Bill to identify struggling areas dies
Cook County Sheriff Tom Dart has been riding to the rescue of financially distressed Chicago suburbs for about a decade now and came to the conclusion that someone ought to alert residents of potential danger.
In places such as Ford Heights, Harvey and Robbins, the sheriff has offered law enforcement assistance to municipalities and his experiences in those suburbs revealed the need for further help. So Dart created inspector general’s office available to any municipality in Cook County that passes an ordinance allowing Dart’s investigators to probe allegations of corruption, mismanagement or waste in government.
That experience led Dart to the realization that while many municipalities are poor, bordering on insolvent, residents of those communities are often unaware of the situation. In fact, in some cases trustees and aldermen are kept in the dark by mayors and financial advisers who are corrupt or incompetent.
During several financial scandals in the south suburbs, newspaper stories revealed that while state law requires annual financial reports be filed with the Illinois comptroller’s office, no one in authority ever looked at those statements.
Dart, along with the news media, waged a successful campaign to get that information posted online, but there’s still one major problem.
“If there’s no analysis or deliberation of these documents, what good are they or have they ever been?” asked Cara Smith, chief policy officer for the sheriff. “We have passed too many laws in this state that allow us to pat ourselves on the back and claim we have done something about a problem when, in reality, nothing is done.
“On this issue in particular, when we know and see the impact on communities and families, there should be more than checking a box off,” Smith continued. “These forms should be put to use. Otherwise, the only winners are the accountants who municipalities hire each year to complete the forms.”
So Dart backed legislation in Springfield that would give the Illinois comptroller the responsibility of not just storing these reports, but analyzing them.
State Rep. Daniel Burke, D- Chicago, stepped forward to sponsor the legislation at Dart’s request. Called it the Municipal Financial Distress Alert System Act, H. B. 644, would have required the comptroller to establish a system identifying municipalities approaching financial distress.
It would require the comptroller to annually review audits and financial reports obtained under the Governmental Account Audit Act and grade every municipality’s financial status. The comptroller would also be responsible for publicly identifying municipalities that failed to file the required financial statements.
Sounded good. Looked good. Never made it out of committee in Springfield. Why? Well, the state comptroller, Susana Mendoza, is new to the job, having been elected in November. A spokesman said she likes the idea of a Municipal Financial Distress Alert System, but isn’t sure how financial distress would be defined. I’m guessing she’s also concerned about alienating mayors and local officials throughout the state if she gives them bad grades.
In addition to Mendoza, officials from the City of Chicago contacted Burke and said they are worried the legislation would harm its bond ratings and sales. That’s what happens when you are billions of dollar in debt.
So the Municipal Financial Alert System Act is dead in Springfield, at least for now.
Would it have helped? There’s been a lot of publicity, handwringing and attention focused on the state’s massive debt. Has it helped? No. State officials refuse to even pass a budget and keep on borrowing.