* 5:18 pm - In case you’ve been wondering, there will be an end of session party tonight even if they don’t finish the session. “I am not dealing with this again,” declared one person involved with the party’s planning.
If you missed it yesterday, the party is in the building housing the Pizza Machine and other businesses. You absolutely must have a Statehouse-type ID (staff, lobbyist, press, etc.) to get in. See you there.
*** UPDATE 1 - 6:40 pm *** Speaker Madigan has adjourned the House to the call of the chair. He said he understood that they still had much work to do, and he hoped he could have it accomplished in one or two days, but he didn’t say when that one or two days might actually occur.
The Senate is doing the same thing.
*** UPDATE 2 - 7:15 pm *** Leader Lang spoke to reporters shortly after the House adjourned. Here’s what he said…
*** UPDATE 3 - 7:40 pm *** President Cullerton answered questions after the Senate adjourned to the call of the chair. He says…
“Our business is not finished,” House Speaker Michael Madigan told lawmakers before adjournment. “When we are prepared to finish our business we will come back to Springfield for one or two days.”
The Chicago Democrat gave no indication of when that might happen. With lawmakers opposed to raising taxes, slashing spending or borrowing money to fill the massive budget hole, finding a solution may take time.
While Madigan and Senate President John Cullerton had aimed for a May 7 conclusion to the spring legislative session, that date has no special significance.
Lawmakers could return at the end of the month, as May 31 is the deadline for bills to be approved with only a simple majority. After that, some Republican votes would be in play on any budget agreement.
Senators had approved three main pieces of a patchwork budget earlier in the day, but those were not called for votes in the House.
* 3:34 pm - The notorious STAR bonds bill is now being debated in the Illinois House.
The Dept. of Revenue just filed the fiscal impact note, which allowed the bill to be moved today…
The Department of Revenue was not provided with a plan or detailed description of the proposed development, its precise location, or any financial details. This information is critical to provide a comprehensive analysis of the proposed STAR Bonds development. Thus, the estimate below is limited in scope. SB 2093 (H-AM 4) would cost the State $12,500,000 per year over a 23 to 35 year period totaling between $287.5 million and $437.5 million in future sales tax revenue as estimated by the Department of Revenue. These funds would be diverted to the STAR Bond district. Based on the information provided by the developer, the Department is unable to forecast the impact on existing sales tax revenue.
Why would the Dept. of Revenue file a note if they had no information? Shouldn’t they have waited?
Sponsoring Rep. John Bradley literally pleaded with GOP Rep. David Reis to help his district like he has helped Reis’ district…
“I’ve always been with you when you’ve needed something… I’m begging you, just give us this chance.”
* 4:56 pm - The bill passed 79-35-1. Lots of details in comments about the debate.
* 5:56 pm - Rep. Mike Bost, whose district borders Bradley’s to the west, encouraged a ‘yes’ vote today. Here’s what he said…
Rep. Burke dramatically asked why he should support another representative’s district while his suffered. Watch…
* 1:36 pm - The governor has been meeting privately with House Democrats for the past few hours. I’ve gotten some text messages from inside saying it’s been either mostly worthless or informative, depending on the person, but hasn’t yet changed many minds. Rep. John Fritchey posted this on his Facebook page about an hour ago…
Apparently, caucus is a Latin word meaning ‘drawn-out meeting that sheds little new light on anything’.
One hour into what seems like a 3 hour seminar in state finances. Very thorough questions being asked.
One of my interns says Speaker Madigan will be escorted back to his office by the guards to keep everybody away. [UPDATE from Steve Brown in comments: Intern blew it Madigan walked out of meeting and to the 3rd floor session will start shortly.] They’ve already set up a rope to keep people (including reporters) back.
* Over in the Senate, some Democrats are sniping at each other, according to a Tweet from Melissa Hahn…
A couple of Senate Democrats are getting testy with each other, refusing to vote for each other’s bills because of “no” votes last night.
FYI, Sens. Garrett, Kotowski, Noland and Steans were the most frequent “No” votes last night on the budget plan.
* Several human service advocates, unions, etc. are asking their members and friends to call a toll-free hotline to urge their legislators to “keep state services alive.” Not sure yet if it’s creating lots of calls, but it didn’t have an impact on the Senate yesterday.
*** UPDATE 3 - 2:47 pm *** Rep. Ron Stephens predicted a “revolution” if the borrowing continues and blamed the House Speaker for everything that has happened over the last 40 years…
Mike Madigan and his failed policies are what have taken this state to the brink of disaster. Molotov cocktails in the streets of Chicago is what will happen next. Greece will fail! Illinois will fail!
…Adding… This comparison to Greece is ridiculous, by the way, and Stephens and others who have used it ought to be called out. Greece’s 2008 GDP was $343 billion. Its external debt was $552.8 billion as of last June. Illinois’ GSP (Gross State Product) is $633.7 billion. Its total debt is about $140 billion.
*** UPDATE 4 - 3:10 pm *** Gov. Quinn talked to the media after the House Democratic caucus. Part 1…
*** UPDATE 5 - 3:26 pm *** As expected, the pension bond plan went down in flames, 59-57-1. Also, Rep. Franks told the Daily Herald that the rest of the package may go down…
Emerging from a closed-door meeting with Gov. Pat Quinn this afternoon, suburban Democrats predicted their session would not end tonight, signaling their unhappiness with how negotiations have been handled and the lack of spending details.
“It could be a long month,” said state Rep. Jack Franks, a Marengo Democrat.
Franks said the Illinois House will again vote on borrowing to make a pension payment, consider a budget plan that cuts $3.8 billion in spending and debate a proposal giving the governor broad power to tap special state accounts for cash and other sweeping authority to manage state finances.
Based on rank-and-file sentiment and head counts in the closed-door meetings, Franks said all three plans will likely be voted down, a move that would prolong budget talks and force lawmakers back to the drawing board. They had planned to adjourn today.
*** UPDATE 6 - 3:39 pm *** The amendment up now in the House includes budget cuts.
*** UPDATE 7 - 3:42 pm *** The amendment failed with just 15 votes. Oof. Afterwards, Madigan announced “There’s more time people… get your amendments [containing cuts] filed.” Madigan said during closing that he would “entertain” amendments containing budget cuts from all comers.
Rep. Black said the Republicans would begin drafting budget-cutting amendments post haste.
* The last Research 2000 poll conducted in February for Daily Kos didn’t even come close to matching up with anybody else. R2K had Mark Kirk and Bill Brady both trailing. They’re somewhat more in line now.
One reason may be that their sample of senior citizens is larger than before, which they’ve taken heat for in the recent past. They had their 60+ at 16 percent before, when the 2006 gubernatorial exit polling had that number at 29 percent. This time, their sample size is up to 20. That’s still not good enough, so adjust for the Republicans accordingly.
The number in parentheses is R2K’s February result. The numbers in brackets are other recent polls, which can be found here…
* And why they would put Scott Lee Cohen into a question and not Rich Whitney, who, unlike Cohen, is actually on the ballot, is totally beyond me. Anyway, they now have Quinn trailing Brady by a few points rather than leading Brady by eleven, which was completely blown away by other polling. Same thing goes for the parentheses and brackets. Results from those other polls are here…
Pat Quinn (D) 36 (46) [38, 33, 38, 37]
Bill Brady (R) 39 (35) [45, 43, 45, 47]
Pat Quinn (D) 35
Bill Brady (R) 39
Scott Lee Cohen (I) 3
The Research 2000 Illinois Poll was conducted from May 3 through May 5, 2010. A total of 600 likely voters who vote regularly in state elections were interviewed statewide by telephone. Those interviewed were selected by the random variation of the last four digits of telephone numbers. A cross-section of exchanges was utilized in order to ensure an accurate reflection of the state. Quotas were assigned to reflect the voter registration of distribution by county.
The margin for error, according to standards customarily used by statisticians, is no more than plus or minus 4% percentage points. This means that there is a 95 percent probability that the “true” figure would fall within that range if the entire population were sampled. The margin for error is higher for any subgroup, such as for gender or party affiliation.
* I’ve posted this before, but thought that the scheduled end of session would be a good time to drag it up again…
* The Question: In billions of dollars, what are the levels of budget cuts and/or tax hikes that you’d be willing to support? Keep in mind that we have a $13 billion hole to fill. Also keep in mind that a one percentage point increase in the income tax generates about $3 billion, give or take. Total personnel costs are a bit over $3 billion.
And don’t forget to explain.Forget the explaining. Just tell us how many billions in cuts and billions in tax hikes you would support. No need to say which tax or which program. Billions of dollars only this time, please. Thanks.
Lawmakers are moving to essentially restrict the power of regulators to keep those linked to the mobbed-up illegal video gambling market out of Illinois’ new legal video gambling industry.
This story is actually about tavern owners and fraternal society managers who get busted for paying out on the video gambling machines. Does some of the money gambled right now end up with the Outfit? Likely. But should all tavern owners, VFWs and Knights of Columbus halls who currently have video gaming machines be described like they were in that lede? Sheesh. Here’s the rest of the story…
At issue is a clause in the legislation that says the gaming board can deny a license for video gambling only if the applicant has been convicted on an illegal gambling charge.
The problem for regulators is that in most cases the owners of bars and even some of those rounded up in video gambling raids are never convicted. Many could plead guilty to lesser crimes that don’t fall under the gambling statutes. And bar owners, in particular, often face only a fine from the state’s liquor control commission.
Under the current gaming board rules, those bars could be denied licenses to operate new, legal video gambling machines. Under the proposed legislation, it appears they would have to be allowed licenses, assuming no other strikes against them.
Granted, this is not a good idea. The Gaming Board should have wide latitude to determine who should and should not get a license for the new legalized machines. But that’s no reason to go all “yellow” on us.
Illinois quarry operators and Mayor Richard Daley’s administration are mounting a last-minute push to persuade state lawmakers to make it easier for trucks to dump construction site dirt in quarries, an effort that went nowhere a year ago due to concerns that unsafe materials could end up in groundwater.
Actually, the bill has been changed, so it’s not the same “effort that went nowhere” last year, and the attorney general is now neutral.
A legislative push to raise the state tax on cigarettes was as unwelcome to smokers in Streeterville — and even some nonsmokers — as Thursday’s chilly lake breeze.
Reliable polling data shows that over 70 percent of Illinoisans support a cigarette tax hike, but that’s not mentioned. Instead, we get this man in the street (just around the corner from Mother Tribune’s International HQ) stuff that doesn’t really mean anything.
A $1 billion, 53-mile expressway linking Illinois and Indiana is still a long way away, but a bid to at least get the ball rolling advanced in the Legislature.
If Rod Blagojevich had cooperated with Indiana when he had the chance, workers would be busily constructing this project right now. Moron.
Deep in its 154 pages is a tax increase, albeit one to be paid heavily by out-of-towners. It would double the tax rates that taxi and bus operators pay for serving Chicago’s airports (to $4 for taxis), with 75 percent of the money supporting marketing campaigns for McCormick Place and 25 percent for the convention center in Rosemont. […]
Gerald Roper, president of the Chicagoland Chamber of Commerce, said the tax increase would raise $5 million to $8 million for convention marketing, and he backs the reform. “I think this is a game-changer,” he said.
* It’s a bit hard to understand why Barack Obama is supposed to, or would want to “control” Chicago and Illinois politics. He never did before he went to DC. He has no real need to do so now, other than maybe getting some of our stranger congresscritters in line. I don’t think this has been an issue with any other president since maybe Johnson. Maybe we’re so screwed up he’s supposed to solve our problems. Trust me, he can’t…
That the president from Chicago, and his Chicago-based White House circle, can’t control the elementary workings of Illinois politics is, from afar, puzzling.
At issue is a letter state Sen. Michael Noland, a Democrat from Elgin, recently sent to 15 Republican lawmakers pleading for the passage of a proposal that would increase the state income tax to 5 percent from 3 percent and expand the sales tax to services in an effort to help balance state spending. It passed the Senate last year with Noland’s support, but has stalled in the Illinois House.
In his letter, Noland argued the GOP lawmakers were in “safe” legislative districts, meaning they likely would get re-elected even if they voted for a tax increase.
Noland said he also mailed copies of the letter, which was written on official state stationery, to select special interest groups such as the Responsible Budget Coalition - a collection of unions, social service agencies and others supporting the tax increase.
Even Cindi Canary didn’t see the point…
“It was weird, it was probably a tactic failed from the beginning, but we don’t necessarily see the ethical brouhaha,” Canary said. “We make this very messy distinction between governing and running for elections, and you’d like to think it’s very clean, but it’s not. A lot of what goes on in what we call governing is, well, the fodder people use to run for election.”
* I’ve never been a fan of school vouchers, but I thought the Chicago vouchers bill that failed in the House this week deserved a chance. The city schools in question are so bad that I was perfectly willing to give something else a chance. Kadner totally disagrees...
I find myself breathing a sigh of relief.
I say that because the debate over vouchers in the Legislature ended all discussion about the need to make public schools better and to fund them fairly.
It was a cop-out that let everyone off the hook: Elected leaders, parents, teachers and newspaper editorial writers.
It wasn’t a cop-out, it was a stab at trying something new. It was a limited program, so there was no way anyone could say “OK, we fixed it, move along, cut schools even more.” And the debate didn’t “end” the debate about school funding. If anything, it intensified that debate, at least in the House.
Too many people are just so totally invested in this school funding fight that they’re not willing to allow anything else to intervene which might - in their minds - distract or detract from their decades-long war. There ain’t no money, campers. Even if we doubled the tax rate, there wouldn’t be enough money to do what they wanted because this state is so deeply in hock. We gotta start looking for other solutions as well, both small and large.
* I have to hand it to the Tribune editorial board. I pound them relentlessly here for their all-too-goofy fact-less opinions, but they still gave me a plug in today’s edit. I’m not sure how to react.
* Related and a roundup…
* NEW: Illinois Senate OKs McCormick Place legislation
Metra’s longtime executive director, Phil Pagano, apparently walked in front of a Metra train in Crystal Lake this morning, killing himself, sources said.
Pagano was on paid administrative leave from Metra, where he had been executive director since 1990, and had worked for the agency since its creation in 1984.
The fatal collision occurred on the tracks near Hillside and Terra Cotta roads by Sternes Woods Park in Crystal Lake.
“It appears to be a suicide,” Sheriff Keith Nygren said. Nygren would not confirm the identity of the victim.
The sheriff said there appeared to be no car near the train tracks, and that the victim appeared to walk on them.
Orlando Jones, Chris Kelly, Michael Scott and now maybe Pagano. All under corruption investigation.
Chicago Magazine, by the way, has a long, disturbing profile of Chris Kelly. It’s not online yet, but the author was interviewed by Chicago Tonight. Go have a look.
* A fiscal note has been filed on the STAR bonds bill, which I long ago tagged as the “Worst Bill Ever.” This will give you an idea of how much sales tax money these developers are in line to snag…
The Illinois Department of Revenue estimates that the combined State and local sales tax available for debt repayment over a 20-year period at between $1.0 billion and $1.3 billion. This range represents the potential tax subsidy for the UTC development.
At least a billion dollars. You can easily see why they are willing to spend the money to hire some of the best lobbyists in Springfield. This is a bonanza.
One of the more interesting aspects of the fiscal impact note is the state sales tax revenues lost because the STAR bond district will start sucking customers away from surrounding areas…
After a few years of UTC operation, the losses from displaced taxable sales erode the early gain from the construction phase. If the full increment is used to pay debt service for 15 years, then the aggregate net State revenue loss over this period is between -$42 million and -$178 million. If 20 years, then the aggregate net State revenue loss over this period is between -$75 million and -$267 million.
The Department of Revenue didn’t do hasn’t done a new note for the proposed Marion project. [Rest of the graf deleted because the new note hasn’t yet been filed. Misread. Lack of sleep. Sorry. They can’t move this bill without that note, so we’ll see how long it takes Revenue to do it.]
Two of the companies mentioned as possible anchors for a major development in Southern Illinois say they haven’t targeted the region in their expansion plans.
Great Wolf Resorts, which operates 12 water parks across North America, was identified by Swansea developer Bruce Holland as an example of what could be built in a 400-acre “destination development” being touted for Marion.
The company, however, isn’t necessarily on board.
“Our development team currently has no plans for a Great Wolf Lodge in Illinois,” said Steve Shattuck, a spokesman for the Wisconsin-based water park operator.
Similarly, a spokesman for outdoor outfitter Cabela’s said he hasn’t heard about a possible Southern Illinois location.
Nebraska Furniture Mart was more explicit…
According to eight of the mayors, Holland said he had several discussions with the furniture retailer and would be willing to give them a state-backed $100 million or greater incentive to locate in Glen Carbon. […]
Nebraska Furniture Mart Executive Vice President Robert Batt told The Telegraph that his company had received a letter of inquiry a long time ago from a member of Holland’s partnership group regarding the Glen Carbon site, but never conducted active negotiations.
“St. Louis is a market under consideration, which is true. But whether it’s in Illinois or Missouri remains to be seen,” Batt said.
“One thing I can guarantee you with 100 percent certainty is, we ‘ain’t’ going to Marion,” he said, adding with a quip: “We ‘ain’t the Marion kind.’”
That market, Batt said, is far smaller than the company prefers.
Comments like that led the Belleville News Democrat to wonder aloud about something that others are pondering…
Does the language leave a door open for the developers to use STAR bonds in Glen Carbon? A lot of people think that’s what this sudden strategy shift is all about.
It is pretty hard to believe that a destination business would want to locate in Marion, far from any major city — although we guess if the taxpayers are going to pay the tab, why not?
Whatever the location, the answer on STAR bonds remains the same: No.
With one day left in the Legislature’s session, the House Revenue and Finance Committee passed the “STAR” bonds legislation to the full House on an 11-2 vote.
“To put something like this on the books is absolutely offensive, in my opinion,” said state Rep. Careen Gordon, D-Coal City. She said it was wrong for “the developer to come in and ask for so much” from the state amid a financial crisis.
If Forby and Bradley succeed, this will not necessarily pave the way for a STAR bonds development in the metro-east. Rebecca Rausch, a spokeswoman for the developers, said the bill still contains specific eligibility criteria that tenants would have to meet.
“It’s not like anybody could create a STAR bond district,” Rausch said. “It doesn’t open the flood gates for STAR bonds everywhere.”
Laws are changed all the time in Springfield. That’s what bills usually do. They don’t usually create totally new laws, they mostly just amend laws currently on the books. And this would be such a lucrative law that Chicago, Rosemont and countless others will rush to cash in. Guaranteed. TIFs were supposed to be strictly limited, too, remember. Now, half of Chicago is in a TIF district.
Friday, May 7, 2010 - Posted by Capitol Fax Blog Advertising Department
[The following is a paid advertisement.]
Taylorville means jobs
• Nearly 10 million labor hours needed to build plant - resulting in almost 2,500 construction jobs at peak
• Hundreds of permanent plant and mining jobs
• Billions of private dollars injected into Illinois economy
Taylorville protects ratepayers
• Residential and small business customer rate impact capped at 2.015%
• No cost to ratepayers before 2015, when TEC comes online
• Increasing supply of “base load” power will hold down future prices
Taylorville safeguards the environment
• Emissions comparable to natural gas generation
• Net reduction of nearly 2 million tons of CO2 annually
• Dry cooling design cuts water needed by 70% - no fresh water used for cooling
U of I / Illinois Chamber of Commerce study shows clean coal economic “Ripple Effect”
• “Clean coal development produces significant energy, jobs, economic development and significant, long-term positive economic impact on the state”
• Taylorville and similar projects can boost central and southern Illinois economy
Taylorville supported by broad coalition including
• AFL-CIO
• American Lung Association of Illinois
• Citizens Utility Board (CUB)
• Clean Air Task Force
• Illinois Coal Association
Illinois lawmakers were in disarray Thursday as they groped for stopgap measures to address a $13 billion deficit equaling nearly half of the state’s general-fund revenue.
The state faces one of the nation’s worst budget crises, spilled over in part from the broader national economic crunch, and its current bond ratings lag only California’s. But the confusion in the legislature indicates that serious steps to fix state finances won’t be taken until after the November elections—if then.
Illinois lawmakers have little appetite for drastic spending cuts. An income-tax increase proposed by Democratic Gov. Pat Quinn is going nowhere. Even temporary steps, such as borrowing to make pension payments, have stalled. Illinois is months late on many of its bills and has no plan for catching up.
The legislature may push the problem to the governor’s office by granting Mr. Quinn emergency budget powers and adjourning Friday, about three weeks earlier than usual. A bill under consideration in the state House would give Mr. Quinn greater leeway to shift money among state funds and to require agencies to set aside part of their budgets now in case of future cuts.
…Adding… Ms. Merrick just sent me a note saying she’s an “Illinois lifer” who has covered the state and region for 10 years. I shoulda known her quality piece could never have been written by an outsider.
The two parties are so divided that they couldn’t even agree on whether the measure would raise or lower state spending. Trotter said it would reduce spending by about $2 billion but provided no details to support that claim.
House Democrats are poised to drop an ugly inaugural gift into the lap of the next governor by considering a plan to delay making a $3.7 billion payment to the state pension until next January.
Pension officials object. They note that delaying the payment means giving up months worth of interest that could be collected if the $3.7 billion were invested.
To keep checks going out to retirees, the pension systems probably will have to spend between $100 million and $200 million of their assets, said William Atwood, executive director of the Illinois State Board of Investment. That would put the systems, already underfunded by about $80 billion, even further behind.
Atwood said he also worries January will arrive and officials still won’t be able to find the pension money. The retirement systems could end up with no money at all, he said.
As part of the political posturing, Senate Democrats pushed a plan that called for eliminating Senate GOP projects funded under last year’s massive public works bill. It was an attempt by Democrats, tired of Republican complaints of overspending, to make GOP senators vote to restore their pet projects.
“You like pork when you’re eating it,” Sen. Rickey Hendon, D-Chicago, told Republicans.
Senate Republicans accused Democrats of violating a deal made to authorize the projects last year when some of them voted to legalize video poker in bars and restaurants as part of a public works program.
Republicans also were stung that the move came while Senate GOP leader Christine Radogno of Lemont was absent, attending her daughter’s college graduation in Colorado. That set up an odd situation later when Cullerton asked his Democratic members to vote to restore the $100 million in GOP projects to the budget, while Republicans voted to eliminate them.
All that griping, fighting and gnashing of teeth for nothing.
“We thought we had met the depths of how low we can go last year,” said state Sen. Donne Trotter of Chicago, a chief budget negotiator for the Democrats. “That has certainly played out that we can get even lower.”
