Chicago Tribune from Chicago, Illinois • 5

Chicago Tribune. Saturday, August 8, 1992 Section 1 5-, Citysuburbs Debt-rating firm calls state budget unhealthy, lowers bond status! Illinois joins the downgrcdo list States that have had their bond ratings reduced recently by Standard Poofs From State last downgraded To downgrade casts on the fiscal 1993 budget, the lowered rating will force the state to pay higher interest to entice investors to buy its bonds. That will cost taxpayers about $650,000 more on the $650 million in general obligation bonds that the state intends to sell this fiscal year, and about $5 million over the bonds' lifetimes, said Ellen Feldhausen, a representative for Edgar's Bureau of the Budget Despite Friday's downgrade, Illinois' credit rating remains respectable among states and high compared with many businesses. Other states that have experienced problems balancing their budgets because of higher spending demands, reluctance to raise taxes and the national recession also have been downgraded by and the other major credit-rating firm, Moody's Investors Service Inc. Last month, downgraded California's bond rating two notches to A-plus from AA.

More than a month into its new fiscal By Rob Karwath Despite deep program cuts, Illinois' budget isn't healthy and may not be for several years, a major Wall Street credit-rating firm said Friday in downgrading the state's bond rating for the second consecutive year. Standard Poor's Corp. reduced its rating to AA-minus from AA on Illinois' $4.2 billion in general-obligation bonds, which are sold to raise money for projects such as road construction. About $200 million in other state-backed bonds sold for special projects also were downgraded one notch from various classifications. announcement, which many state officials had expected, came as the state prepares to sell $600 million in short-term notes to pay old bills submitted by providers of medical services to die poor.

gave those notes its highest short-term rating because the state has a sure-fire payback plan based predicted slow recovery from reces-. sion and the unwillingness among. Illinois officials to raise taxes to pay the bills. i Without more tax revenue or a quick economic upturn, Illinois', "financial position will remain rela- tively weak, liquidity 'will be tightv and the state's operating budget; will remain vulnerable to future cessionary pressures," said a statement. In Jon Reichert, director of municipal finance, added, "If the, state is planning on relying primar-, ily on economic growth to improve -its financial situation, and asf suming that growth occurs as is ant ticipated, it's going to be several years before finances are at a level better than AA-minus." Officials of Moody's said thefi were still reviewing the fiscal 19931 budget and would issue a soon on Illinois' bond rating.

Last' September, Moody's broke Illinois! 44-year-old streak of maintaining,) the firm's top-notch Aaa bond rat-i. ing by downgrading it to Aal. year, California still does not have a balanced budget and is issuing IOU's to help pay its bills. Illinois' budget woes aren't nearly as bad as those in California. But said it was again downgrading Illinois' rating because it doesn't believe the state is taking in enough tax money to pay its bills.

That situation has caused large stacks of overdue bills to pile up at state Comptroller Dawn Clark Netsch's office. said its analysis showed the unpaid bills went from $256 million to $1.5 billion between fiscal years 1989 and 1991. Netsch's office said Friday that its backlog was $401.4 million on Wednesday, the last time a calculation was made. Officials said that number would not have changed much by Friday. downgraded Illinois bonds to AA from AA-plus last August because of doubts about last year's budget.

The firm said it harbors similar doubts about the fiscal 1993 budget, given the nation's Official questioned California Connecticut Illinois New Hampshire New Jersey New York Maine Rhode Island Vermont July September Friday June 1991 July 1991 January June 1991 June 1991 June 1991 Source: Standard Poor's Corp. on receipts from the federal Medicaid health insurance program for the poor. The much larger general-obligation bond downgrade is another story. Like a bad mark on a person's credit history, a downgrade reflects reduced confidence in a state's ability to repay the loans it Fairest of them all i '4'' College's upsets few By Frank James Unlike most decisions made in recent months by the City Colleges of Chicago board, the plan to close City-Wide College has so far drawn no protest. In fact, the move to close the college, which shares its 226 W.

Jackson Blvd. space with the community college system's administrative offices, was cautiously welcomed by leaders of groups representing the school's faculty. "We're not, in principle, opposed to it," said Norm Swenson, president of the Cook County College Teachers Union Local 1600. "We've advocated in writing that they reduce the number of administrators City-Wide had." Closing the school would solve that problem, he said. City-Wide has roughly one administrator for every 28 faculty members, a ratio far lower than the state average of one administrator per nine teachers, Swenson said.

On Thursday, the City Colleges board announced it was closing City-Wide, one of the eight schools run by City Colleges. Accredited in 196 as a separate col-' lege, City-Wide last fall had an enrollment of 7,129 students. City-Wide offers credit courses through WYCC-Ch. 20. It also operates Dawson Technical Institute on the city's South Side and has courses for police officers, firefighters and Army personnel stationed in Germany.

The board said Harold Washington College, also in the Loop, would assume most of City-Wide's roles. Roger Podewell, president of the City Colleges Faculty Council, said he expected no significant protests over the decision. In recent months, concerns that the board was shifting the system's focus to vocational from academic courses had touched off a furor. "It's not something that will generate the emotions of the other issue because its effects aren't that widespread," Podewell said. "And if they save some money from this, maybe that will help at the other schools." closing Carol Winkler wipes clean a glass sculpture to from noon to 10 p.m.

Saturday and Sunday In prepare for the Gold Coast Art Fair, which runs the River North area. Greenways touted in lovefest' A-plus AA-minus AA-minus AA AA-plus A-minus AA-plus AA-minus AA-minus AA AA AA AA-plus AAA A AAA AA AA takes out by selling bonds. Gov. Jim Edgar issued a statement saying he was "disappointed." He said he did not think took sufficient note of the "tough decisions" that he and the General Assembly made in cutting the budget In addition to the doubt that the lr 1 it "It's been overwhelmingly positive," said Betsy Otto, greenways director for Openlands. Among the themes raised at the hearings in Orland Park, Harrington and Wheaton were the need for multiuse trails accessible not only to bicyclists and hikers but also to horseback riders, many of whom spoke at the hearings.

Others testifying urged that even more land than that identified in plan maps be protected, particularly wetlands along streams. And they emphasized that as suburban growth continues, turning the plan into reality will become increasingly important. "It's an excellent attempt to protect our open space in this age of sprawl," said Edi Normann, a coordinator for the McHenry County Defenders, at the Bar-rington hearing. "Suburban sprawl 'I Ik. it) In motion MuL mm item mmkt if yx i nq But Reyes, who unlike several members of Mayor Richard Daley's administration who es-; caped mayoral blame for the" flood, would say only that he used information gleaned from conver-" sations with city lawyers and reporters to dump McTigue.

Although Cornfield pressed him, Reyes kept his reponses brief and avoided giving more detailed answers when Terry Moran, a lawyer from the corporation counsel's office, objected to Cornfield's fine of questioning. Moran argued Reyes's state of mind at the time he fired McTigue was irrelevant Roger Balla, the city-employed hearing officer, frequently agreed with Moran and sustained his objections. Flood damages have been estimated to be at least $800 million. Since the flood, Reyes has managed to limit his exposure to reporters seeking details about his role leading up to the flood and following it. McTigue has suggested that he is a scapegoat.

As such, McTigue said, his firing helps deflect blame for the flood. Some administration critics say that Daley's governmental reorganization earlier this year directly led to the lapses that contributed to reports of the cracked tunnel wall not being followed up. Critics also contend that Reyes was absolved by the Daley admins-tration because he is one of the city's highest ranking Hispanics and is important to Daley's political future. Bud BiSSiken Parade Saturday, Aug. 8 At 10 a.m.

Saturday, the Bud Billiken Parade will step off from 39th Street and Martin Luther King Drive. The parade will go south on King Drive past the reviewing stand at 52nd Street and Ellsworth Drive In Washington Park. At the end of the parade, a Picnic will be held In Washington ark. The Bud Billiken Parade was started In 1929 for newspaper carriers by Robert S. Abbott, founder of the Chicago Defender newspaper and has grown and continued for 63 years.

Bud Billiken Is a mythical guardian of children, and the parade always has been geared to children. overcome by fumes Friday while working in the downtown under- ground freight tunnels, a part of! which collapsed in April and flooded the Loop with water from the Chicago River. The workers were repairing the tunnels. i Fire Chief Mike McDole of the 1st Battalion said the workers com- of lightheadedness just be-bre 3 p.m. in the tunnel east of City Hall.

He said they may have inhaled some paint fumes from a building connected to the tunnel. The Fire Department's hazardous materials team tested the air in the tunnel, but found no measurable toxic fumes, McDole said. CHA guard is shot at anti-drug rally A Chicago Housing Authority guard was shot in the thigh during an anti-drug rally Friday at the CHA's Rockwell Gardens housing development, police said. Darrel Lewis. 26.

of 1845 S. Ridgeway was reported in fair condition Friday evening at Mt. Sinai Medical Center, a hospital spokesman said. Lewis was shot in an alley at 2408 S. Jackson according to.

I Harrison Area police. Police said they have no suspects. tlooa tiringr. in Loop- By Frank James The Chicago official who fired former city worker James Mc-Tigue in the aftermath of last spring's Loop flood appeared Friday at a personnel board hearing after being subpoenaed by Mc-Tigue. But little light was shed on General Services Commissioner Benjamin Reyes's precise reasons for firing Mctigue because during the official hearing the case repeatedly ruled that Reyes did not have to answer questions from McTigue's lawyer.

Gilbert Cornfield, McTigue's lawyer, asked several times what specific information Reyes relied on to fire McTigue, the former engineering technician who was responsible for inspecting the city's freight tunnel system. McTigue, a 10-year city employee, is challenging his dismissal through the personnel board. He contends he warned his superiors about a crack in the tunnel walls before it ruptured and flooded the Loop on April 13. In a letter of dismissal to McTigue, Reyes charged him with conducting an "inadequate investi- of the tunnel problem be-ore the flood. Reyes also accused McTigue of making a "false 1 The administration has said McTigue.

who admits to having learnea about the crack in the tunnels in February, wrote a memo about the danger it posed only after the crack ruptured and pretended he had written it before the flood. Metropolitan report I'linols Williamson touts economic program Republican Senate candidate Rich Williamson touted his economic program Friday, noting the nation's unemployment had dropped slightly but was not encouraging enough." At a news conference, Williamson highlighted his plan to stimulate business investment by cutting the capital gains tax rate to IS percent and offering investment tax credits. He also said he supports tax credits of up to $5,000 for people who buy new homes, saying it would create 272,500 jobs and cause people to start building 125,000 homes. David Eichenbaum, spokesman for Carol Moseley Braun, Williamson's Democratic opponent, criticized the plan, saying, "There is nothing in this program that would create one job, provide economic growth or reduce the deficit." Maywood Loyola students lose their dental school Dental students at Loyola University lost their bid in court Friday to keep the school from closing in June 1993. After hearing several days of testimony from students and from school officials including Loyola President Rev.

Raymond Baumhart, Cook County Circuit Judge Monica Reynolds ruled that requiring the school to maintain a full faculty while enrollment declined was "extremely impractical." She also said harm to students attending a scaled back program at Loyola outweighed the harm of students transferring to another school. Chicago Workers in tunnel overcome by fumes Two construction workers were Trtbun photo by Jm PiisoMng is not just something we have to try to live with. We can mitigate it "This is a marvelous plan," echoed Valerie Spale, president of the Salt Creek Greenway Association. Protecting Salt Creek as a stream corridor could help solve flooding problems in Du Page County, she argued. So far, about 350 miles of greenways exist in the Chicago area, serving as recreational amenities, protecting plants and wildlife and improving air and water quality.

The new plan would knit together those greenways with others designed to link parks and other green areas, creating long alternative highways for use by animals and people. Written testimony on the plan will be accepted through Friday. Li ni "lit i u' s-. "mid iJ-a Tntxjn photo by Wilttr Kilo Federal court orders mobsters' resentencing i rvi ic By Laurie Goering Suburban affairs writer If good wishes were dollars, greenways would thrive. That much was obvious at a series of public hearings this week on an ambitious plan to build a network of linear parks and trails through the Chicago area.

Unlike most public hearings, designed as a forum for gripes, these featured an endless stream of horseback riders, bicyclists, hikers, snowmobilers and conservationists all praising the plan and congratulating its creators, the non-profit Chicago-based Openlands Project and the Northeastern Illinois Planning Commission. Officials of those organizations were almost embarrassed, terming the hearings "a lovefest." ciate into paying $1,100 a month in "protection" money. Schweihs frequently invoked the name of organized crime during his conversations with store owner William Wemette. Wemette eventually agreed to work undercover for the FBI and recorded his conversations with Schweihs and Daddino. Schweihs, 62, formerly of Lombard, was sentenced to 15 years in prison.

Daddino, 62, of Rosemont, was sentenced to VI years in prison. The court said Williams acted properly in increasing Schweihs' sentence because of his organized crime connections, but said she did not follow the requirements of the law when she also increased his sentence for being a leader of a criminal conspiracy. jail proposed young people who are serving jail sentences for non-violent offenses. No kickoff date was announced for the program. Chicago Police Supt.

Matt Rodriguez expressed support for the plan, saying, "We know that we can clog the courts and fill the jails, but we also know that we need to come together with the community and combine our The federal appeals court in Chicago has set aside the prison sentences imposed in 1990 on mob enforcer Frank Schweihs and an associate after they were convicted on extortion charges for collecting "street taxes" from the owner of an adult video store. A three-judge appeals court panel ruled that U.S. District Judge Ann C. Williams had improperly calculated the sentences she imposed on Schweihs and Anthony Daddino under the federal sentencing guidelines. Although the appeals court ordered that the two be resentenced, the panel upheld their convictions, rejecting arguments that there was insufficient evidence of their guilt Schweihs and Daddino were accused of intimidating the owner of the video store and a business asso Alternative to If Jesse Jackson and Operation PUSH have their way, Chicago will soon offer some young first-time criminal offenders an alternative to jail time.

Jackson announced his new Church-Based Program of Alternatives to Incarceration at a Friday news conference at Operation PUSH headquarters. He said the Eirogram would use 1,000 mentors rom city churches to supervise Modem and classical dancers from the Momenta Performing Arts Co. perform at the Daley Plaza Friday afternoon..