* Sun-Times…
The Chicago Public Schools’ inspector general is urging the Chicago Board of Education to fire schools chief Forrest Claypool, a longtime friend of Mayor Rahm Emanuel, for lying during an ethics investigation, sources told the Chicago Sun-Times on Wednesday.
Inspector General Nicholas Schuler recommended Claypool’s firing in a lengthy, still-secret memo he gave to Board of Ed members late Tuesday, the sources said.
In the memo, Schuler reported his findings from a 16-month ethics investigation of CPS’ top attorney that he found Claypool tried to block, according to the sources.
“Forrest made a mistake,” Emanuel said in a written statement Wednesday night. “There’s no question about that, and I take that very seriously. But he was also big enough to stand up, admit his mistake and publicly apologize for it. That says a lot about who Forrest is, and that’s the Forrest I know.
“These are serious allegations, and I know the board is reviewing them with the scrutiny they merit — but Forrest himself has already acknowledged the lapse in judgment and apologized for it. And I think we should all take a deep breath before making snap judgments about a man with a sterling reputation and a sterling record of public service.”
* Press release…
After a 16-month CPS Inspector General’s investigation and news reports of disturbing ethics infractions, Attorney General candidate Jesse Ruiz is calling on Forrest Claypool, the Chief Executive Officer of the Chicago Public Schools, to resign immediately.
“I am calling on Forrest to do the right thing and resign from his post as CEO of Chicago’s Public Schools,” said Ruiz, who served for more than four years as Vice President of the Chicago Board of Education and also served as Interim CEO of Chicago Public Schools. “Repeatedly misleading the Inspector General is unacceptable, especially at a time when trust in our government is at an all-time low. The people of Chicago expect our leaders to always set an example of integrity and not violate the public trust. Forrest has failed this test.
“From day one, I blew the whistle on the conflicts of interest that led to this investigation,” Ruiz added. “At every point, Mr. Claypool has stonewalled the Inspector General’s investigation, and his actions must have consequences. He should resign immediately.”
The CPS investigation has centered on whether Claypool acted improperly in urging the Board of Education to retain a law firm, even though the CPS general counsel’s ongoing financial relationship with the firm violated the school system’s conflict of interest policy.
When CPS ethics officers attempted to intervene, Claypool overruled them. Since then, the CPS Inspector General has repeatedly criticized Claypool for setting up roadblocks to interfere with the ongoing ethics investigation and for making repeated misstatements in interviews with investigators. Claypool has since apologized for those misstatements.
*** UPDATE *** From Forrest Claypool…
“I made a mistake. I can’t put my mind back in that high pressure place–when we were negotiating with the CTU and fighting to keep schools funded and open in the final days of the legislative session. But I look at the facts today and see that I misread the situation, and made mistakes in judgment, and I apologize for this.
“I pursued the goal of keeping schools open with the same single-mindedness with which I pursued every public position I’ve held over nearly 30 years. Like anyone else, I’m embarrassed by my mistakes, but remain proud of how we’ve moved this system forward despite seemingly insurmountable financial hurdles.
“However, let’s be clear about what this situation is and what it isn’t.
“This is not a case of anyone profiting off of CPS; no one in this story gained a dollar. This is not a case of anyone taking anything from children; this is a case of fighting to get more resources for children. In fact, the only ones who profited from this pursuit of justice were our students, who have another $450 million of funding from the state due to the efforts our team.
“To put this in perspective: This situation is about how I zealously tried to get Chicago students their fair share of state education dollars, after years and years racial discrimination, and getting those kids the best possible legal representation.
“While I continue to have a strong disagreement with Mr. Schuler’s interpretation of the Board policy – which I believe was written to prevent profiteering off the schools – I have already acknowledged that in my desire to ensure the best possible legal representation, and keep public attention focused squarely and solely on the civil rights injustice against CPS kids, that I mishandled some matters.
“I have fully acknowledged my mistakes in judgment and apologized. I apologize again today. But I do not regret the passion for justice that led to that mistake. I will always fight hard to ensure that CPS children, regardless of race or income, receive the educations they deserve.
“With apologies for errors I made along the way, I stand proud of the work I’ve done at CPS and throughout my career in service to the City of Chicago, to give its residents better parks, better trains and buses, and, most importantly, the best schools.”
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* Background is here. Press release…
Chris Kennedy, Democratic candidate for Governor, called on Joe Berrios to step down from his position as Cook County Assessor following another Chicago Tribune investigative piece on how the Cook County property tax assessment system is rigged against Cook County taxpayers. Kennedy released the following statement:
“The property tax racket run by Joe Berrios and political insiders needs to end and it needs to end today. Berrios has used the property tax system that is defunding our public schools, defunding our social safety net, and defunding efforts to end gun violence as means to keep the political machine in power and enrich the entitled, politically connected few at everyone else’s expense. We will never change the status quo and restore opportunity to our state as long as political insiders like Joe Berrios remain in office.
We can no longer rely on the traditional democratic process because Berrios uses his position as the Cook County Democratic Party Chairman to intimidate anyone who opposes this property tax racket. And, we cannot trust the state party to step in and fix a broken property tax system, as the state Democratic Party Chairman is a property tax appeals lawyer whose personal finances are dependent on the status quo.
All of this means the voters get sidelined and the machine and the status quo system back a wealthy self-funding candidate who will continue to support the racket with impunity. We need radical change and we need it today. Because, if we don’t move away from property taxes and reform the broken system, we won’t embrace a progressive tax. If we don’t embrace a progressive income tax, we will never fund schools properly or restore community safety or rid our cities and towns of the scourge of violence. If we don’t fund schools properly, we will never educate our kids to be economically self-sufficient.
Keeping leaders like Joe Berrios in office puts the very future of our state and our country at risk. We need integrity in our institutions and we need accountability from our elected politicians. We have people in in the city, the county and in Springfield doing their jobs who’ve suffered no consequence for failing to live up to their responsibilities. That ends now.
Joe Berrios should step down and if he won’t, the voters should remove him from office this March.”
*** UPDATE 1 *** From the Joe Berrios campaign…
We strongly advise Chris Kennedy to focus on his failing campaign instead of throwing temper tantrums while claiming as “unfair” the system he has directly benefited from.
In 2016 and 2017, Kennedy appealed the assessed value of his property at Wolf Point. He has also appealed on his residence. In fact, going back decades and starting with the Merchandise Mart, the Kennedy family has used the appeal system to receive many reductions in assessed value.
If Kennedy truly feels the system is “unfair,” I call on him to return to taxpayers the millions of dollars in tax savings resulting from those reductions.
We find it hypocritical that Kennedy remains silent about James Houlihan, the previous assessor whose mismanagement of the office and violations of Cook County policies resulted in a major lawsuit against the County which has dragged on for years. Houlihan is now a key advisor to candidate Kennedy.
Assessor Berrios has focused on improving the assessment system he inherited by making it fair and equitable for every Cook County resident. He is providing all information, data and other cooperation requested in the County’s review of the property assessment system being conducted by the Civic Consulting Alliance.
*** UPDATE 2 *** Biss campaign…
“Chris Kennedy is biting the hand that fed him in asking Joe Berrios to resign, and he misses the point entirely,” said Biss campaign manager Abby Witt. “The problem is larger than any single person in one elected office. It’s that the wealthy and well-connected have benefitted from a rigged system they created decades ago to avoid paying their fair share in property taxes. And now our schools and social services, and the people who rely on them are struggling.
“Instead of spouting empty threats, there are two real solutions this problem. The first is to pass legislation, like the HOME Act, which Daniel Biss introduced this summer that fixes Illinois’ broken property tax valuation, assessment, and appeals system. The second is to let voters pick someone else on election day.
*** UPDATE 3 *** Oppo dump hurled over the transom…
KENNEDY ACCEPTED $10,000 FROM FORMER ASSESSOR JAMES HOULIHAN, WHO KNOWINGLY SENT OUT INACCURATE PROPERTY VALUATIONS & UNDER-ASSESSED COMMERCIAL PROPERTIES ACCORDING TO A TRIBUNE REPORT
James Houlihan Donated $10,000 To Kennedy For Illinois. [Kennedy for Illinois Q3 D2, Illinois State Board Of Elections, filed 10/16/17]
James Houlihan, Who Donated $10,000 To Kennedy, Was Cook County Assessor From 1997 To 2010. “James Houlihan – Assessor From: 1997-2010.” [Cook County Assessor’s Office, 10/16/17]
As Cook County Assessor, James Houlihan Knowingly Sent Out Inaccurate Property Valuations. “As assessor, James Houlihan knowingly sent out inaccurate property valuations. The future consequences could be costly… For more than a decade, the Cook County assessor’s office hid a secret inside the massive computer programs used to calculate property tax assessments for single-family homes. It didn’t look like much — just a few snippets of code amid thousands of lines — but it created erroneous valuations for homes throughout the county, affecting the tax bills sent to more than 1 million residential property owners every year. What the code did was deceptively simple: It decreased every estimated home value in the county by about 40 percent, a troubling practice that ignored legal requirements set out in county ordinances. The artificially low values threw the property tax system so far out of whack that it may have violated provisions of the state constitution. But, shrouded by an opaque and convoluted assessment system, these widespread inaccuracies were invisible to the average homeowner. The Tribune already has revealed how the county’s assessment system under Joseph Berrios has been riddled with errors that punished the poor while providing breaks to the wealthy. Now the investigation shows that the assessor’s office knowingly produced inaccurate property assessments during the long tenure of his predecessor, James Houlihan, and even as far back as the 1980s. Houlihan removed the snippets of code in 2009, a year before he left office.” [Chicago Tribune, 6/10/17]
The Chicago Tribune Reported That Houlihan Knowingly Under assessed Commercial Properties While Assessor. “When Houlihan took charge of the assessor’s office in 1997, those with deep knowledge of the property tax system would have understood that the ongoing drastic undervaluation of residential homes left the county vulnerable to legal challenges. One way to fix that problem would have been to raise residential assessments to legal levels. But that would have increased many people’s taxes, and that is not what Houlihan chose to do. Instead, records show, the assessor’s office left the residential level where it was — at 10 percent — and began taking measures that reduced the levels for commercial and industrial properties. Over the next decade, the median commercial and industrial assessment levels in Cook County fell by more than a third. In 2007, the median level for commercial property was about 17 percent — less than half of what it was supposed to be, according to state studies. Internal studies unearthed in the O’Keefe lawsuits show the assessor’s office knew about the low valuations. One report, titled ‘The Effects of the Decline in Commercial Assessment,’ detailed a significant drop in commercial assessment levels between 2003 and 2004. [Chicago Tribune, 6/10/17]
PROPERTY TAX LAWYER TULLY HAS GIVEN TO CHRIS KENNEDY; THAT LAW FIRM HANDLED KENNEDY’S APPEALS & HEAD TOM TULLY IS A FORMER ASSESSOR
3/23/17: Mathew Tully, An Attorney At Tully & Associates, Donated $1,000 To Kennedy For Illinois. [Kennedy for Illinois Q2, Illinois State Board of Elections, filed 7/17/17]
Chris Kennedy Used Tully & Associates, A Firm That Has Donated At Least $60,000 To Property Tax Officials, To Appeal The Assessment On His Home And One Of The Buildings He Was Developing. “But even as Kennedy took to social media and forums to complain about a “rigged system,” he was actively pursuing a second property tax appeal of his own — asking for a 20 percent reduction for his personal home in the Chicago suburb of Kenilworth… It was penned by Kennedy’s attorneys, Tully & Associates, a firm has donated at least $60,000 to members of the board that considers such requests. The firm also represented Kennedy and business partners when they won a nearly 63 percent reduction in one of the buildings under development, according to Crain’s Chicago.” [Politico, 7/25/17]
Chris Kennedy Used The Law Firm Of Former Cook County Assessor Tom Tully. “Kennedy and associates appealed, using the law firm of former Cook County Assessor Tom Tully, and the final value ended up being set at $5.109 million, a cut of almost 63 percent.” [Crain’s Chicago Business, 5/23/17]
CHRIS KENNEDY WAS STILL APPEALING HIS PROPERTY TAXES UNTIL IT BECAME A POLITICAL ISSUE, THEN QUIETLY WITHDREW HIS REQUEST
Chris Kennedy Was Pursuing A Second Appeal Of His Property Assessment Until A Story On Opponent Pritzker’s Property Taxes Broke, After Which Kennedy Quietly Withdrew His Appeal. “But even as Kennedy took to social media and forums to complain about a ‘rigged system,’ he was actively pursuing a second property tax appeal of his own — asking for a 20 percent reduction for his personal home in the Chicago suburb of Kenilworth. Kennedy then quietly withdrew his appeal request, according to a letter obtained by POLITICO, seven days after a story surfaced that was critical of property tax reductions won by his chief primary opponent, billionaire J.B. Pritzker.” [Politico, 7/25/17]
HEADLINE: “Kennedy Quietly Reversed Illinois Tax Break Request” [Politico, 7/25/17]
*** UPDATE 4 *** JB Pritzker…
As I’ve stated, we need to reform our flawed and inequitable property tax system. But I’m not here to score political points by attacking other Democrats. That’s what my opponents are doing when we should be focused on defeating Bruce Rauner. The voters will ultimately decide if Mr. Berrios deserves another term.
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Restaurant-quality trolling
Thursday, Dec 7, 2017 - Posted by Rich Miller
* Merging interests?…
* Rauner reaches out…
* Kennedy snaps back…
Heh.
What’s your own favorite recent trolling?
…Adding… On a more serious note…
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* This ProPublica-Illinois deep dive into the Cook County Assessor’s office is definitely worth a read, but this is what stood out to me the most…
The assessor’s office encourages property owners to file an appeal if they are dissatisfied with an assessment. In cases where officials did not change a property’s initial estimate from one reassessment to the next, the vast majority of the owners appealed, government records show.
Seventy-four percent of those owners won reductions from the assessor — only to see the values snap right back to the same number in the next reassessment.
“There is no rationale for having no change in these initial valuations,” said Richard Almy, former executive director of the International Association of Assessing Officers. “Especially if the assessor later agreed to a reduction; there’s no earthly reason for them to go back to the same value.”
The repetitive process feeds a property tax appeal industry that provides the bulk of Berrios’ campaign contributions. Inaccurate assessments also help drive business to political allies who are property tax attorneys, including Illinois House Speaker Michael Madigan, the longest-serving state house speaker in U.S. history, and Alderman Edward Burke, the longtime chair of the Chicago City Council’s finance committee.
The office’s deputy assessor for communications, Tom Shaer, did not explain why thousands of first-pass values were identical over multiple reassessments under Berrios. The other findings from ProPublica Illinois and the Tribune are misleading, he said, and do not “do justice to the complexity” of Cook County’s assessment system.
“The study includes five years of the real estate crash,” Shaer wrote in an emailed response. “The crash played havoc with figures in certain industry measures used for this story, making them unreliable when evaluating the assessor’s work.”
* And…
A ProPublica Illinois-Chicago Tribune analysis of appeals data from the Cook County assessor’s office found that the firm of Madigan & Getzendanner dominates the market for commercial and industrial appeals in Cook County. Between 2011 and 2016, the firm filed appeals on properties that were initially assessed at nearly $8.6 billion. That is nearly $1 billion more than the second-place firm, Crane and Norcross.
* And…
A ProPublica Illinois-Chicago Tribune analysis of appeals data found that Berrios granted appeals for more than 34,000 commercial and industrial parcels in the 2012 Chicago reassessment and for about the same number again in 2015.
By contrast, former Assessor Houlihan approved only 17,596 appeals in 2009 — and that was the largest number since at least 2003.
Under Berrios, the analysis found, more than 70 percent of all commercial and industrial appeals filed with the assessor’s office resulted in reductions between 2011 and 2015, compared with 48 percent during the previous five-year period.
Every property tax assessment system requires an appeal process to ensure fairness and accuracy, and many jurisdictions across the country saw an uptick in appeals following the financial crisis, experts said. But the number of appeals in Cook County is extraordinarily high, far exceeding the total in New York, for example.
These appeals support an industry that provides more than half of Berrios’ campaign funds.
* And…
The most common test of accuracy is the coefficient of dispersion, or COD. It is, essentially, an error rate. For income-producing properties, the International Association of Assessing Officers sets the acceptable level of COD at 20. That means assessments are off by an average of 20 percent.
Under Berrios, the scores for commercial and industrial first-pass valuations have been as high as 133, ProPublica Illinois and the Tribune found. Though experts often allow complex jurisdictions like Cook County some leeway, they said those results are unacceptable.
The errors also have a bias. With lower-priced commercial and industrial properties, the assessor’s estimates tend to come in too high. At higher price points, assessments are often too low.
Known as regressivity, this pattern means the property tax system is unfair to people who own lower-value properties. Those taxpayers end up paying more, relative to the value of their property, than others do.
…Adding… ILGOP…
“The corruption from Joe Berrios and Mike Madigan is absolutely disgusting. For years, they have taken money from middle class families and small businesses to help line their own pockets, all the while propping up their political careers. If you want to know why Illinois has serious problems, look no further than Joe Berrios and Mike Madigan and their shameful practices of robbing hard-working Illinoisans to make themselves richer.” - Illinois Republican Party Spokesman Aaron DeGroot
…Adding… Press release…
Following is a statement from Fritz Kaegi, the progressive Democrat challenging incumbent Cook County Assessor Joe Berrios in the March 2018 primary election, in response to today’s Chicago Tribune/ProPublica investigative report on the corrupt practices of the current Assessor’s Office.
“The Chicago Tribune and ProPublica report again proves beyond a shadow of a doubt that Assessor Joe Berrios has systematically and intentionally used his office to benefit the rich, powerful and politically connected, and has forced the Cook County residents who can least afford it to pay for the web of corruption in the form of massively inflated property tax bills.
“His brazen violation of the public trust is a disgrace, and the residents of Cook County are rightfully outraged.”
“As Assessor, I’ll get valuations right the first time. I’ll implement valuation models that are more uniform and that reflect current market conditions. I’ll be transparent in how valuations are reached. I’ll make available data and valuation standards to third parties, and hire a qualified, diverse workforce free from nepotism and favoritism. I will not accept donations from property tax appeals lawyers as a candidate or as assessor, and I am committed to the immediate separation of political influence from the assessment process.”
…Adding… Another press release…
Earlier this week, J.B. Pritzker was challenged on reporting relatively little income despite his $3.4 billion net worth. Given the Pritzker family history of avoiding taxes in offshore trusts, Pritzker’s multiple responses were vague at best.
Today, two of Pritzker’s chief backers, Speaker Mike Madigan and Cook County Assessor Joe Berrios, are the subject of a Chicago Tribune story investigating the corrupt racket surrounding property tax assessments.
From the Tribune report:
“The repetitive process feeds a property tax appeal industry that provides the bulk of Berrios’ campaign contributions. Inaccurate assessments also help drive business to political allies who are property tax attorneys, including Illinois House Speaker Michael Madigan.”
Pritzker has been intimately involved with this racket, securing a $230,000 tax break from Berrios on his Gold Coast mansion after having the toilets disconnected from a neighboring property so that it would be declared uninhabitable.
Between Pritzker’s history of gaming the tax system, his undisclosed offshore interests, and now today’s revelations surrounding Berrios and Madigan, how can Illinoisans trust another corrupt insider?
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* From earlier this week…
An Illinois official has canceled a $12 million contract she says should have been offered to the highest bidder by Gov. Bruce Rauner’s administration.
Chief Procurement Officer Ellen Daley decreed Tuesday that the Illinois Department of Healthcare and Family Services should have bid the contract with McKinsey & Co.
* Yesterday…
Gov. Rauner on Wednesday blamed House Speaker Michael Madigan for the cancellation of a $12.5 million state contract with management consulting company McKinsey & Co. […]
Ironically, the cancellation was made possible by new guidelines for how the state buys and sells services that Rauner signed into law earlier this year. The new law was one of the few items on Rauner’s original “turnaround agenda” that lawmakers granted him, though he said Wednesday that it hadn’t gone far enough.
“Procurement in Illinois is broken, it has been broken and it is still broken,” Rauner said when asked to explain what went wrong with the McKinsey contract. “We did pass a modest procurement reform bill. Didn’t go nearly far enough. It probably fixed about a third or a quarter of the problem.”
Then he pivoted to Madigan, saying the speaker “has resisted because he controls a lot of the procurement people through his patronage operation. He likes the current procurement system. That’s how he gets some of his political power that we have to defeat.”
Asked if he thought the procurement officer who’d voided the contract was controlled by the speaker, Rauner said he thought Madigan had “heavy influence.”
Oh, please. The no-bid contract was supposed to be about “anticipation of litigation” for the Department of Healthcare and Family Services. But as you can see if you click here, the CPO pointed out that lots of the actual contract had nothing to do with “anticipation of litigation.”
You can’t just blame Madigan for literally everything under the sun. I mean, yeah, he deserves blame for a lot, but this? C’mon, man. Daley has been CPO since July of 2015. Before that, she did procurement work for CMS and CPS.
* Meanwhile…
The Illinois state comptroller has halted payment on a second contract that Gov. Bruce Rauner’s administration signed last year because it’s similar to one a state regulator invalidated.
Comptroller Susana Mendoza notified the Department of Healthcare and Family Services Wednesday that she would not pay a $12.5 million contract with consultant McKinsey & Co. for Medicaid-program assistance. […]
Mendoza’s letter adds that there will be no further payments on $12.9 million contract with McKinsey signed last year because of its similarities to the one canceled. Mendoza spokesman Abdon Pallasch said the state has paid $6 million on that deal.
*** UPDATE *** AP…
A Republican lawmaker is challenging Gov. Bruce Rauner over a claim that the Democratic House speaker influenced the cancellation of a $12.5 million no-bid contract the administration signed.
Barrington Hills GOP Rep. David McSweeney says Republican Rauner must provide proof or apologize.
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