LIGHTFOOT'S BUDGET BONANZA — FLORIDA GOP courts OBERWEIS — PENCE’s pit stop Presented by Facebook

Good Thursday morning, Illinois! Lots of news came out of City Hall Wednesday, but the buzz in the elevators was about David Ross possibly (likely?) moving to the Cubs dugout.

TOP TALKER

Chicago Mayor Lori Lightfoot delivered a budget address Wednesday seeking to erase the city’s $838 million deficit and it — amazingly — doesn’t include a property tax increase.


There’s still a window open for that to happen if the mayor can’t persuade the state Legislature to approve a graduated real estate transfer tax and changes to the city’s casino tax rate.

“It’s a strong and creative first budget for a new mayor,” Civic Federation president Laurence Msall said.

The bonus: There’s a $300 million tax increment financing surplus — the largest in Chicago history. Lightfoot included $31.4 million of that in the budget, while the remaining $163 million will be funneled to Chicago Public Schools. Sun-Times’ Fran Spielman has details .

Phrase of the day: “Zero-based budgeting.” That’s the process Lightfoot used to come up with an additional $148.7 million. It means budgeting from ground zero instead of adjusting from the previous year’s budget. Lightfoot’s team didn’t immediately offer examples about how she got it.

But Ald. Scott Waguespack tells Playbook that city departments were asked a few months ago to look at their budgets. The Finance Committee staff that he heads, for example, found $1.4 million in savings.

All together, Lightfoot offered up a $11.65 billion spending plan that includes $200 million from debt-refinancing; $163 million by increasing the reimbursements the city receives for transporting low-income patients by ambulance; and $141 million through improved fiscal management (color us skeptical with this one).

Lightfoot wants to merge the Department of Innovation and Technology with the Department of Fleet and Facility Management (a $3.2 million savings) and eliminate jobs that are already vacant (a $19.7 million savings), which would avoid forced layoffs.

New revenues include $47 million from taxes on ride-hailing services and $20 million by raising fees on restaurant-prepared meals . “If you want to raise revenue you have to look at areas of the economy that are growing. Ride-sharing and restaurants are growth areas, so I don’t think these taxes will damage the industries,” Michael Belsky, executive director of the Center for Municipal Finance at the University of Chicago’s Harris School of Public Policy, told Playbook. He also endorsed "zero-based budgeting."

Lightfoot’s speech hit on her core passion for equity and inclusiveness and she stayed away from addressing downtown issues. Among the lines drawing applause: her plan to fast-track the time it takes new businesses to get approval for signs.

Some investments: $10 million to support affordable housing for homelessness; $9 million for violence prevention issues; and $9.3 million to help fund community centers that will address a broad range of issues associated with mental health. The latter makes it clear that the city has no plans to re-open mental-health clinics that were closed under the previous administration.

Great news for book lovers: Property tax bills will go up a hair to raise $18 million so Chicago Public Libraries can stay open seven days a week.

An emotional note: The mayor choked up and paused toward the end of her speech, which she delivered with the help of a teleprompter. “I am humbled every day that you have entrusted me with the stewardship of this great city we all call home.”

A numbers note: The mayor’s office would grow under the new budget — from 86 full-time employees in 2019 to 116 in 2020.

RELATED:

— Will Springfield help Chicago meet its budget? Aldermen wary, writes Crain's A.D. Quig: "Members of the City Council, who will have to vote on the mayor’s $11.65 billion budget proposal in the coming weeks, expressed cautious optimism [Wednesday] — mostly because of the prospect they would not have to raise property taxes again, nor other fees such as emergency services calls, garbage or water. ... But several aldermen say the sunny outlook could change if the city doesn’t get at least one of its two big asks out of Springfield: a change in how taxes on an eventual Chicago casino would be structured or the ability to hike the real estate transfer tax."

— Mayor increases homeless funding; critics say it’s not enough, by WBEZ’s Natalie Moore.

— Lightfoot’s budget shows difference between campaigning and harsh reality of governing: “‘We had an $838 million deficit. We’re not gonna be able to fund everything to the full amount that we would want to,’ the mayor told the Sun-Times on Wednesday,” via Fran Spielman.

— Chicago to raise cloud-computing tax: “A lease tax on cloud services such would rise to 7.25% from 5.25% under Mayor Lori Lightfoot's proposal,” writes Crain’s John Pletz.

THE BUZZ

Some Florida Republicans are nudging state Sen. Jim Oberweis to run for the congressional seat in the Sunshine state now held by Rep. Francis Rooney, who announced his retirement over the weekend.

Oberweis has a home in Florida, so while far-fetched, the idea isn’t totally impossible.

“There’s a push from Republicans in that district. All he’d have to do is move down there and he’d win,” Oberweis’ spokesman Travis Akin said.

But Oberweis is focused on the Republican nomination for Illinois’ 14th Congressional District, the seat now held by Democratic Rep. Lauren Underwood.

“Jim’s in good shape to win the primary,” said Akin, adding Oberweis sees Underwood as “a formidable candidate with a substantial war chest.”

That primary may not be a piece of cake either. Oberweis faces state Sen. Sue Rezin, futures trader Ted Gradel, human resources manager Daniel Malouf, former Kendall County GOP Chairman James Marter and newcomer Catalina Lauf.

In an interesting Florida twist, Oberweis will be at Maggiano’s in Oak Brook on Friday for a fundraiser with headliner Marco Rubio, the U.S. senator and former presidential candidate from FLORIDA. Invitation here

Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget for the Playbook? Get in touch: [email protected].





SPOTTED

Vice President Mike Pence was in Waukegan on Wednesday, visiting the Uline packaging materials company founded by GOP donors Richard and Elizabeth Uihlein. Pence spoke at the event about the proposed U.S.-Mexico-Canada Agreement — aka NAFTA 2.0.

The VP was supposed to have visited Michigan's Upper Peninsula earlier in the day, but instead flew to Washington to stand by President Donald Trump for his statement on Syria where he lifted sanctions the U.S. imposed on Turkey just last week.

Spotted at the Waukegan gathering: GOP Senate candidate Mark Curran and state Sen. Jim Oberweis (25th).

CHICAGO TEACHERS STRIKE

— Classes are canceled Thursday, the sixth day Chicago Public School children have been out of school.

— Lightfoot: We won’t bail out CPS or pay for everything union wants: “After thousands of striking workers rallied outside City Hall Wednesday, a resolute mayor said the district had to live within its means,” by Sun-Times’ Lauren FitzPatrick and Nader Issa.

— Chalkbeat: 5 big issues in contract dispute — and where negotiations stand.

— Union says progress made on ‘about 80’ individual issues, but not top 5 priorities. The Chicago Teachers Union also is conducting civil disobedience training for members Thursday, according to a Tribune recap. CTU VP Stacy Davis Gates said such tactics can be necessary “to have a voice in this country.”

— Bus aides, custodians and special ed assistants say they still struggle to make ends meet, by Tribune’s Paige Fry.

RELATED:

West suburban school district averts teachers strike: “The Addison Teachers’ Association in west suburban Addison came to a tentative agreement with a district school board after weeks of a stalemate. The teachers union had filed an intent-to-strike notice with the Illinois Educational Labor Relations Board that would have allowed union members to walk out as early as Thursday, but school board and union leaders released a joint statement late in the evening that they have agreed on a contract,” by Tribune’s Madeline Buckley.

WHERE'S LORI

At Friend Family Health Center to announce “expanded mental healthcare access and equity across Chicago.”

At Revel Fulton Market in the evening to attend La Casa Norte’s gala.

Where's Toni

Presiding over the Cook County Commission meeting.

CHICAGO

— Lightfoot defends police chief Eddie Johnson’s tenure as he faces investigation: “In a meeting with the Chicago Tribune editorial board on Wednesday, Lightfoot said Johnson is not leaving ‘any time soon’ and expressed ‘a lot of confidence in the superintendent,’” by Tribune’s Gregory Pratt.

— CTA: No fare hikes, service cuts for 2020, but ridership still falling: “CTA riders will be spared fare hikes and service cuts for a second year in a row in 2020, and will see some new rail cars and buses, along with track and station improvements. The CTA on Thursday proposed a $1.57 billion operating budget for next year, an $18.4 million increase over last year’s budget, due to increased costs for labor and security, the agency said.” Tribune Transportation reporter Mary Wisniewski reports.

— Obamas heading to Chicago for their foundation summit Tuesday: “Michelle Obama and her brother, Craig Robinson, will be interviewed by Pulitzer Prize-winning journalist and author Isabel Wilkerson. The former president will sit in conversation with actress Yara Shahidi,” writes the Tribune’s Lolly Bowean.

— REMEMBERING RECORD ROW: The Chess Records offices at 2120 S. Michigan, immortalized in the title of a Rolling Stones song, are now home to the Blues Heaven Foundation. The label was based here from 1956 till 1965, by Aaron Cohen in Chicago Reader.

— Margie’s Candies building adding a Cards Against Humanity Board Game Cafe, a restaurant with an escape room basement in Logan Square, by Tribune’s Louisa Chu.

COOK COUNTY AND COLLARS

— Sheriff’s Office stepping up enforcement of distracted driving laws across county: “The numbers are absolutely staggering, as far as when you look at what the cellphone world has done to the driving world,” Sheriff Tom Dart said. By Sun-Times’ Sam Charles.

— Housing hearing heats up over criminal history questions in tenant applications: “It’s the latest in a long-give-and-take between the housing providers and advocates trying to help people with criminal histories rejoin society. But the long delays in hammering out the are doing nothing to calm tensions or tempers,” by Sun-Times’ Rachel Hinton.

— Spurned casino sues Waukegan, says city used false information to deny bid: “Potawatomi Casino is suing the city of Waukegan over the city council's decision to reject its bid to build a casino at the shuttered Fountain Square shopping center. The city council last week sent three of four casino proposals to state regulators for further consideration, leaving out Potawatomi's bid, which promised the most jobs but offered the lowest purchase price for the city-owned site,” by Daily Herald’s Doug Graham.

— Ex-Posen mayor’s death on day of criminal sentencing ruled suicide, by Daily Southtown’s Zak Koeske.





THE STATEWIDES

— Economic report by Pritzker’s budget office pushes ‘fair tax’ as solution to state’s woes: “The Governor’s Office of Management and Budget report concluded there are ‘few alternatives’ if the ‘Fair Tax’ amendment isn’t enacted, including a 15% cut to essential services,” writes Sun-Times’ Tina Sfondeles.

— Bill backlog could hit $19B by 2025 without changes: "The state’s bill backlog will soar to $19 billion in five years if additional tax revenue isn’t found, the Pritzker administration said Wednesday. That would mean the estimated bill backlog would more than triple from $5.9 billion, the amount it is projected to be at when the current fiscal year ends June 30," writes State Journal-Register's Doug Finke.

— Advocates say Clean Energy Jobs Act can't wait until next year: "Four Central Illinois coal plants and a southern Illinois coal mine are slated to close by year’s end. Environmental advocates say the Clean Energy Jobs Act would create new programs to help workers and communities impacted by the coal facility closures. And they say movement on the legislation is needed now," Peoria Public Radio's Tim Shelley reports.

— Pritzker 8th most unpopular governor in the country, poll says: “No surprise the disapproval comes from Republicans, who watched the political newcomer rush in a bevy of progressive measures,” writes Sun-Times’ Tina Sfondeles.

— For Illinois hemp farmers, the crop's first year was rough: "Illinois farmers bet big on hemp this season, the first in which it was legal to grow the crop. But growing hemp — a cousin of the marijuana plant known for its use in foods, fibers and the wildly popular CBD products — proved risky,” Tribune's Ally Marotti reports. “Farmers had to learn on the fly about a crop that hadn’t been grown in Illinois soil for generations, and many with successful harvests are struggling to find a market for it."

DAY IN COURT

North Shore couple sues Manafort banker for alleged $1.4M home refinance fraud: “A Winnetka couple filed a federal fraud lawsuit Monday against Federal Savings Bank and its founder, Stephen Calk, alleging he pushed through their high-interest $1.4 million home mortgage refinancing, only to renege on a promise to refinance the loan at a lower interest rate. Theresa and Joseph Boutross are seeking more than $500,000 in damages and to have the 7.875% loan voided after being “induced” into the transaction by Calk, whom the couple considered a trusted friend, according the lawsuit,” writes Tribune’s Robert Channick.

DELEGATION

Sen. Dick Durbin was on MSNBC saying GOP leaders are having second thoughts about President Trump.

NATION

— ‘This is a danger zone’: Trump faces an existential test with evangelicals, by POLITICO’s Gabby Orr

— Senate Republicans duck for cover after explosive Taylor testimony, by POLITICO’s Burgess Everett

— Democrats torch Zuckerberg for 5 hours, by POLITICO’s Zachary Warmbrodt and Cristiano Lima

EYE ON 2020

— Conservative seeks Shimkus’ congressional seat: Mary Miller, a conservative Republican, has announced her run for Congress in the state’s 15th Congressional District. Rep. John Shimkus is retiring. Miller is involved in agriculture, small business, education, church and family, and “is running to stand up for the future of the American Dream,” she said in a release. “I stand with President Trump on immigration. Everyone agrees that legal immigration has been, and will continue to be, an important part of what makes us a great country. But we cannot continue to allow people to sneak in illegally. We need to secure our border, build the wall, and reform our immigration system.” Via Effingham Daily News

— Dem Plainfield village trustee to run for state rep seat: “Harry Benton, a Plainfield village trustee and union iron worker announced his candidacy for a state representative seat in the 97th District,” writes Alex Ortiz of the Daily Herald. Benton is running for the seat now represented by Republican Mark Batinick.

EVENTS

Tonight: State Reps. Kelly Cassidy and David Welter will be feted at a fundraiser at the Peckish Pig in Rogers Park. Details here

HAPPY BIRTHDAY

State Rep. Mike Murphy (99th).

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