Daley blasts guv’s rhetoric, plans
Tuesday, Mar 13, 2007 - Posted by Rich Miller
Mayor Daley let loose on the governor today, noting that he favors a tax swap and pointing out that the governor hasn’t yet guaranteed any property tax relief. But what got his dander up the most was the rhetoric used by the governor in his budget address…
“Business people are not fat cats. I object to saying that … The idea of trying to divide businesses out of this city and state is a serious mistake. Why? They don’t have to be here. They can go to Wisconsin. They can go Indiana. They can go to India. They can go to China. So, if you want to beat up businesses, go beat them up and when they leave, just wave to them and they’re going to wave back to you,†Daley said.
“I have a good working relationship [with business]. That doesn’t mean I [don’t] differ with business on issues. But I don’t have to publicly condemn them continually. I think it’s a mistake. There has to be a meeting of the minds in regards to education. I think the business community wants to improve education. But…you don’t have to go and beat them up.â€
And on the gross receipts tax…
“The idea is good. But, how does it effect real estate taxes? I’m gonna increase gross receipts. I’m gonna increase real estate taxes. I’m gonna increase all the other taxes. So, where’s the benefit to the public in the long-run? And how are people gonna pay that? Are they gonna pass this on to consumers? If business can pass it on to consumers, then you’re gonna hit the consumers twice,†he said. […]
[Asked] if he would favor an alternative to the Blagojevich plan, Daley said, “There’s a lot of alternatives down there already. Don’t worry. The income tax. A lot of things. At least people are willing to present a plan. That’s what we want. You have to educate our children. We don’t even have a full-day kindergarten in Illinois. We’re supposed to be progressive. We’re supposed to be a blue state. We are not progressive in education.â€
Did I just see Mike Madigan smile that Cheshire Cat grin of his?
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Question of the Day
Tuesday, Mar 13, 2007 - Posted by Paul Richardson
It appears that the security camera requirement for Chicago businesses is running into opposition:
Chicago aldermen gave a cold reception Monday to a long-stalled proposal that would require all businesses in the city open late to install security cameras.
Ald. Ray Suarez had tinkered with the ordinance, which he first proposed more than a year ago, in hopes of gaining more support.
“We tried to amend certain parts where people had concerns,” said Suarez (31st). “This is not about punishing people or putting a burden on anybody. This is about safety.”
Opponents of the ordinance conceed the protection benefits from the cameras, but they are worried by the ever-growing reach of the government:
“I’m very concerned about the slippery slope we tread on when we talk about foregoing liberties for the sake of safety,” said Ald. Freddrenna Lyle (6th). “I think it is absolutely the wrong decision.” …
Ald. Tom Tunney (44th), owner of the popular Ann Sathers restaurants, said he thought the proposal was “overreaching.” …
Police and other city emergency departments said they favor the bill because it would help fight crime and response to disasters, while business groups testified in opposition.
This debate between “public security” and “freedom” seems to bear its head quite often with issues like this: seat belt laws, cell phone bans, smoking, HPV vaccine, on and on…
Question(s): On what side of these issues do you usually fall, security or liberty? Somewhere in the middle? What general principles should guide these government decisions?
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The kid’s alright
Tuesday, Mar 13, 2007 - Posted by Rich Miller
Whatever might have been said about Alexi Giannoulias last year, he’s certainly getting off to a fine start as state treasurer. First it was cleaning up the Cellini hotel mess, now it’s a much better deal - and a bunch of new scholarships to boot - for the college savings program Bright Start.
Until recently, the $2.2 billion fund was managed by Baltimore-based Legg Mason, whose underperfoming funds placed the Illinois education savings program 48th out of 49 in a ranking of college savings programs, according to Savingforcollege.com, an independent analysis firm based in New York. Bright Start has been running for about seven years.
Following a competitive-bid process, the state signed a seven-year contract with Oppenheimer Funds Inc., headquartered in New York, which will lower existing fees and offer three times as many portfolio options for families, said state Treasurer Alexi Giannoulias.
For example, under the new program, families contributing $3,000 a year with an 8 percent rate of return will save a total of more than $5,000 in fees by the time their child is 18, according to Giannoulias’ office.
The transfer will occur over the next few months at no cost to the families or the state; Oppenheimer will absorb all transaction costs, Giannoulias added. […]
Also included in the contract with Oppenheimer is the formation of a $3.5 million scholarship fund for Illinois students. Giannoulias said his office would work over the next few months on the qualifications for the scholarship money, set to be around a total of $500,000 a year.
I don’t usually hand out praise, but I can'’t say enough positive things about Giannoulias right now. He’s vastly exceeding expectations so far, and the reports that I get from inside the office are that he’s running a highly professional show and resisting entreaties from political types to install their people.
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Caught in a lie?
Tuesday, Mar 13, 2007 - Posted by Rich Miller
This could end up being a very big story.
As I’ve told you before, the attorney general is investigating whether Ameren improperly pushed its substantial discount for all-electric homes and businesses on consumers long after it knew that the break was being eliminated. The company denies it…
Leigh Morris, a spokesman for Ameren, said the electric utility had quit more than a decade ago promoting its all-electric discount, although it remained in existence until Jan. 2, when new higher rates took effect.
But some customers say otherwise…
But other AmerenIP customers interviewed by the News-Democrat contend that as recently as last year the utility had tried to encourage them to buy houses with all-electric heat, while keeping quiet about the discount’s impending termination. […]
“We met with Ameren and we said, ‘What is the most economical way to go?” Nuelle said. “And they said, ‘We have a special discounted rate for all-electric buildings. It’s going to save you this much money per kilowatt hour.’ Well, we went with it.”
But since the new electric rates went into effect in January, along with the end of the all-electric discounted rate, the building’s power bill jumped to $6,900 in February from $2,800 the previous February, Nuelle said.
Read the whole thing.
There’s lots more Ameren coverage from late yesterday - Moody’s downgrading its credit rating and Ameren getting approval for and then yanking a rate relief plan - down below. Just click here if you don’t feel like scrolling.
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Taxes and health care
Tuesday, Mar 13, 2007 - Posted by Rich Miller
* My syndicated column this week was about the governor’s amazingly quick turnabout on property tax relief.
Gov. Rod Blagojevich proposed no direct property tax relief during his annual budget address at the Statehouse last week, but he told me in an exclusive interview afterward that he would back the idea if a crucial Senate Democrat demanded it.
* Cheryle Jackson, who was the governor’s press secretary until recently, didn’t have very kind words for the governor’s gross receipts tax during an interview with the Chicago Defender…
Chicago Urban League President Cheryle Jackson told the Defender that she likes what Blagojevich is trying to do, but she doesn’t agree with the taxation of businesses, which would include some small businesses. […]
“The number one creator of jobs in the Black community is Black businesses. Black business owners are the most important factor in creating jobs in the Black community. The Chicago Urban League’s main priority is to help Black businesses grow.”
“What this legislation does is penalizes the very thing that is the answer to economic development and job creation in the Black community,” Jackson continued. “It penalizes and discourages the very thing that is going to increase more jobs and increase more development in the Black community.”
Jackson would like the governor focus on a plan such as property tax relief, which she said would bring more economic development and money for education to African American communities.
* A story in the SJ-R yesterday reported on how Indiana got rid of its gross receipts tax. But buried way down was this…
Illinois business leaders predict a gross-receipts tax will lead to lost jobs and hurt economic activity. However, Indiana officials admit it’s difficult to document that getting rid of the tax has led to job growth and increased economic activity.
* I’m not sure I linked to this story before the budget address, but it was a good piece about a study done on corporations that don’t pay Illinois income tax…
The Citizens for Tax Justice study found Boeing did not pay income taxes to any state during two of the three years studied, 2001 to 2003. During the two years in which Boeing did not pay state corporate income taxes, the company turned a combined profit of $3.1 billion, McIntyre said.
Other profitable Illinois-based corporations such as Caterpillar, Tribune Co., Sears and Sara Lee successfully avoided paying any state’s corporate income taxes during at least one year of the period studied by Citizens for Tax Justice.
Although tax returns for companies, as well as individuals, are private, the institute was able to determine whether companies were able to avoid state taxes by analyzing documents publicly traded companies must file with the Securities Exchange Commission.
Is it any wonder why the Trib flip-flopped on the GRT?
* The Daily Herald has a brief story about the new ad that Gov. Blagojevich appears in on behalf of his tax hike.
* Insurance giant Aon has some kind words for the governor’s health insurance plan.
Aon applauds Governor Rod Blagojevich’s efforts to craft a health care plan that would provide affordable coverage options to the uninsured and underinsured, and address catastrophic illness and injury. Aon’s own Health Care Trend survey warns about the impact of double-digit health care rate increases.
* Stephanie Silvers of Small Newspapers has a couple of very good stories about the state’s underfunded, slow to pay Medicaid system that patients find bewildering an unhelpful. State Medicaid system overwhelmed… Dentists hard to find under Medicaid
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Somebody doesn’t know the difference between “may” and “shall.”
A Champaign attorney argues the University of Illinois violated state law by doing away with the Chief Illiniwek mascot and filed a lawsuit Monday to save the American Indian mascot.
In his lawsuit, John Gadau cites a 1996 state statute in which the General Assembly declared ‘’Chief Illiniwek is, and may remain, the honored symbol'’ of the university.
When university board of trustees Chairman Lawrence Eppley in February announced the end of the chief’s performances at sports events, Gadau argues, Eppley and the board of trustees violated that statute.
Gadau’s lawsuit, filed in Champaign County Circuit Court, asks a judge to nullify last month’s decision.
The full statute can be found here.
If the General Assembly had passed a law stating that the Chief “shall remain” the mascot, symbol, whatever, then Gadau would have a point. As it is, the statute means nothing. It is as symbolic as a goofy white boy dancing at halftime, or this lawsuit.
Meanwhile, the final end is near…
The University of Illinois Board of Trustees will consider two resolutions at its meeting Tuesday that offer very different paths for the future of Chief Illiniwek — one would formally retire the controversial symbol, while the other would renew the fight to keep it.
The first resolution, submitted by University President B. Joseph White for Tuesday’s meeting in Urbana, would formally ratify board chair Larry Eppley’s Feb. 16 decision to stop the controversial figure from performing at Illini sporting events.
The other resolution, which probably will not pass, would have the trustees join the lawsuit against the NCAA filed by two former mascots. The former mascots, by the way, want the university to give them the Chief trademark.
*** UPDATE *** What’s done is done…
The University of Illinois swept aside the last vestiges of Chief Illiniwek Tuesday, voting to retire the mascot’s name, regalia and image.
The resolution lets Chancellor Richard Herman decide the details such as how and when the Chief Illiniwek name and image would stop being used and licensed to apparel makers and others.
The school would continue to call its sports teams the Fighting Illini under the resolution.
Trustee David Dorris offered the only dissent Tuesday among the 10 voting members.
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Budget News
Tuesday, Mar 13, 2007 - Posted by Paul Richardson
* Blagojevich tax hike may ease property tax burden
* Cross disappointed governor didn’t mention property tax relief in plan
* Governor’s plan has some appeal
“It will not be a burden on small businesses,” Batchelov said. “But what it will do is get the larger corporations who make from $1.5 million, and up, profit from their merchandise pay a fair share.”
* Illinois Treasurer Giannoulias is cautious about supporting the GRT
“Our pension system needs help, obviously,†Giannoulias said Monday at a Statehouse news conference. “Health care for everybody would be great. I just, I want to make sure the GRT didn’t place too much of a burden on the consumers at some point. … I want to look at it a little more.â€
* Republicans voice disapproval with governor
Cross joined fellow GOPs, State Sen. Dave Luechtefeld, Carbondale Mayor Brad Cole and 87th district Rep. Bill Mitchell in Carbondale Saturday to call on Blagojevich to start showing some leadership, stop expanding programs the state can’t pay for and end the tirade against businesses they fear will drive more jobs out of Illinois.
* Cross attacks tax increase plan in visit to Marion
* Editorial: Better schools, more healthcare coverage with Blagojevich plan
If he can build public support and successfully steer it through the General Assembly, the people of Illinois could enjoy a healthier, more prosperous future, and the state could set an example for the rest of the nation.
* Kane County Editorial Cartoon: Blagojevich plan
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Morning Shorts
Tuesday, Mar 13, 2007 - Posted by Paul Richardson
* Prosecuters seek to reduce Falwell prison term by 6 months; helps feds with 5 cases
* Chicago postal officials promise to correct problems
A U.S. Postal Service audit ranks overnight mail delivery in the city as the worst in the nation. City and state lawmakers are calling for improvements.
* Sun-Times Editorial: From pony express to phony express
* Editorial: Postal service needs to improve
* States tackle texting behind the wheel
* Medicaid working better but some still leery
* Blagojevich announces $3.2 in federal housing rehabilitation grants
* Mayor Daley calls for increased city recycling
* Rothenberg Political Report: For the Thousandth Time: Don’t Call Them ‘Push Polls’
* Kiley Developmental Center set up to fail with inadequate funding and staffing
* Early primary push upends 2008 presidential campaign plans
* Pat Quinn says Illinois should think green, use resources
* Governor wants more middle managers in prison system
* Using google earth for census data
* Illinois to drastically cut back the number of coal-fired power plants
* Left lane violators unlikely to be issued a ticket
* Get use to Giuliani visiting Illinois
* U.S. prosecutor Patrick Fitzgerald has built a reputation for going after the influential
* Tardy high school PSAE scores show few gains
* U of S faculty afraid of losing out to “Global Campusâ€
* Mark Brown: Aldermen reconcile their Olympic dreams with reality
Over at the City Council on Monday, the aldermen were in a pickle. They were expected to give their support to a $500 million city financial guarantee for operating cost overruns for the 2016 Olympics, even though most of them hadn’t been told such a possibility existed until a few days ago.
* Tax money spent on west side aquatic center in Olympic plan?
* State Senator’s brother back at city job after fight
* Rolling Meadows and Arlington Heights weigh smoking ban effect; 1 to gauge sales-tax changes; other wants statewide prohibition
* Editorial: Public servants should be accessible to the public
* States shouldn’t tax military pay away from home
When it comes to taxing military pay, Illinois has it right - and other states should follow our example.
Illinois is among only five states that exclude military pay from state taxation.
* Bill aims to give cyclists more room on the road
* Davlin, Strom meet in 1st Springfield mayoral debate
* Election ruling assures Ald. Solis another term
* Jackson Jr. endorses Dowell over Tillman
* Egan endorses Vi Daley reelection
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