* ADDED: Documents: Law school billed U. of I. for $300K in ’scholarship support’

* ADDED: Squeeze on law school

* ADDED: U of I starts sending documents to U.S. Attorney

* Judge knocks lawsuit over developmentally disabled

A federal judge this week gutted a lawsuit aiming to force the state to give thousands of developmentally disabled people the choice of moving out of large group facilities and into smaller community homes.

In his ruling, U.S. District Court Judge James F. Holderman said the suit was overly broad, affecting people who don’t want to move to smaller facilities.

Representatives from Equip for Equality, an advocacy group for the developmentally disabled, said they were disappointed by the judge’s ruling, but called it a “temporary setback.”

Equip for Equality’s Barry Taylor noted that Holderman didn’t dismiss the lawsuit, but instead stripped it of class-action status; that means any resolution of the current lawsuit would affect only the nine original plaintiffs and not thousands statewide.

* Bodies unearthed at Alsip cemetery

Five employees of the historic Burr Oak Cemetery in Alsip were taken into custody Wednesday after authorities learned numerous bodies had been dug up and the grave sites were illegally resold, Cook County Sheriff Tom Dart said.

Detectives discovered a pile of bones — from more than 100 decomposed bodies — above ground and uncovered in an overgrown, fenced-off portion of the cemetery, Dart said.

“What we found was beyond startling and revolting,” the sheriff said.

* Every family’s nightmare: Burr Oak Cemetery graves allegedly stripped for profit

Officers raided the cemetery, at 4400 W. 127th St, in Alsip, Wednesday morning. Five people were taken into custody…

“We thought it would be straightforward financial theft. We found out that graves were being opened and remains were disinterred and removed,” he said.

Dart believes the scheme has been going on for about four years.

* 350 dogs seized in dogfighting raids in 5 states

* Attorney General drops charges against 2 former Burge suspects

The Illinois Attorney General’s office says prosecutors are dropping charges against 42-year-old Ronald Kitchen and 50-year-old Marvin Reeves. The two men were convicted of killing two women and three children in 1988.

Their case was based largely on Kitchen’s confession, but he’s long maintained that he was tortured into the admission. The men were granted a new trial, but Attorney General Lisa Madigan’s deputy chief of staff says her office couldn’t meet the burden of proof and justice required the men’s release.

* Daley defends police efforts to stem violence

Daley said Tuesday, long holiday weekends are usually difficult for police. He added that concentration of police at the Taste of Chicago was not behind the lawlessness that erupted elsewhere in the city.

Eleven people were killed and at least 30 others were wounded in shootings and stabbings during the holiday weekend. According to authorities, it was among the city’s deadliest weekends in recent years.

According to police, some of the slayings appeared to be gang-related, while others may have resulted from domestic disputes. Many of the victims had criminal records.

Daley said the violence was a reminder the city must do everything it can to fight gangs, guns and drugs.

* Daley: Chief’s actions didn’t warrant termination

Mayor Daley acknowledged today that his outgoing personnel chief should have reported a letter from an alderman seeking to block a job transfer, but he said the “minor violation” did not warrant termination.

Nevertheless, Daley said he accepted the resignation of Human Resources Commissioner Homero Tristan because the “honest, hard-working” attorney did not want to become a “distraction” to the city’s efforts to implement a hiring system free of politics.

“He doesn’t want to be in the headlines. . . . He’s a wonderful young lawyer. He has good judgement. And he doesn’t want to be the ping-pong ball,” the mayor said.

Noting that Inspector General David Hoffman recommended that Tristan be fired, Daley said don’t “pit me against David Hoffman like David Hoffman is over here and the mayor is over [there]. . . . . I appointed him. I asked him to do the things that are necessary. So, don’t try to get him against me.’’

* Daley appeals to 3 hold-out unions to agree to cuts

Mayor Daley made a personal appeal to three hold-out unions today, but could not convince them to swallow cost-cutting concessions that would avert the need for 650 layoffs.

“No agreement, no movement, no nothing. They haven’t moved. … They don’t seem willing to compromise or entertain any other ways of saving money,” said Henry Bayer, executive director of AFSCME Council 31.

Lou Phillips, secretary-treasurer of Laborers Local 1001, said the mayor and unions leaders remain “at an impasse” with less than one week to go before Daley has threatened to pull the trigger on 650 layoffs.

“We don’t want to give up paid holidays. We negotiated for those years and years ago,” Phillips said.

He added, “You’re never willing to see people laid off. But, we can’t concede everything we’ve worked for.”

* Police union makes city budget suggestions

Davlin and the police union are close to reaching an agreement that would allow employees who are at least 50 years old and have 20 years of service to retire during a “pay spike” for the pay period that ends July 18 and is paid out on July 24, Davidsmeyer said.

Already, employees are eligible for a 5 percent bump in pay for one pay period twice a year around their work anniversaries and birthdays. After those pay periods, the employee’s pay returns back to normal. Employees who retire during bump periods can have their pensions based on the increased salary rather than their regular pay.

Davidsmeyer said offering a pay spike now is aimed at workers who are waiting to retire around their anniversary dates or birthdays later this budget year. Nineteen police department employees could be eligible for retirement, he said.

Retirements could reduce the number of layoffs at the department. Layoff notices already have been sent to 36 officers.

* City proposing cuts, freezes

PEORIA —

A one-year wage freeze for all union employees, cuts to arts and library budgets, the elimination of free landscape waste hauling and a new water utility tax highlight a list of solutions the city’s administration released Wednesday to resolve a $10 million budget deficit next year.

* Unions, Rockford ponder multiyear deal

Facing a deficit projected at more than $2 million in the city general fund, Morrissey is looking for structural changes in labor agreements that would lead to sustained budget savings.

That would mean significant concessions from unions representing about 570 public safety employees.

At least one proposed concession early this year was met with resistance from the unions and from the Rockford City Council.

Reducing the number of firefighters who man eight city fire engine companies from four to three would mean sustained savings for the city. Although it is a staffing level found in many cities the size of Rockford, firefighters rejected the notion during the buildup to the April election.

* Chicago school officials tout higher test scores

Even as he questioned the efficacy of Illinois’ standardized school tests Wednesday, Mayor Richard Daley touted modest gains made by elementary students in Chicago Public Schools who met or exceeded expectations on one of those tests this year.

The percentage of elementary students who met or exceeded standards increased by 2 points to 69.8 in 2009, with math scores for 3rd through 8th graders showing the sharpest increase, Daley said at a news conference.

But even as he and other school officials highlighted the score increase as evidence of progress, they also said that the tests were not necessarily a good indication of a student’s ability to succeed in the real world. Nationally administered tests consistently show Chicago scores near the bottom.

* Colleges won’t accept some kids’ ACT tests

Some Spanish-speaking kids and other immigrants enjoyed new versions of state achievement tests this year, including a DVD video version of the ACT college-admission test, officials revealed Wednesday.

The problem for kids is that colleges will not accept the ACT scores of juniors who, for the first time this spring, got to listen to the ACT math and science questions in Spanish while reading them on a computer screen in English.

* Daley: Stop throwing darts or risk losing Olympics

“In the next eight years of any city in America, tell me where the economic development is gonna come from. Is it gonna come from the military? The military builds in the south and southwest. It does not build in the Midwest and East,” Daley said.

“You tell me one economic program that anyone has offered — both in the private sector or public sector. Every other city would love to have this—when the federal government will spend billions of dollars on infrastructure and on security. Besides that, the national and global publicity we receive from the build-up all the way to 2016. This is the only economic engine. We’re talking about jobs. We’re talking about contracts…coming into Chicago.”

But, the mayor warned, “If people keep throwing darts at it, maybe they will not get it.”

Pressed on whom he believes is “throwing darts,” Daley said, “Did you read any headlines?” He added, “You beat us up.”

* ‘Throwing darts’ the only way to pin down full data on Olympics

The mayor has been casting about the last few weeks, trying to save his Olympic dream as the clock runs out. On Oct. 2, the International Olympic Committee will chose one of four cities — Chicago, Rio de Janeiro, Tokyo or Madrid — to host the 2016 Games.

But it’s the mayor himself who has put the city’s bid in jeopardy. At an IOC event in Switzerland last month, Daley said he would sign a host-city contract, putting the city on the hook financially for any Olympic losses. He did it without warning or City Council approval, generating a tidal wave of criticism back at home.

Daley then reversed course, saying he would put the issue before the City Council.

But dozens of questions remain — and they must be answered. We want the Olympics in Chicago, and we know the IOC won’t pick the city without Daley’s signature. But if taxpayers are at risk, it’s not worth it.

* What could it cost us, residents ask bid team

If anything, many of the 400 who packed the Southwest Side McKinley Park field house wanted to know what they stand to gain if the city wins the 2016 Summer Games.

* 1 in 4 Illinois adults is obese — a record

* New Des Plaines mayor making flooding problem a priority

* Hoffman Estates may take over Sears Centre

The 11,000-seat Sears Centre isn’t drawing the crowds Hoffman Estates officials once expected, so village leaders now are considering taking ownership of the struggling sports and music venue…

Opened in 2006, the Sears Centre is privately owned, though Hoffman Estates backed the $50 million loan used to build the structure near Route 59 and I-90. Its builder and primary owner, Ryan Companies, is obligated to pay for the center through 2010, but has approached Hoffman Estates about taking control after that, officials said.

“When the guarantee ends, the village anticipates it will be required to undertake a greater, overall financial contribution going forward,” Hoffman Estates officials said in their statement.

* Old Post Office goes on the block

* Want to put your stamp on old post office?

If Chicago hosts the 2016 Olympics, the building could house the entire Olympic Village and be sold off as condos afterward, suggests auctioneer Rick Levin, whose firm will oversee auction.

“I don’t think, in my career, I’ve seen a more underutilized piece of real estate,” Levin said. “To me, the biggest negative right now is it’s 2009. Financing is soft, and people are apprehensive about taking on projects.”

The building carries a suggested opening bid of $300,000 but no minimum bid, meaning it will go to the highest offer. To show their interest, registered bidders must submit a $250,000 cashier’s check. Losing bidders get their checks back; for the winning bidder, the check becomes earnest money, and any overpayment would be returned at closing.

* Rooftop power

A company founded by South Shore native George D. Sullivan on Tuesday won the exclusive North American rights to sell small wind turbines under the brand name Gentle Breeze.

* Retailers get jump-start on school, holiday sales

Retailers desperate for hard-to-get dollars are already advertising back-to-school sales, but Sears and Kmart may take the early-bird award for opening online Christmas shops.

* Public housing success stories

* Immunization classes reach out to immigrant communities

* University of Illinois at Chicago’s healing garden

* Illinois scientists to monitor soybean disease

* Ill. VA hospital fire forces patient evacuations

* 2 Illinois Guardsmen killed in Afghanistan

Two members of the Illinois Army National Guard have died this week while serving in Afghanistan.

Forty-one-year-old 1st Lt. Derwin Williams of Glenwood and 35-year-old Spc. Chester Hosford of Ottawa were killed Monday when their vehicle hit a roadside bomb in Kandu.

* Guard soldiers from Ottawa, Galesburg killed in Afghanistan

All were members of the Guard’s 33rd Infantry Brigade, a group of about 3,000 soldiers that has had 17 deaths during a yearlong deployment scheduled to end early this fall.

* Services set for civil rights leader Travis

A day-long visitation will be held Thursday for Dempsey J. Travis, 89, the historian and civil rights leader who died on July 2.