Someone Want to Verify This? (UPDATE)
From the comments:
- FYI, members of the cities law department, finance and mayors office (not the mayor) had an "impromptu" meeting with attorneys at Jones-Day law firm. You probably think why is this important. Its important because if you do research you will see that the Jones-Day law firm just finished handling the City of Detroit's Bankruptcy. Jones-Day orchestrated the entire Detroit financial restructuring and pension overhaul. Research even further and you will find that Jones-Day are major business/municipality experts for bankruptcy. Trust me, that 500 million dollar payment for our pensions will not get paid and the above meeting is why. Yes, the city will declare bankruptcy to get its pension overhaul. The information may seem off the wall and exaggerated but from the person I got the information from its extremely reliable and needs to be received seriously. God help us.
Does Illinois bankruptcy law allow for municipalities to declare in light of numerous financial assets that can be re-appropriated to make payments? There are two airports sitting around generating billions. TIF funds with little-to-no oversight. If the red light and speed camera revenue had been directed to pensions (as our readers and we suggested), Rahm wouldn't even have a payment to worry about. Sounds shaky.
UPDATE: As someone reminded us, Detroit's bankruptcy required a very specific inventory of assets:
One has to wonder what a forensic accounting of the Chicago Art Institute might reveal. We've got a couple good crowbars - maybe a van Gogh or a Renoir would look good on our retirement wall in lieu of payment.UPDATE: As someone reminded us, Detroit's bankruptcy required a very specific inventory of assets:
- After Detroit's bankruptcy filing July 18, 2013, creditors targeted the collection of the Detroit Institute of Arts as a potential source of revenue. State-appointed emergency manager Kevin Orr hired Christie's Auction House to appraise the collection. After months of determining the fair market value of art purchased with city funds, Christie's released a report December 19, 2013, saying that the collection of nearly 2,800 pieces of city-owned artwork, was worth $454 million to $867 million, with one masterpiece by Van Gogh worth up to $150 million.
To prevent possible sale of the works, museum proponents developed what has been named the grand bargain. Under the plan, the museum will raise $100 million, nine private foundations pledge $330 million, and the state of Michigan will contribute $350 million for a total of $820 million that will guarantee municipal workers' pensions. In return, the city of Detroit will give the collection and the building to the non-profit entity that already operates the museum. This plan was challenged by other creditors, who claimed that it treated them unfairly and requested to conduct their own appraisal of the museum collection. Some creditors came forward with offers from other parties to buy the artworks for sums higher than Christie's appraisal. Meanwhile, May 13, 2014, Detroit emergency manager Kevyn Orr asked Detroit automakers to add $195 million to make the grand bargain stronger.
The discovery in 2014 that DIA President Graham W. J. Beal and Executive Vice President Anne Erickson received significant raises in 2014 and $50,000 bonuses in 2013 caused a lot of anger among Wayne, Macomb and Oakland County taxpayers, and Oakland County Commissioners threatened to stop Oakland County's participation in the DIA millage. During a meeting October 23, 2014, the Oakland County Commissioners warned DIA board chair Gene Gargaro that they have drafted a resolution to dissolve the Oakland County Art Authority which collects the Oakland County millage and passes it to the DIA.
Labels: money questions, pension
posted by SCC at 1:03 AM
155 Comments:
Well, I'm not thinking full out bankruptcy.. But if this meeting is true you know rahm has something up his sleeve... And if he has something up his sleeve we can all agree it's not in favor of unions or our pension. He's dealing with heavy hitting restructuring experts.. Something's up for sure
I don't see this as possible. The city has boats loads of money and they spend it on all kinds of stuff. Way to many assets to be compared to Detroit. I don't see how the city can cry bankrupt over the pension that they just don't want to fund. BS!
Rahm Emanuel is running for re-election. If he is considering bankrupting this city, he will be considered an untouchable failure and will have tanked his aspirations for any political future.
I don't see him deliberately shooting himself in the foot like that.
ps - The TIFs, alone, would preclude any bankruptcy.
The last thing the city wants is to declare bankruptcy. That would kill our bond rating and put an end to any infrastructure projects. They're trying to figure an end around that preserves the rating.
obviously, you are not privy to the Big Picture. If so you would know the financial/economic disaster this city faces.
Rahm would never do that
Rahm Emanuel’s offensive new pension-gutting scheme
The mayor of Chicago is now arguing that pension funds are not part of city government at all. How convenient!
http://www.salon.com/2015/01/18/rahm_emanuels_offensive_new_pension_gutting_scheme_partner/
If Rahm allows the City to declare bankruptcy in order to retain the 500 million plus monies...he deserves no less than a boycott of extreme proportions with no Mayor-ship in sight for him.
Yep, he can't declare bankruptcy to get out of the payments. That little weasel would have to use all the revenue from the likes of the airport, amongst other sources, to pay it off. No getting around this one little raccoon.
This will never happen in chicago. First chicago is an economic and tourism hub. Second rahms ego would never let him admit failure.
If thats the way the city wants to handle their obligations to us then see what happens to traffic tix, parkers, anovs & arrests. New York has shown all of us about solidarity. Remember folks, they need us a whole lot more than we need them. We do on a department wide slow down and force a federal investigation on the city budget to see who is skimming what and why the pension contributions arent getting paid. Albeit they wont let it get that far. The city is already burning, let it burn down to the ashes and we can start over.
I been saying this for a minute... Once this goes through,(And I hope they do it), At the end of the day--- CPD will end up with 401k. just a little background, I cut out of CPD and left the city for another department after getting it raw by the department. Goodbye skallawags
Even if 100% accurate, do you think any of this means anything to "Today's CPD"?
Nope.
Just let them know when and how much their retro checks will be.
And as long as VRI is around, it's all good.
Oh yeah... and new cars. Let 'em fight for the keys to those new SUVs negotiated into the contract instead of language to protect the pension.
And just champing at the bit for the 10 Hour schedule which means having to hire less officers. Which means less officers paying into the pension. Dean and Co. won't even have to sugarcoat this schedule to ram it down the membership's collective throat if the uneducated and shortsighted amongst us get their way.
You know, the things that are REALLY important.
If Chicago declares bankruptcy it wouldn't look good on Rahm's Resume would it?? His next step would surely be out the door.
I've said from the minute Rahm first threw his hat in the ring to run for mayor that this slimy prick has absolutely no intention of funding our pensions.
Rahm doesn't like our pensions and has openly said so.
He feels we're not entitled to our pensions as currently set up.
We all know that if Rahm doesn't like something he simply won't do it.... laws, contracts etc. be damned. He's got the assets to fund our pensions he simply refuses to even consider doing so.
He's never factored that $500 million balloon payment that's legally required because he's not planning on paying it.
Jones Day did do Detroit's bankruptcy, but now Detroit won't pay them. . .
http://www.jonesday.com/city-of-detroits-chapter-9-plan-of-adjustment-confirmed/
Rahm will get his way and he will do it... the stage has been set, Illinois has a Rep. Gov. elect. and he will say, "I tried pension reform, that did not work. I tried a property tax increase, that did not work. I tried negociating with the unions, that did not work. So this is a last resort to save the city of chicago's financial stability" Or something to that effect someone with a harvard degree will polish up. I am just got out of CPD, try New Mexico guys, cheap houses, place has it shit together
Once Rahm is wins the election I can totally see this happen. Guess I better at least try the cat food. I'll just pretend its tuna :(
So...
After Daley Inc. stole and estimated $12 to &15 Billion of taxpayer money and Rahm al-Ghoul blowing into town to punish the makers to pander to the takers and blame the mess on the Police while busting them out of their pensions and rewarding his money manager friends with what's in our pension pot for a small management "fee?"
These assholes really DO want to start another Civil War.
I wouldn't put it past Rahm. He's a sawed off little bully and, of course, when we're all fighting to keep our pensions whole, he'll resort to threats and any other underhanded tactics he can find to try and get his way. He's probably only covering the bases though and doing his due diligence to discover every avenue to screw us over.
Chicago IS NOT Detroit, however. Detroit collapsed with the heyday of the auto industry. There is no such similarity here in Chicago. The economy here is doing just fine, property values are steady, multi-million dollar projects are moving right along with others lined up to begin, and yes, SCC, there are all those TIF funds and other available revenue that can be diverted.
And then there is the little matter of a forensic audit of all of the municipal funds controlled by this City government that I'm sure EVERYONE will demand in Federal court before any bankruptcy proceedings would begin.
I'm guessing it will be pretty difficult for our politicians to convince a Federal judge that Chicago is in need of financial relief when they are still building BILLION dollar projects in honor of THEMSELVES in the form of parks (like Chicago doesn't have enough parks). In fact, isn't Rahm even trying to GIVE AWAY park land to a university so they can build Barry Obama's Presidential Library?
And hey, what about the shitload of free park land labor and such that Rahm would be giving to George Lucas for his lakefront Star Wars museum?
And isn't Rahm building an Arena and Hotel for a PRIVATE school and some pals who helped make him rich from Marriott Hotels? Oops, how do you explain that one to a bankruptcy judge, Mr. Mayor?
Yeah, I'd say with all of the things going on with Chicago taxpayers' money, that the LAST thing Rahm and the Cook County and Chicago evil cabal of elected officials wants, is the Feds poking around and seeing the results of a forensic audit of Chicago's finances!
ANYBODY BUT RAHM! Get out and vote. Get your family and friends out to vote.
I will make a wager that Rahmulus Caligula will Weasel deal his way out of making the $700 Million payment to our Pension Fund. Of course, Dean Angelo and his Corruption Crew at FOP will go along with it. Dean Angelo will keep his yapper shut and not say a word about it. If he says anything,it will be double speak and twisted up semantics..Goofballs that voted for Dean Angelo should have done due diligence on Dean Angelo before they voted for him. He only came back at the request of the Political/Organized Crime Cartel that controls Chicago.
You think proactive policing is just about done now (minus the Koolaid drinking Gen-Y Hairgels) just wait until they try to do an end-around the state constitution to get their latest version of wealth redistribution going. Things finna get ugly as Hell.
City has to open all the books and show all that TIF money the city is hiding!
Totally agree with you. Bankruptcy means opening up the books, which none of these crooks will ever do voluntarily.
I am a paramedic for the fire dept. and I am assigned downtown on Chicago Ave. Every shift day ,all up and down Michigan Ave. , the street is jammed packed with people that are shopping, eating or going to museums, theatre and movies. We constantly get people into our firehouse buying t-shirts and asking for directions to any number of places where the will go and spend money. I don't believe for one second this city doesn't have the money to fix our pensions. Not with all of the tax revenue that is generated! That is another reason why when people try and say Chicago is the next Detroit I have to laugh. There is no way we become Detroit! Just take a walk down Michigan Ave!
Chicago can not declare bankruptcy for the very reasond cited.
The amount of money in the slush funds, sorry, TIF funds, must be used to pay all debts. The public does not know the amount but the feds do.
Maybe they were using that firm for some form of restructuring or payment options?
Just because the firm was used to work with Detroit to file doesn't in of itself mean that is all the firm specializes in.
There is no Illinois bankruptcy law. Only federal law.
Spending over a hundred million in police overtime a year and giving away free college education to anyone who wants it? doubt very highly the city can claim broke.Just two examples
Very good scoop, SCC.
Does Illinois bankruptcy law allow for municipalities........?
Bankruptcy is not my specialty but I am an attorney. As far as I know, bankruptcy is governed entirely by Federal Law, i.e. the US bankruptcy code. There is no state bankruptcy law of which I am aware.
On to the substance of your question, what about the airports and the TIF funds? There just aint no hiding of assets in a bankruptcy case. To do so is surely a civil offense, and possibly a criminal offense as well. Full disclosure is one of the cornerstones of the bankruptcy arena.
Call the next case. Not a cop.
Let him declare bankrupt! First the freebies stop! Then federal oversight comes in! Then we find out how much is in the tiff funds! Then a lot of people go to jail when the Feds find out how these morons handle the cities finances and why payments were not made into the funds! So bring it on rhambo!
And, add a casino to that revenue generating list.
Just raise the minimum retirement age to 60. No more under 55.
OFF TOPIC
SCC, have you heard about the mass exodus from the US Attorney's Office in Chicago?
dozens of the best federal prosecutors have been abandoning ship and taking other jobs
anyone know why?
Great, declare bankruptcy. Throw the City into receivership and let the Receiver take all those pools of money and use them to pay the obligations of the City...
It'd be yet another sad narrative on the (lack of) management and governing skills by the Democrats...
I kind of doubt a bankruptcy court would force a city to sell off an airport ... but that's just a guess
Well it appears that this will require me to stay until I'm 63. Damn, just to think that I was planning to retire at age 55 in Aug of 2016. The good news is that I'm no longer at the districts.
There is no Illinois bankruptcy law -- bankruptcy is purely Federal. And I think the answer to your question is "no."
"Illinois bankruptcy law" or any other law in Illinois is controlled by them. They will do what they want and make it legal. We are fucked.
Not entirely true. Detroit is looking for investors in municipal bonds it intends to float. Detroits bonds will pay for its infrastructure problems. Everybody settle down. FYI
Does anyone know the due date on that 500 million dollar pension payment? I know it is some time in 2015.
Rahm will look at the scam of idea but...
The state constitution does not disappear.
Can't be President of the U.S. if you can't run a little city like Chicago.
The Cities interest rates would sky-rocket and Obama would be enraged because he would look like a BIGGER goof.
Lastly those fat contracts will be looked at like Lalapolloza, the famous Bean bar on park land, Divy bike, Meter deal, Selling the Skyway.
Chicago has the lowest property tax rate in Cook County. The city could double its tax rate and still not be near the top in Cook County tax rates.
The threat of Bankruptcy, if real, is just a scare tactic.
Trump declared bankruptcy 4 times. I guess the mayor believes that he can do it, welch out of our pensions and then business as usual. What happens if the city prospers in the future? do they increase our pensions again? Not a chance.
In 2008 I posted about the Pension Fund and the fact it would be belly up by 2020 or so. I also questioned the financial acumen of some of the elected trustees. I have posted occasionally about the Fund and maybe the FOP should have had some bargaining position ( please no comments about it being state law- not a bargaining position as the FOP previously did it when they " forgave" a 20 million dollar payment by the city for a " chump" retro check.
Most people that post here still do not get it- your pension is worth at least 1 million dollars- the retro and other things are small in comparison.
The last time I posted I was lambasted by numerous posters stating that the law is that the city has to contribute 500 million towards the fund.
It will not happen. You can talk constitution, law and the rest of it- the Pols and the courts will get around it.
And when the dust settles, the deal the Sergeants Association made with the Pols will look good.
old retired guy
I never heard this. The city has been spending large amounts of money on several pet projects. Of course they are all terrible investments. But our city is nowhere near bankruptcy. If something like this is being considered by rahmie then it should be very simple to counter argue this. I do understand that he has been trying to show a pattern ever since he became our murder mayor. All of his projections for his revenue generating ideas were incredibly short. This scumbag is trying to promote careless and irresponsible spending as an acceptable way to not pay his debts.
Silly SCC, tricks are for Daley's.
If this goes through. God fucking help all the principals involved. There is no where in this country you will be able to hide.
Its not that simple. Cities can't just declare bankruptcy. Especially if they have a source of additional revenue(property taxes) Cities cant just say I don't want to raise property taxes so we will file for bankruptcy. Detroit was a whole different story. No one was paying the property taxes so raises them would not have helped.
Also the city would have to open their books(sweetheart deals, freebees to connected people,etc) so they won't let that happen. Not to mention all the losses that would have to be absorbed by the politically connected investors. In Detroit most of the investors received 10 cents on the dollar. No way this is happening in Chicago. They might be trying to find a way to not pat the 550 million,but no bankruptcy.
very serious stuff....
Just stop it already with this bankruptcy talk. There's no basis for it. And I'd bet my next paycheck no such meeting took place, certainly not about this. The money exists. Period.
The city will NOT open their books. As SCC stated, TIF $ sitting around, airports etc. Don't see bankruptcy coming. Wonder what they see in their crystal ball about the Illinois Supreme Courts upcoming ruling? Just one city workers opinion.
I have no doubt that the city will at least consult a law firm to see if this plausible. And I have no doubt that the law firm will be more than happy to explore or pursue said bankruptcy because they will get paid for their services regardless of the outcome.
However, Detroit is still being held liable for their pension payments AND they have absolutely no money.
Chicago has money but they don't want to spend it on pensions. I really don't see how they can win. At best this is a stall tactic.
Tiny Dancer is trying to say that pensions aren't part of city government. This meeting, if it occurred, has nothing to do with the city declaring bankruptcy, but with declaring the pensions bankrupt.
Rahm is a slippery, evil prick.
Chicago cannot declare bankruptcy. Bankruptcies fall under the jurisdiction of federal law. Municipalities can declare bankruptcy under Chapter 9 of the federal bankruptcy code but (here’s where it gets complicated) only if the state in which the municipality exists has laws that that allow its municipalities to file for bankruptcy. Illinois has no such laws, therefore Chicago cannot declare bankruptcy.
Where are bankrupt municipalities in Illinois dealt with then? The Illinois Municipal Code. They fall under the state jurisdiction of the Financially Distressed City Law, found at 65 ILCS 5/8-12-2, et seq.
Here’s a good, short, recent article that explains it: http://www.wirepoints.com/dont-count-on-a-bankruptcy-proceeding-to-fix-illinois-government-at-any-level/
Here’s another article showing East St.Louis fared under the Financially Distressed City Law, and showing what many 5-year olds know: if you don’t change your ways, you will never get out of your problems: http://tigger.uic.edu/cuppa/pa/faculty/vitae_pdf/Case%20Study%20E%20St%20Louis.pdf
Please stop this...we are no where near bankrupt....yet. Rahm is sitting on 3 billion (with a B)dollars that he has access to. THe TIF funds and discretinary funds. Detriot was flat broke...money squandered on entitlements. We're getting there, but we are a long way off
Sounds like shakey grounds, yes. But it sounds reasonable in terms of how far this administration will go to weasel out of what is contractually owed. Rahm should be made to address his intentions.
keep on writing anovs parkers and movers and making arrests they represent streams of revenue for the city of chicago who by the way this city of chicago is trying to get from under their legal and moral obligations by using the bankruptcy laws.
Technically, Illinois does not allow municipalities to file for chapter 9 bankruptcy. But, as the article at the link sets forth, that won't keep some from trying, or working to change the law to allow it. http://chicago.suntimes.com/politics/7/71/213885/next-up-illinois-municipal-bankruptcy
Bankruptcy no, the city has revenue, assets and ability to pay its debts. Shennagins yes, the city has means available to spend millions to law firms to cook the books.
After the fixed election of course.
Chicago is not Detroit. This ain't gonna happen. This might be a ploy by Raccoon Eyes to get the city pensions to go along with his "reform" agenda. Scare tactics.
why is anyone surprised about this? we have the village idiots running the city who have zero understanding what the word "accounting" means. In addition, everyone who votes for these idiots needs to have their taxes raised and leave everyone else the fuck alone.
This firm might not actually handle the case, but they will consult the law department. The city and state will refuse to pay because "the system is broken"and it is an "emergency". This will all be out in the open by march 15. Rham will say "we have to protect the taxpayers. " meanwhile the 1percent ers get the tif money, depaul basketball and george lucas.
They might have been meeting with them to try and figure out how to get out of their $500 million obligation but they're not going to be able to. You can't just declare bankruptcy because you don't feel like paying your bills. Chicago isn't Detroit. Detroit was truly bankrupt after the auto plants shut down. Chicago is not bankrupt. The mayor spends hundreds of millions of dollars on bullshit every year such as parks, bike lanes, and college stadiums. There's billions in TIF funds. The bottom line is our pension fund is a bill he just doesn't want to pay but he's going to have to. It's kind of like when someone borrows money from you, never pays it back, and all of a sudden avoids you. He'd rather use that $500 million for other bullshit and kick the pension can down the road for the next mayor to deal with. Sorry Mr. Mayor, it's time to pay your bills and meet your obligations.
If the City does not pay, are they not breaking the Law?
They have to do this before any Casino deals, don't want to deprive your connected friends out of any cash they deserve and need, it's for their children.
Rham gots to do sumpin, he cant breathe!
The Art Institute is a private entity unconnected to the City of Chicago.
Bankruptcy means not enough assets to handle liabilities. Not the case here.
As long as the minimum wage is raised and everyone gets free kindergarten and a new Malcolm X College is built is all that matters. Scum emanuel bastard.
It's not about city bankruptcy.
It's about letting the funds go bankrupt. They are separate entities from the city.
They are trying to figure out what the city's liability is when the funds go belly-up.
Just read so called "friend" of the court brief filed by Rahm's chicken little moron lawyers in the state pension lawsuit before the Supreme Court and it alleges thousands of police officers, firefighters, and other city employees will be layed off to pay city pension expenses. By contract, I thought they have to lay off all civilian employees before a sworn member gets axed. Brief is online at capitol fax.
Can I continue to work VRI ? Also please stop calling me a scab !
1) The Art Institute of Chicago is not owned by the City of Chicago. Therefore the city's creditors cannot make a claim against it to settle the city's debt.
2) Bankruptcy is an issue of available funds to pay current obligations. Even if you have lots of cash coming in, if the outflow exceeds your income, and you can't borrow more to pay today's bills, or liquidate/monetize assets (sell or lease assets) you are in default, which is then cause for filing bankruptcy. The city has more bills to pay than it has cash once the pension payments come due. This is why Rahm has not hired more police - he cannot find the money.
3) You folks in Chicago are facing the TRIFECTA. Illinois, Cook County AND Chicago are all in DEFAULT or soon will be. Illinois is in arrears and owes billions to it's creditors, (pension funds, Medicaid providers etc).. Cook County was saved in the short term from insolvency due to a short term bailout from Obamacare taking over some expenses from County provided healthcare. This is ending. So everybody is broke.
4) The State of Michigan put money in the pot as part of the Detroit bankruptcy workout. Illinois is in default. How can they help Chicago or Cook County?
5) The only questions to be answered now are: how big of a haircut will creditors, bond holders and pensioners take, how much will taxes be raised, what assets will be sold, and how much blood will the State suck from the rest of the Illinois taxpayers in terms of reduced services and higher taxes to pay for the corruption coming out of Chicago, Cook County and the Democratically controlled State Government.
Good Luck Folks.. lube up, this is gonna hurt.
Relax people. It's all political theater. Rahm needs to say he explored all options before implementing the massive tax increases coming.
Unions must attack the new vote buying for mayor strategy Free College tuition , extra points and preference for CPS students as police recruits , CPS students that are over 7,000 on list in police academy , tax breaks for grocery stores opening in ghetto . We know why other stores closed , shop lifters , burglary ,robbery , thefts by employees , no $ for people that worked 30years for city are broke because of increased health care . Air conditioning for schools , please , how did students learn in the past . It is all smoke and mirrors , working class of every race is loosing buying power , water rates doubled , 911 tax tripled . Look at all the double dippers , retire and back on the payroll , clout . Where are the unions or mayoral candidates with this news . Also children shot everyday , police drivers for politicians kids while black children are slaughtered .
The Chicago Fixed Income Fund in your deferred comp will go to ZERO and you will lose all the money you have in this fund.
Sell the art, sell the airports, sell city hall, sell the parks, sell soldiers field, they have way too many valuable assets to declare bankruptcy. Oh they also have schools, a cta line to sell and cta busses. Detroit property value is so low that each school, city hall etc was only worth $5-10k each. Our property airports, soldiers field, millennium park. Etc is work billions of dollars. Nice try rahm. To think the fireman endorce this guy!! Wtf were they smoking
There is no such thing as a partial bankruptcy. It's all or nothing.
If this were true, a city bankruptcy would basically replace the mayor with a federal receiver. It would mean a complete audit of all city assists. It would mean that bond holders would get in line with pensioners to figure how much they get on the dollar. It would mean cancellation of the parking meter and red light deals. It would mean dissolution of the TIF funds.
It would also mean the State of Illinois bonds would be downgraded to junk. Illinois would not be able to borrow money. It would mean a state default that would demand a bailout from the Feds under the U.S. Constitution.
If the third largest city in the US and one of the largest economies in the world declared bankruptcy it would be anything but impromptu.
CO Book posting. Retro checks available for pick up 20JAN15.
SCC, have you heard about the mass exodus from the US Attorney's Office in Chicago?
dozens of the best federal prosecutors have been abandoning ship and taking other jobs
anyone know why?
I would guess that they are tired of taking orders from the White House/Eric Holder on who to investigate and NOT investigate. Do you think that our former US Attorney Fitzgerald just decided to quit for no apparent reason?
It's just like the example of our former respected Chicago Fire Commissioner who up and quit, Chicago, only to take a fire job the same week at an outside agency fire department.
In a word... POLITICS.
The ? i have is what did rahm tell the firefighters EB thursday night,then friday they support him for mayor.
Selling the Art Institute of Chicago's collection would not be an option. The Detroit Institute of Art had the unusual situation of actually being owned by the city of Detroit. City of Detroit money was used to buy many pieces of art. There are items in the DIA's collection that could not be sold as they were purchased with donations. I couldn't find online what exact connection the Art Institute of Chicago has to city government.
I call dibs on Montrose Harbor or Buckingham Fountain. I know they are park property but if the city goes down the park district won't be far behind.
http://chicagoartmagazine.com/2010/06/who-owns-the-museum/
This makes clear that the Art Institute of Chicago's collection is NOT subject to any government oversight.
I am a paramedic for the fire dept. and I am assigned downtown on Chicago Ave. Every shift day ,all up and down Michigan Ave. , the street is jammed packed with people that are shopping, eating or going to museums, theatre and movies. We constantly get people into our firehouse buying t-shirts and asking for directions to any number of places where the will go and spend money. I don't believe for one second this city doesn't have the money to fix our pensions. Not with all of the tax revenue that is generated! That is another reason why when people try and say Chicago is the next Detroit I have to laugh. There is no way we become Detroit! Just take a walk down Michigan Ave!
1/19/2015 06:06:00 AM
Agree with you. Chicago is much more secure with our Tech industry and stocks/investments/trading/financial. Detroit depended on one thing. Chicago is way too important to the rest of the country and world.
People who say we'll become the next Detroit don't know Chicago
When you look at the underfunded police and fire pensions, I think Rahm is exploring the possibility like GM did with the UAW, a spin-off of the pension obligation into a separate entity whereby that separate entity stands on its own and can file for possible bankruptcy but the City and its credit rating remain separate. If municipal bonds are floated by the City to bail out the separate entity, I'm sure they would be quickly purchased by investors, although with a higher interest rate for a higher rate of return.
Jones Day, Goldman Sachs, etc. as well as other large law and investment banking firms are paid handsome hourly rates to be creative in their financial engineering.
What I believe wets Rahm's pants at night is the fear of the remaining middle class and their exodus from the City due to increasing property tax and fee burden. There the only ones capable of paying an increasing burden.
I relocated to Indiana from the City two years ago and continue to work in Illinois. My combined tax burden for federal, state, property tax, sales tax, gas tax, car license etc. dropped around 15%. Its a no brainer.
Rahm is about to cheat everyone out of their pensions without even the courtesy of a reach around.
The airports do not generate a single dollar for the city. They (at least O'Hare) work on a compensatory lease where the airlines pay the entire bill for their operation. But thankfully do not cost the city any money.
I believe that water is still the only city department that generates a profit for the city.
a federal audit of the books will show that the tif fund has been looted, broke,someone cooked the books and they don't know who took the money
Joe "Queen of Hearts" Ferguson, please update SCC readers on any OIG investigation into pay to play where it has been reported that Rahm's campaign operation and PACs supporting him have received more than $ 600,000 in campaign contributions from investment firms who manage our pension money. In fact, the former SEC chairman said it "smelled like bribery", Pew !! did you get a whiff ? Also please update us on any funny business going on and/or reasons for delay to the Lt. exam as I know your supposed to investigate promotional shenanigans, or at least your paid to do so. I post on SCC because I understand you and/or your stooges regularly troll this site.
SCC, a few points. One, Jones Day is one of the largest law firms in the world. They do a ton of work in all kinds of areas, and certainly are nowhere near constrained to municipal bankruptcies.
More relevant, in Detroit the Federal Bankruptcy Judge overseeing the bankruptcy fought tooth and nail for the pensioners. Orr originally made a deal with the big banks for "swaps" they had talked the corrupt Detroit leaders into buying. The deal would have let the big banks out with priority payments, and then left everyone else including pensioners to take very heft losses. The judge put a stop to that.
There are no guarantees that every Federal BK judge would try and protect pensioners, but in Detroit's case the pensioners did not fare nearly as well as originally threatened.
someone keeps spouting "stop making arrests...or anything else that makes the city money"
A clue, arrests DO NOT generate money for the city. They COST the city (and county) money.
for those of you who are stupid(must be from Bridgeport) and say it will never happen it can and it will. they are already doing this in the private pension plans and fed law allows them to declare bankruptcy and reduce pension plans BOEING and UPS withdrew from there pension plans and now have 401k. ITS HAPPENING ALL OVER don't blame rahm blame daley and his friends from the 11th n 19th wards.
I been saying this for a minute... Once this goes through,(And I hope they do it), At the end of the day--- CPD will end up with 401k. just a little background, I cut out of CPD and left the city for another department after getting it raw by the department. Goodbye skallawags
1/19/2015 02:47:00 AM
Sorry, it'll never happen and also sorry that you didn't pick a career with a pension... Wait, no I'm actually not sorry!
Chicago should sell off the Art Institute. I still remember their proud display of the American flag on the floor that had to be walked on to view one of their socialist exhibits.
Chicago has plenty of other assets to sell off to avoid bankruptcy.
Just raise the minimum retirement age to 60. No more under 55.
1/19/2015 07:43:00 AM
Oh that's smart genuis, let's have a bunch of senior citizens chasing these 18 year old gangbangers...moron
This is what we get for not sticking together. How does that early or late car start look to you goofs now?
Pull your heads out of your asses and learn to stick together!
The city QUIETLY paid 612 million to be of expensive in June 2014, rauner and Rahm have 1 common denominator, ken Griffin Citadel Hedge fund. After all is done in ISC and refusal to raise taxes they will say this is where we hav e invest. Now, ken Griffin is very successful but california just got rid of hedge funds because of high fees and 20% profit.
If he files Baknruptcy for the city he's putting Shortshanks and himself on the Federal radar. I highly doubt he'd want that.
This is not possible in Chicago. Way to much wealth, projects, and hidden $$$$$. Everything would be open and visible in the court. Chicago and Detroit are entirely two very different cities. Chicago has 100X the business, tourism, and assests than Detoit does. It's like comparing cake to cow pies. You can't cry bankrupt because you don't want to pay a bill that you blew off for other things for so many years. All Chicago's past, current and pending pet projects will be open in court.
I want a Monet,with swamp lilies,soothing to the soul,hanging over my fireplace,I could probably get a print with a fancy frame and get the same affect,smoke and mirrors just like Rhamulus!
Look at all the taxpayers money he's used frivolently and has ear marked to do so in the future; Maggie DALEY Park, De Paul debacle, Obama Library, he just spends and spends on whatever HE wants while flipping the bird to his first responders by REFUSING to make the city's mandatory pension obligations.
I hate to say it but the 457 plan assets belong to the city, not the members of the plan. Once one separates from service the funds can and should be transferred to an IRA. At this point the contributions and earnings are actually yours. Just sayin.
It's more likely the weasel punk was trying to make a public threat against unions by making this information public.
What's more likely is that he wants to find out exactly what type of bullshit these scumbag attorney's tried to pull in terms of trying to hide assets. This is Eputzuel's goal, attempt to try and find a way to claim the illegal siphoning of taxpayer dollars away from their intended purpose is NOT an asset.
Just like a Democrat.... devise a way to permanently steal pension dollars, then devise ways to siphon away as much money as you can to create the fake "poor boy" scenario so he can try and play the loser scumbag tactic of a bankruptcy.
Well, it ain't gonna work. Besides having billions lying around, his diversion of tax dollar scheme to try and act like a fuckin bank won't pass muster in bankruptcy court either.
They'll treat it exactly like any other bankruptcy.... they'll see that the city siphons away tax dollars into a slush fund and then gives loans to failures that a bank would never loan money to or GIVE away that money for free to connected people.
The city can't pull all their tax money and pool it in an account and claim there's no tax money to pay debt. That pool of money IS as asset in the eyes of the court, and it is NOT a required or necessary function of a city government to give taxpayer money away for free.
Chicago will never be allowed to get a bankruptcy past a judge. None would ever be able to apply bankruptcy law and ignore the stash of gold that was set up to deliberately create a false crisis while benefitting the rich.
He can bullshit all he wants.... this was nothing more than a stunt he WANTED made public to keep trying to threaten employees.
Rahms campaign commercial the Star Scholarship is financed by taxpayers.
Mayor Rahm Emmanuel announces the Star Scholarship Program.
Starting with the Fall 2015 semester, Chicago Public High School graduates with a 3.0 GPA who test college-ready in math and English will be able to pursue an associate degree at City Colleges of Chicago at no cost – free tuition, fees and books. City Colleges will provide this free college opportunity for Chicago Public High School students who graduate in Spring 2015 or later and who meet three requirements:
1.Graduates from a CPS high school with a 3.0 or higher GPA
2.Places into college-level Math and English via COMPASS or the ACT (score of 21 in math and English)
3.Enrolls in one of CCC’s structured, relevant pathways This includes undocumented students and students.
So let me get this straight. You announce a program that is nothing more than a taxpayer financed scholarship program that just portrays you as the caring mayor and is used as a purely political tool for your re-election with the tax payers footing the bill. The same taxpayers that work for a living, pay property taxes of which approximately 50% goes to the Board of Education, but you then discriminate against those taxpayers paying the bill by only allowing Chicago Public School Students, Chicago Charter school students and undocumented students access to this program. Or to put it another way, families who have paid 50% of their property tax bills to the board of education for the past 12 years and have not gotten any benefit for this portion of their tax bill, because they sent their children to private schools are not eligible but every other child is. This is Marxist discrimination by a Mayor intent on continuing the class divide in our city. As you increase your class of voters by showering them with everything free all our class is left with is standing outside looking in at something we paid for but cannot have. How is that legal? Only in Marxist America. How much longer are we going to stand by and have this shit shoved down our throats?
This was only a rumor.. Deeper thinking on my own makes me think it's probly untrue.. Who knows what's fact or fiction these days
They passed a bill a month ago allowing the bastards to cut Teamsters pension to those already drawing. Don't think yours is sacred!
Stand Down!!!!!
Until the city pays what they owe.
Wake up sheeple!!!!!
Chicago Art Institute is not run, owned or operated by the city. It is a run by a board with a very heavy endowment. The city has no control
I Fart In Your General Direction said...
Even if 100% accurate, do you think any of this means anything to "Today's CPD"?
Nope.
Just let them know when and how much their retro checks will be.
And as long as VRI is around, it's all good.
Oh yeah... and new cars. Let 'em fight for the keys to those new SUVs negotiated into the contract instead of language to protect the pension.
And just champing at the bit for the 10 Hour schedule which means having to hire less officers. Which means less officers paying into the pension. Dean and Co. won't even have to sugarcoat this schedule to ram it down the membership's collective throat if the uneducated and shortsighted amongst us get their way.
You know, the things that are REALLY important.
Sad but true. Ask some of the kids where you work about anything relevant to everyday finances from the interest rates on their credit cards to the steps taken to get their car loan to pre-qualifying for a mortgage, points, rates, PMI, etc. Hell, ask them if they're in the pension fund or if they were put into a 2 tier plan. Reponse is they glaze over like you're taking a foreign language to them. Clueless about a lot of shit is bad enough but clueless when it comes to money, financing and investing is a recipe for financial ruin, especially with this potential move on our pension. But tell them they're getting a few Gs retro cash and nothing else matters.
Sooner or later the socialists run out of other people's money.
-Margaret Thatcher
Chicago ran out out of other people's money. And Illinois is just as broke.
I really hope that the F.O.P. and it's retirement committees have contact information on all retirees. At a moments notice, we should be able to march around the "Hall", cram City Council meetings, organize large scale walks down Michigan Avenue and cause disruption and mischief of all kinds. With nothing to lose, I think many retirees would participate.
Just an FYI to some posting here. Retro pay is not a "perk" as some think. Retro pay is pay that is OWED to you. It was pay that you would have got if the City and Union had negotiated the contract on time. If the contract goes back to prior years (like 2012-2013), retro pay is money OWED to you, not some "gift," or "perk." And that is OWED to you for ALL the time you worked during those years (OT, Special, VRI, etc.).
Small problem with the Detroit comparison....the City doesn't own the assets of the Art Institute its a distinct not for profit entity.
I had to double check, in the September 2014 issue of the Progressive, when reading Dean Bakopoulos and Abayomi Azikiwe. I was sure they had been referencing Chicago! Consider Azikiwe's observation "Nor will [Detroit] revitalize itself through more 'prestige' projects such as stadiums, arenas, entertainment districts, and exclusive housing complexes...This approach has failed repeatedly over the last two decades to revive the city and its population." This could just as easily have been written of Emanuel's pet project to allow DePaul University to impose its enormous arena on the South Loop.
Likewise Emanuel's hostility toward Chicago's blue collar workers. When Bakopoulos writes, "The promise of a pension is no longer a promise. Humans have become resources we protect only when it is fiscally convenient." (Or if the downtrodden might become media darlings and possibly embarrass the mayor and his puppet McCompStat.)
Many Chicagoans are worried we will become Detroit.
Keeping Emanuel at the helm, we are sure to.
CPD has a high divorce rate. Pensions are already cut in half for many retired Officers. How are retirees supposed to live, like the Ghetto Rats who will get more than our retirees who worked for it while the rats did nothing but freeload ?
Anonymous said...
I will make a wager that Rahmulus Caligula will Weasel deal his way out of making the $700 Million payment to our Pension Fund. Of course, Dean Angelo and his Corruption Crew at FOP will go along with it. Dean Angelo will keep his yapper shut and not say a word about it. If he says anything,it will be double speak and twisted up semantics. Goofballs that voted for Dean Angelo should have done due diligence on Dean Angelo before they voted for him. He only came back at the request of the Political/Organized Crime Cartel that controls Chicago.
1/19/2015 05:34:00 AM
So which one of the past or future presidential candidates are you? Billy? Brock? Scott? Carlos? Kevin?
Keep an eye On Rham's aboriginal sidekick, Rauner. That slippery prick, has not been in office a week , but he is in the Chicago News quite often.
They are both jerk-offs, but they are treacherous!
Stop comparing Chicago to s***holes like Detroit and East St. Louis. Totally different animal.
Why doesn't fop have buses to take us down to Springfield to sit in courtroom while they try to steal our pensions? Or have us standing outside court house in Springfield? Or thow madagin a few million in contributions to keep her quiet.
Judge will order the ballerina dancer to use tif funds to fund pensions . Retirement age to collect will be raised to 59 without penalty of 1% every 3 months that you leave before 59 . Pension fund will be 90% funded by 2017 .
That's it....I'm calling Peter Francis Geraci!!!!
"If this goes through. God fucking help all the principals involved. There is no where in this country you will be able to hide."
Public hanging sounds appropriate.
Drive down Ohio Street from Orleans to Michigan. Then down Ontario from Michigan back to Orleans. There are hordes of tourists and yuppies carrying bags of every flavor from every store on those streets not counting the mag mile.
Don't think Detroit is even remotely close to that category. This city generates millions of dollars daily.
Oh sorry. Almost forgot. That money is for the politicians to spend on their per projects and liberal democratic agenda, not for the bills.
Just restructuring pensions. Nothing to see here.
Move along...
Bullshit!
I see a lot of guys on here are still in reality... Chicago politics are far from reality. Anything can happen in the land of chicago. The pension deal is all smoke and windows, if you don't think your pension is gone, you will learn. It does not make sense for the city to continue to give you one, when they can use the money to build bicycle lanes and parks. You guys need to think in an alternate reality here.
Rahm cannot declare bankruptcy. It's not how it works. The decision is not up to him the way it is set up. A 3 person committee has to be formed, they investigate where the money is and then they recommend a decision. This includes all funds being revealed. It will never happen.
We all should be at each of his reelection rally's with signs that read 'WHEN WILL YOU FUND MY PENSION'
The City won't declare bankruptcy because it would open the City's book to a forensic audit. Also Chicago's taxes are lower than any of the adjoining suburbs (Park Ridge, Evanston, Oak Lawn and such). Property taxes, LaSalle Street Tax, Casino, City use tax for people who work in the city but to not live here.
Rahm Emanuel’s offensive new pension-gutting scheme
The mayor of Chicago is now arguing that pension funds are not part of city government at all. How convenient!
http://www.salon.com/2015/01/18/rahm_emanuels_offensive_new_pension_gutting_scheme_partner/
1/19/2015 02:00:00 AM
Thanks for posting this. I am stunned. 600,000 in campaign funds to Rahm from the people overseeing our pension. How is this not illegal? It's definitely unethical. How freakin corrupt this man is. Now the pension system is NOT part of the city because he received over half a million in connection with it? I wonder what they were promised for that amount of money. Disgusting.
Anonymous said...
keep on writing anovs parkers and movers and making arrests they represent streams of revenue for the city of chicago who by the way this city of chicago is trying to get from under their legal and moral obligations by using the bankruptcy laws.
1/19/2015 09:52:00 AM
--------------------------------
"moral obligations" please dont use these words in connection with city of chicago
Jones Day did do Detroit's bankruptcy, but now Detroit won't pay them. . .
http://www.jonesday.com/city-of-detroits-chapter-9-plan-of-adjustment-confirmed/
1/19/2015 03:45:00 AM
The city pension plans would be wise to talk to the attys in the Chicago office of Denton's who represented the Detroit retirees.
A relative knows a lot about the Detroit situation via work (not an atty) said they saved the pensioners from lives of proverty.
Anonymous said...
The Chicago Fixed Income Fund in your deferred comp will go to ZERO and you will lose all the money you have in this fund.
1/19/2015 11:49:00 AM
Huh? Wow! You are one dumb person. It's a private company. You better check with your mom cause you may paying her to much rent.
Anonymous said...
Can I continue to work VRI ? Also please stop calling me a scab !
1/19/2015 11:23:00 AM
The short answer is yes you can. But you better ask your mom first. She's the one making you pancakes every morning with the soft butter that you like. See you at Racine.
Anonymous said...
I hate to say it but the 457 plan assets belong to the city, not the members of the plan. Once one separates from service the funds can and should be transferred to an IRA. At this point the contributions and earnings are actually yours. Just sayin.
1/19/2015 03:48:00 PM
Wrong. It's scary that you are that dumb. So, is every single company in control over every one's money in a 401k also? How do these companies exist then? Why would anyone invest in them? is everyone just dumb?
To the idiot who asked why FOP doesn't have busses to Springfield and other courts our Pension cases are being heard.I don't know where you have been but obviously not on those busses that I wad on that were provided by FOP. Just last month I rode a bus provided by FOP to the 7the Circuit Federal Court of Appeals where the "Underwood vs City of Chicago" case was heard. On those busses with me were about 90 mostly retired Chicago Polce Officers who did utilize the transportation provided by FOP.
Sadly it should not have been 90 but 9,000.
Anonymous said...
I hate to say it but the 457 plan assets belong to the city, not the members of the plan. Once one separates from service the funds can and should be transferred to an IRA. At this point the contributions and earnings are actually yours. Just sayin.
1/19/2015 03:48:00 PM
You couldn't be more wrong. I've heard this nonsense before and it's simply not true.
1.Graduates from a CPS high school with a 3.0 or higher GPA
---
What about the Catholic school kids? No go for them? Why not? I pay $5K+ per year to the catholic mob because the CPS contain too many single-parented animals... and I have to suffer for it? Thanks Rahm, you socialist prick.
Anonymous said...
Rahm cannot declare bankruptcy. It's not how it works. The decision is not up to him the way it is set up. A 3 person committee has to be formed, they investigate where the money is and then they recommend a decision. This includes all funds being revealed. It will never happen.
1/19/2015 11:09:00 PM
The three person committee will be Ed Burke, John Daley and Judge Moishe Jacobious.
Next question please...
Whatever happened to Hutchie Moore?
Anonymous said...
Rahm is about to cheat everyone out of their pensions without even the courtesy of a reach around.
1/19/2015 01:27:00 PM
Right. And the same group of highly dedicated individuals will go to an FOP meeting and complain over pizza and beer. The only lawyer working for us, Clinton Krislov, will ask for donations to fund lawsuits on our behalf and maybe 10% will send anything in.
My former partner has a boatload of money, deferred did very well plus investments and a pension of around $84k and will not send a goddamned dime to Krislov because he hates attorneys.
We are fucked. We will continue to get fucked. A small number of officers will be forced to carry the whole load. FOP will be scratching their balls and rubbing their head without a clue. Dean Jr. especially doesn't have a clue.
City of Chicago does not own the Art Institute of Chicago.
I'll bid a sawbuck on that fucked up mural in the lobby of 35th & Michigan.
Every casino in Vegas has filed for bankruptcy or is planning on doing so to get out from under the pension obligations. The teamsters Central pension fund is planning on filing as are the United Mine Workers. It is a national trend that can't help but catch up to us sooner or later. The city not only owes 600 Million to the police fund in 2015, they will also owe 1 billion to the teachers fund. It is a crushing obligation.
Anonymous said...
1.Graduates from a CPS high school with a 3.0 or higher GPA
---
What about the Catholic school kids? No go for them? Why not? I pay $5K+ per year to the catholic mob because the CPS contain too many single-parented animals... and I have to suffer for it? Thanks Rahm, you socialist prick.
1/20/2015 08:26:00 AM
Plus you're paying for that one parented animal! How's it feel? And that one parent is making minimum wage so your kid can pay 10$ for a McDonalds Happy Meal. Does that make you happy?
I was out of town for a week. I saw only one shithead in a week, in a restaurant on the Interstate. I saw no piss bums with cardboard signs anywhere. I paid as low as $1.88 for gas and I could buy a comfortable house for $170k.
But no, it is.... Chicago, Chicago, that toddling town...
Anonymous said...
Jones Day did do Detroit's bankruptcy, but now Detroit won't pay them. . .
http://www.jonesday.com/city-of-detroits-chapter-9-plan-of-adjustment-confirmed/
1/19/2015 03:45:00 AM
The city pension plans would be wise to talk to the attys in the Chicago office of Denton's who represented the Detroit retirees.
A relative knows a lot about the Detroit situation via work (not an atty) said they saved the pensioners from lives of proverty.
1/20/2015 12:53:00 AM
from the Jones-Day link above:
One of the most important aspects of the plan is the global settlement of issues related to the City's (Detroit) pensions and retiree health care. As a result of months of mediation and negotiation between the City (Detroit), the official committee of retirees appointed by the Bankruptcy Court, the City's pension systems, and major unions and retiree associations, the plan enables the City's pensioners to retain between 95.5% and 100% of their current monthly pension allowance and increases the solvency of the City's retirement systems.
Anonymous Anonymous said...
City of Chicago does not own the Art Institute of Chicago.
1/20/2015 11:30:00 AM
Then we just send in the police and relieve the place of enough paintings to auction off to pay into the pension fund. Like they did with that painting of Harold Washington in woman's clothing. We have guns, they have pussy no gun decals. Therefore we win.
It's true Chicago is BK
.... The city not only owes 600 Million to the police fund in 2015, they will also owe 1 billion to the teachers fund. It is a crushing obligation.
1/20/2015 02:51:00 PM
It is a self inflicted blow. You cannot keep spending and loaning the money out of the pension, then not replace the funds you've used, for decades. What about accountability? To evade accountability municipalities and corporations simply file bankruptcy?
Pretty corrupt.
Anonymous said...
.... The city not only owes 600 Million to the police fund in 2015, they will also owe 1 billion to the teachers fund. It is a crushing obligation.
1/20/2015 02:51:00 PM
It is a self inflicted blow. You cannot keep spending and loaning the money out of the pension, then not replace the funds you've used, for decades. What about accountability? To evade accountability municipalities and corporations simply file bankruptcy?
Pretty corrupt.
1/20/2015 10:45:00 PM
The Teacher's fund shortfall is totally Daley's fault. He sought, and got, "Pension Holidays" to NOT pay into the Teacher's Pension fund for a set number of years in exchange for several contracts of high raises for Teachers. Recall 21% raises over 3 years for teachers? The city paid those only because the Teacher;s Union signed off on allowing the City to NOT pay anything into the pension fund. In short, the Teachers received raises paid for with their own pension money. Smart, eh?
That was when the Teacher's Pension was funded at over 100%. Now things aren't so bright. How do those raises look now? And where is the financial wizard who did it, namely Richard M Daley, the Bernie Madoff of Chicago City Government? Vacationing somewhere.
Now someone could make a case for Teacher's Pensions being lowered on account of their already receiving part of their pension money in the form of raises.
Whatever happened to Hutchie Moore?
1/20/2015 09:32:00 AM
He retired from 010 bout 7 or 8 yrs ago.
Hutchie Moore was the greatest Chicago Policeman who ever lived.
The US of A needs more like him.
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