Karen Lewis: Chuy Garcia should be next mayor of Chicago
Karen Lewis, president of the Chicago Teachers Union, considered running for mayor of Chicago.
The day of reckoning for Chicago's pension problem is coming. Let's be clear, however—it was years of the city's nonpayment to the Chicago Teachers' Pension Fund and structured underpayment to police and fire departments that created the current crisis. The city did not make any efforts during more flush times to address the issue, even though it was crystal clear that future challenges would result. In the case of the CTPF, it was the Illinois Legislature and Mayor Richard M. Daley that eliminated the fund's dedicated property tax line in 1995.
While Republican Sen. Mark Kirk is stumping for Chicago Mayor Rahm Emanuel by imprudently comparing our city to Detroit, Chicago can take a different route to stability by closing corporate loopholes, taking legal action against banks engaged in predatory financial deals and raising taxes on the wealthy. The only solution is a sufficient, dedicated funding stream that can't be diverted to operations.
Unfortunately, Emanuel has sided with his Republican brethren and big banks in virtually every instance during his four years in office and now is working overtime to limit the liability of banks. Our city is ready for a leader who will defend us against the rapacious interests of the banks. Jesus “Chuy” Garcia is that leader.
Emanuel has continued the policies of his predecessor: privatization of public assets like parking meters, the attempt to privatize Midway Airport, scoop-and-toss bonding and intensification of regressive fines and fees.
Garcia has proposed major tax increment financing changes and supports a graduated state income tax. If Garcia takes on the banks, we're already much further ahead. The key is to move toward straightforward decisions that can't be gamed by financial institutions.
Take on the banks. By taking legal action against banks that have engaged in toxic swaps and taken advantage of an economic crisis of their own creation, Chicago could recover all of the money paid to these banks, as well as any future payments or termination penalties. This would be worth up to $800 million, which includes estimated net payments of $534 million from the city and $237 million from CPS on the swap deals through last August.
The city has engaged in these complex financing deals with hidden costs and hidden risks Karen Lewis: Chuy Garcia should be next mayor of Chicago - Opinion - Crain's Chicago Business:
