crain's chicago business

If you read Crain’s, you’ve probably spent a good amount of time thinking about the future of work – e-commerce, automation and telecommuting. Even if you don’t spend much time thinking about it, it’s abundantly clear that covid has rapidly accelerated those trends. Remote schooling and telehealth became necessities. Online shopping that might’ve been limited to clothes or homewares pre-covid exploded, with more people getting things like groceries delivered much more often. And there’s a heightened awareness of the importance of lower-wage work classified as “essential” during the pandemic. That’s why last year, the Illinois General Assembly created the “future of work” task force – a mix of current and former state officials, union folks and business representatives – to look into “how the state can best produce a broad-based post-pandemic recovery, confront the worsening crisis of poverty and create high-quality jobs for all.” A.D. Quig's two guests this week participated in the task force’s work: Professor Bob Bruno, director of the Labor Education Program at the University of Illinois Urbana-Champaign, and Harish Patel, from the advocacy group Economic Security for Illinois. They discuss the findings of the report, including the highs and lows of the state’s current labor market, whether we might see more union agitating to boost conditions for frontline workers, and whether the business groups that participated in this task force think the recommendations are a good idea.

The Chicago Reader is one of the city’s best-known free papers and one of a few remaining alt-weeklies to survive the media crunch that killed dozens across the country. Until recently, the Reader seemed like it was about to go under, too. Our guest this week is the Reader’s publisher, Tracy Baim. She’s been in the Chicago media world since she was a kid. Her mother, father and stepfather were all in the biz. Fresh out of college, she founded the LGBTQ publication the Windy City Times. In 2018, she stepped in to lead the Reader. And what a ride it’s been. When print advertising from bars, restaurants and venues dried up in the early COVID days, the paper survived thanks to a federal PPP loan, another loan from the city, a series of innovative fundraising measures and leftover investment from the paper’s co-owners, lawyer Len Goodman and real estate developer Elzie Higginbottom. But in recent months, a spat with Goodman almost brought the Reader down. He wrote a column detailing his concerns about getting his daughter vaccinated for covid. It led to an uproar and an outside fact-check that found several errors. Editors wanted a correction, an editors note, or for the story to get taken down. Goodman cried censorship, and the fight hit pause on the paper’s transition to nonprofit status, a transition that would have allowed for money from foundations and philanthropists to flow in. In this episode, Baim brings us behind the scenes of that tussle, explains where the Reader goes from here, and forecasts what a broader shift to nonprofit status for legacy media means--for example, is the Sun-Times/WBEZ merger good for all the other, smaller independent publications dotting Chicago? And is there a way for Chicago foundations to pool their money for media in a way that spreads the wealth to smaller outlets?

Chicago's Office of the Inspector General has published many blockbuster reports over the years. Its job is to investigate corruption, misconduct, waste, fraud and abuse big and small. In recent years, it's found a culture of sexual harassment in the Chicago Fire Department, blasted the Chicago Police Department’s response to summer looting in 2020, and helped U.S. Attorney John Lausch secure indictments of City Council members. But despite its importance to chipping away at city waste, the office’s top post was left vacant for roughly eight months. Deborah Witzburg, this week's guest, was confirmed to take over in late April. She headed up the IG’s public safety section starting in the Spring of 2020, but left when the last IG, Joe Ferguson, announced he was stepping down. She wanted the job. And she got it. But what’s she in for? It’s no secret that Mayor Lori Lightfoot and Ferguson had a rocky relationship in the last few months of his tenure. She suggested Ferguson wasn’t staying in his lane and hadn’t delivered on all of the investigations he said he would. We’ll talk to Witzburg about whether she thinks the IG’s office swerved out of its lane while she was there, how she plans to counter the “trust deficit” that’s built up among citizens after years of Chicago corruption, and what it’s like being the first woman to lead the office.

What if you skipped half the meetings you were supposed to attend for work? A third? A quarter? Could you still be effective? Would you still know everything you needed to do your job well? To earn your full paycheck? That’s what you should ask of your elected representatives, too. On this week’s show, we’re digging into an investigation that Crain’s, WBEZ and The Daily Line published this week about how often members of Chicago City Council show up. There’s good news: aldermanic attendance improved since the last term that ended in 2019. Back then, the average alderman attended only 65 percent of all the meetings they were supposed to – that includes committee meetings where the real sausage-making happens, and the full City Council, where things get final approval. This time, the average alderman attended just over 80 percent of required meetings. That’s a big jump, but still represents hundreds of absences. And the lowest-ranking alderfolks – including one under indictment and two running for higher office – showed up less than 60% of the time. Along with reporters Erin Hegarty and Alex Nitkin of the Daily Line and WBEZ’s Claudia Morell, A.D. Quig sorted through nearly 11,000 records from May of 2019 through the end of 2021 to get you these answers. On this show, we take you behind the scenes of our reporting process. We wrote three stories for this analysis: one breaking down the numbers, where you can look up how you're alderman did; another about whether virtual meetings are here to stay – and the drawbacks to it; and a third about what we called do-nothing committees, ones with big budgets and important mandates, but that meet rarely. We break down what our findings say about how Council works… and doesn’t. You can read all three stories, for free, at chicagobusiness.com, wbez.org and thedailyline.com. We all want to hear from you, too. How does this change your opinion about your alderman or alderwoman? What else do you want to know? We’re here to listen and eager to report more. Until then, let’s get to it. Here’s A.D.'s conversation with The Daily Line’s Alex Nitkin and Erin Hegarty and WBEZ’s Claudia Morell.

As Chicago emerges from its most violent year since the 1990s, year-to-date crime statistics for March show a slight drop in shootings and murders, according to the Chicago Police Department – with the biggest drops in the city’s 15 most violent community areas. But our guest this week argues something has been amiss in Chicago for about 30 years. Professor Jens Ludwig, who helps lead the University of Chicago’s Crime and Education Labs, and the National Bureau of Economic Research’s working group on the economics of crime, points out that Los Angeles, New York City and Chicago all had similar crime rates in the 90s. But while L.A. and New York have seen their crime rates tumble, Chicago’s hasn’t. Many of the conditions that existed back in the 90s — the fact that we’re surrounded by places where it’s easier to get guns, our gang structures and our segregation — are the same. Ludwig discusses his theories about the origins of that split. He also explores whether bail reform or the state’s criminal justice overhaul, the SAFE-T Act, contributed to the recent surge, and how the interrupted school year might be impacting carjackings now, and potential violence in the future.

As Illinois lawmakers edge toward the end of spring session and head into campaign season, talk of potential bills to address a rise in crime is heating up. Democratic lawmakers, fearful of polling that shows violence is a top concern for voters, have discussed legislation cracking down on ghost guns, organized retail theft and carjacking. Gov. Pritzker’s budget includes increases to state police and witness protection, as well as grants for anti-violence programs. Republicans, meanwhile, are pushing for bills that boost funding for police, set a minimum 10-year sentence for anyone convicted of selling a gun to a felon, and automatically transfer cases of aggravated carjacking or armed robbery that involve a minor to adult court. But this week's guests – Soledad McGrath and Vaughn Bryant – are wary of knee-jerk reactions to an increase in violence. McGrath is executive director of the Neighborhood Network Initiative at Northwestern University, which has studied the outcomes of several anti-violence programs operating in Chicago. Bryant is the executive director of Metropolitan Peace Initiatives, a coordinator for many anti-violence groups. MPI is a division of Metropolitan Family Services – it focuses on helping people that have experienced the highest levels of gun violence in the city. That help involves things like violence interruption and street outreach; behavioral health and help finding jobs or getting into school; expunging criminal records; and working with cops to help them better understand the communities they police. Early analyses of these programs show some positive results. Northwestern’s analysis of CP4P, which Bryant’s group helps organize, found that fatal and non-fatal gunshot injuries among participants were 20% lower 18 months after they joined and roughly 30% lower two years after. Arrests were 17% lower two years after joining, too. This conversation explores what programs are working – including efforts to enhance community policing with the Chicago Police Department, a big upcoming test for anti-violence work in North Lawndale, and why both guests are urging patience when thinking about solutions to crime.

Illinois’ political world was rocked on March 2, when U.S. Attorney John Lausch announced a 22-count federal racketeering indictment against former House Speaker Michael J. Madigan. The charges allege Madigan oversaw a criminal enterprise to preserve and enhance his political power and finances, reward allies for their loyalty, and generate income for members and associates through illegal activities. Based on other indictments and reporting, it was clear Madigan had been in the feds’ crosshairs for some time, but it was never clear when they might strike… or even if they could. For so long, Madigan had been seen as un-topple-able, or too savvy to say or do anything that could get himself in trouble. Madigan, meanwhile, has maintained his innocence. Here to discuss all things Madigan is Chicago Tribune reporter Ray Long, author of a new book: The House that Madigan Built: The Record Run of Illinois’ Velvet Hammer. Long is a two-time Pulitzer Prize finalist who has covered the state Capitol, City Hall, the courts and the county, two governors who went to prison and a state senator who went to the White House. Long has covered Springfield for 40 years. The book offers a play-by-play of how Madigan accumulated power over his decades-long career: how he helped keep the Chicago White Sox from moving to Florida, a sneak-attack tax hike under the name Operation Cobra, and the impeachment of Rod Blagojevich. It also explores how Madigan pushed job recommendations at Metra, how his position impacted the political aspirations of his daughter, Lisa Madigan, and the beginning of the end of his tenure atop the House. Long talks about all of that, as well as if he believes the Chicago Machine is now, effectively, dead; the difficult task the feds have in proving the difference between routine politics and a criminal offense; and what really motivated the Velvet Hammer.

March in Cook County this year marks the official start of primary season and, for many, the due date for first installment property taxes. We talk both primary and property taxes with Larry Rogers Jr. In his private life, Rogers is a successful trial attorney at Power Rogers LLP. In public life, he’s a Democrat and the current longest-serving Commissioner on Cook County’s three-member Board of Review. That’s the second stop for property owners looking to appeal their assessments and hopefully knock down their tax bill. As of this recording, Rogers is free and clear to win another term – nobody’s running against him in the primary, nor have any Republicans filed who might take him on in the November general election. And that gives him a lot more space to voice his criticisms. And wow, does he. In this episode, Rogers lets loose on a long-simmering tension between his office and Cook County Assessor Fritz Kaegi. And he gets awfully close to endorsing Kaegi’s likely primary opponent, Kari Steele. He says Kaegi’s dropped the ball implementing a new computer system to help with assessments, that bills are likely to be months late this year and that, overall, Kaegi has fallen short of his promises to reverse spiraling values in the South suburbs in Rogers’ district. We spoke with Kaegi on this podcast back in December – please check that episode out for additional context and insights. We’ll also have Kaegi’s response to some of Rogers’ points on our website – that’s chicagobusiness.com/juice. On this episode, Rogers also addresses scandals at the Board of Review, including an FBI investigation involving alleged bribes for lower valuations, a report from the county’s inspector general warning about improper political influence, and why Rogers is okay taking donations from property tax attorneys.

This week's guest has been behind the scenes in Chicago politics for years, but just out of the frame. He’s crossed paths with Rod Blagojevich and Jesse Jackson Jr., worked on the Clinton/Gore campaign in the same political organization as a young Don Harmon and Phil Rock. But for the bulk of his career, he’s worked for the Obamas, starting as a paralegal to Michelle Robinson at the law firm of Sidley Austin - not long before she and a hotshot Harvard grad named Barack Obama got married. About 20 years after first meeting the Obamas, Michael Strautmanis is now very much in the frame as executive vice president of civic engagement at the Obama Foundation. He discusses not only the progress on the Obama Presidential Center’s construction in Jackson Park and the foundation’s fundraising efforts, but also concerns around housing affordability nearby, what it’s like as a guy who grew up mostly on the North Side to be handling a project with a big South Side impact, and how the foundation might play a role in addressing gun violence. Strautmanis also talks about what it takes to be a good “fixer” – a political problem solver – and the biggest political mess he ever had to clean up. Remember that beer summit back in 2009?

Illinois Gov. J.B. Pritzker’s budget proposal likely will be a key plank of his re-election platform. Not only does it contain goodies for everyday Illinoisans – a property tax rebate for roughly 2 million people, plus a one-year break on grocery and gas taxes – the governor says it demonstrates he’s made good on a pledge to dig the state out of the financial morass of the budget impasse during Republican Gov. Bruce Rauner’s administration. Here to analyze that budget is Laurence Msall, president of the Civic Federation, a government watchdog group founded by the Commercial Club of Chicago. Msall worked for Governors Jim Thompson and George Ryan on economic development issues, and has deepened his knowledge during his time at the Civic Federation. Republicans in the general assembly and the gubernatorial primary say the governor’s proposal is an election year gimmick that doesn’t fix the state’s structural issues. Msall agrees, but only in part. There are goodies, yes, but he gives the proposal good grades on addressing the state’s bill backlog, pensions, rainy day fund, and likely, its unemployment insurance fund. But there are warnings: the state needs more transparency around its infrastructure plans; the budget doesn’t restart a stalled conversation on larger property tax reform; and there might be challenges in getting this budget through a general assembly who might be eager to spend, rather than stowing money away.

This week's guest is Austan Goolsbee, a former economic advisor to President Barack Obama, a frequent contributor to the New York Times, and currently the Robert P. Gwinn Professor of Economics at the University of Chicago's Booth School of Business. As the pandemic has surged, Goolsbee’s been keeping a close eye on the major questions confronting our economic future: inflation, supply chain and the future of work. We recorded on the afternoon of Jan. 14, when Chicago and Illinois seemed to be showing a dip in COVID cases, but already, the economic signs for January were pointing downward. Goolsbee says the severity of any economic turndown – like it has during the entire pandemic – will rely on our handling of the virus itself. He discussed whether pandemic changes – like remote work, the great resignation, and a reconsideration of a just-in-time global supply chain – might stick. He also explored whether federal relief is acting like it should, and whether the Build Back Better bill is necessary to cushion the blow from future crises. Goolsbee also talked about what kind of Chicago mayor his neighbor Arne Duncan would make. And Goolsbee explains why he believes cities will recover post-pandemic… if crime can be brought under control.

Chicago is poised to end 2021 with more than 800 homicides, the most violent year in a quarter century. Discussing the rising violence is Susan Lee, chief of strategy and policy at Chicago CRED – an anti-gun violence organization. CRED works with men at risk – of being shooting victims or becoming a shooter themselves. It connects them with cognitive behavioral therapy, life coaching and job opportunities, conducts street outreach to defuse conflict and broker peace agreements between rivals, and advocates for more funding for programs like theirs. Preliminary studies suggest CRED and similar organizations, like READI and Communities Partnering for Peace, are working. A Northwestern University analysis of CRED’s impact starting in 2019 shows program participants were potentially 50% less likely to be shot and and 48% less likely to be arrested. That work is, again, preliminary, but in a span of crime like Chicago’s experienced recently, it's worth doubling down on, Lee argues. A.D. Quig talked with Lee on Dec. 13 not only about her work at CRED, but also her brief time as Chicago Mayor Lori Lightfoot’s deputy mayor for public safety. Lee left after a little over a year amid a rash of other high-profile exits in the city’s public safety space, and has since been critical of the city’s response to the spike in homicides and shootings. Lee talks about what she believes is driving that surge, how it compares with – and outstrips – other big cities, and what a shallow bench of public safety policymakers means, long term. Lee also discusses why she believes 2022 is a turning point year, as the city invests tens of millions in anti-violence efforts.

Crain’s Audio Studio presents compelling Chicago stories that will deepen your understanding of the city, its people, and the key issues it faces. Four-Star Stories kicks off with a three-episode exploration of the city's historic Bronzeville neighborhood. Crain's Chicago Business residential real estate reporter Dennis Rodkin asks: Will rising property values lift Bronzeville's profile as one of the nation's great Black neighborhoods, or harm it? This trailer previews what's at stake and what the future may hold.

On this week's episode of A.D. Q&A, Dr. Emily Landon, a professor and the medical director for infection prevention and control at UChicago Medicine, describes what we know – and don't yet know – about omicron. "On paper, it looks like a superpredator," Landon says of the variant, which appears more transmissible and less susceptible to vaccines. It will take days or weeks to know how it affects more vaccinated populations. "What we need to know is how fast this spreads and how well it does in, basically, a cage match against delta. Then how effective vaccines really are with it." Ideally, omicron may be very spreadable and include a sickness equivalent to the cold, giving plenty of people natural immunity. But right now, "we really don't know" if omicron will be a superpredator, a "nothingburger," or more likely, Landon says, something in between. Landon discusses what the new variant may mean for the return to the office many hoped for at the start of 2022. She also shares what grade she’d give Gov. Pritzker for his handling of the virus, areas where they’ve disagreed, and why she still thinks hosting Lollapalooza the way the city did was a bad idea.

While we’re thinking about big Thanksgiving meals, few folks in Chicago Mayor Lori Lightfoot’s administration have more on their plates than Samir Mayekar, deputy mayor for economic and neighborhood development, a.k.a. the mayor’s business guy. He’s a Day One Lightfooter who came from the tech world, running a Bronzeville-based lithium battery materials startup called NanoGraf. Now he’s the go-to in the administration on a series of key agenda items: the Chicago casino, the city’s post-COVID recovery, development programs like Invest South West, and keeping a watchful eye on the city’s growth sectors like film, life sciences, and food innovation. It’s a lot to juggle, made all the more difficult during a pandemic that has at times made the Loop a shadow of what it once was, hobbled tourism and transit, and contributed to an increase in crime levels the city hasn’t seen since the 90s. A.D. Quig talked to Mayekar about all of that, plus the Bears’ future in Chicago, Mayekar’s recent time on paternity leave, and a “lasagna” of programs to help struggling Loop buildings find new life.

As the Chicago City Council takes up Mayor Lori Lightfoot's $16.7 billion budget proposal, A.D. Quig asks, Does this budget set the city up for a roaring recovery? Are we spending money on the right programs? She discusses the budget's economic implications with Justin Marlowe, Professor at the University of Chicago's Harris School of Public Policy and associate director of the school's Center for Municipal Finance. He is an expert with UChicago's Urban Network.