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This just in… Madigan moves pension reform bill… House takes up bill… Pension bill zooms out of House… Pension bill breezes through Senate

Wednesday, Mar 24, 2010 - Posted by Rich Miller

* 12:12 pm - As I already told subscribers this morning, Speaker Michael Madigan has moved a pension reform plan that is hotly opposed by the unions. The bill passed the House Personnel and Pensions Committee by an 8-2 vote. The two “No” votes were both Springfield-area Republicans, Raymond Poe and Rich Brauer.

Madigan is expected to run a floor vote today and the Senate is expected to take up the bill as early as tomorrow.

The legislation creates a two-tiered pension system. It raises the retirement age, gets rid of double-dipping by a retiree if that person gets another public job, limits pensionable salaries to $106,800, etc

Proposed by House Speaker Michael Madigan, D-Chicago, the changes raise the retirement age to 67 in order to qualify for full benefits, restrict annual cost of living increases for retirees, limit the salary that can be used to determine retirement benefits and restrict those who qualify to earn enhanced benefits under the “alternative formula” set aside for high risk jobs.

If eventually enacted into law, the changes would go into effect Jan. 1 and affect future members of the State Employees Retirement System, State Universities Retirement System and Teachers Retirement System. Senate Bill 1946 also incorporates changes to lawmaker and judges retirement systems that were approved by the House last week. […]

A precise savings from the changes has not been determined, but a top Madigan aide said it should save “well over $100 billion” over several decades.

David Vaught, budget director for Gov. Pat Quinn, said lawmakers need to act quickly before an upcoming bond sale to pay for public works projects. Vaught said bond rating agencies will be looking at whether Illinois is taking steps to address its budget problems and could downgrade Illinois’ bond rating if nothing is done.

Speaker Madigan talked to reporters afterward. Among other things, he wasn’t optimistic that Republicans would support the pension bill. Watch the avail


Madigan’s opening testimony


We’ll have budget director David Vaught’s comments in a bit as well as committee testimony by at least one opponent.

* 12:17 pm - From an IFT spokesperson…

Our estimate is this bill would reduce the state’s cost for a new teacher to 1 percent of payroll. Basically, new teachers will pay the entire cost, while the state pays over 8 percent for a new legislator.

* 12:25 pm - Budget director David Vaught testifies


* 12:58 pm - Rep. Raymond Poe (R-Springfield) asked Speaker Madigan a whole lot of questions. Here’s part one


*** 1:54 pm *** The House Republicans asked for a one-hour conference as soon as Madigan’s bill was brought up on the floor. They need to figure out what they’re gonna do. Back at 3ish.

*** 2:34 pm *** The IFT has issued a fact sheet on the bill. Click here.

And here’s IFT’s pension testimony.

*** 3:48 pm *** The House is now bebating the bill on Third Reading.

*** 5:05 pm *** The House approved the pension bill 92-17-7. Speaking to reporters minutes after the vote, Speaker Madigan said he expects the Senate to call the bill either tonight or tomorrow morning.


*** 8:20 pm *** Senators sent the pension reform bill that began movement in a House committee this morning to Gov. Pat Quinn by a 48-6-3 vote. From the committee hearing where Speaker Madigan read the amendments to SB1946 to the final Senate vote, it took the Legislature roughly 10 and a half hours to approve the bill.

  190 Comments      


Question of the day

Wednesday, Mar 24, 2010 - Posted by Rich Miller

* Gov. Pat Quinn and lite guv frontrunner Sen. Susan Garrett at a press conference a while back…

* The Question: Caption?

Keep it clean, please. We’re very busy today. Thanks

  47 Comments      


New lawsuit on school funding inequities

Wednesday, Mar 24, 2010 - Posted by Rich Miller

* As I told subscribers today, a new lawsuit is about to be filed against the way the state funds schools. The Sun-Times editorialized in favor of it today

The new lawsuit charges that the [school funding] system violates the equal protection clause of the Illinois Constitution because it forces homeowners in poor communities to pay higher property tax rates than owners of homes of similar value in more affluent areas.

It’s an interesting tactic, based on the state Constitution’s equal protection clause…

No person shall be deprived of life, liberty or property without due process of law nor be denied the equal protection of the laws.

Background

By law, the state each year establishes a “foundation level” of funding. Depending on property values, communities rely on different tax rates, along with state aid, to get there.

A $200,000 home in the south suburban Homewood-Flossmoor school district, for example, was taxed at a rate of 4.1 percent in 2006 while a home of the same value in the north suburban New Trier district was taxed at a rate of 1.7 percent. And, at the end of the day, New Trier spent about $3,400 more per student.

This lawsuit differs from all other suits filed anywhere in the country by using the equal protection language. The Urban League filed suit in 2008 based on violations of state anti-discrimination laws…

The [new] suit, filed on behalf of taxpayers by the nonprofit Business and Professional People for the Public Interest and the law firm of Sidley Austin, applies a novel legal approach. Nationally, most other suits resemble the Urban League’s. The remaining claim in that suit alleges that Illinois’ funding system discriminates against black and Hispanic students.

Thoughts?

* And now, your legislative roundup…

* Developer considers next step for hobbled STAR bond plan: Rebecca Rausch, a spokeswoman for University Town Center Development, said its representatives would meet today in Springfield with aides to Gov. Pat Quinn and officials from the Illinois Department of Revenue.

* Bill would let school districts join forces to produce, sell energy

* Anti-motorcycle helmet law logic lacking

* Senator Don Harmon Wins Approval of Bill to Limit Cable TV Contracts to 2 Years: the bill would limit cable and video service contracts to a two-year contract instead of [the current] one-year.

* Bill preventing employers from checking job seekers’ credit scores passes Ill. House committee

* Phony cigarettes are a real threat, say Illinois health advocates

* Rep John Bradley Wins Approval of Plan to Draw Child Psychiatrists to Southern Illinois

* House passes Rose’s bill on victims, family testifying at sentencing

* State Senate OKs study of 150-mph trains

* House rejects judicial experience standard

  25 Comments      


Republicans want AG Madigan to fight new healthcare law

Wednesday, Mar 24, 2010 - Posted by Rich Miller

* Perhaps the most futile gesture ever

Republican members of Illinois’ congressional delegation want Attorney General Lisa Madigan to sue to block the new health care overhaul.

Six lawmakers signed a letter Tuesday urging Madigan to join more than a dozen other state attorneys general who are claiming in court the law is unconstitutional.

Madigan’s office says it isn’t filing a lawsuit. Gov. Pat Quinn, a fellow Democrat, says Illinois won’t do anything to try to block health care reform.

The letter to Madigan was signed by U.S. Reps. Don Manzullo, Aaron Schock, Peter Roskam, Judy Biggert, John Shimkus and Tim Johnson.

This was about the “base,” not about any hopes that AG Madigan would act on this request.

Also, notice that Mark Kirk isn’t on that list of letter writers. [ADDING: Kirk’s absence is a bit puzzling since he promised just the other day to “lead the effort” to repeal the new law.]

* But top Democrats in the GA are nervous about this law. A week ago, the House took up a resolution on the national healthcare issue

[Resolved] we urge President Obama and the United States Congress to take immediate action to adopt meaningful heath care system reform in keeping with the Obama administration’s articulated goals

The resolution passed with just 62 votes, even though the Democrats have 70 seats.

Democrats voting “No” were Reps. Crespo, DeLuca, Farnham, Franks, McAsey, Sente and Walker. Rep. Jehan Gordon voted “Present.”

Except for Franks and probably Gordon, that’s most of the people on the Republican target list. The Repubs said they’d be whacking the Dems who voted “Yes” and claimed it was an indication that President Obama’s bill is not polling well in key districts. Perhaps the biggest surprise on that “No” list is Rep. Carol Sente, who has a north suburban district formally represented by Kathy Ryg, who quit the seat last year to take a job running Voices for Illinois Children, a statewide group that lobbies for greater health care spending, among other things.

* A new report by NCSL about states introducing measures to repeal or limit healthcare laws is probably destined to get some media coverage. From the report

As part of state-based responses to federal health reform legislation, individual members of at least 36 state legislatures are using the legislative process to seek to limit, alter or oppose selected state or federal actions, including single-payer provisions and mandates that would require purchase of insurance. In general the measures seek to make or keep health insurance optional, and allow people to purchase
any type of coverage they may choose. The individual state language varies.

Make sure to keep a few things in mind if this does break through. First and foremost, an introduced bill or resolution often means nothing. The Senate Republicans here could introduce a bill banning compliance with the national law and it would never get out of Rules Committee, for instance.

And then there’s this…

None of the other proposals [besides Virginia and Idaho] listed have been finally approved; Arizona’s resolution of June 2009 was the first measure to have passed the legislative process; A Utah bill passed both chambers and awaits action by the governor. A Tennessee and a Georgia bill has passed one chamber; Constitutional resolutions have advanced through initial steps in Florida, Georgia and Missouri (3/16/10). One amendment failed to pass in Georgia on 3/18/10.

“Did not pass” measures: So far in 2010, bills have been rejected or failed to pass in: Indiana, Mississippi, New Hampshire, New Mexico, South Dakota and Wyoming. A Non-binding resolution in Indiana passed the Senate but did not pass the House.

Many of the measures appear to modeled on the conservative legislative group ALEC’s “Freedom of Choice Act,” which was unveiled in 2008. Most of these state proposals appear to have been introduced last year, and they haven’t moved since.

Also, keep this in mind…

In 29 of the states, the proposals include a proposed constitutional amendment by ballot question. In a majority of these states, their constitution includes an additional “hurdle” for passage - requiring either a “supermajority of 60% or 67% for passage, or requiring two affirmative votes in two seprate years, such as 2010 and 2011.

* Related…

* State Insurance Director Michael McRaith discusses the impact of health care reform on Illinois: Right now, ICHIP is prohibitively expensive, with premiums of $12,000 to $16,000 annually. It’s funded two-thirds by premiums and one-third by general revenue funds. The federal law shifts that burden so enrollees pay no more than 35 percent of the cost of the program. That’s about a 30 percent reduction in costs. Our expectation is that we’ll get clear guidance from Washington (about who can get insurance through the pools) within 90 days. We expect an implementation time of 15 to 45 days following that. Since individuals in Illinois can be denied health insurance for any reason other than race, religion, color or national origin, we expect a large number of people will sign up.

  60 Comments      


*** UPDATED x1 - Boland out, endorses Turner *** The hard truth about the budget, and Garrett is called out on taxes

Wednesday, Mar 24, 2010 - Posted by Rich Miller

* This is what budget cuts look like

The Chicago Police Department may be forced to assume primary responsibility for patrolling 53 miles of Chicago area expressways — at a time when police manpower is woefully short — under Gov. Quinn’s proposal to slash the State Police budget and lay off 464 state troopers.

State Police have had exclusive control over Chicago area expressways since 1985. In 2001, Chicago Police joined forces with the State Police to help enforce traffic laws on the Eisenhower, Dan Ryan, Stevenson, Kennedy, Edens spur and Bishop Ford to curb rampant speeding.

Now, Quinn’s sweeping budget cuts are threatening to shift the entire burden to Chicago as early as July 1 — and it couldn’t come at a more difficult time. The Chicago Police Department is 700 officers short of its authorized strength and more than 2,100 officers short each day, counting those on medical rolls and limited duty.

And this

With expected retirements, the layoffs will reduce the number of sworn state troopers by about 600, or 30 percent, Monken said. The force currently has a little over 2,000 troopers.

The five offices are those in Litchfield, Carmi, Pecatonica, Macomb and Des Plaines. State Police have 22 offices now.

“There will be significant consequences to public safety,” Monken warned.

“We expect an increase in traffic fatalities, increased exposure to terrorist threats in Illinois, an increase in gun and drug trafficking, in addition to the loss of an estimated $12 million in citation revenue for counties across the state,” he said.

And this

Specialty units would be hit hard by the cuts. The Statewide Terrorism Intelligence Center would lose more than half of its officers, and Monken said the State Police’s methamphetamine response team would be “all but eliminated.”

“Investigations will get hit pretty hard when we send people to the Illinois Gaming Board. Those are investigators that go over,” he said.

And while the governor’s office claims this is unrelated to the budget, it most likely is. Gov. Quinn wouldn’t even think about dinging veterans if budget times were good

The cost to stay in one of the state’s four nursing homes for veterans could jump by as much as 45 percent under a plan being pushed by the Quinn administration.

Quinn, who made veterans a priority during his tenure as lieutenant governor, has asked lawmakers to approve a $400 per month increase in the maintenance fee for veterans’ home residents.

Now, you could say that the proposed $32 million cut to the State Police budget and the increased rate for veterans are just more scare tactics by the governor. Cut schools, cut the coppers, cut the vets. Create panic.

Then again, the state is deeply in the red. The governor’s proposed $2+ billion in cuts would have to be tripled to erase the current structural deficit. And then there’s that projected $6+ billion in past due bills that the state can’t afford to pay and will roll over into Fiscal Year 2012.

You can’t just cut “fat” and make the numbers work by magic. You have to cut muscle and bone.

* Meanwhile, the AP crafts a lede for maximum impact

A top contender for Gov. Pat Quinn’s running mate job said Tuesday that Quinn has failed to make the case that raising taxes is the only way to solve Illinois’ budget crisis, potentially undercutting the governor on his signature issue.

Sen. Susan Garrett said if the state cuts unnecessary spending and reduces pension costs she would be willing to consider Quinn’s proposal for higher taxes.

“But we’re not ready to do that yet. The message hasn’t been articulated to the general public,” the Lake Forest Democrat told reporters.

I don’t think she was nearly as harsh on Quinn as the lede implies (watch the video if you missed it yesterday). She never specifically blamed Quinn for not articulating the message, using “we” over and over again. But this sort of story was easily predictable.

The Illinois GOP e-mailed the article to its press list earlier this morning. They’re clearly happy with the result. Expect more like this.

Also along that vein, Sen. Garrett admitted publicly yesterday that she had been contacted by Gov. Quinn’s chief of staff about running for the LG office. Others, however, haven’t even been able to get their calls returned

Unlike Garrett, [state Rep. Mike Boland (D-East Moline)] said he has not been contacted by Quinn or his top aides, but he has tried.

“All of us have probably sent communications to the governor, but none of us have ever gotten called back,” he said.

Rep. Boland has touted himself as Quinn’s top legislative ally for years. If people like him can’t get a return call while top Quinnsters court Garrett and supply her with a “driver” on interview day, then you get a good idea of where this is going.

I had a long talk with Garrett yesterday, and I’ll have more on this for subscribers tomorrow.

*** UPDATE *** From a press release…

State Representative Mike Boland (D-East Moline) yesterday announced he would step aside in his quest to be the Lt. Governor and throw his support to Art Turner to be named the Democratic nominee.

…Boland’s wife, Mary Boland, is a member of the Democratic State Central Committee.

“It is my strong belief that the nominee to replace Scott Lee Cohen should be someone who ran for the office of Lt. Governor in the February Primary,” Boland stated. “To not choose someone who has already campaigned extensively throughout this huge state and garnered over 180,000 votes would be to tell all of the hundreds of thousands of voters who took the time and made the effort to vote in the primary election that their votes meant nothing,” Boland emphasized. “Art Turner came in second in the primary voting and that has to mean something,”said Boland.

Yeah. It means he came in second.

* Related…

* Locals on the list for lieutenant governor

* Garrett downplays Lt. Gov. front-runner talk

* State Capitol Q&A: A look at the lieutenant governor position

* Democrats’ lieutenant governor favorites emerging

  38 Comments      


Morning videos - Quinn & Brady at the IEA

Wednesday, Mar 24, 2010 - Posted by Rich Miller

* Our pal Simon Edelman from the Quinn campaign has just produced the first video for the fall effort. Rate it


The IEA has posted its full video of its debate last week between Gov. Quinn and Sen. Brady. Have a look

  16 Comments      


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Wednesday, Mar 24, 2010 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Wednesday, Mar 24, 2010 - Posted by Rich Miller

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* Reader comments closed for the weekend
* Isabel’s afternoon briefing
* Things that make you go 'Hmm'
* Did Dan Proft’s independent expenditure PAC illegally coordinate with Bailey's campaign? The case will go before the Illinois Elections Board next week
* PJM's massive fail
* $117.7B In Economic Activity: Illinois Hospitals Are Essential To Communities And Families
* It’s just a bill
* Showcasing The Retailers Who Make Illinois Work
* Open thread
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