Progress Illinois

The Windy City edition of the New York Times debuted today, featuring an article on the controversial parking meter lease from veteran City Hall reporter Dan Mihalopoulos, now with the Chicago News Cooperative.

In his report, Mihalopoulos digs into the books of Chicago Parking Meters LLC, the private company that now controls the city's meters under a 75-year, $1.15 billion deal with the city. He found -- not surprisingly -- that the company's profits are growing steadily, generating $1.1 million per week, thanks to the higher rates they instituted after taking over the system.  With more gradual increases on the way, the company is projected to collect $46.9 million this year and $79.5 million in 2010.

The most candid remark in Mihalopoulos' piece came from Ald. Rey Colon (35th Ward), who was one of five aldermen to vote against the 2008 ordinance approving the parking meter deal:

Another of the naysayers on the Council, Rey Colon, said this week that the parking meter company’s own numbers showed that aldermen should have raised parking charges and kept the money that the increases would have generated.

“At this rate, it was a great deal for the parking meter company,” he said. “I don’t know if it was a good deal for the city. We should have just bit the bullet and done it ourselves.”

Mayor Daley and some of the aldermen who supported the deal like to make the argument that the city could not have "bit the bullet and done it ourselves" for political reasons.  They further argue that their chosen path -- offloading the responsibility for the system to a private company (who then raises the rates) in return for an immediate windfall -- was a safer approach.  But was it? 

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After the Cook County Board of Commissioners finally agreed yesterday to fund foreclosure mediation services, housing advocates are celebrating the move as "a huge step" towards stemming the problem.

As regular readers know, it's been a tough slog for those community activists -- led by the group Action Now -- who've been pushing the county to devote more resources to mediation -- a proven method of staving off foreclosure. By a vote of 16 to 1, the board approved a $3 million budget amendment introduced by Comm. Earlene Collins (D) at the behest of Board President Todd Stroger and Cook County's Chief circuit court Judge Tim Evans (Republican Comm. Tony Peraica was the lone dissenter).

Like elsewhere in the state, foreclosures continue to pile up in Cook County.  During a roundtable on WTTW's Chicago Tonight yesterday,  MB Bank Vice President Thomas FitzGibbon noted that one of the biggest challenges in enabling mortgage modifications is getting through the daunting paperwork. "Having a neutral third party helping that consumer, helping that household, fill out the documents is an extremely important part of this whole process," said FitzGibbon, who also sits on the board of the non-profit Neigborhood Housing Services. "Seventy percent of the applications for this service -- for this help that we send out to consumers who we know are in trouble -- never comes back." Watch his remarks (full video here):

Once up and running, Cook County's program will help fill this void.

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The Chicago City Council held its full monthly meeting yesterday.  We've got some of the highlights:

Budget Priorities Take A Beating

All eyes have been on Mayor Daley's 2010 spending plan as of late, which relies on $370 million from the city's asset-sale proceeds to help balance next year's $6.14 billion budget. Despite this windfall, the safety net is still going to take a hit.  During the public portion of yesterday's meeting, several social service providers testified in favor of restoring the cuts to substance abuse and mental health funding. As regular readers may recall, the city's 12 mental health clinics will lose an additional $3 million in state funding this year because of the Daley administration's own incompetence at implementing a new $16 million billing system.

In response, Ald. Joe Moore (49th Ward) voiced support for rescinding the cuts and blasted Daley's "property tax relief" gimmick -- a plan introduced yesterday to pull $35 million from a reserve fund created by the parking meter lease to refund some taxpayers between $50 and $100 on their bills. "What impact is that going to have on those homeowners lives? It's very negligible," Moore said. "I think you're going to get a lot more bang for your buck by helping the mentally ill lead productive lives through counseling and other support services."  Listen:

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Ald. Moore isn't the only one slamming Daley's meager property tax rebate.

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A few months back, a coalition of community activists from across Chicago met at City Hall to call out the Daley administration for investing so few tax increment financing (TIF) dollars in affordable housing. After all, over the past decade, a mere 4 percent of the economic development money has gone towards such projects. That's despite the fact that home construction and the stabilization of housing stock can be key drivers in the rejuvenation of blighted communities. But instead of using substantial amounts of the money for these purposes, regular readers know that Mayor Daley has more often played favorites and doled out money to deep-pocketed corporations to subsidize their swank office renovations.

With the Sweet Home Chicago coalition at their back, Alds. Walter Burnett (27th Ward) and Manny Flores (1st Ward) have taken the lead in proposing that a larger chunk of the money -- 20 percent of TIF revenue collected each year -- is committed to affordable housing projects.  These new and rehabbed developments would address the city's housing imbalance by setting aside apartments for low- and moderate-income families (earning $37,700 a year or less) who are priced out of decent housing in a growing number of Chicago communities.

Yesterday, the coalition of community groups gathered in in Uptown where they highlighted some of the blighted buildings that could benefit from greater TIF investment. "We need this housing," neighborhood housing activist Laverne Johnson said, pointing to her neighbors' sub-standard living conditions. "We are all suffering." Watch:

So far, five aldermen have signed on to the ordinance. Once it has 15 supporters, the measure will go to the full City Council. The Sweet Home Chicago organizers are working on drumming up more support in wards throughout the city. "Until you have pressure from the outside," co-sponsor Ald. Joe Moore (49th Ward) tells us, "the conversation won't happen."

Mayor Daley appears to be feeling the pressure to come clean about his plans to spend the city's $1 billion tax increment financing (TIF) surplus.  As regular readers know, the city's unprecedented budget shortfall has opened the door to some long-overdue questions about why the public funds ($495 million in 2009 to be exact) siphoned off the tax rolls each year aren't folded into the public budgeting process. On Friday, Daley went on the offense, citing a recently-renovated bridge as an example of how the TIF system isn't shadowy at all, but rather an expansive public works campaign that's unfolding in plain sight. From the Tribune's report:

Aldermen who want greater control over how tax increment financing funds are used in their wards are "beating the heck out of us" without appreciating how the money has improved their neighborhoods, Daley said at an event to mark repairs on the Cherry Avenue bridge connecting North Avenue to Goose Island. The bridge renovation was funded in part using $3.75 million collected from a special taxing district in the area, where property tax collections were frozen to help finance infrastructure repairs [...]

"Some of the aldermen are questioning it. That's why they're not here today, to be very simple. Because they don't think it should be used for this purpose," Daley said.

For the past year, we've been following the TIF debate very closely and have yet to hear an alderman protest the use of the funds on a public works project. What's come under fire is the fact that the money is being doled out in secret -- and often in the form of corporate welfare --  at a time when public services have been slashed and property owners taxed to the hilt.

Moreover, most aldermen probably aren't so fond of how the mayor uses his control of the TIF honey pot to keep them in line.

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After watching again and again as Illinois lawmakers relied on financial gimmicks to pay for core services, budget experts knew it was only a matter of time before Springfield would be forced to confront the state's ballooning structural deficit.

Last week, the Pew Center on the States confirmed that the moment of reckoning is near, ranking the Land of Lincoln among 10 states now on the brink of financial peril.  The Pew researchers recounted how Illinois lawmakers -- in order to avoid generating more revenue by modernizing the income and sales tax systems -- have resorted to short-sighted budget maneuvers, such as delaying bill payments and skimping on the state's annual pension contributions.

Now the nation is in a recession and those bills are coming due, leaving Illinois' an estimated $12.8 billion in the hole in FY 2011.

"It's like a balloon mortgage," University of Illinois at Chicago public policy professor Michael Pagano explained during a budget roundtable on WTTW's Chicago Tonight last Thursday. "At the end of the period you have to make a big payment for what you've been consuming. We've now been consuming a lot of state resources for the past eight years without paying for them." Watch it (full video here):

For some perspective consider this: On a per capita basis, Illinois is one of the lowest-spending states when it comes to core services.  Yet we still can't generate enough revenue to cover our obligations.  Why?  Because we are one of a mere mere seven states with flat income tax system.  Moreover, our 3 percent rate remains lower than the other six (Colorado: 4.63 percent, Michigan: 4.35 percent, Tennessee: 6 percent, New Hampshire: 5 percent, Pennsylvania: 3.07 percent, and Utah: 5 percent).

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Over the past year, Capitol Hill has been portrayed as ground zero in the health care debate. But the heart of the fight was never in D.C. Rather, it was in the millions of households across the country, where the uninsured and the underinsured live in fear, knowing that they can't afford to get sick or even find insurance companies willing to enroll them because of pre-existing conditions. Just a week after the House passed landmark legislation to finally change that, Democratic U.S. Rep. Bill Foster was back in the 14th District today. There some of his constituents made the case for why the nation can't afford to wait any longer to see those reforms through.

"My husband and I, we've done everything right," Amy Ruppert of Batavia said, "We don't have any outstanding debt. We've paid all of our bills." But with her COBRA plan set to expire within months and a pre-existing condition prohibiting her from buying into a new plan, "we will be one step away from catastrophic financial devastation," she said. Watch:

Over the past two weeks, we've been covering some intense efforts by Chicago-area who want to see Cook County set aside some of the millions in foreclosure filing fee revenue for mediation services.  After a year of unsuccessfully trying to get a meeting with County Board President Todd Stroger, the group Action Now finally sat down with Chief Judge of the Cook County Circuit Courts Tim Evans earlier this week, who pledged to recommend such an initiative to the board president. 

It looks like the organizers' hard work may be paying off.  Action Now informed us today that Stroger is currently circulating a budget amendment that will set aside $3 million next year to bolster much-needed foreclosure mediation and prevention efforts. Of that, $1.3 million will go toward outreach and adding legal staff to a foreclosure hotline. The remainder will go directly toward funding additional court and mediation staff.

Action Now's Aileen Kelleher tells us that the remaining question is whether the amendment will survive if the board succeeds in passing a partial repeal of Stroger's controversial one-percent sales tax hike, which is on their agenda this coming Monday. "We have to keep up the pressure on elected officials to see that this stays in the budget," Kelleher adds.  Check back for more details on Monday afternoon.

(CORRECTION 11/16: This post originally stated that Comm. Larry Suffredin had also introduced a $1.3 million foreclosure prevention amendment. It turns out that the measure is for the functioning of the county courts, not exclusively for foreclosure-related services. We regret the error.)

Amid reports about Wal-Mart's renewed effort to move back into Chicago, editorial boards and local media figures resorted to a familiar refrain: that people in low-income communities should simply be grateful for any new jobs.  Ald. Howard Brookins Jr. (21st Ward) has also pushed the argument that Wal-Mart's poverty wages are perfectly sufficient, despite the fact that he is one of several aldermen who refused to take unpaid furlough days from his $110,000 (part-time) job, claiming at the time: "I can't afford it." The hypocrisy is staggering.  But don't hold your breath waiting for the local media call him out on it.

Just as the debate resumes over whether to allow Wal-Mart to expand in the city, the Grassroots Collaborative has released an analysis (PDF) of newspaper coverage during the thick of the historic big box living wage fight back in 2006.  They found that the coverage largely excluded the perspective of  people directly impacted by a potential Wal-Mart expansion: politicians and business leaders made up 75 percent of the 380 quotes identified in the study, while community groups and residents had only a 6 percent say.  More from the report:

The most frequent frames to characterize the Living Wage debate focused on its potential negative effects. Other common frames discussed the ordinance as a political power-play between city and labor leaders. These frames would leave readers with the impression that the living wage was an idea manufactured and pushed exclusively by union leaders, unsupported by or unimportant to ordinary working people and met with unified predictions of economic doom from the business community and city officials.

As we've pointed out before, the living wage fight isn't is about families' financial security and good public policy.

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Earlier this month, the White House called out some suspect lobbying by the U.S. Chamber of Commerce. Just a year after the national business lobby was more than willing to bend its free-market philosophy to help big business snag its share of the federal bailout, presidential advisor Valerie Jarrett noted their awfully "self-serving" position in favor of protecting big polluters and health insurance companies from government regulation. In fact, the chamber is so bent on weakening climate change and health care reforms that they shelled out $34.7 million on lobbying between July and September alone. Encouragingly, some of the group's most high-profile members -- including Apple, Nike, and Illinois' own Exelon -- have quit the business lobby in protest. As the chamber met for a regional conference on government affairs in downtown Chicago today, more business owners and environmental activists came out to make it clear that they too think the chamber's positions are out of step with its members' priorities.

"We hope that they learn something here in Chicago," Jack Darin of the Illinois Sierra Club said, "that Americans here in Illinois,  in the heartland of America, they don't want the status quo, they want change. They want health care, they want workers' rights, and they want clean energy solutions for America." Watch:

Despite the denials made by the corporate lobby (and the Illinois GOP), there's plenty of evidence demonstrating that the Midwest will soon face peril because of its disastrous environmental habits. Even more emerged today.

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