Everybody’s talking about Mayor Emanuel’s proposal to create a “trust fund” that would use private money to build infrastructure, though nobody seems to understand how it would actually work. But that’s not stopping aldermen from getting ready to approve it as soon as next week.
Let’s review what we know—or think we know—about the trust, and what no one has been willing or able to explain.
WHAT WE KNOW: Emanuel has proposed a pool of money to be raised by private investors and managed by a nonprofit organization overseen by five mayoral appointees, one of whom would be James A. Bell, the retiring chief financial officer of Boeing. In addition, we know that the mayor would use $2.7 million in city funds to help set up the trust. Boeing, by the way, has received about $24 million in tax breaks and subsidies over the last decade.
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WHAT WE DON’T KNOW: Whether the trust will be able to cut billions of dollars of deals and dole out contracts without public hearings or releasing crucial documents.
WHAT WE KNOW: With all of his press conferences and news releases, Emanuel has creatively blurred the lines so that no one really knows what he’s up to. For instance, in briefings with aldermen, mayoral aides said the trust fund is needed to help pay for water and sewer infrastructure—even though the council rubber-stamped a tax hike for that very purpose just last fall.
WHAT WE KNOW: For generations, Chicago—like almost every other local government—financed public works projects by selling bonds and then paying them off with property tax dollars or other fees. For instance, the 911 center was built 17 years ago in large part with a tax on telephone bills. Airport construction was paid for with passenger fees. School construction was funded by low-interest bonds paid off with property taxes.
