POWIP Piece of Work In Progress – Former Abode of Dan Collins

21Aug/111

State of the City: Blithe Comments from Rahm

Let's see what Rahm Emmanuel has to say about his nascent mayorlty:

If Rahm Emanuel had known being mayor of Chicago was this much fun, he likes to joke that he would have “primaried” his political mentor four years ago.

“As I told Rich Daley, ‘You didn’t tell me the truth. You said it was gonna be a good job. It’s not a good job. It’s a great job.’ I tease him about that all the time,” Emanuel told the Chicago Sun-Times in an interview on his first 100 days in office.

“I’m having a blast. . . . [Wife] Amy and the kids [say], ‘Dad seems happy.’ If you want to see change and see what you’re doing impact people, this is one of the most dynamic and exciting opportunities of a lifetime. . . . It sure beats walking around with the world on your shoulders” as White House chief of staff.

Awwwww, how endearing.

Let's look at what he's been up to!

First, he's hired some consultants to cut city contracts to the bone:

Mayor Rahm Emanuel on Thursday hired a private consulting firm to consolidate and overhaul city contracts and wring at least $25 million in savings out of $500 million in purchases.

The savings generated by Accenture are expected to come from renegotiating some contracts, rebidding others and combining purchases by individual city departments to get a cheaper bulk price.

The contract calls for the company to review $500 million in contracts and get 10 percent of the first $70 million in savings, with a smaller percentage after that. But Accenture will not get paid at all until Chicago taxpayers get their check.

Actually, that sounds good to me.

But there are harder cuts as well:

Of all the sad statistics related to the financial crisis at Chicago Public Schools, one of the most alarming is simply this: The school district is spending millions more every year to educate fewer children.

Into this mess steps Jean-Claude Brizard and a new leadership team pledging to rebuild the financial footing and repair the miserable academic performance of a school district that, by most measures, is struggling.

Brizard said Thursday that the previous leadership had only recently awakened to the bloated bureaucracy at CPS — trimming central office staff by 327 since 2009 — but that cuts should have been deeper.

"If we don't make these courageous decisions, we're going to be right back where we were — where past CEOs, past administrations, have faced problems and didn't do enough to actually correct it," Brizard said in a meeting with the Tribune's editorial board. "The very financial health of the system hinges on that."

Some of the decisions envisioned include:

•Closing schools, including charters, that aren't working or are underenrolled.

•Restructuring contracts with teachers, janitors, bus drivers and other pacts that have become burdensome.

•Consolidating jobs and departments within the central office.

•Laying off staff.

•Raising taxes when necessary.

•Creating a school system where the best-performing, not the longest-serving, principals and teachers earn the most money.

Previous administrations have made similar promises, only to see the problems get worse. But Brizard says this mandate for change comes from Mayor Rahm Emanuel.

Still, cutting fat is good.

But hey - what's this extra thing he wants to pay for?

Is Rahm nuts?

Mayor Rahm Emanuel today said the city has an obligation to pay for former Mayor Richard Daley’s legal defense if he is sued for alleged police brutality conspiracies that happened under former Chicago police Cmdr. Jon Burge.

The city will not, however, run up unnecessary legal bills to defend Daley or Burge, Emanuel said.

“We’re not going to be reckless and let the meter run legally,” Emanuel said.

Really? Why don't we stop this one before it even starts then.

Who was Daley working for when all of this allegedly occurred? Does Rahm even remember Daley's title at the time?

•Cook County State's Attorney

Chicago wasn't employing him at the time, nor signing his checks. So what the hell is Rahm doing promising to pay for Daley's alleged actions?

To be sure, if it was when Daley was Cook County's State Attorney he has absolute immunity, and my understanding is that the civil complaint is based on when Daley was mayor.

But frankly, I don't see that with all this scrounging for spare change in Chicago's couches, that Rahm can make a great case that the less-than-pristine Daley should be defended with the tax dollars of Chicago.

But I guess he's hoping for the same courtesy when he's ex-mayor.

Thanks to reader TRB in pointing me to the Second City Cop blog -- other posts of interest:

Rahm finds another $20 million

2nd City Cop on the Accenture deal

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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2Aug/111

Play the Chicago Game and Avoid Taxes

What's so special about Lollapalooza (that thing is still going on? Jeez, it started when I was in high school...but it looks it has much fewer venues now) that it gets a $1-million-holiday from taxes?

Oh, I'm sure it's just coincidence they had hired one of Daley's nephews:

And if Lollapalooza wasn’t already enough of a financial bonanza for its promoters, who grossed more than $21 million last year, City Hall and Cook County government officials are doing their part to boost the festival’s bottom line, even as they struggle with their own budget crises, which threaten to result in layoffs of city and county workers.

For a seventh straight year, the city and county are exempting Lollapalooza from paying the amusement taxes normally imposed on arts and athletic performances and even movies.

That will save the promoters — Austin, Texas-based C3 Presents LLC — more than $1 million in taxes on the 270,000 tickets sold for this years’s festival, which opens Friday.

Lollapalooza got its latest waiver from the city’s 5 percent amusement tax in the waning days of the administration of Mayor Richard M. Daley, whose nephew Mark Vanecko has been a lobbyist and lawyer for the festival promoters, helping to negotiate their current 10-year contract with the Chicago Park District.

Just business as usual, guys. Nothing to see here.

I liked this detail:

Also, the contract says C3 has to comply with the park district’s affirmative-action goals — which call for subcontracting 25 percent of work to minority-owned businesses and 5 percent to women-owned companies. The park district says 14 of the 57 Lollapalooza vendors are owned by minorities or women. It won’t identify them. Nor will the district or the foundation provide any records to show how much work Lollapalooza gives to minority- or women-owned companies.

I love it when old school white nepotism runs into "diversity" goals. Their problem is that they didn't marry enough different ethnicities. Only if Daley had a black or hispanic nephew...

By the way, this Vanecko nephew isn't the same one involved in a homicide case where police files were "lost".

I can imagine the Daley family reunions are so much fun. In mine, we're just comparing kid videos...the Daleys must compare who got away with the most.

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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6Mar/110

Chicago News Update 6Mar2011

No, it's not all about pensions with me, all the time. Other stuff happens.

So, there have been elections in Chicago and Cook County recently. Some pols lost their positions. What do they do now that they're off the gravy train?

What do you mean off the gravy train?

Like thousands of Illinoisans who have lost their jobs, former Cook County Board President Todd Stroger has applied for unemployment benefits.

But newly minted Board President Toni Preckwinkle’s administration officially “protested” the claim with the state’s unemployment agency.

“. . . Former Board President Todd Stroger did submit an application for unemployment,” said a source in the Preckwinkle administration who is familiar with the application. “That application was protested because, as a former elected official, he is ineligible.”
....
It would be different if he were a regular county employee or worked in the private sector. If he could prove his case — that, say, the voters didn’t fire him for cause but that he lost his job through no fault of his own — he might qualify for unemployment, according to state law.

Homicide case involving Daley nephew closed without charges. Those Daleys have to be good Catholics - there's so many of them. And hey, closing a case just in time for the Lenten season. Maybe someone can atone for something. Just a thought.

Black woman took black votes for granted, white man didn't. White man won. I'm not sure if she had spent more time campaigning amongst black Chicagoans that she would have done better, though.

Flash mobs mean something different on the Magnificent Mile. Come on, at least they could've thrown in a musical number while creating a distraction.

One pension-related story: a particularly ignorant chief financial officer takes his seat. And yes, a Daley nephew is involved. Not many good choices for this guy -- either admit to total cluelessness or corruption. That's generally the choice in Illinois.

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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27Feb/110

Congrats on the new job, Mr. Mayor!

Hey Rahm, I hear tell you've got a new position and all sorts of bright, shiny things in store for you. What, one of your first appointees has had to resign because of ethics questions? Not even one week into your administration? Oh, buck up. Let's look at what else you're dealing with:

The former White House chief of staff, who won his mayoral bid handily Tuesday, takes charge of a city facing an immediate budget shortfall projected at from $500 million to $1 billion and with its long-term pension promises to city workers underfunded by as much as $15 billion — fiscal shortfalls Mr. Emanuel vowed during the campaign to address.

And while nobody expects a showdown with the unions as bitter as the one gripping neighboring Wisconsin, observers see coming painful negotiations with municipal unions similar to those other Democratic-leaning big cities and states have had to engage in recently.

How are you going to pay for this? Property tax hike? No? I don't think forensic audits are really going to do anything, either.

Surely, the state will be able to help. They've just issued a shitload of pension obligation bonds, sold with a spread of about 200 bps over Treasury bonds [i.e., the market thinks they need to be paid extra for this risk - comparable to some junk bonds]...oh wait:

Local school districts could get hit with a multimillion dollar bill under a pension cost-shifting plan being floated by a top state Democrat.

Senate President John Cullerton is proposing that school districts cover the costs of teacher pensions. Those costs -- estimated at about $700 million -- are now covered by the state.

That doesn't sound promising for Mayor Rahm.

Part of the issue is because Gov. Quinn went seeking federal guarantees to back those pension obligation bonds. Nothing doing. Seriously, fehgeddaboutit. But hey, if you like to live life on the edge... go for it! I think the ride down the Illinois debt death spiral should be fun. [vendors: have your bills been paid yet?]

And back to Rahm, I'm guessing that you're going to be doing more stuff like this. Because something's gotta give, and I think we've seen what direction the winds are blowing right now.

MORE: Unions guarded about Rahm win

AND: Maybe Rahm could spare a bit of his pocket change

REMINDER: A hole of 11K per Chicago resident. The numbers ain't pretty.

UPDATE: We've been contacted by the office of the Senate President about his proposal for teachers pensions. I quote from the statement:

Cullerton pointed out that this is already how the Chicago Public School system works. While that pension fund does receive a relatively small state subsidy, the local taxpayers and Chicago teachers cover the overwhelming majority of the pension costs. And Chicago taxpayers also support the downstate and suburban teacher pensions by paying state income and sales taxes.

Basically, Chicago has been on its own re: teachers pensions, more or less, already. So that's part of the debt problem that already exists, and this proposal wouldn't add to it.

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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24Jan/118

HA HA – Rahm is booted from ballot

I just couldn't wait to post this.

The Illinois Appellate Court has tossed mayoral frontrunner Rahm Emanuel off the ballot, reversing the decision of a lower court.

The Appellate Court reached a 2-1 decision to remove Emanuel.

Appellate judges Thomas Hoffman and Shelvin Louise Marie Hall ruled against Emanuel. Justice Bertina Lampkin voted in favor of keeping President Obama’s former chief of staff on the Feb. 22 ballot.

“It’s a surprise,” said Kevin Forde, the attorney who argued on Emanuel’s behalf.

Opponents have been trying to get Emanuel removed on the grounds that he did not reside in Chicago for a year before the upcoming February election. He moved to Washington, D.C., two years ago to work for President Barack Obama.

But Emanuel’s legal team has argued that he always intended to return to Chicago, noting that he maintained ownership of his Ravenswood home.

The Appellate Court concluded that Emanuel’s claims of intent to return were not enough.

Maybe he spoke too soon on the pensions thing, and that's what got him.

Coverage from the NYT.

I bet the leftie blogs are rubbing their hands in glee over this.

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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27Nov/107

Meep Answers Questions

Inspired by snaqwells post, I am going to answer questions from other places. And in an uncharactersitic way -- I will answer tersely.

Will North Carolina GOP choose a black leader?
I wouldn't be surprised.

Just who the hell do you think you people are?
Masters of the EUniverse, apparently.

If the individual mandate is unconstitutional, will the entire healthcare law be invalidated?
Definitely maybe.

Is China's Competitive Edge Already Eroding?
Maybe not. Maybe it is. It is pretty much going to, though.

Why is the world bailing out Ireland?
Hold up, bucko. It's not a done deal.

You son of a bitch. How could you do this?
Reality hits.

National Opt Out Day is sort of an act of terrorism, isn’t it?
No. Something like this is.

Election Law to Rahm: No Mayor’s Race for You?
He'd better hope so. REALLY hope so. Getting booted without having to lose an election or deal with Chicago's issues... win-win-win-win-win. [Also, a blast from the past.]

Should state take more risks on investments?
The answer is No.

Are The Social Security Trust Funds A Mirage?
Not exactly. They're a lie.

Will the next fiscal crisis start in Washington?
No. I predict Illinois.

Is the American Dream dying?
No.

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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14Oct/103

When the money runs out

I've been wondering.

Why the hell does anybody want to be mayor of Chicago after Daley?

Daley is sucking out as much money from Chicago as he can before he leaves. Indeed, I am of the mind that Daley knows that the money is going to run out not too far in the future, and the city is not going to get bailed out - not by bondholders, not by the Fed.

From the guys that brought us the news of a $1 trillion gap in public pension funding, we've got a new study showing when the money runs out for various municipal pensions (see their paper for the details on their projections). This is not looking at funding percentages - which, while scary, don't indicate when the cash runs dry.

Chicago is #2 on the list, with Rauh and Novy-Marx projecting the money to run out in 2019. (Philadelphia is #1, with money running out in 2015.... but compare the size of their unfunded liabilities - a =lot= more people are represented in the $45B shortfall of Chicago compared to the $9B shortfall of Philly). Take a look at the per capita share of that debt -- that is not supportable by Chicago's population.

There will be pensions that will not be paid. There will be muni bonds that will default.

And unlike other Ponzi schemes, where the early exiters win, the workers of Chicago can't win by retiring earlier. They need to keep getting payments til they die. Considering expected age at death is in the mid-80s now.... well, I recommend to these people to save up money. Or get used to living on the small amount Social Security gives (they are covered by SocSec, right? That's not true of all government workers).

So I think Rahm had better rethink about fighting the charges that he's not eligible to run. Because that would give him an easy out to avoid this disaster.

OH AND: Don't get too used to those retiree health benefits

I'VE BEEN TOLD: that the Chicago workers are SOL re: Social Security. Unless they had worked in a non-governmental job for long enough to be eligible. But their years of work for Chicago won't be covered. So perhaps that would be the "bailout" -- getting these guys on SocSec. But they're really not going to like that - 12.4% of their salaries out for very small benefit later.

Meep

Meep is a member of the Irish Catholic mafia, having a suspiciously high number of green-eyed, red-haired friends. While she doesn’t have red hair herself [except when she goes into the sun (rare for any vampire)], she does have green eyes. She’s a raving Papist and is a life actuary on the side [i.e., she counts dead people]. An amateur pain-in-the-ass [willing to go pro!], she likes covering retirement, mortality, math, and education issues.

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7Jun/102

Well what do you know about that…

Eat it, Suckahz!

Remember when Rahm was appointed Chief of Staff by Obama, and there was a little bit of murmering about how he lived rent free for 5 years an apartment owned by Representative Rosa DeLauro and her husband Stanley Greenberg?  I mean, there was no problem-none whatsoever; how could there be among the principle staff of the Bestest!, Smartest!, most Ethical administration!, EVAH!   Well, maybe a small one...

Greenberg's consulting firm was a prime architect of BP's recent rebranding drive as a green petroleum company, down to green signs and the slogan "Beyond Petroleum."

Greenberg's company is also closely tied to a sister Democratic outfit -- GCS, named for the last initials of Greenberg, James Carville, another Clinton advisor, and Bob Shrum, John Kerry's 2004 campaign manager.

According to published reports, GCS received hundreds of thousands of dollars in political polling contracts in recent years from the Democratic Congressional Campaign Committee.

Probably just a crazy coincidence. But you'll never guess who was the chairman of that Democratic Congressional Campaign Committee dispensing those huge polling contracts to his kindly rent-free landlord.

Now, at the very least this is a problem of, ahem, optics; not only for the polling contracts but in relation to the current environmental disaster in the Gulf of Mexico.  At least, you know, for those of us who don't understand the nuances of the Chicago way.  I'll leave it to the readers to decide whether there are any dots to connect.

Or is this just a case of faux-OUTRAGE! Akin to what would would be frothing from the usual suspects on the left were this picture to be of a group of Booooooooooooooosh! communication staffers?

Say No More...

Can you hear the Frat boy jokes?  Can you hear the shrieking about all the President's men being out of touch with reality?  Can you hear the chant,"Staffers Swill, while Oil still spills!" coming from giant paper-mache Obama heads?  Of course you can't, because it's not a RETHUG! administration.  Most of the press is totally down with this, just like they are with Rahm's perquisetes.

Still, for the smartest guys in any room, this crew seems pretty tone deaf sometimes, eh?  But, that's probably a racists statement.

(H/T Jeff G at Protein Wisdom)

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