* Kristi Dunn Kucera has served as spokesperson for Chicago mayoral candidate Amara Enyia. She sent this e-mail to reporters today…
As of December 12, 2018, I no longer represent Mayoral Candidate Amara Enyia as Communications Director. In light of several unknown and troubling factors that I was not privy to during the campaign, I am unable to effectively continue in this role. I wish her the best in her endeavor.
I’ve followed up by e-mail, phone and Twitter direct message. I’ve heard nothing back.
*** UPDATE *** Enyia campaign…
As we step into the next and final stage of this campaign, internal transitions and shifts are to be expected. We are excited for the opportunity to expand our growing team ahead of this critical next phase of work, and we remain grateful to all of our colleagues, past and present, for the exceptional work they’ve done thus far.
More details to follow.
* Meanwhile…
State Comptroller Susana Mendoza on Tuesday ripped fellow mayoral candidate Toni Preckwinkle, who chairs the Cook County Democratic Party, for challenging her campaign petitions and those of four African-American women in the race.
Mendoza’s campaign also said she has more than enough names to get on the Feb. 26 ballot and called Preckwinkle’s challenge of her petition signatures “shoddy.” The Mendoza campaign is planning to file a motion Wednesday seeking to dismiss the challenge filed by Preckwinkle, who also is the Cook County Board president.
“It’s ironic that in the year of the woman, in Trump’s America, the highest-ranking woman in Cook County government, who happens to be the boss of the party bosses, thinks it’s a good idea to challenge five women of color and no one else, by the way,” Mendoza said. […]
“After multiple reviews of Mendoza’s petitions, it is clear that she meets the requirements necessary to be on the February 2019 ballot and that fact further underscores that Preckwinkle’s sole motive in challenging her petitions was to deny voters their rights and stop Susana from making the ballot,” the Mendoza campaign said in a statement.
As we’ve already discussed, the Preckwinkle campaign will have to be successful on 85 percent of its challenges to kick Mendoza off the ballot. That’s likely only if Mendoza’s sheets were some of the worst ever.
* Interesting thread…
So, Amara Enyia has three bodyguards and her spokesperson just resigned because of “several unknown and troubling factors.” Hmm.
* Speaking of those two debates…
Last night’s mayoral debate at the Copernicus Center on the Northwest Side started calmly enough. Candidates made their opening statements, sticking to their bios. When it came to Gery Chico, he lit into Toni Preckwinkle, saying, ”Toni, that soda tax really hurt us. That sales tax you said you’d repeal hurt us.”
The discussion moved fast with 10 participating candidates covering TIFs, crime, workers’ comp and pension issues. The event was sponsored by the 38th Ward Dems.
A few zingers: Lori Lightfoot challenging Preckwinkle: “Join me in calling for taking away the $100 million ‘ATM’ that Ed Burke controls with the Workers Comp system.” Ja’Mal Green, whose petitions have been challenged by Willie Wilson, talked about Wilson, saying, “He’s not black first. He’s rich first.”
*** UPDATE *** Press release…
The mayoral campaign of attorney and neighborhood advocate Jerry Joyce on Wednesday withdrew its challenge to the ballot submission of William Daley, though the challenge process revealed a widespread pattern of forgery and fraud in the petitions gathered and submitted by Daley circulators.
Three individuals collected more than 11,000 signatures, all using the same notary. One of the three collected more than 5,000 signatures..
The Daley submission included thousands of examples of:
— incorrect addresses
— unregistered voters
— forged names
— duplicate signers
Said campaign spokesman Graeme Zielinski:
“The idea that a single individual collected 5,000 signatures and that three circulators collected more than 11,000 signatures, almost enough to qualify for the ballot, is unbelievable even by Chicago standards. Using paid-per-signature circulators with no idea about the campaign, candidate or election is a practice that screams for reform.
“In the end, we’re withdrawing our challenge. We can’t spend the next months scouring the earth for purported circulators who, in many cases, are gone with the wind or who don’t live at the addresses that were provided.”
*Click HERE to download a .zip folder containing images of examples from the Daley submission.
* Related…
* At odds with Obama: 6 Chicago mayoral candidates say presidential center should guarantee community benefits: On Tuesday night, Cook County Board President Toni Preckwinkle, Cook County Circuit Court Clerk Dorothy Brown, former federal prosecutor Lori Lightfoot, public policy consultant Amara Enyia, activist Ja’Mal Green and former Chicago police Superintendent Garry McCarthy all said Obama and the city should agree to protections for the nearby neighborhoods. It was a popular position in a room full of Chicagoans who have pushed for more equitable and affordable housing at an event hosted by the Chicago Housing Initiative.
* Progressive aldermen move to strip Burke of $100M-a-year worker’s comp program: Mayoral candidate Toni Preckwinkle is also on record as supporting the worker’s compensation shift—even though Burke held a recent fundraiser for her re-election campaign as county board president.
* Chicago aldermen raise white flag in $1.5 billion TIF fight: Add mayoral candidates Toni Preckwinkle and Paul Vallas to the list of those urging the city to slow down on the Lincoln Yards TIF. Said Preckwinkle in a statement: “Chicagoans deserve an open and transparent conversation on TIF reform before the approval of any new TIF moves forward. I stand with community groups and say delay the TIF.” And Vallas says that until the TIF program is completely reorganized, under a new mayor, no new TIF districts should be created at Lincoln Yards or anywhere else.
* Chicago mayoral candidates face off in 2 forums
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*** UPDATED x2 *** Emanuel/Emmanuel
Wednesday, Dec 12, 2018 - Posted by Rich Miller
* Remember this post about the French riots?…
[Under French President Emmanuel Macron] pensions themselves have ceased to be indexed to inflation (and thus to retirees’ ability to buy consumer goods) […]
The tax will increase the price of fuel by about 30 cents per gallon and will continue to rise over the next few years, the French government says
* And then yesterday, Chicago Mayor Rahm Emanuel (one “m”) proposed doing away with the 3 percent automatic annual increase for pensions and proposed raising gas taxes by 30 cents a gallon, among other things.
Here’s how the mayor justified doing away with the pension AAI…
What kind of progressive, sustainable system guarantees retirees 3 percent annual compounded pay increases when inflation has been at basically zero
And here’s his reasoning for raising the gas tax…
Illinois last raised the gas tax from 16 cents per gallon to 19 cents in 1990. Emanuel said raising the tax by 20 cents would be about the equivalent to inflation over the past 28 years. He said the group of mayors settled on a range of 20 cents to 30 cents to serve as a guideline for state lawmakers when they take up debate on the issue next year.
So, inflation “has been at basically zero” to justify reducing future pension payments, but he uses more than 100 percent inflation to justify a gas tax increase.
*** UPDATE 1 *** Illinois AFL-CIO President Michael Carrigan and Chicago Federation of Labor President Bob Reiter…
“Too many politicians, including Mayor Rahm Emanuel himself, have wasted years pushing extreme, immoral and illegal schemes to slash pension benefits instead of working together to craft fair, sustainable and constitutional funding solutions.
“In Chicago and throughout Illinois, teachers, fire fighters, nurses, caregivers and other public service workers earn a modest pension and pay toward it from every check. Their pension is their life savings, and since most public employees aren’t eligible for Social Security, it is their main source of income in retirement. Reducing that already modest benefit—now just about $35,000 a year on average—is both unfair and unconstitutional.
“Those pushing to repeal the Illinois Constitution’s pension clause ignore the real problem, which is not the cost of benefits but the decades-long habitual failure of politicians to pay the employer’s share.
“They also ignore the clear, strong rulings of the Illinois Supreme Court, which have reinforced both the plain language of the pension clause and the sanctity of the contracts clause, which protect these obligations. Their unanimous decisions have forcefully made clear that any attempt to slash the modest benefits promised to employees already in a pension system would violate both Illinois and federal law.
“Real solutions are achievable, and we remain committed to working together with anyone of good faith to identify and implement them.”
*** UPDATE 2 *** Press release…
Following is a statement from Ald. Scott Waguespack (32), Chair of the City Council Progressive Reform Caucus, in response to Mayor Emanuel’s proposed constitutional amendment on pensions:
“Our caucus opposes Mayor Emanuel’s proposed constitutional amendment to eliminate pension protections.
“These workers have held up their end of their agreement. They served our communities honorably throughout their careers with the assurance that their retirement would be secure. Now, Mayor Emanuel is proposing going back on that promise, and making even more vulnerable the retirement security of tens of thousands of workers who cannot rely on Social Security.
“Mayor Emanuel has missed many opportunities over the last eight years to fight for progressive revenue options to fund our pensions. We urge the next mayor to work with Springfield to achieve a progressive income tax that asks the very wealthy and big corporations to pay their fair share, and the legalization and taxation of recreational marijuana to help fund our pensions.”
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* Click here for background…
…Adding… Tribune…
“Too many people look at our pension obligation through green eyeshade – in terms of dollars and cents. That is just one way to see it, but it is not the whole picture. The other is in terms of our principles and priorities,” Emanuel is expected to say in his speech. “That is why I am also for amending the clause added to the constitution in 1970 that caused the Supreme Court to shoot down our initial agreements with labor.”
Emanuel in particular will cite the 3 percent annual compounded cost of living adjustments, or COLAs, for retirees in the laborers fund.
“Think about it. What kind of progressive, sustainable system guarantees retirees 3 percent annual compounded pay increases when inflation has been at basically zero and current employees have at times been furloughed, laid off, or received one percent raises?” Emanuel said. “There is nothing progressive about 3 percent compounded raises for retirees and furloughs for workers. The mantle of progressivity must not just be more taxes on the wealthy, it must be more respect for our workers’ paychecks. I applaud our labor unions for being willing to fix this inequity in 2012 with me.”
*** UPDATE *** Jordan Abudayyeh at the Pritzker transition…
As JB has said, pensions are a promise and the state has a responsibility to live up to that promise. As governor, he will work with the General Assembly to propose a balanced budget that meets our pension obligations and puts the state on a more sustainable path forward.
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* I’ve already told subscribers about this, but every year about this time, I’m asked if there are any tickets left for my annual “Christmas with Rich Miller” event with the City Club of Chicago. And every year I have to either turn people down or send them to the City Club people to see if they can squeeze another one in.
We decided to do something a little different this year. The City Club held back ten tickets so we could auction them off to benefit Lutheran Social Services of Illinois. The annual event is this coming Monday at Maggiano’s in Chicago and the auction has begun.
The bidding starts at $35, which is the normal price of a ticket. Six tickets are being sold individually, and four are being sold in pairs of two. I don’t think we’ll get a hot bidding war on every ticket sold, but I would like to see all of the tickets purchased for at least the base price - and LSSI does great work and was pummeled hard by the impasse.
* Click here to bid. You’ll be asked to create an account. Then they’ll send you a verification e-mail and you click a link and enter your bid. The whole thing takes about a minute.
And if you’ve already purchased a ticket, please don’t forget to bring a toy to the event for LSSI’s child care program.
Thanks!
*** UPDATE *** Somebody just paid the “buy now” price of $500 for a ticket. Thanks!!!
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* Rachel Droze…
Repairing and replacing the city of Springfield’s sewer system is estimated to cost more than $50 million over the next decade. […]
When averaging the age of Springfield’s oldest in newest pipes, the sewer system is about 60-years-old. The oldest pipes were laid about 150 years ago.
If necessary repairs aren’t made, sinkholes can form. […]
Since most of the city’s major sewage pipes run under roads, cave-ins could cause roads to collapse. […]
[Springfield’s Sewer Engineer John Higginbotham] said the city should be spending roughly $4 million a year on repairs and upgrades, but last year they only spent $1 million.
When people think of infrastructure, they often think only of roads, bridges and transit. But sewer and water systems in this state also need attention. It’s easy to get away with neglecting them because they’re underground. Out of sight, out of mind - until, that is, a sinkhole forms and a main road collapses.
*** UPDATE 1 *** Madeleine Doubek…
One of Illinois’ biggest and most critical assets always has been its transportation network. We’re smack dab in the middle of America, but we lost Amazon’s HQ2 and we could lose more economic opportunity if we don’t tend to that network. That means planes, trains, transit, roads and, especially, bridges, noted Illinois Department of Transportation Secretary Randy Blankenhorn.
Three quarters of Illinois’ bridges are in need of repair. We should be rebuilding five major bridges a year, but we’re working on one every five years, he said. “This is a crisis that’s coming,” Blankenhorn said. “This is what keeps me up at night.”
If we want to build our communities, attract new people who can contribute to those communities and fund governments, then we need to invest in transportation, Blankenhorn and others said.
He called for an increase of at least 15 cents in the state gas tax, which hasn’t been increased since 1990.
Once again, Blankenhorn says this stuff about a big gas tax hike after the election even though the governor has been saying for years that no tax hike is needed to pay for a capital bill.
*** UPDATE 2 *** Tribune…
Mayor Rahm Emanuel on Wednesday called for a 20 to 30 cent per gallon increase in the state’s gas tax to fund a major statewide transportation bill.
Emanuel made the push during a City Hall news conference in which he was joined by members of the Metropolitan Mayors Caucus, an organization that represents the Chicago region’s 275 cities, towns and villages.
“Our state can’t wait any longer,” Emanuel said, noting neighboring states have passed transportation bills with gas tax hikes.
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* Click here for background if you need it. Here’s Adam Schuster with the Illinois Policy Institute’s response to the Center on Tax and Budget Accountability’s defense of its pension obligation bond proposal…
The CTBA plan does use the POBs to reduce contributions, but in the long-run rather than the short-run/Blago-style. It reduces the contributions by both lowering the funding target and extending the pension ramp, both of which violate Actuarial Standards of Practice from professional actuary associations.
Hertz correctly points out that a recession is increasingly likely, but then comes to the exact opposite conclusion about what this should mean. Just prior to a recession is the worst possible time to play an arbitrage gamble with taxpayer money, which is what this plan does. It would be like going all in on a Black Jack hand knowing the dealer has 21. This will likely make our pension repayment even more expensive than already envisioned by CTBA.
Hertz’s admission that arbitrage benefit “isn’t really the point” tells us what their true motivation is here. Potential arbitrage benefit is the only positive aspect of their plan. But that’s not their goal; their goal is to trade soft debt for hard debt by putting taxpayers on the hook for these bonds, which cannot later be made cheaper through reform like the pension debt can.
Hertz claims to be worried about the service cuts being caused by the rapidly growing pension payments, but the CTBA plan explicitly puts pension payments above those services with its $11 billion cash infusion. That insulates pensions from the risk of economic downturn while also restricting the amount of revenue available for the services Hertz claims to care about, by making them hard debt.
You know what our alternative is, because I’ve seen you write about it. I know you think a federal contracts clause challenge is likely. We’ll have more on that soon, but for now its worth noting that Arizona did not face such a challenge despite a virtually identical situation. They have the same pension clause and their court also struck down a prior round of reforms, claiming they diminished benefits. And yet they’ve successfully amended their constitution twice now.
Arizona hasn’t yet faced a federal court challenge. That doesn’t mean it won’t. Or that it wouldn’t be challenged here.
…Adding… Schuster has a new post up on the topic. Click here.
…Adding… From comments…
Not weighing in on the CTBA proposal itself, but it’s worth pointing out that the IPI response seems to misunderstand (or misrepresent) it in several ways. First, IPI writes that CTBA’s proposal “reduces the contributions”, which isn’t really true. In the short-term CTBA’s proposal would increase contributions above what’s required under current law. Yes the CTBA proposal does not conform to actuarial standards, but making payments that align with actuarial best practices would require dramatically higher pension contributions (both above current law and CTBA’s proposal). Second, IPI is critical of the proposal’s use of POBs because it’s an “arbitrage gamble,” but this is simply not what CTBA is proposing. In CTBA’s proposal the POBs are meant to be a revenue source for making pension payments that are higher than required under current law in the short term. This using POBs for budgetary relief. POBs resolve CTBA’s issue of wanting to increase pension contributions without cutting other aspects of the budget or simply raising taxes. It’s also worth pointing out that Quinn issued two POBs for budgetary relief (in 2010 and 2011). The Blago POB was issued for arbitrage reasons; however, once issued Blago used some of the proceeds for budgetary relief (which was a different use than original proposed). Blago’s use of POB proceeds for budgetary relief is one source of criticism; however, it remains to be seen whether the arbitrage play materializes as the bonds aren’t paid off. As of 2017, investment returns have actually exceed the 2003 POB interest rates. (see p. 121 http://cgfa.ilga.gov/Upload/FinConditionILStateRetirementSysMar2018.pdf)
Last, I think people should realize that CTBA’s proposal actually has several distinct policy components that can be independently debated. 1) switching the amortization method (aka debt repayment schedule) from level % of pay to level dollar. Doing this alone requires higher pension payments; 2) changing the funded ratio target from 90% to 70%; and 3) using POBs to make part of the state’s pension payments.
I know who that commenter is, by the way, and the person knows this topic well.
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