At the behest of a bankruptcy judge, Hostess Brands got a short reprieve from liquidation in the form of one final meeting between management and union officials. But with the mediation failing and no more meetings scheduled, the company’s 18,500 workers (about 1,400 of them in Illinois) are almost certain to lose their jobs. A...
Families in Illinois are struggling to afford higher education for their children. Incoming undergraduate students have seen tuition and mandatory fees at Illinois’ public universities increase by more than 60 percent since 2004. But that’s not the only problem. The government expects families to pick up the education bill for state employees, too. The Upward Mobility Program, available...
If Illinoisans want a glimpse of the state’s upcoming fiscal cliff, they should look no further than the failed negotiations between the maker of Twinkies and the unions that took them on. Hostess Brand’s bankruptcy is much more than the demise of famous brands like Twinkies, Ho Hos and Wonder Bread. It’s also the tragedy...
For the third time in the last five years, the General Assembly Retirement System (GARS) has posted a negative investment return. Although the pension fund predicted it would earn $4 million in fiscal year 2012, it actually lost $81,448. The fund posted an investment return of -0.14 percent, far below the 7 percent it expected....
Illinois’ pension systems are one year closer to complete insolvency. According to actuarial reports, the state’s five public pension systems owe a combined $94.6 billion. That’s up 14 percent from the $82.9 billion reported last year. Worse yet, none of the pension systems have enough assets on hand to pay benefits to those who have...
When unions can’t work with employers in the private sector, companies go under. Hostess Brands Inc. is the most recent case in point, announcing that it will close its doors because of financial insolvency. Hostess has filed for bankruptcy twice since 2004, most recently this January. The company has an annual revenue of $2 billion,...
Chicago Public Schools cannot erase its $1 billion budget deficit alone – it’s going to need some help. Chicago Mayor Rahm Emanuel and the school board know the situation is dire. This is why they have proposed closing 120 schools next year, a move that could save $500,000 to $800,000 per school closed. But, to...
As Illinois moves closer and closer to the fiscal cliff, the next story to watch is the outcome of three days of workplace protests planned by the American Federation of State County and Municipal Employees Leadership Council 31. The protests are directed at the state of Illinois and Gov. Pat Quinn, and are expected to...
Does the government have any business taxing foods it deems unhealthy? That was the status quo in Denmark until recently, when the country got rid of its controversial fat tax. This nanny-state policy, originally put in place about a year ago, increased taxes on all foods with a saturated fat content of above 2.3 percent. Authorities...
Many local voters didn’t realize it, but residents of Westmont, Ill., made history during last week’s election. By a vote of 51.5 percent to 48.5 percent, Westmont became the first Illinois community to repeal a municipality’s home rule power in 29 years. The last repeal happened in Rockford in 1983. Westmont automatically became a home rule...
Taxes are about to go up again on many items for Cook County residents under the county’s 2013 budget. The Cook County Board of Commissioners approved a $2.95 billion budget for fiscal year 2013 by a landslide 16-1 vote last week. The budget includes a series of new revenue initiatives– a $1 per pack tax...
THE PROBLEM Only 27 percent of teens in Illinois had jobs last year – the lowest Illinois teen employment rate in the 42 years this data has been collected. The figures were worst for African American teens in Chicago, where only 10 percent had jobs. As the graphic shows, the Great Recession clobbered teens with...
The problem Only 27 percent of teens in Illinois had jobs last year – the lowest Illinois teen employment rate in the 42 years this data has been collected. The figures were worst for African American teens in Chicago, where only 10 percent had jobs. As the graphic shows, the Great Recession clobbered teens with...
Uber – the maker of a popular smartphone application that allows you to summon a black car, taxi, or SUV with the push of a button – is under fire from regulators and the taxi lobby in Chicago, as new rules proposed by the commissioner of the City’s Department of Business of Affairs would make...