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Chicago Mayor Rahm Emanuel unveiled his first budget today, tackling a $635 million deficit, and the city’s visitors and drivers are among those who would pay more.

Chicago Mayor Rahm Emanuel/Micki Maynard

The mayor had vowed not to raise property taxes or the city’s sales tax. But the budget, which the mayor outlined to city council, includes a proposal to raise the city’s hotel tax by 1 percent, or about $1.78 to the average visitor.

Although the increase itself isn’t likely to deter many visitors, Chicago has seen tourism drop, especially among people who come in from the suburbs for the day.

They may not be happy with another one of the mayor’s proposals: a $2 a day, week day congestion tax at garages downtown and in the city’s River North neighborhood.

Emanuel’s budget also takes aim at the city’s drivers, who are required to purchase a registration sticker. The price of a sticker for trucks and sport utilities would rise to $134 a year, from $120, although the price for a small car would remain at $75.

Anyone who is caught driving while intoxicated would see their fine double, while Emanuel also proposes doubling the fine for driving with an illegal weapon. 

Two other proposals are receiving attention in Chicago. One would combine the city’s police and fire headquarters, making Chicago the first mayor city in the country to do so, he said. The mayor has already announced plans to put 1,100 officers back on the street from desk jobs.

And, Emanuel is proposing an increase in residents’ water bills, which he said would be equal to the cost of five cups of coffee at Dunkin’ Donuts. (Assuming he means the 20 ounce cup, which sells for $1.95, that would be about $9.75 extra a year.) Even so, Emanuel said rates in Chicago would be the lowest among major cities in the Great Lakes.

Do you live in Chicago? What are your views on the mayor’s budget proposal?


Four weeks ago, a small group of demonstrators began protesting the grim state of the U.S. economy in New York City with little fanfare.

Now, a growing movement based on the Occupy Wall Street protests has spread throughout the country, including demonstrations in several Midwest cities.

Separate groups protesting the role of big banks in the U.S. foreclosure crisis marched Monday and Tuesday through Chicago, meeting at the Art Institute of Chicago, where the Mortgage Bankers Association was holding its annual conference.

“People are mad as hell at these financial organizations that wrecked the economy, that caused this whole mess,” Catherine Murrell, a spokeswoman for Stand Up Chicago, a coalition of approximately 20 Chicago community organizations, told the Chicago Sun-Times. “They broke the economy. They played with it like it was a toy.”

Protestors held training sessions on how to deal with the police, distributed press releases and chanted throughout the day Tuesday, according to our partner station WBEZ. On Monday, approximately 7,000 people participated in the protests, disrupting traffic across the city.

Elsewhere in the Midwest, protests were smaller, but sustained. In Columbus, Ohio, about 100 protestors marched in front of the Statehouse on Tuesday morning, railing against corporate greed, student-loan debt and the media. The group intended to show solidarity with the Occupy Wall Street protests in New York, according to The Columbus Dispatch.

In Madison, Wisc. protests occurred over the weekend. A crowd estimated in the dozens marched throughout downtown, settling in Reynolds Park until Sunday evening. In Milwaukee, religious leaders gave the movement traction in their Sunday sermons.

“I’m not against capitalism, but a capitalist society run amok takes care of the people at the top, and the people at the bottom are crushed,” Rev. Willie Brisco told the Milwaukee Journal Sentinel.

Protests were in the planning stages in Detroit on Sunday. The South End, the student newspaper at Wayne State University, reported that hundreds of people met at the Spirit of Hope Church on Monday night to plan protests slated to begin on Friday. Event organizers said that approximately 1,000 people attended the meeting.


Three stories making news across the Midwest today:

1. First UAW rejects Ford deal. UAW Local 900, which represents workers at three Detroit-area auto plants, has narrowly rejected a tentative contract agreement with Ford, the Associated Press reported today. Local 900 was the first to vote on the agreement reached last week, and 51.1 percent of 2,582 voters nixed the deal. More votes are scheduled this week and next week. Bill Johnson, bargaining chairman of the Michigan Assembly Plant, tells the AP that workers are angry the contract does not restore some items lost in previous concessions.

2. Michigan State creates economic development center. The U.S. Economic Development Administration has given Michigan State University a $915,000 grant to create an economic development center that will focus on innovative ways to generate Michigan jobs. MSU will partner with other colleges, local and regional governments, private businesses and other groups to identify innovative ideas and practices. Rex LaMore, the head of the initiative, said many economic development practices have become outdated in what has become a knowledge-based economy.

3. Construction begins on Chicago rail project. Fourteen Amtrak, 78 Metra and 46 freight trains vie for rail space each day near 63rd and State Street in Chicago. On Tuesday, workers broke ground on a $133 million project aimed at breaking that bottleneck. U.S. Senator Dick Durbin tells our partner station WBEZ that the project allows for expanded Amtrak service around the Midwest, and will create more than 1,500 jobs. But one union laborer who watched Tuesday’s groundbreaking was skeptical of that number. “They say they’re going to hire from the community, but I’ve been hearing this for years,” Bob Israel tells the station. “It’s just a dog-and-pony show. Trust me.” The project, called the Englewood Flyover, is due to be completed in 2014.


Three stories making news across the Midwest today:

1. Cleveland counts on small growth. In the past, economic development approaches in Cleveland have centered around big-ticket items. A new stadium. A new arena. The Medical Mart and Convention Center. That strategy is changing. Under Cuyahoga County’s new governing structure, executive Ed FitzGerald will target small-and-medium-sized business growth rather than large-scale projects. Our partner station Ideastream examines a proposal for a $100 million economic development fund that FitzGerald calls “a major commitment to business development.”

2. Tennessee GM plans will re-open. The contract agreement between the United Auto Workers and General Motors calls for the hiring of an additional 6,400 employees. Approximately 1,700 will be located at the company’s plant in Spring Hill, Tenn. The plant was initially shuttered in June 2009, but in a move that’s considered rare among industry insiders, the plant will re-open as GM seems to gain market share from Toyota. According to an Atlanta Fed analyst, the re-opening is one such reason “Tennesee could be viewed as a leader of the pack in automotive manufacturing strength,” throughout the nation.

3. Business school applications down. As prospective students grow leery of accumulating massive amounts of student debt, applications to most Chicago-area business schools have fallen. Crain’s Chicago Business reported Monday that applications at Loyola University’s Graduate School of Business have fallen 9.5 percent this year, applications at Northwestern’s Kellogg School of Management declined 5.6 percent. Applications at the University of Chicago’s Booth School of Business dropped 3.0 percent. DePaul was the only university in the Chicagoland region to buck the trend, noting a 13 percent jump.


Three stories making news across the Midwest today:

1. Unemployment rate unchanged. American’s unemployment rate remained unchanged at 9.1 percent in September even as the economy added 103,000 jobs, the U.S. Labor Department announced Friday. Among those struggling to find work, more than 1 in 4 respondents to a Rutgers University survey said they are opposed to a renewal of extended unemployment benefits. An extension proposal is part of President Obama’s jobs bill, according to The New York Times, which explored the sentiments of the unemployed. Theresa Gorski, a pharmaceutical rep from Detroit, tells the newspaper she once shared skepticism about prolonged benefits, but after 17 months of unemployment, her views have changed.

2. Software chief: Michigan needs more education. For Michigan companies, a strong education base is more important than lower taxes. That’s the opinion of Bill Wagner, co-founder of Ann Arbor, Mich.-based software firm SRT Solutions, who writes the dismantling of education throughout the state has painted a grim picture to prospective global employers in an AnnArbor.com op-ed published today. He believes budget cuts have harmed the state’s education infrastructure, and that savings from reduced business taxes, among other things, amount to less money than his company spent last year on a summer intern.

3. Sara Lee may move headquarters. The headquarters of Sara Lee has only been based in Downers Grove, Ill. for six years. Its’ already looking to move. Our partner station WBEZ reports the company is exploring a move within Illinois, possibly to downtown Chicago or another suburb. “We do believe that a downtown location would provide our new North American Meat Co. with an environment that will be energetic, that will foster breakthrough thinking,” a company spokesperson told WBEZ. Sara Lee currently employs 1,000 workers in Downers Grove.

 

 


Three stories making news across the Midwest today:

1. Unemployment rate unchanged. American’s unemployment rate remained unchanged at 9.1 percent in September even as the economy added 103,000 jobs, the U.S. Labor Department announced Friday. Among those struggling to find work, more than 1 in 4 respondents to a Rutgers University survey said they are opposed to a renewal of extended unemployment benefits. An extension proposal is part of President Obama’s jobs bill, according to The New York Times, which explored the sentiments of the unemployed. Theresa Gorski, a pharmaceutical rep from Detroit, tells the newspaper she once shared skepticism about prolonged benefits, but after 17 months of unemployment, her views have changed.

2. Software chief: Michigan needs more education. For Michigan companies, a strong education base is more important than lower taxes. That’s the opinion of Bill Wagner, co-founder of Ann Arbor, Mich.-based software firm SRT Solutions, who writes the dismantling of education throughout the state has painted a grim picture to prospective global employers in an AnnArbor.com op-ed published today. He believes budget cuts have harmed the state’s education infrastructure, and that savings from reduced business taxes, among other things, amount to less money than his company spent last year on a summer intern.

3. Sara Lee may move headquarters. The headquarters of Sara Lee has only been based in Downers Grove, Ill. for six years. Its’ already looking to move. Our partner station WBEZ reports the company is exploring a move within Illinois, possibly to downtown Chicago or another suburb. “We do believe that a downtown location would provide our new North American Meat Co. with an environment that will be energetic, that will foster breakthrough thinking,” a company spokesperson told WBEZ. Sara Lee currently employs 1,000 workers in Downers Grove.

 

 


Three stories making news across the Midwest today:

1. Mixed Midwest real estate news. Home sale prices in Michigan increased significantly over the past three months, according to a new report from Clear Capitol. “Michigan overall is actually up even more so than the Midwest Region,” said Alex Villacorta, a Clear Capitol spokesperson. Villacorta tells Michigan Radio that prices are up 8.5 percent on a quarter-over-quarter basis, but cautions prices could decline by more than 3 percent in Michigan this winter. Elsewhere in the region, distressed sales in northeast Ohio pushed the decline in area home prices to almost double the national rate, according to Crain’s Cleveland. Prices in the Cleveland area fell 7.9 percent in August compared to a year earlier.

2. Milwaukee streetcar’s street fight continues. Two Milwaukee alderman asked Congress to kill a streetcar line in the city by giving its $54.9 million in federal funds to the cash-strapped city bus system. The alderman and opponents of the streetcar line, said Wednesday that the city could not afford to operate the streetcar. Their efforts face long odds, according to the Milwaukee Journal Sentinel. House rules may ban such a financial shift, and the city’s council has already voted to start final engineering on the $64.6 million streetcar project.

3. Closer confines in Chicago. The Chicago Sun-Times reports today the Chicago Police Department will have some company in its headquarters. The Chicago Fire Department is moving in late next month as part of cost cutting ordered by Mayor Rahm Emanuel, a source tells the newspaper. Moving boxes have already arrived, and the fire department will abandon its lease on two floors at 10 W. 35th Street. “Everyone hopes everyone will get along,” the source tells The Sun-Times.


Three stories making news across the Midwest today:

1. UAW nears Ford deal. Local leaders in the United Auto Workers union have been called to Detroit for a Tuesday meeting, a “strong sign” that a contract has been reached with Ford Motor Co., according to the Associated Press. A UAW spokesperson said Monday that no deal has been finalized, although the union is hoping it will have one to present at tomorrow’s meeting. The four-year deal is expected to be more lucrative than the one UAW workers reached with General Motors last week, and include profit sharing instead of annual wage increases.

2. Emanuel hosts airline leaders. Chicago Mayor Rahm Emanuel will hold a summit today with airline executives. He will discuss what kinds of improvements they’d like to see in Chicago’s workforce and infrastructure to maintain the city’s status as a transportation leader. United Air Lines and Boeing are based in Chicago, and American Airlines uses O’Hare as one of its major hubs. “I do not want to just sit on that lead. I want to build it,” Emanuel said last week. The CEOs of United, American, Boeing and electronic-booking agent Orbitz, as well as government officals, are expected to be in attendance.

3. Chicago native wins Nobel Prize. Bruce A. Beutler, a genetics professor born and educated in Chicago, is one of three winners of the Nobel Prize for Medicine. The prizes were announced Monday. Buetler was born in Chicago and earned his medical degree from the University of Chicago in 1981. He currently works at the Scripps Research Institute in La Jolla, Calif, where officials credit his groundbreaking work in immunology for the prize. “I awoke in the night, looked at my cell phone and saw that I had a message that said, ‘Nobel Prize,’” Beutler told the San Diego Union-Tribune.


Three stories making news across the Midwest today:

1. Report: Indiana sets sights on luring CME headquarters. Indiana is aiming to land another Illinois company with a tax-incentive package. This time, a big one. Crain’s Chicago Business reports today that Indiana has offered CME Group Inc. $150 million per year to move its headquarters to the Hoosier State. CME CEO Terry Duffy did not comment on the report, but earlier this week, said he expects the headquarters issue “to be resolved by year end.” Indiana’s top economic development official, Dan Hasler, neither confirmed nor denied the report when reached.

2. Kasich begins official SB5 defense. On Thursday night, Ohio Gov. John Kasich made his first official campaign appearance to support Issue 2, a state ballot measure that could repeal Senate Bill 5, a controversial law that limits collective-bargaining rights of public employees. Appearing in Toledo with Mayor Mike Bell, Kasich outlined his defense of SB5 – that it helps local governments control spiraling costs. “I believe in unions, I believe they have a place,” Kasich told The Columbus Dispatch. “I am not out, in any way shape or form, to go after and target anybody.”

3. Michigan airport authority announces cuts. The Wayne County Airport Authority said Thursday it would cut costs and raise fees as part of a plan to reduce its expenses by $20 million over the next 12 to 15 months. The Authority, which runs operations at Detroit Metro and Willow Run airports, approved a budget of $292 million for fiscal 2012 that includes wage and benefit changes for employees. Airport World reports at least 100 employees will lose their jobs. “It’s imperative that we re-engineer Detroit Metro and Willow Run Airports so that they become the most competitive in North America,” said Turkia Awada Mullin, the WCAA’s new chief executive officer, who has drawn attention this week for taking a $200,000 buyout from her previous job as Wayne County’s chief development officer to accept the head position at the airport authority.


Three stories making news across the Midwest today:

1. UAW contract with GM nears approval. Late Tuesday night, it appeared members of the United Auto Workers had inched closer to ratifying a four-year contract agreement with General Motors. As voting neared a close, at least 18 major locals supported the deal while three had opposed it, according to the Detroit News.  GM CEO Dan Akerson will host a conference call with Wall Street analysts to discuss the deal this afternoon. Talks at Ford continue, while discussions with Chrysler “continue to lag,” according to the newspaper.

2. SB5 opponents link law to Jim Crow. We Are Ohio, the organized labor coalition seeking to repeal Senate Bill 5, is airing a radio ad in six urban markets that says Gov. John Kasich has led Ohio back to America’s Jim Crow past.  A portion of the ad states, that Kasich and other politicians “have passed two laws to take us back to the days of Jim Crow,” passing laws that make it more difficult for minorities to vote. In addition to SB5, a law that weakens collective-bargaining rights of public employees, the ad targets House Bill 194. Republican leaders tell The Columbus Dispatch the ad is race baiting. Democrats disagree. “It’s harsh wording, but it’s not necessarily inaccurate,” an Ohio State professor tells the newspaper.

3. Rahm rejects key budget-trimming ideas. Chicago Mayor Rahm Emanuel responded to a watchdog report that offered ideas on how to trim the city’s budget deficit by saying that suggestions to raise income, sales and property taxes are “off the table.” He also rejected the possibility of turning Lake Shore Drive into toll road. Emanuel said some of the other of 63 suggestions are “promising” and will receive “serious consideration,” according to our partner station WBEZ. This is the second year in which the inspector general has produced a budget options report.