Capitol Fax.com - Your Illinois News Radar » 2007

Protected: SUBSCRIBERS ONLY - Speaker Madigan on tax hikes, GOP critics of the rate deal, recusing himself from property tax discussions; the governor’s health insurance plan, education funding prospects in the Senate and Stroger Hospital

Wednesday, Jul 25, 2007 - Posted by Rich Miller

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This just in… *** Important updates in “red” *** Panel passes cig tax hike *** Committee approves health insurance plan ***

Wednesday, Jul 25, 2007 - Posted by Rich Miller

[Bumped to the top because of breaking news.]

* 10:58 am - Chicago TV stations 2, 5 and 7 have all sent crews to Springfield. The Chicago TV people think something is about to happen. They’re gonna be sorely disappointed [or maybe not - see the next post]. Still, they did manage to get interviews with the governor yesterday, so the trip hasn’t been a total loss. Perhaps that’s why there was no leaders meeting yesterday. The guv may have been just too busy with the TV guys.

* 11:37 am - The Senate just waived posting requirements so that the cigarette tax hike bill (HB 556, SA 1) could be heard in the Senate Revenue Committee at 12:45.
Also, Senate Public Health Committee will meet at 1:15 today to take up the governor’s retooled health insurance bill.

The Senate Dems will hold a caucus later today on the health insurance bill, followed by session. If they have the votes, we could see some action today. I’ll bet that will be a pretty rough caucus meeting.

* 11:50 am - LOL. No wonder the governor’s campaign spokesman didn’t return a message I left about this item…

Only days after Antoin “Tony” Rezko was indicted on federal corruption charges last fall, Gov. Rod Blagojevich’s campaign moved quickly to try to limit the fallout and gave to charity political donations directly linked to one of the governor’s former top advisers and fundraisers.

But one charity eventually turned down the tainted money and sent the Blagojevich campaign a check back in March for $44,846.03, according to state-mandated campaign disclosure reports the governor recently filed.

Officials for the Texas-based Susan G. Komen Breast Cancer Foundation, now known as Susan G. Komen for the Cure, said they returned the money because they do not accept political funds. […]

Despite the Komen foundation’s explanation, state campaign disclosure records for the past seven years show the foundation and its Illinois affiliates previously accepted $2,110 in politician’s cash, ranging from an ad in a program book to fundraising tickets to outright donations.

* 11:56 am - The IL GOP has a new blog. What do you think?

* 12:25 pm - The governor has already said (to me, at least) that he will back a cigarette tax increase. The Tribune just got his spokesman on record as well…

“Yes. We support it,” said Rebecca Rausch, Blagojevich’s spokeswoman. “We’d like to see the money raised from the cigarette tax go to something like education or perhaps even health care.”

* 12:31 pm - The indispensible Billy Dennis, aka Peoria Pundit, is having serious computer problems and could use some help. If you have a few extra bucks, drop it in his tip jar. Thanks.

* 12:39 pm - What he said.

* 1:26 pm - There will be no leaders meeting today. They haven’t had one of those in awhile.

* 1:39 pm - Not exactly a huge surprise…

Cook County Commissioner Roberto Maldonado Announces his Candidacy for Congress

“During my twelve years as a Cook County Commissioner of the 8th District (which includes nearly half of the 4th Congressional District), I have championed legislation that brought homeowners tax relief, won workers a living wage, and passed numerous initiatives, including a mail order prescription drug program, that have opened the public health system for uninsured and underinsured families and seniors. I have successfully secured passage of several measures supporting immigration reform, and, recently, I claimed victory in declaring Cook County a “Fair and Equal County for Immigrants.”

*** 2:06 pm *** The Senate Revenue Committee just approved the cigarette tax hike 6-3 on a straight party line vote. One Republican (Sen. Murphy) was absent.

The governor’s revamped health insurance plan is up next in the Public Health Committee, which is meeting in the same room.

* 2:35 pm - The Illinois Republicans have posted the video from last night’s “Chicago Tonight” episode featuring House Republican Leader Tom Cross and Senate GOP Leader Frank Watson…

* 3:00 pm - Paul had this scoop the other day and I didn’t have room for it. Sorry, buddy…

With the formal announcement last week by Chicago attorney Jim Capparelli that he was throwing his hat into the ring, it appears Cong. Dan Lipinski (D-3rd) will have two opponents in the Democratic primary race set for Feb. 5, 2008.

About 250 people turned out to hear Capparelli make his official declaration of candidacy at a party held last Thursday evening at the Argo-Summit American Legion Post, 6050 S. Harlem Ave.

Western Springs resident Mark Pera, a Cook County assistant state’s attorney, had already declared his candidacy in the district, which takes in many of Chicago’s southwest suburbs, including Burbank, Bridgeview and Oak Lawn, in addition to several neighborhoods on Chicago’s Southwest Side.

* 3:20 pm - From the SJ-R…

Republicans on the committee opposed the bill. They were skeptical about the revenue estimates, especially since studies show higher cigarette taxes prompt people to quit smoking.

Bill Fleischli of the Illinois Association of Convenience Stores said higher cigarette taxes in Illinois will cause more people to stock up in neighboring states.

*** 3:42 pm *** The Senate Public Health Committee is still taking testimony on the governor’s revamped health insurance proposal, but some Senators had to leave so they took a roll call. It passed, along party lines, 7-4.

* 3:48 pm There’s a bit of a tussle at the committee hearing now because the vote was taken before opponents had a chance to testify. Not that it would’ve mattered.

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Protected: SUBSCRIBERS ONLY - Immigration; Crespo; Loans; Ackerman (Use all caps in password)

Wednesday, Jul 25, 2007 - Posted by Rich Miller

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Question of the day

Wednesday, Jul 25, 2007 - Posted by Rich Miller

Yesterday, I asked what you thought was the most corrupt organization or entity in the state.

Today, I’d like to know what you think is the least corrupt (or even most honest, if you’d go that far) entity in Illinois. Like yesterday, it doesn’t have to be a political or governmental entity.

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We’re Number One!!!

Wednesday, Jul 25, 2007 - Posted by Rich Miller

* Oy…

Illinois legislators are set to make history on Wednesday, but it is nothing to celebrate.

When they convene to try to end the budget stalemate, they will break the record for the state’s longest legislative overtime session – 55 days.

* History…

In 2004, it took lawmakers until July 24 to approve a budget for the fiscal year that started July 1.

* Sigh…

“I don’t think we’re anywhere closer than we were a week or two or three or four months ago. We’re in suspended animation. We’re going nowhere fast,” said House Minority Leader Tom Cross, R-Oswego.

* Stuck…

‘’I think the problems that exist with the budget still exist,'’ said state Rep. Gary Hannig, a Litchfield Democrat who serves as point man on budget issues for House Speaker Michael Madigan.

* Understatement…

“Holding the record for the longest overtime session in Illinois history is not one we should be proud of,” said Sen. Martin Sandoval, D-Chicago.

* Deadline looms…

Illinois Comptroller Dan Hynes says the state could keep operating for at least another week after the state’s spending authority expires on August 1.

But, Hynes insists he needs a budget outline by August 8 in order to send out the first round of school aid payments. After that, the comptroller said he needs money to pay state workers by August 9.

* But the deadline may help…

“We are in suspended animation,” said House Minority Leader Tom Cross, R-Oswego. “The only way we’re going to get something done is to find ourselves in a crisis situation. There’s no pressure to get anything done.”

Legislators are human beings, and humans don’t usually take big actions unless some sort of deadline is hanging over their heads.

* Spin…

“We’re going to break a record in terms of having the longest overtime session here in Illinois and I take pride in that because I’m not interested in settling for any old budget that doesn’t do anything for people,” Blagojevich said Tuesday. “Whether we finish tomorrow, next week or next month or however long, at the end of the day it’s what we do for people that matters.””

* Red herring…

The governor had scorn for general assembly Democrats who have speculated that Blagojevich might eventually go along with the income tax increase being pushed by House Speaker Michael Madigan.

“I’ll veto anything that they pass along those lines, and if they were to somehow override a veto, I’d keep them in special session to undo that,” Blagojevich said.

No Democrats are saying that the governor would go along with an income tax hike. I don’t know where that question came from. And the governor has no power to compel members to attend a special session. All it takes is two people in each chamber to convene the specials and adjourn them sine die.

* Good advice…

“They need to all sit down, put all their personalities aside and play nice in the sandbox,” [Senate Majority Leader Debbie Halvorson] said.

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Cigarette tax hike update

Wednesday, Jul 25, 2007 - Posted by Rich Miller

* I thought I had a scoop this morning about the cigarette tax proposal, but the Tribune also got the story…

- The state’s cigarette tax would increase by 75 cents under a measure Senate Democrats are pushing as Gov. Rod Blagojevich and the General Assembly struggle to find a way out of the overtime standoff that enters a record 55th day on Wednesday.

The proposed cigarette-tax hike represented the latest move in an elusive search for new revenue that could grease a budget deal, but it would not be enough on its own to satisfy some demands for spending.

A 75-cent-a-pack increase on cigarettes would place Illinois among the highest in the nation for state tobacco taxes. The move comes on the heels of the success of the anti-smoking advocates who this week saw their longtime push to have a smoking ban in Illinois signed into law.

Sen. John Cullerton (D-Chicago), sponsor of the measure going before the Senate Revenue Committee on Wednesday, said the tax would produce about $304 million a year but provide benefits far beyond dollars.

The Senate Democrats as a caucus are not “pushing” the tax hike yet, as subscribers know. But we could see a vote on this bill in today’s Senate Revenue Committee.

* Speaker Madigan said last weekend on WBBM Radio’s “At Issue” program that he could support a cigarette tax hike to fund healthcare expansions, so the idea is definitely alive and well.

* More from the Trib story…

House Majority Leader Barbara Flynn Currie (D-Chicago) said a cigarette tax increase would find a receptive audience in the House because some lawmakers already are talking about raising cigarette or liquor taxes as a source for more money.

That liquor tax idea has been floating around for several days. When the Legislture is looking for more money in an overtime session, nobody is safe from higher taxation.

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Are consumers getting hosed, or are they just greedy or ignorant of the facts?

Wednesday, Jul 25, 2007 - Posted by Rich Miller

* The reaction to the electric rate deal is pretty interesting. The deal provides substantial relief this year to people, but only as a percentage of their bills. Some see the lowball dollar figures bandied about by Republicans and others and believe they’re getting the shaft…

“I think there’s some concerns about it,” House GOP Leader Tom Cross of Oswego said Tuesday. “In some areas, we’re talking about (relief worth) $7 a month. I think people are expecting these great big relief packages, and I don’t think they’re going to happen.”

“It sounds like a lot of money,” he added. “But when you break it down, it’s not that much money.”

* All the hype in the media about the rate hikes helped fuel expectations of big dollar rebates. But, in reality, ComEd’s increases weren’t all that spectacular…

But typical ComEd customers saw their power bills increase roughly $15 a month, company officials said. The latest deal would provide $7 monthly credits and customers would get a lump-sum credit of nearly $50 on their September bills to cover January through July.

* It all depends how you look at it. A 50 percent or more reduction in the increase sounds like a lot of cash, and it’s complicated for the mathematically challenged who think this means a 50 percent reduction in their actual rates. This goes to show that people don’t really know how much they’re paying every month…

The result, Ameren Illinois President Scott Cisel said Tuesday, will be electric bills this year that for most customers are higher than last year’s by 10 percent to 30 percent — but are below the 40 percent or 50 percent hike or more that was common in recent months.

* The push for a rate freeze, particularly Downstate, probably raised expectations way too high. And since coverage always follows conflict, the greatest nay-sayers are the ones who will get the most press…

State Rep. Bill Black (R-Danville) mocked the relief package, which was crafted by Democrats.

“This isn’t any rate reduction. This isn’t any solid money in their pocket,” Black said.

* And here’s something else that the press isn’t covering. Since the new bill does away with the disastrous and stupid reverse power auction crafted by the goofs at the ICC, consumers will be spared from yet another huge rate hike next year, when the second reverse auction was scheduled to take place.

* All that being said, there are still legit concerns about this proposal, the biggest being that eventually the rates start going back up again and the relief lasts just four years. After that, everybody will be paying what they were paying up until now, unless this Illinois Power Authority can negotiate better rates. I think it might be able to do that, considering how skewed the reverse auction turned out to be. For proof of how bad the auction was, consider that the utilities and Exelon are giving back a billion dollars to the consumers. They had to be pretty flush with cash to afford something like that. Everybody on that Commerce Commisson who voted for the auction should resign in disgrace.

* More details…

— The average Ameren customer, who has seen an annual increase of $250 total on electric bills in 2007, will get refunds this year totaling $130.

— A typical Ameren electric-heat customer, who has seen an annual increase of $750 on electric bills in 2007, will get refunds this year totaling $400.

— About three-fourths of the dollar amount of those refunds will come in lump sums by September, to retroactively offset the increases on 2007 monthly bills so far. Ameren will cut checks to customers who are caught up on their bills, and will credit the accounts of those who are 60 days or more late on their bills.

— Remaining rebates for this year — as well as in 2008 and 2009 — will be applied as credits on monthly bills. The future credits will be smaller, with a net result of bills rising by less than 10 percent each year, as the full rate hikes are phased back in.

— The agreement also will set up a new state power agency to oversee the process of how wholesale electricity is bought and priced, a central issue of the controversy this year.

* And finally, much is being made of Exelon’s role in funding the reductions in the rate increases…

Chicago-based utility giant Exelon will pay the overwhelming share of a more than $1 billion rebate plan designed to ensure every household’s power bill goes down this year.

Exelon is the parent company of ComEd but also generates electricity that’s used elsewhere. Under the terms of the deal, Exelon will pony up $747 million and ComEd will contribute $53 million. Downstate energy companies cover the rest.

* But Exelon ain’t exactly hurting…

Exelon Corporation’s second quarter 2007 consolidated earnings prepared in accordance with GAAP were $702 million, or $1.03 per diluted share, compared with earnings of $644 million, or $0.95 per diluted share, in the second quarter of 2006.

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Protected: SUBSCRIBERS ONLY - Today’s issue of Capitol Fax (Use all caps in password)

Wednesday, Jul 25, 2007 - Posted by Rich Miller

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Morning Shorts

Wednesday, Jul 25, 2007 - Posted by Paul Richardson

* Russ Stewart’s 7-25-07 newspaper column

* Opinion: More government control not the health-care answer

There’s absolutely no mystery why our greatest complaints are in the arena of government-delivered services and the fewest in market-delivered services. In the market, there are the ruthless forces of profit, loss and bankruptcy that make producers accountable to us. In the arena of government-delivered services, there’s no such accountability. For example, government schools can go for decades delivering low-quality services, and what’s the result? The people who manage it earn higher pay. It’s nearly impossible to fire the incompetents. And taxpayers, who support the service, are given higher tax bills.

* State working on rules for smoking ban

* Expect up to 15,000 at AFL-CIO Democratic presidential forum

* Editorial: A better way for Illinois teens

Diverting troubled teens away from correctional facilities and into programs that address their underlying problems is a compassionate idea — and also a smart one. The average annual cost to house a juvenile offender in an Illinois correctional facility in fiscal year 2005 was $70,827. Even worse, almost half of the teens discharged from a juvenile prison in 2002 returned within three years.

* Improving access adds profits

* More pollution in Lake Michigan irks Blagojevich

* Illinois politicians pressure Indiana governor to yank BP permit

* How safe is Illinois Beach state park?

* Editorial: Law would toughen rules, penalties for sex offenders

* Animal Farm: Henry Hyde heart surgery

* McLean Co. Pundit: Hastert not running

* Next Cook Co. budget fight begins with hope for early finish

* Stroger closer to empowering board inspector

* Watchdog for Cook County corruption OK’d

* Aldermen move to strip Burge of his city pension; more here and here

* U of I to vote on online funds

Chet Gardner, who is leading the online initiative, said Tuesday that he expects U. of I. will need to invest about $13 million into the project before it becomes profitable in 2010.

The virtual campus has had a rocky start, with board action delayed for months and faculty opposition to the initial concept of it operating as a for-profit business. It will instead operate as any other academic unit.

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