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Rauner wouldn’t move police and fire to 401(k)

Wednesday, Apr 16, 2014

Posted by Barton Lorimor (@bartonlorimor)

* From Chicago Tonight…

(Bruce) Rauner says he would support freezing pensions for current workers and moving them into a separate 401K-style system for future work. But, he says police and fire officials would be exempt from that.

“The two groups, I believe, that should have a special deal that’s much better and different than voters, are police and firefighters because they risk their lives, and that’s a different arrangement,” Rauner said.

Rauner did not offer specifics on what a pension deal for police and firefighters would look like. But his stance could be beneficial to gaining the endorsement and support of state police and fire unions.

The attempt to split the union base has already drawn ire remarks from AFSCME…

“Of course police officers and firefighters put their lives on the line to serve the public. Of course they earn their pay and deserve their pension,” said AFSCME spokesperson Anders Lindall. “But I’d like Bruce Rauner to tell a correctional officer in an overcrowded state prison how he thinks their service is worthless. I’d like Rauner to explain to a parole agent that their sacrifice isn’t as worthy. I’d like Rauner to tell a child protection worker knocking on the door of an abusive household that they don’t put themselves in harm’s way. He should explain to EMTs and highway maintainers and employees at Chester Mental Health Center, where the state commits individuals found not guilty of crimes by reason of insanity, that their public service isn’t sufficiently dangerous in Bruce Rauner’s mind to merit the pension they earned. He’s not going to do that, because this billionaire is so out of touch he probably doesn’t know these men and women exist.”

Police and fire unions would be a valuable ally. They bring one heckuva ground game to the table among other things.

Their political strength is the primary reason they were excluded from the Chicago pension bill, which the Tribune editorial board called on Gov. Quinn to sign…

The Chicago pension crisis that burdens an array of Chicago funds is Chicago’s problem and Chicago, to its credit, at long last has negotiated a partial solution. Now, though, Chicago needs that gubernatorial signature.

Every year, whoever is governor of Illinois signs a mound of geography-specific bills that, as laws, give individual local governments leeway to address their local problems. This bill is no different. If Quinn signs the bill and City Hall raises taxes, that’s on City Hall, not on Quinn. It would be preposterous for opportunistic Republicans or aggrieved city taxpayers to blame him for signing the agreement that City Hall negotiated with the unions, City Hall wrote into final form and City Hall persuaded legislators to pass.

So if the City Council raises property taxes as a result of this bill, Gov. Quinn should not be blamed for signing this negotiated measure.

But in the editorial’s closing lines…

Still worried that you’ll be blamed for signing a pension bill affecting city laborers and municipal workers that permits a property tax hike? Too late:

In late 2010 you signed a pension bill affecting city police officers and firefighters that … permits a property tax hike.

Governor, those who criticize your tax policies already have their reasons. Signing this bill shouldn’t add to that list.

Present Pat Quinn is being criticized for Past Pat Quinn signing a bill that could mean higher property taxes if local governments short their pension payments. However, Present Pat Quinn should sign this pension bill that contains similar mechanisms because it shouldn’t be held against Future Pat Quinn?

The Governor isn’t giving any public indication as to how he might rule on this bill. To complicate matters further, Rauner encouraged him earlier this week to veto the bill.

* Mark Brown devoted his column to the difficulties the police and fire unions could pose to the Mayor when he comes back to town to overhaul the remaining pension systems…

Mayors across the state have joined forces in hopes of getting relief from their own soaring police and fire pension costs if the Legislature moves to help Chicago.

Their involvement creates both opportunities and complications for Mayor Rahm Emanuel as he tries to finish what he started with fixes to the pension funds of city municipal workers and laborers.

The opportunity is that Emanuel can expect to have most of those mayors — Democrat and Republican — in his corner next time as he lobbies legislators on police and fire pensions.

The complication is that he also could find every current and retired police officer and firefighter in the state converging on Springfield to oppose him.

* Meanwhile, some alderman and the Cook County Clerk are proposing TIF dollars as a way to offset at least some of the potential property tax increase. Here are the main parts of David Orr’s proposal, which Greg Hinz doesn’t expect to go over well at City Hall…

Orr’s first recommendation is to pare down existing TIFs by removing some properties to immediately return money to communities. If just 10 percent of the TIF increment is returned to the rolls, this administrative move could result in Chicago taxing districts’ ability to levy an additional $38.5 million annually, of which $10 million would be available to the city and $24 million for Chicago Public Schools, according to an analysis by the Clerk’s office.

Orr’s second proposal requires the state legislature to take action to increase the frozen value of TIFs by the Consumer Price Index (CPI) each year and capture the increase as recovered TIF value. Chicago taxing bodies could recoup an estimated $5.7 million each year – $1.5 million for the city and $3.5 million for CPS – by increasing their levy and applying the increase to such things as pension costs.

Orr reiterates his stance that all TIF districts should be audited and those audits made available to the public – a recommendation of the 2011 TIF Reform Task Force not yet implemented. Chicago officials say $1.5 billion of its $1.7 billion TIF fund is committed to projects, but the public has no way to judge whether each project is worthwhile without a comprehensive audit and open debate.

* There are other ideas…

Ald. Bob Fioretti (2nd) has already proposed a 1 percent commuter tax on 620,000 suburbanities who earn their paychecks in Chicago.

On Tuesday, Ald. Will Burns (4th) took the wraps off his ideas. They include a congestion fee that would require motorists driving into the downtown area to pay a toll for the privilege.

“The property tax has to be part of the mix. But we also need to find other revenue options that are fairer than the property tax. If you’re able to generate more revenue from other sources, maybe the property tax goes down,” Burns said.

- Posted by Barton Lorimor   5 Comments      


Question of the Day

Wednesday, Apr 16, 2014

Posted by Barton Lorimor (@bartonlorimor)

* Earlier this morning I posted some of the “rules of the road” bestowed upon every Capitol Fax intern.

Rule #1: Assume everyone is wearing a wire.
Rule #2: Don’t go home with an intern.
Rule #3: Friends aren’t necessarily the ones that pick-up the check. Friends are the ones that bring you chicken soup when you’re sick. Stick with your friends.

There are a few others, but you get the gist.

Question: What advice would you give to someone that might be joining a political campaign for the first time?

We have done a QOTD like this in the past, and the responses were exceptional. I figure the timing is just about right for us to revisit the topic. I think I even saw a comment suggesting such a QOTD, so have at it.

- Posted by Barton Lorimor   58 Comments      


Keep calm, and Scribble on

Wednesday, Apr 16, 2014

Posted by Barton Lorimor (@bartonlorimor)

* It should be another fairly quiet day. I’ll try to get a few more posts up this afternoon. In the meantime…

- Posted by Barton Lorimor   2 Comments      


Quinn raises what Rauner contributes

Wednesday, Apr 16, 2014

Posted by Barton Lorimor (@bartonlorimor)

* From Crain’s…

Gov. Pat Quinn’s campaign fund is bursting with nearly $8.8 million, giving the Democrat a 6-1 financial advantage over Republican challenger Bruce Rauner, an early sign of what is likely to be one of the most expensive elections in Illinois history.

Mr. Rauner raked in nearly $9.2 million during the first three months of 2014, a crucial period of fundraising that included the March 18 primary, in which he defeated state Sen. Kirk Dillard by a closer margin than expected.

But Citizens for Rauner Inc. spent nearly all that money, leaving the campaign with almost $1.4 million available on March 31. Fundraising is not expected to be an issue for Mr. Rauner, a private-equity investor from north suburban Winnetka who already has reportedly contributed $6.6 million to his own campaign over the past 13 months.

So what if he spent it all? Even if Quinn has more cash on hand at the moment, the Governor won’t be writing himself checks like Rauner…

Of the more than $9 million raised — more than half, $5.3 million — came from Rauner’s own pocket, according to campaign spokesman Mike Schrimpf.

Quinn didn’t raise more in the opening quarter than Rauner contributed.

Rauner’s quarterly report is here. Gov. Quinn’s is here.

* Mayor Emanuel reported $7 million in cash on hand…

Nearly $104,000 came from political donors in Texas, courtesy of a fundraiser thrown in Austin by the concert promoters who put on the Lollapalooza music festival in Grant Park every summer. The fundraiser, hosted at a private home by the co-founders of C3 Presents, coincided with the mayor’s trip to sell Chicago to tech-savvy entrepreneurs attending Austin’s South By Southwest festival.

* Related…

* Oberweis says he and Durbin are both millionaires

* Carl Officer forms SuperPAC to support GOP candidate: “I am sure we will hear the moans and groans from our Democrat friends regarding our decision in this endorsement and support of a Republican,” Officer said. “However, we ask them to consider whether we do not need a totally different approach for all Illinoisans to have a chance to carve out their share of that American dream.”

- Posted by Barton Lorimor   13 Comments      


Assume everyone is wearing a wire, and stick with your friends

Wednesday, Apr 16, 2014

Posted by Barton Lorimor (@bartonlorimor)

* One of the biggest lessons Rich tries to install in his interns, myself included, is “Rule #1″ - Assume everyone is wearing a wire.

That’s not supposed to make one paranoid, and unable to trust anyone. There are other lessons for that. Rule #1 taught us not to do anything we wouldn’t want our mothers to read about in the morning paper.

I keep thinking about Rule #1 as I read these stories about Derrick Smith…

Now, with his trial on bribery charges just months away, federal prosecutors have filed court documents alleging smith actually admitted to the scheme moments after he was arrested by FBI agents in 2012.

The documents read:

“At numerous times during the interview Smith stated ‘I f—ed up’… Smith stated that it was all about getting money to put money back out on the streets in the hands of his campaign workers.”

Smith’s attorneys are fighting to keep the alleged confession out of the trial, arguing Smith was falsely led to believe he was cutting a plea deal.

More…

According to the charges, the informant told investigators Smith started talking about needing help with fundraising almost as soon as he was appointed to fill a vacated House seat in March 2011 and was willing to accommodate reasonable requests from donors who wanted something in return for their contributions. The FBI had the informant tell Smith about the day care center, and Smith offered his help for $5,000, a figure he later raised to $7,000, prosecutors alleged. The day care center — while real — was not actually applying for a state grant, authorities said.

They’re out there, man.

* Rule #3: Friends aren’t necessarily the ones that buy steak dinners or always have a joke. Friends are the ones that would bring you chicken soup when you’re sick. Stick with your friends…

Lawyers for Illinois Treasurer Dan Rutherford are asking a federal judge to dismiss a lawsuit by an ex-employee alleging sexual harassment and forced political work on state time.

The motion in U.S. District Court in Chicago seeks to end the lawsuit by Edmund Michalowski.

Michalowski worked for the former Republican candidate for governor for three years before leaving in January and filing the lawsuit

More…

In briefs filed in federal court this week, lawyers say Rutherford’s behavior toward an ex-employee “amount to nothing more than minor, offhanded comments … and innuendo” and do not form the basis of a legal case.

- Posted by Barton Lorimor   20 Comments      


Morning Shorts

Wednesday, Apr 16, 2014

Posted by Barton Lorimor (@bartonlorimor)

* Rich is on vacation this week, and Oscar hasn’t quite mastered home row. That means you are stuck here with me for the time being.

* Feds: Indicted State Rep. Smith admitted to accepting cash bribe: The documents read: “At numerous times during the interview Smith stated ‘I f—ed up’… Smith stated that it was all about getting money to put money back out on the streets in the hands of his campaign workers.” Smith’s attorneys are fighting to keep the alleged confession out of the trial, arguing Smith was falsely led to believe he was cutting a plea deal.

* CTA weighs two options for Red Line extension route

* Gresham staff, parents protest plans for CPS ‘turnaround’

* Ameren touts power grid upgrades; critics are skeptical

* Cubs’ Ricketts: It’s ‘our priority’ to stay at Wrigley

* Addiction treatment specialists say state funding is too low: If the temporary income tax were allowed to drop from 5 percent to 3.75 percent next year as scheduled, the Illinois Department of Public Health would lose $20 million in funding for its drug treatment programs. IDHS estimates it would have to eliminate services for 15,922 people.

* Strip club tax for rape centers falls short of projected revenue

* Bill Brady: Illinois budget likely to ‘kick the can down the road’

* Lawmaker kicks off new campaign for Chicago casino: “Basically the gaming board is a good regulator and they’ve figured out bad things in the existing casinos,” Mr. Quinn’s press office quotes him as recently saying. “Chicago wanted to regulate itself. I think they’ve pretty much given that up and they understand the gaming board will call the shots. That’s principle number one.” I’d take that as a sign that Mr. Qunn is warming up to the Rita bill. On the other hand, City Hall is not there, at least not yet. “We agree with the Governor’s prior statements of not focusing on gaming until our pensions have been resolved,” his spokeswoman, Sarah Hamilton, told me yesterday.

* SJ-R: Approve statute of limitations change for Illinois rape cases

* Southern: It will take patience, but project will succeed

* New Illinois State Police cruisers are parked

* House bill urges schools to make digital emergency plans

* H-R: Fair maps battle enters new phase

* Plastic Bag Ban Vote Delayed by Council Committee

* Normal’s city manager discredits claims by Illinois Policy Institute: “I don’t know what would render them to be considered an expert - what special qualifications they have, first of all,” said Peterson. “I don’t know that. I don’t know why they should be considered a credible critic.” Peterson said most, if not all, the information the Institute claims is missing is there…and it’s not hard to find.

* McLean County Board denies auditor’s furniture expense

* Edwards Confirms Run For (Springfield) City Treasurer In 2015

* Aldermen Want To Restrict Video Gambling

* Marion bumps up its hotel tax

- Posted by Barton Lorimor   9 Comments      


PREVIOUS POSTS »
* Rauner wouldn't move police and fire to 401(k)
* Question of the Day
* Keep calm, and Scribble on
* Quinn raises what Rauner contributes
* Assume everyone is wearing a wire, and stick with your friends
* Morning Shorts
* Yesterday's blog posts

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