Illinois bicentennial flag on the bottom

By John Ruberry

Illinois will have one of the most-closely watched gubernatorial contests this year. Republican incumbent Bruce Rauner has been a tremendous disappointment to me and just about every conservative voter I know. I enthusiastically backed the then-political newcomer in 2014, but this time around, as I explained here at Da Tech Guy, I’m supporting Rauner’s Republican challenger, state representative Jeanne Ives in the March primary election.

Ives is attacking Rauner, and to be fair, the Dems are too. Rauner has much to answer for. Actually he has little to answer for–as Rauner has not accomplished much of anything. For her part Ives is promoting common sense reforms that only public-sector union bosses and their enablers oppose, such as amending the state constitution so pension benefits can be changed, that is, so payment increases can be lowered, and having new state employees enroll in 401(k) plans.

Meanwhile Democrats are battling scapegoats, used here in the classical sense, that is, using something else to accept the sins of a people.

Deals with the Democrats’ state worker wing, the public-sector unions, that some Republican governors signed off on–but not Rauner–have burdened the Prairie State with $250 billion in pension debt. Retiring at 50 with full benefits is nice–except for chumps like me who have to pay for it. Illinois’ current budget is $36 billion and a whopping one-quarter of it goes to government worker pension payments. Illinois has suffered from the worst credit rating among the states for years, currently that rating is just one level above junk.

Illinoisans are responding sensibly and predictably–for four straight years Illinois has had negative population growth.

There is little to celebrate during Illinois’ bicentennial year.

Two candidates on the Democratic side are getting most of the attention from the media and presumably it’s a race between them, as there is currently no polling data on gubernatorial race. Billionaire investor JB Pritzker, a scion of the family that own the Hyatt Hotel chain, has collected the lion’s share of endorsements from prominent Democrats and the party’s union allies. He the only Democratic candidate regularly running ads on radio, television, and on the internet. The other prominent contender is Chris Kennedy, the son of Robert F. Kennedy who used to run Chicago’s Merchandise Mart.

Neither have much to say about Illinois’ long-running fiscal crisis and solutions for it, other than “taxing the rich.” But they don’t even talk much about that.

Pritzker on the left protesting Trump

Pritzker’s web advertisements are a daily presence on my Facebook and Pandora pages–in these Pritzker almost always attacks Donald Trump, as he does for instance in this YouTube ad. Trump has not visited Illinois since he was elected president.  Last year, in front of Chicago’s Trump Tower, Pritzker released his five-point plant to resist the president. And when the inevitable spring tornado tears through Illinois bringing death and destruction, who will Governor Pritzker call for help?

Since Trump has been monopolized as a scapegoat by Pritzker, Kennedy is left with smaller prey. One of his targets is a worthy one, at least for scorn. That one is Cook County Assessor Joseph Berrios, who is also the chairman of the Cook County Regular Democratic Organization, better known as the Chicago Machine.  Pritzker owns a mansion on Chicago’s Gold Coast. He purchased a smaller mansion that sits next to his. The billionaire didn’t maintain it–and then he successfully appealed his property tax assessment with Berrios’ office because the other mansion was “vacant and uninhabitable,” saving Pritzker a bundle of cash. Berrios has been under attack by the Chicago Tribune for his assessing practices, which the Chicago Tribune says favors the rich over the poor. Kennedy is calling for Berrios to resign as assessor, but the tiny yet powerful law firm where the longtime state House Speaker and state Democratic Party chairman, Michael Madigan, is a partner was hired to lower the property taxes of a company owned by Kennedy’s Merchandise Mart.

Oops.

Last week Kennedy moved  on to another unpopular target, Chicago’s embattled mayor, Rahm Emanuel.

“I believe that black people are being pushed out of Chicago intentionally by a strategy that involves disinvestment in communities being implemented by the city administration,” Kennedy said at a press conference held in a predominately African-American neighborhood on Chicago’s West Side. “I believe Rahm Emanuel is the head of the city administration and therefore needs to be held responsible for those outcomes,” he added.

Phrased succinctly, Rahm, according to Kennedy, is driving blacks out of Chicago.

Oops again.

For a variety of reasons, including most notably high crime and execrable unionized schools, in sheer numbers and by percentage, the black population of many large cities, including New York, Los Angeles, Atlanta, and even Detroit has been falling, as I stated in my own blog when I reported on this story. Kennedy’s claim is tin-foil hat stuff.

Blogger at Chicago’s Trump Tower

And what does Trump and Emanuel have to do with Illinois’ pension debacle? Nothing with the former and a just a little bit in regards to the latter, since Rahm, a longtime prominent Illinois Democrat, was silent about the festering fiscal disease that is devouring ILL-inois. As for Berrios, I’ll place the party boss somewhere in the middle.

But the role of scapegoats, using the term in the modern sense, is to defer attention away from larger problems. And Kennedy and Pritzker don’t have solutions–or if they do they don’t care to share them with voters.

Boss Michael Madigan’s use of “Illinois math” to kick the pension problem down the road isn’t an option anymore. Illinois has reached the cliff.

John Ruberry, a fifth-generation Illinois resident, regularly blogs at Marathon Pundit.

Jeanne Ives

By John Ruberry

At my own blog and here at Da Tech Guy, I enthusiastically backed the candidacy of Bruce Rauner, the current Republican governor of Illinois.

Count me as an ex-supporter. I’ll be voting for state Rep. Jeanne Ives (R-Wheaton) in next spring’s primary.

Rauner was a political newcomer when he narrowly defeated unpopular incumbent governor Pat Quinn three years ago. He became the first gubernatorial candidate in the Land of Lincoln to win a majority of the vote–albeit a very small one–since Rod Blagojevich’s first victory in 2002.

Rauner’s campaign slogans were “Bring Back Illinois” and “Shake Up Springfield.” He hasn’t done either which is why, in its upcoming cover story, National Review is calling Rauner “the worst Republican governor in America.”

After Quinn’s own narrow win in 2010, he and House Speaker Michael Madigan (D-Chicago), by far the most powerful politician in Illinois,  ramrodded through the General Assembly what was called a temporary income tax increase, which would expire shortly after the 2014 gubernatorial election. At that point, after Quinn’s presumed next win, the tax increase would be voted on again and made permanent.

But fed-up Prairie State voters, most of whom are corralled into gerrymandered legislative districts created by Madigan, who is also the chairman of the state Democratic Party, have no other way to fight back except at the top of the ticket every four years. They chose Rauner to stop the bleeding.

In his previous career Rauner was a venture capitalist. When he took over a company he could fire the CEO. He can’t do that with Madigan. So what followed was a game of chicken. Rauner, as part of his Turnaround Agenda, supported such common sense reforms as term limits for legislators, later changed to term limits for legislative leaders, which was clearly aimed at Madigan, who has been speaker of the House for an unprecedented 32 of the last 34 years. It’s Madigan who Reuters calls “the man behind the fiscal fiasco in Illinois.”

Other Turnaround Agenda items included tort and pension reform–Illinois has one of the worst-funded public pension systems in America–a ban on public sector unions contributing to state political campaigns, an option for local governments to enact right-to-work laws, as well as a two year property tax freeze.

Rauner said he was not averse to an income tax increase–but in exchange for his support of a tax hike he wanted his Agenda Turnaround agenda passed.

For thirty months the game of chicken continued, and that included an unprecedented two years without a budget. Illinois’ pile of unpaid bills tripled, reaching a level of over $16 billion. In the end Boss Madigan won. Overriding Rauner’s veto and some Republican legislative defections–who provided cover for Democrats in unsafe seats to vote “No,” Madigan’s 32 percent income tax hike became law.

Rauner and the GOP didn’t see a single part of the Turnaround Agenda included in that tax hike. Its passage was a colossal failure for the Republicans and long-suffering Illinois taxpayers.

And Rauner has been a colossal failure too. Yet he’s still running for reelection. In his video announcement Rauner dons a leather jacket and rides a Harley-Davidson motorcycle, which is ironic as southeastern Wisconsin, which is where Harley-Davidson is based, has been a direct beneficiary of Illinois’ decline.

The failures of Rauner don’t end with Madigan winning the tax increase war. Breaking a promise he made Cardinal Blase J. Cupich of Chicago, Rauner, who is pro-choice, signed into law a bill that keeps abortion legal in the state even if the US Supreme Court overturns the Roe vs. Wade decision. The bill also allows Medicaid funding of abortion as well as funding of abortions for state employees. And Rauner also signed into law a bill, weeks before California did, making Illinois a sanctuary state.

Ives, who is Rauner’s only declared Republican opponent, voted against both bills when they were up for vote in the House.

Last week the governor drove home the gist of his own failures when he said of Illinois, “I’m not in charge.” Who is? Madigan, because he has “rigged the system,” Rauner says. Is that true? Probably. But Rauner has had three years to unrig it. That’s why voters hired him.

What expectation do we have that Rauner can unrig it in a second term?

In her campaigns announcement Ives said that she wants to “realign public sector salaries and benefits to be commensurate with their private sector counterparts who finance it all.” Specifically she favors 401(k) plans for new state hires. Ives, a West Point graduate and a mother of five, also backs property tax reform and in an acknowledgement to one of President Trump’s campaign themes, vows to fight for the “forgotten people in Illinois” Of which there are plenty, including me.

In that campaign introduction Ives refers to the governor as “Benedict Rauner.” While I don’t view Rauner as purposely traitorous to the voters who supported him, he has been a spectacular disappointment as governor. I apologize to anybody who took my advice and voted for him.

Rauner says he is “not in charge” of Illinois yet he still wants four additional years of not being in charge. Who in their right mind can get behind that? Rauner says “it’s time to finish the job.” But he hasn’t even started it yet. Imagine Rauner as a homebuilder and three years after hiring him all that he has to show for his efforts is an unkempt pile of bricks paid for with money borrowed from you.

That’s Illinois, which leads the nation in negative net-migration. Its bond rating is the lowest ever for a state.

John Ruberry regularly blogs at Marathon Pundit.

Daniel Webster School, a CPS school on the West Side

By John Ruberry

On Friday a friend of this very blogger forwarded a Chicago Tribune Breaking News Alert to me: Chicago Public Schools enrollment drops by nearly 10,000 students. And the year before CPS enrollment slid by 11,000.

There are 371,382 students taking classes in CPS schools  In 2002 there 438,589 kids running the halls, with some of them learning something.

So, taxes for schools will go down, right?

Not in the Prairie State, the home of “Illinois Math,” where two plus two equals five.

For a while, that is.

CPS is expected to raise property taxes soon–a state bill that will likely pass to pass gives them that power–by $120 million to pay for, wait for it, teacher pensions. That’s on top of $100 million in a tax jump already sanctioned

“Building a New Chicago” at Dunne School on the South Side, where your blogger attended kindergarten

The sad tale of the Chicago Teachers Pensions Fund [CTPF] goes back to 1981 when the Chicago Board of Education agreed to pick up most of the teachers’ obligation to pay into their pension plans. Out of sight–out of mind. Yes, Chicago Teachers Union, I’m looking at you! In 1995 a lost weekend of retirement funding began–it lasted ten years–and all of that money that was supposed to go to pensions instead went towards teacher salaries and nuts-and-bolts school expenses. Oh, don’t forget to throw in a calorie-loaded Chicago-style pizza buffet line of cronyism, giveaways, and malfeasance into this toxic dish.

Illinois still hasn’t completely recovered from the Great Recession–government corruption and incompetence, in my opinion, are the sole reasons for that–so naturally a partial CTPF “pension holiday” was declared from 2011-13 and the can was kicked down the potholed road again.

Chicago Public Schools bonds are rated as junk.

Two years ago Chicago property owners had to swallow the largest property tax hike in the city’s history to help shore up police and firefighter pension funds, which are even more underfunded than the teachers’ pensions. And last week Chicago’s embattled mayor, Rahm Emanuel, released his 2018 budget proposal, which of course includes tax increases. When asked if more tax hikes were coming, Emanuel dodged the question.

Chicago is the only large American city with a shrinking population.

As bad as Chicago’s financial situation is, the reality is probably far worse because Illinois Math is very likely disguising the wretched truth.

Decline and fall.

Blogger in downtown Chicago

Here is some more Illinois Math for you: The free-market Illinois Policy Institute says, “There are now more inactive employees and beneficiaries in CTPF than there are active workers paying into the pension fund.”

Someday there will be a new Illinois Math equation. Two plus two won’t equal five–it will equal just one.

John Ruberry regularly blogs at Marathon Pundit.

Lake Michigan at Evanston, IL. Is Puerto Rico’s present Illinois’ future?

By John Ruberry

If you believe that states–and commonwealths–cannot declare bankruptcy, you are technically correct. But last week a commonwealth, Puerto Rico, filed for bankruptcy in all but name, utilizing the Puerto Rico Oversight, Management, and Economic Stability Act, which President Barack Obama signed into law in 2016.

That bill of course was written for Puerto Rico in mind, but with Republicans in control of all levels of the federal government, similar bills can be proposed for the fifty states, or just some of them, including California, New Jersey, Connecticut, and Illinois. Those three are among the states that have fallen victim to what New York City Mayor Michael Bloomberg dubbed the “labor-electoral complex” in his farewell address four years ago.

What’s that? It’s when public-sector unions, consisting of workers on the taxpayer payroll, cajole politicians–almost always Democratic ones–to increase their salaries or defer their pay hikes by way of generous yet unaffordable pension plans.

And of course these pols are cajoled by these unions through campaign contributions.

Puerto Rican flag flies between two abandoned Chicago homes

Many local government workers don’t pay into social security and many of them have no other pension plans. In states like Illinois, if you work for the state government, funds deducted for your retirement only go to one place–an Illinois retirement plan. So far so good–unless the politicians neglect to properly fund those pension programs.

And that has been the sad case in those blue states I mentioned earlier, as well as Kentucky.

Now that Puerto Rico has declared, well, something, investors will very likely take a closer look at sinking cash into what may be sinking ships. Puerto Rico has negative population growth. So does Illinois. That means fewer taxpayers are participating in funding these failures. And it’s the productive citizens who are leaving Illinois and Puerto Rico.

Yesterday Puerto Rico announced it was closing 184 schools and there is speculation that commonwealth retirees may suffer a 20 percent cut in their pensions. Expect much more bad news from there.

John “Lee” Ruberry of Da Tech Guy’s Magnificent Seven

It doesn’t have to end up this way in states like Illinois–if corrective action is taken immediately. Let me define “immediately” for those politicians who may be reading this post.

Immediately means 2017, not ten years from now.

Ten years ago the financial situation in Puerto Rico wasn’t as dire.

John Ruberry regularly blogs at Marathon Pundit.

Chicago’s South Side

By John Ruberry

I’ve been saying that Chicago will be the next Detroit for years, and on Thursday, syndicated talk radio show host–and former Tea Party congressman–Joe Walsh, was making the same prediction on his program.

Walsh was discussing a just-released pension study which the Chicago Sun-Times reported on.

Standard & Poor’s surveyed pension obligations in New York, Los Angeles, Chicago, Philadelphia, San Francisco, San Diego, San Jose, San Antonio, Phoenix, Jacksonville, Dallas, Houston, Columbus, Indianapolis and Austin.

Chicago performed the worst across the board — registering the highest annual debt, pension post-employment benefits costs as a percentage of governmental expenditures and the highest debt and pension liability per capita.

And there is more:

The report noted that the “median weighted pension funded ratio of 70 percent” for the 15 cities “underlies a wide range of positions with Chicago only 23 percent funded across all plans and Indianapolis the most well-funded at 98 percent.”

Chicago’s pension burden is $12,400 per person–more than double that of New York City and it has the lowest bond rating of those 15 surveyed cities. The S&P report says that in 2015 Chicago “only made 52 percent of its annual legally required pension contribution.”

If you are looking for more bad news you came to the right place. More than five times as many people live in New York and Los Angeles combined–but there were more murders in Chicago last year than the total in both of those cities. As for Chicago’s population, it’s at a 100-year-low. Leading the exodus are middle class blacks.

CPS school on the West Side that closed in 2013

Chicago’s jobs program for people with education degrees, better known as Chicago Public Schools, has been cited by other middle class ex-Chicagoans, including your humble blogger, for decades as the main reason they abandoned the city. CPS bonds are rated as junk. Lack of money may lead to the last thirteen days of the school year being cancelled–and the CTU may add a fourteenth with a one-day strike in May to protest that early shutdown. Yep, I don’t get it either.

CPS officials have been battling the union for years to force teachers to pay more into their own pension funds. Yeah, they can afford it–of teachers in the largest school districts, CPS teachers rank in the top three in pay. But hey, the union members probably are thinking, “Why should we pay more when we have so many taxpayers who can foot the bill?”

But that’s the mindset that got Chicago into its mess. Oh that, and public-sector unions contributing heavily into the campaign funds of Democratic politicians.

Critics of my Chicago-is-the-next-Detroit hypothesis point out that large corporations have been moving their corporate headquarters into Chicago of late, the most prominent examples are ConAgra relocating its HQ from Omaha to Chicago and McDonald’s, which will move back to the city after four decades in suburbia. But no one can say how many of these corporate big shots will live in Chicago.

Two years ago Chicagoans were slugged with the largest property tax increase in the city’s history to pay for, yes, unfunded pension liabilities. Last year Chicago water and sewer taxes were hiked. Remember what what I wrote earlier, Chicago’s pensions are only 23-percent funded. Does anyone think that there aren’t additional massive tax increases in Chicago’s future? And when the producing segment of Chicago is even more depleted–chased out, that is–how will Chicago pay for street repair, schools, and snow removal–as well as adequate police and fire protection?

The Illinois Supreme Court recently ruled that public-worker pensions cannot be reduced.

Blogger in downtown Chicago

Here’s what I base my Chicago dystopia projection on. Defenders of the status quo place blind faith into their hope that Chicago can somehow hang on until enough pensioners die, which probably won’t be until the middle of the century. They offer no credible solutions. Nothing. They’re as delusional as Gerald O’Hara meticulously counting out his Confederate bonds in Gone With The Wind–“All we have left”–after General Robert E. Lee surrendered.

There’s a way out–changing state law so municipalities and government agencies can declare bankruptcy, which is something Bruce Rauner, Illinois’ reform governor, favors. But the Democrats and the public-sector unions will never agree to that.

John Ruberry, who moved from Chicago to the suburbs in 1999, regularly blogs at Marathon Pundit.

Chicago’s Grant Park, where Obama gave his victory speech

By John Ruberry

On the Sunday after the 9/11 attacks, Jeremiah Wright, then Obama’s pastor, bellowed, “God d–n America” and “America’s chickens are coming home to roost” from the pulpit of his Chicago church.

Two nights from now President Barack Obama will give his farewell address in Chicago, his adopted hometown. The Hawaii-born 44th president moved to Chicago a year after graduating from college where he worked, with at best mixed success, as a community organizer on the Far South Side. It’s an area still beset by violence and poverty with no hope of a turnaround thirty years after Obama left that post so he could attend Harvard law school.

Ayers and Dohrn Chicago home

It was in 1996 Chicago where Obama launched his political career. One of his first campaign stops–perhaps his first–was at the home of his friends, unrepentant Weather Underground terrorists Bill Ayers and Bernardine Dohrn. Eight years later another Chicagoan, state Senate President Emil Jones Jr, put Obama’s name on some key bills that bolstered his liberal credentials. Obama scored a surprise win in the Democratic US Senate primary, and after the Republican nominee imploded, he easily won in the general election.

You know the rest of the story.

However, Obama was not a slam-dunk in the 2008 presidential election against John McCain–what we now call the Great Recession sealed the deal–and America elected its first black president.

Chicago is still recovering from the ’08 economic collapse. Of the nation’s 35-largest cities, Chicago has the largest percentage of underwater home mortgages.Two years ago Chicago enacted its largest property tax hike in history, the impetus for it was to pay for underfunded municipal pension funds. What does this have to do with Obama? Chicago hasn’t had a Republican mayor since 1931, Obama is the most hyper-partisan president in memory. Along the White House ride for Obama was Valerie Jarrett, his senior advisor and “Berlin Wall,” the former slumlord was a deputy chief of staff for Chicago Mayor Richard M. Daley. It’s Daley, not his successor, former Obama White House chief of staff Rahm Emanuel, who bears the responsibility for the Chicago pension debacle. But Chicago’s generous municipal pensions are political payback for public-sector unions, who’ve been an arm of the Democratic Party in all but name for decades.

Obama has always been very cozy government labor unions. 

Two years ago–under Emanuel’s watch–Moody’s downgraded Chicago’s bonds, and those of Chicago Public Schools and the Chicago Park District to junk. Other rating services haven’t followed suit yet, but they absolutely don’t view Chicago favorably.

Chicago’s population is at it lowest level in 100 years.

Chicagoans pay the nation’s highest sales tax rate.

Chickens.

Last year at least 762 people were murdered in Chicago–an appalling 57 percent increase over the year before. Chicago suffered more killings than New York City and Los Angeles–combined. One of the reasons cited for the soaring murder rate was Rahm Emanuel’s inept handling of the shooting of unarmed black teen Laquan McDonald–with sixteen bullets–by a white cop, all of which has compelled Chicago Police officers to use less aggressive law enforcement tactics. Chicago is a hotbed for Black Lives Matter activists. The outgoing president has been supportive of this radical group, which deems racist the statement All Lives Matter.

Near where the Facebook attack occurred

That leads to last week’s racist atrocity in Chicago, the torturing of a white special needs man–thirty minutes of which was streamed live on Facebook–by four blacks in the East Garfield Park neighborhood on the West Side. The victim was bound, gagged, beaten, slashed, forced to drink toilet water, and coerced to say “F–k Donald Trump” and “F–k white people.”

Two months earlier in another West Side neighborhood a white man was pulled from his car and brutally beaten by four blacks. That attack was captured on video, the assailants screamed, “You voted Trump” and “Beat his a–.” While the victim was indeed a Trump voter–yes, there are a few in Illinois besides me–he told authorities that there was no way the thugs could have known that. There was no Trump bumper sticker on his car–he was white and that was enough provocation for these creeps.

Obama’s chickens–and those of Chicago Democrats–have come home to roost.

Our collectivist president has practiced identity politics for his entire adult life. which for the most part means race politics. Us versus them. And as a collectivist Obama has appointed himself as the savior to put the pieces back together.

Chicago’s Northwest Side

But breaking things is much easier than putting them back together.

Some final thoughts.

As a public service I am recommending that if you are planning to attend Chicago’s McCormick Place address, please use public transportation. I’ve been fortunate enough to visit 45 of our 50 states. With the exception of Detroit, the worst-maintained streets and roads I’ve encountered are in Chicago. And while you’re driving around potholes and crevices, please beware of Chicago’s ubiquitous red light and speeding cameras. An astounding 1.9 million traffic camera tickets were issued between 2010 and 2015. Chicago has 2.7 million or so residents. Most of those tickets were written while Emanuel was mayor.

The former administrator of Chicago’s traffic camera program is serving a ten-year prison sentence for accepting bribes.

Someone needs to come up with a misery index for big cities like Chicago, which should include such items as corruption, low high school graduation rates, unfunded pension obligations, red light cameras, crumbling infrastructure, population loss, taxes, and yes of course, crime.

John “Lee” Ruberry

Perhaps Austan Goolsbee, Obama’s amiable pal who is an economics professor at the University of Chicago, can absolve himself of leftism and get to work on this much-needed project.

Thank God I left Chicago for the suburbs nearly two decades ago.

And Obama, at least for now, won’t live in Chicago after he moves out of White House next week. He’ll probably only return to visit his presidential library.

John Ruberry is a fifth-generation Chicago area resident who writes the Marathon Pundit blog. The Chicago Convention and Tourism Board had no input in composing this blog entry.

Who could have seen this coming:

Last week American Apparel, the biggest clothing maker in Los Angeles, said it might outsource the making of some garments to another manufacturer in the U.S., and wiped out about 500 local jobs. The company still employs about 4,000 workers in Southern California.

and it’s not just the big manufacturers who are getting hit

Felix Seo has been making clothes for wholesale in downtown for 30 years. His company, Joompy, used to count giant retailers like Forever 21 among its clients. But as prices have gone up in recent years, he said, those fast-fashion peddlers are no longer giving him orders.

“I used to pay $5 to get this sewn, and now it costs $6.50,” Seo said, holding up a patterned dress. “But my customer doesn’t want to pay that, so I can’t sell it anymore.”

To survive, Seo, 59, said Joompy may have to start importing goods instead of producing them locally. “It will be impossible to make clothes in Los Angeles,” he said.

The Unions of course are saying it’s all greed

“It’s always, ‘Oh woe is me, If I pay minimum wage at this rate I can’t turn a profit,'” said Nativo Lopez, a senior adviser with Hermandad Mexicana, which is helping American Apparel workers unionize.

Of course that would be more believable if the Unions didn’t get exemptions from the minimum wage:

Martinez, a 53-year-old bellhop, has hauled tourists’ luggage across the flagstone plaza of the Sheraton Universal in Studio City for two decades. He said he was excited after the council’s vote to raise the minimum hourly wage at large hotels to $15.37, which he expected to boost his paycheck by 71%.

He soon found out he wouldn’t be getting a raise after all. Under an obscure provision of the city’s wage hike, unionized hotels were granted an exemption allowing them to pay their employees less. The result is that Martinez, who pays $56.50 every month for membership in the hotel workers union Unite Here, now makes less than those doing the same job in non-union workplaces.

“That’s what really makes me mad,” Martinez said. “I just wanted to be treated equal. Don’t exempt us, because we’re the ones paying union dues.”

I’m old enough to remember when Unions didn’t fight for the right to treat their members as 2nd class citizens.

But either way the working poor in LA are discovering that the real minimum wage is always zero.

I wonder if anyone will mention this to Hillary or Bernie?

*******************************************************************

Speaking of minimum wages, the minimum wage for this job is zero unless you choose to hit DaTipJar




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CTU NATO Shirt
CTU member at 2012 Occupy rally

By John Ruberry

Whether it’s Occupy Wall Street, Black Lives Matter or a teachers union, leftist protesters who block streets and disrupt private businesses claim they are the spiritual descendants of Martin Luther King and the 1960s Civil Rights movement. Many of the members of these groups–and there is some overlap–wish they had been a part of the Civil Rights movement so it’s understandable that they try to connect their causes with the legacy MLK.

When I complained on Twitter earlier this month about a February 3 Chicago Teachers Union rally–which they almost certainly didn’t bother applying a permit for–ruining an evening rush hour in downtown Chicago by blocking streets, a Twitter leftist of course defended in a reply to my Tweet that protest was a natural outgrowth of King’s use of civil disobedience in the 1960s and earlier.

I replied that these 21st century civil disobedience demonstrations are different because unlike blacks sitting at all-white lunch counters and Rosa Parks refusing to surrender her bus seat to a white man in 1955 as a protest against Jim Crow laws, CTU members, as well as Black Lives Matter and the Occupy activists, can vote provided they are old enough and they are United States citizens and, in some states, not convicted felons. The civil rights marchers in Selma, Alabama didn’t have a permit in 1965; had they applied for one of course it would have been denied by the racist government authorities. And the blacks who lived in Selma then, despite the passage of the Civil Rights Act the year before, faced enormous obstacles if they wanted the register to vote. And before then, they couldn’t even do that.

“Throwing the bums out” via the ballot box wasn’t on option.

The Rosa Parks bus
The Rosa Parks bus

Sixteen CTU protesters were arrested during that protest. They were sitting on the floor and chanting inside of a Bank of America branch, they earned the union’s ire by loaning money at a high rate to the insolvent Chicago Public Schools. The chanters were trespassing and they deserved getting busted.

Not only can these teachers can vote, but they have lobbyists in Illinois’ state capital promoting their interests. And they have a political action committee.

One more thing, Chicago Teachers Union: Stop ruining rush hours. Unlike free speech, there is no constitutional right to block traffic. You’re teachers–you should know that.

John Ruberry regularly blogs at Marathon Pundit.

Abandoned Detroit high school
Abandoned Detroit high school

By John Ruberry

Last week five public schools in Detroit were closed due to sick-outs, that is, these for-the-kids educators called in sick when they weren’t, likely by the direction of the Detroit Federation of Teachers.

This is a strike in everything but name, and teacher strikes are illegal in Michigan. And no one it seems, except for Detroit News reporter Ingrid Jacques, to be angry about these phone-in walk outs. Why aren’t the parents up in arms?

Detroit Public Schools, a nest of malfeasance for decades, are currently being run by a state emergency manager. Next month DPS faces a balloon debt millstone–after which its debt obligations may exceed its benefits and payroll expenses. Bankruptcy may be coming soon to DPS.

You can cancel the “Detroit is Back!” party, although President Obama will be in the Motor City for North American International Auto Show and will undoubtedly hail the resurgence of Detroit.

Monday, according the Guardian, the teacher sick-out may spread to forty schools.

Will the “sick” teachers be punished? Will their union be cited for organizing an illegal strike? Will Detroit parents finally get angry? The parents should already be angry because for the fourth straight year Detroit’s elementary schools ranked last in reading and math scores among big cities.

Pick your cliché: Do you prefer “rearranging deck chairs on the Titanic?” Or is it “Fiddling while Rome burns?”

Let me conclude about Detroit’s so-called resurgence since the city emerged from bankruptcy in 2014. Yes, there are construction and rehab projects under way, mostly downtown, in Midtown, and in New Center. Yes, some hipsters have moved into those areas as well as Corktown. But eventually some of them will start families. The prospect of sending their children to a DPS school–along with the burden of a municipal income tax, will likely send those hipsters packing.

UPDATE January 11: 58 schools are closed today because of the latest sick-out.

John Ruberry regularly blogs at Marathon Pundit.

Illinois signBy John Ruberry

It’s been four months since Illinois operated with a budget.

But the story goes back a year when Land of Lincoln voters tossed out Democratic incumbent Pat Quinn, Rod Blagojevich’s two-time running mate, and chose Republican businessman Bruce Rauner to, as his proclaimed in his campaign slogans, “Bring back Illinois” and “Shake up Springfield.” Rauner has certainly achieved the latter.

But the Chicago Democrats who run the gerrymandered-empowered General Assembly, House speaker Michael Madigan and Senate president John Cullerton, had a trap awaiting Rauner when he arrived in Illinois’ capital city. No, it wasn’t the dilapidated governor’s mansion, but a fiscal 2015 budget that assumed the supermajority of Democrats would make permanent a 2011 “temporary” tax increase pushed through in a lame duck session by Quinn. Yet Rauner and the General Assembly resolved that shortfall that spring, but the two sides are deadlocked over the fiscal 2016 budget.

Meanwhile Illinois lowest credit rating of the 50 states and the worst-funded state pension system. These millstones predate Rauner’s election.

For the first time in three decades Illinois is losing population.

Rauner signWho is willing to compromise? Well, Rauner is. Although he campaigned against a tax hike, Rauner says he will sign a budget that includes one–as long as it the General Assembly agrees to changes to the state’s expensive-to-employers workers’ compensation laws, tort reform, term limits, and taking the decennial legislative redistricting powers out of the hand of the General Assembly. The Democrats oppose all of these items, well, except the tax increase. It is they who are the stubborn ones.

Amazingly, Illinois government continues to function, sort of, as ninety percent of state funding continues, although the state’s backlog of unpaid bills, which also predates Rauner’s inauguration, is growing. But it is business-as-usual for most Illinoisans, including myself, as I no longer have a child in the public school system. Even if I did. I probably notice anything different. However, my license plates are up for renewal, and I won’t receive a reminder in the mail to purchase a new annual sticker because of the budget standoff.

Meanwhile, Saul Alinsky-style demonization attacks on Rauner are stepping up. On Friday Karen Lewis, the hardened leftist who is the president of the Chicago Teachers Union, called Rauner a sociopath in a speech while Madigan and Cullerton mutely sat in the audience.

Rauner has been governor for just nine months. Illinois’ fiscal failings go back nearly thirty years.

Slow and steady wins the race.

John Ruberry, a fifth-generation Illinois resident, regularly blogs at Marathon Pundit.