PRESS RELEASE
For immediate release
Date: Wednesday, March 7, 2012
Contact: Dr. Lora Chamberlain
Phone: 773 486-7660
Email: info@illinoispublicbanking.org
Website: http://www.illinoispublicbanking.org
No Trust in Investment Trusts!
Group Working for a Fair Economy in Illinois Recommends Alternative Financing for Infrastructure Funding
Illinois Citizens for Public Banking, calls on Mayor Emanuel to use Chicago’s own taxpayer-funded Tax Increment Financing (TIF) surplus to capitalize Chicago’s first Public Bank. Utilizing $100-200 million of the TIF surplus could be leveraged into $1-2 billion worth of investment for Chicago’s infrastructure and job creation. A Chicago Public Bank would fund the very same projects that Mayor Emanuel has envisioned and outlined for the private Investment Trust, leading to the development of Chicago jobs, while at the same time saving the citizens and taxpayers millions of dollars. And a Chicago Public Bank would keep important public infrastructure under the control of the City agencies, such as the CTA, where it belongs.
Investment Trusts, Public-Private Partnerships, are proven failed economic models that have sold off our public infrastructure and created great wealth for Wall Street investment bankers, without benefiting the public. Because the partnership is private, the tax-paying public is left with virtually no oversight or control of revenue allocation, thus resulting in higher costs for public projects and future services.
For example, one of the Mayor’s touted investors is Macquarie Infrastructure, an Australian conglomerate with projects in Asia and the United Kingdom. The multi-national company is headquartered in Bermuda, presumably to avoid paying US taxes. Macquarie has 50% ownership of the Chicago Skyway toll road for the next 99 years, while the tolls have nearly doubled from $1.80 to $3.50 per trip since 2005. In another public-private partnership Morgan Stanley and the investors in Chicago’s infamous parking meters will take away $11 billion over a 75-year deal, while the citizens of Chicago received a little over $1 billion. Investors earn 10 times their investment with no risk, while Chicagoans pay dramatically increased parking rates.
“We don’t need to create two classes of transit riders with congestion fees and leave poorer people without needed services. With public infrastructure financing we can invest in improvements where everyone benefits” according to Charles Paidock, Secretary of Citizen Taking Action, a group of transit riders and other stakeholders.
Public Banks are becoming a better known economic alternative through out the US, legislation has been introduced in 17 states for State Banks, modeled on the Bank of North Dakota which has worked to support North Dakota farmers, community banks, homeowners, students and municipalities since 1919. North Dakota can boast the lowest unemployment rate in the nation 3.8%, and an economy that grew by 7.1% in 2010.
Illinois Citizens for Public Banking is calling on the Mayor and members of the City Council to get behind this innovative solution. Chicago can leverage a portion of our unused TIF funds to stimulate our own economy, invest in infrastructure, retrofits and even our aging water system. This is a win-win for Chicago residents, taxpayers and jobs, we can jump-start our own economy without losing public oversight of these projects.
Illinois Citizens for Public Banking is an all-volunteer group of activists dedicated to educating our legislators and the public about economic alternatives, and to ensuring government works in the people’s interests instead of Wall Street’s interests.
"For example, one of the Mayor’s touted investors is Macquarie Infrastructure, an Australian conglomerate with projects in Asia and the United Kingdom. The multi-national company is headquartered in Bermuda, presumably to avoid paying US taxes. Macquarie has 50% ownership of the Chicago Skyway toll road for the next 99 years, while the tolls have nearly doubled from $1.80 to $3.50 per trip since 2005. In another public-private partnership Morgan Stanley and the investors in Chicago’s infamous parking meters will take away $11 billion over a 75-year deal, while the citizens of Chicago received a little over $1 billion. Investors earn 10 times their investment with no risk, while Chicagoans pay dramatically increased parking rates."
Citizens Taking Action for transit dependent riders
