75 cents
Breaking news at Daily-Chronicle.com
Serving DeKalb County since 1879
Wednesday, December 4, 2013
GIRLS HOOPS • PREP WRAP
HOLIDAY TREATS • FOOD, C1
Barbs likely to see Huntley in playoffs
A cookie for those who hate baking
Madelyne Johnson
Sam Andrews
Ill. Legislature OKs pension fix Voice your opinion What do you think of the pension reform legislation? Vote online at Daily-Chronicle.com.
DeKalb County lawmakers split on reform bill vote By FELIX SARVER fsarver@shawmedia.com State legislators representing DeKalb County were lukewarm toward the pension reform bill approved Tuesday to fix the state’s $100 billion pension shortfall. State Rep. Robert Pritchard, R-Hinckley, voted against a bill to reform the state’s pension system. He said the annual cost savings this bill generates has
Court: Detroit bankruptcy may proceed
not been earmarked for pension reform, and he believes spending for other programs, such as Medicare, will increase as a result. “I’m fearful what we’re doing is making it more difficult for cities and colleges to hire people,” he said. The House voted 62-53 in favor of the plan, while the Senate approved it with a 30-24 vote. Supporters of the bill said it is critical to repairing the state’s
troubled finances but faces an immediate threat of a legal challenge from labor unions. Public employee unions, which oppose the bill, say the legislation is unfair to workers and retirees who for years made faithful contributions to retirement systems but now will see benefits cut because of government mismanagement. They also argue parts of the measure are unconstitutional. State Sen. Dave Syverson,
R-Rockford, who voted for the bill, said the legislation likely faces an uphill constitutional challenge in the courts. While the bill was not what he would have preferred, he said the pension system was heading for insolvency and something had to be done. He said he would have wanted less of a reduction for the cost-of-living adjustments in the legislation. “We had to vote for something that will assure the pension sys-
NIU’s dapper disciples
tem will be there for those who worked and been promised a pension,” Syverson said. State Sen. Tim Bivins, R-Dixon, voted against the bill. The state’s unfunded pension problem is considered the worst in the nation because lawmakers failed for decades to make the state’s full payments to the funds. The massive unfunded liability
See PENSIONS, page A6
Huskies gear selling ahead of MAC championship game
By ED WHITE The Associated Press
Kevyn Orr Detroit’s emergency manager
What’s next? n WHAT HAPPENS IN COURT? Bankruptcy opponents want to file appeals immediately to the 6th U.S. Circuit Court of Appeals in Cincinnati, a move that could put the case on hold. n WHAT HAPPENS IN DETROIT? The judge has told the city to come up with a plan to exit bankruptcy by March 1. The plan could include anything from selling assets, such as art, to cutting pensions and more. n HOW LONG WILL IT TAKE? Detroit is by far the largest city to go bankrupt and the timeframe isn't known, especially because of appeals. Kevin Orr, emergency manager, would like to get it done by next fall when his term ends.
DETROIT – A federal judge ruled Tuesday that Detroit can use bankruptcy to cut employee pensions and relieve itself of other crushing debts, handing a defeat to the city’s unions and retirees and shifting the case into a delicate new phase. Judge Steven Rhodes, who wondered aloud why the bankruptcy had not happened years ago, said pensions can be altered just like any contract because the Michigan Constitution does not offer bulletproof protection for employee benefits. But he signaled a desire for a measured approach and warned city officials they must be prepared to defend any deep reductions. “This once proud and prosperous city can’t pay its debts. It’s insolvent,” Rhodes said in formally granting Detroit the largest public bankruptcy in U.S. history. “At the same time, it also has an opportunity for a fresh start.” The ruling came more than four months after Detroit filed for Chapter 9 protection. Rhodes agreed with unions and pension funds that the city’s emergency manager, Kevyn Orr, had not negotiated in good faith in the weeks ahead of the July filing, a key condition under federal law. But he said the number of creditors – more than 100,000 – and a wide array of competing interests probably made that “impossible.” Detroit “could have and should have filed for bankruptcy long before it did. Perhaps years,” the judge said. The decision set the stage for officials to confront $18 billion in debt with a plan that might pay creditors just pennies on the dollar and is sure to include touchy negotiations over the pensions of about 23,000 retirees and 9,000 workers. Orr says pension funds are short by $3.5 billion. Rhodes promised that he would not “lightly or casually” sign off on just any cuts. The city has argued that bankruptcy protection will allow it to help beleaguered residents who for years have tolerated slow police responses, darkened streetlights and
Photos by Rob Winner – rwinner@shawmedia.com
Northern Illinois University nursing student Claire Desrosiers looks over some NIU T-shirts on Tuesday at the Village Commons Bookstore in DeKalb. By ANDREA AZZO aazzo@shawmedia.com
Northern Illinois University alumnus Chris Akers of Chicago tries on a sweatshirt Tuesday at the Village Commons Bookstore in DeKalb. Akers had just picked up his tickets for the Mid-American Conference championship game in Detroit when he decided to stop by the bookstore to look for some fan apparel.
‘‘
My brothers and I are all football fanatics. This being my alma mater, I just felt I had to [support the team]. Pete Lonsway, Northern Illinois University alumnus
Inside
’’
n NITZ: Adjustments start early for improving Huskies defense. Sports, B1 n NIU NOTES: Head coach Rod Carey hasn’t lost faith in kicker Sims. Sports, B3
DeKALB – Northern Illinois University alumnus Pete Lonsway is ready for the football team’s Mid-American Conference championship game Friday. The 1964 graduate, a former offensive tackle for the Huskies, was at the Village Commons Bookstore on Monday purchasing three sweatshirts for himself and his two brothers in preparation for the game in Detroit. Lonsway is one of many who have been purchasing NIU football merchandise lately, largely because of the undefeated football team. “My brothers and I are all football fanatics,” Lonsway said. “This being my alma mater, I just felt I had to [support the team].” The Huskies would essentially clinch a berth in a Bowl Championship Series game – most likely the Fiesta Bowl – with a MAC title victory Friday against Bowling Green. Quarterback Jordan Lynch also could cement a trip to New York City for the Heisman Trophy ceremony with another solid performance. Jody Boardman, manager of the bookstore, said they have been receiving online orders from all over the country. They even sold out of jerseys; Boardman said they would receive the next shipment next week. “Everyone wants a Lynch jersey,” she said. “He’s the most popular player.” The University Bookstore in DeKalb has been busy, too. Manager Don Turk said sales
See HUSKIES page A3
See DETROIT, page A6
Weather
Inside today’s Daily Chronicle Lottery Local news Obituaries
A2 A2-4 A4
National and world news Opinions Sports
A2, A4-6 A7 B1-4
Advice Comics Classified
C4 C5 C7-8
High:
56
Low:
27