26 Comments - shore - Thursday, Dec 3, 09 @ 6:38 pm: Hynes just went to war on students, parents, and the knowledge economy. next. - OneMan - Thursday, Dec 3, 09 @ 7:09 pm: Anyone build Iron Ships in Illinois any more? - Plutocrat03 - Thursday, Dec 3, 09 @ 7:52 pm: Soooo we learn who is expected to fleece the citizens of Illinois more efficiently. - Jim - Thursday, Dec 3, 09 @ 8:13 pm: Maybe we will have a race after all, any polls due out soon? - Rubbernecker - Thursday, Dec 3, 09 @ 8:23 pm: Ha-Yooge endo for Hynes. - sure - Friday, Dec 4, 09 @ 6:14 am: Hey shore. Wrong primary. Next - Quinn T. Sential - Friday, Dec 4, 09 @ 6:28 am: Hynes criticizes Quinn for dithering with the Caoital Plan, and missing the construction season in order to play politics; and what does Quinn do in response, play politics of course. Lo and behold; according to Bloomberg, we now suddenly have word that Illinois Officials plan to issue about $530 million of tax-exempt debt this month to fund capital projects under the state’s Build Illinois program, according to John Sinsheimer, state director of capital markets. Nice to see that the new regime is more of the same. Meet the new boss; same as the old boss…., as the debt will be sold in part through negotiation with underwriters led by Cabrera Capital Markets LLC and partly through competitive bidding. How Fitch ascribed a AA rating to the issue is beyond me, and leads me to believe that someone sold them a bill of goods based on voodoo economics, but is there any reason why the entire bond issue is not being handled through competitive bidding? Who has their hand in the cookie jar this time? Also; the IFT votes to endorse Hynes, and we also learn from Bloomberg that the state also is preparing to sell as much as $488 million of Qualified School Construction Bonds in January. Even though Celini is otherwise pre-occupied, $500 million to $750 million of Build America Bonds for road and bridge construction and repairs is also going to go out the door. Taking another page from the Blago budget balancing house of cards road map; About $3.5 billion of bonds to accommodate state pension funding for the current fiscal year is also anticipated during the week of Jan. 12, according to Sinsheimer. Bloomberg notes that while Illinois doesn’t have authority to borrow to fund deficits, it might consider it, though such a sale, like all state borrowings, would require approval of a super-majority of state lawmakers. What legislator in their right mind (perhaps an oxymoron) from either party, would vote to issue more debt to support public employee pensions in this environment? Look back just one year to the CTA bailout bill; where $1.5 billion in bonding authority was approved to shore up the pension plan, but only predicated on substantial concessions from the unions on both future AND CURRENT retiree benefits. Any legislator that would approve another pension obligation bond without similar concessions could not only be vulnerable to removal from office at the ballot box, but should be considered criminally liable for a breach of fiduciary duty to the tax-payers. Bloomberg reminds us that according to a Moody’s Investors Service report Illinois is ranked seventh in per-capita net tax-supported debt in and was among nine states cited by the Pew Center for the States as dealing with problems similar to those that left California on the brink of insolvency. Apparently the good people at Fitch were precluded from knowing this. Perhaps the information was embargoed behind the password protected Subscribers Only section. If GASB accounting rules operated the same way as FASB for the private sector, Illinois annual audit reports would require a “Going Concern” Disclosure Statement. The issues contemplated by auditors in determining whether such a disclosure is required include: •financial indications, such as a deteriorating accounts payable ratio, a deteriorating current ratio, fixed term borrowings approaching maturity without any prospect of replacement financing being available. •operating indications, including loss of key management without replacement, loss of a major market segment, correspondence from suppliers requesting more stringent credit terms such as COD. •litigation, and in particular, whether there are any pending legal proceedings that could result in a judgement that may be incapable of being met. I can see it now: “These consolidated financial statements of the State of Illinois have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. The State has incurred a net loss of (Fill in the blank with the estimate of the day here) for the twelve months ended June 30, 2009, and has incurred net losses of (Fill in the historical loss balances here for the years ended June 30, 2008, 2007 and 2006, respectively, and at December 30, 2009 has an accumulated deficit (Fill in the most recent guesstimate here) and a working capital deficiency of (Fill in the really scary current number here). At September 30, 2009, Illinois (fill in an equally scary current number here) of debt due to mature in the 12-month period ending June 30, 2010, including X BILLION the State’s public employee pension fund debt is scheduled to mature on June 30, 2010. Accordingly, the State’s ability to continue as a going concern is in substantial doubt and is dependent on the State generating cash flows that are adequate to sustain the operations of the government, renewing or extending current financing arrangements and meeting its obligations with respect to secured and unsecured creditors, none of which is assured. This should be required; with signatory acknowledgement, on all real estate closing documents for anyone moving into Illinois from out of state. - Ghost - Friday, Dec 4, 09 @ 8:16 am: ahh but WWAD (What Will AFSCME Do). What would be interesting is if Hynes lost even with all this union support. It would suggest our various politicians may not be so dependent on support from big labor; and perhaps the legislature would be willing to reduce the unionization of the State down fom roughly 95% so that the union employee have managers to make sure they are actually working. i.e. unization is good, but it works best when there is a proper balance between manangement and the union. Blago and Quinn have allowed that balance to be destroyed; and the general assembly looks to be too afraid of the power of the unions to fix the labor statutes and the labor board to restore balance. - wordslinger - Friday, Dec 4, 09 @ 8:24 am: Pretty interesting to the IFT go against a Dem incumbent. - Sue - Friday, Dec 4, 09 @ 8:25 am: The IFT and IEA are the same groups who brought us Rod Blagojevich since neither were willing to support Paul Vallas because he was a former school supintendant and was viewed as “management”. Hynes represents the status quo which is why the IFT is supporting him. Anyone who dares to try and tame state pensions or other union benefits is persona non grata when it comes to state employee organizations. The IFT should step up to the plate and volunteer to be part of the solution but perhaps we can also wait for santa to arrive - WOW - Friday, Dec 4, 09 @ 8:26 am: Hynes had 90% of the union support for US Senate and still lost the Primary to Obama (endorsed by SEIU as is Quinn). - Anon - Friday, Dec 4, 09 @ 8:37 am: “WOW”: Hynes was also running against Barack Obama. I don’t think it’s safe to compare these two primaries at all. - Cindy Lou - Friday, Dec 4, 09 @ 8:42 am: Pretty simple world there for ya, Ghost? I could tell you a number of stories about management over the years (been around a long time) way pre-union days for the majority of them. When one is out of office settings and actually out into the working field, there’s not much seen and tried (got a box full of old grievance papers of management fun and games way pre Blago days) But of course you are entitled to your opinion. - WOW - Friday, Dec 4, 09 @ 8:50 am: Anon: Obama didn’t walk on water until 2006 … he was still only a mortal in the primary in 2004. Dan Hynes was the same boring guys but then he was an Chicago Insider with a majority of labor backing. - Loop Lady - Friday, Dec 4, 09 @ 9:00 am: I am waiting for a rabid post from WCW…this doesn’t bode anything for the Hynes campaign…SEIU had already endorsed the incumbent and has way more muscle… - siu alum - Friday, Dec 4, 09 @ 9:13 am: WOW: If i remember correctly IFT endorsed Obama in the 2004 primary and in a certain Newsweek article Obama claimed that the IFT endorsement gave him the edge he needed to change the dynamics of the race. - Anon - Friday, Dec 4, 09 @ 9:13 am: its time for Quinn to force Hynes to address union issues publicly. Maybe he needs to brush off the union reform initiative and let Hynes get out there and defend it. When people realize how much of the budget is locked up with these sweet pensions, and how many programs that are important to real people will be cut due to budget shortfalls, this endorsement may be more of a noose around Hynes’ neck. Quinn has to, in a very tactical way, turn this Hynes plus, into a Hynes negative. It can be done. - Anon - Friday, Dec 4, 09 @ 9:14 am: sorry, i meant make Hynes attack the union reform initiative. does that make more sense? - Rich Miller - Friday, Dec 4, 09 @ 9:17 am: Anon, two things… 1) The IEA hasn’t endorsed yet, so Quinn needs to stay mum on that stuff. 2) This is a Democratic primary we’re talking about. Going anti-union ain’t the way to win. - regnad kcin - Friday, Dec 4, 09 @ 10:29 am: Cindy Lou, I’m sure you have some good stories about management. Do you think there might also be some good stories about the union? - Ghost - Friday, Dec 4, 09 @ 12:54 pm: Cindy Lou I have no idea what you are trying to say. Are you tryign to argue that because there have been bad managers there should be no management and all review of employee performance and workloads should be controlled by the union? I would say your view is less then simple, more ignorant. But the union does like to tout how time in a seat, or seniority, is better then actual skill or ability, and you seem to feel that the passage of time hs provided you with great insight. After all, we know workers give thier best performance when they have no accountability. - Cindy Lou - Friday, Dec 4, 09 @ 1:40 pm: That’s not at all what I said, Ghost. Management is management though whether it is union or non-union. You implied a balance of union vs non-union was needed to make the little peons do their work. The boss is union, but not the same union. He’s been the boss for many of moons just recently unionized. Union did nothing to change the fact that he is the superior, he is accountable for his underlings and he makes the others (which are of a different union) accountable. Workers are called unto the mat, disciplined when necessary and have a lengthy job description they are expected to do and do timely and correctly, all of which is his puppy to see that it happens. What was ignorant to me was the suggestion that things must be balanced to get a performing frontline by having a non-union upper. And yes, have been around along time. In being so I have seen both sides of management (union/nonunion), watched them be best buddy with the higher highers trying to work around descriptions and contracts, watched them get kicked in the rear by the ex-guv and understand fully why they sought out union protection. Point being a properly quaulified supervisor/superior does not have to be non-union nor does a non-union management mean much in actually accomplishing the duties. My statement was not that I or others with senority may or may not have superior skills–fact is I know several long term worthless workers and why management did sit on them I’ll never know. Most anyone can learn the jobs, some better than others. What is missing at times though is a lack of working knowledge. I assume you have never been sent a boss/superior and told to train him/her what your job/site is so he/she can supervise and order you what to do? Experience in the actual performace of needs and skills of your workers at times is something I believe at times can come from working yourself up which is why I like to see promotions coming from within the ranks. We don’t have to agree with that, and likely won’t but it makes little sense to place someone in a title that they are ill prepared for. Union vs non-union does not balance a good performace. My 2 cents. - One of Three Puppets - Friday, Dec 4, 09 @ 2:21 pm: Does anyone know where the IEA may go? Do they ever play in primaries? - One of Three Puppets - Friday, Dec 4, 09 @ 2:22 pm: They do play in State House primaries but statewide is what I meant. - Park Shasta - Friday, Dec 4, 09 @ 3:22 pm: Has Hynes picked up any endorsements from state or federal elected officials? - regnad kcin - Friday, Dec 4, 09 @ 4:42 pm: “Experience in the actual performace of needs and skills of your workers at times is something I believe at times can come from working yourself up which is why I like to see promotions coming from within the ranks.” Cindy Lou, In an ideal world, someone works themself up through the ranks and is able to take on the role of a manager however I have seen many people who have great technical knowledge and/or skills but don’t have a clue on how to manage people. Sorry, comments for this post are now closed.