Politics
Watchdog: Chicago’s Workers’ Comp System Has Been Reformed, 5 Years After Ed Burke Control
City Hall is pictured in a file photo. (Michael Izquierdo / WTTW News)
The system the city uses to compensate workers who are injured while on the job is operating as it should, more than five years after convicted former Ald. Ed Burke was forced to give up control after more than 30 years, according to a new audit from the city’s watchdog.
The first-of-its-kind audit by Inspector General Deborah Witzburg of the city’s workers compensation system found “major improvement” in the system that paid $73.5 million to resolve approximately 3,700 claims in 2022.
“As the program is ushered into a new era and the city works to clear a cloud of historical corruption, we welcome the opportunity to shine some light into that room,” Witzburg said.
The system is now administered by Rolling Meadows-based Gallagher Bassett, under a three-year contract awarded by the city’s Department of Finance in August 2019. That contract has been extended through the end of 2024.
For 30 years, Burke ran the city’s workers’ compensation program from his perch as the all-powerful chair of the City Council’s Finance Committee. During that time, the system that paid out tens of millions of dollars to injured city employees operated in a “windowless room—with no public transparency, no meaningful oversight, and no effective accountability,” Witzburg said.
It was not until July 2019 that the City Council gave the inspector general the authority to audit the operations of the City Council and its committees, making it impossible to assess how Burke was running the program until then.
Nearly immediately after being arrested on charged of attempted extortion in January 2019, Burke resigned as chair of the Finance Committee and the City Council unanimously voted to give control of the workers’ compensation program to the Department of Finance.
Burke was convicted in December 2023 of 13 charges of racketeering, extortion and bribery, and is set to report to prison next month to start serving a two-year prison sentence.
An audit ordered by former Mayor Rahm Emanuel and released on his last day in office found that, under Burke, the workers’ compensation fund had “significant control deficiencies and weaknesses” that could allow fraud, waste and abuse to flourish unchecked.
Officials in the city’s Department of Finance, known as the DOF, have “substantially implemented the corrective actions recommended by that audit,” according to the audit by the Office of the Inspector General, known as the OIG.
“Given the historical gaps in oversight of, and transparency into the program, OIG recommends that DOF improve annual reporting procedures to foster public confidence,” according to the audit.
The city’s workers compensation program now has a process designed to identify fraudulent crimes that “more consistent and repeatable,” according to the audit, which recommends that the city’s Finance Department work to standardize their policies and procedures while ensuring that the program operates in a transparent manner.
Contact Heather Cherone: @HeatherCherone | (773) 569-1863 | [email protected]
Daily Chicagoan: Wondering About the WNDR Museum?
Today’s Daily Chicagoan is brought to you, in part, by: Happy Friday. Kick off your weekend with a column from our science and nature reporter Patty Wetli. Plus, more from WTTW News. Water lily at Chicago Botanic Garden. (Patty Wetli / WTTW News) Patty Wetli: I tell you, I might be psychic. Last weekend, I went to the Chicago Botanic Garden and took a ridiculous number of photos of water lilies.
Daily Chicagoan: What Happens During a Prison Lockdown? We Asked Incarcerated People
Today’s Daily Chicagoan is brought to you, in part, by: This Thursday, read a story from investigative reporter Blair Paddock on the conditions for incarcerated people in the Illinois Department of Corrections. Plus, more from WTTW news. (txking / iStock) About three years into his incarceration, Calvin Merritte said he saw Menard Correctional Center’s cafeteria for the first time this summer. Up until then, he’d only received food in his cell.
Daily Chicagoan: Data Centers Could Drain Water Supplies in Great Lakes Region
Today’s Daily Chicagoan is brought to you, in part, by: It’s already the middle of the week. Time flies when you’re staying up to date on your city with WTTW News. (FierceAbin / iStock) The Great Lakes, a water-rich region, hold 20% of the planet's surface freshwater. However, that doesn't mean cities across Illinois, Indiana, Wisconsin, Michigan, Ohio, Minnesota, Pennsylvania and New York couldn't become the next Phoenix.
Daily Chicagoan: Did an Illinois Sheriff Break State Law to Work With ICE?
Today’s Daily Chicagoan is brought to you, in part, by: It’s Tuesday. Check out these stories from WTTW News on the TRUST Act, Chicago Public Schools’ first day of classes and local stationery recommendations from science and nature reporter Patty Wetli. Federal immigration agents in Chicago in a file photo. (WTTW News via CNN) When it comes to Illinois laws aimed at protecting immigrants, Adams County Sheriff Tony Grootens has made his views clear.
Daily Chicagoan: New ICE Detention Facility Worries Lawmakers
Today’s Daily Chicagoan is brought to you, in part, by: It's a new week, Chicago. Start it off strong with these stories from WTTW News. The U.S. Department of Homeland Security logo pictured in a file photo. (memoriesarecaptured / iStock) A new U.S. Immigration and Customs Enforcement, or ICE, detention center is in the works in Indiana, dubbed the “Speedway Slammer.” Similar in size to Florida’s so-called “Alligator Alcatraz” facility, the Indiana center will triple the amount of beds ICE has in the Chicago region.
Daily Chicagoan: Texas Democrats Plot Return After Sheltering in Illinois
Today’s Daily Chicagoan is brought to you, in part, by: Happy Friday. End your week with a new column from science and nature reporter Patty Wetli and more stories from WTTW News. A bulldozer slices through Bell Bowl Prairie, March 9, 2023. (Courtesy of Jessie Mermel) Patty Wetli: This week, we received an update on the status of Bell Bowl Prairie. If you’re thinking, “Wait, didn’t Rockford Airport plow under that ancient prairie back in 2023?”, you have a good memory. Yes, the fight to save the prairie failed.
Daily Chicagoan: Summer Festival Season Is the Best
Today’s Daily Chicagoan is brought to you, in part, by: It’s Thursday and the weekend awaits. Get prepped with our Summer Festival Guide and the latest stories about your city from WTTW News. (WTTW News) Chicago Public Schools officials are planning to rely on non-classroom cuts, additional revenue streams and a contingency that puts off a $175 million pension payment in order to close a budget gap of more than $700 million.
Daily Chicagoan: Can Lawmakers Fix Chicago Public Schools’ Budget?
Today’s Daily Chicagoan is brought to you, in part, by:
Good morning, Chicago. The school year starts next week and WTTW News has stories on the CPS budget crisis, CPD traffic stops and more.
(WTTW News)
Daily Chicagoan: Hundreds of Jobs Tasked With Implementing Police Reforms Are Empty. Why?
Today’s Daily Chicagoan is brought to you, in part, by: Today, WTTW News has stories on stalled police reform, meteor showers and delicious local recommendations from “Chicago Tonight” host Brandis Friedman. (WTTW News) More than 200 positions charged with implementing a court order that requires the Chicago Police Department to stop routinely violating Black and Latino residents’ constitutional rights are vacant, with another 226 positions unaccounted for, according to records obtained by WTTW News.
