SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Poison pill?

Thursday, May 9, 2013

* It’s either a poison pill, as the Sun-Times says, or a way to make the Senate’s pension reform bill save more money. We will soon find out

The plan that advanced in the Senate coincides with possible movement on another pension issue in the House, where Madigan has scheduled a hearing Thursday to craft legislation to make downstate and suburban school districts shoulder the state’s cost of funding pensions for educators in their school systems.

The idea to end what Madigan has derided as a “free lunch” for those districts has faced resistance from Republicans and suburban and Downstate Democrats, who worry the pension cost shift from the state could result in higher property taxes.

On Wednesday, Madigan predicted that his chamber will “get the job done” on the cost shift.

Since Cullerton’s plan can be tweaked in the House, there is potential it could merely be a poison pill that could be added as an amendment to help quash the Senate president’s plan in Madigan’s chamber. A defeat like that would leave the Madigan pension-reform version as the only game in town as a scheduled May 31 legislative adjournment looms.

Asked if he intended to move the cost shift as its own piece of legislation or tack it on an existing bill like the Cullerton one, Madigan told the Chicago Sun-Times, “We’ll get to that later.”

Your thoughts on this?

- Posted by Rich Miller        


34 Comments
  1. - Pinker - Thursday, May 9, 13 @ 9:49 am:

    Way too much tinfoil for me.


  2. - Anon - Thursday, May 9, 13 @ 9:50 am:

    Either downstate/suburban districts start covering Chicago’s pension costs via the state, or they start paying their own way like Chicago does.

    I can’t see how that is an unfair statement in any way, and opposition to it is ridiculous.

    Unless I’m missing something?


  3. - Dirt Diver - Thursday, May 9, 13 @ 9:50 am:

    Madigan has wanted cost shift for years. Other than actually taxing retirement income, I believe the cost shift to be the only other Constitutional option that significantly reduces the State’s payment. I truly believe Madigan believes that benefit cuts are un-Constitutional as we was in attendance when the Pension clause was added to the Constitution. At the end of the day, Madigan cares most about shifting costs to the schools, he just chose another strategy this year in order to get it done.


  4. - Obamas Puppy - Thursday, May 9, 13 @ 9:52 am:

    He is telegraphing his move on purpose.


  5. - Anon. - Thursday, May 9, 13 @ 9:56 am:

    ==“We’ll get to that later.”==

    Should be on the State seal. But I do believe the Speaker is serious about shifting the costs, and using the proposal as a poison pill to kill alternatives to SB 1 would be a sacrifice of a long-term goal for a short-term advantage, which not how he got the job or has kept it so long.


  6. - Robert the Bruce - Thursday, May 9, 13 @ 10:05 am:

    If MJM thought cost shift could pass, I’d think that he’d have put it into his own pension reform bill in the first place.


  7. - Fred's Mustache - Thursday, May 9, 13 @ 10:23 am:

    === If MJM thought cost shift could pass, I’d think that he’d have put it into his own pension reform bill in the first place. ===

    Not necessarily. There are probably legislators that voted against SB 1 that would support the cost shift and vice versa. MJM was smart to separate the cost shift proposal into a separate bill.


  8. - Robert the Bruce - Thursday, May 9, 13 @ 10:28 am:

    Good point, ’stache. I’m skeptical of cost shift passing in any form, simply because downstate+suburban legislators outnumber city of Chicago legislators.


  9. - east central - Thursday, May 9, 13 @ 10:33 am:

    Not sure about it being used as a poison pill but obviously different sets of members would be voting in favor of the two measures. I have not seen a cost shift proposal that makes sense to me.

    At present districts and universities can enhance salaries while the State is generally responsible for the impact on pension costs. Shifting normal costs entirely to the districts and universities results in a similar inappropriate incentive but in reverse–if passed then the State can make changes in pensions that are passed to the districts and universities. It also makes the districts and universities responsible for normal cost changes due to recessions, other bad investment returns, and actuarial adjustments.

    Normal costs should be shared between the State and the districts and universities so that all parties have an incentive to consider the impact of salary and pension changes on normal costs and so that both share the other risks.


  10. - Plutocrat03 - Thursday, May 9, 13 @ 10:37 am:

    “Either downstate/suburban districts start covering Chicago’s pension costs via the state, or they start paying their own way like Chicago does.”

    You are missing something. The State has been subsidizing Chicago pensions for decades. If you want everyone else to pay their costs, then Chicago should as well. Since the salaries in Chicago are larger than most of the State and the number of pensioners is larger, who do you think will take the biggest hit?


  11. - Pot calling kettle - Thursday, May 9, 13 @ 10:44 am:

    Cost shift brings in the necessary revenue;however, if it comes from the education fund, districts will suffer. Any cost shift needs to come with authority to levy in the retirement fund. Not popular, but the root of this problem has always been revenue. No new revenue, no long term fix!


  12. - Sparky - Thursday, May 9, 13 @ 11:19 am:

    Some of you need to read this from Dale Righter:

    http://www.robdailynews.com/main.asp?SectionID=19&SubSectionID=120&ArticleID=11001


  13. - Keep Calm and Carry On - Thursday, May 9, 13 @ 11:30 am:

    Thoughts? Cullerton should do the same to Madigan via an alternate “tweak” to Madigan’s bill.

    If we’re having a gun fight, let’s make it fair and break out the guns on both sides.

    No sense letter the House have all the leverage, is there Mr. Cullerton?


  14. - Madison - Thursday, May 9, 13 @ 12:04 pm:

    If I were a Madigan, rather than a Madison, and my daughter had designs on electoral domination, why would I take on every state worker, teacher, public retiree and now downstate property taxpayer, as well as Cullerton?
    I believe there must be tea leaves to read here.


  15. - Norseman - Thursday, May 9, 13 @ 12:18 pm:

    Cullerton still controls the fate of SB 1 in the Senate. This is all coming down to who is willing to blink first. Cullerton has a history of being the first to blink. One of these days he and the Senate Democrats will get tired of being dictated to by the Speaker. Especially after Cullerton’s been so deferential to the Speaker and IMHO, it’s not been reciprocated.


  16. - Norseman - Thursday, May 9, 13 @ 12:30 pm:

    Madison, no tea leaves necessary; he knows that the choices are so horrible Lisa will still look better than the alternatives.

    Let’s go through the list:

    Quinn - he’ll sign whatever pension bill that is put before him so the victims (the employees and retirees affected by the reductions) will not be inclined to support him. In addition, he is rightfully viewed by most folks as being incompetent. Lisa has a rep as being quite competent.

    Brady - He couldn’t beat Quinn - nuff said.

    Dillard - He couldn’t beat Brady, plus he’s a big drumbeater of the Madigan plan. Yes, the victims will want to support him over Lisa.

    Rauner - If he can revive his disintegrating campaign, he’s put himself out there as a bigger threat to the victims.

    Rutherford - Another Republican drumbeater for pension reductions. Victims would not do any better here.


  17. - Ruby - Thursday, May 9, 13 @ 12:33 pm:

    Madigan has made it clear that the pension cost shift will be in a separate bill. But not to worry, there are already enough poison pills in Cullerton’s bill, SB2404.


  18. - Diogenes in DuPage - Thursday, May 9, 13 @ 1:01 pm:

    Chicago Public Schools gets a disproportionate share of State aid to schools, even after taking poverty into account. The suburban and downstate schools have the numbers to back this up.
    That said, the cost shift, if phased in over 10 years or so, would be doable and would give local school boards the 2×4 to the forehead that they need to stop pension sweeteners that others end up paying.


  19. - L.S. - Thursday, May 9, 13 @ 1:30 pm:

    Madison - It’s called clearing the deck. Taking on the tough stuff to make a cleaner pathway.


  20. - Ruby - Thursday, May 9, 13 @ 2:38 pm:

    SB2404 has passed in the Illinois Senate.


  21. - Madison - Thursday, May 9, 13 @ 2:45 pm:

    Portions of the points you make have merit regarding crummy opposition! Although I think Dillard is the ultimate GOP nominee. I havebeen in politics long enough to know that a voter will not go out of his or her way to reward good leadership unless he or she would have voted anyway; however, a voter will not miss a chance to stick it to a politician they feel has done them wrong.


  22. - Norseman - Thursday, May 9, 13 @ 2:59 pm:

    Hearing the debate on SB 2404 I’m ashamed of today’s Republican party and especially ashamed of the Senate Republicans. I’m happy that despite my opposition Linda Holmes was able to get re-elected to make such a fine speech today.

    To hear Radogno get up and say that one of the reasons for her opposition is that it will make it harder to take away health benefits in the future sickened me.

    I wonder how many members of the Senate Republican caucus can look their legislative aides and staff in the face and tell them they’re appreciated after making it clear that their financial interests are meaningless to them.


  23. - Original Rambler - Thursday, May 9, 13 @ 3:49 pm:

    That said, the cost shift, if phased in over 10 years or so, would be doable and would give local school boards the 2×4 to the forehead that they need to stop pension sweeteners that others end up paying.

    Amen to that!


  24. - RNUG Fan - Thursday, May 9, 13 @ 3:59 pm:

    Norseman 4 Senate republicans voted for 2404 and 3 did not vote. Only 2 Dems Biss and Steans against.
    This is equal to and 80 -32 vote in the house where all the momentum people that were saying 62 was such a huge win?
    What did Madigan hold his latest stunt against Cullertons big win?


  25. - Endangered Moderate Species - Thursday, May 9, 13 @ 4:01 pm:

    ===Unless I’m missing something?===

    Anon, You are missing the disbursement formula to school districts. The system is weighted for the CPS to receive more funds than other school districts.

    Without addressing the disbursement formulas, any downstate or suburban representative supporting a straight cost shift will be opening themselves up to heavy criticism and challenges in their home districts.


  26. - Dirt Diver - Thursday, May 9, 13 @ 4:52 pm:

    ====I wonder how many members of the Senate Republican caucus can look their legislative aides and staff in the face and tell them they’re appreciated after making it clear that their financial interests are meaningless to them.====

    Exactly. Yet you talk to members of the SGOP staff who remain to be all about sticking it to the public employees in regards to their pensions. They might change their tune if their bottom lines were impacted. Although I’m sure many SGOP staffers have the belief that they will depart to the private sector.


  27. - RNUG - Thursday, May 9, 13 @ 5:10 pm:

    So now we have each leader’s “preferred” plan passed by their chamber. Now we get to see if they will call the other plan for a vote … or if it will be a standoff until the last possible second.


  28. - Norseman - Thursday, May 9, 13 @ 5:12 pm:

    DD, there are some Kool-Aid drinkers, but most of the staff is upset.


  29. - Norseman - Thursday, May 9, 13 @ 5:13 pm:

    oops “are” upset.


  30. - RNUG - Thursday, May 9, 13 @ 5:20 pm:

    Rich,

    With the passage of SB2404, I think your next QOTD just wrote itself:.

    On the pension bill, which chamber leader will blink first?


  31. - foster brooks - Thursday, May 9, 13 @ 6:13 pm:

    Radogno: “Focus on the goal of pension reform and stop arguing about constitutionality”.

    Unless its the 2nd ammendment. No wonder i dont vote for republicans anymore


  32. - Norseman - Friday, May 10, 13 @ 12:01 am:

    RNUG or AA - Did you understand that the AAI under Madigan’s bill will only be a simple increase if your annuity is at or more than the (years of service * 3%) cap. Per SERS analysis a person whose benefits are coordinated with Social Security with 30 years of service would have a cap of $24,000. If that person’s annuity is $24,000 or greater, than he/she would only receive an AAI of $720 after meeting the 5 year or age 67 threshhold. So (assuming a base annuity of $24,000) this person will only get an annual annuity of $24,720 for the rest of his life. Pretty sick considering the expected increases in health care costs - presuming retirees will still get healthcare if the future.

    I stupidly read the description of the amendment to allow compounding of the “cap” amount, i.e. for the above example the AAI for the first eligible year would be $720, while the AAI for the next year would be based on $24,720 for an AAI of $741.60.


  33. - Pot calling kettle - Friday, May 10, 13 @ 12:24 am:

    Norseman: the Madigan bill would add another $720 each year.


  34. - Norseman - Friday, May 10, 13 @ 12:58 am:

    It would add it to the $24000. So you would never receive more than $24,720 per year for the rest of your life.


Sorry, comments for this post are now closed.


* The best Ben Bradlee story ever
* Congressional polling and TV ads
* Rasmussen poll: Rauner up 48-47
* "What this state needs is a plutocrat"
* Adventures in tracking
* *** UPDATED x2 *** Et tu, Andy?
* AFSCME claims union "leader" in Rauner ad was forced to resign
* $580 MILLION EXELON RATE HIKE?? That’s the price tag for their nuke bailout…EVERY YEAR!
* Lisa Madigan up with new TV ad
* Frerichs switches to negative TV track
* Tribune poll: Rauner leads Quinn, Grimm 45-43-4
* SUBSCRIBERS ONLY - Supplement to today’s edition: McKinney, cable TV buys, polling report, new TV ad
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Oberweis now for gay marriage
* The patented Pat Quinn close has begun
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Humble MoBOOile Bundle offers spooky games for Halloween
        * Ello makes its ad-free promise a legal one, too
        * Chainfire unleashes Sideload Launcher for Android TV
        * Facebook Launches Pseudonymous App “Rooms” That Lets You Create Forums About Any Topic
        * Google Earth major update: 3D rendering, access to KML files
        * Android Wear Update Adds Offline Music, Bluetooth Headphone And GPS Support
        * Sky+ app update tosses mobile pics onto the big screen

        * The Best Rechargeable Batteries
        * The New Best Day to Book a Flight Is Sunday
        * Sony SmartWatch 3 Goes On Sale At Verizon
        * Facebook Launches Anonymous Community App Called Rooms
        * LG G Watch R Release Plans Detailed
        * Craft fair credit: Etsy intros a credit card reader for offline sales
        * Facebook’s newest app: Rooms, for iOS

        * White Sox AFL class features talented Anderson
        * Nori Aoki: The White Sox Killer of 2014
        * World Series Game 2: Notes and discussion
        * 23 potential MLB free agents as SkyMall items
        * World Series Game 1: Notes and discussion
        * The e-gus off-season plan
        * Reading Room: A wild card of a World Series


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Topic matches for "illinois"..
        * Chicago hotel workers to Bruce Rauner: Give bac.....
        * Big Donors Examined..
        * Quinn gets $1 million in late contributions..
        * State of Illinois Sets Up Ebola Task Force..
        * Bruce Rauner, ex-GTCR, in Race for Illinois Gov.....


        * Jobless rate falls in all 12 Illinois metro areas
        * New bridge helping ease Chicago rail congestion
        * Report: Cause of crash that killed 3 unknown
        * Grafton gives fish plant 30 days to stop smells
        * Cheaper fuel helps United's 3Q profit take off
        * State of Illinois sets up Ebola task force
        * Chicago jail escapee sentenced to 36 years
        * Durbin, Oberweis face off in 1st US Senate debate
        * Biden in Illinois: Each vote for Democrats crucial
        * Indiana killings case prompts Illinois searches

        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight
        * U of I sees turning point as election nears

        * Sears: Store closure list wrong
        * United's profit jumps, but stock falls on forecast
        * Caterpillar smashes estimates, sees stock jump
        * It's all about the shoes
        *


        * CPS wants to delay new standardized test, even though state already has said 'no'
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85
        * Scandal or not, Bring on that  federal monitor
        * ‘Narcissistic’ bank robber and jail breaker sentenced to 36 years
        * New archbishop chooses modest rectory over traditional mansion
        * Federal monitor will oversee hiring at Illinois Department of Transportation
        * Critics on Emanuel’s choice for city treasurer: Good person, flawed process
        * CPS wants to delay new standardized test, even though state says 'no'
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85


        * 'Flyover' aimed at cutting rail congestion
        * 'Suspicious package' found at Hoffman Estates High School
        * Police: 2 shot on Chicago's South and West sides
        * Prosecutors want to bring out other alleged wrongdoing by commander
        * Archivists find 1840 document with Lincoln-related information
        * Quinn gets $1 million in late contributions
        * Skokie school remains closed as police continue threat investigation
        * Sun-Times reporter Dave McKinney quits, cites possible retaliation over Rauner article
        * Tribune poll: Rauner, Quinn in dead heat
        * West Town man killed, another wounded in Richton Park shooting


        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin
        * Real estate and religion: The tale of Seventeenth Church of Christ, Scientist
        * Suspicion lingers over Ebola treatment
        * Judge Orders Court Appointed Monitor For IDOT Hiring
        * 13th Dist. Candidates Talk NAFTA, Ebola During Springfield Debate
        * Attorneys Due In Court For Quinn Hiring Lawsuit
        * Small Campaign Contributions Amount To Chump Change


        * Our Opinion: Frerichs has the expertise to be Illinois treasurer
        * Robert Kaestner: Good education policy is good health policy
        * Eugene Robinson: Warren makes the case for a presidential run
        * Bernard Schoenburg: Local Rauner ad leaves out ‘everything Springfield isn’t’ line
        * Minimum wage increase supporters urge early voting
        * George Will: In Kentucky, a constitutional moment
        * Sun-Times political reporter resigns following Rauner complaint
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Our Opinion: Choice for Illinois comptroller comes down to experience
        * Rep. Raymond Poe to undergo stem cell transplant


        * Today's chat: Of McClain, recruits and a backup center
        * Accident at Rantoul plant results in man's death
        * Road closure in Marion
        * Alma Mater vandalism can be repaired
        * 10-23-14 Penny for Your Thoughts: Turpin, Steigmann, McCuskey, and Dey
        * 08-14-14 Penny for Your Thoughts
        * Thursday Oct. 23 government meetings
        * Massive cheating scandal at UNC involved athletes
        * Man killed in crash with police car
        * Slight chance of scattered showers this afternoon


        * Top stars compete this weekend at Skate America
        * Sears to lay off about 5,000 workers
        * Suspicious package triggers lockdown at Hoffman Estates High School
        * District 75 reporting tentative agreement on 3-year teachers contract
        * District 75 reporting tentative agreement on three-year teachers contract

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Topic matches for "illinois"...
        * Oberweis: Would support federal marriage e......
        * Oberweis: Would support federal marriage e......
        * Senate candidates square off in only TV de......
        * Senate candidates square off in only TV de......

        * Marco Rubio, Mark Kirk Warn John Kerry on ......

        * Let The Sunshine In!
        * Changes Afoot At Sheridan & Lawrence
        * Quinn, Rauner To Debate Tonight In Chicago
        * Illinois Unemployment Rate Ticks Down To 6.6 Percent In September
        * Chicago Treasurer Stephanie Neely To Vacate Post
        * Poll: Illinois Governor's Race Neck-And-Neck
        * Oberweis Reverses Marriage Equality Position During U.S. Senate Debate
        * National Survey: Many LGBT Youths Face Hostile School Environments
        * Batinick says Dunn's desperate campaign charges are "ridiculous"
        * New Bost ad hits Illinois 12th Congressional District [video]


        * New Ad: Labor leader backs Rauner
        * Jewish Newspapers Endorse Rauner for Governor
        * TV Breaking News: Ethics blow for Pat Quinn
        * Federal judge deals Quinn ethics blow on IDOT patronage hiring
        * Rauner Statement on Federal Hiring Monitor at IDOT




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller