Democrats have been privately grumbling for a while now that Gov. Bruce Rauner isn’t truly interested in good faith negotiations on a balanced budget with economic reforms to end the two and a half year Statehouse stalemate.
But Senate President John Cullerton spent days and days negotiating the details of a four-year property tax freeze with Rauner, only to have his spokesman tell me last week that he hadn’t acceded to Rauner’s demand for a four-year freeze.
Look, in this business, you only negotiate on a bill you flatly oppose if you’re trying to run out the clock. Otherwise, you just kill it. And because of this, people in the governor’s office are saying they don’t think that Cullerton really wants a deal.
Rauner moved off his demand for a five-year freeze to a four-year freeze. The two men then discussed side issues, like the timeline and the process for locally opting out of the freeze or for making it permanent.
The governor wanted a statewide vote, Cullerton wanted local votes. Cullerton appeared to prevail. But Rauner would only agree to limited exemptions from the freeze, bond payments being one of them. Cullerton wanted more exemptions, pension payments being one of those.
Then last week, Cullerton attempted to move legislation with identical language to Senate Republican Leader Christine Radogno’s original property tax freeze bill she introduced way back in January. It failed because it required a three-fifths vote to freeze taxes on local home rule governments.
Cullerton said afterward that he may strip out the home rule provision and run it again — which would, of course, mean that the city of Chicago would be exempt.
Without a property tax freeze amenable to the governor, I just don’t know how this impasse gets resolved.
Illinois has some of the highest property taxes in the country. So, if the negotiations fall apart, the Senate Democrats’ refusal to pass a “real” freeze will be a political gift for Gov. Rauner.
The issue also comes neatly wrapped in the governor’s favorite bow: House Speaker Michael Madigan.
The House speaker is, of course, a property tax appeals lawyer. Rauner said the other day for the umpteenth time that Madigan’s legal work was a clear case of conflict of interest and is evidence of how corrupt the state is. Senate President Cullerton has also done some property tax appeals work, so Rauner can easily lump Cullerton in with Madigan on the conflict of interest/corruption stuff.
And Rauner urged the Senate Democrats last week to resist Madigan, who he claimed had sent his special interests to the chamber in an attempt to kill the grand bargain.
And then there was last week’s biggest political new. Billionaire Democratic gubernatorial candidate JB Pritzker was thrashed in the media for obtaining huge property tax assessment rebates and reductions for an empty and “uninhabitable” mansion next door to his own Chicago palace.
The mansion apparently became even more legally uninhabitable after Pritzker had the house’s toilets uninstalled. That was clearly the work of a too clever by half property tax attorney, who Pritzker may want to think about throwing under the nearest bus if this publicity gets any worse.
And, despite firm denials, it’s pretty clear that Madigan is backing Pritzker, which makes this all the better for Rauner.
Even a child could frame this issue for Rauner. You take a universally and intensely unpopular property tax system, combine it with the state’s most wildly unpopular politician (Madigan) and use all that to blame the Senate Democrats for killing the grand bargain and, in the process, throw lots more mud on their “frontrunner” candidate.
It’s the worst possible hill the Democrats could choose to die on. Yes, the Senate president has legitimate policy concerns about the property tax freeze. But this is a political no-brainer.
The best idea I heard last week was to take this issue away from Rauner and Cullerton and allow senators on both sides of the aisle to negotiate it. Doing that very thing seemed to help move the revenue/budget talks and workers’ compensation reform forward, even though they’re not wrapped up as I write this.
If, as the Republicans privately contend, Cullerton’s goal is to deprive Rauner of a clear “win” on a property tax freeze, then nothing will work. The one thing we do know is that taking the issue away from Rauner and Cullerton couldn’t possibly make things worse.
- Roman - Monday, May 22, 17 @ 8:56 am:
Even if it’s only a two-year freeze, isn’t that still a “win” for Rauner? He certainly could make it a center piece of his re-election campaign.
Cullerton, and most of his caucus, seem to think the freeze is lousy public policy. The fact they are willing to go along with two years strikes me as a good-faith “give,” not political obstinance.
- Hamlet's Ghost - Monday, May 22, 17 @ 8:59 am:
= = Cullerton wanted more exemptions, pension payments being one of those. = =
As an elected local governmental official, carving out an exemption for increased pension payments is a hill worth dying on.
- downstate commissioner - Monday, May 22, 17 @ 9:09 am:
Really hate to say it, Rich, but now YOU appear to be willing to throw local government under the bus…
Hope Cullerton sticks to his guns. We can live with a two-year freeze, but the loss of even the 1% increase we are now getting will hurt…
- RNUG - Monday, May 22, 17 @ 9:11 am:
Temporarily freezing property taxes doesn’t do anything for the State budget or State revenue. All it does is limit the amount of future revenue local governments and schools will have. Unless you are naive enough to believe there is tons of waste at the local level, all this is going to do is reduce local services.
And it doesn’t really do all that much for the property taxpayer. Their property taxes won’t go down and their income taxes will go up. And with the exceptions allowed, property taxes can still grow, maybe just at a slower pace. Arguably, taxpayers will feel duped and be even madder when they get next year’s tax bills.
Since a progressive income tax is off the table for the moment, the right / fair thing to do is a drastic permanent raise in the income tax while permanently cutting the local school property tax to about 1/3 of it’s current level. That would be true property tax relief. But I don’t see that happening with this set of players.
If the best you can do is the current deal, then get it done. Nobody will like it, but it will be better than no budget.
- Anon221 - Monday, May 22, 17 @ 9:13 am:
“The one thing we do know is that taking the issue away from Rauner and Cullerton couldn’t possibly make things worse.”
The question then becomes, which Republicans are willing to go against Rauner if a true bipartisan agreement can be made without either Cullerton or Rauner? What happens if Rauner once again says, “Not good enough”. Will those Republicans be prepared to go-around if a veto override is needed down the road? Or, will they just work on the compromise to the point that it goes to Rauner’s desk?
- Common Sense - Monday, May 22, 17 @ 9:15 am:
My apologies, I meant to type May 31st.
- Rich Miller - Monday, May 22, 17 @ 9:15 am:
===but the loss of even the 1% increase we are now getting will hurt===
That doesn’t include your levies.
- Nick Name - Monday, May 22, 17 @ 9:19 am:
What RNUG said. Freezing property taxes is a manifestly bad idea, and the only people who promote it either have no idea what they’re talking about, or have ulterior motives. With Gov. Gaslight, it’s probably both, with a hard emphasis on ulterior motives.
- Anonymous - Monday, May 22, 17 @ 9:22 am:
==doesn’t do anything for the State budget or State revenue. ==
It does something for the pocket books of the taxpayers who fund State Government, who will be on the hook for extra income taxes. That’s a point you and others who’ve spent a career locked in the government bubble can’t seem to grasp. State revenue doesn’t just appear from nowhere.
- Oswego Willy - Monday, May 22, 17 @ 9:25 am:
===The question then becomes, which Republicans are willing to go against Rauner if a true bipartisan agreement can be made without either Cullerton or Rauner? What happens if Rauner once again says, “Not good enough”. Will those Republicans be prepared to go-around if a veto override is needed down the road===
History has proven out, in both chambers, on many issues… The Raunerites will NOT vote against Rauner in any way, deal or no deal, constituent issues for them or not.
I have advocated since Jump Street the independency and the autonomy of Republican caucuses to help the governor get 60 and 30, but more importantly the idea of moving Rauner’s agenda thru the true process of 60 and 30 and assist the governor, autonomously, to get those wins.
The idea that Raunerites facing $71 million in an unspoken threat, no, there will be no 71 and 36 when the real number now is $71 million.
Rich,
Great stuff, breaking it down and laying it out, the politics and the policy, and where the two meet, or in this case, where both sides can’t trust, and the honesty in that lack of trust.
- downstate commissioner - Monday, May 22, 17 @ 9:26 am:
Yes it does. We are in a Tax-capped County. PTELL caps the overall levy, not the individual ones. Basically, the only extra money comes from new construction, and a couple of houses or a new shed a year really doesn’t help that much.
- Hamlet's Ghost - Monday, May 22, 17 @ 9:28 am:
@OW - - the IL GOP truly is a crew of Ensign Pulvers
- Anon414 - Monday, May 22, 17 @ 9:31 am:
“This is the wrong hill to die on”
I think Rich meant that as an admonishment to Cullerton and the Senate Dems, but it applies to Rauner as well. For the love of God, property taxes have nothing to do with the state budget. Both sides should just declare victory with two years and get the hell out.
- Anon221 - Monday, May 22, 17 @ 9:33 am:
OW- I am hoping, at some point before 2018, that the Republicans will truly separate from the Raunerites for the sake of their constituents and the State. They need to do just as strong a PR defense for the hard votes (on income tax increase for instance) as the Dems are going to have to. It’s a sad, sad day when basically less than a handful of people can buy the State of Illinois for less than what Illinois.com may be auctioned off for.
- Oswego Willy - Monday, May 22, 17 @ 9:34 am:
===the IL GOP truly is a crew of Ensign Pulvers===
I’d just like to see a firecracker accidentally go off in the laundry. That would help.
- Rich Miller - Monday, May 22, 17 @ 9:35 am:
===Both sides should just declare victory with two years===
The House overwhelmingly passed a permanent freeze. So how about they do a four-year freeze as a compromise in the middle?
- JohnnyPyleDriver - Monday, May 22, 17 @ 9:42 am:
How is 4 the middle between 2 and infinity?
- Oswego Willy - Monday, May 22, 17 @ 9:48 am:
===I am hoping, at some point before 2018, that the Republicans will truly separate from the Raunerites for the sake of their constituents and the State.===
If I learned anything… when Rauner peeled off every vote that Leader Radogno had for the first compromise… it’s that wishing and hoping for autonomous and independent caucuses is now a foolish wish of those wanting a functioning Party.
It’s over. It was “over”, but that undercutting of Leader Radogno, in the harsh light of Raunerite reality… as a dreamer myself, it’s “my bad”, I thought that those in the GOP would see saving the state is most important.
Turns out, $71 million… or looking back to $20 million”, an “additional $50 million”, the millions Diana Rauner gave to hold Raunerites… that’s what’s important.
A hill worth dying on. Rauner’s destruction surrounds that hill. If there isn’t a chance to find a compromise, that destruction will engulf that hill, or any hill either side wants as the “last” hill.
They need to find compromise, Rauner and Cullerton. Then, go after Madigan.
The Raunerites gave up any chance of being significant, even as Leader Radogno tried to show them the way.
- Rich Miller - Monday, May 22, 17 @ 9:52 am:
===How is 4 the middle between 2 and infinity? ===
Because it’s the only current proposal between the two.
- Lucky Pierre - Monday, May 22, 17 @ 9:56 am:
Why is it harsh to undercut Radogno’s two year freeze when the House passed a permanent freeze?
You guys act like the Governor is just a potted plant who should have no say in the matter even when he agrees with what the House passed.
If the local voters want to unfreeze their property taxes they can do so via referendum. As Senator Harmon says, Oak Park residents do that regularly.
Taking huge property tax increases off auto pilot and forcing an approval from local voters is good policy.
Something needs to happen to consolidate one school districts and this would certainly provide the needed push.
- A Jack - Monday, May 22, 17 @ 10:04 am:
A four year temporary freeze seems reasonable to me. A taxing district should be able to plan around a four year freeze almost as easily as a two year freeze.
Most of the real estate tax goes to the school district, and unless they are in an area of exploding population growth, they should be able to go a few years without an increase. I have certainly managed quite well with my stagnant wage increase.
- Grandson of Man - Monday, May 22, 17 @ 10:06 am:
I agree very much with the political angle. Good politics has to be an element of good government, and something like not voting for a property tax freeze for two more years may ruin so much politically. It would give Rauner a win, which in the long run could hurt the entire DPI.
The last thing to do is give a sinking political opponent a huge lifeline.
- Chicago Cynic - Monday, May 22, 17 @ 10:08 am:
One might say this is nothing more than a duct tape solution and it’s such bad public policy that everyone in and around government knows it. I get the politics, but if you’re in a local community currently stretched to the bring that unfortunately relies on property tax revenues, this is absolutely killer. We need bigger solutions to the inequitable property tax system in our state.
- Oswego Willy - Monday, May 22, 17 @ 10:12 am:
===You guys act like the Governor is just a potted plant who should have no say in the matter even when he agrees with what the House passed.===
You kept saying it was Madigan, Cullerton, others that blew up the Grand Bargain.
This says Rauner blew it up, he’s not a potted plant after all.
You’ve admitted Rauner fails, you now admit Rauner blew up the Grand Bargain too? You’re not helping, lol
- Hamlet's Ghost - Monday, May 22, 17 @ 10:15 am:
To continue with the Mr. Roberts theme, potted plants are best tossed overboard.
- Free Set of Steak Knives - Monday, May 22, 17 @ 10:33 am:
=== The House overwhelmingly passed a permanent freeze. So how about they do a four-year freeze as a compromise in the middle? ===
How about a permanent freeze for any county where the residential property tax rate is above a certain threshold…say 1.93%.
Require a referendum within a taxing body to lift the freeze.
For counties where the rate is below 1.93%, make it a two year freeze.
Seems like a better compromise to only permanently freeze rates where the rates are actually high.
1.93% BTW is the most recently reported median rate I can find.
- Lucky Pierre - Monday, May 22, 17 @ 10:36 am:
Keep up OW the Grand Bargain is not dead.
I get it in your world only Democrats can influence policy. Madigan is virtuous for passing a permanent property tax freeze in the House.
Rauner is to be demonized for compromising on a four year freeze with Senator Cullerton.
Republican Governors have to totally capitulate to the Democrats to get an atta boy from you.
- Jocko - Monday, May 22, 17 @ 11:11 am:
Even if Cullerton were to agree to two years, what has Rauner done to show that he’d hold up his end of the bargain? Bruce is the embodiment of “acting in bad faith”.
- Lucky Pierre - Monday, May 22, 17 @ 11:20 am:
Typical subterfuge from the GA
House votes fro a permanent freeze. Senate wants a two year freeze.
My prediction is they both eventually get what they want which is no freeze at all. Then they run ads on how they want to protect property tax payers
- James Knell - Monday, May 22, 17 @ 11:27 am:
“What, no budget again???”
- Rod - Monday, May 22, 17 @ 11:39 am:
There is no such thing as a “a permanent freeze” of property taxes. Every law enacted relating to local taxation powers can be revised by the General Assembly. Calling it “permanent” makes that revision harder without question. For that matter a five or four year freeze can be revoked too.
Once higher income school districts begin to make big cuts due to the reality that state funding will likely not be consistent over multiple years under frozen property taxes, the howling will begin and even some Republicans may want to revoke a full freeze.
- walker - Monday, May 22, 17 @ 11:55 am:
Always great politics to lower or freeze taxes, especially when you can force another unit of government to take the hit. It’s a choice between winning public favor, and good governing.
- Demoralized - Monday, May 22, 17 @ 12:39 pm:
Lucky:
Do you get a kick out of playing the victim constantly? For you if you don’t support your version of events then you automatically must support Madigan or the Democrats. It’s utter nonsense and you argue like a 3 year old.
- Demoralized - Monday, May 22, 17 @ 12:40 pm:
And, also, as you castigate others for never not criticizing Madigan and the Democrats you are the flip side by never, ever, ever criticizing the Governor. The hypocrisy is unbelievable.
- Oswego Willy - Monday, May 22, 17 @ 12:44 pm:
===Grand Bargain is not dead.====
This is not that Grand Bargain.
No need to keep up, Leader Radogno stated herself Rauner blew up the Grand Bargain.
You were reminded of Rauner blowing up the Grand Bargain by our host too.
Willfully ignorant, blissfully unaware - Lucky Pierre -?
===I get it in your world only Democrats can influence policy===
This sentence only works if you agree Rauner blew up the Grand Bargain forged by Leader Radogno. So, there’s that.
===Madigan is virtuous for passing a permanent property tax freeze in the House===
Why was it rejected by Rauner? Hmm.
===Republican Governors have to totally capitulate to the Democrats to get an atta boy from you.===
1) Rauner is a Raunerite, not a Republican.
2) A governor allowing a leader in a chamber to negotiate a deal, and that leader gets agreement, if that governor works with that leader to get all side to passage, I applaud that.
A governor, in a wholly dishonest way, allows a leader to negotiate a deal, then pulls every vote of that leader’s caucus off that agreement, or face a primary challenge, that won’t get much of an applause from me. Ever.
- Oswego Willy - Monday, May 22, 17 @ 12:47 pm:
===My prediction is they both eventually get what they want which is no freeze at all. Then they run ads on how they want to protect property tax payers===
… while Rauner runs away from Gov. Rauner’s failures, even you - Lucky Pierre - admit;
No budget
Destroying social services
Squeezing higher education to the brink of university closures.
Hmm.
Where are the Rauner accomplishments?
- Free Set of Steak Knives - Monday, May 22, 17 @ 12:58 pm:
=== Once higher income school districts begin to make big cuts due to the reality that state funding will likely not be consistent over multiple years under frozen property taxes, the howling will begin and even some Republicans may want to revoke a full freeze. ===
Yeah, but unfortunately before that happens, a lot of the poorer school districts will already be shuttered.
- Lucky Pierre - Monday, May 22, 17 @ 1:02 pm:
Calling out the shenanigans in the property tax system in Cook County is a huge win for Rauner.
The system is a conflict of interest for the politicians like Ed Burke, Senator Cullerton and Speaker Madigan pretending to be on the side of the middle class while they shift the property tax burden to the bungalow belt from the skyscrapers downtown.
Huge campaign contributions from the property tax lawyers to the Assessor Berrios all overseen by Speaker Madigan who makes 7 figures a year in his other part time job as a property tax lawyer.
Even billionaires like Pritzker pay big bucks to get their assessments reduced while whining that the billionaires are not paying their fair share.
Rauner gets criticized by the usual suspects for trying to reform one of the biggest reasons people leave Illinois, unaffordable property taxes.
- Demoralized - Monday, May 22, 17 @ 1:27 pm:
==a lot of the poorer school districts will already be shuttered.==
I think that’s the point. Forced consolidation.
- Oswego Willy - Monday, May 22, 17 @ 1:37 pm:
===Calling out the shenanigans in the property tax system in Cook County is a huge win for Rauner.====
How many homeowner exemptions did Rauner himself apply?
===Huge campaign contributions from the property tax lawyers to the Assessor Berrios all overseen by Speaker Madigan who makes 7 figures a year in his other part time job as a property tax lawyer.===
Bruce Rauner made $144 million… “retired”
===Even billionaires like Pritzker pay big bucks to get their assessments reduced while whining that the billionaires are not paying their fair share.===
… to pay for Chicago schools, a place where Diana and Bruce Rauner purposely and intentionally took a seat from a worthy Chicago student so their Winnetka-living and denied daughter could sit in that seat.
===Rauner gets criticized by the usual suspects for trying to reform one of the biggest reasons people leave Illinois, unaffordable property taxes.===
You mean Republican and Democratic municipal leaders? That’s fun
- Demoralized - Monday, May 22, 17 @ 1:44 pm:
To me any sort of property tax freeze is a “win.” Pick a number and go with it and be done with it. Make it a “clean” freeze with the ability of local voters to override it if they so choose.
The Governor seems to be for local control except when he isn’t. Local control over PW, local control over bargaining. Local control over property taxes (wait, we need a statewide vote for that).
And Cullerton needs to tell the Governor once and for all what he can pass. Give him the bottom line and tell him this is as good as it gets.
- RNUG - Monday, May 22, 17 @ 2:12 pm:
== Rauner gets criticized by the usual suspects for trying to reform one of the biggest reasons people leave Illinois, unaffordable property taxes. ==
If Rauner was truly trying to REFORM the system, he would be backing drastically increased state level school funding in EXCHANGE for drastically reduced and capped School district property taxes.
As long as he keeps calling for just a freeze, he is nothing more than a snake oil salesman.
- Grandson of Man - Monday, May 22, 17 @ 3:17 pm:
“If Rauner was truly trying to REFORM the system, he would be backing drastically increased state level school funding in EXCHANGE for drastically reduced and capped School district property taxes.”
This is what I’d support–changing the funding ratio to help lower property taxes. If Rauner was truly trying to reform the system, he’d also push for a progressive income tax CA. His considerable means would probably get this passed. But, he’d almost love public unions and fair share fees before he’d support progressive taxation.
- Galena Guy - Monday, May 22, 17 @ 4:33 pm:
With OW on this one - the hypocrisy of Rauner’s positions is stupefying.
- Skeptic - Monday, May 22, 17 @ 4:49 pm:
==a lot of the poorer school districts will already be shuttered.==
“I think that’s the point. Forced consolidation.”
Likely the conversation had with someone whose Kindergartener won’t have to ride the bus for an hour (no exaggeration) to get to school. “Forced consolidation” has its costs.
- peon - Monday, May 22, 17 @ 6:15 pm:
== As long as he keeps calling for just a freeze, he is nothing more than a snake oil salesman. ==
Yes. It’s worse in many ways because he is from a business background. He should know better.
- Mama - Monday, May 22, 17 @ 7:06 pm:
A freeze does not help any property taxpayer. A freeze only chokes local government and the schools.
- blue dog dem - Monday, May 22, 17 @ 8:51 pm:
RNUG@9:11. I believe there is tremendous waste of tax payers dollars at the local level. From O’Fallon to the southern tip of the state, I can show you a minimum of ten high schools that have new sporting complexes that exceed $7 million dollars to construct. I can find you 15 football/teacher positions that knock down /$90k annually. I can go on and on and on….