Mayor Rahm Emanuel declined to say Wednesday whether he will continue the practice of allowing public employees to work full time for a private charity founded by former Chicago first lady Maggie Daley — one of several revelations about City Hall's cozy relationship with the group revealed in an inspector general's report.
In recent weeks, Emanuel has highlighted his efforts to save money for the cash-strapped city, from cutting jobs to threatening to fire public employees who owe $1,000 or more in overdue city bills. But Emanuel moved more cautiously following Tuesday's report by Inspector General Joseph Ferguson that questioned whether former Mayor Richard Daley's administration gave special treatment to After School Matters, the charity Daley's wife co-founded.
Three city employees were assigned to work for After School Matters, although one left in June, according to the mayor's office. One of those city workers managed and oversaw the organization's grant writing and fundraising activities, according to the inspector general's office.
Since 2004, the city has given After School Matters more than $54 million, according to the city's website. Just days before Emanuel took office, the Daley administration awarded the nonprofit a one-year, nearly $6.5 million contract to oversee summer jobs efforts and after-school programs.
The group is housed in city offices near the Cultural Center, where it pays no rent and uses city computers and phones. The City Council approved such arrangements in 1998 for five nonprofit organizations that supported the department's mission, according to the mayor's office.
Emanuel rebuffed a question about whether the city will continue to pick up the tab for the employees and rent. "I'm not wandering afield here," Emanuel said. "I'm telling you what I think is the right thing to do."
Later, a mayoral spokeswoman said the Department of Cultural Affairs and Special Events is reviewing its relationship with various nonprofit organizations, including After School Matters.
Maggie Daley's charity oversees after-school activities in the arts, athletics and academics at schools, parks, libraries and community centers. Its budget last year was $27.5 million, and it counted 75 full-time employees. The program also has been the recipient of millions in funding from Chicago Public Schools and state government.
Ferguson's report said the developers seeking city subsidies gave more than $900,000 to After School Matters over the years.
Following Wednesday's City Council meeting, Emanuel said he would look at ways to change the policy, but he didn't offer specifics.
"I'm trying to break the parts up and deal with the problem and not, in the solution, somehow adversely affect school activities," Emanuel said. "I want to keep encouraging corporations to step up in the public way they have done. The question is, if TIF is not the right vehicle, how do we still do this and what are the reforms necessary? And we'll take the appropriate steps so there's clarity to that."
Emanuel reiterated that tax-increment financing should be driven by economic and job growth, "not anything else."
The inspector general gave the mayor several recommendations. If the city continues to require developers to support nonprofits as a condition of receiving taxpayer subsidies, it should designate eligible charities and allow developers to choose which groups they wish to support.
Emanuel's spokeswoman said it is reasonable to ask developers who receive taxpayer assistance to give back to the community. However, requiring developers to make cash donations to nonprofits without "accountability or transparency" is not right, she added.
