SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 - Pension bill clears House *** Rahm’s pension bill back on track? We’ll see today

Tuesday, Apr 8, 2014

*** UPDATE *** The mayor’s pension bill easily passed the House 73-41. On to the Senate.

[ *** End Of Update *** ]

* I told you this would happen yesterday

Mayor Rahm Emanuel and House Speaker Michael Madigan Monday stripped out controversial language from city pension legislation that had authorized the City Council to impose a property-tax hike, putting the stalled measure back on the fast-track at the state Capitol. […]

Madigan, D-Chicago, filed an amendment to Senate Bill 1922 after the House adjourned Monday without taking any action on the stalled legislation. Sources now expect the legislation to be voted upon as early as Tuesday.

* More

Unions had also opposed removing the property tax mandate from the bill, but City Hall is convinced labor leaders won’t object to Monday’s revisions because of language that gives the state the right to withhold state funding to Chicago during any year that the city fails to make its required contribution to municipal employees or Laborers pension funds

* To the bill

Still in the bill are two provisions to penalize the city if it does not make the pension payments. The state comptroller would be allowed to divert millions of dollars in annual state payments away from the city and into the pension funds a provision that was made stronger in the most recent version.

The proposal also spells out that pension boards could sue to get the state to divert millions in city funding to the pension funds. […]

The new plan also includes a minimum cost-of-living increase of at least 1 percent every year for retired workers who are getting pensions of $22,000 or less. The bulk of retirees would get annual increases of half the rate of inflation or 3 percent, whichever is less, based on the amount of their annual pension payments upon retirement. Currently, all retirees get 3 percent, based on their previous year’s pension income. […]

The latest version also includes a new provision that would allow Emanuel to change the makeup of the two retirement boards that oversee the laborers and municipal funds. It would terminate the terms of current members next year and allow the mayor to recommend how new members of the board should be appointed.

* A labor activist who opposes the bill sent me this commentary about that last paragraph…

Here’s what that means: The supposed “funding guarantee” in this legislation is a provision that the municipal and laborers funds may go to court if the city doesn’t pay what’s required. Now, the municipal fund’s board consists of three elected members who are employees, plus the city treasurer and comptroller. But under this provision, the entire board could be political appointees of the mayor. Besides eliminating the voice of employee participants, it could give mayoral appointees total discretion to enforce the funding provision – or look the other way.

Except the state comptroller is also required to skim city grants, and the comptroller’s office says that includes Chicago’s giant pile of revenue-sharing cash from the Local Government Distributive Fund.

* And this shows how weird some folks can get around here

To some, Quinn’s decision to draw a line in the sand on property taxes and dangle the city’s elusive quest for a Chicago casino as a replacement was part of an elaborate political dance.

Those Machiavellian theorists believe the plan for $50 million property tax hikes for each of the next five years may have been a stalking horse for a casino all along.

But the fact is, Chicago probably needs both property tax hikes and the jackpot from a land-based casino to wipe out an $32 billion unfunded pension liability that’s eight times the city’s operating revenue and, what Moody’s calls “by far the highest” of any rated U.S. local government.

That last sentence is far more in line with reality.

- Posted by Rich Miller        


21 Comments
  1. - Chi - Tuesday, Apr 8, 14 @ 10:45 am:

    “Besides eliminating the voice of employee participants, it could give mayoral appointees total discretion to enforce the funding provision – or look the other way.”

    First, a bill would need to be passed in the future to alter the current makeup of the boards; SB 1922 only requires the city to make recommendations. There is no requirement that the Legislature accept the requirements.

    Second, if trustees of the Fund, whoever they may be, “look the other way” if the City doesn’t pay what they are required by law to pay, even though they have the ability to require the City to pay, then those trustees would be sued by the members of the Fund immediately for breach of fiduciary duty. And they would clearly be guilty of that breach of duty.


  2. - Chi - Tuesday, Apr 8, 14 @ 10:46 am:

    meant to say “accept the recommendations”…


  3. - A guy... - Tuesday, Apr 8, 14 @ 10:54 am:

    Moody’s is trying to help here I gather, by establishing what the debt load really means. What Quinn called a sketch yesterday is less so today. They didn’t “color in” the sketch as much as they erased the outlines. It’s hard to tell from here what this bill does now. It doesn’t fund, but it does allow a board (maybe a board stacked with the Mayor’s shills) to hear a case from labor to sue for funds to be diverted to the pension. It gives the Comptroller the right to sweep distributions to the city and divert them into the fund. Does it compel the Comptroller to do so? It’s hard to sort out exactly what this does.


  4. - Hans Sanity - Tuesday, Apr 8, 14 @ 10:55 am:

    Denver County has an adult population of just over 400,000 and raised $2 million in revenues from cannabis tax in one month.

    Cook County’s adult population is 10 times that of Denver County.


  5. - anon - Tuesday, Apr 8, 14 @ 10:59 am:

    Agreeing to do what you are already obligated to do is sham consideration.


  6. - Name/Nickname/Anon - Tuesday, Apr 8, 14 @ 11:24 am:

    They aren’t already obligated, City is different from the state, the are meeting their statutory obligation which is insufficient in the long term.


  7. - anon - Tuesday, Apr 8, 14 @ 11:47 am:

    The Illinois Supreme Court held that there was no enforceable right to have a pension funded. The obligation is not to put money in any particular fund but to pay out the money when required. So none of this can be legally adequate consideration.


  8. - chicago worker - Tuesday, Apr 8, 14 @ 12:49 pm:

    With less than ten years solvency in these plans, more delays will simply cost somebody, everybody more money. Solutions need to come quickly with everyone involved providing a part of the solution.


  9. - anon - Tuesday, Apr 8, 14 @ 1:09 pm:

    It doesn’t matter if the fund goes “insolvent.” The City still has to pay the bill out of other revenue. Enough with the boogeyman arguments about “oh no you won’t have any pension at all if you don’t agree to just give it all away.” I’ll believe that when the legislators start spouting that same argument to its corporate debtors.


  10. - independent - Tuesday, Apr 8, 14 @ 1:33 pm:

    I continue to be amazed that supposedly smart educated adults facing such big pressing problems cannot sit down and hash out an agreement to fix these pensions and budget issues. They need to leave politics at the door and reach a compromise. Maybe we need to include labor negotiators and a federal arbitrator to coach them.


  11. - Southsider - Tuesday, Apr 8, 14 @ 1:43 pm:

    The pension boards will never be able to sue the city, as long a a vote from an ex officio member of the board is needed to bring suit. Unless the reforms change the number of votes needed, the right to sue is of no benefit.


  12. - chicago boy - Tuesday, Apr 8, 14 @ 2:39 pm:

    term limits for state reps for sure now!!!!!!!!!!!!! Lets see how they like it.See you in court.


  13. - RNUG - Tuesday, Apr 8, 14 @ 2:59 pm:

    - anon - Tuesday, Apr 8, 14 @ 11:47 am:

    Anon got it right. Until / unless the ISC says otherwise in the future, ALL government pensions in Illinois have to be paid … the only question is does the government entity pre-fund it as (more or less) required by state law or just have to “pay as you go”?


  14. - chicago boy - Tuesday, Apr 8, 14 @ 3:07 pm:

    I paid for my cola how can they take it away.


  15. - Name/Nickname/Anon - Tuesday, Apr 8, 14 @ 3:11 pm:

    Who is liable if the local fund runs out of money, the city, the state? Who will pay the retirees while it gets adjudicated? Probably no one, and after appeals probably 3+ years retirees don’t get full pensions.


  16. - funny guy - Tuesday, Apr 8, 14 @ 3:11 pm:

    Sell O’Hare Airport and fund Chicago pensions!!!! No new taxes required and the City gets to reduce its workforce. Its really that easy. Pass it on!


  17. - follies - Tuesday, Apr 8, 14 @ 3:19 pm:

    ==The latest version also includes a new provision that would allow Emanuel to change the makeup of the two retirement boards that oversee the laborers and municipal funds. It would terminate the terms of current members next year and allow the mayor to recommend how new members of the board should be appointed. ==

    The language you are talking about was removed from the bill.


  18. - TaughtThemNot - Tuesday, Apr 8, 14 @ 3:43 pm:

    Please forgive the dumb question, but why is the legislation defining City of Chicago pensions moving through the state capitol in the first place? Isn’t this a Chicago City Council issue, or does the proposal include state taxes funding the city’s municipal pensions? Sorry, I’m new to this issue.


  19. - Jack - Tuesday, Apr 8, 14 @ 5:56 pm:

    Bill passed House and Senate.


  20. - Sue - Tuesday, Apr 8, 14 @ 6:30 pm:

    A true Profile in Courage in Spring patch today- the Illinois legislature creates all of these problems then has no interest in participating in raising the revenues required to pay for the benefits which exist because the State created the funds in the first place


  21. - john - Tuesday, Apr 8, 14 @ 8:23 pm:

    They are the gutless wonders that people vote for.


Sorry, comments for this post are now closed.


* *** UPDATED x1 *** Last man standing is leaving
* Question of the day
* *** UPDATED x1 *** Quinn again deflects responsibility to IDOT
* A different sort of ice bucket challenge
* Group claims it registered 25K voters this summer
* Today's quotable
* Rauner claims he's being outspent 2-1
* A very good question
* *** UPDATED x1 - Rauner's stinging response *** Quinn campaign says Rauner trying to "disguise himself as a moderate"
* How did nobody notice this?
* Over a million bucks so far spent against Schneider
* Today's numbers
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax
* 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

          
        * New leaked pictures of Xperia Z3 show clearer view
        * Fleep, The Team Messaging App Built And Funded By Ex-Skypers, Flicks Monetization Switch
        * Your Wish Is My App: the winners
        * HTC announces Desire 510, an LTE-capable budget phone
        * 8 ways to tell if your mobile app sucks
        * Galaxy Note 4 features, iPhone 6 leaks, Moto X+1 camera & more – Pocketnow Daily
        * HTC Desire 510 wants 4G LTE to be more accessible

        * Infinity Blade III: Kingdom Come Will Be The Last Update In The Series
        * More Details On The iPhone 6 Release Date Emerge
        * 5 Ways You Can Influence Consumer Purchasing Decisions: New Research
        * Uber’s Anti-Lyft Playbook, the Best Cancelled Comedy Central Shows and More Morning #Mustreads
        * 7-Eleven to Install Belly Digital Loyalty System Across U.S. and Canada
        * Woman Attributes Wii U Dancing Game To Saving Her Life
        * Fertility tracker Clue gets fresh funding from former Spotify execs and others

        * Noesi, White Sox look to end skid against Indians
        * Petricka, White Sox burned by 10th-inning homer
        * Indians 8, White Sox 6 (10 innings): Losing streak hits seven
        * Petricka, White Sox burned by 10th-inning homer
        * White Sox sending seven prospects to Arizona Fall League
        * Rodon will start Saturday -- for Triple-A Charlotte
        * White Sox AFL players officially assigned


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

        Archives
        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


        * School leaders discuss proposed Amendment 3 - G.....
        * Gov. Quinn vetoes bill increasing speed limit -.....
        * Gov. Quinn signs law protecting pregnant women .....
        * ALS Ice Bucket Challenge: A fad for a good cause..
        * Quinn: Agencies must follow hiring rules..
        * Law vs. pregnancy discrimination signed..


        * Woman pleads guilty in newborn's death in Michigan
        * Chicago's Little League champs return as heroes
        * Ex-Chicago Bull Brewer pleads no contest to DUI
        * Judges chide state lawyers over gay marriage bans
        * Gov. Pat Quinn vetoes bill increasing speeding
        * Judge says man must stay in prison for 1984 murder
        * Quinn: Agencies must follow hiring rules
        * Indiana, Wisconsin couples in gay marriage case
        * Challenges to gay marriage bans: Where they stand
        * Quinn liaison to IDOT resigns

        * Concealed carry data botched by error
        * Teamsters vow to fight IDOT layoffs
        * Quinn vetoes bill raising speed limit to 70 mph on all interstates
        * Quinn vetoes bill increasing speed limit on all interstates
        * Quinn deputy staff chief going to private sector
        * Quinn signs law allow study of industrial hemp
        * Quinn: Agencies must follow hiring rules
        * Concealed carry data botched by alphabet error
        * Quinn signs pregnancy discrimination measure
        * Bell wants three debates with state Rep. Scherer prior to election

        * Quinn vetoes bill increasing speeding
        * How a mid-air squabble become great advertising
        * How a mid-air fight became great advertising
        * City tow truck slams into car: Who pays the bill?
        * A fresh round of shock and awe from the Cards Against Humanity crew


        * Dump ‘Fake IG,’  give Ferguson more power
        * Jackie Robinson West fans line up for shirts
        * Judge OKs $2M for fired CPS principals in 20-year-old case
        * Guitarist for popular local band Bloodiest charged in fatal DUI
        * Indiana same-sex marriage ban debated in appeals court
        * Balcer denies he was forced out to make way for Daley nephew
        * Emanuel fires back at City Council’s inspector general
        * Emanuel bolsters commitment to $13-an-hour minimum wage
        * Services set for 9-year-old killed last week in Grand Crossing
        * Will of Chicago mother slain in Bali filed in court


        * 4 shot on South, West Sides
        * Lawsuit: Men were kicked out of cab after kiss
        * Chicago Public Schools reports graduation rate up
        * Oakwood Hills hall reopens amid power plant fight
        * Neighbor: Slain woman was kind, charitable
        * Crystal Lake bleachers flap still unresolved
        * Man dies after being struck by UP Northwest Metra Line train
        * Jackie Robinson West T-shirt a hit with fans
        * Western Springs man gets prison sentence for stalking DuPage judge
        * Cardinal George cancels Rome trip, cites cancer treatment


        * Green, Libertarian Parties Await Approval For Nov. Ballot
        * Pregnant Workers To Be Protected Under New Law
        * Appellate Court Confirms: Term Limits Not Eligible For Ballot
        * Art At The Illinois State Museum
        * Buy American Sections Required at State Parks & Historic Sites
        * 'PechaKucha' Highlights Unique Springfield Stories & Characters
        * WUIS/SJ-R Business Report: Ameren Gas Upgrades; Carpenter St. Underpass; Pease's Design Change
        * Here's Your Chance To Serve On Medical Marijuana Board
        * Why does South Shore still not have a grocery store?
        * Lt. Gov. Simon Vies For Comptroller


        * Michael Gerson: Too detached to lead?
        * Our Opinion: On matters of race, get off Facebook and talk to each other
        * Concealed carry data botched by error
        * Teamsters vow to fight IDOT layoffs
        * Quinn vetoes bill raising speed limit to 70 mph on all interstates
        * Quinn deputy staff chief going to private sector
        * Quinn signs law allow study of industrial hemp
        * Quinn: Agencies must follow hiring rules
        * Quinn signs pregnancy discrimination measure
        * Catherine Rampell: Corporate tax returns should be public


        * Quinn signs law allow study of industrial hemp
        * Man convicted of using chain saw on neighbor's ear
        * Scheels commits $100,000 to Kidzeum
        * 2 council members to bow out
        * Robert Daniel | Reader photo A participant in the children’s tractor-pulling competition makes her way along the course during this weekend’s annual burgoo, fish fry and homecoming in Chandlerville.
        * Gov. Pat Quinn vetoes bill increasing speeding
        * MacArthur gains interim principal
        * Being there to care
        * Food drive aims for '16 semis'
        * Police looking for two in armed robbery


        * District 214 might give taxpayers a rebate in 2016
        * Metra train strikes, kills man in Des Plaines
        * Dawn Patrol: Man killed by train; No tollway speed limit increase
        * Griffin: Taxes grow even as property values drop
        * Fire in Naperville leaves home uninhabitable

        * IRS enforcement agent numbers could drop t...
        * Jesse Jackson Jr. political fund fined nea...
        * Jackson Jr.'s political fund fined nearly ...
        * 'Celebrity Crime Files' Season Three, With...
        * Welcome to the state's Bult Field - Chicag...
        * IRS enforcement agent numbers could drop t...
        * Jesse Jackson Jr. political fund fined nea...
        * Jackson Jr.'s political fund fined nearly ...
        * 'Celebrity Crime Files' Season Three, With...
        * Welcome to the state's Bult Field - Chicag...

        * Justice Dept. files reveal activities of f......
        * Justice Dept. files reveal activities of f......
        * Will County health center gets grant...
        * Will County health center gets grant...
        * Will County health center gets grant...

        * Council of Jewish Women backs call to prob......
        * Nelson receives Farmer of the Year award...

        * On Women's Equality Day, Quinn Signs Law Protecting Working Pregnant Moms
        * Rep Flowers at signing of bill for pregnant workers
        * Quinn signs bill for pregnant workers
        * Quinn at signing of pregnant worker's bill
        * Support For Victims Of Violent Crime, Breaking Cycles Of Violence
        * Schneider Presses For Unemployment Benefits Extension At Career Center
        * Chicago Activists Call For A South Side Adult Trauma Center
        * Obama Likely To Move On Immigration Next Month
        * Nominating Petitions May Now Be Signed By Registered Voters For February Election
        * Local Music Notebook: Chella H vs. Angel Olsen


        * Eight Illinois Fire Departments Recognized For Their Fire Prevention Efforts - Award Recipients are an Example of Courage and Commitment to Saving Lives
        * Governor Quinn Signs Law to Stop Discrimination Against Pregnant Women in the Workplace - Governor Signs Landmark Legislation on Women’s Equality Day to Guarantee Women the Right to be Both Mothers and Employees
        * Governor Quinn Opens State-of-the-Art Police Forensic Laboratory in Belleville - New State Police Building Provides Forensic Capability for Southern Illinois Law Enforcement Agencies
        * Governor Quinn Vetoes Uber Bill
        * Rockwood Man Honored as Illinois Veteran of the Month - Ceremony Held at Du Quoin State Fair




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