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Thu Sep 13, 2012, 04:10 PM

 

Rahm sends millions in TIF money to the richest family in chicago (Pritzker) -- not to schools

Stunned but not surprised to see that Rahm is delivering millions from his TIF slush fund to his billionaire pal Penny Pritzker for her new Hyatt Hotel.

Pritzker sits on the mayor's hand-picked school board... Pritzker is also an anti-union hard-liner who's trying to bust the union at Hyatt. She's claiming that there's no money left in the budget for even small teacher raises. The union argues that TIF money can be used to help solve the crisis. But Rahm obviously has his own priorities. Pritzker obviously has a conflict of interests.

“This one example shows the fundamental corruption in the way things are done here,” said David Orlikoff of the Chicago Teachers Solidarity Campaign, a labor and community coalition growing out of Occupy Chicago’s labor committee and supporting the Chicago Teachers Union.

“Then they tell teachers they don’t have any money for anything, except the mayor’s pet projects. It’s a conflict of interest – and it will be a conflict until the school board is elected.


http://michaelklonsky.blogspot.com/2012/08/rahm-sends-millions-in-tif-money-penny.html

TIF = Tax Increment Financing. What ex-mayor Daley did, see, is declare that any tax hikes after such-&-such a date would go into his private TIF slush fund, the spending of which would not be democratically decided by elected reps, but by the mayor's office.

TIF money is huge. In the chart below, the dark blue is regular tax money, the light blue is TIF money.



That's how the city can fund important projects like putting in fancy executive bathrooms at the Chicago Mercantile Exchange while pleading poverty on public schools.

http://www.inthesetimes.com/working/entry/12645/golden_toilet_does_the_job_in_chicago/

Some TIF money does go to *building* or *renovating* schools (private contractors), but:

Though selective enrollment schools account for 1% of all CPS schools, they received 24% of all TIF funds spent on school construction projects," or $209 million dollars. By comparison, open-enrollment neighborhood schools, making up 69 percent of CPS schools, received $415 million, or 48 percent. Farmer explains:

The city’s nine selective enrollment schools were created by Mayor Richard Daley to help retain (upper) middle-class families who he believed would leave CPS and the city in pursuit of what they perceive as better schools in the suburbs....


http://www.chicagomag.com/Chicago-Magazine/The-312/June-2012/TIF-Money-For-Chicago-Public-Schools-Like-TIFs-in-Miniature/

Selective enrollment has a distinctly white cast. General enrollment = 87% poor, distinctly brown.

Rahm recently turned over $29 million in TIF funds to a consortium of developers to build an office complex:

In essence, the city's taking your tax dollars away from schools, parks, and essential services and turning them over to one of the world's largest real estate companies so they can steal, I mean, lure tenants from other downtown office buildings.

http://www.chicagoreader.com/chicago/mayor-emanuel-tif-charter-nato/Content?oid=6476465

At the same time, he proposed to divert even more tax $$ from public schools into charter schools:

As Mayor Emanuel was talking up the River Point deal, his General Assembly minions were helping continue the privatization of the Chicago Public Schools by proposing to divert tens of millions of public dollars to charter school operators—many of whom rank among the mayor's closest allies, including Juan Rangel of the United Neighborhood Organization and Bruce Rauner of Noble Street. Hey, it's all part of the reform agenda at City Hall.

http://www.chicagoreader.com/chicago/mayor-emanuel-tif-charter-nato/Content?oid=6476465

Not to mention laying off police, fire and library employees while adding to his own staff & giving raises to his minions:

Last week brought the revelation...that Mayor Emanuel's been systematically pruning the city workforce. Well, not the whole workforce. In his office, Emanuel employs 86, up from the 81 Mayor Daley had on the payroll. Emanuel's also paying his mayoral office employees more than Daley did—an average of $88,000, up from $85,000.

Meanwhile, the number of police officers on the payroll is down to 10,600 from 11,200. The fire department's down to 5,000 from 5,100. The library's down to 850 from 1,070. And as the mayor continues to cut the things you need, there's more tax dollars to waste on the things he wants.


http://www.chicagoreader.com/chicago/mayor-emanuel-tif-charter-nato/Content?oid=6476465

39 replies, 6149 views

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Reply Rahm sends millions in TIF money to the richest family in chicago (Pritzker) -- not to schools (Original post)
HiPointDem Sep 2012 OP
polichick Sep 2012 #1
backscatter712 Sep 2012 #8
polichick Sep 2012 #9
porphyrian Sep 2012 #2
rhett o rick Sep 2012 #5
porphyrian Sep 2012 #7
rhett o rick Sep 2012 #10
porphyrian Sep 2012 #11
msanthrope Sep 2012 #16
porphyrian Sep 2012 #22
rhett o rick Sep 2012 #27
porphyrian Sep 2012 #29
Blue_Tires Sep 2012 #13
porphyrian Sep 2012 #23
Hell Hath No Fury Sep 2012 #3
sabrina 1 Sep 2012 #4
rhett o rick Sep 2012 #26
backscatter712 Sep 2012 #6
Blue Owl Sep 2012 #12
HiPointDem Sep 2012 #17
msanthrope Sep 2012 #14
Teamster Jeff Sep 2012 #15
msanthrope Sep 2012 #18
Egalitarian Thug Sep 2012 #19
SoapBox Sep 2012 #20
Marrah_G Sep 2012 #21
marsis Sep 2012 #24
ladjf Sep 2012 #25
HiPointDem Sep 2012 #28
rhett o rick Sep 2012 #30
ladjf Sep 2012 #31
rhett o rick Sep 2012 #32
ladjf Sep 2012 #33
NCTraveler Sep 2012 #34
ladjf Sep 2012 #35
Luminous Animal Sep 2012 #36
NCTraveler Sep 2012 #38
fascisthunter Sep 2012 #37
woo me with science Sep 2012 #39

Response to HiPointDem (Original post)

Thu Sep 13, 2012, 04:14 PM

1. The one dark spot in our convention was this guy. k&r

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Response to polichick (Reply #1)

Thu Sep 13, 2012, 04:35 PM

8. Rahmney should not be welcome in the Democratic Party. Time to throw out the DINOs! n/t

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Response to backscatter712 (Reply #8)

Thu Sep 13, 2012, 04:41 PM

9. Absolutely - and this is what really bugs me about the President...

He is in the position to bring talented and wise people into power through his administration and too often he chooses corporate tools instead of public servants.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 04:17 PM

2. Well, when's the next mayoral election in Chicago?

 

This may not be a battle that can be won entirely until then.

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Response to porphyrian (Reply #2)

Thu Sep 13, 2012, 04:29 PM

5. Wont do any good unless Rahmbo has a progressive challenger. nm

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Response to rhett o rick (Reply #5)

Thu Sep 13, 2012, 04:32 PM

7. Lots of people in Chicago. n/t

 

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Response to porphyrian (Reply #7)

Thu Sep 13, 2012, 04:49 PM

10. Lot's of people wont do any good unless you can find a popular one that is progressive and has the

financial backing to unseat corp-backed Rahmbo.

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Response to rhett o rick (Reply #10)

Thu Sep 13, 2012, 04:53 PM

11. I don't live in Chicago now, but I'm sure there are people who meet your criteria. n/t

 

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Response to porphyrian (Reply #11)

Thu Sep 13, 2012, 06:25 PM

16. You reminded me of one of the funniest threads on DU, ever, and now I wish I could find it....

Last Chicago mayoral election, some DUers claimed that Danny Davis was the progressive choice.

And other DUers posted the picture of Danny holding the crown at the Rev. Moon coronation ceremony at the Capitol.

http://www.thedailyshow.com/watch/wed-june-30-2004/moon-units

Good times, good times...

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Response to msanthrope (Reply #16)

Thu Sep 13, 2012, 06:45 PM

22. Heh, heh. n/t

 

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Response to porphyrian (Reply #11)

Thu Sep 13, 2012, 10:45 PM

27. Yes I am sure also. But IMHO the reason we keep ending up in this "lesser of evils" shit is that

we dont have enough progressive candidates.

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Response to rhett o rick (Reply #27)

Fri Sep 14, 2012, 09:17 AM

29. Sounds like a call to progressives.

 

Hey, Chicago progressives, get off your asses and run. The people want better choices.

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Response to porphyrian (Reply #2)

Thu Sep 13, 2012, 05:59 PM

13. Good question

Funny how all the Rahm lovers on this site are long gone...They were so happy when he won the mayoral race...

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Response to Blue_Tires (Reply #13)

Thu Sep 13, 2012, 06:47 PM

23. I don't hate everything he does, just the centrist/corporatist shit.

 

But, then, I don't live in Chicago now.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 04:18 PM

3. K&R

Important info -- good job.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 04:25 PM

4. They've been lying about there being no money for the schools. Even here on DU

we've had anti-Union posters claiming the teachers are being greedy to ask for money for the schools 'when there is none'.

Rahm taking care of his rich Corporate Friends with public funds? He's a Third Wayer.. That's what they do. Transfer Public Funds into Private Corps.

This is an excellent article and should be on the MSM who are doing a very bad job, probably on purpose, of explaining why this strike is happening. It's as much about stopping the flow of Public Funds to Major Corps, many of them from outside Chicago, even outside the Country sometimes, as it is about negotiating for salaries and benefits.

Iow, it's a line in the sand against Right Wing Policies and/or their identical twin now part of the Democratic Party, Third Way Policies, which are good for Corporations and bad for American workers.

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Response to sabrina 1 (Reply #4)

Thu Sep 13, 2012, 10:42 PM

26. I notice that none of the "Neighborhood Watch" dares post in these Rahmbo vs. teacher's union

threads.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 04:31 PM

6. What? The scabs aren't here to wag their fingers at us about how teachers need to sacrifice?

I thought there was no money that could be made available for the schools. Isn't that one of the main points of argumentation that the anti-union folks are using?

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 05:54 PM

12. Boooooooooooo... Hisssssssssss...

Rahmney Emanuel (R)

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Response to Blue Owl (Reply #12)

Thu Sep 13, 2012, 06:28 PM

17. good name, as the romney plan for education is little different from the rahmney plan.

 

http://www.chicagoreader.com/chicago/romneys-plan-for-schools-sounds-like-rahms/Content?oid=6860548

The Rahmney plan for schools
Mitt's approach to education sounds a lot like Mayor Emanuel's


You can read it yourself, if you're up for the challenge. It's called "A Chance for Every Child" and it's only 30-some pages long...Here's the big takeaway for Chicagoans: in many respects, it reads like it could have been written by our very own union-busting, charter-school-loving Mayor Rahm Emanuel.

Yes, that's right—Republican Romney and Democrat Rahm are like two peas in a pod when it comes to public education. It's a little ironic given that Romney blames President Obama—Emanuel's former boss at the White House—for everything that's wrong with education today.

Along with teachers' unions, of course.

Let's take it one at a step at a time, starting with the charters, which Romney loves almost as much as the family dog—though I doubt he'd strap a charter school to the roof of the car, even if he could.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 06:09 PM

14. Do you have any numbers for Rahm? Because your chart is before he was elected, and the 29mil

you claim was his was authorized under Daley, according to your own link.

It looks like Rahm agrees with you, though, which is why he authorized a reform commission of TIF--

Concerns about waste and abuse in Chicago's TIF program came under increased scrutiny during last year's mayoral campaign. Once in office, Mayor Emanuel vowed to reform Chicago's TIF process and created a panel of experts to review the city's policies and historical use of this program. In August, the panel proposed meaningful reforms that would move the city in the right direction, and at the time, the mayor called for their immediate implementation.

The panel's recommendations include integrating TIF into the overall city budget, which would place TIF spending under more democratic control, without the power over TIF spending being concentrated in the mayor's office. They include measuring the performance of TIF districts and projects and propose measures to hold developers accountable for delivering on their goals. And, overall, these proposals will make it easier for the public to know where our money is being spent and if it is being spent appropriately.

Coincidentally, after the mayor's press conference Monday calling for partial TIF reform, it was announced that three companies would be returning a total of $34 million to the City of Chicago. Two of these companies are refunding TIF money because they did not deliver on their goals to create jobs. It's a good step, but without a law on the books, there's no money back guarantee for taxpayers that would discourage money from being wasted in the first place. Promises from politicians and pledges from companies to return the money aren't enough to protect taxpayers.

http://www.beachwoodreporter.com/politics/will_rahms_tif_reform_go_far_e.php


I agree that TIF reform has a long way to go---but why didn't you note that it was on the table?

January 30, 2012

Mayor Emanuel Announces Reforms That Strengthen Accountability and Transparency of TIF Program

Visits Nursing Program That Will Use TIF Resources to Bring 77 Jobs to Chicago and Create Opportunities for 250 New Students



Mayor's Press Office 312.744.3334
Download this Press Release

Mayor Emanuel announced a series of TIF reforms today, implemented based on recommendations from the TIF reform task force convened by the Mayor immediately upon taking office.

“These critical reforms will strengthen the transparency and accountability involved in TIF projects, and will help the city focus the program on job creation and economic development,” said Mayor Emanuel.

To promote increased transparency, the City will create a comprehensive online TIF database, which will track all projects in one place and provide public access to performance data and dashboard. For the first time, City staff that manages the TIF program will be able to use this comprehensive data in evaluating and managing TIF projects, and the public will have a better picture of how taxpayer dollars are being spent. Additionally, every proposed private development TIF project will have an assessment report that will be posted online before City Council consideration and will outline the project’s ability to create jobs and provide return on investment for the city.

To enhance accountability, monitoring of TIF performance will be moved to the Department of Revenue, which will hire independent auditors to perform random audits. Additionally, the internal TIF task force, which considers all proposed TIF deals, will be broadened to include the Comptroller, Chief Operating Officer, Chief Financial Officer, and infrastructure leads. The restructured TIF Task Force will be charged with ensuring the value of proposed TIF deals for the City at the beginning of the negotiating process.

“I've been sounding the alarm on TIFs for a decade now, and so it's encouraging to see the City's willingness to make transparent what has been a murky system for too long,” said U.S. Representative Mike Quigley. “There is no simple solution to the problems facing TIF programs, but the most important first step is to improve transparency and accountability, which allows for further analysis and action. Chicago taxpayers deserve to get what they pay for, and I applaud Mayor Emanuel and his team for their commitment to this reform.”

Mayor Emanuel announced these reforms at St. Elizabeth Hospital in Wicker Park, the site of Resurrection University’s new nursing center. Resurrection University will relocate from Oak Park to Chicago, bringing 77 jobs and more than 500 students in the burgeoning field of nursing, as a result of TIF assistance it will receive.

“I am laser-focused on creating jobs for Chicagoans, especially in crucial fields such as nursing,” said Mayor Emanuel. “This deal brings 77 jobs to Chicago, and allows hundreds of additional Chicagoans each year to get essential training for great jobs in this important industry. This is a banner day for the City of Chicago as we continue to build the employment environment that we are seeking.”

The relocation will be made possible by TIF assistance, in the amount of approximately $4.7 million. Financing for the project was secured in October of 2011; the entire project cost is over $13 million.

“Moving Resurrection University to the City of Chicago would not have been possible without the support of Mayor Rahm Emanuel and Alderman Joe Moreno,” said Sandra Bruce, President and CEO, Resurrection Health Care and Provena Health. “We are excited about the new educational opportunities Resurrection University will bring to the City of Chicago. This move will allow us to train a new generation in healthcare careers from a community that has long been underrepresented. It is critical that our healthcare professionals represent the culture and character of those whom we serve.”

The University has a current enrollment of 275 students, with 50 employees. More than half of the current students are Chicagoans. The University plans to nearly double enrollment to 500 students, and to subsequently increase staffing by 27 employees. The University’s current lease at the Oak Park facility expires in July 2012, and space there is not adequate to accommodate its expansion plans. It intends to move to a new location before the July 2012 lease expiration.

The project involves the renovation of approximately 38,900 square feet of vacant space on five floors of the eleven-story St. Elizabeth Hospital building at 1431 North Claremont Avenue in the West Town community area. The renovation will provide classrooms, a student lounge, cafeteria, conference rooms, offices and an operating room simulator. In addition, an existing parking structure and surface parking lot will be renovated to provide forty-one additional parking spaces. The parking lot renovation will include additional landscaping, lighting, and underground stormwater detention. The property is located in the Humboldt Park Commercial TIF District.

The TIF reforms are effective immediately, and will be implemented over the course of 2012.


http://www.cityofchicago.org/city/en/depts/mayor/press_room/press_releases/2012/january/mayor_emanuel_announcesreformsthatstrengthenaccountabilityandtra.html


TO THE JURY---it's a press release, for public dissemination. No copyright issues.

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Response to msanthrope (Reply #14)

Thu Sep 13, 2012, 06:25 PM

15. Chicago ain't ready for TIF reform

http://www.chicagoreader.com/Bleader/archives/2011/08/30/chicago-aint-ready-for-tif-reform



Here's everything you need to know about Mayor Emanuel's self-heralded TIF reform: there is none!

Big surprise, huh?

Yes, yes—the mayor made good on his campaign promise to set up a task force to study the $500 million-a-year Tax Increment Financing slush fund.

And, yes, the task force prepared a report with pages and pages of information.

And, yes, the mayor released the report yesterday at a well-choreographed press conference that won him lots of coverage—you have to admit the guy's got a knack for public relations.

But the changes he's enacting are mostly limited to providing more information about the program—after the money's been spent. It won't rectify the central flaws in this boondoggle in any real way.

There are three basic problems with how city officials run the TIF program. One is that they take money intended to spur development in poor neighborhoods and spend most of it in rich neighborhoods.

Two, they jack up property taxes.

And three, they divert those taxes from the schools, parks, and other taxing bodies that really need it—especially the schools.

The mayor's TIF reforms would change none of these things.

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Response to Teamster Jeff (Reply #15)

Thu Sep 13, 2012, 06:32 PM

18. Oh, I agree that what he's done so far isn't enough. It's a start, only. And I hope he

implements more far-reaching reforms.

I think the article you posted is a reminder that true reform of TIF will take more. And I hope that a year from now, there will have been substantial reform.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 06:41 PM

19. Former. Investment, Banker.

 

Stole $14,000,000 primarily from pensioners. He got rich sending thousands into poverty after a lifetime of work. What is so hard for some people to understand about this?
K&R

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 06:43 PM

20. I do not like this guy...

I've not liked him much at all...seems skeezy.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 06:45 PM

21. The man is a scumbag

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 07:32 PM

24. I come from labor

 

, construction trades. I posted several years ago on this website about my service with the Chicago Democrats. No one hates labor quite like this group from the windy city. They used to love the monies they reaped from labor but I believe they get more from elsewhere these days so we mean less and less to them.

I didn't vote for Obama in the primary because of my disdain/loathing of Chicago Democrats. In the general election you have to go with the least objectionable candidate but again I couldn't vote for Obama because of his strong connections with this pack of wolves, I voted for a third party candidate and may not vote for Obama again. But it is and will be a a cheap throwaway vote, Illinois will go all in for Obama and my vote will not matter in any way.

These people are impossible to deal with, they will hire a gang of lawyers to get around contracts, deny their own obligations and dare you to sue them. Just please look at the overall condition of Illinois, just about in the bottom three of all things good. They're much worse than 70's and 80's Republicans, maybe that just shows how far to the right this country has turned.

My report of course fell on deaf ears with some little flak coming my way. So I guess ya get what ya deserve. So one last revisit: Chicago Democrats hate labor but then there's always HOPE, Ive lost mine.

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Response to HiPointDem (Original post)

Thu Sep 13, 2012, 08:00 PM

25. Chicago made a big mistake when they elected Emanuel. nt

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Response to ladjf (Reply #25)

Fri Sep 14, 2012, 03:15 AM

28. +1

 

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Response to ladjf (Reply #25)

Fri Sep 14, 2012, 01:18 PM

30. What choice did they have? nm

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Response to rhett o rick (Reply #30)

Fri Sep 14, 2012, 02:39 PM

31. I can't answer that question. nt

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Response to ladjf (Reply #31)

Fri Sep 14, 2012, 02:55 PM

32. Unless we progressives can get our shit together and run progressive

candidates, we will be stuck with the best of evils. I cant imagine the Democratic machine of Chicago allowing a progressive to run against Rahm. Rahm would get the endorsement of the big money and the Democratic machine.

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Response to rhett o rick (Reply #32)

Fri Sep 14, 2012, 04:13 PM

33. I see and understand your problem. That's a terrible political situation. nt

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Response to HiPointDem (Original post)

Fri Sep 14, 2012, 04:21 PM

34. I have it on good authority that he is a Democrat. nt

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Response to NCTraveler (Reply #34)

Fri Sep 14, 2012, 09:52 PM

35. I know that he is. However, to me, he seems to be thinking like a Republican.

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Response to NCTraveler (Reply #34)

Fri Sep 14, 2012, 10:14 PM

36. And?

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Response to Luminous Animal (Reply #36)

Sat Sep 15, 2012, 09:10 AM

38. I thought hard and long.....

and that was really the best thing I could say about him. So the only "and" would be a long drawn out cursing tirade.

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Response to HiPointDem (Original post)

Fri Sep 14, 2012, 10:15 PM

37. maybe the centrist trolls can tell us why this is good

hi sid?

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Response to HiPointDem (Original post)

Sat Sep 15, 2012, 10:04 AM

39. K&R

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