SAINT CCC 1 IGNATIUS COLLEGE PREP SIMUN XIV Saint Ignatius Model United Nations Chicago, IL – November 7th, 2015 Chicago City Council Topic Background Guide CCC 2 Dear Members of the Chicago City Council, My name is Christian B. Johns, and I will be serving as your chair for the Chicago City Council. I have served on the Saint Ignatius Model United Nations Executive Board since the fall of 2014, and participated on the team since freshman year. As a senior, I have seen a lot of different situations and crises in model un and I have loved every minute of it. I am sad to see that this will be my last year participating in high school model united nations. Being a senior, it naturally implies that I know everything and anything about model un. Let me be clear, I am still lost on one or a few of the procedures and motions that come up in committee. It is my hope that each and every one of you participate in committee and make the most of the session. I urge you to steer away from fear of speaking and know that I understand the feelings going through your mind. The City of Chicago and its problems are very complex, but it’s nothing that a determined alderman and some wind cannot handle. Be sure to research the topics, and your wards well, I expect a great day from each and every one of you. If you have any questions please do not hesitate to contact me at Christian.Johns@students.ignatius.org. Yours in Windy Diplomacy, Christian B. Johns Dear delegates, My name is Mackenzie Weatherly and I am the political officer for The Chicago City Council Committee. I am a sophomore at Saint Ignatius and I have participated on the Saint Ignatius Model UN team for the past year. During my freshman year I attended seven conferences and I went to Model UN camp over the summer. Though I have never been a political officer I have been an active delegate. I am looking forward to helping make this committee engaging and fun! I'm very excited to work with all of you and see how you react to a fast paced intensive Chicago Cabinet. Best of luck in your research, Mackenzie Weatherly Functions of the Committee CCC 3 The Chicago City Council, for obvious reasons, is not a typical body in the United Nations; therefore, there are some necessary adjustments. First of all, the mayor or chairman of the council will have a vote in the non-procedural matters in committee. This includes, but is not limited to, voting on resolutions (ordinances), amendments to said ordinances, and other motions. The voting reflects the important role that mayor has in the legislative and executive functions of the local government. In addition to voting, I will be introducing two mayoral sponsored ordinances that the council can debate and vote upon. Resolutions will be titled ordinances, press releases will be allowed, and committee directives will not be used. Lastly, aldermanic privilege is a legal and legitimate practice that may be used in the committee to assist the facilitation of crises and committee flow. Your actions in your ward can have an effect on what happens in the session. Topic One CCC 4 Funding Pension Liabilities The City of Chicago is in deep financial trouble and is struggling to find appropriate and efficient ways to solve its problems. At the root of the city’s problem are the pension funds that must be funded by the city. Pensions are what workers, after years of hard work and loyalty, live off of after they retire. When pensions were introduced, the government promised workers high levels of pay without major employee contribution and no solvent way to fund them. For the city, the pension bubble began in the 1960s and in 2015, is about to pop. Several politicians, including Mayor Rahm Emanuel, have defined this bubble as “kicking the can down the road,” or in literal sense, seeing the problem and leaving it for the next generation. The pension crisis has been on the horizon for quite a while, and has garnered more attention as the numbers continue to grow. The out of control numbers were identified in a 2010 report commissioned by then mayor Richard M. Daley. The report concludes that the four pension plans are “significantly underfunded,” which means that the funds do not have the assets to guarantee all the pensions promised by the city of Chicago. The document also warns that without action, the pension funds will be insolvent in under a decade. However, it does recommend that the only way to correct the pension funds is to increase contributions and reduce expenses. How do pensions work? Pensions are not as complex as one might conceive it to be, but they are creating enormous amounts of complexity as leaders attempt to solve the problem. When a new employee, for our purposes the employee will be named “Joe,” joins the city of Chicago, they are offered a pension or retirement plan to take care of them once they fulfill their duties to the city. Joe’s pension benefits will typically include: healthcare insurance, disability benefits, and an average pension of 41,400 USD. CCC 5 The benefits and payment amounts are wreaking havoc on the funds because they are severely underfunded. However, the city is not the only entity that must pay into the pension funds. Joe, the city worker, is mandated to contribute 8.5-9.125% into the pension fund that he belongs to. In addition to employee contribution, 12.28% of the taxpayer’s taxes goes to the pension funds. As baby boomers continue to retire, the burden on the taxpayers increases because current employee contribution and taxpayer funding levels are not enough to carry the city for longer than a decade. This requires higher contributions and more forms of revenue from the city so that a healthy level of funding is met. ‘Healthy’ is defined by the American Academy of Actuaries as 100%, but most other resources use 90% as a healthy percentage. When making decisions about the sources of revenue it is important to remember that Chicago faces a state mandated 550 million USD increase in pension funding due at the end of 2015, a 1 billion USD budget deficit for 2016, and a junk status rating on crucial bonds. The total amount for the city’s unfunded pension liabilities totals up to 29 billion USD. These painstaking numbers could send the city into bankruptcy as the only help in sight are the potential new revenue sources. Solutions The goal of this body is to create the new revenue sources that can help put a dent into the looming pension crisis. The situation urges creativity and an understanding of your respective ward and how it would affect your election prospects in 2019. Among the most talked about revenue ideas is an unpopular property tax hike, a Chicago income tax, progressive sales taxes, budget cuts, and a Chicago casino. A property tax hike is seen as the last resort to many, but others believe that it can be avoided. The hike will need to generate over 250 million USD or be raised 32% higher in order to be economically feasible. With an increase that large, the city could risk the loss of residents and businesses because of the high tax. In 2014, the city moved to increase property taxes because of the pension situation, and another hike so close together all but guarantees backlash from the citizens. CCC 6 An alternative to raising property taxes is a Chicago income tax, which is a main proponent of the progressive agenda. This new form of tax, which would require state legislative approval, has hopes to place the burden on the wealthy versus those who are paying taxes simply on the value of their home. Mayor Emanuel is not supportive of this tax, but likely will have to consider this an option as time continues to run out. Remember that the council’s options are limited because of several factors including the junk status rating (borrowing more will cost more), the Illinois General Assembly passing the Chicago Pension Payment Law, the legality of the earlier law passed by the IGA, and time. Lawmakers in Springfield are already dealing with their own pension crisis, but some see extending the deadline for payments as regressive. Keeping up with developments should help to determine what course of action the council should take. Mayor Emanuel submitted a plan to address some of the pension obligations the city has, but in late July, a judge struck down the pension plan. The city will bring the law to the Illinois Supreme Court, but many expect the law, which would save the city 846 million USD, to be ruled against. The rulings are a stark reminder that hard decisions must be made in order to maintain solvency. In your research, it is important that you are thorough and ensure that you remain in line with your ward and the caucus that you belong to. Bloc Positions The Progressive Caucus will be geared towards avoiding a property tax hike and ensuring that the most vulnerable Chicagoans are not carrying a large portion of the burden. Their agenda includes going against the nonprogressive policies of Mayor Rahm CCC 7 Emanuel. The Emanuel backed aldermen will be for whatever the mayor is in favor of, which includes a Chicago casino and a potential property tax hike. This bloc will be geared towards avoiding a property tax hike, but will do so if demanded by Emanuel. Questions to Consider 1. How would your constituents react to a property tax hike? 2. What alternatives are there to tax hikes, if there are any, are they feasible? 3. What changes could be enacted to prevent missed payments or misappropriations of funds? Helpful Resources The below link is to the Chicago Tribune’s election center. You will find a questionnaire on your alderman and their position during the February & April elections. http://elections.chicagotribune.com/candidates/ Just the Facts: Answers to Frequent City Pension Questions http://www.cityofchicago.org/city/en/depts/mayor/iframe/just_the_facts.html CCC 8 Topic Two Chicago Public Schools: Elected School Board Education has traditionally been a major point of debate in the United States, but in Chicago, it is held dear and is controversial. The governing body of the Chicago Public Schools is not elected, and has been deemed to be disconnected, corrupt, and most of all, the mayor’s puppets. Since a law passed by the Illinois General Assembly in 1995, the mayor has had the sole responsibility of appointing a school board. The State of Illinois did this in response to some turbulent years within the nation’s third largest school district. The Chicago Board of Education, like many other school boards across the nation, are responsible for the success of the students as well as their welfare. Naturally, this gives the school boards an immense of power over testing, curriculum, staff, and other essential components of an education system. In Chicago, the school board is highly politicized as it is responsible for the failures and triumphs of the school district. Due to the current configuration, the mayor is also directly responsible for the dozens of school closings, but also the rising graduation rates. Having control over the school district is typically beneficial for the mayor, but can have adverse effects on the general public. After, then mayor, Richard M. Daley appointed Paul Vallas as CEO and Gery Chico as president of the school board, the city’s schools saw major reforms. Prior to the reforms in 1995, the Secretary of Education, in 1987, called CPS the “worst in the nation.” Those reforms included holding back students who had low scores on standardized tests, placing poorly performing schools on probation, and changing the way schools are evaluated. Those reforms gained a lot of national attention and were responsible for propelling the board’s presidents and CEOs to high positions of power. The seemingly all powerful Chicago Board of Education is atypical CCC 9 compared to its suburban counterparts. The suburban and rural districts all have elected school boards, and now there is public outcry to have Chicago return to the pre-1995 elected school board. Mayor Emanuel is elected – 2011 The constituents of Chicago began to question the mayor and the ‘autonomy’ of the school board as the board functioned according to the mayor’s wishes. The fuel was added to the mix after the 2012 teacher’s strike which lasted for nine days. As the strike gained continuous national attention, Chicago Teacher’s Union president Karen Lewis began to target the mayor and his agenda. In November of 2013, the Progressive Caucus attempted to bring a resolution to the floor which would place a referendum on the 2015 election ballot. The issue revealed a divided legislature as it constantly battled with allowing the resolution to reach the city council. By October of 2014; however, the council voted to allow the non-binding referendum. The events during that year can be considered a pre cursor to what could happen in committee. 2015 Mayoral Election An elected school board became a major point in the 2015 election and the debates that took place between the mayoral candidates. Of the five candidates, four were in favor of voluntarily relinquishing their appointing power to the electorate, but the fifth, Mayor Emanuel, was not apt to changing the system. The debates brought on many legitimate questions for both sides of the spectrum. For those against changing the system, they feared that elections could leave some constituents out of the equation, subject the district to gerrymandering, or place candidates with special interests into office. The final reason could lead to several conflicts of interest and cause even further dissatisfaction with the school board. The critics of the current system make note of the mayor’s heavy involvement in the operations of the Chicago Public Schools, his 2011 appointments, and the 50 school closings in 2013. Many claim that the widely controversial closings would not have occurred had an elected school board been in place. CCC 10 Unsurprising to most, a non-binding referendum was placed on the 2015 election ballot in 37 wards across the city. Voters were asked if they thought that Chicago should have an elected school board. In each of the wards, over 88 percent responded with yes. The results revealed that the public believes that there should be some changes to the school board. Even after the contentious election, the Chicago Teacher’s Union staged a protest in mid-June to voice their grievances against the current school board. In addition to the school closings, the Chicago Board of Education came under more fire after the Federal Bureau of Investigation began an investigation on former Chicago Public Schools CEO Barbara Byrd Bennett. The federal agency was looking into a 20.5 million USD contract with Bennett’s former employer, SUPES. Bennett later resigned, but the controversy revealed conflicts of interest on the board. What should be done? The decision on how the Chicago Board of Education should be composed is mostly up to the Chicago City Council. It is important to note that the decision truly belongs to the Illinois General Assembly. The circumstances will be changed for the purposes of this committee in order to maintain clarity and continuity. The city council can change the composition of the council and include other changes to the way school board members are selected. Essentially, the people are concerned with the amount of power that one person has over the school system. Even minute changes such as term limits can drastically affect public opinion as well as local politics. Mayor Emanuel is taking steps to ensure that the Chicago Public Schools system remains operable. These steps are being taken while the district is facing a billion dollar budget deficit due to rising pension costs. Along with some staff reductions and cost cutting measures, in July of 2015, Mayor Emanuel appointed Forrest Claypool as the Chief Executive Officer and made CCC 11 some noteworthy leadership changes at CPS. The mayor’s ability to make such changes without public input is what is truly at stake. Bloc Positions The Progressive Caucus aldermen will be advocates for an elected school board as many of their elections were based on this issue. This topic is important to their agenda which means that they are unlikely to change their position. The Emanuel bloc, for obvious reasons, will not be in favor of changing the law that allows the mayor to appoint all the members of the Chicago Board of Education. However, some members might ignore the mayor’s agenda and follow the referendum results of their ward. Questions to Consider 1. What were your ward’s results from the 2015 non-binding referendum? 2. How would an elected school board negatively/positively affect your constituents? 3. What solutions could the city council consider in order to rein in the mayor’s power? Helpful Resources This is an article that will aid in your research and offers the advantages and disadvantages of both sides. http://depauliaonline.com/news/2015/02/22/appointed-vs-elected-school-boards-achicago-debate/ This is a map of the referendum results, in addition to that, the second link directs you to a video regarding the topic. https://www.google.com/maps/d/u/1/embed?mid=z2MNmjf37FeU.kxBFuOL44zOA&pli =1&authuser=1 http://chicagotonight.wttw.com/2015/02/25/education-roundup-cps-debt-elected-schoolboard-parcc-testing CCC 12 Positions The caucus names are whom you typically would caucus with. You can check your individual voting habits at the link below. Remember that the issues are highly contentious and based on voting decisions; therefore, there can be some major repercussions. Additionally, there are two ethnic based caucuses that typically remain united in certain votes. I encourage you to research the Black and Latino caucuses in the City Council. http://pols.uic.edu/docs/defaultsource/chicago_politics/city_council_voting_records/city-councilreport-7-january-2015.pdf?sfvrsn=2 Ward Name Caucus 1st Proco “Joe” Moreno Paul Douglas Alliance 2nd Brian Hopkins Emanuel 3rd Pat Dowell Paul Douglas Alliance 4th Will Burns Paul Douglas Alliance 5th Leslie Hairston Progressive 6th Roderick Sawyer Progressive 7th Gregory Mitchell Emanuel 8th Michelle Harris Emanuel 9th Anthony Beale Emanuel 10th Susan Sadlowski Garza Progressive 11th Patrick Daley Thompson Emanuel 12th George Cardenas Emanuel 13th Marty Quinn Emanuel 14th Edward Burke Emanuel 15th Raymond Lopez Emanuel 16th Toni Foulkes Progressive 17th David Moore Progressive 18th Derrick Curtis Emanuel CCC 13 19th Matthew O’Shea Emanuel 20th Willie Cochran Emanuel 21st Howard Brookins Jr. Emanuel 22nd Ricardo Munoz Progressive 23rd Michael Zalewski Emanuel 24th Michael Scott Jr. Emanuel 25th Daniel Solis Emanuel 26th Ricardo Maldonado Emanuel 27th Walter Burnett Jr. Emanuel 28th Jason Ervin Emanuel 29th Chris Taliaferro Progressive 30th Ariel Reboyras Emanuel 31st Milagros “Milly” Santiago Emanuel 32nd Scott Waguespack Progressive 33rd Deb Mell Emanuel 34th Carrie Austin Emanuel 35th Carlos Ramirez Rosa Progressive 36th Gilbert Villegas Emanuel 37th Emma Mitts Emanuel 38th Nicholas Spocato Progressive 39th Margaret Laurino Emanuel 40th Patrick O’Connor Emanuel 41st Anthony Napolitano Emanuel 42nd Brendan Reilly Paul Douglas Alliance 43rd Michele Smith Paul Douglas Alliance 44th Tom Tunney Emanuel 45th John Arena Progressive 46th James Cappleman Paul Douglas Alliance 47th Ameya Pawar Paul Douglas Alliance 48th Harry Osterman Paul Douglas Alliance CCC 14 49th Joe Moore Paul Douglas Alliance 50th Debra Silverstein Emanuel CCC 15 Works Cited “Byrne, John, and Hal Dardick. "Emanuel's Council Critics Could Grow Louder after Election Gains." Chicago Tribune. Tribune Publishing, 9 Apr. 2015. Web. 23 July 2015. “City Income Tax Should Be on the Table." Chicago. Sun Times Media, 20 July 2015. Web. 29 July 2015. “City of Chicago :: Just The Facts." City of Chicago :: Just The Facts. City of Chicago, 2014. Web. 25 June 2015. “Corfman, Thomas A. "Chicago City Council Coming to Grips with Big Tax Hike." Crain's Chicago Business. Crain's, 29 July 2015. Web. 30 July 2015. “Keefe, Alex. "Experts Say Chicago Has a Public Pension System Set up to Fail." WBEZ. Chicago Public Media, 8 Dec. 2013. Web. 22 June 2015. “Tests of Government Accountability." Deschooling Learning (2014): n. pag.Illinois Public Retirement Systems. Commission on Government Forecasting and Accounting, Jan. 2014. Web. 25 June 2015. “The Bottomless Pit." The Economist. The Economist Newspaper, 16 May 2015. Web. 22 June 2015. CCC 16