Illinois Public Media News

AP - Illinois Public Media News - May 07, 2010

Report on Illinois Poverty Shows Impact of Recession

Vermilion County is once again on the warning list in a report on Illinois poverty put out by the Chicago-based Heartland Alliance.

The Alliance's "2010 Report on Illinois Poverty" lists Vermilion County among 29 counties in the state with high poverty, unemployment and teen birth rates, and low high school graduation rates. Christian and Kankakee Counties are also on the Warning List. The indicators are only a little better in DeWitt, Macon, Edgar, Coles and Clark Counties --- they've been placed on the report's Watch List.

Amy Terpstra with the Heartland Alliance's research unit says that while some counties are worse off, poverty has gotten worse in all parts of Illinois. But she cites differences between rural and urban poverty.

"When you look at rural areas, you see a lot of access issues", says Terpstra. . "Those people have a hard time getting to the services that they need to help them meet their basic needs. They have trouble getting transportation to jobs. When you start looking at some suburban areas, maybe slightly more urban areas, there's issues about enough resources to go

Overall, the report says about 1.5 million Illinoisans - 12.2% of the total --- were living in poverty in 2008, as the recession began. The study says those already living in extreme poverty have been the hardest hit, and their recovery is expected to be the slowest.

In addition, Amy Terpstra says the wealth of Illinoisans is eroding.

"You look at foreclosures and you look at bankruptcies", says Terpstra, "and you've seen both of those over the last couple of years really skyrocket. And so not only are families losing jobs and not drawing in that income, but their long-term wealth and their long-term stability is being eroded by bankruptcies and foreclosures and debt.

Terpstra says the Heartland Alliance calls on state lawmakers to find new revenue to shore up the state budget and preserve social service programs that help the poor.

The Heartland Alliance is a Chicago-based organization that grew out of that city's old Traveler's Aid Society. Terpstra says they believe that good government policy can help turn around the poverty rate. She says that includes putting "new revenue" into the state budget, and using the money to avoid deep cuts in social services.

Categories: Economics, Government, Politics

AP - Illinois Public Media News - May 06, 2010

ICC Finds Math Error in Ameren Rate Hike Ruling, Ameren Claims Additional Mistakes

A math error means Ameren can receive more revenue than originally anticipated in its request for a rate hike.

The Illinois Commerce Commission has corrected its projections. It says the utility company would get $15 million instead of the $5 million the agency when ruling on the request last week. But ICC spokeswoman Beth Bosch says while the additional $10 million dollars adds to Ameren's bottom line, it should have little, if any, impact on rates. "Because you spread it out over six companies, it doesn't change the rate impact significantly," said Bosch. "Gas rates will still be lower for delivery services. And the electricity rates will still be approximately the same as they were in the previous order." The increase between the rate case ruling released last week and the corrected one amounts about half a percentage point more for Ameren's IP, CILCO, and CIPS electric customers. Bosch says the mistake stemmed from a technical error in the calculation of Ameren's cash working capital.

But Ameren contends there are additional math errors in the ICC's ruling. Spokesman Leigh Morris says fixing 'several significant' mistakes would mean an additional $25 million in revenue, and the utility has filed an emergency motion with the ICC to have that done. But Morris says this decision is separate from whether the utility appeals its original rate hike request of $162 million. Ameren has until May 28th to request a re-hearing with the ICC.

Categories: Economics, Energy
Tags: economy, energy

AP - Illinois Public Media News - May 05, 2010

U of I Severs Ties With Consultant For Long-Range Planning

The University of Illinois will forgo much of a contract agreed to with consultants for its strategic planning process in light of budget problems.

The news comes as members of the U of I's Campus Faculty Association question the $450,000 contract with Kokomo-based Renewal and Transformation Group, or RTG, agreed to early this year. University Spokeswoman Robin Kaler says the group will complete reviews that are on the table, but very little of that amount will be spent. The university has already paid more than $1 million of an agreement with RTG that dates back to 2006. CFA President and History Professor Megan McLaughlin says the U of I's cutting ties with the consultant justifies her suspicion that the contract wasn't needed in the first place. But she says the group isn't dropping its Freedom of Information request to learn what consultants have done for the U of I thus far.

"This is one consultant - there are many of them out there.' said McLaughlin. "There's a consultant firm, for example, involved in the new president's search... and a lot of other activities on campus. So we want to know what's going on with those as well." McLaughlin says administrators are providing little information on what these dollars went for when there are already people at the U of I capable of planning a long-range vision for the Urbana campus. The CFA contends around 1,000 faculty members would have been spared their 4 furlough days had the U of I not spent this money. The faculty group also says consultant fees would have paid the salaries of about 100 teaching assistants for a year.

Categories: Economics, Education

AP - Illinois Public Media News - May 05, 2010

More than 600 UI Employees Slated for Early Separation or Retirement

Offers of buyouts are going out to more than 640 University of Illinois employees.

The Urbana campus began offering its voluntary separation packages over the winter to academic professional employees, with faculty being offered early retirement. This week employees who applied are finding out if their offers have been accepted - they'll be given contracts to sign within 30 days, and they'd leave their jobs by August. In exchange, they'd get 6 months' salary as an incentive.

U of I spokeswoman Robin Kaler says of the nearly 800 applicants, about 3/4 have been given the option to leave. "The goal of the program was to identify as many people as possible who were interested in retiring or separating from the university, willing to do that, and being able to reorganize, restructure in those given departments, to streamline a little bit," Kaler said.

Kaler says 483 academic professional employees have been approved to take buyouts if they want them. "Of those 483 that were approved, 211 of those positions will be refilled but at lower salaries. 272 of those positions will be eliminated."

Another 153 faculty members have been approved for early retirement, with 75 of those positions eliminated.

Kaler says if all employees leave as expected, the program will save the U of I about $25 million a year. She says the announcement was delayed by about a month because of the high number of applicants.

Categories: Economics, Education, Politics

AP - Illinois Public Media News - May 05, 2010

Austere City Budget Gets its First Showing before City Council

Champaign's City Council is reviewing the next fiscal year's budget and preparing for changes in service levels.

The proposed cuts include eliminating six vacant positions, and reducing public works crews and neighborhood services. City Manager Steve Carter says residents have likely not noticed the cuts so far, but that may not be the case next year. "I think we've done a good job in our reductions so far that I don't think people so far have noticed much of a difference," Carter said. "But I think with this next round of reductions, they'll be starting to see some of that. You know, in each area there's just a little bit of a fall off in terms of the level of service we're providing."

The budget, presented by Carter and Champaign city finance director Richard Schnuer at a study session after Tuesday's city council meeting, includes two-point-five million dollars in spending cuts. These cuts are less than half of the six million dollars cut from last year's budget.

The budget cuts are necessary in part because the city is not expecting any increase in sales or income taxes. Sales tax alone is the largest source of revenue for the city, making up 31% of total revenue, followed by property tax at 24%.

The council will work with the City Manager's office to review the budget in detail this month. A vote to adopt the budget will be in June.


AP - Illinois Public Media News - May 04, 2010

UI Trustees Don’t Show for IL Senator’s Tuition Hearing

A state senator who hopes to take the University of Illinois to task for its spending was forced to cancel a hearing on the subject after none of the school's trustees showed up.

Sen. Martin Sandoval says trustees are irresponsible for not attending his hearing in Springfield on Tuesday. Members of the board of trustees oversee the University of Illinois' three campuses.

The Chicago Democrat says trustees chairman Christopher Kennedy has asked to meet with him Thursday.

Sandoval last week said he wants to hold hearings on university spending and tuition increase.

Interim university President Stanley Ikenberry has said he will ask trustees to OK a 9.5 percent tuition increase for the next school year.


AP - Illinois Public Media News - May 04, 2010

Agencies Helping Women in Crisis Plan Merger after One Agency Faces Crisis of its Own

State funding problems have prompted two agencies that deal with Champaign County women in crisis to consider consolidating.

A Woman's Fund shelters victims of domestic violence and their children. In July, it and the foundation that funds it expect to be acquired by The Center for Women in Transition, which helps homeless women and children. Last fall A Woman's Fund was almost forced to close when state government payments were backlogged.

But now the group's human resources director, Tara Bossert, says it will be part of a more financially-stable agency, and the merger should be a good fit.

"The services that we provide and the services that the Center for Women in Transition provide are different, yet a lot of our clients overlap and a lot of those clients utilize both services," Bossert said. "So as far as the ease of using those services, we'll just become a better situation for a lot of our clients."

John Sullivan, who directs the Center for Women in Transition, says both agencies serve slightly different purposes, so a consolidation should not lead to job losses.

"The whole goal is to maintain services and make sure domestic violence services remain in our community," said Sullivan. "The staff that are providing those services at the moment, of course we want to keep them on. There may be savings in terms of administration. On the other hand, since we're adding more services, we're going to have to expand our administration."

Still, Sullivan says social service providers in general will see tough times over the next couple of years. He says merger discussions have taken place for about six months, since A Woman's Fund was threatened with the closure.


AP - Illinois Public Media News - May 04, 2010

Flash Index Tempers Signs of Local Economic Recovery

A monthly gauge of the Illinois economy has backtracked after four months of improvement.

The University of Illinois Flash Index uses state tax revenue figures each month to measure economic performance. For April, the index was set at 91, down .08 from the month before. The index was still far from the 100 level that separates economic growth from contraction. It's also fallen back to its lowest level since last November, though it's still above the September figure that marked the low point of the current recession.

The index's author, U of I economist Fred Giertz, says Illinois's unemployment rate still hasn't followed signs of a national economic recovery. But he also thinks the April index may have been affected by an abnormal drop in the state's corporate tax intake in March, saying that might be a result of timing rather than a true drop.


AP - Illinois Public Media News - May 04, 2010

Champaign Budget Reflects Hard Times but No Layoffs

The city of Champaign isn't planning any major construction projects or improvements in the next budget year - but it doesn't plan any layoffs either.

However, the city still expects revenue to fall about $3.5 million short of needs, so it's cut about two and a half million dollars from the proposal for fiscal year 2011. That's not as deep as the six million dollars cut last year, but Champaign finance director Richard Schnuer says none of those cuts are being restored either.

"It's been a difficult year for us as well as for people in the community who are suffering the impacts," Schnuer said. "We've sure tried to continue to provide the services that contribute to the high quality of life in the city. And we hope that we did make those choices -- if not, we're happy to hear from people."

The proposed cuts in the $67 million general fund budget mainly involve jobs that won't be filled once current employees retire or leave.

The Champaign city council gets its first formal look at the budget Tuesday night - it'll also be available at the city building and the Champaign Public library.

Categories: Economics, Government, Politics

AP - Illinois Public Media News - May 03, 2010

Quinn Proposes Limiting Property Taxes through Local “Taxpayer Action Boards

Gov. Pat Quinn is proposing legislation that he says would offer tax relief to millions of Illinois property owners.

Quinn plans to present the Homeowner's Property Tax Relief Initiative of 2010 to the General Assembly this week.

The legislation would create a Taxpayer Action Board modeled after the statewide utility watchdog that Quinn helped start in the 1980s.

Quinn says the taxpayer board would be independent and nonpartisan. It would help property owners appeal their tax bills and assessments.

The legislation also looks to make it easier for property owners to get information about the assessment process, including comparable sales statistics.

The proposal would also extend a provision that reduces homeowners' taxable value by $20,000.

Categories: Economics, Government, Politics

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