TW: Stunningly Mayor Daley is raiding the parking meter fund to shore up the FY2010 budget. Who could have guessed this would happen? Ummm...anyone with half a brain.
http://treylaura.blogspot.com/2009/02/no-surprise-chicago-pissed-away-300-mm.htmlFrom
Am glad Daley does not want to raise taxes or more likely "fees and such" but what really needs to be done is some serious warfare on the public service unions. Neither seniors nor public service union members (nor Wall Streeters!! they are the next target on the blog btw) need COLAs amidst deflationary times.
Chi Tribune article on the latest budget below:
http://newsblogs.chicagotribune.com/clout_st/2009/10/mayor-richard-daley-to-unveil-budget-this-morning.html
Showing posts with label Chicago TW. Show all posts
Showing posts with label Chicago TW. Show all posts
Wednesday, October 21, 2009
Saturday, October 3, 2009
Why Chicago, USA Lost the Olympics
"Chicago Loses the Olympics
And good riddance. South America deserves one of these things. Go Rio!"
--- Ezra Klein progressive blogger at WaPo
TW: The above quote sums up the attitude of many Americans. In many ways it sums up my own views. It certainly sums up the attitude of many of my non-Chicago friends. The Olympics are a pain (several wags already claim losing while embarrassing in short-term for Obama is in the long-run good as he avoids association with the potential cost overruns, corruption and hassles associated with modern day Olympics) and/or we are just blase about the idea of another Olympics in the U.S.
Then add to these folks, the nattering nabobs of negativity of some jackals on the right who cheered the loss due to parochial political jealousies and ill will (cheering blindly for the U.S. certainly has certain limits for those folks- torture/jingoistic wars yes, association with Obama's home city not so much).
One ends up with a nation exhibiting the symptoms of a fatigue and cynicism. We have become grumpy old farts, more concerned about our personal comfort and parochial concerns than growing our national persona- if the Olympics come here great, if not so be it. Very European actually. We are the aging adult to the eager late teen/young adult of the emerging markets.
Do you think the Brazilians '16, Chinese '08, Australians '00 or South Koreans '88 had the same hesitations?
When the day comes that the U.S. cannot get excited about Olympics, one should ask whether we need to re-gain some energy and enthusiasm. Chicago is embarrassed and frustrated by the first round knock-out, but everyone realized defeating Rio was going to be challenging. Given the voting evolution, I think a final round vote would have been a decisive Rio victory even had Chicago made it that far.
The U.S. has lived off its economic, military and cultural momentum for many years. But as I point out often, the competition is getting tougher. I see the Olympics as a metaphor for U.S. competitiveness generally. Two of the top U.S. cities have crashed and burned in the last two selections. The last time we had the summer Olympics in the U.S. it was a mediocre production. Others are raising their game, perhaps we need to as well.
And good riddance. South America deserves one of these things. Go Rio!"
--- Ezra Klein progressive blogger at WaPo
TW: The above quote sums up the attitude of many Americans. In many ways it sums up my own views. It certainly sums up the attitude of many of my non-Chicago friends. The Olympics are a pain (several wags already claim losing while embarrassing in short-term for Obama is in the long-run good as he avoids association with the potential cost overruns, corruption and hassles associated with modern day Olympics) and/or we are just blase about the idea of another Olympics in the U.S.
Then add to these folks, the nattering nabobs of negativity of some jackals on the right who cheered the loss due to parochial political jealousies and ill will (cheering blindly for the U.S. certainly has certain limits for those folks- torture/jingoistic wars yes, association with Obama's home city not so much).
One ends up with a nation exhibiting the symptoms of a fatigue and cynicism. We have become grumpy old farts, more concerned about our personal comfort and parochial concerns than growing our national persona- if the Olympics come here great, if not so be it. Very European actually. We are the aging adult to the eager late teen/young adult of the emerging markets.
Do you think the Brazilians '16, Chinese '08, Australians '00 or South Koreans '88 had the same hesitations?
When the day comes that the U.S. cannot get excited about Olympics, one should ask whether we need to re-gain some energy and enthusiasm. Chicago is embarrassed and frustrated by the first round knock-out, but everyone realized defeating Rio was going to be challenging. Given the voting evolution, I think a final round vote would have been a decisive Rio victory even had Chicago made it that far.
The U.S. has lived off its economic, military and cultural momentum for many years. But as I point out often, the competition is getting tougher. I see the Olympics as a metaphor for U.S. competitiveness generally. Two of the top U.S. cities have crashed and burned in the last two selections. The last time we had the summer Olympics in the U.S. it was a mediocre production. Others are raising their game, perhaps we need to as well.
Friday, October 2, 2009
Bummed Out In Chi!
TW: As the final selection neared, we became more excited about Chicago potentially getting the Olympics. Did not happen. For my edification I watched Fox News for its reaction. They naturally had a conservative talking head on to bash Obama. To Fox's credit their anchors tried to keep things somewhat rational but to Drudge et al.-"WORLD REJECTS OBAMA: CHICAGO OUT IN FIRST ROUND, THE EGO HAS LANDED" Kiss my ass. TW: update- like that someone has found the silver lining already...
From Mike Schearer at Time:
"It is possible that the defeat of Chicago at the International Olympic Committee, a stunning, first-round defeat, will be good for the president over the long haul. His loyalties to his hometown are unquestioned, but the prospect of Olympic building scandals, of friends and fundraisers benefiting form the Olympic spending, and the virtually inevitable over-budget controversies would not have served Obama well..."
Wednesday, June 3, 2009
The Chicago Parking Meter Clusterfug (cont.)
TW: More on my favorite pet peeve, the Daley parking meter deal that is a metaphor for poor American fiscal management. Now Chicago's own inspector general (Daley created the IG position in response to past criticism of city governance) is stating the obvious- the deal was stupid. Note how the Daley rep in countering the IG avoids the fundamental point, i.e. the deal traded millions in the future for short-term cash, and credits the deal with shoring up Chicago's current budget shortfall. But that is the point Chicago traded a huge asset in order to avoid a couple of year's budget shortfalls.
The only good thing coming out of this is that perhaps the City Council is going to alter its approval process for such deals in the future.
From Chicago Tribune:
"City Hall's inspector general blasted Mayor Richard Daley's parking meter lease Tuesday, alleging the administration gave up the potential for hundreds of millions in additional cash when aldermen rapidly rubber-stamped the deal...The report takes the City Council to task for ratifying the deal by a 40-5 vote in December, just a day after Daley aides briefed aldermen on it."There was no meaningful public review of the decision," Hoffman wrote.
The city got about $1.15 billion upfront for jacking rates and turning over control of its paid street parking system to a private company that gets to keep all the meter money for 75 years. Hoffman's report calls the lease a "dubious financial deal," arguing the city could have raked in at least $2.13 billion if only it had kept the meters after raising rates -- minus the cost of collecting the money and maintaining the meters.Top Daley aide Paul Volpe immediately fired back...Volpe said the parking meter money has helped the city avoid service cuts and steep tax hikes. The money from the parking meter deal in this year's budget is equal to the cost of retaining 2,000 police officers, or half the budget of the Streets and Sanitation Department, Volpe said...Now some council members say they made a mistake in voting for the deal and want the city to back out.
...Rates immediately quadrupled at most meters around the city, with the cost to park at some downtown spots to rise to $6.50 an hour within four years.Aldermen weary of public criticism are expected to approve a measure Wednesday that would give them at least 15 days to review future privatization deals.
...Daley appointed Hoffman in 2005 to head an office that is supposed to root out wrongdoing in city government. Hoffman has expanded the role to include issuing public reports on city government's performance. In one report last year, investigators spied on city garbage crews, alleging that truck drivers and laborers loafed for about two hours of every eight-hour shift."
The only good thing coming out of this is that perhaps the City Council is going to alter its approval process for such deals in the future.
From Chicago Tribune:
"City Hall's inspector general blasted Mayor Richard Daley's parking meter lease Tuesday, alleging the administration gave up the potential for hundreds of millions in additional cash when aldermen rapidly rubber-stamped the deal...The report takes the City Council to task for ratifying the deal by a 40-5 vote in December, just a day after Daley aides briefed aldermen on it."There was no meaningful public review of the decision," Hoffman wrote.
The city got about $1.15 billion upfront for jacking rates and turning over control of its paid street parking system to a private company that gets to keep all the meter money for 75 years. Hoffman's report calls the lease a "dubious financial deal," arguing the city could have raked in at least $2.13 billion if only it had kept the meters after raising rates -- minus the cost of collecting the money and maintaining the meters.Top Daley aide Paul Volpe immediately fired back...Volpe said the parking meter money has helped the city avoid service cuts and steep tax hikes. The money from the parking meter deal in this year's budget is equal to the cost of retaining 2,000 police officers, or half the budget of the Streets and Sanitation Department, Volpe said...Now some council members say they made a mistake in voting for the deal and want the city to back out.
...Rates immediately quadrupled at most meters around the city, with the cost to park at some downtown spots to rise to $6.50 an hour within four years.Aldermen weary of public criticism are expected to approve a measure Wednesday that would give them at least 15 days to review future privatization deals.
...Daley appointed Hoffman in 2005 to head an office that is supposed to root out wrongdoing in city government. Hoffman has expanded the role to include issuing public reports on city government's performance. In one report last year, investigators spied on city garbage crews, alleging that truck drivers and laborers loafed for about two hours of every eight-hour shift."
Tuesday, April 28, 2009
Plus ça Change, Plus C’est la Même Chose. (cont.)
(click on to enlarge- this is hi-res large photo from Shorpy)TW: This one is for our Chicagoland readers. The photo is vintage 1943 Bensenville, it was a dump then and well it has not evolved much (it is near O'Hare for those of you not familiar with the area).
Saturday, April 25, 2009
Reclaiming History
TW: I always find these stories about pulling things out of the seas or in this case a deep lake interesting. Above is a WWII era navy dive bomber retrieved last week from waters about 25 miles off the Chicago shore. Aspiring naval aviators trained from bases along the Chicago area shoreline, apparently up to 100 of them left but did not make it back to the bases during the war. Many of the planes remain entombed in Lake Michigan. Think about it though, 100 planes lost just in training from our one area is quite a few, thank goodness for modern simulators. The plane was retrieved btw on behalf of a naval aviation museum.http://www.chicagobreakingnews.com/2009/04/world-war-ii-dive-bomber-recovered-from-lake.html
Friday, March 27, 2009
Subsidizing Corporate America
TW: The Republicans moan subsidies/bailouts for auto jobs etc. but rarely about welfare for corporations. Here is a nice tidy example locally (here in Chicago) of our government spending a fortune to attract about 300 jobs to a prime part of our downtown. The cost per job ends up at almost $100K. And our benevolent dictator (ahem Mayor) Daley used funds meant to subsidize development in sub-prime areas of the city, funny how these things work.
Am not saying these things are not necessary but merely that subsidies come in many forms.
From Chicago Reader:
“ [MillerCoors] flirted with Dallas but settled on Chicago because it’s “a true international city” with “an attractive talent pool,” “unique business resources,” “good schools,” and “easy commutes.” (I guess no one with MillerCoors, or for that matter the Department of Community Development, has ever had to depend on the CTA.)
And, almost as an afterthought, the report mentions that “during the selection process, both the City of Chicago and the State of Illinois offered economic incentives” to offset MillerCoors’s “considerable relocation costs.”
I’ll say. Our old friend Governor Rod Blagojevich, about six months before he was hauled out of his house in handcuffs, forked over some $18 million in state tax breaks and subsidies, and Mayor Daley agreed to chip in a little more, which we now know to be $6 million. By contrast, there’s no record of Dallas offering anything on top of its already-lower property taxes. (Neither Dallas city officials nor MillerCoors responded to calls for comment.)
Once they settled on Chicago, MillerCoors execs narrowed their real estate choices to three possibilities: 250 S. Wacker, 33 S. State (the old Carson Pirie Scott building), and 350 N. Orleans (also home to the Sun-Times). In terms of warding off blight—the nominal purpose of TIF subsidies—pushing State Street would have made the most sense, as the eastern part of the Loop has a far higher vacancy rate than the west. But the city left the decision up to MillerCoors. As a result, our tax dollars are going to give the better-off part of the Loop a leg up over its poorer cousin.
But this problem goes back to the founding of the LaSalle Central TIF, where—thanks to gaping loopholes in TIF law—the city managed to stretch the definition of blight to cover one of the hottest real estate markets in town. By 2030, when this district mercifully expires, the city expects it will have siphoned off at least $1.5 billion in property taxes from the schools, parks, police, fire, and other needy public services. City planners have said they will use the cash to, among other things, renovate the old architectural landmarks on LaSalle that are becoming out of date.
Well, 250 S. Wacker is hardly an architectural jewel. Constructed in 1957, it’s a steel and glass box that looks like it was squished to make it fit in its corner space. As even the plan overview dryly notes, “This building has not been identified as historically significant.”
In 2005 the joint venture of Carnegie Realty and D2 Realty LLC bought it for about $16.8 million with plans to renovate it and covert it into offices and condominiums. “We are extremely happy with the property which is situated in an ‘A’ location for our prospective buyers,” John Thomas, CEO of Carnegie, said in a press statement at the time. “We anticipate our buyers will be wholly owned or multi-generational businesses that foresee their real estate needs and investments for the long term.”
By then Thomas had already been convicted of business fraud, and as part of his deal with the feds he became a government mole, according to a 2007 Tribune article by David Jackson. So maybe the building does have some historical significance after all.
At any rate, after renovating the building, Carnegie and D2 sold it in 2007 for about $57 million to AEW Capital Management, an investment firm out of Boston. But by last summer, the downtown office boom was dying, and AEW was desperately seeking new tenants, as the vacancy rate at 250 S. Wacker was about 82.5 percent. When MillerCoors moves in, 100 percent of the building will be occupied.
...According to the overview, the “project will expand the tax base because the investment in the property will result in an increase in its assessed value.” Well, let’s hope so. At the very least, maybe AEW will drop its ongoing appeal to get the Cook County Board of Review to lower its assessment. (The firm currently pays about $422,000 a year in taxes on the building.) But even if the tax base does expand, until 2030 none of those new tax dollars will go to schools, parks, or other taxing bodies; they’ll flow into the LaSalle Central TIF fund, so Mayor Daley can hand them over to the next conglomerate that comes knocking on the city’s door..."
http://www.chicagoreader.com/features/stories/theworks/090326/index.php?cAction=
Am not saying these things are not necessary but merely that subsidies come in many forms.
From Chicago Reader:
“ [MillerCoors] flirted with Dallas but settled on Chicago because it’s “a true international city” with “an attractive talent pool,” “unique business resources,” “good schools,” and “easy commutes.” (I guess no one with MillerCoors, or for that matter the Department of Community Development, has ever had to depend on the CTA.)
And, almost as an afterthought, the report mentions that “during the selection process, both the City of Chicago and the State of Illinois offered economic incentives” to offset MillerCoors’s “considerable relocation costs.”
I’ll say. Our old friend Governor Rod Blagojevich, about six months before he was hauled out of his house in handcuffs, forked over some $18 million in state tax breaks and subsidies, and Mayor Daley agreed to chip in a little more, which we now know to be $6 million. By contrast, there’s no record of Dallas offering anything on top of its already-lower property taxes. (Neither Dallas city officials nor MillerCoors responded to calls for comment.)
Once they settled on Chicago, MillerCoors execs narrowed their real estate choices to three possibilities: 250 S. Wacker, 33 S. State (the old Carson Pirie Scott building), and 350 N. Orleans (also home to the Sun-Times). In terms of warding off blight—the nominal purpose of TIF subsidies—pushing State Street would have made the most sense, as the eastern part of the Loop has a far higher vacancy rate than the west. But the city left the decision up to MillerCoors. As a result, our tax dollars are going to give the better-off part of the Loop a leg up over its poorer cousin.
But this problem goes back to the founding of the LaSalle Central TIF, where—thanks to gaping loopholes in TIF law—the city managed to stretch the definition of blight to cover one of the hottest real estate markets in town. By 2030, when this district mercifully expires, the city expects it will have siphoned off at least $1.5 billion in property taxes from the schools, parks, police, fire, and other needy public services. City planners have said they will use the cash to, among other things, renovate the old architectural landmarks on LaSalle that are becoming out of date.
Well, 250 S. Wacker is hardly an architectural jewel. Constructed in 1957, it’s a steel and glass box that looks like it was squished to make it fit in its corner space. As even the plan overview dryly notes, “This building has not been identified as historically significant.”
In 2005 the joint venture of Carnegie Realty and D2 Realty LLC bought it for about $16.8 million with plans to renovate it and covert it into offices and condominiums. “We are extremely happy with the property which is situated in an ‘A’ location for our prospective buyers,” John Thomas, CEO of Carnegie, said in a press statement at the time. “We anticipate our buyers will be wholly owned or multi-generational businesses that foresee their real estate needs and investments for the long term.”
By then Thomas had already been convicted of business fraud, and as part of his deal with the feds he became a government mole, according to a 2007 Tribune article by David Jackson. So maybe the building does have some historical significance after all.
At any rate, after renovating the building, Carnegie and D2 sold it in 2007 for about $57 million to AEW Capital Management, an investment firm out of Boston. But by last summer, the downtown office boom was dying, and AEW was desperately seeking new tenants, as the vacancy rate at 250 S. Wacker was about 82.5 percent. When MillerCoors moves in, 100 percent of the building will be occupied.
...According to the overview, the “project will expand the tax base because the investment in the property will result in an increase in its assessed value.” Well, let’s hope so. At the very least, maybe AEW will drop its ongoing appeal to get the Cook County Board of Review to lower its assessment. (The firm currently pays about $422,000 a year in taxes on the building.) But even if the tax base does expand, until 2030 none of those new tax dollars will go to schools, parks, or other taxing bodies; they’ll flow into the LaSalle Central TIF fund, so Mayor Daley can hand them over to the next conglomerate that comes knocking on the city’s door..."
http://www.chicagoreader.com/features/stories/theworks/090326/index.php?cAction=
Monday, February 9, 2009
No Surprise: Chicago Pissed Away $300 MM On the Parking Deal
TW: We posted on this when it happened.
http://treylaura.blogspot.com/2008/12/these-privatization-programs-are-insane.html
http://treylaura.blogspot.com/2008/12/chicago-under-benevolent-dictatorship.html
http://treylaura.blogspot.com/2009/01/well-that-did-not-take-long.html
But it is always good to see the obvious stated in print by an actual economist. The net net Daley traded $300 million of future revenue over the next 75 years in order to fix the next two or three years budget shortfalls. Disgraceful governance.
From the Chi Tribune:
"Mayor Richard Daley reaped a windfall and avoided further budget cuts when he secured fast-track City Council approval of a 75-year lease of the parking-meter system, but an economist's analysis concludes he also gave up hundreds of millions down the line.The complex agreement, the first of its kind in the United States, nets the city a one-time cash payment of nearly $1.2 billion when the deal is closed this month.But the city could have earned $1.5 billion—in today's dollars—if it kept the meters and simply raised rates to the same levels it granted the winning bidder, according to H. Woods Bowman, a professor of public service at DePaul University.
..."There's nothing that would prevent the city from doing what the private sector is doing," Bowman said, noting aldermen already took heat for approving the rate increases in the deal...The reason they are doing it is because they can get the money now and close their budget gap."
...Pete Scales, spokesman for the city's Budget and Management Office, said Bowman's calculations don't take into account the risk of such a lengthy lease."[TW: this is happy horse dung from the City, what risks or at least what risks that could not have been mitigated in the future by the City]
http://tinyurl.com/d5qq77
http://treylaura.blogspot.com/2008/12/these-privatization-programs-are-insane.html
http://treylaura.blogspot.com/2008/12/chicago-under-benevolent-dictatorship.html
http://treylaura.blogspot.com/2009/01/well-that-did-not-take-long.html
But it is always good to see the obvious stated in print by an actual economist. The net net Daley traded $300 million of future revenue over the next 75 years in order to fix the next two or three years budget shortfalls. Disgraceful governance.
From the Chi Tribune:
"Mayor Richard Daley reaped a windfall and avoided further budget cuts when he secured fast-track City Council approval of a 75-year lease of the parking-meter system, but an economist's analysis concludes he also gave up hundreds of millions down the line.The complex agreement, the first of its kind in the United States, nets the city a one-time cash payment of nearly $1.2 billion when the deal is closed this month.But the city could have earned $1.5 billion—in today's dollars—if it kept the meters and simply raised rates to the same levels it granted the winning bidder, according to H. Woods Bowman, a professor of public service at DePaul University.
..."There's nothing that would prevent the city from doing what the private sector is doing," Bowman said, noting aldermen already took heat for approving the rate increases in the deal...The reason they are doing it is because they can get the money now and close their budget gap."
...Pete Scales, spokesman for the city's Budget and Management Office, said Bowman's calculations don't take into account the risk of such a lengthy lease."[TW: this is happy horse dung from the City, what risks or at least what risks that could not have been mitigated in the future by the City]
http://tinyurl.com/d5qq77
Tuesday, January 13, 2009
Why Do We Do This?
TW: My gratuitous observation of the day. Why do we need the above? The scene is from this morning at a south suburban home near Chicago where a man is holding his wife hostage. Unfortunate certainly, unique by no means as these situations have been occurring for decades.My question is why do we fund tactical assault teams with armored vehicles and high powered weapons (generally overweight white males btw) to march around like special forces amidst a "24" episode.
Thirty years ago we had this scene on say Adam-12 twice a season, the situation was addressed without so much drama with a handful of regular police officers and perhaps a street wise hostage negotiator. But now we have the above.
Saturday, January 3, 2009
Well That Did Not Take Long
TW: Was perusing the Chi Trib this morning (a process that takes about 3 minutes usually due to the shrinking content of that paper), but ran across an article on the Chicago City budget. SHOCKINGLY, a rainy day has arrived already and that parking meter fund set aside for posterity is already in line to be tapped. Yep it took all of one month for the City to start in on the fund. We posted on the topic last month when the plan to capitalize 75 years of revenue was announced.
http://treylaura.blogspot.com/2008/12/these-privatization-programs-are-insane.html
From the Chi Trib:
"Just weeks after Mayor Richard Daley said the city's new budget wasn't overly optimistic, his chief financial officer announced Friday that revenue fell short by $31 million in recent months amid a worsening economy.If the downward trend continues, City Hall will have to find more ways to cut costs or boost revenue, said Paul Volpe, whom Daley has tapped to be his new chief of staff...Volpe also said the city could tap a $324 million rainy-day fund to be created when Chicago closes on the 75-year lease of its parking meters for nearly $1.2 billion"
http://www.chicagotribune.com/news/local/chi-daley-city-budget-03jan03,0,4749873.story
http://treylaura.blogspot.com/2008/12/these-privatization-programs-are-insane.html
From the Chi Trib:
"Just weeks after Mayor Richard Daley said the city's new budget wasn't overly optimistic, his chief financial officer announced Friday that revenue fell short by $31 million in recent months amid a worsening economy.If the downward trend continues, City Hall will have to find more ways to cut costs or boost revenue, said Paul Volpe, whom Daley has tapped to be his new chief of staff...Volpe also said the city could tap a $324 million rainy-day fund to be created when Chicago closes on the 75-year lease of its parking meters for nearly $1.2 billion"
http://www.chicagotribune.com/news/local/chi-daley-city-budget-03jan03,0,4749873.story
Thursday, December 11, 2008
Tuesday, December 9, 2008
Chi Town Hits a (Very) Soft Patch
TW: Man, we were rocking (the Obama thing etc.) but the last couple of days have been tough. Yesterday, Chicago Tribune- owner of our paper, our primary baseball team (sorry Nardo), our TV station and a key architectural landmark- goes bankrupt and Ron Santo for the umpteenth time gets shafted by the Hall of Fame voters in favor of yet another so so New York Yankee.
Then today Blagojevich just takes the cake. We are used to benevolent dictatorship, e.g. Daley mayoralties, and a fair amount of corruption (see George Ryan, Dan Rostenkowski and a hundred others). But Blago has some real cojones, it is no surprise I suppose merely further affirmation of how messed things are.
From the prosecutor statement via TPM:
"Regarding the Senate seat, the charges allege that Blagojevich, Harris and others have engaged and are engaging in efforts to obtain personal gain, including financial gain, to benefit Blagojevich and his family through corruptly using Blagojevich's sole authority to appoint a successor to the unexpired term of the President-elect's former Senate seat, which he resigned effective November 16. The affidavit details numerous conversations about the Senate seat between November 3 and December 5. In these conversations, Blagojevich repeatedly discussed the attributes of potential candidates, including their abilities to benefit the people of Illinois, and the financial and political benefits he and his wife could receive if he appointed various of the possible candidates.
Throughout the intercepted conversations, Blagojevich also allegedly spent significant time weighing the option of appointing himself to the open Senate seat and expressed a variety of reasons for doing so, including: frustration at being "stuck" as governor; a belief that he will be able to obtain greater resources if he is indicted as a sitting Senator as opposed to a sitting governor; a desire to remake his image in consideration of a possible run for President in 2016; avoiding impeachment by the Illinois legislature; making corporate contacts that would be of value to him after leaving public office; facilitating his wife's employment as a lobbyist; and generating speaking fees should he decide to leave public office.
In the earliest intercepted conversation about the Senate seat described in the affidavit, Blagojevich told Deputy Governor A on November 3 that if he is not going to get anything of value for the open seat, then he will take it for himself: "if . . . they're not going to offer anything of any value, then I might just take it." Later that day, speaking to Advisor A, Blagojevich said: "I'm going to keep this Senate option for me a real possibility, you know, and therefore I can drive a hard bargain." He added later that the seat "is a [expletive] valuable thing, you just don't give it away for nothing."
Then today Blagojevich just takes the cake. We are used to benevolent dictatorship, e.g. Daley mayoralties, and a fair amount of corruption (see George Ryan, Dan Rostenkowski and a hundred others). But Blago has some real cojones, it is no surprise I suppose merely further affirmation of how messed things are.
From the prosecutor statement via TPM:
"Regarding the Senate seat, the charges allege that Blagojevich, Harris and others have engaged and are engaging in efforts to obtain personal gain, including financial gain, to benefit Blagojevich and his family through corruptly using Blagojevich's sole authority to appoint a successor to the unexpired term of the President-elect's former Senate seat, which he resigned effective November 16. The affidavit details numerous conversations about the Senate seat between November 3 and December 5. In these conversations, Blagojevich repeatedly discussed the attributes of potential candidates, including their abilities to benefit the people of Illinois, and the financial and political benefits he and his wife could receive if he appointed various of the possible candidates.
Throughout the intercepted conversations, Blagojevich also allegedly spent significant time weighing the option of appointing himself to the open Senate seat and expressed a variety of reasons for doing so, including: frustration at being "stuck" as governor; a belief that he will be able to obtain greater resources if he is indicted as a sitting Senator as opposed to a sitting governor; a desire to remake his image in consideration of a possible run for President in 2016; avoiding impeachment by the Illinois legislature; making corporate contacts that would be of value to him after leaving public office; facilitating his wife's employment as a lobbyist; and generating speaking fees should he decide to leave public office.
In the earliest intercepted conversation about the Senate seat described in the affidavit, Blagojevich told Deputy Governor A on November 3 that if he is not going to get anything of value for the open seat, then he will take it for himself: "if . . . they're not going to offer anything of any value, then I might just take it." Later that day, speaking to Advisor A, Blagojevich said: "I'm going to keep this Senate option for me a real possibility, you know, and therefore I can drive a hard bargain." He added later that the seat "is a [expletive] valuable thing, you just don't give it away for nothing."
Saturday, December 6, 2008
Thursday, December 4, 2008
Chicago Under Benevolent Dictatorship
TW: This Chicago parking meter deal has me chafed. I have mentioned before that more than most understand we are governed by the equivalent of benevolent dictators (POTUS relative to national security, the Fed relative to monetary policy etc.). Certainly Chicago is governed by a benevolent dictator as epitomized by this deal. I have also mentioned benevolent dictators while anti-democratic are neither new to the US nor necessarily bad.
But if you have a dictator you better be damn sure to get one that knows what they are doing (hence W. Bush has been a real problem) and they should be truly benevolent and far-sighted. Unfortunately Mayor Daley and his ilk are mortgaging the future of our great city in pursuit of short-term budgetary and hence political gain. This deal not only uses future cash flows to pay for current spending it imposes a completely regressive tax on the citizens of Chicago while cynically providing limited funding for "low-income Chicagoans".
And thanks to the ineptitude and toadiness of the alderman and media, while they shriek and moan about the increases, not one word is uttered about using your children's and grandchildren's cash flows to pay for next year's budget.
From the Chicago Tribune:
"...Anticipating big shortfalls, Daley plans to set aside as much as $675 million of the one-time parking meter windfall to help balance the city's budget [TW: plus another $100 million for "low-income people" whatever that means and I would bet you $100 the rest gets pulled into the current budgets much sooner than later]. Last year, Daley had said the meter money would be kept in reserve instead...
Several aldermen also raised concerns about being given only 72 hours to review, evaluate and approve the deal [TW: that is what dictators do, ram things through]...Volpe [budget director] said interest rates are currently very low and the city wants to act now in case those rates increase in this "volatile market." [TW: this is complete BS, almost no one expects interest rates to go up in the short-term and I assure the folks making a 75 year deal are not focused on short term anyway]. He also said the city needs the money as soon as possible [TW: which says it all, this is about addressing one year's budget by selling out the next 75]..."
http://newsblogs.chicagotribune.com/clout_st/2008/12/aldermen-debate.html
But if you have a dictator you better be damn sure to get one that knows what they are doing (hence W. Bush has been a real problem) and they should be truly benevolent and far-sighted. Unfortunately Mayor Daley and his ilk are mortgaging the future of our great city in pursuit of short-term budgetary and hence political gain. This deal not only uses future cash flows to pay for current spending it imposes a completely regressive tax on the citizens of Chicago while cynically providing limited funding for "low-income Chicagoans".
And thanks to the ineptitude and toadiness of the alderman and media, while they shriek and moan about the increases, not one word is uttered about using your children's and grandchildren's cash flows to pay for next year's budget.
From the Chicago Tribune:
"...Anticipating big shortfalls, Daley plans to set aside as much as $675 million of the one-time parking meter windfall to help balance the city's budget [TW: plus another $100 million for "low-income people" whatever that means and I would bet you $100 the rest gets pulled into the current budgets much sooner than later]. Last year, Daley had said the meter money would be kept in reserve instead...
Several aldermen also raised concerns about being given only 72 hours to review, evaluate and approve the deal [TW: that is what dictators do, ram things through]...Volpe [budget director] said interest rates are currently very low and the city wants to act now in case those rates increase in this "volatile market." [TW: this is complete BS, almost no one expects interest rates to go up in the short-term and I assure the folks making a 75 year deal are not focused on short term anyway]. He also said the city needs the money as soon as possible [TW: which says it all, this is about addressing one year's budget by selling out the next 75]..."
http://newsblogs.chicagotribune.com/clout_st/2008/12/aldermen-debate.html
Wednesday, December 3, 2008
These Privatization Programs Are INSANE!
TW: Chicago is leading the way in privatizing public revenue streams. We have done so with the Chicago Skyway and Mayor Daley is proposing to do the same with our parking meters. These deals would more accurately be described as capitalization schemes. The City of Chicago is trading 75 years of revenue in return for $1.2 billion. The deal is getting huge press mainly as in order to get the $1.2 billion upfront the city is proposing to let the private firm raise meter rates by up to four X over the next four years. No doubt by weaving the increases into a "capitalization" scheme the city believes the increases will be more palatable but my far greater concern is what the deal means for the future finances of Chicago.
Perhaps if the $1.2 billion was put away into some form of annuity or investment vehicle (preferably not invested in CDOs or Icelandic currency), then such a deal would not be destructive to the long-term financial health of the City. However, the actual plans for the money are much different. The vast majority of the money will be used for standard operating budgets over the next three years
"The Daley administration said $400 million will go into a long-term reserve, $325 million will be spent in city budgets through 2012 and $100 million is earmarked for programs helping low-income people. An additional $324 million is headed toward a fund city officials said "may be used to help bridge the period until the nation's economy begins to grow again."
So about one-third of the money will be set aside (with no guarantees it will not be grabbed say next year) and the balance will be deployed over the next three years including that "$100 million of low-income" which is mere vig to insure the votes of the city alderman to approve the plan.
Chicago is trading 75 years of revenue to shore up the next 3 year's budgets!!
These capitalization schemes are toxic waste being planted in a bi-partisan manner throughout the country, they are fiscal insanity. They are literally equivalent to a 20 year old capitalizing her life time earnings and then going on a three spending binge.
http://newsblogs.chicagotribune.com/clout_st/2008/12/city-parking-me.html
Perhaps if the $1.2 billion was put away into some form of annuity or investment vehicle (preferably not invested in CDOs or Icelandic currency), then such a deal would not be destructive to the long-term financial health of the City. However, the actual plans for the money are much different. The vast majority of the money will be used for standard operating budgets over the next three years
"The Daley administration said $400 million will go into a long-term reserve, $325 million will be spent in city budgets through 2012 and $100 million is earmarked for programs helping low-income people. An additional $324 million is headed toward a fund city officials said "may be used to help bridge the period until the nation's economy begins to grow again."
So about one-third of the money will be set aside (with no guarantees it will not be grabbed say next year) and the balance will be deployed over the next three years including that "$100 million of low-income" which is mere vig to insure the votes of the city alderman to approve the plan.
Chicago is trading 75 years of revenue to shore up the next 3 year's budgets!!
These capitalization schemes are toxic waste being planted in a bi-partisan manner throughout the country, they are fiscal insanity. They are literally equivalent to a 20 year old capitalizing her life time earnings and then going on a three spending binge.
http://newsblogs.chicagotribune.com/clout_st/2008/12/city-parking-me.html
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