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Illinois City Contracting: Racial Quotas and Set-Asides

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Illinois (Chicago):
Chicago initiative nears a conclusion
(01/04/04)

Sub Head:  "Contract program is ruled illegal"
Excerpted from the story by Eric Ferkenhoff of the Boston Globe

"CHICAGO -- Almost 20 years ago, Harold Washington, Chicago's first black mayor, decreed that a share of all city contracts be set aside for minorities and women.

          "But Chicago's set-aside program, as it is known, has been called into question after a federal judge ruled last week that the program is illegal because, among other things, it amounts to a quota system.

          "The judge, James B. Moran, stayed his order for six months, meaning that the program can remain in effect until early summer while city officials work on amending it. The ruling marks another blow to government set-aside programs ... as courts question the programs' constitutionality.

ALSO SEE:
Lawsuits and corruption spell an end Chicago's racial set-asides!

Special report Jan. 15, 2004

          " 'The judge ruled the city program cannot stand,' said Tim Conway, a lawyer who represented the Builders Association of Greater Chicago, which brought the suit against the city in 1996. 'Formulistic percentages cannot survive strict scrutiny.'

          "Under Chicago's program, 25 percent of city contracts are allotted to minority-owned firms; 5 percent go to women-owned companies. The suit focused on contracts for the construction industry -- which, the judge agreed, is dominated by white men -- but the ordinance covers all city contracts, from food vending to ambulance services.

          "In his decision, Moran cited several flaws in the city's program.

          "He said the city was too generous in setting a ceiling on revenues for qualified companies. The ceiling, $27.5 million, meant that too many rich and established companies would qualify, he said.

          "Also, Moran said the city had set quotas, not goals; had erred in making the program permanent; had not been flexible in granting waivers when a qualified minority- or women-owned firm could not be found; and had not evaluated the wealth of company owners to make sure the program helped the disadvantaged.

          "Conway said he had read Moran's ruling as a death knell for the city's set-aside program.  'I don't know what the city is going to do, and I don't know what the city could possibly do,' to make the program constitutionally sound.

          "But city officials noted that Moran stopped short of striking down the law, instead giving the city six months to rewrite its ordinance."

          "A number of programs across the country -- in Richmond, Atlanta, Philadelphia, Michigan, Tampa, and Hillsborough County, Fla., -- have been struck down by the courts. And in California, voters endorsed a measure that reduced the level of set-asides, halving the goal of 20 percent to 10 percent for minority contractors.

          "In 2000, the program for Cook County (which includes Chicago but is a separate entity) was ruled unconstitutional because it did not gather the necessary evidence to show that discrimination existed and that the program was needed.  That suit also was brought by the Builders Association of Greater Chicago.  Still, Moran said he thought the city had to do something to ensure participation among minority- and women-owned businesses.  'The city has a compelling interest in not having its construction projects slip back to near-monopoly domination by white male firms,' he wrote.

Last known link to the Boston Globe story:
http://www.boston.com/news/nation/articles/2004/01/04/chicago_initiative_nears_a_conclusion/

Last known printer friendly link to the Boston Globe story:
http://www.boston.com/news/nation/articles/2004/01/04/chicago_initiative_nears_a_conclusion?mode=PF


Illinois (Chicago):
Minority firms out in the cold [Too Bad!] (09/13/99)

[This Chicago Sun Times story begs the question:  In the face of illegal racial and gender discrimination against businesses owned by "white guys", why wouldn't white guys be motivated to set up 'shell corporations' with their wives in order to reap landfall business for persons of the "right" color?  Read this story, and weep for the Constitution.]

          "The January storm that buried Chicago in snow and snow-removal bills was a $52 million windfall for 349 private contractors, but minorities were the caboose on the gravy train, records show.

          "Minority truckers received just $3.4 million in direct payments from the Daley administration--6 percent of city spending for the snow emergency. Total spending on minority firms rose to 18 percent when subcontracts were factored in.

          "Female-owned businesses fared better, with $11.5 million in prime contracts, $1.4 million in subcontracts and 24.8 percent of the citywide total. An exhaustive audit was conducted to prevent a repeat of the Blizzard of '79, when illegal dumper-turned-FBI mole John Christopher submitted phony snow-removal bills.  "Many of the majority contractors have sold their companies to their wives and daughters, and they're the ones who are actually getting the minority work," said Ernest Brown, president of Black Contractors United.

          "[Also, an evil white, male contractor] John Duff Jr. allegedly retained operating control over Windy City Maintenance, while placing the company in his wife's maiden name."  [Duh!   Who wouldn't?  If a white guy is excluded from Chicago business because he his white and male why wouldn't he set up a shell corporation with his wife to take advantage of this form of reverse discrimination by Chicago?] 

(Based on Chicago Sun Times story 09/13/99 by Fran Spielman)

[Last Known Link:   *http://www.suntimes.com/output/news/snow13.html]


Illinois (Chicago):
Daley, Jr. Buys Minority Business Votes with Set-Asides (02/05/99)

          "On Wednesday, Mayor Daley [Junior] picked up the endorsement of minority contractors, including the Black Contractors United.

          "More than a dozen contractors or representatives of minority contractors’ organizations praised Mayor Daley, saying he has opened business and hiring opportunities. Ernest Brown, president of the Black Contractors United, said the mayor had gone further than expected. "We have been working with the mayor’s administration. I can truthfully say they are sincerely working with us, doing things I didn’t think they would do...I am satisfied that the mayor’s staff is doing everything we want them to do to help increase the numbers," Brown said." 

(Based on the MSNBC story by Dick Kay, posted 02/05/99)

[Last Known Link:   **http://www.msnbc.com/local/WMAQ/54133.asp]


END Illinois City Contracting: Racial Quotas and Set-Asides


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*  We use the term reverse discrimination reluctantly and only because it is so widely understood.  In our opinion there really is only one kind of discrimination.