* The full speech is here. Press release…
Mayor Lori E. Lightfoot today addressed residents on the state of the City, the City’s finances and the projected 2020 budget deficit during a live primetime speech delivered at Harold Washington Library. In an unprecedented act of transparency before the official City budget address in October, the Mayor appeared before residents to provide an overview of the city’s current financial state, including: a historic $838 million gap projected for 2020, measures taken to date to address the City’s long-term and short-term financial obligations, and the work remaining to put Chicago on track for a balanced and sustainable financial future.
During the speech, Mayor Lightfoot outlined her vision for strengthening the City by building stronger and safer communities, expanding access to education and vital services, and creating opportunities for working families – starting first by working to create structural reforms within City government that will contribute to Chicago’s long-term financial stability. Importantly, her reforms strive to make Chicago work for working-class families and create a model of good governance. These reforms include: fines and fees reforms, passing the Fair Workweek and an Ethics ordinance, and ensuring that Chicago remains a welcoming City.
“Today I am shining a light on Chicago’s current financial conditions. I want residents to know the full extent of the City’s finances and the path we plan to take to address our long-standing fiscal challenges,” said Mayor Lightfoot. “The 2020 Corporate Fund budget shortfall will be $838 million. And while I recognize this is a steep hill to climb, I am committing to residents that, together, we will do the hard work of finding sustainable solutions that will lead our city to long-term financial stability.”
In the address, the Mayor outlined her administration’s efforts to identify over $100 million in savings and efficiencies over the first 100 days and the work that remains to balance next year’s budget. These efficiencies include the elimination of $1.4 billion in short term borrowing, a review of departmental use of overtime and absenteeism, and implementation of a citywide hiring freeze allowing the city to work with departments to identify additional efficiencies in the coming weeks.
The City has begun to make progress in addressing its costs for 2020 and beyond by implementing structural reforms that drive down costs and improve financial stability, including: a complete overhaul of the $100 million workers’ compensation program, which is expected to reduce claims costs and improve services for workers; release of a new healthcare RFP to revisit competitive costs for the $471 million-a-year program; changes to refinance old debt for better rates; and the creation of the first citywide enterprise risk management system, led by Chief Risk Officer Tamika Puckett, which will seek to cut down on the high cost of legal settlements.
And within weeks of taking office, Mayor Lightfoot secured legislative approvals to authorize a casino in Chicago, which would generate a dedicated revenue source to finance underfunded police and fire pensions. The administration is now committed to working with State legislators on the taxation structure to ensure a Chicago casino will represent a structural solution for long-term sustainability.
The 2020 budget forecast reveals that The Corporate Fund, or the City’s operating fund, represented more than $3.8 billion, or more than 34 percent of the City’s $10.67 billion budget in 2019. This forecast reveals that in 2020, the pension, personnel and healthcare costs that make up a significant part of the Corporate Fund expenses will comprise 70 percent of the budget shortfall, while debt and legal settlement costs make up an additional 22 percent of the structural deficit.
As part of the annual budgeting process, the City is utilizing a zero-based budgeting method, where departments formulate 2020 budget proposals to request funding for programs and services in support of their core mission. New investments will be balanced with department savings, reforms and operational efficiencies in an effort to streamline existing processes and uphold a high quality of services for residents across all neighborhoods.
* More…
…Adding… From her speech…
We are exploring revenue options to address rampant congestion that solves the problems of traffic, pollution and other issues, while simultaneously bringing in a fair source of funding.
And…
*** UPDATE *** Emily Bittner in the governor’s office…
The governor is committed to creating an environment in the state where all cities can thrive, because Illinois succeeds when its cities succeed. In the weeks ahead, as Chicago pursues assistance from the legislature, it will be important for the mayor to reach out to leaders and lawmakers across the state and across the aisle to build a coalition for her ideas. The governor looks forward to working with these stakeholders as the General Assembly weighs all these ideas carefully.
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* Press release…
Today, the Seventh U.S. Circuit Court of Appeals announced its decision in the case Wilson v. Cook County, et al. handing the Cook County State’s Attorney’s Office (CCSAO) a big win in their ongoing fight to protect residents from gun violence. The Illinois State Rifle Association backed a challenge to a long-standing Cook County ordinance banning the possession, use, or sale of assault weapons and large capacity magazines, claiming the regulation violated the Second Amendment. The CCSAO’s Civil Actions Bureau beat back the challenge, arguing that the ordinance furthered a substantial government interest in protecting Cook County residents from the threat of mass casualty posed by semi-automatic assault weapons and related accessories.
After learning of the court’s decision, Cook County State’s Attorney Kimberly Foxx reaffirmed her commitment to public safety in Cook County.
“Assault weapons and large capacity magazines are designed to kill in mass and have no business on our streets,” said State’s Attorney Kimberly Foxx. “Public safety is our top priority, and we were proud to defeat the gun lobby’s challenge in court. While we are pleased with today’s decision, we anticipate that this will be appealed to the Supreme Court. If it is, we will be ready.”
* From the decision…
Two Cook County residents appeal the dismissal of their complaint, which raises a Second Amendment challenge to Cook County’s ban on assault rifles and large-capacity magazines. Less than five years ago, we upheld a materially indistinguishable ordinance against a Second Amendment challenge. See Friedman v. City of Highland Park, 784 F.3d 406 (7th Cir. 2015). The district court dismissed the plaintiffs’ complaint on the basis of Friedman. We agree with the district court that Friedman is controlling. Because the plaintiffs have not come forward with a compelling reason to revisit our previous decision, we affirm the judgment of the district court.
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* Breaking news from the Bond Buyer’s Illinois reporter…
Background on the legal action is here, here, here and here.
This post will be updated.
*** UPDATE 1 *** Emily Bittner in the governor’s office…
The administration is pleased that the judge repudiated this sham lawsuit brought on by the same far-right actors whose pathological desire to bankrupt the state brought us four years of devastation under Bruce Rauner.
*** UPDATE 2 *** Comptroller Susana A. Mendoza…
We’re very pleased that Judge Jack Davis did the right thing and threw out this completely frivolous ‘political stump speech’ of a lawsuit. Now that it is clear that Illinois Policy Institute CEO John Tillman and the Warlander hedge fund filed this phony lawsuit just to try to sabotage Illinois’ credit rating for personal financial gain and headlines, anyone who has supported the IPI in the past should rethink their support. Under the new leadership of Governor Pritzker and the steady resolve and financial stewardship of the Comptroller’s Office, the state of Illinois is fixing its finances and the bond rating agencies are recognizing this.
*** UPDATE 3 *** Annie Thompson at the attorney general’s office…
As we stated in our written submissions and oral argument, the plaintiffs waited nearly two decades after the first bonds were issued and billions of dollars were paid into the pension funds, and then waited several years after the second bonds were issued and payments were made on the backlog of bills owed to the state’s service providers and other vendors. The delay alone demonstrates that the petition was always without merit. We are pleased with the court’s decision to deny the plaintiffs leave to file a taxpayer action that, according to the court, “resembles far more of a political stump speech than it does a legal pleading” that “would result in an unjustified interference with the application of public funds.”
*** UPDATE 4 *** The full order is here.
*** UPDATE 5 *** John Tillman…
“I strongly disagree with the Court’s decision, will appeal and am confident that I will prevail. It was premature for the Court to decide the case on the merits at the petition stage. Moreover, I disagree with the court’s conclusion that whether general obligation bonds have a specific purpose is a purely political question. The Illinois Supreme Court has ruled that the judiciary is in fact required to determine whether a challenged purpose is specific or not, and has done so on other occasions.”
John Tillman took on the lawsuit as an independent individual and concerned citizen. It is not an organizational initiative of the Illinois Policy Institiute.
*** UPDATE 6 *** Ted Hampton, Vice President and Senior Credit Officer of Moody’s…
The judge’s ruling today denying a lawsuit that sought to invalidate some of Illinois’ general obligation debt is positive for the state and in line with our view that the plaintiffs’ argument lacked merit. However, an appeal by the plaintiffs could still complicate the state’s near-term debt issuance plans.
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Question of the day
Thursday, Aug 29, 2019 - Posted by Rich Miller
* As we discussed earlier, the state has approved the first round of adult use cannabis licenses, including one in Effingham, the heart of Eastern Bloc country.
* The Question: Assuming that zoning is approved by the local government, what should be the motto of the new Effingham adult use dispensary?
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It’s time to come clean!
Thursday, Aug 29, 2019 - Posted by Rich Miller
* While I was on vacation, Center Square published a story about my questions to the governor’s office about the Confederate Railroad stuff. For whatever reason, they decided to FOIA my text conversations. Not all of their requests were granted.
So now Center Square is asking the Illinois Attorney General’s Public Access Counselor to force disclosure of an off the record exchange between myself and the governor’s Deputy Chief of Staff for Communications Emily Bittner.
For a self-described news organization to FOIA a reporter’s off the record remarks and then appeal the denial to the attorney general is downright reprehensible.
But in the interest of avoiding any legal fight which could set a precedent, I asked Bittner yesterday if she would lift her off the record restriction so I could publish the exchange here. She consented.
* The great mystery is now solved…
Oh my gosh that’s so fascinating!!! Congratulations, Center Square! I’m totally busted!
* Some other stuff was redacted for whatever reason. I had called Bittner about something else and she didn’t pick up, so I texted her…
Scintillating!
* The Hill mangled both my name and the name of my publication in an article about the controversy…
The removal comes after blogger Rich Hill last month asked readers on his site, Capital Fax, whether they thought the band was an appropriate choice to feature in the fair’s lineup.
Bittner sent me the link, which the governor’s office redacted from the FOIA…
Heh.
* And here’s a bit of needling from me about a surprising editorial…
So there you have it. I think that’s everything.
Sheesh.
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Pritzker has hairline fracture
Thursday, Aug 29, 2019 - Posted by Rich Miller
* Sun-Times…
Sneed has learned Gov. J.B. Pritzker has a hairline fracture to his left femur.
The upshot: He is under doctor’s orders to rest and recover for the next four to six weeks.
Sneed is also told the governor, who does not know how the fracture occurred, is in “good spirits” and will find it difficult to take it easy. […]
His recovery will require some bedrest, but he plans to go into his office in Chicago. He won’t be going to Springfield anytime soon. The fall veto session is not until later this fall.
I’ve been hearing that he’s complained about a sore knee. It’s one reason he decided to ride and not walk in the Du Quoin State Fair parade. But he walked the entire length of the Illinois State Fair parade and walked all over the fairgrounds and did a bunch of public appearances which required him to stand. He must’ve been miserable.
Anyway, best of luck for a quick recovery. And, dude, obey your doctors.
…Adding… From the governor’s office…
* Governor Pritzker has a hairline fracture to his left femur, so under doctors’ orders, he will be resting and recovering for the next four to six weeks. Governor Pritzker is in good spirits and will be receiving frequent daily updates from his staff and agency heads, and he will be fully engaged in conducting the business of the state.
* Governor Pritzker received this injury some time ago, but it became significantly worse in recent weeks as he attended numerous public events where he stood or walked significant distances. This includes attending and walking around both state fairs.
* This won’t require surgery.
* The Governor is not certain what caused the injury, but he has been experiencing knee pain for several weeks.
* Aside from this injury, the Governor is in good physical health.
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Facebook revises its political ad rules
Thursday, Aug 29, 2019 - Posted by Rich Miller
* Axios…
Experts estimate that well over $1 billion will be spent on digital ads this campaign cycle, with the majority going to Facebook and Google. For context, that’s about as much as analysts expect to be spent on local cable television ads this cycle.
* AP…
Facebook is tightening its rules around political advertising ahead of the 2020 U.S. presidential election, acknowledging previous misuse. But it’s not clear if it will be enough to stop bad actors from abusing its system.
The changes include a tightened verification process that will require anyone wanting to run ads pertaining to elections, politics or big social issues like guns and immigration to confirm their identity and prove they are in the U.S. Beginning in mid-September, such advertisers confirm their group’s identity using their organization’s tax identification number or other government ID.
The verified group name will be listed on the “paid for by” disclaimers that disclose the backers of ads. Facebook says it will verify this information against government records and will note in the disclaimer for confirmed ads that they’re placed by a “confirmed organization.” […]
Advertisers who don’t have tax ID numbers, government websites or registrations with the Federal Election Commission will still be able to post ads by providing an address, verifiable phone number, business email and website. These advertisers won’t get a “confirmed” designation. Previously, only a U.S. address was required. But it’s not inconceivable that bad actors will find a way to spoof phone numbers and email addresses.
* Barron’s…
Ads that advocate for or against legislation or ballot initiatives will have the same vetting process as campaign ads.
The company also intends to bar ads that expressly discourage people from voting.
* CNN…
Last year, Vice News reported that it was able to take out [Facebook] ads in the name of Vice President Mike Pence, all 100 US senators and the Islamic State. In another high-profile instance from 2018, an attack ad targeting Virginia Democratic candidate for Congress Jennifer Wexton was shown by Facebook to have been paid for by a “freedom loving American Citizen exercising my natural law right, protected by the 1st Amendment and protected by the 2nd Amendment.” […]
But it’s not clear whether the new rules would prevent a group or person from simply registering as a company, getting a tax identification number and going forward with their advertisements without ever having to really tell Facebook users who they truly are and what their motivation is. In response to questions about the potential loopholes, Facebook told CNN Business the additional information will be vetted by a mix of automated and human reviewers and that it is working with governments and watchdogs to bolster election security. […]
The new rules will be put into effect in mid-September, and if an advertiser doesn’t provide the new information by mid-October, Facebook said, it will pause an organization’s ads.
* NY Times…
Disinformation experts said the social network was still far from fixing the damage caused by the false news and ad campaigns that had run on the platform.
“This is all much too little, much too late,” said Dipayan Ghosh, a fellow at the Shorenstein Center at Harvard and a former privacy and public policy adviser at Facebook. “We’ve seen incredible impacts coming from illegitimate political ads, including from seemingly legitimate actors. And companies, particularly Facebook, are not doing enough to protect the public and our democracy.”
He added that Facebook’s new verification policy amounted to “incremental baby steps forward.” That would “not particularly position us well in the lead-up to elections,” he said.
* Business Insider…
The corporate ownership disclosure laws are not as strong in the US, and in some states, it’s possible to create anonymous LLC’s without providing identity or much ownership information at all.
That’s not something Facebook can necessarily fix - but it is still a way for sketchy operations to run political advertisements on Facebook and provide little information about who they actually are.
“At a certain point, Facebook won’t be able to do any more verifications because the US allows secret LLCs,” Carroll told Business Insider. “At that point it’s up to Congress to require corporate ownership disclosures like we see in UK on Companies House.”
* Tech Crunch…
It will turn its attention to Pages, too, by requiring national candidates or elected officials to go through Page Publishing Authorization, to verify their Pages are using real accounts and are based the U.S. Facebook will then begin exposing more information about the Page, including the business or organization behind it.
* Related…
* Facebook Ad Prices Surge Due to Barrage by Democratic Presidential Hopefuls
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Wishful thinking
Thursday, Aug 29, 2019 - Posted by Rich Miller
* Sun-Times…
Michael Cornicelli, executive vice president of the Building Owners and Managers Association of Chicago, said he assumes any such tax [on high-end city properties at their sale] will cover commercial buildings and not just homes. “It’s a tax on business and employment in the city” that, coupled with a slowing economy and spikes in property tax assessments, “has alarm bells going off everywhere.”
Lightfoot will need to bargain to get anything through the legislature, Cornicelli said.
“My gut is that in order to get something like that, she’ll have to give something,” he said. His suggestion: allowing a referendum on a state constitutional amendment to let governments reduce employee pensions.
If she is bargaining with people like Cornicelli, then yes. But she has to get that through the Illinois General Assembly. And the odds of Democrats and the governor approving that tax hike in exchange for cutting pension benefits are not exactly high.
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* Press release…
The Illinois Department of Financial and Professional Regulation announced Thursday the first “Same Site” adult use cannabis licenses, which will allow an existing medical cannabis dispensary to obtain an adult use dispensing license. This license will permit the dispensary to begin adult use cannabis sales at that location starting January 1, 2020, provided the dispensary complies with local zoning rules or other local laws.
In addition to opening adult use dispensaries at the same site of their medical cannabis dispensaries, existing medical cannabis dispensaries are permitted under the law to open a second site for adult use sales at a different location.
The medical dispensaries who have applied for and received early approval adult use licenses to date are:
The Clinic Mundelein
1325 Armour Boulevard
Mundelein, IL 60060
3C Compassionate Care Center – Joliet
1627 Rock Creek Boulevard
Joliet, IL 60431
3C Compassionate Care Center – Naperville
1700 Quincy Ave. #103
Naperville, IL 60540
Salveo Health & Wellness Dispensary
3104 N. Main Street
Canton, IL 61520
The Clinic Effingham
1101 Ford Ave. Ste. C
Effingham, IL 62401
The Department anticipates receiving additional applications for early approval adult use licenses as municipalities adopt relevant zoning ordinances regarding adult use cannabis.
Starting January 1, 2020, the law permits Illinois residents to legally possess up to 30 grams of cannabis flower and up to 5 grams of cannabis concentrate. Registered patients in the medical cannabis pilot program may possess more than 30 grams of cannabis if it is grown and secured in their residence under certain conditions.
Naperville is still going back and forth about what to do about allowing adult use cannabis sales. Mundelein’s police chief has expressed some support.
But Effingham? In the heart of the Eastern Bloc? From May…
Effingham County Sheriff Dave Mahon and Effingham Police Chief Jason McFarland voiced concerns over a recently proposed Illinois bill calling for the legalization of recreational marijuana. […]
“I know the legislators are looking into this pretty hard, and it’s kind of on the fast track, which really scares me,” Mahon said. “I think that we kind of need to step back and look at what’s happened in other states before we just jump right in. Illinois has already decriminalized marijuana, and this proposal is meant to commercialize the industry and product with proven health and safety concerns.”
That’ll be interesting. Commerce or dogma?
* Related…
* Cannabis dispensary to locate in former Aldi in Galesburg: Ken Springer, KCAPED’s president, said that currently existing medical dispensary license holders are the only entities who can seek a recreational cannabis business license. The two closest medical dispensaries are in Milan and Canton.
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* Center Square…
Lawmakers said a recently enacted state law designed to limit severance packages for outgoing public university officials needs more teeth after questioning university officials this week.
The high-profile instance of former Western Illinois University President Jack Thomas getting two years of salary worth $570,000 to take a sabbatical and then come back to teach at the university for $200,000 a year drew ire from state Sen. Laura Murphy, D-Des Plaines, during a hearing Tuesday. […]
Murphy said she was upset Thomas was getting the equivalent of CEO pay to come back as a teacher despite a new law meant to limit severance pay to 20 weeks. […]
University officials said Thomas’ exit was a transition agreement, not a severance agreement. […]
“I believe that Dr. Thomas’ contract is grandfathered in,” [WIU General Counsel Elizabeth Duvall] said. “It was still an active contract when it was signed (in 2011) prior to some of the laws that you’re speaking to.”
* Public Radio…
In recent years, the Illinois General Assembly passed two laws to limit that practice. Senate Bills 3064 and 2159 both were intended to curb a public employee’s ability to receive an unduly large severance package.
State Sen. Bill Cunningham (D, Chicago) helped negotiate both bills. He reiterated their intent during Tuesday’s hearing.
“That intent is, if for whatever reason — and the reason really isn’t all that important — a university decides they want to change their president, that they not offer him or her a golden parachute,” he said. […]
“I think [it] seems pretty clear to anybody who’s paid any attention to this that the Board of Trustees at Western Illinois University sought a way around that law,” he told a panel that included WIU. “If we can’t rely on the board of universities to follow the spirit of the law, maybe we need to figure out a different governing structure.”
The board did indeed get around prohibitions in the current law. So perhaps the law should be revised, but it won’t be easy to tie their hands like that.
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CAFR finally released
Thursday, Aug 29, 2019 - Posted by Rich Miller
* Comptroller Susana Mendoza’s office…
The Comprehensive Annual Financial Report (CAFR) released today shows Illinois cut its general funds deficit by $6.849 billion — from a deficit of $14.612 billion in fiscal year 2017 to a deficit of $7.763 billion in fiscal year 2018. That is largely because of a refinancing of state debt from high-interest to low-interest repayment.
The state’s total assets were approximately $53.9 billion on June 30, 2018, a decrease of $400 million from June 30, 2017. The state’s total liabilities were approximately $248.1 billion on June 30, 2018, an increase of $33.3 billion from June 30, 2017. The state’s largest liability balances are the net pension liability of $133.6 billion and the other post-employment benefits liability of $55.2 billion.
Health and social services expenditures of $29.2 billion comprised the largest expenditure function for fiscal year 2018, decreasing by $1 billion from fiscal year 2017. The second-largest expenditures, education expenditures, including spending for elementary and secondary education as well as higher education, totaled $25.4 billion, an increase of $3 billion, or 14%, from fiscal year 2017.
The Illinois Office of Comptroller compiles the CAFR from reports submitted by individual state agencies that are required to be audited by the Auditor General’s Office. If any of those audits is not complete, the Office of Comptroller cannot publish the CAFR. Since December, the Office of Comptroller has been ready to publish the CAFR as soon as the remaining audits were completed.
A primary reason for delay in the release of the fiscal year 2018 CAFR was the need for the new administration to try to piece together data lost by an IT vendor working for the previous administration’s departments of Healthcare and Family Services and Human Services.
As the Illinois Office of Comptroller noted in a June 28, 2018, report, four months’ worth of long-term care eligibility findings in 2017 were missing. (see attached report)
Comptroller Susana Mendoza said the prior administration relied too heavily on third-party non-government contractors to perform sensitive data conversions without adequate monitoring controls from state agency officials.
“We should not expect outside consultants to perform critical government functions, especially regarding data involving eligibility determinations under the state’s Medicaid program serving the state’s most vulnerable citizens, without adequate controls to protect the state’s program and ultimately state taxpayers,” Comptroller Mendoza said.
In April, Comptroller Mendoza announced her office would institute new contract reporting requirements for IT vendor agreements of more than $5 million. The new Information Technology Milestone Report rules require state agencies to publish progress and performance updates on ongoing IT initiatives, precisely to avoid data losses like this.
In addition to the missing data the Auditor General’s Office encountered at the departments of Healthcare and Family Services and Human Services, late adjustments relating to receivables were required as a result of the audit of the Department of Employment Security.
Comptroller Mendoza agrees with a repeated finding by the Auditor General’s office that the state needs a coordinated financial reporting system. However, it is important to note that was not a primary reason for this year’s delay.
The attached report is here. The CAFR is here.
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Today’s number: $581 per pupil
Thursday, Aug 29, 2019 - Posted by Rich Miller
* Center Square…
Illinois’ 852 school districts spend almost twice the national average on “administrative costs,” according to U.S. Census Bureau data. School districts in Illinois spend $581 per pupil on school district administration on average, according to the Illinois Policy Institute. That’s more than double the national average of $230 per student.
“We’re spending more and getting less for our investment in our kids because too much of the money is siphoned away by these six-figure administrators,” Illinois Policy Institute Director of Budget and Tax Research Adam Schuster said. “If we spent the national average [on district-level administration costs] we would have saved $708 million last year.”
District-level administration refers to positions such superintendents, not principals.
This spending comes amid a decline in the number of public school students. From the 2017-2018 school year, total students had decreased by more than 2 percent since 2014, according to Illinois’ Report Card figures.
An April report from the Metropolitan Planning Council found that Illinois was the only state in America that spent more than $1 billion in total administrative costs in 2016. Metropolitan Planning Council Associate Adam Slade said one issue common to Illinois is that many school districts have only one school, meaning a district and school administrator essentially duplicate their work.
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* WBEZ…
Initial offers by Illinois’ attorney general to settle a dozen lawsuits linked to the state’s mishandling of fatal Legionnaires’ disease outbreaks at the Quincy veterans’ home have been so sparse, some families are calling them “insulting.”
During Kwame Raoul’s campaign to become the state’s top law enforcement official, the Democrat called the state’s mishandling of the outbreaks “unconscionable.” Fourteen people died after getting Legionnaires’ at the largest state-run veterans’ home.
Following a WBEZ investigation into the outbreaks, then-state Sen. Raoul voted last fall to raise damage caps on lawsuits against the state to $2 million, and to make that increase retroactive to apply to a dozen families who lost loved ones at the Illinois Veterans Home and had pending negligence cases against the state. […]
To date, however, the attorney general has only made settlement offers that range between $200,000 and $500,000, WBEZ has learned.
The plaintiffs, at least one of whom appeared in a JB Pritzker campaign ad, are hopping mad. Go read the rest for their react.
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*** LIVE COVERAGE ***
Thursday, Aug 29, 2019 - Posted by Rich Miller
* I had one issue after another this morning. I’m working to resolve everything and finish up the subscriber edition. In the meantime, follow along with ScribbleLive…
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Question of the day
Wednesday, Aug 28, 2019 - Posted by Rich Miller
* Oops. Got busy and forgot to post one. I’m declaring a late-afternoon open thread. As always, keep it Illinois-centric and be nice.
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* These facilities don’t get nearly the same coverage as Sterigenics…
* More…
The lawsuits were filed on behalf of named plaintiffs Chandra Sefton; Dawn Rex and her three-year-old son; Kathleen Koch; and Patty Bennett. All of the plaintiffs lived within a 3.5 mile radius of the Vantage and Medline plants, and all of them have been diagnosed with forms of cancer, including leukemia and breast cancer, according to the complaints.
The complaints lay the blame for the cancer on alleged emissions of ethylene oxide from the Medline and Vantage plants.
The use of ethylene oxide (EtO) is widespread in industry. Sterilization plants, like that operated by Medline, use EtO gas to sterilize large quantities of medical devices, such as surgical implants, stents, catheters and surgical kits and other health care tools.
The chemical is also regarded in industry as a key “building block” ingredient, used to make a wide variety of other products used extensively on a daily basis in the U.S. and around the world. These include antifreeze; brake fluid; carpeting; upholstery; recyclable plastic packaging; and products made from fiberglass, including bathtubs and bowling balls, among other uses. Derivatives of EtO are also used to make shampoo, cosmetics, ointments and pharmaceuticals.
* Meanwhile…
Ouch.
* Related…
* Air testing for ethylene oxide in Waukegan, Gurnee shows highest results in residential area near Medline
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* Tribune…
Illinois State Police said more than 200 people who lost their gun licenses were brought into compliance with state law this summer, months after a gunman who had lost his license but kept his weapon opened fire in an Aurora warehouse and killed five employees.
Between May and July, state police working with local law enforcement agencies brought into compliance 256 people whose gun licenses had been revoked, requiring them to surrender their permits and complete paperwork accounting for their weapons, the agency said in a news release Wednesday. It highlighted a series of steps it has taken to boost enforcement of revoked Firearm Owner’s Identification cards, including designating officers to prioritize people who should be subject to further enforcement. […]
In a May investigation, the Chicago Tribune and The Beacon-News found nearly 27,000 Illinois residents over the past four years had failed to inform authorities what they did with their weapons after state police revoked their gun licenses.
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* Press release…
Today, Congressman Bill Foster (D-IL) issued the following statement in support of the U.S. House of Representatives opening an impeachment inquiry of President Donald Trump:
“I take no pleasure in announcing my support for the House to begin an impeachment inquiry into the President of the United States.
“I have wrestled with this decision over the past several months as I’ve listened to my constituents and reviewed the evidence presented by Special Counsel Robert Mueller, including his direct testimony to Congress.
“On the Financial Services Committee, on which I serve, I have seen President Trump attempt to block legitimate Congressional investigations into the role of foreign money in transactions by the Trump Organization, Deutsche Bank, and others.
“I have watched with horror as President Trump has perpetrated an assault on American values. In word and deed, President Trump has demonstrated an utter disregard for the rule of law and the fundamental principles that make up the foundation of our democracy.
“The Mueller report details several occasions – at least ten – where President Trump took actions to obstruct the Special Counsel’s investigation into Russian interference in our 2016 elections.
“Our Constitution vests Congress with the unique obligation to perform oversight of the federal government, including of the President and his administration. Under our system of checks and balances, no person – not even the President – should be above the law or immune from facing the consequences of their actions.”
* Sun-Times…
Foster is the 11th member of the Illinois congressional delegation to announce explicit support for an impeachment inquiry; the state sends 13 Democrats and five Republicans to the House.
The two other Illinois Democrats in the House, Reps. Cheri Bustos and Dan Lipinski, are following more closely the lead of House Speaker Nancy Pelosi and have more cautious positions, with a bottom line for both that they back the Trump-related investigations being conducted by five committees, including the House Judiciary panel.
House Judiciary Committee Chairman Jerrold Nadler, D-N.Y., is pursuing an investigation “into obstruction, corruption and abuse of power by Trump and his associates” in order to “determine whether to recommend articles of impeachment against the President.”
* Greg Hinz…
That leaves Lipinski, who in a separate statement said he’s standing with House Speaker Nancy Pelosi. “We don’t need and should not have an official ‘impeachment inquiry’ vote in the House at this time, I have been and continue to be in support of the investigative work that is being done in the House committees.”
Added Lipinski, “Right now, I think the best way to remove President Trump from office is voting him out in the 2020 election. This may change as the work of House committees continue, but if the House impeached the president now, it could backfire because the president would be able to say that he was persecuted by the Democratic House but exonerated by the Senate.”
I’ve asked the Marie Newman campaign for comment.
*** UPDATE *** Marie Newman…
I believe there is ample justification for an impeachment inquiry and I think that voters in my district are looking for a leader who will, at all costs, defend and uphold the Constitution. It’s unfortunate to see Dan Lipinski standing apart from other Democrats while President Trump continues to abuse power and exhibit blatant disregard for the Constitution. An official impeachment inquiry will bolster ongoing investigations in the House and make it clear to President Trump and his administration that no one is above the law.
Also, here’s another Dem candidate, Abe Matthew…
Congress must open an impeachment inquiry based on the actions of President Trump, as set forth in the Mueller Report. It is precisely the role of Congress to act as fact-finder in determining what role the President Trump played in Russia’s 2016 interference in our elections and to what extent the President obstructed justice in the ensuing investigation.
Our democracy can multi-task. Congress can conduct hearings related to an impeachment inquiry while we the people work to put a Democrat back in the White House. The people elected their members of Congress on the assumption that those members would be able to handle the wide array of issues facing our nation. Regardless of an impeachment inquiry’s ultimate result, it is imperative that Congress fulfills it’s obligation to investigate and give the American people some finality to this dark chapter in our nation’s history.
Rush Darwish…
“It’s no surprise that Dan Lipinski stands apart from 11 Democratic colleagues from Illinois and refuses to support opening impeachment proceedings against Donald Trump. Dan Lipinski has stood firmly in support of components of Donald Trump’s racist and backward agenda when it comes to healthcare, women’s rights, and immigration. Leadership is about taking a stand with courage, doing the right thing - not playing it politically safe with an upcoming election. This silence from Lipinski is just another example of why we need to elect more bold, independent Democrats like who will fight Trump and not bow to party leadership on either side.”
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* Las Vegas Advisor last month…
JP Morgan‘s Daniel Politzer expects Churchill Downs to be a winner thrice over in Illinois: first, a lower tax rate on table games, starting in 2020; second, a potential 800 additional gaming positions at Rivers Casino Des Plaines (which will probably require physical expansion: it’s pretty packed in there); third, slots at Arlington Park, though Politzer thinks Churchill Downs may sell the latter now its real estate is more valuable, among several other options: “we could envision a scenario whereby CHDN would opt to sell its 336 acres of land at Arlington Park, utilize a 1031 exchange to limit tax leakage, and pursue an additional casino license in Illinois (potentially with Rush Street Gaming/Neil Bluhm; the Waukegan license seems most logical, in our view …).”
Since Arlington and Rivers are only 15 minutes apart, Churchill Downs might look askance at the obvious cannibalization. Arlington’s capacity will also be capped at 1,200 gaming positions, unlike Waukegan. Rivers can also absorb a nearby competitor, as its per-position numbers are out of sight, the most impressive I’ve ever seen in gaming: $800/win/slot/day and $7,300/win/table/day. Politzer estimates that the tax cut will translate into $45 million extra a year in cash flow, too. Churchill Downs bought 61% of Rivers at a well-above-average 11.25X cash flow, but one easily see why it was worth it. With the tax cut, that multiple goes down to 8.3X, closer to industry average. That number could go yet lower still if Rivers maxes out its gaming positions.
As for competition from the 4,000-position mega-casino in Chicago, “We acknowledge concern that a Chicago casino could be a negative for Rivers/Waukegan, but see potential for the political stars to once again align and the casino (if even feasible at the proposed 67% tax rate) being located on Chicago’s south side.”
* Crain’s last month…
With the looming super-saturation of the Chicago-area casino business, one theory is that Churchill Downs will opt to focus on its Rivers Casino stake, a pure-play gambling option, and one that comes with Rivers co-founder and Chicago real estate magnate Neil Bluhm, whom Carstanjen, 51, has said he values for his local political savvy.
“Local political savvy.”
Just the other day, Churchill Downs and Neil Bluhm’s Rush Street Gaming, put in a bid to jointly operate Waukegan’s casino.
* Today in Crain’s…
The owner of Arlington International Racecourse is threatening to close the storied horse track despite winning long-sought authority to add gambling options there.
Louisville-based Churchill Downs blames prohibitive tax rates that would penalize it relative to competing Chicago-area casinos, it said.
* The proximity to Bluhm’s Rivers Casino is clearly an issue, however. From the company’s press release…
All options will be considered, including moving the racing license to another community in the Chicagoland area or elsewhere in the state.
* Churchill Downs’ CEO did complain about taxes in the press release, but that was about the new state-mandated payments to horsemen…
Arlington would enter this market with an effective tax rate that would be approximately 17.5% - 20% higher than the existing Chicagoland casinos due to contributions to the Thoroughbred purse account.
* The Illinois Thoroughbred Horsemen’s Association was not amused…
We are stunned and profoundly disappointed by Churchill Downs’ decision not to pursue supplemental gaming at Arlington Park in order to do its part to grow jobs and economic opportunity for thousands of Illinois men and women both at the track and throughout the state’s agribusiness community.
For more than a decade, Arlington has lobbied Illinois governors and legislators for permission to offer casino-style games as a means to boost revenue at the track and generate funds to significantly improve the quality of horsemen’s purses. Indeed, Arlington in recent years elevated its lobbying push by insisting that the track be granted the authority to offer table games – in addition to slots – to ensure its racino would be economically feasible.
Yet now that it is finally poised to operate both slots and table games, as a direct result of the gaming law recently approved, Arlington’s parent Churchill Downs has, astoundingly, declined to apply for the license necessary to operate a racino. The company evidently plans to instead abandon its commitment to racing in Illinois and focus solely on its stake in the Rivers Casino and potentially other Illinois casinos not yet developed. Churchill has snubbed not only the working men and women of thoroughbred horse racing whose collective livelihood depends on live racing, but also all of the elected officials it has so intensely lobbied over the last decade.
As a consequence of its abrupt change in course to the detriment of this state and its taxpayers, Churchill immediately should be denied the enormous financial advantages it enjoys by virtue of its now-annulled commitment to Illinois racing. Those include Arlington’s considerable property tax break ($2.47 million this year), the track’s recapture subsidy ($4.47 million in 2019 alone, straight from horsemen’s purses), and the chance to apply for a sports betting license linked to Arlington (a form of gaming that will do nothing to benefit purses).
In clear contrast, Hawthorne Race Course has applied for its racino license and has, moreover, made clear its plan to maximize the benefit of that license for thoroughbred racing.
* More…
CDI’s decision not to move ahead at Arlington triggers another portion of the new law relating to the number of “gaming positions” allowed at each racino.
The law states: “Each applicant for an organization gaming license shall specify in its application for licensure the number of gaming positions it will operate, up to the applicable limitation … Any unreserved gaming positions that are not specified shall be forfeited and retained by the [Illinois Gaming Board].”
The board then is required to “allocate expeditiously the unreserved gaming positions to requesting organization gaming licensees in a manner that maximizes revenue to the State.”
Churchill Downs wants to protect Rivers, but slots at Arlington would threaten Rivers. So, it complains about taxation, blames the horsemen and hints that it will move the track elsewhere. And Rivers could wind up with even more gaming positions in the process.
…Adding… The Mayor is correct…
Arlington Heights Mayor Tom Hayes said he interprets the announcement as a corporate decision about Churchill Downs’ unwillingness to compete with its gambling operations at River Casino in Des Plaines.
That company should probably be broken up.
*** UPDATE *** Emily Bittner in the governor’s office…
This represents a significant reversal from the years and years of race track owners seeking additional ways to generate revenue to keep their operations working. In fact, the gaming legislation provides several opportunities for significant additional revenues, including table games and slots. Just as importantly, the legislation allows the racing industry to flourish instead of facing more years of decline. Just to be clear: actions taken around gaming will be done to benefit the people of Illinois, not solely for the bottom line of individual operators.
My question was: Should the Illinois Gaming Board break up the Churchill Downs/Rivers partnership? Not exactly an answer.
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*** UPDATED x1 *** Let’s get it together, please
Wednesday, Aug 28, 2019 - Posted by Rich Miller
* Molly Parker…
The law allows current medical cannabis dispensary operators to seek a license to sell recreational marijuana, so long as they continue to provide products for medical use. The idea in allowing the medical marijuana dispensaries the ability to also sell recreational marijuana was to ensure the state has at least a minimum number of facilities open and operating on Jan. 1.
But some medical dispensaries may need to change locations. That could mean moving down the block where parking is better, or to another city entirely, if the one where the operator is presently located decides to prohibit recreational sales.
The law allows municipalities the ability to opt out, as well as implement zoning requirements, much like with liquor stores. Yet the state’s regulatory agency recently informed medical dispensary operators that if they move locations, they forgo their ability to receive a license for adult use recreational sales.
This narrow interpretation of the law runs counter to lawmakers’ intent, according to a letter from two of the bill’s sponsors sent to Pritzker late last week. It also represents an about-face by the Illinois Department of Financial and Professional Regulation, which issues the licenses.
What the what?
* There are other worries…
Advocates are concerned that the state has not yet set up a funding program meant to make it easier for those with marijuana-related arrests on their records to start businesses in the industry. The application process for 75 new dispensaries opens Oct. 1, and time is running out, they say.
The applications will be the first path into the industry for entrepreneurs who don’t already operate a marijuana facility, and those applicants could face stumbling blocks if there isn’t clarity on the promised financial aid.
“People are … working on their plans, they’re working on their locations, they’re working on what they can work on, but they don’t know how much money they have to spend,” said Edie Moore, executive director of Chicago NORML, a marijuana reform nonprofit that has been working with people preparing to apply for licenses.
The state’s Department of Commerce and Economic Opportunity is charged with establishing the grant and loan program. Spokeswoman Charity Greene said it will issue details on the program, including loan and grant sizes, by the time the state begins accepting applications.
*** UPDATE *** From the governor’s office…
August 27, 2019
Senator Steans and Representative Cassidy:
Thank you for sharing your concerns about the Department of Financial and Professional Regulation’s implementation of certain provisions of the Cannabis Regulation and Tax Act. Your dedication to this issue and leadership during the legislative session led to the most equity-centric law in the nation to legalize adult-use cannabis. Now through implementation, I am confident that we can build a safe, successful and equitable adult-use cannabis market.
The early access to market for existing medical dispensaries was intended to ensure that the State has a minimum number of facilities open and operating on January 1, 2020, and to allow the State to use funding from those early facilities to build a fund for social equity programs. Keeping equity in mind, however, the Act was also designed to balance this early growth for existing medical dispensaries with our commitment to bringing in new applicants through the social equity program.
With an understanding of the existing medical dispensaries’ current capacities, we struck that balance by providing the opportunity for existing medical dispensaries to open two adult use dispensaries before any new businesses can enter the market: one at their current medical dispensary and one at a different location. The language of the bill distinguishes between these two dispensaries. The statute specifically provides that the first is to be opened at “any medical cannabis dispensing location in operation on the effective date,” Section 15-15(a), and the second may be opened at “a secondary site…within any BLS region that shares territory with the dispensing organization district to which the medical cannabis dispensing organization is assigned,” Section 15-20(b).
This language allows for early expansion by the existing medical dispensaries but, importantly, seeks to ensure that they do not completely dominate the new market before new dispensaries can enter the market in July 2020. Any implementation of the early approval program by the Department of Financial and Professional Regulation must maintain this balance between early growth and social equity that was written into the law.
I appreciate the concerns that you and the medical cannabis industry have raised regarding medical dispensaries in operation on the effective date located in municipalities that ultimately opt out of adult-use cannabis or that impose zoning restrictions that prevent adult-use sales at the current medical dispensary sites. Medical dispensaries in such a situation are still permitted early access to the new adult-use market by opening a secondary site under the Act while continuing to operate their existing medical dispensary. At this time, the Department does not know how many medical dispensaries will not have the opportunity to operate at their current sites as many municipalities are still considering how to proceed. The Department will continue to monitor the situation to assess and my office is more than willing to discuss potential solutions with you when we have a better understanding of the scope of the problem.
We value your input as we work through implementation of this historic legislation and we look forward to continuing this conversation about how to ensure success for all aspects of this new industry.
Sincerely,
JB Pritzker
* And there’s this…
Hope Smith said her 19-year-old daughter uses medical cannabis to alleviate a qualifying medical condition. She said her daughter was able to get more precise doses of the medicine by vaping or smoking it as opposed to other cannabis products.
After the governor signed the medical cannabis expansion measure making the pilot program permanent and adding conditions, Smith said she was told by her dispensary that the updated law no longer allows the sale of smokable products to adults younger than 21.
Smith said that needs to change for her daughter’s sake.
“The medical marijuana and dispensaries, and the diseases, for people that are able to buy it and are able to get the right medicine, I don’t want my child to turn to buying flower or vape on the street, I don’t want her to use an opioid,” Smith said. “Because those are unsafe.”
State Rep. Bob Morgan, D-Deerfield, sponsored the medical cannabis expansion measure the governor signed.
“There was a good intention behind [the change aligning with Tobacco 21] … but as with anything, there are unintended consequences with new legislation and I think this is a great example of the potential harm that can happen to individuals when you start to conflate different topics,” Morgan said.
* But check this out…
Former Chicago Ald. Ameya Pawar wants to get into the cannabis business with a restaurant entrepreneur, a doctor and a political consultant. They’re angling for one of the 75 new licenses to operate a retail dispensary in Chicago once recreational use of marijuana becomes legal next year.
Pawar and his partners, including political consultant and fundraiser Hanah Jubeh, have come up with an over-the-top plan that combines elements of dining, spa and medicine with marijuana sales.
“We’re focused on total wellness,” says Pawar, a former 47th Ward alderman who briefly ran for governor in 2017 and then lost the city treasurer race in April. “It’s going to be a place where you could get a massage or take a yoga class, get a bite to eat and stop at the dispensary on your way out.”
* More…
Additional partners to join Pawar and Weiner include:
* Dr. George Chiampas, an emergency room doctor and medical director of the Chicago Marathon
* Nikki Hayes, president of Laborers International Union of North America, Local 1001
* Hanah Jubeh, a political consultant and fundraiser. […]
Pawar told Crain’s he plans to apply for social equity applicant status and aims to hire more than 50 percent of his staffers from areas affected by the war on drugs.
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New laws
Wednesday, Aug 28, 2019 - Posted by Rich Miller
* Almost exactly four years ago…
It’s a time-honored tradition for Illinois governors to invite lawmakers, journalists and members of the public to ceremonial bill signings, an easy way for the chief executive to take credit for accomplishments and create a sense that he’s getting things done. Rauner has signed more than 400 bills into law since he took office in January. He has held zero public signing ceremonies.
Asked why that’s the case, Rauner spokesman Lance Trover did not directly answer the question but did say the “work of the General Assembly is not done.”
The governor’s allies in the General Assembly put a finer point on it: The stalemate has set up a situation where Rauner has tried to keep the focus on his agenda and the pressure on Democrats to pass it. Highlighting the achievements of others would detract from that effort.
“Bill signings are ceremonial, and they’re meant to be almost like victory laps,” said House Republican leader Jim Durkin of Western Springs. “I don’t see any reason why anybody would be celebrating what has happened in Springfield until we get a budget done.”
And that refusal to celebrate any victory - small or large - continued almost unabated for years. He refused to take a win on just about anything until he had to declare defeat last November.
* Capitol News Illinois today…
Democratic Gov. J.B. Pritzker on Tuesday signed the final three bills of the 599 sent to him by the Illinois General Assembly during the spring legislative session.
Per the final tally, Pritzker signed 591 of the bills into law, while vetoing seven and sending one back to the General Assembly with an amendatory veto. The General Assembly will return in late October and early November to discuss new legislation and consider overriding any of the vetoes.
Among the final measures signed by the governor this week was the Home Energy Affordability and Transparency Act, which aims to provide greater regulation on alternative energy providers, many of whom go door to door locking customers into high energy rates.
Unlike Rauner, Pritzker has held numerous bill signing events. There have been exceptions, however. He didn’t have any sort of event when he signed Leader Durkin’s Sterigenics-related bill into law, for instance.
…Adding… Pritzker deputy press secretary…
* Related…
* CUB Statement On Gov. Pritzker Signing HEAT Act
* Public companies in Illinois will soon have to disclose racial, gender makeup of corporate boards
* IL bars and restaurants can now fill growlers and crowlers: A growler is a 64 ounce resealable jug, a crowler is a 32 ounce can that breweries use to serve to-go beer .
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Lightfoot marks 100 days in office
Wednesday, Aug 28, 2019 - Posted by Rich Miller
* Mayor Lightfoot’s press office…
* Creation of a multifaceted comprehensive crime-fighting strategy centered on unprecedented citywide coordination that has resulted in nearly 7,000 guns recovered year-to-date, a three-year low in murders, shooting incidents at their lowest count since 2015 and 20-year lows in robberies, burglaries and motor vehicle thefts.
* Directing a significant expansion of school staffing and resources, including an unprecedented equity-focused budget, commitment to increasing social worker, nurse and special education case manager positions, and one of the largest capital budgets in recent history with investments to upgrade classrooms and facilities at over 300 schools across the city in 2020.
* Passing the most comprehensive worker scheduling law in the nation that will finally give lower-wage workers and their families predictability in scheduling and fairer working conditions.
* Begun reforming an historically regressive fines and fees system in order to help people move into payment plans and compliance, instead of into bankruptcy.
* Overhauling the workers’ compensation program to improve benefits to workers and reduce liability and claims costs to the city.
* Achieving passage of a series of ethics and good governance reforms to ensure the City operates more efficiently, transparently and in a way that is accountable to all residents and taxpayers.
* Doubling down on protections for immigrant and refugee families by issuing an executive order to terminate ICE access to citywide databases and city facilities, increasing legal aid funding by $250,000, and uniting with community and business leaders to address fears in the wake of threats.
* Working with partners to secure authorization on a Chicago casino, and taking additional steps toward creating a long-term sustainable financial plan for the City.
* Creating the City’s first-ever Office of Racial Justice and Equity to oversee the development of policies and practices to advance racial and social equity for the City.
* Creating the City’s first Chief Risk Officer position, which will focus on launching an enterprise risk management system to reduce the cost of legal settlements to the City.
* Beginning steps toward a comprehensive redevelopment strategy to tackle years of disinvestment on the City’s South and West sides, including creating a coalition of over 40 business leaders to participate in a corridor reinvestment strategy.
* Launching a new and improved Qualified Allocation Plan (QAP) which for the first time makes explicit collaboration with the Continuum of Care, resulting in a coordinated application process for addressing homelessness.
I’m not sure claiming credit for the guns confiscated since the beginning of the calendar year is accurate, but your thoughts otherwise?
* Related…
* Chicago Mayor Lori Lightfoot holds panel discussion to mark 100 days in office
* Quig: Lightfoot grades herself
* Tribune: Chicago Mayor Lori Lightfoot 100 days in — reform at City Hall still a work in progress: ‘We haven’t declared victory, but I think we’ve taken some very positive steps’
* Greg Hinz: 100 days and counting: A hard look at how Lightfoot is doing
* Fran Spielman: Lori Lightfoot’s action-packed first 100 days
* CBS 2: Mayor Lightfoot Reflects On 100 Days In Office
* Critics give Lightfoot D grade as she nears 100 days in office
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* Tuesday afternoon press release…
Governor JB Pritzker today announced a major step toward the sale of the James R. Thompson Center (JRTC). The Illinois Department of Central Management Services (CMS) will issue a Request for Proposals (RFP) this week for an array of technical and project management expertise for the disposition of the JRTC at the best value to the State of Illinois.
“The Thompson Center is an inefficient work environment for the current demands of State business,” Governor Pritzker said. “Today we are moving forward with the process of selling the facility and using the proceeds to help stabilize the pension system.”
Opened in 1985, the JRTC is a 17-story marble, granite, glass, and steel structure, encompassing approximately 1.2 million sq. ft. of enclosed area. The building’s steel frame is topped by a cylindrical skylight, 75 ft. above the roof level. The sky-lit rotunda is 160 ft. in diameter and is surrounded by 16 floors of open office space. The main building enclosure system is glazed with single-pane, non-thermally broken aluminum frames. The system is energy inefficient and does not meet current standards for performance or thermal comfort.
Because of prolonged deferred maintenance and delayed capital projects, the construction cost in 2016 was estimated to be over $300 million to bring the building into a good state of repair. The facility is also larger than necessary and costly to operate with annual operating expenses exceeding $17 million. By divesting of the oversized, outdated and expensive facility, the State can relocate its core services to appropriate replacement spaces. This strategic relocation effort will reduce operating costs and increase productivity.
“Issuing this RFP moves the State a step closer to selling the property,” CMS Acting Director Janel Forde said. “The property is inefficient and expensive to operate. The State can achieve significant cost savings by relocating to more optimized space.”
The RFP for Technical and Project Management Expertise will be issued this week; responses are due at 1:00 P.M. Central Time on October 4, 2019. A copy of the RFP will be available on the General Services Illinois Procurement Bulletin, also referred to as the Bulletin or BidBuy (https://www.bidbuy.illinois.gov/bso/). The Offeror’s conference meeting and networking event will be held at the JRTC in Chicago and at the Stratton Office Building in Springfield at 1:00 P.M. Central Time on September 13, 2019.
In April, the Governor signed Senate Bill 886 into law that dictates the process for the sale of the property.
The move is the latest by the Pritzker administration to ensure the State’s pensions are sustainably funded. In February, the Governor established the Pension Asset Value and Transfer Task Force and the Pension Consolidation Task Force. Both task forces will provide recommendations and help finalize a long-term pension reform plan. In April, Illinois received significantly stronger than expected revenues that allowed the State to meet the current funding commitment to the pension systems without extending the ramp.
* CBS 2…
Former Gov. Bruce Rauner announced in 2015 that he planned to ask state lawmakers to ask him to unload the Thompson Center. At the time, Rauner said the building needed $100 million in maintenance in the few years to come, and said selling the building and moving state workers elsewhere could save the state between $6 million and $12 million annually.
Then-Mayor Rahm Emanuel blocked efforts to go ahead with the sale, insisting that the city must not be held financially responsible for rebuilding the Chicago Transit Authority Clark/Lake Blue Line subway station inside the building as part of any major redevelopment of the site.
In 2017, Rauner offered to dedicate all future property tax revenue from a Thompson Center sale to help fund the Chicago Public Schools – a proposal that Emanuel dismissed as a political stunt. Afterward, Emanuel said he would help rezone the Thompson Center property in exchange for a city pension deal. Rauner refused the offer.
* Tribune…
If the building is sold, state employees will be moved across LaSalle Street to the Michael A. Bilandic Building and to other state-owned or -rented offices, according to the governor’s office. […]
Pritzker spokeswoman Emily Bittner said the governor’s office has “had a number of productive conversations with the city about the transaction, including zoning.”
Chicago Mayor Lori Lightfoot’s office confirmed in a statement that the governor’s office had been in touch.
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