Mayor Rahm Emanuel directly introduced to Council the official levy and revenue ordinances detailing how he plans to pay for his proposed $7.8 billion dollar budget at yesterday’s abbreviated City Council meeting (we provide a breakdown of those plans below). The public hearing that followed was much lengthier, approximately 40 people signed up to testify, but for most of the hearing, less than 10 aldermen were present. The Mayor left immediately after his press conference.
With budget hearings taking up the bulk of the Council’s time over the past two weeks, and more closed door meetings to come before the City Council officially votes on the Mayor’s spending plan on October 28, there was only a handful of old business items to be approved, and most of it was routine.
The Council approved dozens of appointments to and budget requests from various Special Service Areas, ordinances transferring TIF funds for capital improvement projects at CPS schools, and Ald. Will Burns’ (4) resolution supporting the rights of adjunct faculty to unionize.
New Business
Save for the Mayor’s budget ordinances, there wasn’t much new business. Chairman Ed Burke (14), introduced an ordinance regulating so-called “party buses” in the City after a recent shooting in the University Village neighborhood that left three people injured. According Ald. Burke’s press release, “the driver did not keep a passenger roster or make sure passengers on the bus were legally old enough to drink alcohol.” The ordinance would require party bus operators make sure entities chartering the bus are licensed to sell alcohol, and there is a designated person to check IDs of all passengers on the bus. Ald. Anthony Napolitano (41), Ald. Chris Taliaferro (29), Ald. Ariel Reboyras (30), and Ald. Willie Cochran (20) are co-sponsors.
Ald. Matt O’Shea (19) introduced a resolution calling for a voluntary $1 service charge on the “nearly 100 million passengers flying into or out of Chicago.” Money from that service charge would go toward increasing police presence at and around the airports. Citing the City’s “unprecedented gang and gun violence crisis” and the “alarming rate of illegal guns on the street” in the preamble to the ordinance, Ald. O’Shea suggested the City tap into the $1.8 billion in revenue O’Hare and Midway airports generate.
And the Chicago Public Health Department, in conjunction with Ald. Burke, introduced a resolution calling on the Food and Drug Administration to reverse its decision to allow the use of opioid prescription drugs for pediatric patients. The ordinance cites a recent surge of prescription drug abuse in Chicago; between 2009 and 2011, Chicago saw an 11% increase in the number of opioid-related emergency room visits.
Mayor’s Press Q&A
At his usual post-Council meeting press conference, Mayor Rahm Emanuel defended his unpopular revenue plans, a historic property tax increase and a new monthly garbage fee, in addition to fielding questions about the recent federal indictment of former Chicago Public Schools CEO Barbara Byrd-Bennett.
“I’m proud we are submitting this [budget] today,” Mayor Emanuel told the room before taking questions. Asked if he made any changes to his budget as a result of aldermanic objections, Emanuel responded, “The short answer...no.”
He said the budget is based on conversations already had with the unions, the Civic Federation, and aldermen. Those meetings go back “months,” the Mayor said, “and we included items discussed in those meetings.”
And even though he wasn’t asked about his plan to privatize the city’s 311 call system, a plan that garnered a significant amount of criticism from aldermen, Emanuel made a point to defend it, “I stand by what we’re proposing as it relates to 311 reforms, mainly because for the first time ever we have a lot of effectiveness in our neighborhood services.”
It would cost the city $40 million dollars to upgrade the system, the Mayor added. “We don’t have that.”
As for the Byrd-Bennett indictment, Emanuel denied any connection with Gary Solomon, co-owner of SUPES Academy, who was at that moment entering a not guilty plea in federal court for his alleged involvement in the $23 million dollar kickback scheme with the no-bid contract CPS awarded his firm.
When asked to detail how he knew Solomon, where they met, if he knew Byrd-Bennett worked for his company, and why he wasn’t more involved in the contract selection process, Emanuel responded “there is no relationship between me and Solomon. Ever.”
“There is a long history of mayors getting involved in contracts,” Emanuel added. “I don’t get involved in contracts.”
Public Hearings
Approximately 40 witnesses submitted pink slips to testify on the Mayor’s budget. Civic Federation President Laurence Msall kicked off the public portion of the meeting by voicing his support for and urging the Council to approve the Mayor’s spending plan.
“We applaud the Mayor and his administration for the long overdue plan to address the city’s grossly underfunded public pension system,” Msall said in a short speech highlighting the findings of his lengthy 111 page budget analysis. He spent nearly two hours fielding questions from aldermen.
Calling the Mayor’s $1.2 billion dollar FY2016 property tax levy “painful but very necessary”, Msall advised the Council to support the mayor’s spending plan and “stabilize the city’s two worst funded pension plans.”
But he also warned that the Mayor’s budget relies on a lot of variables that could lead to bigger cuts in the future, “We are concerned that even with this extraordinary property tax increase, the city has some expenses that may not be covered.”
If Chicago Public Schools’ liquidity crisis and the city’s ongoing structural deficit aren’t addressed, additional tax increases and service cuts will be needed, Msall said. If Springfield rejects Mayor Emanuel’s plan to extend the city’s pension payments, the city will have to pay an additional $220 million towards the Police and Fire pensions, Msall added. The courts also have yet to rule on the legality of the city’s decision to phase out its subsidy of retiree healthcare costs for its non-public safety unions. “If that should be struck down, the city faces additional hundreds of millions of costs for its health care retirement system,” Msall warned.
Aldermen used the time with Msall to ask for alternative proposals to the property tax hike. When Ald. Joe Moore (49) asked Msall to highlight potential cost savings and quick fixes for this year’s budget, Msall said the Council needs to take a hard look at the budget and find the “optimal number” and cost of city services.
“Those obviously are good recommendations, and they will take some time to fully implement, but is there anything you can identify that we can implement in the next two weeks?” Ald. Moore followed up.
Msall said cutting borrowing would be a good start, as the city’s outstanding debt is the biggest cost after its unfunded pension liability. Msall also defended Mayor Emanuel’s plan to privatize 311, echoing the mayor’s argument that the cost of the updating the system would be a bigger burden than privatization.
Samples From Public Testimony
On the proposed privatization of the city’s two HIV clinics:
“The city’s HIV clinics are not sustainable in the post-Affordable Care Act landscape, and the transition of these clinics is the best long-term plan for HIV patients in Chicago. These funds will be used more effectively and efficiently by community based clinics… That support, however, is not without concerns. Our greatest concern is that if the city decides to transition medical services to other organizations, people with HIV could drop out of care… The service transition plan should include steps that ensure all current patients are successfully linked to a primary care medical home.” – Maximillian Boykin, AIDS Foundation of Chicago
On the proposed tax on e-cigarettes:
“The mayor’s plan to use $500,000 per year in e-cigarette tax revenue to open five new [school based] health centers is a smart investment in our city’s young people. We estimate that this plan will ensure over 3,000 more Chicago people have access to support they need to be healthy, safe, and ready to learn… Because the tax is intended to serve as a capital investment, we wouldn’t be concerned about the long-term viability [of revenue from the e-cigarette tax].” - Heidi Ortolaza-Alvear, EverThrive Illinois
On the proposed property tax hike and homeowners exemption:
“We don't even know yet the full impact of the tax increase, because all of the properties in the city have yet to be assessed. What we know so far is that assessments in southern Cook County have increased at an average rate of 30%... This policy is flawed and short-sighted. It's disingenuous to shine a light on what more the central business district can do without recognizing that same light illuminates the neighborhood businesses that will also be picking up the tab.” – Tanya Triche, Illinois Retail Merchants Association
“Estimates indicate that rents will increase more than $380 annually, or $32 a month over the next four years, because renters pay property taxes too. As you search for ways to alleviate the burden of property taxes on homeowners, we strongly urge you not to do so at the expense of Chicago’s renters… Instead, a rebate program targeting only the most severely impacted taxpayers would alleviate the harmful effects of a property tax shift. We support that kind of program.” – Michael J. Mini, Chicagoland Apartment Association
“Real estate property taxes in Chicago account for nearly 76% of large office buildings’ total operating expense… We’ve been told that if distributed evenly, there would be about a 12% increase in tax bills... The increase grows to nearly 17% and other non-partisan estimates are even higher: as much as 22%... For the tenant of a modest 20,000 square foot space in an average building, that’s an increase of over $25,000. It brings that tenant’s property tax bill to more than $177,000.” – Ron Tabaczynski, Building Owners and Managers Association of Chicago
“In addition to the large property tax in the 2016 budget, the hotel industry continues to be hurt badly by the lack of enforcement of the city’s vacation rental ordinance… The license fee in Chicago is $500. It’s good for two years. New York City’s license is $5,000... If you take all the units [Airbnb and other vacation rental companies] rent, $500 times 5,000 [units], that’s $2.5 million. Right off the bat.” – Marc Gordon, Illinois Hotel & Lodging Association
On the proposed privatization exploration of 311:
“It makes no sense to privatize what connects their residents to their government. It makes no sense to privatize 311 and put the nerve center of the city in the hands of a corporation whose number one goal and/or priority is to make a profit. It makes no sense to privatize and get rid of 311’s biggest asset, which would be experienced, knowledgeable workers who are committed to the City of Chicago.” – Louis Shuttlesworth, 311 operator
On Police Superintendent Garry McCarthy:
“I support and thank especially Alderman [Raymond] Lopez and the other City Council members who have called for the firing of Garry McCarthy… His military policing and racial profiling in some parts of the city is a threat to all parts of the city. This superintendent is part of the problem instead of the solution and it’s time for him to go.” – Evangel Yhwhnewbn, Chicago resident, 15th Ward
On proposed changes to rideshare pickup rules:
“I want to first of all, thank Mayor Emanuel for supporting the rideshare agenda… I’ve been driving for over two years. I’m 74 years old so I guess I’m a senior, and it’s a great job for seniors... I drive to the airport but it’s unfair to me that I have to come back without a ride… When you drive in from the airport, you see the big sign, ‘Welcome to Chicago.’ When a tourist arrives in Chicago, the first person he gets an opportunity to talk to is his transportation driver... I want to be the Wal-Mart greeter for Chicago.” – Jim Evans, UberX driver, 45th Ward
City Budget Ordinance Introduced; County Budget Too – Aldertrack's Detailed Review
[Ed Note: A version of this article appeared in Friday’s subscriber edition. This version has been updated to include new reporting.]
This year’s city budget deficit is unprecedented, at least $425 million, possibly approaching a billion dollars, depending on whether or not pension reform is passed and how much of the city's pension liabilities and debt the city decides to pay back each year.
Aldermen and interested observers have suggested dozens of new revenue solutions, but as of yet the mayor's team has been tight lipped which ones he is likely to adopt. With the Mayor's budget proposal scheduled for introduction tomorrow, Aldertrack has assembled a “cheat sheet” of the various taxes, fees, and efficiencies under discussion.
In addition to combing through all the media coverage, we reached out to aldermen and their staff, state legislators, City officials, and lobbyists to assemble the list. Excluding the property tax and other big ticket items like TIF reform, or some sort of city income tax, the ideas listed here total more than $2 billion.
On Friday and over the weekend a series of “smoke signals” emerged from the mayor’s office, making the following items most likely:
Property Tax: $450-$550M – As detailed in Thursday’s newsletter, this number might be misleading. It could be much bigger, or followed by a similar-sized hike next year. Leading aldermen and the mayor have said they plan to make a property tax increase “fair and progressive.”
Property Tax Exemptions – There is wide agreement that an increased exemption is politically necessary to pass a property tax increase of any size. Last week Mayor Rahm Emanuel floated a plan to exempt those that own homes worth less than $250,000, but it requires approval from Springfield, and Gov. Bruce Rauner made it clear he won't sign any tax changes without linking it to elimination of government employee collective bargaining.
Aldermen and city budget officials are now examining ways a tax rebate, managed entirely by city and Cook County government, could be passed through a city ordinance. Such a plan would require creating a new bureaucratic structure to manage it, however. Potential plans include:
Ald. Joe Moreno (1) has proposed a rebate plan that would rebate those with household incomes below $100,000.
The Progressive Caucus is releasing a proposed rebate plan this morningthat would give families earning up to 400% of the poverty level ($63,720 a year for a couple) about a $400 rebate for a $250,000 house based on an anticipated $500 million property tax increase. There would be no residential rebate for those with higher incomes. (Presser scheduled for 9:30 a.m. today)
Garbage Pickup Fee: $80M – Chicago is set to impose $9.50 garbage pickup fee per household. Senior citizens are supposed to get a 50% break. The weekend before the budget, word was that the fee would be $11-$12 a month, but Ald. Pat O’Connor (40) reportedly worked it down. Four years ago, Inspector General Joe Ferguson estimated a collection fee like this could bring in $125M, with an additional $18M if blue cart recycling fees were included. This fee could be folded into a property tax hike, to make it deductible from federal income taxes.
Rideshare Fees and Licensing: $141M – A plan last weekend would put a proposed rideshare tax between 30 cents to 50 cents for each trip–higher at surge-pricing times. Taxi fares would increase by 15% in the overall fare that goes to cab drivers, and a 50-cents-per-ride charge as the city applies the rideshare fee to cab drivers as well. In addition, rideshare drivers would now be able to pick up travelers at O’Hare and Midway airports. Finance Chairman Ed Burke (14) championed a $1 fee on Uber or Lyft rides, and with Ald. Anthony Beale (9), he suggested an additional fee during surge pricing, which is when rates for rideshares jump. The Progressive Caucus has suggested Uber and Lyft drivers should be required to have the same licensing as cab drivers and chauffeurs.
Congestion Fee: $145M – A tax aimed at reducing downtown traffic and pollution would require new city infrastructure, but could add up to a sizable new income stream. Last weekend, reports suggested Ald. Ed Burke was putting together a blue ribbon committee to look into how to implement it, possibly by charging a $10 fee on non-city cars entering the Central Business District that would be collected on city streets. Inspector General Joe Ferguson estimated in 2011 that a similar toll during morning and evening rush periods could raise $210 million, even after a 20% dip in traffic and a $300 million capital outlay for checkpoints equipped with cameras and electronic transmitters. Some money would also go to CDOT. Burke first brought the idea up in 2007, but was shot down by Mayor Richard M. Daley.
Efficiencies From the Mayor’s Office: $170M – Carole Brown, the City’s Chief Financial Officer, said at a City Club event the mayor’s budget will include $170 million in budget cuts, reforms and efficiencies. The Mayor’s press office has released a piecemeal list so far, things like auctioning off city surplus goods ($2M), changes to grid garbage collection ($7M), and healthcare savings from a deal with the Labor Management Cooperation Committee ($20M).
The following items have been been mentioned as “possibilities” in Aldertrack’s discussions with aldermen and leading lobbyists.
E-cigarette And Smokeless Tobacco Fees: $31M – Ald. Joe Moreno’s pitch to tax e-cigarette cartridges and containers would net the city approximately $1M in revenue. The bigger ticket item is a 20 to 30% tax on smokeless tobacco like chew or snuff. Moreno said he’d be willing to go as high as 70%. Mayor Emanuel, in one of few comments on aldermanic suggestions, told WLS-AM Radio there was a “building consensus” around a tax like this.
Cloud Tax: $12-70M – The City’s Finance Department doesn’t consider this a new tax, but an enforcement of two existing taxes already in the books. Most analysts agree the real revenue number is much higher, probably closer to $70M once a full assessment is completed. After pushback from the local tech community and businesses who rely on cloud data, enforcement of the tax was delayed until January and an exemption was issued for small companies. Greg Hinz reported this weekend that the tax will go to 5.25%, down from the earlier 9%, although streaming services, like Netflix, will still carry at 9% tax. There’s a court challenge to the ruling already in Cook County chancery court from the the nonprofit Liberty Justice Center, an arm of the Illinois Policy Institute.
Sugar-Sweetened Beverage Tax: $134M – Ald. George Cardenas (12), chairman of the Committee on Health and Environmental protection, held a hearing on a proposed penny per ounce tax on sugar sweetened drinks, including soda, some juices, Kool-Aid, and Gatorade. Cardenas says he is waiting for clarification from the Law Department before he calls it for a vote in committee, as there are two existing taxes on soda in the City.
Zero Waste Program: $29M – The Progressive Caucus wants to require buildings to break down recyclable materials by category so they can be reprocessed and sold to recycling companies at profit. The Caucus estimates it could raise $299 million over 10 years.
Stormwater Stress Tax: >$10M estimate – A tax on big box stores and other buildings whose large parking lots put an additional stress on city drainage systems is another Progressive Caucus plan. This tax could hit hospitals, schools, and nonprofits, too, but aldermen didn’t put a price tag on this suggestion or talk about possible exemptions.
Conservation Pricing for Bulk Utility Users: >$10M estimate – Another Progressive Caucus pitch would be for the City to charge bulk users of water, electricity, garbage collection, and stormwater drainage at higher rate. “Large entities like big box retailers, industry, and even universities and hospitals could potentially even subsidize lower rates for lower income Chicagoans,” the Caucus press materials say, but again, the proposal doesn’t include a price tag.
Fold Chicago Board of Elections Into Cook County Clerk: $13M – The Civic Federation has backed this idea, and the Progressive Caucus revived it in their recent budget suggestions. In a 2011 brief, Civic Fed said combining the two agencies would be more user-friendly, reduce voter confusion about where to stand and which machines to use on Election Day, reduce duplication, make it easier to find election results, and save money.
PILOT Program: no estimate – A PILOT (Payment In Lieu of Taxes) Program in Chicago, modeled after a similar one in Boston, would compel nonprofits exempt from property taxes to pay a voluntary fee to the City, and is supported by the Progressive Caucus. Some of that money would come from universities, and possibly from hospitals and churches. Since it’s a voluntary program and payments are generally negotiated between municipalities and nonprofits, it’s hard to predict how much money this could raise, or how long it could take to implement. Boston’s PILOT program brought in roughly $28M in FY 2015.
Investor Landlord Refuse Fee: no estimate – Another Progressive Caucus idea targets investor landlords, who rent out extra properties. Landlords renting out non-owner occupied single family homes and small apartment buildings would pay the cost of garbage collection. No estimates on revenue were provided.
Luxury Tax: no estimate – A tax non-essential, high-value purchases like fur coats, high-end jewelry and boats above a certain price point, plus services like pet grooming, travel services, plastic surgery, investment counseling and architects was also pitched by the Progressive Caucus. Ald. David Moore(17) has also suggested a tax on luxury real estate transactions, but neither the Caucus nor Moore suggested how much money the City could make from such taxes.
Increased Fee on O’Hare, Midway, Navy Pier Concessions: no estimate – Ald. David Moore, an accountant, proposed an increase on the percentage fee of gross sales from concessions at O’Hare International Airport, Midway Airport, and Navy Pier. Moore’s press spokesperson didn’t return requests for comment on how much they expect the fee to generate.
$2.50 Hotel Surcharge: no estimate – Given a record-setting 50 million visitors to Chicago in 2014, Ald. David Moore pitched a $2.50 surcharge per stay, not per night, on the city’s hotels. Moore’s press spokesperson didn’t return requests for comment on how much this would generate, only saying in a press release it would “generate millions.”
$25 Bike License: no estimate – Ald. Pat Dowell (3) first floated this idea in 2013 as an offset to a cable TV tax increase. Licensing would also require a 1 hour safety training course. A 2012 census suggested more than 19,000 people commute on bikes to work in the city, and that number has almost certainly gone up with the introduction and expansion of Divvy. But even if that census number doubled, licensing fees would generate less than $1M. At the time, Ron Burke, executive director of the Action Transportation Alliance, called bike licensing prohibitively complicated and costly to administer.
Vehicle Fuel Tax: no estimate – Chicago already has a $0.05 per gallon gasoline tax, which the Mayor says will generate less money every year because of increased fuel efficiency standards. A potential hike is also being floated at the state level to help pay for infrastructure projects. Chicagoans already pay the nation's highest collection of federal, state, and county fees and taxes at the pump.
City Income Tax: no estimate – Ald. Joe Moore (49) has proposed a graduated city income tax that applies to all wages earned in Chicago, including suburbanites who commute to work in the City. This would require authorization from Springfield, and could potentially tax the rich at a higher rate, but Moore did not give specifics on rates or income brackets.
Moving Truck Permit: no estimate – A permit to prevent booting and ticketing for moving and delivery trucks in the central business district and throughout the city was pitched this week by Ald. Brian Hopkins (2). Daily permits would range from $4- $20 daily, $20-$100 monthly and $200-$1,000 annually depending on whether the truck operates in the Central Business District or outside of it. Hopkins didn’t release an estimate of how much permitting would generate versus revenue from tickets and booting fees.
City Switch to Fiber Optic Network: no estimate – Ald. Hopkins also proposed the city build on existing emergency communication infrastructure and switch from private internet services to a faster, more reliable fiber optic network. He estimates the city could “easily” save $100M in the first two or three years after making the switch.
Ward-Controlled Video Gaming/Gambling: $20M – Gamblers heading to play video poker outside city limits might not have to travel so far, if a proposal from Ald. Raymond Lopez (15) gains some traction. His proposal would allow aldermen to approve licenses to bar/restaurants who want to install video gaming machines in a process similar to liquor licenses. Lopes estimates if everyone eligible opted in and were approved by their alderman, it would generate $16M a year, plus $4M in licensing fees. Lopez has already faced pushback from mayoral allies Ald. Ameya Pawar (47) and Ald. Pat O’Connor(40), who is concerned that video gaming might take away the draw of a land-based casino downtown.
Land-Based Casino: $450M – Mayor Emanuel has told aldermen in recent budget meetings that he plans to expend his political capital in Springfield on finally bringing a land-based casino to the City. Revenues would go toward funding police and fire pensions. Downtown business leaders have been for the casino, which they say would lead to more hotel stays, shopping and restaurant visitors. But it’s been a slog–Gov. Pat Quinn vetoed the mayor’s first try in 2012, saying he worried about city ownership and gambling industry influence on politicians. The Mayor might also get pushback from Chicago-area casinos who don’t want any more competition. Gov. Rauner has declared himself more open-minded than Gov. Quinn. Estimates about how much a Chicago casino would make vary based on different proposals floated in Springfield in May and June. According to state projections, a city-owned casino could generate at least $457 million a year, with more than $200 million of that to be paid to the state in taxes.
Food Cart Licensing: $2M – An ordinance to license and regulate mobile food carts has passed in the License Committee without vocal objection. Approved vendors who pass Health Department inspection will have to pay a $350 license fee. A representative from the Illinois Policy Institute suggested revenue from licensing for all existing vendors, who currently operate illegally, could generate $2M, and grow to $8M, depending on penetration. It’s up for a vote in the Sep 24th council meeting, and has vocal support from License Chair Emma Mitts (37).
Financial Transactions/Lasalle Street Tax: no estimate – A small tax on financial transactions like the selling and buying of stocks, bonds, and options has been floated by several aldermen, but would require Springfield approval. Chicago State Rep. Mary Flowers brought up a .01% tax in the General Assembly in 2013. Her bill would have imposed a levy on any commodities and stocks transactions made on the Chicago Stock Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade and the Chicago Board Options Exchange. In 2011, Inspector General Joe Ferguson said a penny-per-transaction tax could generate $38M for Chicago. William Barclay, an economist advising the CTU, said a $1-to-$2 tax could raise up to $12 billion a year for Illinois. The Sun-Times Editorial Board called that $12 billion figure a fairy tale, and said the mayor was opposed.
Corporate Income Tax: no estimate – Ald. Ameya Pawar (47), one of the driving forces behind the establishment of an independent financial office for City Council, has suggested easing the hit of a property tax increase by creating a corporate income tax for large businesses. He sees it as an alternative to a financial transactions tax, which he says would negatively affect pensions. The change would require Springfield approval. He says New York City has successfully implemented the tax without scaring big business away, but hasn’t suggested a rate or estimated revenue.
Temporary Amnesty for Outstanding Debt to City: $1M-$7M – Under an amnesty program proposed by Mayor Emanuel, any individual or business that owes the City money for parking tickets and other violations and taxes from before 2012 will be granted amnesty for the penalties and interest previous tickets or violations have accrued. Individuals will still pay the ticket or fine value, but will receive amnesty from the penalties and interests associated with failure to pay. Previous programs in 2002 and 2009 collected between $7 and $8 million, but the Office of Budget and Management put out a conservative $1M revenue estimate.
Restaurant Tax Increase: $25M – A possibility discussed by some lobbyists and aldermen, the city already has a quarter percent restaurant tax which brings in around $25M, the city could double it and call it a "progressive" tax, since most restaurant-goers have more discretionary income.
Updated City Revenue Proposals Cheat Sheet
The size of city's budget hole is unprecedented this year, at least roughly $425 million, possibly approaching a billion, depending on whether or not pension reform is passed and how much of the city's pension liabilities and debt the city decides to pay back each year.
Aldermen and interested observers have suggested dozens of new revenue solutions, but as of yet the mayor's team has been tight lipped which ones he is likely to adopt. With the Mayor's budget proposal scheduled for introduction next Tuesday, Aldertrack has assembled a “cheat sheet” of the various taxes, fees, and efficiencies under discussion.
In addition to combing through all the media coverage, we reached out to aldermen and their staff, state legislators, City officials, and lobbyists to assemble the list. Excluding the property tax and other big ticket items like TIF reform, or some sort of city income tax, the ideas listed here total more than $2 billion.
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Property Tax: $450-$550M – As detailed in Thursday’s newsletter, this number might be misleading. It could be much bigger, or followed by a similar-sized hike next year. Leading aldermen and the mayor have said they plan to make a property tax increase “fair and progressive.”
- Property Tax Exemptions – Almost everyone we've spoken to agrees that an increased exemption is a politically necessary accompaniment to a property tax increase of any size. Earlier this week Emanuel floated a plan to exempt those that own homes worth less than $250,000, but it requires approval from Springfield, and Gov. Bruce Rauner made it clear he won't sign any tax changes without linking it to elimination of government employee collective bargaining.Aldermen and city budget officials are now examining ways a tax rebate, which could be managed entirely by city and Cook County government, could be passed through a city ordinance. Such a plan would require creating a new bureaucratic structure to manage it, however. Ald. Joe Moreno (1) has proposed a rebate plan that would rebate those with household incomes below $100,000. Ald. Carlos Rosa-Ramirez (35) is also working on a plan of his own, due to be released on Monday.
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Efficiencies From the Mayor’s Office: $170M – The Mayor has said multiple times he and Budget Director Alex Holt are trying their best to find efficiencies in City government before asking taxpayers to cough up more money. Carole Brown, the City’s Chief Financial Officer, said at a City Club event the mayor’s budget will include $170 million in budget cuts, reforms and efficiencies. But a full list detailing those cuts hasn’t been released. What the Mayor’s press office has released is piecemeal, things like auctioning off City surplus goods ($2M), changes to grid garbage collection ($7M), and healthcare savings from a deal with the Labor Management Cooperation Committee ($20M).
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E-cigarette And Smokeless Tobacco Fees: $31M – Ald. Joe Moreno’s (1) pitch to tax e-cigarette cartridges and containers would net the city approximately $1M in revenue. The bigger ticket item is a 20 to 30% tax on smokeless tobacco like chew or snuff. Moreno said he’d be willing to go as high as 70%. Mayor Emanuel, in one of few comments on aldermanic suggestions, told WLS-AM Radio there was a “building consensus” around a tax like this.
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Cloud Tax: $12M – The City’s Finance Department doesn’t consider this a new tax, but an enforcement of two existing taxes already in the books. Most analysts agree the real revenue number is much higher, probably closer to $70M once a full assessment is completed. It has proven controversial among not only users of streaming services like Netflix, Hulu, and Spotify, but also the local tech community and businesses who rely on cloud data. Enforcement of the tax has been delayed until January. There’s a court challenge to the ruling already in Cook County chancery court from the the nonprofit Liberty Justice Center, an arm of the Illinois Policy Institute.
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Garbage Pickup Fee: $70M – Days before the budget release, Ald. Joe Moore (49) said Mayor Emanuel floated the idea to slap a $9.50 fee on garbage pickup, and may be tucked into the budget. If all eligible homeowners paid the fee, it could generate $70M. Earlier this summer, Ald. Roderick Sawyer (6) suggested a nominal fee on garbage collection is “worth looking at,” but got pushback from some aldermen on the south and west sides. Four years ago, Inspector General Joe Ferguson estimated a collection fee like this could bring in $125M, with an additional $18M if blue cart recycling fees were included. This fee could be folded into a property tax hike, so it can be deducted from federal income taxes.
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Sugar-Sweetened Beverage Tax: $134M – Ald. George Cardenas (12), chairman of the Committee on Health and Environmental protection, held a hearing on a proposed penny per ounce tax on sugar sweetened drinks, including soda, some juices, Kool-Aid, and Gatorade. The tax received pushback from the Illinois Restaurant Association and the Chicago Coalition Against Beverage Taxes but support from health officials. When asked about the ordinance, Mayor Emanuel said “there are a lot of savings as it relates to our budget in healthcare…changing people’s behavior can be a big savings financially, as well as improve healthcare outcomes.” Cardenas is waiting for clarification from the Law Department before he calls it for a vote in committee,as there are two existing taxes on soda in the City. It’s unlikely the committee will meet before full Council September 24.
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Rideshare Fees and Licensing: $77M – Finance Chairman Ed Burke (14) has championed a $1 fee on Uber or Lyft rides, and Ald. Anthony Beale (9) supports an additional fee during surge pricing, which is when rates for rideshares jump (double fee for 2x surcharge, triple for 3x, and so on), but Beale didn’t provide an estimate on how much revenue the surge pricing fee could generate the city. The Progressive Caucus has suggested Uber and Lyft drivers should be required to have the same licensing as cab drivers and chauffeurs. Assuming there are 5,000 rideshare drivers in Chicago, the Caucus says licensing could generate more than $7M.
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Zero Waste Program: $29M – The Progressive Caucus wants to require buildings to break down recyclable materials by category so they can be reprocessed and sold to recycling companies at profit. The Caucus estimates it could raise $299 million over 10 years.
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Stormwater Stress Tax: >$10M estimate – A tax on big box stores and other buildings whose large parking lots put an additional stress on city drainage systems is another Progressive Caucus plan. This tax could hit hospitals, schools, and nonprofits, too, but aldermen didn’t put a price tag on this suggestion or talk about possible exemptions.
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Conservation Pricing for Bulk Utility Users: >$10M estimate – Another Progressive Caucus pitch would be for the City to charge bulk users of water, electricity, garbage collection, and stormwater drainage at higher rate. “Large entities like big box retailers, industry, and even universities and hospitals could potentially even subsidize lower rates for lower income Chicagoans,” the Caucus press materials say, but again, the proposal doesn’t include a price tag.
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Fold Chicago Board of Elections Into Cook County Clerk: $13M – Civic Fed has backed this idea, and the Progressive Caucus revived it in their recent budget suggestions. In a 2011 brief, Civic Fed said combining the two agencies would be more user-friendly, reduce voter confusion about where to stand and which machines to use on Election Day, reduce duplication, make it easier to find election results, and save money.
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PILOT Program: no estimate – A PILOT (Payment In Lieu of Taxes) Program in Chicago, modeled after a similar one in Boston, would compel nonprofits exempt from property taxes to pay a voluntary fee to the City, and is supported by the Progressive Caucus. Some of that money would come from universities, and possibly from hospitals and churches. Since it’s a voluntary program and payments are generally negotiated between municipalities and nonprofits, it’s hard to predict how much money this could raise, or how long it could take to implement. Boston’s PILOT program brought in roughly $28M in FY 2015.
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Investor Landlord Refuse Fee: no estimate – Another Progressive Caucus idea targets investor landlords, who rent out extra properties. Landlords renting out non-owner occupied single family homes and small apartment buildings would pay the cost of garbage collection. No estimates on revenue were provided.
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Luxury Tax: no estimate – A tax non-essential, high-value purchases like fur coats, high-end jewelry and boats above a certain price point, plus services like pet grooming, travel services, plastic surgery, investment counseling and architects was also pitched by the Progressive Caucus. Ald. David Moore (17) has also suggested a tax on luxury real estate transactions, but neither the Caucus nor Moore suggested how much money the City could make from such taxes.
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Increased fee on O’Hare, Midway, Navy Pier Concessions: no estimate – Ald. David Moore (17), an accountant, proposed an increase on the percentage fee of gross sales from concessions at O’Hare International Airport, Midway Airport, and Navy Pier. Moore’s press spokesperson didn’t return requests for comment on how much they expect the fee to generate.
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$2.50 Hotel Surcharge: no estimate – Given a record-setting 50 million visitors to Chicago in 2014, Ald. David Moore (17) pitched a $2.50 surcharge per stay, not per night, on the city’s hotels. Moore’s press spokesperson didn’t return requests for comment on how much this would generate, only saying in a press release it would “generate millions.”
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Congestion Fee: $210M – A tax aimed at reducing traffic and pollution would take some infrastructure changes, but could take a big chunk out of the budget gap. Inspector General Joe Ferguson estimated in 2011 that a $5 toll on cars entering the Central Business District during morning and evening rush periods could raise $210 million, even after a 20% dip in traffic and a $300 million capital outlay for checkpoints equipped with cameras and electronic transmitters (similar to EZPasses that can be used on the Indiana Toll Road and the Chicago Skyway). Some money would also go to CDOT. Finance Chairman Ed Burke (14) first brought the idea up in 2007, but was shot down by Mayor Richard M. Daley.
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$25 Bike License: no estimate – Ald. Pat Dowell (3) first floated this idea in 2013 as an offset to a cable TV tax increase. Licensing would also require a 1 hour safety training course. A 2012 census suggested more than 19,000 people commute on bikes to work in the city, and that number has almost certainly gone up with the introduction and expansion of Divvy. But even if that census number doubled, licensing fees would generate less than $1M. At the time, Ron Burke, executive director of the Action Transportation Alliance, said bike licensing would be prohibitively complicated and costly to administer.
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Vehicle Fuel Tax: no estimate – Chicago already has a $0.05 per gallon gasoline tax, which the Mayor says will generate less money every year because of increased fuel efficiency standards. A potential hike is also being floated at the state level to help pay for infrastructure projects. Chicagoans already pay the nation's highest collection of federal, state, and county fees and taxes at the pump, and might not take another one on top of Cook County’s recently increased sales tax.
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City Income Tax: no estimate – Ald. Joe Moore (49) has proposed a graduated city income tax that applies to all wages earned in Chicago, including suburbanites who commute to work in the City. This would require authorization from Springfield, and could potentially tax the rich at a higher rate, but Moore did not give specifics on rates or income brackets.
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Moving Truck Permit: no estimate – A permit to prevent booting and ticketing for moving and delivery trucks in the central business district and throughout the city was pitched this week by Ald. Brian Hopkins (2). Daily permits would range from $4- $20 daily, $20-$100 monthly and $200-$1000 annually depending on whether the truck operates in the Central Business District or outside of it. Hopkins didn’t release an estimate of how much permitting would generate versus revenue from tickets and booting fees.
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City Switch to Fiber Optic Network: no estimate – Ald. Hopkins also proposed the city build on existing emergency communication infrastructure and switch from private internet services to a faster, more reliable fiber optic network. He said the money saved could be reinvested toward expansion of the municipal network to reach communities that need fast, affordable access. He said similar switches in Santa Monica, Chattanooga, and Aurora spurred economic growth. He estimates the city could “easily” save $100M in the first two or three years after making the switch.
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Ward-Controlled Video Gaming/Gambling: $20M – Gamblers heading to play video poker outside city limits might not have to travel so far, if a proposal from Ald. Raymond Lopez (15) gains some traction. He says similar to liquor licenses, aldermen can dole out licenses to bar/restaurants who want to install video gaming machines. He estimates if everyone eligible opted in and were approved by their alderman, it would generate $16M a year, plus $4M in licensing fees. Sources say he’s been trying to build support among other aldermen who with wards on the city’s limits. Lopez has already faced pushback from mayoral allies Ald. Ameya Pawar (47) and unofficial floor leader Ald. Pat O’Connor (40). O’Connor said video gaming might take away the draw of a land-based casino downtown.
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Land-Based Casino: $450M – Mayor Emanuel has told aldermen in recent budget meetings that he plans to expend his political capital in Springfield on finally bringing a land-based casino to the City. Revenues would go toward funding police and fire pensions. Downtown business leaders have been for the casino, which they say would lead to more hotel stays, shopping and restaurant visitors. But it’s been a slog–Gov. Pat Quinn vetoed the mayor’s first try in 2012, saying he worried about city ownership and gambling industry influence on politicians. The Mayor might also get pushback from Chicago-area casinos who don’t want any more competition. Gov. Rauner has declared himself more open-minded than Gov. Quinn. Estimates about how much a Chicago casino would make vary based on different proposals floated in Springfield in May and June. According to state projections, a city-owned casino could generate at least $457 million a year, with more than $200 million of that to be paid to the state in taxes.
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Food Cart Licensing: $2M – An ordinance to license and regulate mobile food carts has passed in the License Committee without vocal objection. Approved vendors who pass Health Department inspection will have to pay a $350 license fee. A representative from the Illinois Policy Institute suggested revenue from licensing for all existing vendors, who currently operate illegally, could generate $2M, and grow to $8M, depending on penetration. It’s up for a vote in the Sep 24th council meeting, and has vocal support from License Chair Emma Mitts.
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Financial Transactions/Lasalle Street Tax: no estimate – A small tax on financial transactions like the selling and buying of stocks, bonds, and options has been floated by several aldermen, but would require Springfield approval. Chicago State Rep. Mary Flowers brought up a .01% tax in the General Assembly in 2013. Her bill would have imposed a levy on any commodities and stocks transactions made on the Chicago Stock Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade and the Chicago Board Options Exchange. In 2011, Inspector General Joe Ferguson said a penny-per-transaction tax could generate $38M for Chicago. William Barclay, an economist advising the CTU, said a $1-to-$2 tax could raise up to $12 billion a year for Illinois. The Sun-Times Editorial Board called that $12 billion figure a fairy tale, and said the mayor was opposed.
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Corporate Income Tax: no estimate – Ald. Ameya Pawar (47), one of the driving forces behind the establishment of an independent financial office for City Council, has suggested easing the hit of a property tax increase by creating a corporate income tax for large businesses. He sees it as an alternative to a financial transactions tax, which he says would negatively affect pensions. The change would require Springfield approval. He says New York City has successfully implemented the tax without scaring big business away, but hasn’t suggested a rate or estimated revenue.
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Temporary Amnesty for Outstanding Debt to City: $1M-$7M – Under an amnesty program proposed by Mayor Emanuel, any individual or business that owes the City money for parking tickets and other violations and taxes from before 2012 will be granted amnesty for the penalties and interest previous tickets or violations have accrued. Individuals will still pay the ticket or fine value, but will receive amnesty from the penalties and interests associated with failure to pay. Previous programs in 2002 and 2009 collected between $7 and $8 million, but the Office of Budget and Management put out a conservative $1M revenue estimate.
- Restaurant Tax Increase: $25M – A possibility discussed by some lobbyists and aldermen, the city already has a quarter percent restaurant tax which brings in around $25M, the city could double it and call it a "progressive" tax, since most restaurant-goers have more discretionary income.
City Revenue Proposals Cheat Sheet
The Joint Committee on Administrative Rules reviewed and entered no objection to 29 rules submitted by Illinois agencies Tuesday, only pausing briefly to act technical questions on new rules on renewable energy, energy efficiency and teacher and principal licensing. The hearing, held in a substitute fifth floor auditorium in the Bilandic Building in Chicago, as the normal hearing room was taken by separate hearing on pensions.
JCAR Approves 29 Rules With No Objections
Democratic Legislators Call For Halt To Voter Registration Interstate Crosscheck Program
No Objection For 29 Rules Expected For JCAR
Today we’re excited to announce that Aaron Bailey is joining The Daily Line as our Chief Technology Officer. This is a significant step for us as we prepare work to bring more data and better overall services to our subscribers.
Especially for our readers, the future of news is in providing more and better data, since you tend to be already highly informed and are often just looking for that one piece of information that will change your decision making. We already have excellent data journalists on our team, as Rae Hodge just earned a Master’s Degree focusing on data journalism, and Claudia Morell has been employing some great tools as part of her regular reporting.
We’ve got some big plans that involve adding new services for subscribers, so we’re bringing in Aaron, who has the development experience to bring them everything together.
Our team first got to know him in 2004 as one of Chicagoist’s first writers and Aaron has an extensive background in digital news. He spent the last two decades at the intersection of media and technology, directing digital strategy for companies such as National Review, NBCUniversal and Washingtonian Magazine. Most recently, he founded and then sold 601am, a digital agency and software startup that provided solutions to media organizations and large publishers.
Thank you again for reading and subscribing to The Daily Line. We love what we do, and we’re looking forward to bringing you some exciting work!
Mike Fourcher
Publisher
Introducing Our New Chief Technology Officer, Aaron Bailey
With yesterday’s official campaign launch by Sharon Fairley, there are now officially three major Democratic candidates running for Illinois Attorney General, with a fourth expected to announce soon. Behind the scenes candidates are scrambling to assemble their campaigns, ensuring they have team members with relationships and operational skill to help them get to victory on March 20, primary day.
Democratic A.G. Campaigns Assemble Teams
Twelve commissioners backing the deal removes Preckwinkle’s ability to veto it, meaning when budget hearings begin on Oct. 23, commissioners will have to look for ways to either cut $200 million of county services or raise a commensurate amount to fill the gap. The hearings won’t be pleasant, to be sure.
As Chicago and Cook County have been hit with a growing wave of new taxes, the soda tax seemed to be the one where residents began to really complain.
But after decades of relatively low taxes–yes, you heard me right–Chicago and Cook County citizens are discovering somebody has to pay for all the stuff we’ve got here.
For decades, Chicago and Cook County have been dodging the taxman, as former Mayor Richard M. Daley and former Cook County President Todd Stroger did everything they could to avoid property tax increases. To this effect, Daley, Stroger, and now Mayor Rahm Emanuel have layered on a blizzard of little taxes. Like a garbage tax, red light cameras, water tax, bag tax and a 911 tax.
A 2014 study of property taxes around Illinois by the state’s Commission on Government Forecasting and Accountability found that Cook County property owners had on average considerably lower property tax rates than the rest of the state.
While most of Illinois was paying a property tax rate just over 8%, Cook County residents were paying something closer to 7%.
While this might be news to most Cook County residents, downstaters are acutely aware of it. During last summer’s debate over education funding, witnesses regularly testified how they were paying sky high property taxes to keep their schools open. One downstate school superintendent testified he paid $8,000 a year on a $300,000 house..
That means if Cook County residents, and Chicagoans in particular, have a gripe about their taxes, the rest of the state will not give a hoot.
While Cook County will likely need to fill a $200 million hole for next year, Chicago’s got a much bigger bill coming due: Chicago Public Schools probably (they aren’t telling) have millions of dollars of debt payments. Police reform will also cost tens of millions. And then there’s the big daddy: steadily increasing pension payments with a big jump scheduled for 2019.
That’s just local. The state has some big bills to pay too. starting with a $16 billion backlog. That’s not to mention the suffering higher and local education systems that are still radically underfunded compared to most states, despite last summer’s big education reform.
And government is smaller than ever. After the cuts of the early 2000s, Illinois’ state government is smaller than it’s been in decades. Emanuel has cut thousands of city positions since he took office in 2011. So has President Preckwinkle. Waste, fraud and abuse, while ever present, aren’t our problem. It’s that we have to pay for what we use.
On Wednesday, Oct. 18, Emanuel will introduce his budget, which reportedly has a $259 million gap. You can be sure he’s been watching the beverage tax debate closely for tips.
Beverage Tax First of Many To Be Proposed
Seeking to set the terms of negotiation before next week’s vote to repeal the county’s beverage tax, Cook County Board President Toni Preckwinkle introduced a proposed $5.36 billion budget for fiscal year 2018. The keystone of the budget, an estimated $200 million in revenue from the sweetened beverage tax that took effect only a month ago, seemed likely to be repealed in vote scheduled for next week as the Board’s Finance Committee Chair, and Preckwinkle’s most stalwart ally, Comm. John Daley (D-11), announced plans Thursday afternoon to support the repeal of the tax.
Preckwinkle’s Proposed $5.36B County Budget Depends on Beverage Tax With Uncertain Fate
Mayor Rahm Emanuel has selected Cook County Circuit Court Judge Patricia Banks to serve as the new chief administrator for the city agency in charge of handling cases of police misconduct. On Monday, Civilian Office of Police Accountability Administrator Sharon Fairley officially formed a campaign committee for Illinois Attorney General, leaving a leadership vacuum at the agency less than a month after its official launch.
Emanuel Names Circuit Court Judge As Interim COPA Chief
Governor Bruce Rauner signed pro-choice measure HB40 Thursday, immediately setting off celebrations among abortion advocates and allegations of betrayal from some Republicans and pro-life activists. The move by Rauner, which he announced in a somber Thompson Center press conference in front of eleven women pro-choice activists, but none of the bill sponsors, immediately drew a series of angry responses from conservative legislators, some threatening to support a pro-life governor candidate in the spring.
Gov. Rauner Signs Bill Ensuring Abortion Stays Legal In Illinois; Sets Off Conservative Revolt
Are Chicago And Cook County Ready To Raise Taxes Again?
Chicago & Cook County Campaign Finance Reports
Every Friday we present some of the most interesting campaign finance reports from Chicago and Cook County. All A-1s are within the last 7 days. There are no new D-1s to report this week.
Cook County Candidates
Committee | 6/30 COH | Contrib Since 9/30 | Potential Cash |
---|---|---|---|
31st Ward Democratic Organization | $515,482.10 | $141,450.00 | $656,932.10 |
Friends of Dorothy Brown | $1,602.74 | $4,300.00 | $5,902.74 |
Committee to Elect John P Daley | $5,093.14 | $0.00 | $5,093.14 |
Committee to Elect Maria Pappas | $87,053.40 | $0.00 | $87,053.40 |
Citizens for David Orr | $149,341.00 | $0.00 | $149,341.00 |
Friends for Fritz | $83,661.38 | $57,900.00 | $141,561.38 |
Citizens for Edward Acevedo | $12.37 | $0.00 | $12.37 |
Friends of Peter Gariepy | $51,743.70 | $7,700.00 | $59,443.70 |
4th Ward Democratic Org | $28,737.43 | $0.00 | $28,737.43 |
Citizens for Dart | $24,197.21 | $0.00 | $24,197.21 |
Citizens for Jerry \Iceman" Butler" | $1,359.02 | $0.00 | $1,359.02 |
Suffredin for Cook County | $1,438.83 | $0.00 | $1,438.83 |
Goslin Campaign Comm | $84,971.12 | $0.00 | $173,144.65 |
Citizens for Timothy O Schneider | $96,902.99 | $0.00 | $96,902.99 |
Friends of Robert Steele | $0.00 | $0.00 | $0.00 |
Citizens for Deborah Sims | $19,743.14 | $39,800.00 | $59,543.14 |
John Fritchey for Us | $55,293.30 | $2,500.00 | $57,793.30 |
Voters for Sean M Morrison | $67,489.11 | $0.00 | $67,489.11 |
Preckwinkle for President | $441,432.86 | $65,000.00 | $506,432.86 |
Citizens for Bridget Gainer | $674,722.37 | $2,500.00 | $677,222.37 |
Friends of Jeffrey Tobolski | $351,989.47 | $79,800.00 | $431,789.47 |
11th Ward Democratic Party Campaign Committee | $79,580.64 | $0.00 | $79,580.64 |
Friends of Dennis Deer | $0.00 | $5,500.00 | $5,500.00 |
Friends of Richard Boykin | $81,508.57 | $28,000.00 | $109,508.57 |
Friends of Ed Moody | $159,065.06 | $46,800.00 | $205,865.06 |
Committee to Elect Joseph Berrios Assessor | $1,123,201.87 | $1,500.00 | $1,124,701.87 |
Citizens for Luis Arroyo Jr | $41,991.86 | $35,000.00 | $76,991.86 |
Silvestri for Cook County Commissioner | $120,956.18 | $1,100.00 | $122,056.18 |
Citizens to Elect Karen Yarbrough | $55,653.91 | $10,982.50 | $66,636.41 |
Friends of Chuy Garcia | $28,541.32 | $11,500.00 | $40,041.32 |
Friends of Stanley Moore | $10,335.47 | $29,400.00 | $39,735.47 |
Friends for Donna Miller | $1,423.56 | $1,000.00 | $2,423.56 |
Friends of Charise Williams | $0.00 | $0.00 | $0.00 |
Cook County Candidates' A-1s
Committee | Amount | Date Filed |
---|---|---|
Friends of Dorothy Brown | $2,000.00 | 9/20/17 |
Friends of Ed Moody | $26,800.00 | 9/19/17 |
Friends for Fritz | $5,600.00 | 9/19/17 |
Friends of Richard Boykin | $1,000.00 | 9/19/17 |
Friends of Richard Boykin | $1,000.00 | 9/19/17 |
Friends of Richard Boykin | $1,000.00 | 9/18/17 |
Friends of Richard Boykin | $8,000.00 | 9/18/17 |
Citizens to Elect Karen Yarbrough | $9,482.50 | 9/18/17 |
Friends of Richard Boykin | $10,000.00 | 9/18/17 |
Friends of Richard Boykin | $2,000.00 | 9/18/17 |
Friends of Richard Boykin | $5,000.00 | 9/18/17 |
Citizens for Deborah Sims | $28,300.00 | 9/15/17 |
Friends for Fritz | $1,000.00 | 9/15/17 |
Citizens for Deborah Sims | $2,500.00 | 9/14/17 |
John Fritchey for Us | $2,500.00 | 9/14/17 |
Friends of Ed Moody | $1,000.00 | 9/14/17 |
Aldermen and Democratic Committeemen's A-1s
Committee Type | Committee | Amount | Date Filed |
---|---|---|---|
Candidate | Hopkins for Chicago | $1,500.00 | 9/20/17 |
Candidate | Citizens to Elect Willie B Cochran | $1,200.00 | 9/20/17 |
Candidate | Friends of Matt O'Shea | $1,100.00 | 9/20/17 |
Candidate | Citizens for Patrick O'Connor | $2,500.00 | 9/20/17 |
Candidate | Hopkins for Chicago | $1,500.00 | 9/20/17 |
Political Party | 14th Ward Regular Democratic Org | $12,500.00 | 9/19/17 |
Political Action | The Burnham Committee | $20,000.00 | 9/19/17 |
Candidate | Hopkins for Chicago | $22,500.00 | 9/19/17 |
Political Party | 19th Ward Democratic Org | $2,000.00 | 9/19/17 |
Candidate | Friends of Anthony Napolitano | $1,800.00 | 9/19/17 |
Candidate | Carlos for Chicago | $1,000.00 | 9/19/17 |
Candidate | Friends of Michele Smith | $1,500.00 | 9/18/17 |
Candidate | Friends of Matt O'Shea | $5,000.00 | 9/18/17 |
Candidate | Citizens for Ariel E Reboyras | $6,500.00 | 9/18/17 |
Candidate | Friends of Raymond A Lopez | $1,500.00 | 9/18/17 |
Candidate | Citizens for Waguespack | $10,000.00 | 9/18/17 |
Candidate | Citizens to Elect David Moore | $3,500.00 | 9/18/17 |
Candidate | Friends of Gilbert Villegas | $11,500.00 | 9/17/17 |
Candidate | Summers for Chicago | $6,640.00 | 9/16/17 |
Political Party | 13th Ward Democratic Org | $58,700.00 | 9/16/17 |
Political Party | 41st Ward Regular Republican Org | $1,300.00 | 9/15/17 |
Candidate | Citizens to Elect Willie B Cochran | $3,000.00 | 9/15/17 |
Political Party | 6th Ward Democratic Org | $2,000.00 | 9/14/17 |
Political Party | 23rd Ward Regular Democratic Organization | $1,000.00 | 9/14/17 |
Chicago & Cook County Campaign Finance Reports
Democrats Line Up To Fight A Ken Dunkin Return to House Seat
I have some experience putting together an attorney general campaign. In 2009, then-State Rep. Julie Hamos (D-Evanston) hired me to build a statewide campaign operation for the 2010 primary. Lisa Madigan, who was still attorney general back then, announced her intention to run for governor in 2010. She subsequently built a large fundraising campaign and asked pols from across the state to commit to her campaign. Mirroring Madigan’s operation, I helped then-Rep. Hamos criss-cross the state, attend Democratic county chair barbeques and make calls to donors.
Then, with little warning, Lisa Madigan announced in mid-July 2009 that she wasn’t running for governor. Hamos, not interested in running against Madigan, folded her attorney general campaign and ran for Congress instead. She lost that campaign, and retired from the General Assembly.
Eliciting deja vú, Madigan ran a similar script in 2013, publically considering a run for governor. That time, State Sen. Kwame Raoul (D-Chicago) began building a campaign operation for attorney general. Then, suddenly, without warning, Lisa Madigan announced that she wasn’t running for governor and prefered remain as attorney general. Raoul, as Hamos did four years before, stood down his campaign. He’s still a state senator.
What I learned, as did Julie Hamos and I’m sure Sen. Raoul as well, is that building an Illinois statewide campaign is a tremendous task. The state is big. You can drive from one end to the other in a day, but if you’re going to do events, you need to work hard to clump them together within a couple hours drive of each one.
You have to raise a ton of money. A competitive primary campaign will cost $3 to $5 million in 2018, consultants told me this week. The attorney general’s office does not have a natural constituency like governor does, so fewer PACs and lobbyists will want to contribute big dollars to A.G. campaigns.
As a result, primary candidates end up depending on a pool of wealthy, issue-driven donors for a large portion of the fundraising. But even before you get to the “big dollar” people, primary candidates need to demonstrate that they can raise the first $1 million or so from their own base–a large group of people who like them enough and their chances to win that will give a primary candidate multiple $5,000 checks.
For Hamos’ 2009 campaign and in Sen. Raoul’s case in 2014, they had the spring and summer months to put together a campaign operation and get to know donor and party leaders.
Whoever runs now, will need to compress months of handshaking and dealmaking into weeks. They will need a fundraiser and a campaign manager that already have donors and party leaders on speed dial. And they will need a base of supporters who will be able to quickly gather 5,000 to 10,000 high quality signatures for their ballot petitions by the December 4 deadline.
This goes for Republicans as well as Democrats.
Yes, Erika Harold, the former 2003 Miss America from Urbana, is the “establishment” GOP candidate. But until today, she was expected to be a sacrificial lamb. Now that it’s an open race, every Republican state legislator and county official who wants to go up the ladder will be eyeing her seat.
The Republican rush to retire from the General Assembly is evidence enough–plenty of people want out. Now who has enough juice to quickly raise $1 million and attract top flight talent in quick order?
DuPage County Chair Dan Cronin and Kane County State’s Attorney Joe McMahon are Republican names that kept coming up yesterday, as well as State Sen. Karen McConnaughay from West Dundee. More are sure to come.
On the Democratic side, because he’s recently been through the drill, Sen. Raoul is expected to announce plans to run. State Rep. Ann Williams from Chicago’s North Side, has expressed interest, as has McHenry County Chair Jack Franks. Cook County Sheriff Tom Dart is a potential candidate, and former CPS CEO Jesse Ruiz refused to rule out a run to me in an email Friday afternoon.
“No one lets the body get cold before the dirt is piled on,” said one person I contacted Friday, who denied interest in running.
Maybe so, but with such a compacted schedule to stand up a campaign and secure crucial support, we could know all the primary candidates before the end of next week.
This article was updated with the correct date of the primary election.
It Will Be Harder Than Usual To Run For Attorney General This Cycle
Every Friday we present some of the more interesting campaign finance information. Unless otherwise stated, reports are from the last 7 days.
Campaign Finance Tracking
CPS Trumpets Closed Deficit, But Questioning Reveals Possible Gap of $674M
While four new Chicago and Cook County campaign accounts were created this past week, the biggest news was the creation a mayoral exploratory committee for former Chicago police superintendent Garry McCarthy. Because committee chair, Brian McCormack, was not answering calls or texts to his cell phone yesterday, The Daily Line was unable to confirm whether or not the committee was created at McCarthy’s behest.
Campaign Finance Reports: Garry McCarthy Exploratory Cmte. Chair Is Leading Pot Grower
A major set of new rules for retail electricity marketing were approved without objection and a proposed rule for community colleges was postponed for 45 days in Tuesday’s Joint Committee on Administrative Rules meeting.
JCAR Approves Major Retail Electricity Marketing Rules
Quiet JCAR Meeting Expected Tuesday To Approve New Electricity Supplier Rules
Rundown Of Bills Signed Friday
Last winter, it seemed for a time that maybe Chicago Public Schools wouldn’t start on time. The school district projected an operating deficit of hundreds of millions of dollars, state payments were half a year behind and the Illinois legislature seemed unlikely to kick forward the millions of dollars CPS needed to stay open. But this week CPS leadership took a victory lap, as classes started on time and the school district touted rising graduation rates and improving test scores.