Rauner lays out his minimum requirements
Tuesday, Jun 21, 2016 - Posted by Rich Miller
* Gov. Rauner was asked yesterday where he stood on the “non-budget” talks. Kim Geiger at the Tribune fills us in…
Changes to the rules on civil lawsuits, commonly referred to as “tort reform” is “off the table, for now,” Rauner said.
“The biggies,” Rauner said, are changes to workers’ compensation, the property tax freeze with collective bargaining provisions and legislation to alleviate the pension problem. Asked if that would be enough for him to strike a deal with Democrats, Rauner said: “Yeah, sure.”
That Rauner has set his sights on those items is no secret. There are working groups of lawmakers debating those topics now, and he’s focused much of his public comments on the three items in recent weeks. Still, it was the first time we’ve heard Rauner say specifically what would satisfy his general call for “reforms” alongside a budget deal that includes spending cuts and tax hikes.
Rauner’s answer might provide more clarity to casual observers of the budget impasse, but it’s unlikely to motivate Democratic lawmakers, who say they’ve lost trust in the governor because of his shifting rhetoric over the past year. Also, many Democrats are opposed to the workers’ compensation and collective bargaining proposals, which they contend would hurt the middle class.
Subscribers know more about the workers’ comp talks.
- Norseman - Tuesday, Jun 21, 16 @ 9:43 am:
Kill unions still on the agenda!
- SAP - Tuesday, Jun 21, 16 @ 9:43 am:
Without snark, what is left on pension reform, Constitutional pension reform, other than Tier 3?
- Nick Name - Tuesday, Jun 21, 16 @ 9:50 am:
“…the property tax freeze with collective bargaining provisions and legislation to alleviate the pension problem.”
Anyone who pushes “property tax freeze” only shows that he has no idea how property taxes are calculated and what the revenue goes to pay for, or how devastating a freeze would be to already-strapped school districts (who will raise taxes prior to any freeze going into effect to make up for the anticipated lost revenue).
“collective bargaining provisions” is just code for ending prevailing wage. So we’re back to that again?
The only legislation that will alleviate the pension problem - and pass constitutional muster - is a tax hike. But then Rauner (and the GOP GA) knows that. Anything else is just posturing.
- illini97 - Tuesday, Jun 21, 16 @ 9:53 am:
“The only legislation that will alleviate the pension problem - and pass constitutional muster - is a tax hike. But then Rauner (and the GOP GA) knows that. Anything else is just posturing.”
And posturing they are. Latest mailer from Dwight Kay assures me he will balance the budget with no increase in taxation. Would love to hear his plan.
Honeybear, you guys on this?
- Wensicia - Tuesday, Jun 21, 16 @ 9:54 am:
It’s still “give me what I want or nothing gets passed”.
- Unsolicited advice - Tuesday, Jun 21, 16 @ 9:54 am:
SAP, some people still think you can force tire 1 people to make a “voluntary choice” between two lesser pension options, call the “choice” consideration, and save a boat load of $ by paying less than the pervious value. It looks like the gov still thinks that will work. I dont, obviously.
- Huh? - Tuesday, Jun 21, 16 @ 9:54 am:
The war continues. Nothing has ever been taken off the table. Nothing has changed.
- Lucky Pierre - Tuesday, Jun 21, 16 @ 9:58 am:
One huge reform to pensions for school districts would be phasing out or eliminating the employer picking up the employee share of the pension contribution particularly for higher compensated administrators and faculty.
- DuPage - Tuesday, Jun 21, 16 @ 10:02 am:
The Democrats need to hold the line against Rauner putting unrelated Turnaround Agenda items into a budget deal. If they give in, he will do the same thing next year, and the next, and the next….. Now that Rauner has announced he is running again, budgets will be held hostage for 12 years, with a new, expanded Turnaround Agenda each year.
- @MisterJayEm - Tuesday, Jun 21, 16 @ 10:02 am:
“Shifting rhetoric” is a fiendishly Orwellian construction.
Lies? Misdirection? Dishonesty?
Nope.
Shifting rhetoric.
– MrJM
- Norseman - Tuesday, Jun 21, 16 @ 10:05 am:
Too bad the state is not required to pay plaintiffs lawyer fees. They continue to pursue unconstitutional legislation and this requires costly litigation. I’d say paying all the costs of litigation would end these useless attempts, but I know better.
- A guy - Tuesday, Jun 21, 16 @ 10:06 am:
==The war continues. Nothing has ever been taken off the table. Nothing has changed.===
Except perhaps the location of the table…
- Formerly Known as Frenchie M - Tuesday, Jun 21, 16 @ 10:06 am:
I think the pension hail-mary here is probably the AFSCME strike — and the ability to say, either go back to work — or you’re fired.
I’m sure Rauner is counting on that choice as the way to go around the “consideration” issue with the constitution. If you’re not working — either outright fired or laid off — the constitutional issues vis-a-vis pension statutes don’t apply.
- illinois manufacturer - Tuesday, Jun 21, 16 @ 10:11 am:
That freeze really upped my property taxes and by more than if we just upped the income . He ignores the constitution …I think the ILSC rulled on tort reform before passed under Edgar. Pensions have been ruled on so he demands the union busting and though I like workers comp…Thats all for this ongoing damage
- Chungas revenge - Tuesday, Jun 21, 16 @ 10:12 am:
With all the time the Tribune gave this guy did they bother to ask him where his budget proposal was or if he was ever going to propose one?
Did they ask him if he has bothered to read the state constitution to help him realize he is one of the most powerful governors in this country and as such appears pathetic to be Cryin how one man is stopping him from moving his agenda in any direction?
- Arthur Andersen - Tuesday, Jun 21, 16 @ 10:14 am:
Constitutional “Pension Reform:” Pay the darn bill.
Thank you very much.
- Whatever - Tuesday, Jun 21, 16 @ 10:14 am:
==Too bad the state is not required to pay plaintiffs lawyer fees.==
Making the loser pay the winner’s attorneys’ fees is sometimes proposed as part of “tort reform.” Maybe you and the Governor have some common ground you can build on as part of a compromise.
- downstater - Tuesday, Jun 21, 16 @ 10:16 am:
It’s amazing to me that the Democrats keep pushing the tired “this will hurt the middle class” rhetoric. What’s more amazing is that anyone would buy it. What’s hurt the middle class is the mass exodus of jobs in this state, along with the mass exodus of people, which means the tax base has been greatly diminished, providing less money for public schools, roads, social services, etc. But let’s keep burying our heads in the sand and pretend that companies will magically want to start locating here to pay higher taxes, higher worker’s comp rates, etc.
- Hit or Miss - Tuesday, Jun 21, 16 @ 10:17 am:
“legislation to alleviate the pension problem”
There are, in my view, only two legislation options that need to be considered. First option, cut the budget line item for costly litigation of unconstitutional pension reduction plans and use the money to fund the pension plans. Second option, increase taxes.
- Liberty - Tuesday, Jun 21, 16 @ 10:17 am:
La LA land?
- Juvenal - Tuesday, Jun 21, 16 @ 10:21 am:
If Democrats can agree to drop a filibuster in exchange for up-or-down votes on gun control, why can’t Rauner agree to drop his filibuster of the budget in exchange for up-or-down votes on his turnaround agenda?
1. Pass and sign a budget.
2. Hold roll calls on Rauner’s turnaround agenda items, just as the U.S. Senate held roll calls on gun control.
3. Vote on the revenue package recommended by the governor’s budget director.
If the agenda items don’t pass, Republicans can always decide not to support revenue, the governor can always decide not to spend the appropriated funds, and they can make their case to the people.
Based on what the governor has claimed - a majority of Democrats support his turnaround agenda - he should have no worries and need no help from madigan or cullerton to muster enough notes, as long as they promise a vote.
- Radar - Tuesday, Jun 21, 16 @ 10:22 am:
I thought Gov Rauner stated that he had taken his personal agenda out of his budget demands in order to get passed the impasse? This doesn’t sound like he has changed anything?
- Anonnin' - Tuesday, Jun 21, 16 @ 10:25 am:
Show of Hands
Anyone agree that any of this really a “reform”
S* injured workers, wrecking local labor relations, and taking retirement benefits away do not represent reforms.
- sonny chiss - Tuesday, Jun 21, 16 @ 10:27 am:
Makes perfect sense to me Juvenal, but what do I know?….maybe those actions do not make enough use of the leverage that the crisis is creating.
- Reality Check - Tuesday, Jun 21, 16 @ 10:28 am:
“collective bargaining provisions” is just code for ending prevailing wage
Not “just” that. It is stripping the right to bargain collectively from any and all teachers, police officers, fire fighters, paramedics, librarians, nurses, corrections officers, etc, who works for a city or county.
And if Rauner accomplishes that, he’ll want to do the same to ALL public employees next, and then all private sector workers.
Strip rights and drive down wages of all working people. That is Rauner’s long game and it hasn’t changed a bit.
- Ron - Tuesday, Jun 21, 16 @ 10:28 am:
Rauner is being extremely reasonable. Time for Madigan and Cullerton to step up.
- @MisterJayEm - Tuesday, Jun 21, 16 @ 10:28 am:
“What’s hurt the middle class is the mass exodus of jobs in this state, along with the mass exodus of people, which means the tax base has been greatly diminished, providing less money for public schools, roads, social services, etc.”
And the budgetless State of Illinois failing to pay its bills addresses this problem how?
– MrJM
- unionman 2 - Tuesday, Jun 21, 16 @ 10:32 am:
If we are talking legality Governor cannot fire anyone who participates in a legal strike. This certainly includes AFSCME.
- Ron - Tuesday, Jun 21, 16 @ 10:33 am:
A state budget has very little impact on our economy. Government is not the answer. Illinois economy grew at a faster rate last year without a budget than the previous year with a budget. Get over it.
- Lucky Pierre - Tuesday, Jun 21, 16 @ 10:35 am:
Mr Jay Em are you saying all that is needed is a signed budget and its corresponding 7 billion dollar tax increase to stop the mass exodus of our tax base?
- Federalist - Tuesday, Jun 21, 16 @ 10:48 am:
For me this is just further confirmation that Rauner is more interested in union busting than the budget.
He would gladly sign an ‘unbalanced’ budget if he could advance that ultimate goal.
- Anonymous - Tuesday, Jun 21, 16 @ 10:50 am:
- SAP - Tuesday, Jun 21, 16 @ 9:43 am:
Without snark, what is left on pension reform, Constitutional pension reform, other than Tier 3?
Nothing! But Rauner is obsessed with this because it is anti public employee. Common sense is not a factor in play.
- Last Bull Moose - Tuesday, Jun 21, 16 @ 10:52 am:
L.P. a mass exodus of our tax base makes us sound like Vermont during the Gold Rush or Oklahoma during the Dust Bowl. I think there is a slow decline partly driven by the movement of manufacturing to the coasts.
Property tax freezes often have adverse unintended consequences. I’m not a fan.
- Federalist - Tuesday, Jun 21, 16 @ 10:52 am:
Not certain what happened out there in cyber space. The comment posted at 10:50 am was by me and not Anonymous.
- Ron - Tuesday, Jun 21, 16 @ 10:52 am:
Illinois is in a demographic and economic death spiral. The public employee unions are completely out of control. They must be reined in for our future. People are leaving Illinois faster than any state other than West Virginia.
- Ron - Tuesday, Jun 21, 16 @ 10:55 am:
If by movement of manufacturing to the coasts you mean, moving to lower cost/non union, you would be correct.
- BK Bro - Tuesday, Jun 21, 16 @ 10:57 am:
No political benefit for Rauner to cave now. He can hold out for the chance of being practically the only Governor to ever get a sliver of significant cost-center reforms. I don’t think Rauner is the type of guy who would rather win an election to be a go-along-to-get-along Gov like Edgar. He’s in it for the long haul. Reform or bust. I can totally see Rauner more interested in maintaining his dignity and principles (which I know many here disagree with) and losing the next election than caving and letting Illinois kick the can even further.
Plus, all this drama makes for some great Capitol Fax content to help you get through the day.
- Rich Miller - Tuesday, Jun 21, 16 @ 10:59 am:
===Illinois is in a demographic and economic death spiral===
Please expound on our demographic death spiral.
- JS Mill - Tuesday, Jun 21, 16 @ 10:59 am:
= the mass exodus of our tax base?=
Dog whistle
- Nick Name - Tuesday, Jun 21, 16 @ 11:03 am:
Reality Check @10:28 a.m.: agreed.
- Harry - Tuesday, Jun 21, 16 @ 11:08 am:
I assume the pension reform he has in mind is Cullerton’s “choice” approach, as that is what he said a few months ago. So, fine, give it to him, get a budget passed, and in a year or two the Supreme Court will strike down yet another unconstitutional pension law.
- Dandy Edward - Tuesday, Jun 21, 16 @ 11:30 am:
Kill unions still on the agenda!
Was never on the agenda.
- RNUG - Tuesday, Jun 21, 16 @ 11:38 am:
More cognitive disconnect …
Somebody better explain the facts about the Tier 2 pension system to Rauner; he won’t be able to structure a cheaper (to the State) system.
And he better be ready to settle for a bit of face-saving voluntary consideration offerings that will make for good sound bites but won’t save any serious money / significantly reduce the existing pension debt.
- RNUG - Tuesday, Jun 21, 16 @ 11:41 am:
== One huge reform to pensions for school districts would be phasing out or eliminating the employer picking up the employee share of the pension contribution particularly for higher compensated administrators and faculty. ==
Local school board pickup of the employee pension contribution is a local control issue; it is not controlled or required by the State. Take it up with the local school boards.
- RNUG - Tuesday, Jun 21, 16 @ 11:45 am:
== If you’re not working — either outright fired or laid off — the constitutional issues vis-a-vis pension statutes don’t apply. ==
Actually, they still do apply. If you were a Tier 1 member 30 years ago, left government employment 20 years ago, and come back to work for the state today, you are still Tier 1. CMS past practice and court cases clearly support this.
- PublicServant - Tuesday, Jun 21, 16 @ 11:58 am:
Rauner needs to couple decimation of collective bargaining with his property tax freeze because severe cuts to wages and benefits will be the only possible way local governments will be able to make ends meet after the freeze. Kind of a self-enforcing downward wage austerity fait-accompli.
- Last Bull Moose - Tuesday, Jun 21, 16 @ 12:24 pm:
Ron, I was thinking of the logistics in a global economy working to move manufacturing to ocean ports. Lower wages add to the pressure to move.
- Formerly Known As... - Tuesday, Jun 21, 16 @ 12:45 pm:
=It’s like deja vu all over again= in Springfield. There is a deal to be made, just like last year, but any deal requires mutual compromise. I suspect he would drop the collective bargaining changes if it meant getting to a deal. That would be the same =doable= deal that was possible last year, WC and property taxes.
On May 23 2015 Crain’s reported =Rauner has offered to put anywhere from $3.2 billion to $3.5 billion in tax increases on the table (the figure depends on whom you believe)=. Other reports confirmed.
The same week, Rich and others reported Rauner pared the TA down to two items. Workers comp and a property tax freeze. This is =doable= and moderate. Do it.
- ANONIME - Tuesday, Jun 21, 16 @ 12:48 pm:
If they want to do something about the pensions, why don’t they start with the legislature. It is much more generous than the ‘normal’ state employee. And don’t forget it is a part time job.
A normal state employee must work 45 years to draw 75% of the average of the 4 highest out of the last 10 years. They earn pension at 1.67% for each year.
Now, the legislature gets a sweet deal. 85% after 20 years and paid on the salary of their last day (no average of anything). instead of a level % per year, this is what they get
3.0% for the first 4 years of service
3.5% for the next 2 years of service
4.0% for the next 2 years of service
4.5% for the next 4 years of service
5.0% for each year after 12 years
Once they are age 55 and have 20 years, they also get a 3% increase above the 85% for every year. Something the ‘normal’ state employee can only dream of.
Why don’t we start with a reform of the pensions for the part time employees that are definitely overly generous. Maybe we could use some of the money to put in the regular employee pension fund
- Huh? - Tuesday, Jun 21, 16 @ 12:51 pm:
Ron - Thank you for the chuckle.
This post was the best - “Rauner is being extremely reasonable.”
- Educ - Tuesday, Jun 21, 16 @ 1:18 pm:
Yeah, I’m pretty concerned our governor does not actually know how property taxes work or what they fund.
- Anonymous - Tuesday, Jun 21, 16 @ 1:26 pm:
Formerly Known As… any particular reason you didn’t mention restricting collective bargaining?
- YSW - Tuesday, Jun 21, 16 @ 1:29 pm:
1:26 was me
- RIJ - Tuesday, Jun 21, 16 @ 1:35 pm:
Hey Rauner, kiss my tush and pay my pension.
- Ron - Tuesday, Jun 21, 16 @ 1:38 pm:
LA is not seeing manufacturing growth. It is losing jobs too.
- @MisterJayEm - Tuesday, Jun 21, 16 @ 1:38 pm:
“are you saying all that is needed is a signed budget and its corresponding 7 billion dollar tax increase to stop the mass exodus of our tax base?”
Here’s a nifty little trick for interpreting my comments: If I didn’t say it, then it’s not what I said.
– MrJM
https://yourlogicalfallacyis.com/strawman
- Norseman - Tuesday, Jun 21, 16 @ 2:04 pm:
MrJM @ 1:38 for the win.
- Honeybear - Tuesday, Jun 21, 16 @ 2:11 pm:
And posturing they are. Latest mailer from Dwight Kay assures me he will balance the budget with no increase in taxation. Would love to hear his plan.
Honeybear, you guys on this?
Yep, I am in awe that Dwight Kay, insurance salesman and legislator will balance the budget without new taxes. Yep, he’s amazing. s/
- Honeybear - Tuesday, Jun 21, 16 @ 2:12 pm:
Kind of a self-enforcing downward wage austerity fait-accompli.
Perfectly said
- Honeybear - Tuesday, Jun 21, 16 @ 2:19 pm:
–the mass exodus of our tax base–
We don’t even have to worry about this when DCEO/IDOR is giving record numbers of income tax withholding rebates to corporations via EDGE. I bet when the report comes out, I think this week or next, we’ll see that 2015 was a banner year for Illinois companies, many with zero tax liabilities, getting out of even sending their employee income tax withholdings in to the state.
TALK ABOUT WITHHOLDING!!! Thanks Governor Rauner!
Remember Governor Rauner is “All In” for them
He’ll even wear a tie.
- RNUG - Tuesday, Jun 21, 16 @ 2:35 pm:
== average of the 4 highest out of the last 10 years ==
Technically, it’s of the 4 consecutive highest
- RNUG - Tuesday, Jun 21, 16 @ 2:41 pm:
== Why don’t we start with a reform of the pensions for the part time employees that are definitely overly generous. Maybe we could use some of the money to put in the regular employee pension fund ==
I agree, but just remember, it would only apply to newly elected officials going forward. And with just a couple of hundred elected and appointed officials, the savings won’t even be a rounding error on the total pension debt.
- Arthur Andersen - Tuesday, Jun 21, 16 @ 4:42 pm:
To slightly expand on RNUG’s point, if the General Assembly retirement system were to be completely eliminated for all (unconstitutional as heck) the unfunded liability would be reduced less than one percent.
Pay. The. Bill.
- Mama - Tuesday, Jun 21, 16 @ 4:54 pm:
Which collective bargaining proposals?
- Mama - Tuesday, Jun 21, 16 @ 4:57 pm:
“legislation to alleviate the pension problem”
Rich, does this mean he wants the legislature to pass legislation to eliminate the ‘pension protection clause’ in the state Constitution?
- RNUG - Tuesday, Jun 21, 16 @ 7:39 pm:
== Rich, does this mean he wants the legislature to pass legislation to eliminate the ‘pension protection clause’ in the state Constitution? ==
-Mama-,
Remember, all constitutional amendments must go to the voters. And we may argue over it, based on various court rulings both pre and post 1970, it probably won’t make much, if any, difference … especially to people already hired.
But IMO, he wants a forced consideration bill (previously propsed by Rauner using Cullerton’s model) freezing the rate of pay the pensions are based on (aka the discredited Sidley-Austin”benefits not yet earned” logic). Don’t see the IL SC buying it.
- PublicServant - Wednesday, Jun 22, 16 @ 6:44 am:
===Workers comp and a property tax freeze. This is =doable= and moderate. Do it.===
It definitely is not moderate. Don’t do it. There fixed it for you FKA.