Jacquelyn Ryan/MEDILL

Tough economic times don’t stop Americans from drinking their wine – but tight budgets may have consumers looking Latin for the best (or most) wine for their dollar.

The U.S. consumed a record 753 million gallons of wine in the heart of the recession in 2008, according to the Wine Institute. [...]]]>

Jacquelyn Ryan/MEDILL

Tough economic times don’t stop Americans from drinking their wine – but tight budgets may have consumers looking Latin for the best (or most) wine for their dollar.

The U.S. consumed a record 753 million gallons of wine in the heart of the recession in 2008, according to the Wine Institute. It is still on track to become the largest consumer of wine in the world by 2012, according to the latest U.S. Wine Market Forecast. “The economic recession had little impact on the US wine industry as consumers saved funds to enjoy wines at home,” the report says.

But cheaper imports from countries such as Chile, Argentina and Australia are killing U.S. winery margins, Bloomberg has reported.

Though tough for the U.S. wine market, it’s not a bad thing for consumers.

“Really low-priced wines give the consumer a huge opportunity to try a lot of different wines,” says Erica Witte. Witte is co-founder of a Chicago-based wine shop Poison Cup, which aims to educate Chicagoans about all the varieties of wine available.

Between 1991 and 2008 the dollar value of U.S. retail wine sales rose every year, almost tripling in that time. Yet last year, salesof U.S. wines dropped by 3.3 percent, to $29 billion, as prices were driven down by wine from Chile, Argentina, Australia, and elsewhere, Bloomberg reported, citing an analysis by wine industry consultant Gomberg, Fredrikson & Associates.

As a result, a total of 30 wineries are for sale in California, Oregon and Washington, according to Bloomberg – more than ever before.

A similar fate has not befallen Illinois vintners, however, according to Bill McCartney, executive director of the Illinois Grape Growers and Vintners Association.

“Honestly, Illinois wineries are doing OK,” says McCartney. McCartney, who doesn’t drink foreign wines but instead gets his fix from the 86 wineries scattered throughout Illinois. He believes sometimes consumers sacrifice quality for price.

“If you want quality you buy Illinois, if you want something cheap you buy Latin America,” says McCartney.

Another challenge presents itself to Illinois wine: getting people to know it exists. You’ll notice that no major chains or even local stores in Chicago carry much if any Illinois wine and Chicago is the state’s biggest wine market.

“People don’t look at Illinois as a wine-growing state,” says McCartney. He said Illinois is one of the largest wine-consuming states in the nation, but lags far behind in production numbers. According to the U.S. Tax & Trade Bureaus, the state has 103 wineries compared with 2,593 for California, which produces roughly 90 percent of the wine in the U.S.

Even with the prolific production of wine within the U.S., it is still one of the largest importers of the elixir in the world, importing 845,000 tons of wine in 2007, according to the U.S. Food and Agriculture Organization.  Contributing to our fix, Argentina and Chile exported a respective 365,000 and 1.16 million gallons of wine that year, a 20 percent and 145 percent year-over-year increase, respectively.

Meanwhile, the U.S. had not been keeping pace with increased foreign production for much of the decade, as it experienced a 10.28 jump in wine production from 2000 to 2006, for 2.36 billion liters produced.

Comparatively, Argentina soared 14.5 percent to 1.54 billion liters; and Australia just exploded by 93.2 percent to 1.43 billion liters, as did Chile up 67 percent to 850 million liters, according to the Wine Institute.

Last year alone, Chile’s wine shipments were up 17.6 percent, according to the industry trade group Wines of Chile, though the dollar value of sales were flat at $1.4 billion. This compares with California, whose shipments declined by 4 million cases in 2009, the first drop in 16 years, according to the Los Angeles Times, also citing Gomberg, Fredrikson & Associates.

Even though the earthquake in Chile caused substantial damage, it’s not supposed to slow business and may even help boost sales as the world pays attention to the country’s plight. Still, Chile estimated a loss of 125 million liters of wine with a value of approximately $250 million, according to winery-funded group Wines of Chile, which represent 95 percent of the Chilean wine industry.

Though she believes some great wine is coming from those regions, Witte, whose wine store will be giving classes on Malbecs next week, is wary of wine that becomes too cheap.

“You definitely have to be careful with wines in $6 to $10 range,” Witte says. “There’s got to be a good reason where wines are getting down to that level.”

She recommends getting to know your local wine shop owner whose taste you trust before delving into the world of cheap Latin American wines.

Witte says that the appetite for foreign wines has increased, in large part thanks to the Malbec, and consumers are even looking to move up the scale to more expensive varietals.

“Now that people have finally discovered foreign wines and can find Argentina and Chile on a map, they’re looking at higher end,” says Witte.

Two recommendations from Witte:

• The nice earthy Terra Rosa Malbec, which you can pick up for $14.

• Valdivieso for $20, which wine expert Robert Parker scored that as a 96 or a 94, which is outstanding to extraordinary.

Photo source: City of Austin

With the first-time homebuyer’s tax credit set to expire in April and home prices at generational lows, people–especially young people–are able to buy their first homes a lot sooner than many expected.

But it’s easy for first-time buyers to get blinded by the excitement of purchasing a new home.

Here [...]]]>

Photo source: City of Austin

With the first-time homebuyer’s tax credit set to expire in April and home prices at generational lows, people–especially young people–are able to buy their first homes a lot sooner than many expected.

But it’s easy for first-time buyers to get blinded by the excitement of purchasing a new home.

Here are some tips from local experts to make sure you don’t fall prey to rookie mistakes.

Mistake #1. Not evaluating all your financial life goals

When it comes to considering a new home, potential buyers need to evaluate all their financial goals in life, holistically, before making a budget and determining how much of a mortgage they can afford.

Do you plan to have kids? Do you plan to save for their education? Will you be contributing to a 401k or a Roth IRA? Will you be purchasing a new car? Saving up for a vacation? What about paying for life insurance? A rainy day fund?

“They need to have a clear picture of their personal finances and meet with a personal financial adviser,” said Gisella R Tomasio, financial adviser at Ameriprise Financial in Chicago. “They have to look at their cash reserve. We used to recommend three to six months, now it’s six to 12 months [of cash reserves].”

There are many questions to ask yourself before committing to purchasing a home. While the numbers may crunch well for you today, down the road your priorities may change and it’s important to be prepared.

Mistake #2. Not considering the additional costs

There are many more costs than just the mortgage. From property taxes to landscaping costs, the onus for maintaining the property and all its expenses will now be on you.

“A good rule of thumb is to have home debt not be higher than 28 percent of your gross income. Then utilities and other home costs not be more than 36 percent,” said Tomasio.

Try using this bankrate.com “How much home can you afford?” calculator to get an idea of what the real cost will be.

Mistake #3. Failing to get a good real estate agent

“Home buying is very stressful and scary, even more so for first-time homebuyers. But that doesn’t mean it doesn’t apply to everybody. Knowing that somebody has your interest at heart and is looking at every single detail is critical,” said Genie Birch, president of Chicago Association of Realtors and broker associate with Koenig & Strey GMAC Real Estate.

Let’s face it. Real estate agents aren’t in this for philanthropic reasons. They are here to make a buck as well. But there are realtors out there who are truly a “buyer’s” agent. Just remember there are also agents who just want to shuffle clients in and out as quickly as possible. How can you tell the difference? 

“Trust your gut, if you don’t think you can trust this person, then find another. Don’t override it,” said Birch. “Get recommendations from your friends who have already bought a home and were happy with the agent that they used.”

Look out for any agent who asks for large fees upfront or who wants to lock you into a very long-term agreement.

With those caveats, most advise that it’s best to get a realtor. Doing this on your own for the first time is almost always going to end in heart—or wallet—ache.

Mistake #4. Getting impatient

There are a lot of things first-time homebuyers need to do to get their ducks in a row before completing a purchase. It’s imperative that you get pre-approved for a mortgage so you don’t fall in love with something far outside your price range. To get pre-approved, make sure your credit is strong, at least a score of 750 in this market.

There are easy ways to improve your credit score before heading to the bank, such as paying down credit cards to improve your debt ratio. MSN Money has seven quick tips for this here.

Once you’re pre-approved, make sure you only sign on for what you need and can afford, not the largest loan the bank or broker may offer you.

“Just because you are qualified for a mortgage at $300,000, that doesn’t mean that’s what you can afford,” said Birch. “And there’s a huge difference between what $250,000 gets you in the city and what it is in the suburbs, so know what you can afford.”

Then, there’s doing your proper research into the home. Be sure to research the neighborhood and take a drive through the area at night.

“Know what you’re looking for,” said Birch. ” Know what’s gonna fit your lifestyle; then you start looking.”

Also be sure to consider how viable the home will be to resell in the future. Since first-time homebuyers tend to be purchasing “starter” homes, they don’t usually remain in the house for longer than five years. Consider any potential developments in the area and how they will affect your home’s value.

Mistake #5 Being too patient

The other end of the spectrum is also a problem.

“For those thinking about buying and think this first-time homebuyers [tax credit] is going to be extended, don’t make that mistake,” said Birch. “Accelerate your plans and take advantage. There’s not another time when you get an $8,000 gift” along with mortgage rates at historically low levels. 

This applies to your selection of a home as well. “Be ready to make a decision. Too many times you think that there is so much out there that you need to see more things. So you won’t make an offer and find out later that it’s gone. Then you find nothing that compares to that,” Birch warned.

Mistake #6. Making an unattractive offer

With a depressed real estate market and news about home prices dropping on what seems like a daily basis, new homebuyers put in bids at ridiculously low prices thinking they’ll be on the right side of supply and demand.

“You think the seller should go down in price. A lot of times, you see people walk away based on an amount that isn’t going to make a difference [sometimes as low as $500] and they lose what they want on principle,” said Birch.

A bad offer is a bad offer, no matter what the market. This could cost you your potential home. Make sure you work with your real estate agent about what a legitimate and appropriate offer would be.

Mistake #7. Forgetting to include contingency clauses

Any reputable, professional real estate agent includes these clauses automatically in any contract, but be sure to double check they are there.

There are two major clauses you need to be sure to include in your contract. Sellers don’t always respond well to them, but they are important for you, the buyer.

First is the mortgage financing contingency. This allows you to cancel or renegotiate the price if the home’s appraisal doesn’t match the offer. If you can’t come to an agreement, you can get your deposit back. You can learn more about that here.

Second is the inspection contingency clause. This also allows you to cancel or renegotiate if your professional inspector finds major flaws in the home.

Vacancy rates are up, as are the number of perks landlords willing to dole out. Consider asking for free parking.

Chicago rental vacancies are up and rents are down, according to Reis Inc. To be exact, in the fourth quarter of 2009, vacancies hit 6.7 percent (up [...]]]>

Vacancy rates are up, as are the number of perks landlords willing to dole out. Consider asking for free parking.

Chicago rental vacancies are up and rents are down, according to Reis Inc. To be exact, in the fourth quarter of 2009, vacancies hit 6.7 percent (up 1.3 percent from the year-earlier period) and rates for one-bedrooms dropped 1.7 percent to $1,050 from the previous year.

In sum, you can secure a hot pad at a hot price.

But don’t settle for just a slashed price tag, according to Apartment People marketing director Maurice Ortiz. Read between the lines of your lease, and make sure to red-pencil in some additional amenities.

Free parking

If you’re not all that adept at the “find a street spot” game, especially during Cubs season, investing in a second home for your wheels will get pricey. An outdoor, uncovered space in downtown Chicago can cost anywhere between $150-$200 a month and a garage spot can run high as $350 a month, Ortiz warned. Brokers will first suggest that apartment seekers consider ditching their vehicles. But if you’re not much of a Zipcar-user, consider asking your landlord to subsidize your spot.

“I think for a good tenant, meaning they have good credit and will be there for at least a year, tenants are willing to make that sacrifice,” Ortiz remarked on the latest cost-saving trend he’s noticed among customers.

Get low

Not much of a negotiator? Haggling can be as easy as just asking.

“Right now anything goes,” Ortiz explained. “Renters should always ask, the worst thing [landlords] can say is ‘no.’”

To most efficiently combat a landlord’s price, canvass the market so you’re well informed about prevailing rents for properties in the neighborhood. If you bring evidence showing that similarly sized pads are marked down, your landlord could very likely consider matching that price. Also keep in mind, some building owners aren’t quite sure what an appropriate price should be.

“Oftentimes, they probably don’t know. It’s a good possibility that it may be overpriced,” Ortiz related.

Donna Urbikas of Prudential Rubloff has recently noticed some landlords willing to negotiate on the price of a security deposit, often dropping it to a half a month’s rent. However, such reductions vary unit-to-unit, if there is carpeting or a pet living on the premises, for example.

On the other hand, with spring also comes the onslaught of new tenants who have graduated or are upgrading or downgrading from their current digs. So landlords may be less inclined to drop the rent right now. Just make sure you come equipped with a well-corroborated argument to effectively make your case.

“You’re not going to get anywhere by underbidding an owner,” Ortiz warned.

Rent furniture separately

Signing on for a fully furnished apartment is tempting, especially if you’re only going to be in town temporarily for school or work. However, furnished apartments are pretty much always more expensive than their unfurnished counterparts.

A Gold Coast one-bedroom apartment, for example, will usually be priced between $1,500-$1,600.  But if you rent the same apartment with furniture, the price could jump as high as $2,200-$2,400.

The thriftier option?

First, rent your apartment. Then, seek out furniture separately.

Cort Furniture Rental and Brook Furniture Rental are two such businesses that can fill your pad with all your necessities for periods ranging from three to six to 12 months. Some all-inclusive packages run as low as $300-$400. If you’re only interested in the basics, the price can get marked down even further.

Even if you’re someone who tends to jump on the bed, you’ll be covered for normal wear and tear and of course, fire, or flood damage. However, it’s unlikely that you’ll get away with trashing upholstery or furniture items.

Comparing the fourth quarter earnings results of three teen apparel competitors, it appears that Abercombie & Fitch Co. is struggling, compared with American Eagle Outfitters Inc. and Aeropostale Inc.

American Eagle and Aeropostale have have both benefited from consumers turning to their lower-cost clothing apparel.  Abercrombie & Fitch, on the other hand, has [...]]]>

Comparing the fourth quarter earnings results of three teen apparel competitors, it appears that Abercombie & Fitch Co. is struggling, compared with American Eagle Outfitters Inc. and Aeropostale Inc.

American Eagle and Aeropostale have have both benefited from consumers turning to their lower-cost clothing apparel.  Abercrombie & Fitch, on the other hand, has taken a hit on its sales as it’s kept its prices high during the recession.

The Pittsburgh-based retailer American Eagle took flight on March 10 when it reported profits jumped 81 percent to $59.3 million, or 28 cents per share.  American Eagle posted earnings of 33 cents a share excluding one-time impairment charges related to the company’s Martin + Osa stores, matching the estimates of analysts polled by Thomson Reuters.  Sales for the period ended Jan. 20 increased 7 percent to $972 million.

Aeropostale Inc.’s fiscal fourth-quarter earnings rose 42 percent to $96.6 million, or 99 cents a share on March 11 from strong sales.  Sales rose 16 percent to $801.2 million.  The results beat a 95-cents-per-share prediction by analysts polled by Thomson Reuters.

 Abercrombie & Fitch Co. didn’t perform as well as its competitors.  Abercrombie’s fiscal fourth-quarter earnings fell 31 percent as sales continued to decline.  Sales decreased 4.6 percent to $936 million.  Abercrombie posted a profit of $47.5 million, or 53 cents a share, compared with $68.4 million, or 78 cents a share, a year earlier. Excluding losses, earnings per share fell to 91 cents from $1.06.  This beat the estimate from analysts surveyed by Thomson Reuters, whose consensus was 87 cents a share.

Is there any hope for the high-priced teen apparel retailer?  Abercrombie & Fitch said it will be looking at closing U.S. stores that are draining its profits.

American Eagle also said it would be closing stores that have been a drag on its performance.  The company plans to close 28 stores in its Martin & Osa clothing chain and refocus on its core American Eagle brands.

However, in order to improve its sales Abercrombie & Fitch should look to reducing the price of its apparel.

MoneytalksMMM

How are your fellow Chicagoans saving money? Jeniece Pettitt talked to people in Daley Plaza to find out.

Polyus Gold's stock price has seen a slight bump on the London Stock Exchange. If they are able to merge with another company, the price could surge.

When a team is 7-57 and challenging for the worst record in the 64-year history of the NBA, it’s hard to see much hope on [...]]]>

Polyus Gold's stock price has seen a slight bump on the London Stock Exchange. If they are able to merge with another company, the price could surge.

When a team is 7-57 and challenging for the worst record in the 64-year history of the NBA, it’s hard to see much hope on the horizon. However, the New Jersey Nets, who need three more wins in 18 games to avoid attaining that dubious record, was recently named by Basketball Prospectus as the team with the brightest future in the league.

Some of that has to do with young talented players such as Devin Harris, Brook Lopez and Courtney Lee.  Some of that has to do with the fact that they have enough cap space to sign a big name free agent to a max deal.  But a lot of it has to do with the fact that they have a new owner, Mikhail Prokhorov, the second richest man in Russia with an estimated wealth of $13.4 billion, according to Forbes.  In September, his private investment fund, Onexim Group, made a deal to purchase an 80 percent stake in the Nets from its current owner, Forest City Ratner Companies Inc.  Prokhorov also negotiated for a 20 percent stake in the Barclays Center Arena, their future home in Brooklyn.

It’s this deal, as well as the savvy of Prokhorov, that makes his other companies, specifically Polyus Gold, a great investment idea in Russia.

They didn’t pick up enough golds at the Vancouver Olympics to please anyone back home, but Russia is a country rich in the precious metal as a resource.  Polyus, the largest producer of gold in Russia and Kazakhstan, appears poised to make a move to an international stage.  It trades under the symbol PLZL on the London Stock Exchange.  The Nets deal ties in with Polyus because Onexim owns stock in all of Prokhorov’s other companies.  Essentially, if one succeeds, they all succeed.

Prokhorov recently announced the company would attempt to merge with or acquire another company to enhance its global image.

At least one major analyst in Russia believes this to be an excellent strategy.

“Polyus Gold’s long term future could lie in a grand scale merger with an international gold miner, possibly done via an equity swap, which would likely be hailed by the market,” Mikhail Stiskin, a metals analyst at Troika Dialog in Moscow, wrote in a report in February.

Prokhorov has a lot of irons in the fire, and his ability to diversify is another reason why Polyus is such an attractive company.  In addition to Polyus and Onexim, Prokhorov also owns UC RUSAL, the world’s largest aluminum producer, which just raised a $2.2 billion IPO.  The mogul focuses mainly on mining, real estate and infrastructure, but likes to dabble in other industries.

Last July, Prokhorov reached an agreement to buy a controlling stake in RBC Information Systems.  Prokhorov also just had a project to manufacture hybrid cars that run on both regular gasoline and liquefied natural gas approved by the Russian government.

Back in the U.S., excitement and optimism abound for Prokhorov and his ownership of the Nets.  Bruce Ratner, the current owner of the Nets, is a real estate man first and a basketball man second.  Prokhorov financed CSKA Moscow’s basketball, hockey and soccer teams, and helped Moscow to two Eurobasket championships.  Any positive effect he has on the Nets will transfer across the Atlantic to his Russian companies.

In a statement, Bruce Ratner, CEO of FCRC, said, “Mikhail Prokhorov and Onexim will be great partners for this project.  Our company has a long-standing commitment to Brooklyn, and I am thrilled that smart global investors appreciate the exciting economic potential here.”

Jacquelyn Ryan/MEDILL

If you’re feeling unsure about the U.S. stock market, try looking Down Under.

Australia has managed to successfully weather this global recession. The economy is so strong, in fact, that the Reserve Bank of Australia raised the cash rate, Australia’s overnight inter-bank interest rate, on March 2. The Australian Securities Exchange, the [...]]]>

Jacquelyn Ryan/MEDILL

If you’re feeling unsure about the U.S. stock market, try looking Down Under.

Australia has managed to successfully weather this global recession. The economy is so strong, in fact, that the Reserve Bank of Australia raised the cash rate, Australia’s overnight inter-bank interest rate, on March 2. The Australian Securities Exchange, the leading index, has responded accordingly.

The S&P/ASX 200 has been gaining on news of increasing retail sales, strong banking health and improved energy earnings.

“ASX is on track to deliver a better-than-expected full-year profit following a rapid rebound in investor confidence and surge in capital raisings, trading activity and demand for over-the-counter services,” reported The Australian on Feb. 19.

The ASX and Sydney Futures Exchange both beat market estimates last month, according to The Australian.

Australia ranked 10^th as the most attractive location for foreign direct investment between 2007 and 2009, according to the United Nations Conference on Trade and Development’s World Investment Prospects Survey.  The World Bank ranked the country ninth out of 178 countries for overall ease of doing business in 2008.

So if you’re thinking of investing, here are three stocks to ask your broker about.

• The Australian & New Zealand Banking Group

Australia ranked third in the world for soundness of banks in the World Economic Forum’s Global Competitiveness Report for 2009-2010.  Of the region’s banks, the ANZ is one of the largest. It has been performing strongly, posting gains despite small recent dips. ANZ has gained almost 10 percent in the last three months, with a closing price rising 0.5 percent to $23.94 on Wednesday.

The company recently received regulatory approval to acquire Royal Bank of Scotland Group PLC’s Singapore and Taiwan businesses, according to the Wall Street Journal.

“Taiwan is a key market in our Greater China strategy and the acquisition gives ANZ a substantial Taiwan business with more than 1 million customers and a sizable commercial and institutional client base,” ANZ’s chief executive of Asia Pacific, Europe and America operations, Alex Thursby, said in a statement.

The company said it is working toward becoming the leading bank in the Asia-Pacific region.

• BHP Billiton Ltd.

Australia is known for its strong mining industry. The mining company is a major player in the industry and has turned a nice profit for their investors in recent days.

BHP Billiton has risen approximately 7 percent in the last three months, with a closing price dipping slightly by 0.4 percent to $43.24 Wednesday.  The central bank predicts the industry will continue to perform highly in the coming decade.

“BHP is expanding its Worsley aluminum operation in Western Australia, developing six oil and gas projects, adding extra capacity to its iron ore mines in Western Australia and doing initial work on its Jansen potash mine in Canada. It’s also studying further coal, iron ore and alumina projects,” Businessweek reported.

IG Markets reported Tuesday:

“In a commodities report from Royal Bank of Scotland, forecasts and ratings for iron ore stocks were boosted after the broker upgraded its iron ore forecast to a 60 [percent] hike from 20 [percent] previously. BHP Billiton’s earnings forecast was upped by 7 [percent] for FY10 [fiscal year 2010] and 19 [percent] for FY11 [fiscal year 2011], with its target price lifted to $57.10 from $51.59 and its buy rating maintained. The broker said it continues to believe BHP is one of the best-placed miners to take advantage of the global economic recovery and the subsequent increase in commodity demand.”

• Woolworths Ltd

The supermarket-retail giant in the country has been strong, posting growth of 11.4 percent in its earnings last month.

In fact, retail sales are forecast to grow to 3.8 percent in 2011 to 2012, from 2.6 percent in 2009 to 2010, according to Access Economics research.

Its New Zealand supermarket division has been performing well, helping to push the company’s earnings before interest and tax up 20 percent in the recent period.  The company is also refurbishing stores in Australia and New Zealand in its consumer electronics division that are also anticipated to be financially fruitful.

The company did recently announce it would be buying back AU$400 million (or about $355 million US) in stock.

IG Markets reported Tuesday:

“Australian business owners are as confident as they’ve been in months, suggesting the recent RBA [Reserve Bank of Australia] rate hikes haven’t dampened spending or growth too much in 2010. NAB’s [National Australia Bank] business confidence index rose four points to +19 from January, while business conditions increased five points to +8. In a statement from National Australia Bank, they said the February survey results suggest that growth momentum in early 2010 is still substantial, albeit somewhat below the very strong demand conditions of late 2009.”

It’s not just the stocks that are performing well. The country’s financial shape continues to improve as well.

The unemployment rate fell for the third consecutive month in December, making it the largest rise in employment since December 2006. The unemployment rate fell 0.2 percentage points to 5.3 percent on a seasonally adjusted basis, according to the Australian Bureau of Statistics.

The country’s gross domestic product grew 0.5 percent in September over the previous period and 1 percent year-over-year, according to recent numbers from ABS. Consumer price index also increased 0.5 percent in September over the previous period and 2.1 percent over the last year.

At the Voices for Illinois Children’s recent “Illinois Kids Count 2010 Symposium” at The Standard Club in Chicago, a panel discussion revolved around the topic of families in a time of economic crisis.

It was a gloomy outlook for children in the state as Illinois deals with high unemployment, poverty and enormous deficits.

Illinois [...]]]>

At the Voices for Illinois Children’s recent “Illinois Kids Count 2010 Symposium” at The Standard Club in Chicago, a panel discussion revolved around the topic of families in a time of economic crisis.

It was a gloomy outlook for children in the state as Illinois deals with high unemployment, poverty and enormous deficits.

Illinois Kids Count is a project of Voices for Illinois Children, an organization committed to improving the lives of children. The nationwide project is supported by the Annie E. Casey Foundation and uses the best available data to measure the economic, social, educational and physical well-being of children. And this year’s data are quite depressing.

The Voices for Illinois Children President Kathy Ryg started out the presentation, which attracted more than 230 guests, with information about child poverty.

“The most visible signs of the recession do not really reveal the full impact on children and families,” she said. “Children are the hidden causalities and voiceless victims of these difficult economic times.”

Poverty levels in 2008 for a family of four is an income less than $21,800 or a family of two earning less than $17,300 a year. Ryg said that based on information from previous recessions, child poverty will increase in Illinois and will continue to increase as the nation recovers. The Illinois poverty rate for 2008 was 17 percent, with 530,000 children affected.

“Projections indicate that child poverty will continue to rise, to 650,000 Illinois children,” Ryg said. “More than one in every five Illinois children will be living in poverty just two years from now.”

If that isn’t depressing enough, the Illinois Kids Count data shows that when a parent loses a job, a child is more likely to struggle in school, more likely to repeat a grade and more likely to have behavior problems.

There is also evidence that shows homelessness is on the rise. Currently there are 25,000 homeless children enrolled in Illinois schools.

The good news is there are programs in place that have proven to help these families. According to a 2009 analysis by the Center on Budget and Policy Priorities, food stamps and the federal earned income tax credit are the most effective programs in lifting children above the poverty level.

Ryg said that about half of food stamp recipients in Illinois are children. In 2009 there were 1.5 million residences using food stamps, an increase of 22 percent from 2007.

Michelle Saddler, secretary of the Illinois Department of Human Services, said that food stamp requests have gone up so drastically during the recession that their timeliness processing requests has declined. But luckily, improvements are on the way.

“We’ve just recently received federal funds to hire additional people and pay workers overtime for processing food stamp applications,” Saddler explained. “We also have Web stamps and telephone stamps now, so people don’t have to go into the office anymore.”

Ryg listed off other successful programs already in place in the state, such as preschool programs, child welfare reform, health insurance coverage and child-care assistance programs. But plunging revenues and a large debt could hurt decades of progress, she warned.

“The recession and the state fiscal crisis put these investments with proven outcomes in significant jeopardy,” she said. “Some programs have already experienced substantial budget cuts and more are clearly on the horizon. It is heartbreaking that children will struggle with these effects in their lifetime.”

Rick Mattoon, senior economist at the Federal Reserve Bank of Chicago, explained that there is not a light at the end of the tunnel, saying that because of the uniqueness of this recession, the nation will experience slower growth than normal in the upcoming years.

“There is a false sense of comfort when the economy is recovering and this makes budgeting very difficult,” Mattoon said. He added that Illinois’ biggest problem is its considerable debt. “Even if you look at significantly increasing tax revenue in the state, almost all of that revenue would have to go to paying down that debt before you look at any service expansion.”

So what can we do to keep these programs from getting slashed? Though there were not any tangible solutions discussed at the symposium, there were some ideas. Mattoon said it is the responsibility of state, federal and local governments to all work together to make sure children do not suffer from budget cuts.

“The notion of talking about children as investments is important,” he said. “The private sector and foundation sector have to really step in as well.”

John Bouman, the president of the Sargent Shriver National Center on Poverty Law, said that it is not just the recession that has caused problems for these programs. It is also the fact that there was a “fragile foundation” in Illinois before the recession hit.

“Tax reform and tax restructuring has to be a part of the discussion,” Bouman said. “There is a depressingly deep crisis, but there is a way through it. We need forthright, courageous and honest leadership to do it. We can’t wait. We have to do it now.”

In the current economic climate, baseball fans are hesitant [...]]]> Major League baseball’s opening day is less than a month away. Chicago Cubs and White Sox fans are as excited as ever to see their teams take the field in early April, but they may be planning to do so from the comfort of their own homes.

In the current economic climate, baseball fans are hesitant to spend the money it takes to attend a live game.

The cheapest available Cubs tickets for the upcoming season on StubHub.com, a widely used online ticker broker, are $4 infield upper deck seats at the April 29 game against the Arizona Diamondbacks. They are some of the least desirable seats at Wrigley Field, and they are for a Thursday game that begins in the middle of the work day. There are few other games for which the cheapest tickets begin around that price and the same seats to a game between the Cubs and St. Louis Cardinals on July 23 cost over $60.

A trip down to the South Side’s Cellular Field offers little relief. The cheapest available tickets are $6 dollar in-field upper deck seats to see the White Sox play the Kansas City Royals on Tuesday, May 4. Neither the seats nor the Sox opponent that night are particularly desirable. And, remember, that is the cheapest ticket available all season long; attending one of the other 81 home games this season will cost something more than that, most likely a good bit more.

What are Chicago-area baseball fans who were hoping to tighten their belts while still taking in America’s pastime to do?

Children enjoying themselves at a Gary South Shore Railcats game. Photo provided by the Railcats.

They might want to look into teams like the Gary South Shore Railcats, Shaumburg Flyers, and Windy City Thunderbolts– independent professional teams that call the greater Chicago metropolitan area home.

“A lot of our fans are baseball fans in general,” said Dave Salvi, manager of advertising and promotions for the Railcats. “I would say that a vast majority of our fans view us as a much better option monetarily in the region.”

Tickets to U.S. Steel Yard, where the Railcats play, begin at $7 but only go up as far as $10. Remember, that $7 to sit in a ballpark that holds just over 6,000 people, not in the upper decks of 40,000 stadiums like Wrigley and Cellular Field.

“I think they view the Cubs and the Sox as a luxury, not an everyday thing,” said Salvi. “I think we have established ourselves as a brand that is affordable, not just great baseball.”

“It’s affordable family entertainment,” said Scott Boor, assistant general manager and director of ticket sales for the Flyers. “Tickets range from $5 to $12”

The game’s best plays may not end up on ESPN, but at independent baseball parks around Chicago the grass is just as green, the beer is just as cold, and the tickets are a lot less expensive?