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Let’s see if they’re putting their money where their mouths are

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Illinois

* Press release…

State Rep. Emanuel “Chris” Welch, D-Hillside, is calling on institutions of higher education in Illinois to release data on their use of Black-owned businesses for professional services.

“Colleges and universities in Illinois are second to none when it comes to leadership in learning and education, but we don’t know if that is the case for these institutions when it comes to providing economic justice for African Americans and Black-owned businesses,” Welch said. “That’s why I’m calling on all public and private colleges and universities in Illinois to release data about their employment of Black-owned professional service firms.”

Welch sent a letter to the presidents of public and private colleges and universities in Illinois calling on them to disclose data about contracting and employment at their institutions regarding the hiring of Black professionals and Black-owned professional service firms. Welch’s letter was sent to the leaders of Bradley University, Chicago State University, DePaul University, Eastern Illinois University, Illinois State University, Loyola University Chicago, Northeastern Illinois University, Northern Illinois University, Northwestern University, Southern Illinois University at Carbondale, Southern Illinois University at Edwardsville, University of Chicago, University of Illinois at Chicago, University of Illinois at Springfield, University of Illinois at Urbana-Champaign, and Western Illinois University. Welch demanded that the data include information for the colleges and universities as well as their endowments and foundations.

“Economic justice and equity have always been tied directly to the quest for racial justice for African Americans. That’s why it is critical that Black-owned businesses that provide professional services including investment management and legal consultation, among other areas, are given a fair opportunity for contracting,” Welch said. “Our institutions of higher education can’t achieve their missions and can’t demonstrate their values to students if they aren’t providing equitable and inclusive opportunities for Black-owned businesses.”

The letter is here.

Too often, lip service is paid on this topic and then you scratch the surface and find out the good ol’ boy network barely hands out crumbs, if that. Hopefully, these universities cooperate fully and, if need be, change their ways.

posted by Rich Miller
Thursday, Jul 23, 20 @ 11:27 am

Comments

I think CMS has contracting data sorted by M/W/D/BE status for all of these universities. It’s required for the public universities, and the privates all voluntarily filed reports last year for the first time. Maybe Rep. Welch could start there?

Comment by 47th Ward Thursday, Jul 23, 20 @ 11:34 am
It’s a good question to ask.

Comment by Siualum Thursday, Jul 23, 20 @ 11:51 am
Really important question, and I look forward to the publication of the results and the ensuing discussion.

A couple weeks ago I listened to an interview with John Rogers, Jr. (Ariel Investments), who noted among other things that the “med and ed” complex had proven very unwilling to adopt the concept of contracting with Black-owned businesses for goods and services. It was clear that he was disappointed and perhaps puzzled by their unwillingness.

Comment by dbk Thursday, Jul 23, 20 @ 12:00 pm
Good for Rep. Welch. Higher ed is definitely all talk about social justice and diversity when it comes to their curriculum. Doubt you’ll see much of that when it comes to their pinstripe patronage.

Comment by phocion Thursday, Jul 23, 20 @ 12:01 pm
Bang the drum and look at me, right Rep. Welch? Even though CMS has much of this data. Oh, and let’s discard bidding procedures for the lowest and best bid - is this the real motivation?

Comment by Motambe Thursday, Jul 23, 20 @ 12:05 pm
seems like we already have this

“not less than 20% of the total dollar amount of State contracts, as defined by the Secretary of the Council and approved by the Council, shall be established as an aspirational goal to be awarded to businesses owned by minorities, women, and persons with disabilities”

” Implementation and applicability. This Act shall be applied to all State agencies and public institutions of higher education.”

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=550&ChapterID=7

Comment by Donnie Elgin Thursday, Jul 23, 20 @ 12:12 pm
Professional services like architects and engineers are selected based on qualifications, not low bid, per state law. These institutions should be selecting the most qualified firms for the job, hopefully that’s what they are doing. Also, many of these contracts already have MBE/DBE requirements so work should be flowing to minority owned businesses.

Comment by Davis Junction Thursday, Jul 23, 20 @ 12:12 pm
Good idea for a “look-see”

Tough to see a reason to be against it.

The real rubber to road will be, “ok, we’re here, what needs to get better”… then actually implement changes seem predicated from *these* actual results.

Comment by Oswego Willy Thursday, Jul 23, 20 @ 12:22 pm
Look at the location of some of these institutions. The demographics in the region may not necessarily lend them to availability of local minority owned businesses.

Comment by M Python Thursday, Jul 23, 20 @ 12:28 pm
“The demographics in the region may not necessarily lend them to availability of local minority owned businesses.”

the solution is politicians not politicizing this and getting objective data on the city/county where the universities are. The census is a good place to start and drill down from there.

Comment by 1st Ward Thursday, Jul 23, 20 @ 12:32 pm
So, commenters here are citing the law & regs in a state known for political corruption surrounding contracts and kick-backs and public funds?

Um, you think Welch doesn’t know what the law is? You think it’s being followed in all cases?

Wake up.

Comment by Blue Bayou Thursday, Jul 23, 20 @ 12:42 pm
Yes we have aspirational goals all over the place. Yet Black and Brown companies don’t have 20% participation in ANY sector. There is plenty of data to support that when hiring minority firms, they often perform better than most companies. So the knee jerk comments about hiring the most well qualified firms do not explain why the disparities exist. Also, professional services are not included in the “goals”. Further, it is way too easy to get a waiver saying you couldn’t find any minorities. Big institutions don’t just rely on local businesses for their major contracts, they pull from across the country. So they always can’t find anyone, then minorities don’t get the work and can’t scale up, so when new contracts are let, there aren’t any minorities companies.

You see?

Comment by Sideline Watcher Thursday, Jul 23, 20 @ 1:02 pm
why doesn’t he lead the charge to change Illinois procurement practices to include professional services in the MBE/WBE program.

Comment by Blue Dog Dem Thursday, Jul 23, 20 @ 1:12 pm
===…providing economic justice for African Americans and Black-owned businesses,” Welch said.===

Does saying …providing economic justice for Latino Americans and Brown-owned businesses, get you in trouble?

How about saying …providing economic justice for minority Americans and minority owned businesses. I understand the phrase “the early bird gets the worm” and Rep. Welch is representing his caucus but anyone that has watched the GA happenings understands the conflicts that arise between the minority caucuses. This just adds to the conflict and distracts from the mission of more minority representation. I joint letter from the two minority caucuses would have been a more desirable path.

Comment by Nagidam Thursday, Jul 23, 20 @ 1:13 pm
The U of I data is available in their Board of Trustees materials: http://www.trustees.uillinois.edu/trustees/agenda/September-19-2019/r-sep-MAFBE-FY19Q4.pdf

Comment by thechampaignlife Thursday, Jul 23, 20 @ 1:15 pm
The UofI data doesn’t look good if i’m reading it correctly. Total Budget Expenditures subject to goal $1.3Bn only $88MM to woman and minority owned and 17% of the $88MM going to Black owned business….

Maybe DePaul or UofC looks better (i’m not betting on that). I don’t see this turning out well.

Comment by 1st Ward Thursday, Jul 23, 20 @ 1:26 pm
47th Ward - thanks. When David Vaught led the Procurement Policy Board, university staff approached the PPB to raise the Professional & Artistic no-bid limit from $20 thousand specifically for this reason. Since then, hasn’t it been raised to $100 thousand?

Comment by Anyone Remember Thursday, Jul 23, 20 @ 1:27 pm
The UofI data does not look good unless i’m interpreting it wrong. $1.3Bn subject to goal only $88MM in “diverse spend” with 17% of $88MM going to black ownership. Can’t imagine others are doing better ex DePaul or UofC (maybe).

Comment by 1st Ward Thursday, Jul 23, 20 @ 1:30 pm
It would be easier for minority, women owned, vets etc to do business with the state if business owners didn’t have to deal with so much red tape. You can be certified in Chicago and Cook County but the State of Illinois doesn’t recognize those certifications. It is a lot of paper work for small businesses and many feel not worth the time and effort.

Comment by Because I said so.... Thursday, Jul 23, 20 @ 1:31 pm
@Rich
good headlines today (and everyday)

Comment by walker Thursday, Jul 23, 20 @ 1:31 pm
It’s unconstitutional for public institutions to consider race in selecting bids for expenditures.

Comment by Downstate Illinois Thursday, Jul 23, 20 @ 1:50 pm
Lolz. Welch is using this as a business development tool for himself. “Professional services” = law firms = hire his own, Ancel Glink.

Comment by Random Lee Thursday, Jul 23, 20 @ 2:25 pm
Because I Said So @1;31. You are so correct.

Comment by Blue Dog Dem Thursday, Jul 23, 20 @ 2:54 pm
@m python - if colleges and universities can go across the country to find basketball and football players, surely finding minority contractors within the state isn’t that tall of an ask.

Comment by Big L Thursday, Jul 23, 20 @ 3:03 pm
Because I said so…. correct. Perfect example. Pre 2007, had a Sangamon County based vendor who was obviously physically disabled, but refused to enroll in the BEP Program. Complained specifically about the paperwork involved in the initial certification process, and even more loudly about the annual re-certification process. Pre 2007, (s)he was doing enough business with the Constitutionals (s)he didn’t need access to BEP. It took the 2007 Meltdown and ensuing slow recovery to make the onerous process worthwhile.

Comment by Anyone Remember Thursday, Jul 23, 20 @ 3:24 pm
“It’s unconstitutional for public institutions to consider race in selecting bids for expenditures.”

Correct. So why are the recipients of 92% UofI bids overwhelmingly one race when there’s census data showing 50% of Chicago and 27% of state businesses are minority owned?

Something seems afoot.

Comment by 1st Ward Thursday, Jul 23, 20 @ 3:31 pm
As someone with experience in this area, it’s going to take more than asking for data (that is already public) and then shaming the Universities for their output. Numbers will only indicate businesses that are CMS “certified”, which comes with numerous problems, of primary importance the lack of certified diverse business in these areas. Additionally, the Illinois Procurement Code was not designed for maximum inclusion, rather maximum competition, which means all firms have to win solicitations on a completely transparent and over-regulated process. In Illinois the Universities couldn’t simply give business to diverse vendors no matter how much they try, it has to be won. Rep. Welch is top-notch, but he knows all this, I’ve told him personally.

Comment by Tired2020 Thursday, Jul 23, 20 @ 4:58 pm
The same Mr. Welch who made a habit of awarding no-bid contracts to his friends? Who used taxpayer dollars to pay his own personal legal bills? The same Mr. Welch who hired up to 19 close friends and relatives while he was president of the Proviso High School District 209 board, including a $56,000 janitorial job for his brother, Billy Welch, and a $90,000 foreman job for the best man at his wedding, Ron “R.C.” Anderson? That’s rich, Rich. Soooooooo glad he’s making sure we’re all following the laws when it comes to hiring. That this guy and those at the trough on both sides of the aisle still have jobs as elected leaders says a lot about the people who continually send these hacks to Springfield. We get the government we deserve, good and hard.

Comment by Far West Sider Thursday, Jul 23, 20 @ 5:43 pm
Did anyone bother to read the letter? Welch mentions three specifics services: financial services, investment management, legal consultation. Northwestern is his alma matter. Sounds like a play for Northwestern and other universities to hire him.

Comment by Barrington Thursday, Jul 23, 20 @ 6:26 pm