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Mayor Proposes Reforms to Chicago Comp Program, Outside Jobs by Aldermen

  • State: Illinois
  • Topic: NORTH
  • - Popular with: Insurance
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Chicago Mayor Rahm Emanuel has been criticized for not taking a stronger stand on a trouble-plagued city workers' compensation program. But two weeks after the alderman who controlled the program was charged with attempted extortion and stepped down from the position, Emanuel has proposed a number of reforms, according to news reports.

Mayor Rahm Emanuel

Mayor Rahm Emanuel

The mayor this week announced proposals to move control of the $100 million-a-year comp program out of the hands of a City Council committee and under the purview of the city comptroller's office, where it would be subject to scrutiny by the city's inspector general.

Emanuel also wants more restrictions on aldermen who hold outside jobs. The mayor seeks to strengthen conflict-of-interest disclosure rules, and limit campaign contributions from people and companies with business before the City Council. 

Alderman Ed Burke, the city's longest-serving alderman, was charged Jan. 2 with attempted extortion for allegedly shaking down the Burger King corporation over a permit for a restaurant in his ward. Burke is a lawyer whose firm helps shepherd permits and other matters that come before the city government.

Burke also kept a tight grip on the city's workers' comp program, which critics have said was expensive and corrupt, and was little more than a political patronage reward system.

After his arraignment, Burke stepped down from the chairmanship of the City Council's Finance Committee, which managed the compensation program. Chicago is the only major U.S. city in which the workers' compensation system is administered by the City Council, or legislative branch. Critics have said the arrangement allowed Burke to block transparency and investigations into the program.

Prosecutors have asked a federal judge for more time, until May 3, to ask a grand jury to return a formal indictment against Burke.

The mayor is expected to present his reform proposals at the Jan. 23 City Council meeting.

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