Adding to Illinois’ Debacle

This billboard is in my River North neighborhood in Chicago. It is an advertisement for a mall and entertainment location in Rosemont, a small city near O’Hare airport.

Rosemont was profiled by the Chicago Tribune in this excellent article. A single family has run Rosemont for generations, and they benefit from a levy on taxi rides from O’Hare and spend this money on no-bid contracts for friends, family and politicians as well as large entertainment complexes underwritten by large amounts of debt.

The suburb is digging itself deeper into debt to subsidize a new bar district, professional softball stadium and outlet mall. With $370 million in taxpayer-backed loans outstanding, Rosemont has one of the top debt loads in the Chicago region.

Another Chicago suburb, Bridgeview, hosts a stadium for the Chicago Fire, a major-league soccer team. Their debacle is chronicled here, in a typically great Bloomberg article.

The mayor of Bridgeview, Illinois, said building a taxpayer-financed arena for the billionaire owner of Major League Soccer’s Chicago Fire would bring hotels and restaurants to his suburb. Instead, the town has more than doubled property taxes and may raise them again to pay more than $200 million in stadium debt.

One of the big problems in Illinois is that we have so many various overlapping public bodies, many with the ability to issue debt and all of whom have expensive board members, employees, and often public contracts doled out to associated cronies. This article, from the “Illinois Policy” web site, describes the myriad overlapping public entities in the State of Illinois and how we dwarf ALL states and especially neighboring (and much better managed) states like Indiana.

Illinoisans suffer from the second-highest property tax rates in the nation.

Their state is the third most corrupt in the nation.

And driving this expensive and corrupt reality on the local level is the fact that Illinois has more units of local government than any other state in the nation. With 6,963 units of local government, Illinois beats its nearest competitor by more than 1,800.

When Illinois finally hits the wall, and we won’t be able to issue new debt (and thus an immediate fiscal crisis will occur), we will have to have a reckoning with all of these various entities, each of whom has their own debt problems and the ability to create NEW problems by issuing MORE debt. On one hand, the market will constrain their ability to sell debt by the fact that these insolvent entities survive through the “implied” promise that they will be bailed out by some higher power, whether that is a county, state, or Federal government.

The act of unwinding all of the problems of the inter-related corrupt and insolvent entities will be a herculean task, made even more difficult by the fact that there will be little incentive for the politicians to solve the crisis if the end result is that they won’t have these same public entities for no-bid contracts, jobs for themselves, and their campaign workers and donors once the clean-up is complete.
The only thing for certain is that the lawyers in the state will feast at the trough of lawsuits from all parties. They just need to make sure that they find a way to get paid themselves on a timely basis…

Cross posted at LITGM

NY Times Admits Illinois Gerrymandering

The NY Times today had an article called “Don’t Blame the Maps” which discusses the fact that, even though the Democrats won the popular vote, the Republicans still won the majority of votes in the House of Representatives. For most Democrats, this majority is viewed as an artifact of Republican gerrymandering, and the article points out that this isn’t true. As someone who lives in Illinois, a state that works hard to saddle the Republicans with no voice in their one-party rule, it is nice to see that “ensuring my vote doesn’t count” is mentioned, even in passing.

But keep in mind that Democrats play this came as well. For example, by artfully dividing up Chicago into pie-sliced districts extending from Lake Michigan into the suburbs, the Illinois Democrats have done better for themselves than the outcome of our nonpartisan solutions.

Here is a post I wrote about the fifth district of Illinois, my district, and a contender for the most Gerrymandered district in the entire country. And our representative, a man so lax in his duties that he couldn’t even be bothered to vote to impeach Blagojevich.

Cross posted at LITGM

Apparently Illinois Vote Rigging Doesn’t Count… and a Glimmer of Hope From California

Recently I wrote about how the district I live in is perhaps the most gerrymandered district in the entire country.  Great pains have been taken by the Democrats that run Illinois to ensure that my vote can’t count and the legislator that runs our state district doesn’t even have to bother courting voters like me.  Even among Illinois legislators (not exactly the highest quality bunch) my guy is famous for not even voting to impeach Blago.  Literally we have the worst of the worst representing us, but he is effectively immortal since all he has to do is win the Democratic party primary and he’s in, due to basic mathematics and party-line voting.

While I know writing posts like this is just like shouting into a toilet Rolling Stone recently came out with an article about Red State gerrymandering.  While my district in the article above was in the state legislature, our Illinois US House of Representatives balance has been similarly adjusted to ensure that a 50/50 or so state leans completely blue.  Of course the entire article acts as if this is a Republican phenomenon, when in fact both parties are equal opportunists at this sad game.

There is a shred of hopefulness in all of this in some electoral advancements coming out of California, of all places.  They have a system where the two top vote getters in the primary battle it out on election day, even if they are from the same party.  In this sort of system, the Democrat or Republican that reaches out to the constituents in the middle from the other party has a shot at beating a stone ideologue that will generally cruise through the party primary (like my state representative).  This solution was “California Proposition 14“.  In parallel, they also have a citizen’s commission to draw districts so that they make more sense rather than be amazing gerrymander constructions.  It is too soon to tell if California’s results will help that much but it seems like a step in the right direction.

Cross posted at LITGM

Illinois and the Perfect Democrat

I live in the River North district of Chicago, a vibrant area full of professionals, high rise buildings, and a large service economy.  We are adjacent to the Loop (and many of the people who live here chose this area so that they could walk to work) which employs many of these residents in an internationally competitive group of companies, both public and privately held.

In my interactions with these residents, few are political, and I would say that most Illinois citizens I’ve met over the year could be considered middle-of-the-road. However, due to factors unique to the state of Illinois, the state is dominated by Democrats who control most of the levers of power at the state, city, county and local levels. As such, a state of mostly moderate individuals is set up, governed, and managed as if it was the most left-leaning state in the country.

Ken Dunkin is our Illinois State representative for the 5th District, and he helpfully sent me this brochure that outlines his goals and accomplishments as a state legislator. This update provides a great window into the mindset of an Illinois Democrat.

Ken Dunkin is famous for being the only Illinois legislator to skip Gov Rod Blagojevich’s impeachment hearing, and thus being a de-facto loyalist to the bitter end. It is really hard to add anything more to that sort of fact; even his fellow Democrats finally came to the conclusion that Blago had to go, but not Ken.

Read more

Illinois Will End up Like Detroit if It Does Not Change Course

Detroit was once the greatest city of the modern world. Automobiles were the cutting edge of technology in the first half of the twentieth century. Talent and genius flocked to Detroit. Innovators in engineering, technology, design, finance, marketing, and management created a concentration of economic dynamism and creativity unlike anything the world had yet seen. Detroit was the Silicon Valley of its day, except its products were made of tangible metal, rubber, and glass. The auto industry transformed America into a land of mobility and personal freedom beyond the dreams of earlier generations. Henry Ford said, “History is bunk.” He meant the old limits could be blown away, and ordinary people could have a better life than they had ever dreamed of before.

(The rest is here.)