Division Street

Making fun of Todd Stroger - even when laced with outrage - can become so entertaining and commonplace that we can lose sight of the stakes. Now we have a fresh look at Cook County finances that isn’t funny at all in the form of a credit report from Fitch Ratings.

“Even as controversy rages over Cook County’s big new sales tax hike, a major financial ratings service is warning that the county’s fiscal picture is darkening and suggests that a sales-tax increase now may not have been a good idea,” Crain’s reported on the Fitch analysis last week.

“In a statement issued late Tuesday, Fitch Ratings moved its outlook for about $3 billion in Cook County debt from ’stable’ to ‘negative, a step short of an actual rating downgrade that would increase the county’s costs of borrowing.”

That’s a cost that taxpayers bear.

“The New York firm cited weakening county finances, structural deficits in the county’s massive health system and ‘an increasingly high-tax environment for retail sales in a down economy.’

“Fitch is not taking a position on the public policy question of whether the county should or should not have raised its sales tax from 0.75% to 1.75%, says Melanie A. J. Shaker, a Fitch director who was the lead analyst on the report. But she says the agency is questioning the viability of the levy given that, in the midst of an economic downturn, combined with the city sales tax, Chicago now has the highest rate in the country, at 10.25%.”

Here are some highlights from the Fitch analysis itself.

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This proposed ordinance to make county buildings bird-friendly will be discussed at a meeting of the Construction Committee of the Board of Commissioners of Cook County next Tuesday.

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PROPOSED ORDINANCE AMENDMENT

AN AMENDMENT TO SECTION 2-6 (BUILDING CONSTRUCTION)

WHEREAS, the Cook County Forest Preserves and surrounding areas are home to at least 290 known species of birds; and

WHEREAS, Cook County lies along the Mississippi Flyway, through which millions of birds of 300 different species pass every year; and

WHEREAS, birding is a hobby enjoyed by 64 million Americans and generates more than $40 billion a year in economic activity in the United States; and

WHEREAS, as many as one billion birds may be killed by collisions with windows every year in the United States, according to studies by Dr. Daniel Klem, professor of ornithology and conservation biology at Muhlenberg College in Allentown, Pennsylvania; and

WHEREAS, Field Museum scientists studying bird collisions at McCormick Place found that turning off lights reduces bird collision deaths by 83 percent; and

WHEREAS, the Chicago area is emerging as a national leader in protecting birds from collision; and

WHEREAS, the City of Chicago was the second city in the nation to sign the Urban Conservation Treaty for Migratory Birds in 2000, a partnership between individual cities and the U.S. Fish and Wildlife Service to protect migratory birds through habitat conservation and educational programs; and

WHEREAS, the City of Chicago has developed a very successful Lights Out program in recent years, encouraging the owners and managers of skyscrapers to reduce illumination during migration periods; and

WHEREAS, in 2005 the City of Chicago and the Birds and Buildings Forum hosted the first-ever national conference on bird-safe buildings; and

WHEREAS, Cook County adopted the Green Buildings Ordinance in 2002, committing itself to construct buildings which minimize environmental harm; and

WHEREAS, bird-safe design features can be incorporated into new construction and major renovation projects at no extra cost, and existing buildings may be made bird-safe through the use of simple, low cost adaptations; and

WHEREAS, bird-safe practices often go hand-in-hand with energy efficiency improvements.

NOW, THEREFORE, BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 2 Administration, Article I, Section 2-6 (Building construction) of the Cook County Code is amended as follows:

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Your window into Cook County government. That’s right, it’s blank.

This just came in over the transom.

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PRESIDENT TODD H. STROGER’S STATEMENT CONCERNING THE SALES TAX

For Immediate Release
James Ramos, Press Secretary
Attention: News Assignment
312-603-0365
jaramos@cookcountygov.com

The government of Cook County is mandated by the state of Illinois to provide an array of services to its citizens. Governments throughout the nation, and in the state of Illinois, have imposed taxes to combat the rise in costs and cuts made by the federal government. The state of Illinois just recently raised its sales tax a quarter (1/4) of a percent to meet transportation costs.

The federal government’s cuts in Medicaid and Medicare will result in the Cook County Bureau of Health losing over 500 million dollars over the next five years.

Cook County offers other essential services that must be provided as mandated by the state of Illinois. These services include, but are not limited to, the Recorder of Deeds; State’s Attorney’s office; Sheriff’s office; Assessors office; the Circuit Court of Cook County; Board of Elections; Public Defender’s office; Animal Control; Board of Review; Treasurer’s office; the Medical examiner’s office; the Chief Judge’s office; the County Clerk’s office, and the Public Guardian’s office.

In the passing of the FY2008 Budget, the Cook County Board of Commissioners made a fiscally sound decision by increasing revenue to ensure that these services would not be interrupted.

This new revenue increases the sales tax by 1 percent, or “one penny on a dollar.” This tax is the only new tax increase passed by the board in the FY2008. This tax does NOT affect Real Estate Property Taxes – or anything attached with a TITLE. It is important to remember that this sales tax does NOT apply to goods, particularly groceries items such as food, milk and meats, prescription drugs, medicines and medical supplies.

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Also, the new tax will fund more press releases like this one.

The Tribune editorial page today reminds readers of the “Stroger-Daley Tax” that goes into effect on Tuesday.

(Why not the Daley-Stroger Tax? Without Daley, the tax doesn’t happen; without Stroger, it does.)

The paper includes a graphic comparing our new 10.25 percent sales tax burden to other area communities.

What the Trib didn’t do was break down the sales tax and show what our money will be funding. Fortunately, the Division Street accounting department had some free time this morning and crunched the numbers. Here’s what they found:

* Richard M. Daley Defense Fund: 3 percent

* Diversion of funds to Richard M. Daley campaign fund: 1 percent

* John Daley insurance fees: 1 percent

* Michael Daley legal fees: 1 percent

* Bill Daley sympathy fund for being the smart one: 2 percent

* Todd Stroger Friends & Family Plan: .5 percent

* Walkaround money: .5 percent

* Raise to David Axelrod: .5 percent

* Cook County Democratic Party Swiss bank account: .5 percent

* Funds to tear down the Swallow Cliff toboggan slide: .25 percent

“My two greatest passions combined,” Dan Sprehe, chief investigator for the BGA, writes to Division Street. “The only thing that would have exceeded it would have been a screen shot of Chief Wiggum or Mayor Quimby.”

From the BGA’s press release:

“A Better Government Association (BGA) investigation, in partnership with Fox-Chicago, shows Cook County has failed to live up to its own laws for tracking and managing its large fleet of vehicles. The bills for those vehicles, their maintenance, and their expensive gasoline are paid by Cook County taxpayers, already struggling to fill their own gas tanks.”

From the Fox Chicago report “Cook County Loses Track of County Cars and Who’s Driving Them“:

“We’re just days away from the new Cook County sales tax going into effect and new questions are being raised about the county’s ability to manage its budget. A Fox News investigation with the Better Government Association found the county can’t tell us how many cars it owns or who’s driving them. It’s been three years since the county last accounted for. As Dane Placko reports, the county isn’t following its own legal requirements.”

If Cook County needs a new revenue stream, it ought to consider making reality TV series’ out of various aspects of its operations. For example, home renovation shows are hotter than an overburdened Cook County taxpayer right now, and a perfect opportunity has presented itself. I bring you:

The Cook County Criminal Courts Administration Building Kitchen Renovation project!

That’s right. A kitchen makeover at the, um, CCCAB is well underway - the change orders are already rolling in.

Here’s the agenda of that just came out from the Construction Committee - surely a fine source of subplots and treachery:

JUNE 24, 2008 NOTICE

“The recessed meeting of the Construction Committee of June 24, 2008 of the Board of Commissioners of Cook County will reconvene on Tuesday, July 1, 2008 at the hour of 9:30 A.M. in the Board Room, Room 569, County Building, 118 North Clark Street, Chicago, Illinois to consider the following:

294361 OFFICE OF CAPITAL PLANNING AND POLICY, by Bruce Washington, Director, transmitting a Communication, dated May 2, 2008:

transmitted herewith for your approval is Change Order No. 6 in the amount of $174,215.09 to the contract with Simpson Construction Company, Bellwood, Illinois, contractor for the Cook County Criminal Courts Administration Building Kitchen Renovation project. It is respectfully requested that this Honorable Body approve this request.

Reason: This change order provides for the rebuilding and removal of existing molded walls and corroded metal studs per industry standards, replacement of all corroded electrical conduits within the wall and the installation of an additional layer of waterproofing membrane and epoxy grouting.

Epoxy grouting! Gripping!

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It’s not just who you know, but who you campaign for.

* “More than 90 Chicago Police employees - including a recently promoted district commander - have received payouts from a $12 million fund created to compensate victims of City Hall’s rigged hiring system,” the Sun-Times reports.

The Chicago Police Department: To protect and serve your mayor.

* “A real estate agent Cook County Board President Todd Stroger hired for a high-level Health Department job apparently created just for him in January has been demoted and had his salary cut after the Tribune questioned his qualifications,” the Tribune reports.

“Donald Burleson, a South Side Realtor who worked at Stroger’s health club, is one of at least three people county officials hired before they had the legal authority to do so.”

It’s not who you know, it’s where you work out.

* “Cook County Public Defender Edwin Burnette on Tuesday tried to delay County Board President Todd Stroger’s attempt to fire him until his pending lawsuit over control of the office is resolved.”

It’s not who you defend, it’s who you sue.

For the last eight years, Rita Rezko has sat on the Cook County Employee Appeals Board, which hears the cases of non-union county workers who believe they have been unfairly fired. As Ben Bradley of ABC7 reports, board members are paid $38,500 a year to attend one meeting per month. And they get health insurance.

That’s an outrage in and of itself, but according to Bradley’s report, Rezko is collecting her dough while only sporadically bothering to even show up at the meetings.

“According to documents released by the county, back in 2005, Mrs. Rezko missed nearly half of the meetings. The following year she attended eight of 14 sessions. Last year, her attendance greatly improved and she only missed one. But now, with her husband on trial, she has only made it to one of three board meetings held so far this year,” Bradley reports.

“Do you think you’ve put in attendance worthy of $38,000 a year?” he asked her.

“Oh, absolutely. Just like everyone else on that board,” she replied.

Is smoke blowing out of your ears yet?

“‘For example, until today’s, you’ve missed every board meeting except for this one,’ Bradley pressed. Rita Rezko walked away.”

And here’s the kicker:

“I’d like to say just sometimes because you’re not at the meetings doesn’t mean you’re not working,” said Gene Mullins, Todd Stroger’s spokesman.

It was almost better than The Hills. I can’t even remember why Lauren is so mad at Heidi anymore, but who cares when you’ve got The Surreal Life: Cook County.

In last night’s episode, Todd Stroger’s childhood friend and taxpayer-supported public relations chief Gene Mullins squared off against Cook County Commissioner Larry Suffredin on Chicago Tonight. The Better Government Association’s Jay Stewart played the role of “Voice of Reason” while Eddie Aruzza expertly moderated.

The story up to now: After excruciating budget showdown which resulted in a widely loathed sales tax increase, Stroger’s hinky spending continues, including plans to add a public relations consultant to the PR team that is already 15-people strong because, after all, the county’s woes are the media’s fault.

Here’s a rough look at the script, edited for clarity with occasional interjections shouted at the TV from Division Street. Imagine the voices getting louder as it goes.

ARRUZA: Why?

MULLINS: To promote the activities we have and services we offer at the county hospitals . . . that people don’t know exist.

ARRUZA: What’s been done up to now? Why isn’t that good enough?

MULLINS: Of the 15 people referred to by the Sun-Times . . . only myself and the assistant director report to the president and talk to the media . . . the rest perform different tasks . . . cable employees, graphic designer . . . all are listed under PR, but they don’t all perform the duties of PR.

DIVISION STREET: Those are just budget titles.

ARRUZA: Why aren’t you reassigning jobs to utilize the budget better?

MULLINS: We have to bring in professionals to get the word out.

DIVISION STREET: It’s not like we can depend on the amateurs on our payroll.
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