Tag Archives: Illinois

Tradeoff between making a stricter energy code for new homes and higher costs for buyers

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While there is growing interest in more energy efficient homes, this doesn’t come without an upfront cost. This is illustrated by the debate in Illinois about how much new energy standards might add to the costs of new homes:

A new statewide building energy code that takes effect Jan. 1 strives to make homes more comfortable and residential energy bills less costly by making the building’s “envelope” tighter. The adoption of a substantial amount of the International Energy Conservation Code for homes puts Illinois at the forefront of such efforts among states.

But the updates to the building energy code, required by state law every three years, have not been without controversy. While proponents say the changes will increase the cost of a new home from $958 to $1,775 in Illinois, or about $1,500 in the Chicago area, detractors of the new rules peg that Chicago-area cost increase at $4,600, a sum they say will price some first-time buyers out of the market…

The changes won’t be obvious, and even the code’s proponents agree the upgrades in energy efficiency won’t be as easy to market to consumers as, say, granite countertops and crown molding.

They include upgraded insulation in attics and basements, more energy-efficient windows, upgraded bathroom vent fans, the use of some high-efficiency lights, insulated hot water lines to kitchens and air sealing around furnaces…

Supporters of the changes say consumers living in a Chicago-area home of 2,400 square feet with a basement should save an estimated $350 a year on their energy costs, compared with the current building regulations.

If these estimates about savings each year are correct, these code changes would be worthwhile over the the full lifetime of a home. However, how many homebuyers take this long perspective? In a mobile country, how many would be willing to pay upfront for costs from which they may not personally benefit?

This seems like the classic dilemma about a number of green products in the United States: will people pay upfront for savings down the road? It will be interesting to see how builders try to sell these code upgrades , massage the price points of home to account for these new costs, and also try to appeal to greener buyers overall.

State Budget Crisis Task Force: big debt trouble in Illinois

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Even if politicians in Illinois don’t talk about this much, outsiders such as the State Budget Crisis Task Force are noticing the debt trouble in Illinois:

For years, Illinois has racked up billions in public debt to plug budget holes, pay overdue bills, and put money into its mismanaged pension funds. And for the people who live there, this has resulted in decrepit commuter trains and buses, thousands of unsound bridges, 200 hazardous dams and one of the most inequitable public school systems in America…

The group, led by the former Federal Reserve chairman, Paul A. Volcker, and the former New York lieutenant governor, Richard Ravitch, recommended an overhaul of Illinois’ budgeting practices, to make it harder to kite money from year to year and raid special-purpose funds. It also warned that tax increases may be in store…

Illinois has the lowest credit rating of the 50 states and has America’s second-biggest public debt per capita, $9,624, including state and local borrowing. Only New York State’s debt is bigger, at $13,840 per capita. But Illinois has not been able to use much of the borrowed money to keep its roads, bridges and schools in good working order, because years of shoddy fiscal practices have taken a heavy toll, the report said…

While many states have heavy debt burdens and unfunded pensions, the task force warned that Illinois’ problems had been building for decades and were advanced. The state was “insolvent” even before the financial crisis hit in 2008, the report said, but that was hard to detect because “budget gimmicks became a standard practice.”

Not exactly a rosy outlook.

This could relate to the discussion at the national level about how the federal government doesn’t have to balance its budget while other levels of government do. Well, states and other government bodies can still mess up the process even if they are “balancing the budget.”

Oddity of Illinois Home Rule allows municipalities to get into a lot of debt

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The Chicago Tribune has an interesting piece of how the Illinois oddity of granting Home Rule powers to municipalities starting in 1970 can lead to overborrowing:

The state used to cap how much towns could borrow on the backs of taxpayers. Even for loans under the cap, the state forced cities and villages to put many “general obligation” borrowing deals before voters. The intent was to protect taxpayers from massive debt.

But local officials complained they needed easier ways to borrow. Chicago’s first Mayor Richard Daley led the charge for municipalities to set their own rules. The result was the 1970 Illinois Constitution and a concept that transformed how the city and suburbs are governed: home rule.

It has let towns borrow as much as they want, and raise many taxes, all without direct voter input. Any town with at least 25,000 residents gets the power. Smaller towns can vote it in via a referendum measure…

The vast majority of states — including all of the largest ones — do not offer municipalities such blank checks.

Ken Small of the Florida League of Cities said he would worry if his state had Illinois’ loose rules.

Read on for details on how several Chicago suburbs have accumulated massive amounts of debt.

I don’t think I’ve ever seen any municipal leaders denounce or reject Home Rule powers. Indeed, they tend to accentuate the positive sides of the powers as they allow municipalities more local control and the ability to finance projects on their own rather than having to rely on outside funding. And this would seem to fit with what many suburban residents tend to want as well: more local control, meaning that “big government” doesn’t control everything.

But, as this article suggests, local government officials aren’t necessarily any better at handling financing and borrowing. I was struck by reading this piece and an earlier one featuring the plight of Bridgeview, Illinois that a number of these borrowing situations arose when smaller communities wanted to jumpstart economic development. Struggling to do things on their own, they borrowed lots of money for retail, residential, and entertainment projects intended to bring in more tax dollars through property and sales taxes. A number of these projects didn’t pan out, possibly because of unrealistic hopes and also because the economic crisis made it difficult even for established and more financially stable communities to pursue larger developments. The lesson here? Perhaps slow and steady really is better here as big change for small communities is difficult to attain.

Another issue: the article suggests Chicago led the way to get the 1970 legislative act passed. Were some communities opposed to this or did they get behind Chicago as this could also benefit them?

After Illinois toll hike: traffic barely down, revenue up 44%

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The Illinois Tollway released some new figures of what happened to traffic and revenue after the January 1, 2012 toll hike:

Many drivers vowed to stop using the tollway and avoid paying an extra 35 or 45 cents for each I-PASS transaction — and double the tolls for cash-payers.

Through June, the number of passenger vehicle transactions on the tollway system fell 2.6 percent compared with the same period in 2011, tollway finance chief Michael Colsch said…

Based on estimates from the tollway’s traffic consultant, officials originally forecast a 5.9 percent decline in transactions because of the toll hike.

Toll revenue also is running higher than estimates, increasing about 44 percent through June, compared with a projected 41 percent for 2012, Colsch said.

Even though a number of people seemed really upset over this toll hike, this is what I suspected would happen: the tollways are convenient and paying a little more would not deter many drivers. There are few alternatives that are as fast and I also suspect using the IPass to pay the tolls removes some of the price shock (similar to how consumers will spend more by credit card than by using cash). Indeed, it would be interesting to know what the tolls would have to rise to before driving patterns would change dramatically. Additionally, there have been conversations in recent years about congestion pricing express lanes and I wonder if this small drop in traffic is a sign that these would be worth pursuing.

Of course, one could ask whether the Tollway is raising enough money to fund their stated goals and if the money will be used wisely…

Illinois State Toll Highway Authority thinking of changing how new interchanges are funded

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If you were ever curious how new interchanges on Illinois toll roads are funded (and I am), you can find out here as the Illinois State Toll Highway Authority (ISTHA) thinks of changing its regulations:

The agency traditionally funds half the costs of interchanges, but it may provide more money if it appears revenues will exceed 50 percent of projections or if communities indicate that the location is near a major regional road or truck route.

Other considerations would be if towns can offer right-of-way land or agree to finance the project and be reimbursed by the tollway.

Another proposal would be a “corridor approach.” This could mean when a new interchange is built with tolls that are higher than other nearby ones, the agency may evaluate and increase those adjacent rates…

Some other revisions include stipulations that all future requests for interchanges must come from government agencies and requiring more financial information and payback schedules.

I had no idea this is how things work but I am not surprised. Having studied the early years of some of the Illinois toll roads, particularly I-294, I-88, and I-90, it is remarkable to me how few full interchanges were built originally. For example, I-88 only had a few full interchanges, meaning that motorists could get on or off the tollway going any direction, between the Cook County line and Aurora. Since then, things have changed as the population further west of Chicago has increased. These changes included a new full Winfield Road interchange in the 1990s (which helped spur the growth of the Cantera property which has become quite important to Warrenville), an added full interchange at Route 59 (originally it only had two ramps), and a new interchange at Eola Road to help handle the growth in the Aurora area. Of course, not all of the interchanges have been improved: exits like Route 53 are still limited. Additionally, if you drive on other toll roads like the Indiana, Ohio, and Pennsylvania Toll Roads/Turnpikes, the exits are quite infrequent as it would cost a lot more money to build interchanges where the population may not support it.

Illinois has the third highest rate of foreclosures in the US

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New data shows that Illinois has the third highest rate of foreclosures in the country

Almost 7.5 percent of all one-to-four-unit mortgage loans in Illinois were in foreclosure in the first quarter, compared with a national average of 4.39 percent, according to data released Wednesday by the Mortgage Bankers Association.

“Illinois and New Jersey trail only Florida as being the worst in the country, and they’re getting worse,” said Jay Brinkmann, the association’s chief economist “The rate in Illinois more than twice that of California. In the judicial states the problem continues to get worse in terms of the backlog of loans in the foreclosure process.”

Added Michael Fratantoni, the association’s vice president of research and economics, “This is not a case that loans are entering foreclosure at a greater extent than in nonjudicial (states.) It’s that they’re staying in foreclosure longer.”

Illinois is not alone, according to the trade group’s quarterly national delinquency survey. In judicial states, the percent of loans in the foreclosure process reached an all-time high of 6.9 percent during the first quarter. That compares with a rate of 2.8 percent in non-judicial states, the lowest since early 2009.

The larger story about foreclosures in recent years has tended to focus on certain Sunbelt places like Florida, Las Vegas, and California so it is interesting to hear that Illinois has one of the highest rates – even if this is due to the particulars about how foreclosures are dealt with in the courts.

Based on this, could one argue that places like Las Vegas, said to be hard-hit by foreclosures, actually will be able to move past foreclosures more easily because of quicker court procedures? Speaking broadly, is it better for a state’s economic health and for its citizens for foreclosures to move more quickly in the courts even if this has some negative shorter-term effects? What is the proper trade-off between helping current residents and clearing bad mortgages off the books?

Gearing up for a “quick-take” approach to the land for the Illiana Expressway

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The Illiana Expressway has been talked about for decades but now it looks like the government is determining how to acquire the land:

Compounding the fear for the couple and hundreds of others who live along or near the 47-mile corridor is legislation pending in the Illinois House that would give the state controversial “quick-take” power to acquire land for the project.

Quick-take allows local governments to act fast in seizing land for public projects, skipping the possibly lengthy legal proceedings under eminent domain condemnation.

Anxiety levels are sky-high among many farmers and homeowners who could be affected by the expressway that would connect Illinois and Indiana. Public meetings have been standing room only. Property owners in Lake County, Ind., and Will County have been flocking to an interactive map at illianacorridor.org to see whether their homes, businesses, backyards or back 40s are within the path.

“There’s no question property can be condemned for a highway. The state or whoever is going to get it,” said Dan Tarlock, a professor at IIT Chicago-Kent College of Law. “The question is how much the landowner is going to get paid. Quick-take is designed to take first and then fight about the money.”…

State Sen. Toi Hutchinson, D-Chicago Heights, sponsored the quick-take legislation in the Senate, where it passed 44-8 on March 28. She said the measure is necessary to streamline the process so that ground can be broken for the Illiana by 2016…

Hutchinson, whose district includes much of the Illiana corridor, said the project is vital for job creation and economic development in southern Cook and northern Will counties.

This is a classic situation pitting the interests of the “greater good” versus individual property owners. The article also suggests there is little or no opposition to the project itself, rather the opposition is to how the land is seized. I wonder why the article doesn’t talk more about what prices landowners get for their property in the quick-take process compared to a more protracted process. Isn’t that what is at stake here?

Looking at the proposed routes for the expressway, who exactly is this supposed to serve? Here is the overview of the project:

Previous studies have indicated possible benefits for an east-west transportation corridor extending from I-55 in Illinois to I-65 in Indiana. These include providing an alternate route for motorists traveling the I-90/94 corridor, relieving traffic on the I-80 Borman/Kingery Expressway and U.S. 30, serving as a bypass for trucks around the congested metropolitan highways, providing access to one of the largest “inland port” intermodal freight areas in the U.S. and the proposed South Suburban Airport, supporting economic development in this area, and the potential for substantial job creation. Will County, IL was one of the fastest-growing counties in the U.S. between 2000 and 2010, adding 175,000 residents and increasing demand for additional transportation options.

This doesn’t seem aimed at the Chicago area really because a better route for the Chicago region might be to extend I-355 south and then loop it over to I-65. Is this primarily for warehouses in Will County so they can have easier access to both I-55 and I-65? Are there expectations for more suburban growth south of Chicago?

A reminder: some of funding for studying the Illiana Expressway was to come from the increased tolls on Chicago area highways.

Reminder in Willowbrook mosque case: IL municipalities have zoning jurisdiction 1.5 miles beyond boundaries

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As the Willowbrook mosque situation continues, the Village of Willowbrook clarified an important detail regarding Illinois municipalities and zoning:

Village consultant Jo Ellen Charlton said the village has decided to release a zoning map showing its area of influence for planning purposes after receiving questions from MECCA about whether it had the right to express its opposition.

A dotted line forming a box along 91st Street, just past the proposed location, is now shown on the map to indicate the village’s intention to exert influence over planning decisions in the area. Because the proposed location lies within 1.5 miles of a Willowbrook boundary line, it is considered within the village’s “planning jurisdiction,” officials said.

Even though the proposed site for the mosque is outside the boundaries of Willowbrook, Illinois law gives incorporated municipalities zoning control over land within 1.5 miles of their boundaries. This control was confirmed by a 1956 Illinois Supreme Court decision in favor of Naperville’s subdivision control ordinance, which said developers had to follow certain guidelines for streets and other subdivision features, extending to the 1.5 mile zoning boundary land. If two communities both could control the same land within the 1.5 mile boundary, either the two communities had to reach an agreement or the control would be set at a line in the middle of the two community’s actual boundaries. Land outside any community’s zoning boundaries is then controlled by the county.

This law has led to some interesting circumstances. For example, the suburb of Warrenville finally incorporated in the 1960s after many attempts because Naperville was expanding and would soon be able to control land around and possibly in Warrenville. At least several DuPage County suburbs have grabbed extra land through annexations in order to extend their zoning boundaries and therefore control land uses, particularly looking to avoid undesirable land uses.

This reminds me of a larger point: while zoning may seem arcane to the average citizen, it is a key tool communities can use and they (officials and residents) will fight hard to utilize these powers rather than let other people decide what “their land” will be used for.

 

The role of sociology in Illinois learning standards for social science for grades 1-5

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Building on a post from yesterday about textbook errors in sociology textbooks for fifth-graders in Macedonia, I was interested in knowing more about Illinois learning standards for social science for grades 1-5. Here are the five goals related to social science (pgs. 3-6 of the PDF):

Goal 14 – Understand political systems, with an emphasis on the United States.
The preservation and advancement of a free society within a constitutional democracy demands an informed, competent, and humane citizenry. Toward this end, civic education must be provided to students to help them learn, practice, and demonstrate the traits of a responsible citizen. This goal can be accomplished through developmental steps by giving students the knowledge, skills, and opportunities to illustrate their understanding of the following…

Goal 15: Understand economic systems, with an emphasis on the United States.
People’s lives are directly affected by the economies around them. All people engage in economic activity: saving, investing, trading, producing and consuming. By understanding economic systems and learning the economic way of thinking, students will be able to make informed choices and more effectively use resources. Such understanding benefits both individuals and society as a whole…

Goal 16 – Understand events, trends, individuals and movements shaping the history of Illinois, the United States and other nations. History encompasses the whole of human experience, from the earliest times to the present. As such, it provides perspectives on how the forces of continuity and change have shaped human life, both our own and others’. The study of history involves more than knowing the basic names, dates, and places associated with an event or episode. This knowledge is an essential first step to historical interpretation of the past, but historical study also moves on to a methodology that develops a deeper understanding within an individual…

Goal 17: Understand world geography and the effects of geography on society, with an emphasis on the United States. The study of geography is a lifelong learning process vital to the well being of students, the state of Illinois, the United States, and the world. As an integrative discipline that brings together the physical and human dimensions of the world, geography strives to make sense out of the spatial arrangements of people, places, and environments on Earth. Geography is a field of study that enables us to find answers to questions about the world around us. Geographers ask and attempt to answer questions about where something is located, why it is there, how it got there, how it is connected to other things and places, how it is arranged in relation to other things, and the significance of its location…

Goal 18 – Understand social systems, with an emphasis on the United States. Humans belong to groups from the moment of birth. In order to better understand their roles as individuals and group members of a diverse society, students must know and understand how culture has changed and how it is expressed. Students should also understand how and why groups and institutions are formed. When students understand these concepts, they are better able to contribute to their community and society.

I suppose sociology would fit mostly into Goal 18 though anthropology could also fit here with the emphasis on culture. But it is pretty clear in these goals that politics, economics, history, and geography are emphasized and these disciplines are more clearly described.

Before these goals (pg. 3 of the PDF), there is some clarity about the disciplines involved in the social sciences: “Among the integrated social science disciplines are political science, economics, history, geography, sociology, anthropology, and psychology.” And later in the document (pg. 76), in the glossary specifically for Goal 18, here is the definition of sociology: “Sociology: The scientific and positivistic study of society.”

It would be interesting to know more about how these goals were developed. A later portion of the document doesn’t suggest that the forming of Goal 18 was guided by national or state advisory groups; however, two sociology textbooks that are cited in the bibliography.

In practice, is the term sociology ever used with students in connection with these goals? Do common textbooks ever use the term? Is sociology introduced to students regularly before high school or college? The social science standards for grades 6-12 perhaps allow for a little more room (see page 60 of the PDF).

When a suburb doesn’t support the big tax break supported office park

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An interesting story is brewing in Hoffman Estates where the State of Illinois wants to keep the Sears headquarters by continuing a major tax break but the local school district and some in the community don’t want to live with the reduced tax revenue for years to come. Central to the story: the tax break didn’t help fill up the 780 acre office park, leading to less tax revenue than expected even with Sears located there.

Instead, two decades after the special taxing area was created, some 200 acres remain undeveloped in the 780-acre park anchored by Sears Holdings Corp.’s headquarters. A swath of land that was supposed to generate $50 million in property taxes in 2012 raised only $25 million in the past tax year…

The ambitious project’s inception came at the pinnacle of “euphoria” over a booming commercial real estate market, said John McDonald, who teaches land economics and real estate at Roosevelt University. But that party ended with the economic slowdown of the early 1990s, and the market, he said, has not rebounded. There is no “desperate need for office space anywhere right now,” he said…

The inability of the park to pull in the predicted revenues underlies the battle over Sears’ future. The fight has largely centered on Community Unit School District 300, a financially strapped taxing body whose officials claimed it stood to lose more than $10 million in revenue per year under the original plan to extend the taxing area’s term.

The parties and legislators are continuing to discuss whether Sears would be required to keep some 4,000 of the roughly 6,100 jobs at its headquarters well into the future. The potential consequences should the company not meet that condition remain unclear, said Hoffman Estates Corporation Counsel Arthur Janura.

Typically, suburbs are thought to be in favor of these tax breaks as it helps lure new businesses to town. However, this situation is a cautionary tale about tax breaks: just because one is granted doesn’t necessarily mean that businesses will necessarily move in. If everyone is building big industrial or office parks and offering tax breaks, can everyone win? And in an era of falling tax revenue and rising costs, suburbs need to maximize their assets.

Of course, the State of Illinois will look really bad if Sears leaves as it will feed a (growing?) narrative that Illinois is generally bad for business. It will be fascinating to see how the State and Hoffman Estates come to some sort of agreement that everyone can live with.