I just sent out an “extra” but I thought you might like to comment on this new development here. From a Senate President Emil Jones press release…
“I want to clarify unequivocally that I will not call any bill for a vote that raises the income tax or sales tax on people. The GRT will provide statewide property tax relief and put $10 billion more dollars in our education system in Illinois. The GRT is the fair way to fund education and healthcare and to make sure big business is paying its fair share.â€
Jones had said before that he might call another tax bill for a vote if the gross receipts tax failed. This statement ups the ante in a huge way.
It could be a long, hot summer in Springfield, campers.
*** UPDATE *** This is what Sen. Jones said right after the governor’s budget address…
[Asked about whether he would call HB/SB 750 for a vote…]
“I do not intend to put two tax proposals out there for the members to be voting on.”
[Asked what would happen if the GRT doesn’t pass…]
“Well, if it doesn’t pass then we go back to the drawing board, as we’ve done in the past.”
That statement is now, apparently, “inoperative.”
During that press conference, when Jones was pressed on whether he was leaving the door open to a personal income tax increase, he said, “No.”
However, when Jones was specifically asked whether the income tax increase was dead for this session, he said, “Possibly.”
*** UPDATE 2 *** Meanwhile, the governor was red-baited by yet another editorial board, this time it was the Belleville News-Democrat…
We’d rather have lawmakers spend time debating the consequences of Comrade, er Gov. Rod Blagojevich’s gross receipts tax
Unreal.
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Question of the day
Monday, Mar 26, 2007 - Posted by Rich Miller
I wondered why no comments were appearing this morning. Had I been abandoned by my readers? Was it something I said? Were you seeing someone else?
It turns out, I forgot to open comments after the weekend break. Oops. Sorry about that.
Anyway, here’s the question: What should be the “Official State Food of Illinois”?
Snark is encouraged, of course.
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He’s everywhere
Monday, Mar 26, 2007 - Posted by Rich Miller
Just about any client that former Blagojevich chief of staff Lon Monk signs up for his new lobbying firm will have some connections - direct or indirect - to the Blagojevich administration. But the Daily Herald found another string that runs through all but one of Monk’s new client base: GOP power broker Bill Cellini…
• The Illinois Asphalt Pavement Association, where Cellini is executive director. An investment firm owned by Cellini’s two children got a contract under Blagojevich with the Illinois State Board of Investment to invest $60 million in state worker pension funds.
• The Stough Group, a Hinsdale firm that builds affordable housing for seniors and relies on state-backed loans and rent subsidies through Blagojevich’s Illinois Housing Development Authority. Stough executive Michael Pizzuto used to work for another Cellini company. Blagojevich also appointed Pizzuto to the State University Retirement System board.
• Public Issues Management, the lobbying firm of Fernando Grillo, whom Blagojevich appointed director of the agency now known as the Illinois Department of Financial and Professional Regulation. Grillo used to regulate doctors but now lobbies for them on behalf of the Illinois State Medical Society. The medical society uses Cellini to manage its real estate holdings. And Grillo hired Monk to lobby with him on the doctors’ behalf.
And in case you forgot…
In the Rezko indictment, prosecutors listed Cellini as “Individual A,†alleging that he was an intermediary as Rezko and convicted political insider Stuart Levine attempted a $2 million shakedown of a businessman seeking state pension business. Cellini has not been charged in the case.
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The kid’s allright - Part 2
Monday, Mar 26, 2007 - Posted by Rich Miller
I saw Treasurer Alexi Giannoulias hanging out on a park bench near the Statehouse last week, shoes off on a beautiful day, Chicago Olympics financial report in hand.
We talked about various things, and he mentioned to me that former Treasurer Judy Baar Topinka wasn’t getting enough credit for the recent Bright Start college savings program revamp. I was planning to do a piece about that this week, but the Tribune editorial board beat me to it…
The core of the new program was negotiated by Judy Baar Topinka as she was finishing up her term as state treasurer. She allowed her successor, Treasurer Alexi Giannoulias, to negotiate the final details and he got some very sound improvements. They deserve credit for cooperation in a Republican-to-Democrat transition.
Giannoulias told me last week that Topinka also got the ball rolling in a major way on cleaning up the Springfield Cellini hotel mess, but that she didn’t want to take credit for it during the gubernatorial campaign because it would have brought up a sore subject.
Again, high praise for Giannoulias. He didn’t have to share credit, but he did. Class act.
Also, in case you were wondering if he was playing hooky from work, Giannoulias made it a point to say he was on his lunch break.
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For whatever reason, my syndicated column hasn’t been posted yet this morning at the Southtown’s site, but I sent them an e-mail so you’ll be able to find it here later this morning. [UPDATE: The column has now been posted. Here’s the direct link.] The gist of the piece is that there are aspects of both major tax plans currently on the table that haven’t been discussed much.
First, the governor’s gross receipts tax…
The governor has claimed that his proposal is all about “tax fairness” because “fat cat” corporations are not paying their fair share of income taxes. He’s right about the corporations avoiding taxation, but a family-owned restaurant that sells a little over a million dollars worth of food every year (and there are lots of them) aren’t what you would normally think of as fat cats.
State Sen. James Meeks (D-Chicago) claims Gov. Rod Blagojevich’s chief of staff told him that if the state moved the minimum taxation level from $1 million to $2 million, the government would lose $450 million a year in revenue. Meeks believes that the “real” money from this proposed $6 billion tax hike will come mainly from small to medium sized businesses, not giant multinational corporations, and I’m betting he’s right.
And now, HB/SB 750, more commonly known as the “tax swap”…
Meanwhile, Meeks is supporting House Bill 750, which is almost universally described as a “tax swap.” In the past, similar legislation “swapped” a large income tax increase for large cuts in the property tax. However, almost never mentioned is that this new legislation would extend the state sales tax to all sorts of services.
The Center for Tax and Budget Accountability, which also backs the Meeks bill, estimates that the revenue generated from those new service taxes would come to about $2 billion in the first year.
The idea of taxing services is fiscally sound. The service sector is where the real economic growth is, so the current state income and sales tax revenues aren’t keeping pace with the growth of the economy. But implementing such a broad tax on services has in the past proved politically difficult. Many service-oriented business have close contact with their regular customers, and they’ve been able to use those relationships to pressure state legislatures all over the country to beat back service taxes. Barbers tend to be the most outspoken, and they have extremely loyal customer bases.
In addition to barbers and beauticians, the legislation would tax services and businesses like travel agents, computer repairs, carpet cleaning services, dating services, dry cleaners, storage units, nail and skin care, consumer goods rentals, diet services, private investigation services, bail bonds, photo studios, interior designers, collection agencies, auto repairs, parking lots and garages, towing services, amusement parks, racetracks, bowling alleys, cable TV, golf courses and country clubs, fitness and recreational sports centers, sports teams, performing arts companies, miniature golf, sightseeing tours, limo services, movie theaters and more.
* Meanwhile, Copley takes a look at Gov. Blagojevich using “God” as a legislative ally.
“I’m personally offended by the governor trying to bring God into the debate of fiscal policy and taxation,” Doug Whitley, president and CEO of the Illinois Chamber of Commerce, said Friday. […]
“Is he laying it on too thick? I think so,” state Rep. Lou Lang, D-Skokie, said. “There simply is no way to know his motivation. I’m thinking it’s mostly just rhetoric, as unfortunate as it may be.”
Copley then digs up two unlikely proponents…
Muslim leader Abdul Malik Mujahid, meanwhile, said he would not object if Blagojevich had used blatantly Christian language. “I consider poverty to be a moral issue, and I also consider medical coverage to be a health-justice issue,” said Mujahid, chairman of the Council of Islamic Organizations of Greater Chicago. “People of all faiths are concerned with moral issues.” […]
Illinois atheist Rob Sherman said he has no problem with the governor’s allusions to God because Blagojevich has couched his comments as opinion, not fact. Sherman said Blagojevich’s approach is different from that of Alan Keyes, the 2004 Republican candidate for U.S. Senate who recently contended that Jesus would not vote for Democratic presidential nominee Barack Obama.
Blagojevich is “merely expressing what he believes God wants, rather than saying he’s God’s spokesman,” Sherman said.
* Aaron Chambers looks at the same topic and comes to this conclusion…
The feds are investigating his fundraising, contracting and hiring practices. The state’s bills are backed up by $2 billion. Other leading Democrats are lining up at the Capitol against him.
Masses of people are clamoring for significantly more state spending on schools. ComEd and Ameren, the state’s largest electric utilities, are raising their rates exponentially. His apparent ambition to run for president was eclipsed by U.S. Sen. Barack Obama, another liberal Democrat from Illinois.
On Monday, the governor’s taxpayer-paid staff continued a statewide blitz promoting his plan. They issued a news release saying it “could reverse the course of HIV/AIDS in Illinois.â€
The devil is in the details, but God is in the message.
Blagojevich may well need him.
* Other budget/tax coverage…
* Tax cap hits Southland businesses hardest
* Blagojevich questions fairness as he pushes new business taxes
* Triple threat hit governor’s tax plan
* Observers say Lt. Gov spat could hurt Blagojevich’s tax plan
* Editorial: Listen to critics of GRT
* Dissention within the Democratic ranks on Governor’s tax plan
* Kane: Critic overstated impact of tax
* Agency head says governor’s plan will make tax system fairer
* Illinois’ health director urges support for Governor’s agenda
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“The Hat” attack
Monday, Mar 26, 2007 - Posted by Rich Miller
It appears that my column in Friday’s Sun-Times might possibly have sparked a bit more coverage of the 3rd Ward aldermanic race featuring embattled incumbent Dorothy Tillman and hard-charging union-backed challenger Pat Dowell. The paper has two stories and a column today that either feature or include the race.
* Laura Washington (who I know was working on her own Tillman piece around the time my column was published)…
Senator and presidential wannabe Barack Obama is stepping into the aldermanic fray to help rescue Ald. Dorothy “The Hat” Tillman from oblivion. Tillman’s got an iron grip on every nickel that rolls into the 3rd Ward and has pulled in the backing of virtually every black big shot in the city.
* Fran Spielman…
Ald. Dorothy Tillman (3rd) has made national headlines as a champion for slave reparations and sponsor of a disclosure ordinance that requires city contractors to come clean about past ties to the slave trade.
But the publicity “rings hollow” in Tillman’s South Side ward, according to Pat Dowell, who faces off against the 24-year incumbent in the April 17 runoff.
“Reparations start in your own backyard. She’s not taking care of her own backyard,” said Dowell, who got 38 percent of the vote to Tillman’s 42.9 percent in a Round One field of five Feb. 27.
* And Scott Fornek includes the contest in a broader piece that looks at union involvement in the aldermanic contests…
Based on his union’s polling and the February results, Morrison predicts at least five aldermen should start cleaning out their desks: Madeline Haithcock (2nd), Dorothy Tillman (3rd), Shirley Coleman (16th), Ted Matlak (32nd) and Bernard Stone (50th).
Tillman did not respond to requests for an interview, but the others all dismissed Morrison’s predictions — some with a thumb to the nose.
“Bring it on. Bring it on,” Coleman said. “Their money bought the first election, but it’s not going to buy this one.”
Stone said: “They can stuff their polls because everything I show is exactly the opposite.”
I’m not so sure about Stone, but the others are certainly in deep trouble.
* Back to Spielman’s story on Tillman, commenting on Pat Dowell…
“Pat is owned, bought and paid for by the unions. She’s on a mission to give this community over to the land-grabbers, and she’ll say or do anything to carry that mission out,” Tillman said, identifying one of the land-grabbers as the University of Chicago, where Dowell works.
Tillman is so far behind in the polls that she has to go nuclear negative to win this race. Expect lots more attacks like this.
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Morning Shorts
Monday, Mar 26, 2007 - Posted by Paul Richardson
* I-355’s $2 toll to be system’s highest toll road sticker shock; more here
* Downstate power struggle
* Testimonry ends in firings case
* Editorial: Lawmakers love to police how the rest of us live our lives
* Stone: Civil unions bill an apt compromise
* Gap widens between rich, poor hospitals
* Tribune Editorial: End the Big Ag subsidies
* State collects $8 million in license plate renewel late fees
* Hitt: We’ll have a problem if Illinois retreats on charter schools
Chicago has already made plans to open 10 new charter campuses in the next two years. If Davis’ legislation becomes law, at least nine of those campuses will never open. Thousands of students will have to change their fall plans, and millions of dollars will have been wasted on capital development.
* Most IL medical malpractice cases settle before trial
In Illinois, where the debate over medical malpractice reform has caused fireworks for many years, only about 12 percent of closed claims involving physicians or surgeons resulted in a payout. Of those claims, however, 17 percent generated payments of $1 million or more.
* Bill would ban flame retardant used in carpets
* Legislation would aid old Route 66 headquarters
* Editorial: Cook Co. needs commitment to long-term patients
* Messy past for Cook Co. cleaning ‘no bid’ contract company
* Plan would bring Board of Reviews out of the shadows
* County TB tax ends as district shuts down; new TB cases a record low
* Chicago property taxes to jump, but how high?
* McQueary: Pork, Chicago Ridge, and home lending
* Delaying bad news until after the election is ’so Daley’
* Austin tapped to lead Chicago City Council Black Caucus
* Son jailed in bribery scam hired as cop at water plant
“This is astounding, even by Chicago standards,” said Better Government Association President Jay Stewart. “In light of 9/11, there are genuine concerns at wastewater treatment plants. You can’t just walk onto those plants. To call this unwise would be an understatement. He has been given a second chance at the very thing he abused, and that was his public position.”
* Coffee klatches, politics sweet mix for candidates
It’s a cozy atmosphere, and that’s the point: coffee, conversation and a chance to meet local political candidates in an intimate surrounding. In Evanston and a few other Chicago suburbs, many candidates on the April 17 ballot are eschewing fancier fundraisers in favor of the coffee klatch as a way to reach voters.
* Jury hits the wall in Lake County sheriff pension scam case
* Does Elgin like it candidates homegrown?
* Harvey candidate: ‘I’m not going to be intimidated’
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