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Board Meeting
Winnetka Community House
Sep 13, 2018
11:00 AM – 12:00 PM
 
Board Meeting wit District Governor
Winnetka Community House
Oct 11, 2018
10:30 AM – 12:00 PM
 
Board Meeting
Winnetka Community House
Oct 18, 2018
11:00 AM – 12:00 PM
 
Board Meeting
Winnetka Community House
Nov 15, 2018
11:00 AM – 12:00 PM
 
Speakers
Aug 30, 2018
How the New tax Laws Effect All of Us, But Do Politicians Understand Any of It?
Sep 06, 2018
What it's like to be a Rotary District Governor
Sep 13, 2018
Club Assembly
Sep 20, 2018
Lake Michigan Beach Erosion
Sep 27, 2018
Federal Judicial Confirmations
Oct 04, 2018
Fixing the Infrastructure is Not So Simple
Oct 11, 2018
Official Visit
Oct 18, 2018
My Block * My Hood * My City
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WELCOME TO OUR CLUB! CELEBRATING 94 YEARS OF SERVICE. COME JOIN US CONNECTING FOR GOOD.
Winnetka-Northfield
Service Above Self
We meet Thursdays at 12:15 PM
Winnetka Community House
620 Lincoln Avenue
Tyrrell Room (winter) 111A (summer)
Winnetka, IL  60093
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Stories
Speaker on August 30: Mitch Peterson
 
How the New tax Laws Effect All of Us, But Do Politicians Understand Any of It?

Professor Petersen has a research project that explains the large run up in cash on the balance sheets of US firms (from $800B in 1994 to $3.2T in 2014). The answer is taxes. Most of the run up occurs in the foreign subsidiaries of these firms (think Apple Ireland), an in a small set of industries and firms.

The TCJA (Tax Cut and Jobs Act) dramatically changes the way we tax international operations (and domestic operations), and so changes what was is going to happen up front.

He will explain why this is or is not a problem (with all the cash trapped does that slow US growth – the view of Congress), how the changes in the taxes (both international and domestic) alter incentives to invest and thus what it means for the economy. He is not a macro economist, but he teaches a tax class at Kellogg. Taxes of course have macro (and micro economic) effects.

Mitchell Petersen is the Glen Vasel Professor of Finance and director of the Heizer Center for Private Equity and Venture Capital at the Kellogg School of Management, Northwestern University. 

Professor Petersen's research is in the area of empirical corporate finance: the question how firms choose which projects they should invest in and how they should fund those projects. His research has included exploring: how small firms are funded and the importance of lending relationships, how information technology has altered the way in which banks lend, how the changes in the supply of capital alter a firm’s access to capital, how firm’s manage risk, how the cost of funding changes over the seasons and why, as well as the role of international taxation in the firm’s investment decision. He was awarded the Smith-Breeden Prize for Outstanding Paper in the Journal of Finance in 1995 (for his paper "The Benefits of Lending Relationships: Evidence from Small Business Data") and the Michael Brennan Award for Best Paper in the Review of Financial Studies in 1998 (for his paper "Trade Credit: Theories and Evidence") and 2013 (for his paper “Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act”). He was runner-up for the Brennan Award in 2008 (for his paper “Does the Source of Capital Affect Capital Structure”) and 2010 (for his paper “Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches”). The later paper also received the Review of Financial Studies – Editor’s Choice Award in 2010.

Professor Petersen was voted the Kellogg Professor of the Year in 2000, the Executive MBA Outstanding Professor in 2008, 2010, 2011, 2013, 2015, 2016, 2017, and 2018, and the Kellogg Alumni Professor of the Year in 2010. He was awarded the Sidney J. Levy Teaching Award in 1996, 1999, 2001, 2003, 2006, 2008, 2010, and 2012.

He is a research associate with the National Bureau of Economic Research (NBER) and has been an Associate Editor of the Journal of Finance and the Review of Financial Studies. He was formerly on the Board of Directors of LR Nelson and Moody’s Academic Advisory Research Committee. He currently serves as strategic advisor to OCA Ventures. He received his Ph.D. in Economics from the Massachusetts Institute of Technology.

 

Recap of August 23
There were 28 members in attendance at this week’s meeting.  We had two guests:  Mary Hanson, a retired special education administrator and a Citizens Climate Lobby member was the guest of Ned Meissner, and Scott Birkenstein, Erik’s son.  Past-president Tom Nash presided over the meeting in the absence of Bill Leske.  Tom announced that it was Randy Reeves birthday this week and that Sam Badger was celebrating his 5th year of membership in our club.
 
Joe Nash informed the club that he had, along with Todd Stevens and Rich Lalley, organized a benefit concert for Operation Warm on the evening of October 5 at the Kenilworth Club.  Tom is looking for $500 sponsors for the event.  There will be dinner, dancing and a cash bar in addition to both a silent and a live auction as well as a raffle and games of skill.  The evening will feature classic rock and blues music.  A great time for all is in store.  Mark your calendar for October 5!!!
 
Ned Meissner announced that he will be spending the month of October working on the Ecuador Farm Project that he presented a program about a few weeks ago.  He invited members to consider joining him for the last week to spend a few days on the farm and several days touring the country.  See Ned if you have any interest.
 
This week’s Happy Buck$ came from Erik Birkenstein in honor of his son who recently caught a 4 lb. bass and sunk a 30-foot putt to help Scott and his dad win a father-son golf tournament.  Also, from Maire Kuipers who celebrated her 3rd anniversary.  Keith Reed contributed $5 in honor of Wes Baumann who is ‘scribing’ his last meeting after approximately 5 years of service.  Tony threw in some Happy Buck$ for Marie’s recovery from her ankle injury.
 
Tony followed up with Dig ‘n Grin by acknowledging the opening of school with some education humor.  He read how elementary grade students complete the proverbs that the teacher started.
 
David Birkenstein introduced the day’s speaker, Mike Zarillo, a retired Information Technology executive who wanted to do something in retirement that made a difference for a non-profit organization.  He is now the Illinois State Coordinator for the Citizens Climate Lobby, which not only works to increase awareness to the climate problem but suggests a non-political solution.  Each year the group talks to nearly every federal legislator.  They try to understand where the legislators stand on the climate change issue and then offer suggestions on what can be done to help the situation.
 
Mike said that the climate has always been changing from the beginning of the universe.  However, the current rate of change is of great concern to the vast majority of scientists.  Carbon dioxide (CO2), which comprises about 0.04% of the atmosphere, plays a critical role.  The molecules permit the sun’s radiant energy to pass through to the earth, but they tend to hold the heat reflected off of the earth’s surface.   It is also the compound that is essential in photosynthesis.  The problem is that as CO2 increases, the greenhouse effect becomes amplified and temperatures begin to rise as less heats escapes into space.  Burning coal, oil and gas increases the amount of CO2  in the atmosphere thus contributing to the greenhouse effect.  There has been a  tremendous increased use of these fossil fuels, especially since 1950.  There had been 280 parts per million of CO2 for the past 10,000 years now we have over 400 ppm.  This is why we have global warming.
  
The average global temperature has risen 1.8ᵒ F since 1880.  The sea level has risen about eight inches in the last century.  Oceans absorb more than 90% of the heat trapped by human-produced greenhouse gases, as the polar ice caps continue to melt the sea level will continue to rise.
 
Mike explained the climate change is not the end of cold weather or the end of winter or end of snow.  Climate changes is the slow, steady increase of average global temperature, more intense storms and extreme weather events, lengthening of summer and reduction of winter, more droughts and major rain events.  Also, more disruptions to farmers’ crops, changes in migration patterns and a dramatic increase in record temperatures, both high and low.  These changes cannot be attributed to the sun as it is cooling slightly and it can’t be changes in the earth’s orbit as we would be getting cooler.
 
Today 97% of the scientists are convinced, based on the evidence, that climate change is a serious problem.  Unfortunately, only one in eight Americans are aware of this climate consensus.  If the current emission trends continue Illinois will be hotter in 2100 than Texas is today.  The Midwest may see losses similar to the Dustbowl of the 30s.
 
Mike stated the solutions to de-carbonize (and grow) the global economy exists and are affordable.  Wind, solar and hydro are the current answers.  So, if carbon is the problem, put a price (tax) on it.  Remember the price of a package of cigarettes 40-50 years ago and how many people smoked.  It got so expensive that it became easier to conquer this addiction.  Many countries have already or are considering a carbon tax.  This is a way to ‘help’ consumers make a decision that will be beneficial for all of mankind. 
 
Climate Change Lobby’s solution is a carbon fee and a dividend.  They suggest a fee on all fossil fuels at the source (mine, well or port).  All of the revenue generated would be returned to households equally.  They would also have a border adjustment on goods imported from or exported to countries without an equivalent price on carbon.  It would raise prices on goods that need carbon and make them more expensive.  Non-fossil products would become more competitive.  The CCL calculates that the carbon fee and dividend would produce a 31% reduction in carbon emissions in 10 years and a 50% reduction in 20 years.  They further project that the dividend each household would receive would be $288 per month in 10 years and $396 in 20 years.
 
There is a Congressional Climate Solutions Caucus composed of 43 Republicans and 43 Democrats that acknowledge climate risk and support economically viable solutions.  By depoliticizing the issue and making it safe and politically smart for legislators to tackle we would have a real chance to do something smart for the country.
 
Mike concluded with ways to get involved and help in this important matter.
 
 
Meeting Assignments
August 30
GreeterRich Lalley
Dig-n-GrinRobert Mardirossian
Thought Ned Meisner
Sgt-at-ArmsJoe Nash
ScribeKeith Reed
 
September 6
GreeterChuck Norton
Dig-n-GrinTom Nash
Thought Greg Nelson
Sgt-at-ArmsLee Padgitt
ScribeJohn Thomas
 
September 13
GreeterBrooke Peppey
Dig-n-GrinRandy Reeves
Thought Bob Sanfilippo
Sgt-at-ArmsFred Schwimmer
ScribeKeith Reed
 
 
 
 
Trees that Feed and Sustain Families in Haiti
 
A proposed Rotary Foundation Global Grant Project
 
We are pleased to announce our formal agreement with the Rotary Club of Les Cayes, District 7020, Haiti, to partner on a Global Grant project that will bring sustainable jobs and locally grown protein rich food to the Jeremie region of Haiti. 
 
We are looking to raise approximately $20,000 for this project, which when matched $2.50 to $1 by The Rotary Foundation, will provide $70,000 in funding for this project. Rotary Clubs interested in participating should email info@wnrotary.org. 
 
Areas of Focus
¨ Economic & Community Development
¨ Maternal & Child Health
¨ Bonus: Positive Environmental Impact
 
Project Objectives
¨ Restore and expand breadfruit production in Jeremie region of Haiti that was devastated by Hurricane Matthew
¨ Create a local, solar-powered breadfruit processing facility
¨ Provide vocational training to farmers, facility workers
¨ Develop the domestic and export market for breadfruit products
 
Planned Activities
¨ Propagate and grow 5,000 breadfruit saplings
¨ Provide ready-to-produce tress to small holder farmers and coop orchards
¨ Fund processing equipment for new facility (building funded by cooperating NGO)
¨ Provide packaged breadfruit breakfast meals to local schools
¨ Provide vocational training to farmers and workers
 
Expected Outcomes
¨ Produce 2.5 - 5 million lbs. of breadfruit annually
¨ Economic impact on region- $470,000 - $900,000 annually
¨ Good jobs and businesses for local population in poorest region of Haiti
¨ Provide nutritious meals to school children
¨ Develop an export industry for Haiti
 
Contribute to this project with the button below. Donations will be matched 2.5 to 1 by The Rotary Foundation. 
 
       
 
 
Birthdays & Anniversaries
Member Birthdays
David Birkenstein
August 19
 
John Thomas
August 21
 
Randy Reeves
August 28
 
Join Date
Brooke Peppey
August 1, 1996
22 years
 
Louise Holland
August 1, 1998
20 years
 
Peter Skalski
August 1, 1992
26 years
 
Samuel Badger
August 22, 2013
5 years