Illinois Public Media News
Hundreds of city workers could face layoffs if they don't agree to make concessions that would save the city $20 million, Chicago Mayor Rahm Emanuel said Wednesday.
Emanuel said that he will not have to lay off workers if he and the unions reach an agreement by a Thursday night deadline, but added: "If they don't agree to it, then 625 people and their families will lose that job. And that's not necessary."
The mayor would not say whether layoff notices would go out immediately.
Emanuel said he still hopes unions can be his "partner" in helping close a multimillion dollar budget gap left to him by former Chicago Mayor Richard Daley. In order to balance the 2011 budget, the Daley administration struck an agreement with labor to make workers take several unpaid days off, for an annual savings of $30 million. But that agreement expires Thursday at midnight, leaving it up to the Emanuel administration to negotiate with labor on concessions for the second half of the year.
Emanuel has said he is against imposing more furlough days on city workers. But he declined to offer specifics on the $20 million in savings he proposed to Chicago Federation of Labor President Jorge Ramirez when they met on Tuesday, other than to say that they comprise several "work rule and workplace reforms and efficiencies" that he said are common practice among private sector unions.
The 625 workers who could be laid off have been identified as a "precautionary" measure, Emanuel said. But he declined to say which workers might face layoffs, or what city services they could affect.
A statement Wednesday afternoon from union leaders claims there have been no negotiations between them and the city. Jorge Ramirez from the Chicago Federation of Labor and Tom Villanova of the Chicago & Cook County Building Trades Council said union workers have already sacrificed a lot, and should not be blamed for the city's budget problems.
A building nearly destroyed by fire in Champaign's Campustown neighborhood could be operating again by early 2012.
The fire that began in the upstairs of the structure in the 600 block of East Green Street brought business to a halt at Mia Za's café, Zorba's restaurant, and Pitaya clothing on March 23rd.
But an architectural firm has filed a permit to rebuild, and work with the three owners going from the drawings of the shell of the outer building. Neil Strack with Architectural Expressions LLP said the initial plans are to place a new upstairs, roof, and front façade on the building. He expects it will be about 60 days before the building's occupants can do their work.
"How long does it take for their drawings to get ready, ordering materials, contracts, so on and so forth," said Strack. "That would be past that 60 days, so you're talking about another 3 or 4 months after that before you see your first tenants open back up again."
Strack said communication will be a big concern moving forward since the building has three different owners and four different tenants, which includes two upstairs apartments.
Champaign's Building Safety Supervisor, Gary Bowman, said the challenge now is restoring the roof and outer shell after reviewing drawings of the building's original 1920's design.
"It's always a bit more complicated when you're trying to go back and repair something that's damaged and somewhat of an existing structure as opposed to building brand new from ground level," Bowman said. "A lot of times it's actually faster to build brand new than it is to try to repair an existing structure and correct all the things that are necessary for that. That inevitably adds time to the project."
Strack said it will take some time to comply with current codes in the old structure. The demolition and removal of remaining debris has been completed.
(Photo by Jeff Bossert/WILL)
The automotive parts company Thyssen Krupp Presta Danville, LLC, has announced an expansion, creating up to 100 new jobs in central Illinois.
The company also said Wednesday it would close its cold forge facility in Danville and relocate it to Puebla, Mexico. Thyssen officials said the 40 workers at the plant would be offered positions at its Presta manufacturing facility in Danville.
The company said it will invest nearly $40 million to increase production capacity at the Presta facility. The money will be spent on new assembly lines and machinery to be installed by December 2012.
Thyssen officials say expansion is needed because of increasing customer orders. They are looking to hire line and machine operators, equipment technicians and production support workers.
Thyssen received state tax credits and grant money.
Champaign, Urbana and Danville handle about 6,000 nuisance property cases a year. While most property owners fix problems when they receive notification, those who don't cost the city-and taxpayers-thousands of dollars in clean-up costs. As part of the series "Life on Route 150," CU-CitizenAccess reporter Pam Dempsey looks at how cities in east central Illinois are working to keep blight out of neighborhoods.
(Photo by Pam Dempsey)
(With additional reporting from Illinois Public Radio)
Legislation to authorize five new casinos in the state is waiting for Gov. Pat Quinn's signature, but the governor cannot sign the measure just yet.
The bill seeks to add casinos in Danville, Chicago, Rockford, Lake County and southern Cook County. Quinn has criticized the plan, calling it "top heavy." Though, he has said he could envision a casino in Chicago if it is properly done.
To buy some more negotiating time, Senate President John Cullerton is using a parliamentary procedure to hold the bill. Gambling supporters hope adjustments can be made to the legislation so that Quinn will sign it in the fall.
"He's obviously expressed concerns publicly on some of the provisions in the bill," Cullerton said on Monday. "So we're taking the time to go over the bill with the governor to make sure if there's any changes that he wants, that he can make those through a trailer bill."
During a visit to Champaign Tuesday afternoon, Quinn said lawmakers should just send him the gambling measure.
"I have 60 days to review the bill," Quinn said. "In this case they're holding it. I don't know what that's all about. I find it kind of a maneuver. I don't think that's necessarily the best way to go, but they can do what they want to. We're still going to analyze the bill from top to bottom."
The measure also seeks to add slot machines at horse racing tracks, Chicago's airports and the state fairgrounds. Supporters of the legislation say increasing the state's gambling industry would bring in $1.6 billion dollars in upfront fees and $500 million dollars or more annually.
New regulations clamping down on workers' compensation abuses in Illinois have been signed into law.
The changes include a 30 percent reduction in medical payments. Other provisions include letting payments for carpal tunnel syndrome last only 28 1/2 weeks, instead of 40. New guidelines also will make it harder for intoxicated workers to win claims.
During a visit to Champaign Tuesday afternoon, Governor Pat Quinn praised the measure, saying the changes are reasonable.
"The reforms we enacted I think will help workers and maintain their right to get compensation for an injury and at the same time be fair to the employers, and not in any way take advantage of them," Quinn said.
But State Senator Shane Cultra (R-Onarga) said the workers comp legislation does not go far enough. He said it could do a better job connecting injuries that happen as a result of a job, rather than at a job.
"With causation, it's like putting a band-aid because you're still going to have claims filed that probably shouldn't be filed and attributed to workers' comp," Cultra said.
The changes to workers' compensation are expected to cut between $500 million and $700 million from the $3 billion workers' compensation system.
The 2008 recession has taken its toll up and down U.S. Route 150 - and the U.S. Department of Agriculture says almost every Illinois county along the 150 corridor has seen an uptick in 2010 in use of the Supplemental Nutrition Assistance Program, better known as food stamps. But anti-hunger advocates say many people who have lost their jobs are NOT taking advantage of SNAP. Illinois Public Media's Dave Dickey reports as a part of the series "Life on Route 150.
The inventory of available houses and condos on the market in Champaign County is ample and growing. So says the head of the county's Association of Realtors - potentially good news for buyers, but he says sales are relatively slow.
May figures from the state realtors' organization shows 204 sales during the month, down 20% from May of 2010, with year-to-date sales down more than 15%.
Champaign County Association of Realtors president Max Mitchell says tax credits for first-time home buyers have come to an end, and since then buyers have been hesitant. "In 2011, with the interest rates being so favorable, it has gotten people out, but people are a little bit nervous simply because they've heard on the news that you have to have a higher credit score to qualify for a loan," Mitchell said.
Mitchell says the potential for higher required down-payments also has buyers and real estate observers worried. On the other hand, state figures suggest that home prices in Champaign County are holding their own compared to the rest of the state - the median sale price in May held nearly steady with the median price a year ago.
But Mitchell cautions that foreclosures are becoming more of a problem for the market. He says up to now, foreclosed homes have been a target for investors. "Now there are more foreclosed properties, and unfortunately, investors see that if you're going to own a foreclosed property, you aren't going to be able to resell it for a much higher amount in today's market.
The way Illinois taxes businesses has developed a bad reputation. A growing number of companies cite it as a hindrance. Now, though, the leaders of the state Senate and House are making an overhaul of the tax structure a priority.
Caterpillar CEO Doug Oberhelman sent a letter to Governor Pat Quinn in March outlining how Illinois lawmakers' actions were making it harder for him to withstand the heavy courtship of other states wanting the Peoria-based equipment-maker to relocate.
The letter set off a frenzy because Caterpillar's moving would be a major loss to Illinois. Oberhelman later refined his point and says the company has no plans to leave.
Nonetheless ... the focus was drawn to Illinois' business climate. Since then, there has been a drumbeat of headlines about this year's tax hike, and about subsequent tax breaks given to corporations like Motorola and Navistar to entice them to stay, which is why the House Speaker and Senate President formed a joint committee to consider overhauling the business tax structure.
Democratic Representative John Bradley of Marion will be a co-chair. "The idea being here that we're going to try to make Illinois keep up with the times and be handling the corporate tax structure that is efficient, fair, balanced and competitive manner," Bradley said.
Hearings will be held this summer, but times and locations haven't yet been set.
The decision by the mayor of Urbana to veto city funding for the Champaign County Convention and Visitors Bureau will only hurt the city in the long run, according to the group's president Jayne DeLuce.
Mayor Laurel Prussing said the agency has not been effective, and that the nearly $72,000 in the budget for the CVB could be used to help fill two police vacancies instead.
But DeLuce said cutting funding will limit the CVB's ability to promote events like the Illinois Marathon and state high school athletic tournaments, and facilities like hotels and convention spaces. She said she will attend an Urbana City Council committee meeting on July 11th to defend her agency's work.
"We're not looking back in five years and saying, 'Wow, how come we don't have that event here anymore? How come nothing new has happened anymore? Why are our tax revenues staying plateaued or not increasing?' And when you decrease local funding, that's what happens," DeLuce said.
But right now, Prussing said she does not believe the CVB's claim that it has generated 7.2% of hotel room nights in Urbana, for an economic impact of over $3.1 million, according to a formula used by the state Office of Tourism.
"I think most of the tourists that come to Urbana and Champaign come here because of the University of Illinois," Prussing said. "I don't think that the tourism bureau has much of an impact. They can't measure their impact. No business in Urbana has told me they have an impact on that business."
A statement from DeLuce said one Urbana businessman --- Adam Friederich of the Comfort Suites Hotel --- credits the Convention and Visitors Bureau for nearly 10% of their budget revenues so far this year.
But Prussing said the city needs the money budgeted for the CVB to help close a nearly $1 million budget gap --- one that may get wider, once a new police contract is settled through binding arbitration.
Prussing said the idea for cutting CVB funding to help address the budget shortfall came from Alderman Charlie Smyth.
Smyth said he brought up the proposal last month, to contrast it with proposed cuts to social service funding --- something he said is an easy target because the people served by such funding do not have the political voice of local business interests. But Smyth said he has not reached a final decision yet.
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