Should Chicago Spend Money on a Police Academy?
Chicago spends 39 percent of its municipal budget on policing, while New York spends just eight percent and Los Angeles...
Chicago spends 39 percent of its municipal budget on policing, while New York spends just eight percent and Los Angeles spends 26 percent, says the Center for Popular Democracy. This means the city has less funds for things like schools and social services.
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Chicago Group Pushing For $15 Minimum Wage
Huffington Post - May 28, 2014, by Joseph Erbentraut - A coalition of Chicago aldermen on Wednesday introduced an...
Huffington Post - May 28, 2014, by Joseph Erbentraut - A coalition of Chicago aldermen on Wednesday introduced an ordinance that would increase the minimum wage for many workers in the third-largest U.S. city to $15 an hour.
The ordinance calls for corporations with more than $50 million in annual sales to increase worker pay to at least $15 an hour with a year of the law's effective date. Smaller businesses would be allowed more than five years to raise pay. Twenty-one of the council's 50 members have signed on as cosponsors, Crain's Chicago Business reports.
The current minimum wage in Chicago is $8.25 an hour, a dollar more than the federal minimum wage.
Several aldermen joined low-wage workers at a press conference at City Hall on Wednesday, before the meeting where the ordinance was filed. Home care worker Darlene Pruitt, a 55-year-old mother of three and grandmother of 22, said she earns $10.65 an hour after five annual raises of a dime an hour working for the Help at Home agency. It's not enough, the West Side resident told The Huffington Post.
Pruitt said she has sometimes turned to a food pantry to make sure her family has enough to eat. "It's hard out there," Pruitt said. "The cost to live in Chicago and meet your basic needs -- rent, utilities, food, medication, clothes -- is high."
Pruitt said she is not afraid of retribution from her employer from speaking out because she is optimistic her efforts will help other workers like her who are in a similar position. If she earned more money, much of it would go right back into her community, she said.
The Center for Popular Democracy, in partnership with Raise Chicago, an advocacy group pushing for the higher wage, released a study Wednesday claiming the higher wage would decrease worker turnover and stimulate the local economy.
The study said the higher minimum wage would be responsible for $616 million in new economic activity and would help create 5,350 new jobs in its first phase. The higher wage also would add $45 million in sales tax revenues, but would raise consumer prices about 2 percent, according to the study.
Voters overwhelmingly backed the $15 minimum wage in a non-binding ballot question on about 5 percent of the city's ballots in the March primary election.
Business groups, however, have yet to be swayed.
Doug Whitley of the Illinois Chamber of Commerce told DNAinfo Chicago the proposed ordinance is "a ridiculously excessive reach on the part of a local government to try to instruct private-sector employers how to manage their businesses." The chamber said in a previous statement with other business groups that employers "cannot afford another minimum-wage increase" of any amount.
Mayor Rahm Emanuel has announced his support of a higher minimum wage, but for less than $15 an hour. Emanuel last week trumpeted the creation of a minimum wage "working group" tasked with creating a plan for increasing worker wages in the city and previously said he backed President Barack Obama's push for a $10.10 federal minimum wage.
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Teachers Union Questions Charter School Relationships With For-Profit Company
Teachers Union Questions Charter School Relationships With For-Profit Company
Denver’s teachers union is demanding Denver Public Schools halt the expansion of charter schools until district leaders...
Denver’s teachers union is demanding Denver Public Schools halt the expansion of charter schools until district leaders can ensure taxpayer money is not going to for-profit corporations.
The request comes on the heels of a study by an advocacy organization, the Center for Popular Democracy, based in New York. It alleges Denver’s largest charter school network – the Denver School of Science and Technology – paid between $20 million and $50 million to a for-profit company for employee and personnel services for DSST schools. During this time the company was owned by two of DSST’s founding directors.
The Center for Popular Democracy group says that relationship raises concerns about conflicts of interest.
DSST and Denver Public Schools deny any wrongdoing.
The district says that neither the district, DSST nor the company benefited financially and in fact there was a net loss to the company, which the district forgave when the company dissolved.
Money for independently run public charter schools is under great scrutiny now because of pending state legislation to shift more money to charter schools.
By Jenny Brundin
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Protesters Press Diversity Case as New York Fed Seeks New Chief
“Fed up, we can’t take it no more!” chanted a group of about 50 green shirt-clad members of Fed Up, a grass-roots...
“Fed up, we can’t take it no more!” chanted a group of about 50 green shirt-clad members of Fed Up, a grass-roots advocacy campaign that has received backing from Facebook billionaire Dustin Moskovitz. Fed Up is pushing central bankers to keep focused on creating more jobs. America’s unemployment rate is at its lowest since late 2000. But when Fed Up’s members look at the labor market, they see the people that they say the central bank has overlooked. That’s why they and other progressives, including Democratic lawmakers, are pressing the New York Fed to consider a diverse slate of candidates as it weighs replacements for its president, William Dudley, who plans to step down this year.”
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Federal Reserve under growing pressure to reform system, goals
WASHINGTON, Aug 22 (Reuters) - The U.S. Federal Reserve has two guiding goals when designing monetary policy: maximum...
WASHINGTON, Aug 22 (Reuters) - The U.S. Federal Reserve has two guiding goals when designing monetary policy: maximum employment and stable inflation.
But as the country's central bankers converge for their annual symposium in Jackson Hole, Wyoming this week, they are under increasing pressure to reform their own system and goals to better reflect the diversity of America and its incomes.
At this year's flagship economic policy conference, from Aug. 25 to 27, U.S policymakers will confer not only with their counterparts from around the world but also host a meeting on Thursday with a group calling for a radical overhaul of the Fed.
Fed Up, a network of community organizations and labor unions that wants a more diverse, transparent and income-inequality aware central bank, will meet with Kansas City Fed President Esther George.
It may be one reason why the organizers changed the dress code for the evening, usually a suited and booted affair, to casual attire.
So far three other Fed policymakers, New York's William Dudley, Cleveland's Loretta Mester and Boston's Eric Rosengren, are also scheduled to show up.
A Fed spokesman said Federal Reserve Governor Lael Brainard from the Washington-based Board of Governors also plans to attend the meeting.
The activists will look to build on their proposals, put forward in conjunction with former top Fed policy adviser Andrew Levin, to make the Fed's 12 regional banks government entities. The Fed is the world's only major central bank that is not fully public.
POWERFUL ALLIES
The group has recently been joined by powerful allies in Congress in forcing racial, gender and income inequality up the Fed's agenda.
Democratic presidential candidate Hillary Clinton has come out in favor of restricting the financial world's influence on regional Fed boards.
In May, 127 U.S. lawmakers including Senator Elizabeth Warren and former Democratic presidential candidate Bernie Sanders sent a letter to Fed Chair Janet Yellen urging more diversity among its ranks in order to "reflect and represent the interests of our diverse country."
Currently 11 of the 12 regional Fed presidents are white, 10 are male, and none are black or Latino. At the Board level, the highest echelons of the Fed, Yellen is the first woman chair in the central bank's 103-year history.
SIGNS OF CHANGE
There are indications that the steady drumbeat of pressure is having some effect on areas on which the Fed does have some control.
"I believe that diversity is extremely important in all parts of the Federal Reserve," Yellen told Congress in June under sustained scrutiny from lawmakers about the Fed's performance.
Minorities now make up 24 percent of regional Fed bank boards, up from 16 percent in 2010, while 46 percent of all directors are either non-white or a woman.
Yellen, who has not been shy in speaking on income inequality, has also noted that rising inequality could curb U.S. economic growth.
And for a Fed not used to addressing distributional issues associated with monetary policy, such considerations are now seeping into policy discussions.
"The unemployment rate for African Americans and for Hispanics stayed above the rate for whites..." the Fed noted in minutes released last week from its policy meeting in July.
Or as Yellen put it to Congress in June, "We're certainly very focused on...wanting to promote stronger job markets with gains to all groups." (Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama)
By Lindsay Dunsmuir
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Peralta, NICE Urge Passage Of Carlos’ Law To Protect Construction Workers
Peralta, NICE Urge Passage Of Carlos’ Law To Protect Construction Workers
According to a 2013 report by the Center for Popular Democracy, Latinos and immigrants are disproportionately killed in...
According to a 2013 report by the Center for Popular Democracy, Latinos and immigrants are disproportionately killed in construction accidents. Between 2003 and 2011, 75 percent of construction workers who died on the job were US-born Latinos or immigrants. The report points out that in 60 percent of the fall death cases investigated by the US Occupational Safety and Health Administration, the victims were Hispanic and/or immigrants. That percentage jumps to 74 in New York City, and to 88 in Queens. “This is very troubling. We need to put an end to this crisis,” said Senator Peralta.
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Jeff Flake announces he’ll vote to confirm Brett Kavanaugh — will Collins and Murkowski follow suit?
Jeff Flake announces he’ll vote to confirm Brett Kavanaugh — will Collins and Murkowski follow suit?
Republican Sen. Jeff Flake of Arizona announced Friday morning that he would vote to confirm President Donald Trump's...
Republican Sen. Jeff Flake of Arizona announced Friday morning that he would vote to confirm President Donald Trump's Supreme Court nominee Brett Kavanaugh.
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Janet Yellen To Jobless African-Americans: You're On Your Own
Federal Reserve Chair Janet Yellen told members of the House of Representatives in a hearing on Wednesday that the Fed'...
Federal Reserve Chair Janet Yellen told members of the House of Representatives in a hearing on Wednesday that the Fed's concerns about inflation limit its ability to address high African-American unemployment.
“So, there really isn’t anything directly the Federal Reserve can do to affect the structure of unemployment across groups,” Yellen said during the House Financial Services Committee’s semiannual hearing on Federal Reserve policy. “And unfortunately, it’s long been the case that African-American unemployment rates tend to be higher than those on average in the nation as a whole.”
The African-American unemployment rate was 9.5 percent in June, nearly twice the rate of 5.3 percent in the population overall.
But Yellen said that the Fed’s ability to address this problem was limited by its commitment to keeping inflation under 2 percent.
Yellen’s remarks were in response to a question posed by Rep. Joyce Beatty (D-Ohio) as to whether the Fed was taking the high rate of African-American unemployment into account when assessing the health of the labor market. Beatty was one of several African-American committee members, including ranking member Rep. Maxine Waters (D-Calif.), who enjoined Yellen to consider the disproportionately high rate of African-American unemployment in deciding when to raise interest rates.
At the hearing, Yellen reaffirmed the Fed’s previous indications that it would raise interest rates before the year’s end. "If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate," Yellen said in her prepared testimony.
Maintaining price stability is one-half of the Fed’s dual mandate, together with maximizing employment. If the Fed prints more money, it spurs higher employment, ultimately putting upward pressure on prices. If it tightens the monetary supply, by raising interest rates, it keeps prices low, but also depresses employment.
Many progressive economists and activists fault the Fed for continuing to prioritize the inflation part of its dual mandate at the expense of full employment. It is a tendency they say disproportionately affects African-Americans, who already suffer from high unemployment and discrimination in the job market.
Jordan Haedtler, deputy campaign manager of the Center for Popular Democracy’s Fed Up campaign, which mobilizes communities of color for pro-employment Fed policy, said that Yellen’s Wednesday remarks are a reflection of this approach.
“It is indicative of the Fed’s continued emphasis on inflation even in the face of nonexistent inflation,” Haedtler said. “They are myopically focused on one portion of their dual mandate while ignoring another. If the Fed is saying that the economy is on enough of a positive trajectory to raise rates, they are saying they are OK with 9.5 percent black unemployment.”
The Fed Up campaign wants the Federal Reserve to wait for more significant wage growth before raising rates.
It is also encouraging regional Federal Reserve banks, along with Fannie Mae and Freddie Mac, to sell homes with delinquent mortgages to nonprofit organizations that are more likely to refurbish them. Currently, Fed Up claims, the homes often go to for-profit buyers who leave them in disrepair, limiting the economic recovery in many urban communities of color.
Source: Huffington Post
Report: Threat of Foreclosure on Calif. Homes Disproportionately Affects Minorities
National Journal, The Next America - March 15, 2013 - Leading mortgage lender Wells Fargo is urged to be more...
National Journal, The Next America - March 15, 2013 - Leading mortgage lender Wells Fargo is urged to be more transparent about relief reporting and to grant principal reductions. An overwhelming majority of homes in California’s major cities that are in danger of foreclosure are also in majority-minority ZIP codes, according to a report released this week.
The report focuses particularly on homes with mortgages serviced by Wells Fargo. Of the 21 major California cities examined, more than eight in 10 homes in danger of foreclosure are in areas where at least half of its residents are minorities—evidence, the report’s authors say, that further supports the idea that the housing crisis has been particularly harmful to African-American and Hispanic homeowners.
The findings come on the heels of the housing-market decline and the ensuing Great Recession that ensnared many homeowners who have been fighting to maintain their financial standing and retain their homes. While the report focuses on the California economy, other Americans are in similar circumstances. Across the nation, homeowners—many of them minorities—struggle to stay afloat as they watch their savings plummet and their dreams of maintaining a middle-class American lifestyle disappear. In its place are notices of default and the impending threat of bankruptcy.
In California, a total of 65,466 homes are in the pipeline for foreclosure, many of them purchased before the housing market crash in 2007.
Coauthor Ady Barkan, of the Center for Popular Democracy, a national organization based in New York, said the report focuses on Wells Fargo because the bank is responsible for the highest number of homes in California’s foreclosure pipeline—in addition to being headquartered in the same state. As leading lender, the bank is responsible for mortgages for 11,616 California homes—nearly 1 in 5 homes in the pipeline.
The “foreclosure pipeline” refers to homes that have received a notice of default or a notice of trustee sale. While some homeowners eventually pay back the debt, more often the homes are foreclosed, Barkan said.
Wells Fargo spokeswoman Vickie Adams took a contrary view, saying that the term “pipeline” can be overused and doesn’t take into consideration the complexities of the mortgage-lending industry. She added that the bank offers various programs and workshops to help educate its customers on their options to prevent losing their home.
“It’s always challenging to articulate some of the specifics of what some perceive to be a pipeline of sorts,” she said. “The facts are when a home has come to foreclosure, there are oftentimes that a customer is able to find options to prevent [it].… In foreclosure, no one wins. What we do is try to provide a great deal of support to the community in a number of ways.”
The wide variety of data sources that reports use can often create conclusions that aren’t necessarily in line with standard industry practices, Adams added.
“We all understand everyone’s right to raise issues they believe are important, but I think it’s really important, again, to look at the data and understand what the data says and use the measures that are appropriate for the industry,” she added.
According to the report, the opaque nature of Wells Fargo’s reporting data has made it difficult to track who is receiving the help. The report’s authors urge the bank to practice more-transparent reporting practices that include race, ZIP code, and income data for all foreclosures, short sales, and principal reductions.
According to Adams, the data for relief efforts and other information is available through industry publications such as RealtyTrac and Inside Mortgage Finance, as well as government sources.
Last year, the bank settled a lawsuit with the Justice Department, which alleged that the financial institution had discriminated against minority borrowers during the housing bubble, charging higher fees and rates to minorities than whites, even when they had the same credit risk.
The Wells Fargo case wasn’t unique: Lawsuits surrounding discriminatory housing practices and predatory sub-prime mortgage lending hit major banks everywhere.
(RELATED: Big Banks, Racial Discrimination Linked in Housing Crisis)
Using data from the Home Mortgage Disclosure Act Database, the report found that between 2007 and 2009, Wells Fargo was 188 percent more likely to put African-Americans into riskier sub-prime loans than white borrowers with similar credit history; the risk for Hispanics was 117 percent.
Adams maintains that Wells Fargo is a “fair and responsible lender” that adheres to regulations according to the Fair Lending Act. She added that the bank works closely with various advocacy and real estate organizations to help minority and low-income borrowers.
The report, co-authored by the Alliance of Californians for Community Empowerment, Center for Popular Democracy, and the Home Defenders League, asks Wells Fargo to commit to principal reductions in the interest of saving homeowners from complete financial ruin.
Between 2009 and 2012, Wells Fargo granted $6.3 billion in principal forgiveness; their goal is to hit $7 billion by 2014, Adams said.
“We take it very seriously, and we work very hard at it. We really are focused on excellence, helping our customers succeed financially, and we have a culture of continuously improving our home-lending activity,” Adams said.
The report argues that allowing all 65,466 homes in California to be foreclosed would be a detriment to the state and local economy. Foreclosure would cause the homes to lose 22 percent of their value, at an estimated cost of $7.6 billion. Maintenance costs for vacant homes would cost the government $19,227, resulting in a total cost of nearly $467 million for taxpayers.
“Communities have already sustained significant harm from the foreclosure crisis; unless Wells Fargo changes its practices, more harm will be done in coming months and years. New homes continue to enter the pipeline, inflicting tremendous stress and damage on homeowners and communities until Wells Fargo adopts significant new policies,” the report states.
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Two Cook County commissioners proposing county I.D. card
Two Cook County commissioners proposing county I.D. card
A few weeks after the City Council approved the creation of a new municipal identification card, two Cook County...
A few weeks after the City Council approved the creation of a new municipal identification card, two Cook County commissioners on Wednesday introduced plans for a similar card in the county.
And like the city’s program, the Cook County version is aimed, in part, at people who are living in the county illegally.
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