their homes. According to Airbnb maps tracking rentals in Chicago, most are along the lake and on the city’s North Side.

    Burns’ move to Airbnb and his talk today comes as the City Council is expected to consider competing proposals to regulate the industry. Mayor Rahm Emanuelsupports one of those plans, although it has gone nowhere since he introduced it in January. In its original form, the plan would impose a 2% surcharge on vacation rentals and shared housing units, bringing in an estimated $1 million in revenue for affordable housing. Mayor Emanuel has since warmed up to the idea of doubling that surcharge to 4% to allocate an additional $1 million in estimated revenue to reducing the city’s homeless population, according to the Chicago Tribune.

    The following month, Aldermen Anthony Napolitano (41), Pat O’Connor (40) and Marge Laurino (39), all of whom represent heavily residential neighborhoods on the city’s Northwest Side, co-sponsored a similar ordinance. The main difference: Chicagoans living in residentially zoned areas would be prohibited from putting their homes or flats on Airbnb for rental.

    Five other aldermen signed onto a third proposal introduced in March that is focused more on bed-and-breakfasts. Under the ordinance, anyone who knowingly operated this type of establishment in the last two years without a proper license would be prohibited from applying for the license in the future. The city defines bed-and-breakfast establishments as, “any owner-occupied single family residential building, an owner occupied, multiple-family dwelling building, or an owner-occupied condominium, townhouse or cooperative, in which 11 or fewer sleeping rooms are available for rent or for hire for transient occupancy by registered guests.” That ordinance is co-sponsored by Ald. Brian Hopkins (2), Ald. Proco "Joe" Moreno(1), Ald. Pat Dowell (3), Ald. Michele Smith (43), and Ald. Tom Tunney (44).

  • Cook County Commissioner Peter Silvestri has distributed a communication to fellow commissioners asking them to sign on to a resolution aimed at Springfield, “petitioning the state legislature and the governor to change the position of Cook County Circuit Court Clerk from an elected one to an appointed one.” Silvestri reached out to colleagues May 6, and he intends to introduce a resolution on the issue at the May 11th Board of Commissioners meeting.

    The current clerk, Dorothy Brown, recently made headlines for requesting a pay hike for her position, which Board President Toni Preckwinkle flat out denied. Brown won her party’s nomination for re-election earlier this year despite a federal investigation into her office and Cook County Democrats pulling their endorsement. In a letter addressed to the Board of Commissioners and President Preckwinkle, Brown said her $105,000 salary “is significantly less than ALL of the other Cook County Public Safety officials [Public Defender, State's Attorney, Sheriff, and Chief Judge], two of which have fewer employees.”

    Brown cited two male Clerks of Court in neighboring DuPage and Lake Counties, who earn more but manage fewer employees, which "possibly, speaks to the old adage of women having to do double the work, and these cases, 6.5 times the work, and receive less pay," her letter reads.

    In March, Preckwinkle asked all departments to cut back on personnel spending by 0.5% and non-personnel by 3%, effective until the end of the fiscal year on November 30, in part to fill a hole left by the lack of a state budget. Silvestri was traveling yesterday and could not respond to Aldertrack’s request for comment, but did tell the Sun-Times he was opposed to a raise for Brown or other elected officials. Commissioners make $85,000 a year.

  • Kicking off at 9:30 this morning, Cook County Commissioners are scheduled for back to back committee meetings to vote on millions in contracts, including new Cook County Health and Hospitals System (CCHHS) construction, the revamp of the old Cook County Hospital building, and the establishment of an animal abuse registry: 

    Labor Committee

    A new economic package for county pharmacists and pharmacy technicians, including wage hikes and health care, is the only item on the Labor Committee agenda. The collective bargaining agreement is effective through November 30, 2017, and was negotiated by the Cook County Pharmacy Association, Chicago Joint Board, Retail, Wholesale & Department Store Union, AFL-CIO, CLC (RWDSU Local 200).  

    Asset Management Committee

    Commissioners will vote on a series of county construction contracts totaling $89 million in the Asset Management Committee today. Construction mega-firm F.H. Paschen was listed in several winning contracts totaling about a third of the total allocation, including as part of joint ventures.

    Law Enforcement Committee

    Commissioner John Fritchey’s ordinance creating a County-wide animal abuser registry is up in Law Enforcement Committee this morning. It creates a registry of animal abusers that will be maintained on the Sheriff’s Department website. No shelter, pet shop, pet seller, or rescue organization would be able to transfer ownership of any animal to someone listed on the offender list, or someone living with an abuser. “It would operate much like the sex offender registry, requiring anyone convicted of any form of animal abuse - including dog fighting, animal torture and aggravated cruelty - to register their names and addresses with the Animal Abuser Registry,” a release from Fritchey’s office says.

    Failure to register would result in a fine up to $2,000 dollars. The ordinance would take effect November 1, 2016. Comm. Fritchey has been a frequent critic of the County’s Animal Control agency.

    Finance Committee

    Commissioners will get details on the proposed massive redevelopment and remediation of the old Cook County Hospital building at County Finance Committee today, as well as a $112 million contract with Clayco for construction of a new CCHHS administrative building, and demolition of three others.

    The new nine-story, 282,000 square foot ambulatory and administrative office building is proposed for the corner of West Polk Street and South Damen Avenue.

    “When combined, the two developments will create a state-of-the-art medical campus adjacent to a vibrant, mixed-use community,” a release from the county reads.

    The new administrative and outpatient building “will allow CCHHS to compete in current and future healthcare markets, improve outpatient services, reduce operating costs, avoid costly capital renewals for obsolete buildings, and increase clinical and administrative efficiency,” the ordinance up today notes. The approval would make way for the demolition of the Fantus Clinic, Polk Administration Building, and Hektoen Auditorium and Office, freeing up 680,000 square feet of County real estate.

    The existing agreement with Clayco, one of the Midwest’s biggest contracting companies, will move from the planning and schematic stage to construction into September of 2018. Groundbreaking is anticipated for the first quarter of 2017.

    Clayco relocated a major portion of its workforce to Chicago in 2013, and was a backer of Mayor Rahm Emanuel’s re-election PAC, Chicago Forward. Community activists calling for the resignation of Mayor Emanuel in the wake of the Laquan McDonald shooting protested outside Clayco on May 4 “to make sure that people such as Shawn Clark [Clayco’s VP of Finance] and Kevin McKenna [Executive VP and Shareholder] really understands [sic] that supporting Rahm Emanuel will lead to several boycotts at Clayco." The group also planned a protest of the Mayor's fundraiser last night, hosted by Robert Wislow, the Chair of USEquities Realty. 

    Commissioners will also consider whether to enter into a private redevelopment agreement with Civic Health Development Group (a joint venture development team of MB Real Estate Services, Inc., Walsh Investors, LLC, Plenary Group USA Ltd and Granite Companies LLC) for the rehab of the vacant Cook County Hospital building. Construction of that project would also begin in 2017. More info on the project here.

    CHDG will invest approximately $600 million in the redevelopment of the site at no cost to taxpayers, the county says. The renovation is slated to include residential, retail, office and hotel construction inside the building’s existing beaux arts facade. According to the county, CHDG will pay at least $2M in annual rent to the County over the term of the lease.

  • In this week’s episode we talk about Chicago Public School’s dire financial situation. Officials at CPS briefed aldermen this week to tell them they expect to finish the school year with only enough cash on hand to cover one-and-a-half days of operations. Meanwhile, the Chicago Teachers Union, still without a contract, announced $502 million in possible revenue ideas. And Mayor Emanuel gives a keynote address to the National Federation of Municipal Analysts.

  • The Chicago Sun-Times reported on Friday that Mayor Rahm Emanuel is organizing a private meeting of the City Council leadership, and yesterday aldermen and a mayoral staffer pulled back from that report to tell Aldertrack he is actually holding a “social gathering” with the chairmen of the Council’s 16 committees and their spouses. A private meeting with the committee chairs, depending on the agenda for the gathering, could have violated the state’s Open Meetings Act.

    “I think it’s a good idea,” said Ald. Danny Solis (25), Chairman of the Council’s Zoning Committee, adding that it wasn’t too unusual, considering similar gatherings are held during the holidays.

    Asked if they were going to the meeting with an agenda of their own, aldermen we spoke to said “no”, explaining that it was not that kind of meeting.

    Ald. Joe Moore (49), Chairman of the Council’s Housing and Real Estate Committee, said that if he had an agenda he wanted to bring up, he’d meet with the Mayor or his staff on his own.

    Ald. Solis and Ald. Howard Brookins, Jr. (21), Chairman of the Council’s Education Committee, responded in kind. It’s a “get to know you” type of meeting, Ald. Brookins explained. It’s “inappropriate” to bring up business at a social gathering, Ald. Solis added. And reached for comment, the Mayor’s Office confirmed that today’s meeting is in fact a social gathering with spouses.

    Nevertheless, there has been some changes to the Council leadership following former 4th Ward Ald. Will Burns’ exit. Ald. Brookins took over Burns’ spot as chair of the Education Committee, which rarely meets despite Chicago Public Schools’ financial and contract issues. Brookins had served a brief stint overseeing the Committee on Economic, Capital and Technological Development, which meets regularly, mostly to approve tax breaks for companies that commit to rehabbing old, vacant industrial properties. Ald. Joe Moreno (1), who received a chairmanship after the election, will take over that committee. He was originally the chair of the Council’s Human Relations Committee, another body that rarely meets. Ald. Pat Dowell (3) inherited that seat.

  • The Ventra card system is “inefficient and inconvenient”, costing social service providers nearly a quarter of a million dollars in service fees, claims a report by the Chicago Jobs Council, a local nonprofit that helps connect people with jobs.

    In the report, “The Hidden Cost of Ventra,” social service agencies in Chicago reported spending over $1 million in Ventra cards and single ride tickets each month. The CJC reached out to 345 agencies affiliated with the Department of Family and Supportive Services, the Chicago Housing Authority, and the Chicago-Cook Workforce Partnership. Only 53 agencies reported back, about a 15.3% response rate. 

    This was the second CJC survey of social service providers since the city contracted out the ticket service to the company operated by Cubic Transportation Systems in 2013. The transition wasn't seamless

    The Chicago Jobs Council argues in their findings that “nothing has changed.” Social service agencies are still left with buying bulk orders with “outdated paper order forms and checks.” They report wait times of two months for a shipment of tickets, according to 63% of respondents. Because of these delays, the report notes, “some providers have resorted to purchasing large quantities of tickets from regular Ventra vending machines, which is inefficient and burdensome.” And due to the 50-cent surcharge on paper tickets purchased through Ventra machines, fees cost providers $280,000 a year, the equivalent of 112,000 El rides.

    The report makes the following recommendations:

    • Eliminate the $0.50 fee on paper tickets for social service providers who receive funding from city and county agencies.

    • Modernize the bulk order process with online credit card payment options and delivery tracking.

    • Ensure delivery of bulk orders within 2 weeks of order.

    • Designate high capacity Ventra vending machines that are accessible to providers across the city, allowing providers to fill immediate bulk transit needs.

    • Allow providers to disable negative balance function of cards.

    • Extend ticket expiration times.

    • Offer bulk registration of cards online, and number products sequentially to simplify the bulk registration process.

    • Allow more than one opportunity for providers to return expired tickets. 

    In an emailed statement, the Chicago Transit Authority (CTA) said it already has been working to address the issues raised in the CJC report. “In fact, some of the changes we’re addressing are an outgrowth of the dialogues we’ve had with various providers since 2013, and include more than 400 social service agencies,” the transit agency said. “While we recognize and appreciate the important mission social service agencies serve, CTA also has a duty to consider its overall agency mission. In this strained and uncertain fiscal climate, any changes to CTA fare or fare-media policies pose challenges, and must be considered in the overall context of CTA operations.” 

    CTA said it already provides over $100 million free and discounted rides annually through various state-mandates programs. But due to state budget cuts, the agency lost $28 million it depends on to subsidize those rides. “CTA relies on all fare revenue to keep our budget balanced and continue to provide the cost-effective service we provide to all Chicagoans,” the statement read. “We are committed to continuing the dialogue we have been having with social service providers to fully explore the issue and discuss options.”

  • In an early morning keynote speech to municipal bond analysts Wednesday, Mayor Rahm Emanuel urged the crowd to consider a rosier picture for Chicago’s fiscal future, touting improved tourism, corporate relocation, and graduation rates, rather than solutions to bleak forecasts for the city’s pension funds and public schools. He accused the Illinois Supreme Court of putting a “straight jacket” around the city when it ruled earlier this year that his plan to reform the city’s Municipal and Labor funds was unconstitutional.

    “I don’t believe how the Supreme Court interpreted the constitution was right. I think that they put, in my view, a straight jacket around us,” Mayor Emanuel said to the room of about 200 members of the National Federation of Municipal Analysts meeting at the Westin Michigan Avenue Hotel. It was one of his first official public remarks on that decision since the court’s ruling in March. The Mayor’s pension plan would have reduced annuity benefits for public employees, then ramp up pension payments and put both funds on a path toward financial stability.

    Mayor Emanuel explained yesterday that the city is back at the table with the trustees of the labor and municipal funds “working through that issue” to find new revenue to keep the retirement funds from insolvency.

    But his remarks fell short of explaining how he plans to rebound from that setback. The Civic Federation projects insolvency in muni and labor funds in 10 to 13 years. According to the city’s 2015 Annual Financial Analysis, the municipal workers’ pension was only 42 percent funded, and the laborers only 64 percent funded at the end of 2014 (p. 87).  

    Mayor Emanuel expressed confidence that Gov. Bruce Rauner will sign a bill, SB777, to amend the funding timeline for the city’s police and fire pension funds. Gov. Rauner has said publicly that he will not sign pension reform without adding on components of his Turnaround Agenda. The city has already tapped a $220 million line of credit to meet a state-mandated March 1 deadline to have money available to make its pension payments.

    The Mayor did not outline solutions for how to fix crumbling finances at Chicago Public Schools either, but instead provided recent CPS talking points that Springfield’s funding formula is one of the worst in the nation and reform is needed. CPS has disclosed to aldermen this week that it will only have $24 million cash on hand by the end of June and needs a line of credit for the next fiscal year.   

    “We have met every issue head on,” Mayor Emanuel announced towards the end of his speech that was peppered with accomplishments that he tends to tout at these types of events: record tourism and growing corporate relocations; expanding pre-k and business-oriented curricula at community colleges; and having the most diverse economy in the country (he noted no industry makes up more than 13% of the city’s economy).

    “I know you all want to talk about public finances, and I am going to talk about them,” he joked after highlighting those statistics. “But I want you to understand how we approach it in the City of Chicago, which is in a larger context of the economy. And that the fiscal condition of the City of Chicago needs to be part of an overall strategy. Not just fiscal over here, and the economy, or the health of Chicago’s economy, over here.”

    Repeatedly reminding the crowd that he inherited the city’s poor fiscal position, Emanuel referenced the start of his first term in 2011. As a newly-elected mayor, he said he commissioned several independent reports on the city’s finances. He said he was faced with what he described as two reckless options for a city rebounding from the Great Recession: dramatically raise taxes or cut services.

    “The most reckless strategy would have been to raise taxes without reforming, especially for people just emerging out of that recession,” he said. “Doesn’t mean we weren’t going to find additional revenue, but we weren’t just going to be willy-nilly about raising taxes.”

    Emanuel said he also rejected the “other side of the ledger”, cutting services, which he called “crazy” and “reckless”, because of the number of people dependent on those city-funded services.

    “We have not wavered. We have not wobbled in that effort. I don’t think denial is a long term strategy,” he concluded, attempting to make a joke about denial being a river in Egypt. Hardly anyone laughed.

  • Officials at Chicago Public Schools laid out a “dire financial situation” for aldermen at briefings Monday and Tuesday: not only will the district need a school funding reform passed through Springfield, it also needs aldermen to file an additional property tax levy to address its cash crunch, slated to hit this summer. The district projects by June 30, it will have only $24 million cash on hand, enough to cover a day and a half of expenses, according to an 11 slide powerpoint deck provided to Aldertrack.

    The district is already “borrowing on a credit card” to address its cash flow needs. It has an $870 million line of credit that expires in August. In order to cover costs for the next school year, CPS would need to renew that $870 million line of credit, but it can't do so without a Fiscal Year 2017 budget and a new property tax levy. "Banks will only lend if they see a balanced budget with meaningful progress to structural balance and positive projected cash flows for FY 2017," the powerpoint says.

    CPS is scheduled to release that FY 2017 budget later this month, and school officials said it will need help from the Chicago Teachers Union (CTU), Springfield, and the city to close a yawning $1.1 billion structural deficit: “[it] will require shared commitment from all parties, starting with Springfield in the form of both pension parity and equitable funding; a contract with CTU that is fair to teachers, students and taxpayers; and the restoration of the pre-1995 property tax levy."

    The district has publicly supported school funding reform bills currently being pushed by State Sen. Andy Manar (D-Bunker Hill) and State Rep. Christian Mitchell (D-Chicago). CPS estimates Manar's bill (SB 0231) would provide an extra $300 million a year to CPS in FY 2017; Mitchell's (HB 4272) would provide an extra $260 to CPS in FY 2017 and more than $280 million the following years.

    During the briefings, CPS officials outlined a plan dependent on the General Assembly passing funding reform and Gov. Bruce Rauner signing it into law. CPS would then ask City Council to approve a $142 million property tax levy devoted to CPS capital improvements. City Council has a separate property tax levy it can raise for CPS capital spending–last October, aldermen approved a $45 million levy, though they demanded CPS regularly report on what projects that money would be spent on.

    “They’re not asking us to do that yet, they’re counting on Sen. Andy Manar and [State Rep.] Christian Mitchell’s bills,” said Council Education Committee Chair Howard Brookins, Jr. “But nobody, including CTU, believes there will be a permanent fix to anything until June 2019, when Rauner will be out office.”

    CPS shot down revenue ideas pitched by CTU and some Progressive Caucus members–a Lasalle Street tax on financial transactions, and the use of TIF surplus funds–calling them both “unviable.”

    Other statistics included in the PowerPoint:

    • CPS will pay $700 million to teacher pensions in FY 2016. Its unfunded liability is $9.6 billion.

    • The system's long term debt is $6.7 billion.

    • Most rating agencies expect between 30-90 days of cash on hand. In CPS' case, that would be $470 million to $1.4 billion of the district's $5.7 billion in expenditures for 2016, far short of what the district is expected to have at the end of next month. 

    • Since FY 2011, CPS has cut $740 million in administrative, central office, program and operating expenses.

  • The lobbying arm for the city’s taxi industry is actively pursuing aldermen, spending thousands of dollars in political donations to likely garner support for a plan imposing stricter regulations on their biggest competitors: the ride-hailing industry.

    Over the past two months, the political action committee for the Illinois Transportation Trade Association, ITTA PAC, has donated a total of $23,000 to about 20 aldermen (some received more than one check) and the Progressive Caucus. The group’s stated purpose on the State Board of Elections website is to, “garner support for the Illinois taxicab industry.” Recent contributions to ITTA PAC have come from New York based credit lenders, including Medallion Financial, which provides drivers loans to buy taxicab medallions, and the League of Mutual Taxi Owners Incorporated (LOMTO) Federal Credit Union.

    A number of the aldermen who received a $1,000 check from ITTA since March are on the Council’s Transportation and License Committees–the two bodies that are expected to take up an ordinance that would require Uber and other drivers contracted by ride-hailing apps obtain a full-time chauffeur's license, similar to the one the city requires of yellow cabbies.

    The ordinance would drastically change how the ride-sharing industry operates in Chicago. Not only would Uber, Lyft and other drivers working for ride-hailing industries be required to get a public chauffeur's license, those drivers would also have to get fingerprinted by an outside contractor chosen by the Police Department, and at least 5% of all ride-share cars would have to be wheelchair accessible with the same pricing and response times as the rest of the fleet.

    It’s an idea the Emanuel Administration has opposed in the past. Business Affairs and Consumer Protection Commissioner Maria Guerra Lapacek has argued the two industries should not be treated the same, mainly because being an Uber driver isn’t considered a full time occupation.

    But since the city opened up the airports, Navy Pier and McCormick Place to ride-hailing companies last fall, yellow cab drivers have sounded the alarm, warning their industry is on the verge of collapse. When BACP asked the License Committee in March to update licensing requirements for taxi and ride-share drivers, several cabbies testified they could no longer sustain themselves because of the proliferation of Uber and Lyft drivers on city streets. Ironically, a notable number of the drivers who vocally expressed their outrage that the administration has not done enough to level the playing field were part of the Taxicab Driver Fairness Task Force, a panel Mayor Emanuel himself assembled in 2014.  

    The same grievances were raised when the Transportation Committee considered a proposal from the Chairman, Ald. Anthony Beale (9), that would slap a 50-cent surcharge on all cab rides paid with credit or debit. Noting that plan would barely address the real issue at hand, creating parity among the two industries, Ald. Beale introduced an ordinance at the March City Council meeting that would further regulate the ride-sharing industry. That ordinance is currently in committee.

    Since the beginning of March, Ald. Beale alone got the largest check from ITTA: $5,000. Other aldermen on the Transportation Committee who received a $1,000 check from ITTA include: Sue Sadlowski Garza (9), Raymond Lopez (15), Matt O’Shea (19), Chris Taliaferro (29), and Anthony Napolitano (41).

    And those on the License Committee to accept a donation from ITTA include: Willie Cochran (20), Michael Scott, Jr. (24), Roberto Maldonado (26), Ariel Reboyras(30), Scott Waguespack (32), Tom Tunney (44), John Arena (45), and James Cappleman (46).

    Aldermen Pat Dowell (3) and Joe Moore (49) were the only two aldermen on neither committee to receive a $1,000 check from the taxi lobby over the same period.

    Uber has also been lobbying its riders to come out against Beale’s proposal in an online petition that argues the measure “would put an end to uberX in Chicago and the affordable ride Chicagoans have come to expect.” The petition has garneredmore than 100,000 signatures.

  • Eugene Williams, the Deputy Police Superintendent recently linked with a possible cheating scandal within the force, will be retiring this year. Police blog Second City Cop posted a tip saying a communication was being distributed announcing a “cake and coffee retirement reception” for Williams, but did not disclose a date.  

    CPD spokesman Anthony Guglielmi confirmed the retirement, but did not respond to follow up requests for the effective date or whether Williams would return to the department in a civilian role. Guglielmi told Aldertrack that Williams, “hits the mandatory age retirement this year.” CPD’s mandatory retirement age is 63. About two dozen officers have returned to CPD or other city departments to fill civilian rolesafter their retirement from active duty, according a CBS and Better Government Association investigation.

    DNAInfo has reported Williams and other higher-ups within the department are under investigation from the City Inspector General’s Office for sharing “privileged information” about the test used to promote sergeants to lieutenants.

    Williams has served with CPD for 36 years, including 15 years at the command level, in part as Chief of Patrol. He also held positions in narcotics, homicide, organized crime and community policing divisions. In mid-March, Williams was revealed to be one of three finalists submitted by the Police Board to serve as new Superintendent of Police, and favored by some members of City Council’s Black Caucus. Mayor Emanuel tossed out those three finalists in favor of now-Supt. Eddie Johnson, whose fianceé, Lt. Nakia Fenner, is linked to the same testing scandal.