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Friday, May 7, 2010 - Posted by Rich Miller

[Posted by Barton Lorimor]

I have not met very many fellow Guster fans lately, but I think one of their songs is applicable to our present situation.

Have a great weekend, everyone.


No one seems to know just who to follow anymore
Hang on, hang on
There’s a twilight, a nighttime and a dawn
Who knows how long?
So hang on

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*** UPDATED x3 *** So far this evening…

Friday, May 7, 2010 - Posted by Rich Miller

* 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…


Sen. Brady also gave his thoughts about the budget process and today’s adjournment…


The AP story on today’s adjournment is up…

“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.

…Adding… And from Gatehouse…

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.

  12 Comments      


*** UPDATED x1 *** This just in… STAR bonds bill passes

Friday, May 7, 2010 - Posted by Rich Miller

* 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…


  75 Comments      


*** UPDATED x9 *** So far today…

Friday, May 7, 2010 - Posted by Rich Miller

* 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’.

Rep. Mike Zaleswki Tweeted once

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 1 - 2:40 pm *** The IEA is liveTweeting the House debate on the pension borrowing plan

[Democratic Rep. Jack Franks] says he won’t support. Not “voodoo” economics but “Alice in Wonderland” economics. Should be cutting, zero-based budget.

Kristina Rasmussen is also live-Tweeting.

*** UPDATE 2 - 2:44 pm *** In non-budget news, the House has passed Speaker Madigan’s foreclosure package.

*** 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


Part 2


*** 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.

*** UPDATE 8 - 3:53 pm *** Watch Speaker Madigan narrowly miss joining the infamous Century Club


*** UPDATE 9 - 4:29 pm *** Rep. Jay Hoffman unloaded on the Republicans this afternoon during the pension bond debate. Watch


  57 Comments      


Even R2K now shows Kirk, Brady leading

Friday, May 7, 2010 - Posted by Rich Miller

* 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

Alexi Giannoulias (D) 38 (43) [38, 33, 37, 44]
Mark Kirk (R) 41 (36) [46, 37, 41, 41]

* 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

Crosstabs

* Trendlines…



* Methodology…

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.

  22 Comments      


Question of the day

Friday, May 7, 2010 - Posted by Rich Miller

* 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.

  38 Comments      


The rest of the story

Friday, May 7, 2010 - Posted by Rich Miller

* Most breathless lede of the day

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.

* Half-true

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.

* This goofy genre really needs to be retired

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.

* No back story

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.

* Least-noticed aspect of the McCormick Place reform bill…

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.

It shouldn’t be puzzling. We’re a basket case.

* I’m no fan of Sen. Noland at all, but this seems a bit of a stretch

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

* Nursing home reform bill passes Illinois House

* Illinois lawmakers looking into 220-mph high speed rail

* Lawmakers still working on police/fire pension bill

* University borrowing bill heads to Quinn

* Illinois telecom reform bill headed to Gov. Quinn

* McCormick overhaul bill details trustee pay, work rules, naming rights: report

* Back-to-school sales-tax holiday passes Illinois House

* House OKs sales tax break for back to school shopping

* House supports extending Cook tax break

* Ill. lawmakers approve Quinn’s property tax relief

* ‘Clean fill’ disposal concerns tossed, construction waste bill clears House

* Bill to study ‘Illiana’ expressway connecting I-55, 65 advances to gov

  16 Comments      


Another suicide?

Friday, May 7, 2010 - Posted by Rich Miller

* This is becoming a deeply disturbing pattern in Illinois politics

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.

And let’s keep it toned down in comments, please.

  39 Comments      


Shooting STARs

Friday, May 7, 2010 - Posted by Rich Miller

* 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.]

* The developers have been tossing retail company names around in an effort to gin up interest in the project. But they have yet to approach at least some of those companies

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.

* The bill zoomed through committee yesterday

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.

* Bogus argument alert

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.

  15 Comments      


Energize Illinois’ Economy: Say YES to Tenaska’s Taylorville Energy Center

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

For more information, visit cleancoalillinois.com

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Worst. Budget. Ever. But nobody has another plan

Friday, May 7, 2010 - Posted by Rich Miller

* Almost always, outsiders can never quite comprehend Illinois. But Amy Merrick at the Wall Street Journal did a bang-up job today with the budget mess

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.

* This is just a perfectly awful mess

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.

And, of course, there’s this

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.

The ugly but undeniable truth is that borrowing to make the pension payments is actually less expensive and far more responsible than this “suspension” of the pension payments until 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.

I’ve actually heard a lower number than this, but the Tribune says the cost of the delay is “up to $37 billion in lost investment earnings over the next 35 years.” Borrowing the $4 billion or so and paying it back over 8 years would cost a tiny fraction of that.

* Last night’s most worthless moment

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.

* Budget director David Vaught gets our quote of the day award

“Let’s get real here,” Vaught said. “We’re out of money.”

Yeah, no kidding.

Republican gubernatorial nominee Sen. Bill Brady is the runner up

Asked later why he chose not to participate in the [Senate budget] debate, Brady said, “I didn’t find anything worth speaking to.”

When pressed on the question, Brady walked away from reporters outside the Senate chamber, saying only, “Thanks.”

And Sen. Trotter is second runner-up

“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.”

  63 Comments      


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Friday, May 7, 2010 - Posted by Rich Miller

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*** UPDATED x9 *** So far tonight…

Thursday, May 6, 2010 - Posted by Rich Miller

* Senate President John Cullerton talked to reporters a short while ago about lump-sum appropriations, the pension “holiday,” the cigarette tax and adjournment. Watch


*** UPDATE 1 - 6:48 pm *** The “Worst Bill Ever” (STAR bonds) moved out of the House Revenue Committee and is heading to the floor for a vote tonight. The House Democrats substituted two people off the committee to make sure it passed.

* House Majority Leader Barbara Currie unveiled the budget outline at committee tonight. It’s a five percent across the board cut with lots of emergency powers for the governor, most of which we’ve talked about here before. Contingency reserves, extended lapse period, furloughs, interfund borrowing, selling tobacco proceeds, and a temporary suspension of the Contuing Appropriations Act.

The Democrats are also “suspending” the pension payment for 6 months. They say they’ll still pay the entire amount, but the scheduled payments will be delayed until January 31st.

*** UPDATE 2 - 7:47 pm *** House Speaker Michael Madigan talked to reporters earlier this evening about the McCormick Place reforms, which is being debated on the House floor now…


Madigan also talked about the budget and other stuff


The House passed a nursing home reform bill a few minutes ago as well.

*** UPDATE 3 - 7:49 pm *** Senate Transportation Committee Chairman Sandoval isn’t talking much about this story, but he is clearly interested in the job and suggested that some higher-ups have talked to him about it…

At Metra, where Executive Director Phil Pagano has been put on leave amid a financial scandal and is likely to be gone soon, the name of Illinois Senate Transportation Committee Chairman Martin Sandoval, D-Cicero, has come up as a possible replacement.

*** UPDATE 4 - 8:00 pm *** As I told you earlier, the STAR bonds bill is heading for a House floor vote tonight, but the mayor of southern Illinois’ Mt. Vernon thinks they ought to slow down

Mount Vernon mayor Mary Jane Chesley already echoes the concerns that halted the Glen Carbon project.

“We have a new interchange and are in the process of building infrastructure on approximately 600 acres around the interchange to attract businesses to the area,” she wrote on May 6.

“What are our chances of attracting these businesses when only 40 miles down the interstate lies Marion with this proposed added development tool?

“While I am all for regional development, I cannot support projects utilizing state sponsored programs that give one community an advantage over others.”

*** UPDATE 5 - 8:04 pm *** Senate Republican Leader Christine Radogno is on her way to her daughter’s college graduation in Arizona, so she isn’t present for the floor action tonight.

*** UPDATE 6 - 8:06 pm *** In case you were wondering, the end of session party is scheduled for tomorrow night at the building which houses the Pizza Machine and other establishments. Same place as last year. Show your Statehouse ID to get in.

*** UPDATE 7 - 8:08 pm *** Budget director David Vaught talked to reporters this evening about borrowing to pay the pension funds, among other things. Have a look


*** UPDATE 8 - 8:22 pm *** The House just overwhelmingly approved the McCormick Place reform bill.

…Adding…
Rep. Marlow Colvin of Chicago explains his “No” vote on the McPier overhaul bill…


The bill passed 93-25-0.

*** UPDATE 9 - 11:15 pm *** The Senate Democrats pulled a bit of a stunt in Senate Approp 1 tonight. They stripped out all the reappropriations of Senate GOP capital projects and added them onto a separate amendment. The idea was to make the Senate Republicans vote for their own pork projects separately. The Dems said at least the Repubs would be voting for something. The Repubs accused the Dems of violating the original capital projects agreement by stripping out their projects and forcing a special vote on just their capital items.

The Republicans announced that they would refuse to vote for their own projects. They were willing to allow it all to go down and the SDems weren’t willing to put more than nine votes on the amendment - the bare minimum required to help the Repubs get to 30 votes.

The Democrats, however, are now having second thoughts. As I write this, the debate is beginning on the budget including the capital reapproprs, but the Democrats will now just drop the whole thing and apparently vote for the GOP projects.

…Adding… Sen. Matt Murphy (R-Palatine) explains why his caucus was so upset about what the Democrats did in committee tonight


  23 Comments      


The IL GOP makes a big oopsie

Thursday, May 6, 2010 - Posted by Rich Miller

* Remember that press release from earlier today from the Illinois Republican Party?…

State Treasurer Alexi Giannoulias is holding a press conference at Granite Innovation today for his Senate campaign. While the stated purpose of the event is to promote Giannoulias’ “new agenda to help Illinois families balance increased challenges between working to make ends meet and raising children,” perhaps the State Treasurer could ask his hosts to pay the $26,446 they owe the State of Illinois in back taxes.

Turns out, the business in question didn’t have a back tax bill. Oops. From a press release…

STATEMENT BY GIANNOULIAS CAMPAIGN SPOKESMAN MATT MCGRATH ON KIRK/ILLINOIS GOP’S MALICIOUS SMEAR OF SMALL BUSINESS OWNER

“Mark Kirk and his Republican allies hit a new low today, spreading an irresponsible, malicious lie in order to smear an Illinois small business owner in the furtherance of a political agenda, and the only honorable thing for Congressman Kirk to do is to repudiate his party chairman, Pat Brady, and apologize to Ms. Dandamudi immediately.

“Today’s event, hosted by Ms. Dandamudi, was intended to foster a discussion of the issues facing women and families, and was successful - notwithstanding the Illinois Republican Party’s false claims apparently intended to drown out the discussion of important issues. By participating in the process, telling her story, and showcasing her successful small business, Ms. Dandamudi, who is also a single mother, deserves better than to be maliciously and falsely smeared, particularly on behalf of a politician like Mark Kirk, who seeks to represent her in the U.S. Senate. This kind of drive-by, cheap shot, substance-free attack is exactly what is wrong with our political process, but exactly what a Washington insider like Mark Kirk traffics in. Alexi is proud to be running for Senate to be a voice for people like Ms. Dandamudi and the countless others like her who are looking for leadership and solutions to the problems they face everyday, not more of the same political games.”

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CBS2 whacked for challenge to Kirk on Broadway Bank

Thursday, May 6, 2010 - Posted by Rich Miller

* WLS radio talkshow hosts Don & Roma stirred up a hornet’s nest online by posting audio of CBS2 Ed Marshall apparently claiming that his station wasn’t going to cover the Senate race if all Mark Kirk wanted to talk about was the Broadway Bank closure. The clip is here. And here’s Ed’s quote…

“Channel 2’s made a decision that we’re really not going to cover the Senate race if it consistently, only in your terms is about Broadway Bank. The bank’s been taken over by the government. Alexi’s been pilloried. Tell me – what is your campaign going forward?”

Chicago CBS News Producer Inadvertently Exposes Democrat Bias In Senatorial Race” claims a Big Government blogger. “CBS Affiliate Threatens GOP Candidate for Mentioning Giannoulias Bank Failure” was Newsbusters’ take. “Tape Catches Bias of Media in Illinois Senate Race,” says the Examiner.

Station news director Jeff Kiernan forcefully responded

“Anyone who characterizes our position as a refusal to cover the Kirk campaign or the Giannoulias campaign is not only wrong, they are recklesly and purposefully wrong,” Kiernan tells me.

“My suggestion is to ask them why they’re doing it. I absolutely stand by the spirit of that question — of course we’re going to aggressively cover candidates Kirk and Giannoulias — however we refuse to let the candidates and their managers reduce a U.S. Senate campaign to a single issue of one candidate’s relationship with a bank. Yes, that is an important issue and one that I will affirmatively tell you we have consistently reported on and will continue to do so, but we will also aggressively challenge the candidates to talk about other substantive and critically important issues facing the citizens of Illinois and the United States.”

Kiernan noted that the station has pushed both candidates, with limited success, to talk about subjects other than the bank, and that Kirk himself, in the exchange played on WLS, “moves beyond Broadway Bank.”

Giannoulias recently cracked that Kirk’s entire campaign strategy was “A noun, a verb and Broadway Bank.” Kirk certainly spends a lot of time on the bank, and reporters do have a right to push him to talk about other stuff. Ed’s word choice was, um, quite unfortunate, but there are a whole lot more issues than the bank and they deserve coverage.

Also, contrary to the hyperventilating types, Ed is no liberal Democrat. He used to flak for Republican Comptroller Loleta Didrickson. I got into it with him so intensely once that they canceled their Capitol Fax subscription. That hadn’t happened before (or since). We’re not exactly close.

Kirk, by the way, has published his “Small Business Bill of Rights.” And the IL GOP just sent out a press release slamming Giannoulias…

State Treasurer Alexi Giannoulias is holding a press conference at Granite Innovation today for his Senate campaign. While the stated purpose of the event is to promote Giannoulias’ “new agenda to help Illinois families balance increased challenges between working to make ends meet and raising children,” perhaps the State Treasurer could ask his hosts to pay the $26,446 they owe the State of Illinois in back taxes.

“Treasurer Giannoulias should know better,” said Illinois Republican Party Chairman Pat Brady. “Illinois is in the midst of an unprecedented budget crisis - a crisis Alexi Giannoulias says we need a tax hike to solve. But while Alexi is asking struggling Illinois families to pay even more, he’s holding campaign events with people who haven’t paid what they already owe.”

According to public filings, the State of Illinois has filed $36,869 in tax liens against Granite Innovation and M R D Associates from 1998 to 2007. Releases have been filed for $10,420-worth of the liens, while $26,449 appear to still be outstanding.

* In other news, Sen. Randy Hultgren has released a new poll of 300 likely voters that show him essentially tied with Democratic Congressman Bill Foster

A May 3-4 survey of 300 likely voters in Illinois 14th District by the Tarrance Group showed Hultgren with 45% and Foster 44% in a general election match-up.

Republicans believe other numbers in the poll further demonstrate Foster’s vulnerability. The congressman’s job rating was 40% approve/41% disapprove and personal rating 40% favorable/33% unfavorable. Hultgren’s personal rating was 22% favorable/4% unfavorable.

In addition, 28% of respondents said Foster deserves reelection while 55% said a new person should be given a chance. And Republicans led on the generic ballot 47%-36%.

  59 Comments      


*** UPDATED x5 *** So far today…

Thursday, May 6, 2010 - Posted by Rich Miller

Please post your own updates in comments. Thanks.

* The House has passed a bill to bring some sanity to the recently changed lobbyist fees law. The law was struck down as unconstitutional. It imposed $1,000 annual fees for both individual lobbyists and the entities they work for. That can add up quick for small not-for-profit groups. The annual fee in this bill would be $300 and it passed 116-1 (Rep. Mell was the lone “No” vote). [UPDATE: Somebody else voted Mell’s switch and voted wrong. Oops. She corrected the record right away.] The legislation now moves to the Senate. The proposal is SB 1526.

* The “slots at tracks” language has finally surfaced. Click here to read it. This could start moving quickly. We’ll see.

* Senate committee approved the AT&T dereg bill today and it’s heading to the floor for certain passage. My intern Dan Weber talked to a representative from CUB about what they believe is still wrong with the legislation that zoomed out of the House unanimously yesterday. Take a look


* The House approved the governor’s back to school sales tax holiday 65-51. It now moves to the Senate, where Senate President Cullerton has expressed reservations. Republican Rep. Chapin Rose has co-sponsored similar bills in the past, but he said with the budget crisis engulfing the state this is the wrong time to be taking money out of the till. He debated sponsoring Rep. Keith Farnham, a Tier One target. Watch


* A House committee has approved the cigarette tax hike with a new change

A House committee today narrowly approved raising cigarette taxes to provide aid for health care and schools in the cash-strapped state budget.

The 4-3 vote for Senate Bill 44, which would raise the cigarette tax by a $1 a pack, means the measure now heads to the full House.

The tax would increase from 98 cents a pack, to $1.98 cents per pack. House Majority Leader Barbara Flynn Currie, D-Chicago, said the money from the tax increase would go into the Medicaid program first and would be matched by federal dollars.

A tweak to the bill would allow the money to go into the Education Assistance Fund after the federal match. The money would be spent on special education and transportation costs.

*** UPDATE 1 - 1:43 pm *** The so-called “7 percent solution” property tax measure just passed 107-10. It now moves to the Senate.

*** UPDATE 2 - 1:59 pm *** The Senate just passed the AT&T bill 59-0. End.

*** UPDATE 3 - 2:15 pm *** Old news, but here you go

Lawmakers might decide to simply delay making billions of dollars in state worker pension payments until January as a way of dealing with a massive budget gap, leading House and Senate Democrats said today.

House Majority Leader Barbara Flynn Currie and Sen. Donne Trotter, both Chicago Democrats, acknowledged the possibility of skipping the pension payment. The option arose after Republicans showed little support for borrowing money to balance this year’s budget.

*** UPDATE 4 - 2:33 pm *** Commenter “George” made an excellent point…

At this time, it is always most beneficial to look at what will be heard in Executive Committee hearings (today’s House Exec Committee hearing is at 4 pm).

Looks like 2 bills:
SB28 McCormick Place
SB3660 Emergency Budget Act

*** UPDATE 5 - 2:44 pm *** Rep. Randy Ramey has been getting razzed on the House floor today for his jacket. It’s much-deserved…



…Adding…
Video


* Other stuff…

* State shuffling agency offices - Dropping some leases managed by Cellini-founded firm

* Rep. Rose ‘hijacks‘ Frerichs’ campus voting bill

* McCormick show of force - Exhibitors fight to shape bill they say will keep their business in the city

* Daley Not Sold on Renaming Navy Pier

* Now Or Never For Chicago’s Convention Industry

* Zorn: How does Illinois rank?

Please post your own updates in comments. Thanks.

  32 Comments      


Question of the day

Thursday, May 6, 2010 - Posted by Rich Miller

* Rep. John Fritchey (D-Chicago) just announced that he was moving his final bill as a House member. Fritchey won the Democratic nomination for a Cook County Board seat in February, so he’s retiring from the House.

In his honor…

* The Question: Caption?

  74 Comments      


Some progress, some not so much

Thursday, May 6, 2010 - Posted by Rich Miller

* Finally, at long last, Rod Blagojevich’s free rides for seniors plan is getting a much-needed overhaul

The new [income] limit would require a senior living alone to make no more than $41,000 a year. Seniors living together would be limited to $54,000, and three seniors could make no more than $57,000.

State Sen. Ricky Hendon, D-Chicago, said the limits are reasonable. Though he said the real test will be how the Chicago Transit Authority and Regional Transportation Authority will handle the new limits, and new pool of money.

“Let’s see what they do with the money. I don’t trust them…They just want to take the money and run. We want to make sure with the sunset at least we can see if they keep their word.”

The limits on free rides would expire in two years. Chicago’s mass transit officials say they need at least that long to recover from the cost of the free rides program first started under former Gov. Rod Blagojevich.

The bill passed the Senate unanimously and now goes to the House, where it will likely zoom through. The free rides program for seniors regardless of income has stuck in the craw of many, so this change will help calm some well-deserved rage.

* AT&T’s deregulation bill passed the House unanimously yesterday

Under the measure, SB 107, broadband and Internet-based phone providers would be guaranteed for the life of the law that those services would remain unregulated. Internet-based phone services would be required to register with the Illinois Commerce Commission but would only have to provide very basic information. That information would allow the state to map where Illinois does and does not have adequate broadband adoption.

Regulations on landline service providers would also be loosened. Instead of requiring repair of landline service within 24 hours, the measure would allow a 30-hour window. The threat of a $30 million fine for companies such as AT&T for failing to meet service quality standards would also disappear if the bill became law.

They would, however, still be subject to fines of up to $200,000 for each offense. Other service quality standards would include installing service to customers within five business days and keeping appointments with customers. Failing to meet those standards would result in consumer credits.

The measure would also fix costs for three levels of basic phone service for the next three years.

Proponents say loosening regulations and providing regulatory certainty will encourage telecommunications companies to invest in broadband in Illinois, which in turn would bring more jobs in other sectors to the state.

The consumer advocacy group The Citizens Utility Board says the bill contains no provisions requiring telecommunications companies to invest in broadband throughout the entire state, including rural and low-income areas, nor does it guarantee jobs.

This is either a great bill or a disaster. Nobody knows for sure what AT&T will do, but there’s no guarantee of more jobs or better and wider broadband service. It’s a “trust us” thing, and those have a habit of backfiring.

* ComEd backed off yesterday

A day after offering to help the financially strapped state with a $500 million payment in exchange for a rate hike, ComEd late Wednesday changed its mind.

The state-regulated utility pulled its offer after concerns were raised about consumer protection and how the deal would be construed.

“In last few days … it has become clear that there is not enough support in Springfield to continue pursuing this course,” ComEd said in a statement. “We acknowledge and respect the concerns many public officials have and will move on.”

Not a smart move on their part.

* As we told you last night, the Chicago school voucher bill was put on Postponed Consideration after receiving just 48 votes. It could come back again, since there was a lot of vote-switching and late “No” votes yesterday


However, sponsoring Rep. Kevin Joyce, told the Sun-Times that he probably won’t bring it back until November

Joyce kept the voucher plan alive through a parliamentary maneuver, but it won’t resurface during the remaining two scheduled days of the Legislature’s spring session. Instead, Joyce said he may try to revive it after the fall elections.

We didn’t post this last night, but Rep. Joyce delivered one of the strongest closing speeches I’ve seen in 20 years. Watch it


Rep. Lou Lang, an opponent of the bill, defended his side against charges that they are in the back pockets of the teachers’ unions


* I’m told that this bill may come up for another vote today

A move to redefine green energy in Illinois died a quick death this week in Springfield, and we’re thankful that lawmakers’ frenzied push for job creation did not trump common sense.

Legislators were correct to keep power created by incinerating rubber tires in a separate and less-desirable category than wind and solar power. Harnessing the elements to produce electricity differs greatly from burning tires for power, and we’re thankful it only took two days for Springfield lawmakers to figure that out.

* The “Worst Bill Ever” was scheduled for a hearing last night, but didn’t move. Its sponsors are hoping to get the STAR bonds bill back on track today

Legislation designed to make possible a major development project in Marion has been filed and awaits action in the House.

State Sen. Gary Forby, D-Benton, has filed an amendment to Senate Bill 2093 to authorize Sales Tax and Revenue bonds for the project as an incentive to bring major destination development businesses into the area. The project was announced Saturday, just one day after a similar deal proposed by project developer Holland Construction of Swansea was killed over arguments and disagreements in its establishment.

State Rep. John Bradley is backing the legislation in the House.

Rep. Bradley ably defended his bill yesterday when pressed by three reporters. Watch it


While he made some excellent points about the impact on his region, I still say this thing will become an uncontrollable monster in the coming years as more and more communities attempt to fund massive projects with state sales tax revenues.

* Related and a roundup…

* Illinois House Could Vote on Medical Marijuana This Week

* Ill. video poker expansion could be extended to 24-hour truck stops

* Arlington Park vision’s missing ingredient: The proposal cooling its heels in Springfield would authorize up to 1,200 slot machines at Arlington Park and other tracks, generating, supporters say, millions for the cash-starved state. But it has a fatal flaw. It overrides home-rule authority and forces on communities something that, let’s be candid, falls just short of a vast land-based casino, especially since Arnold refused to rule out the possibility of seeking other forms of gambling in the future.

* Dear lawmakers: Do the right thing for our region: Legislation must be approved creating sales tax and revenue (STAR) bonds for the development of a tourism destination on a 400-acre site bordering Interstate 57 and north of Illinois 13 in Marion. The development plan from Bruce Holland, of Swansea, is projected to include a major retailing destination and entertainment venues, potentially including a sprawling resort and water park complex.

* Senate votes to scale back free rides for seniors

* School vouchers rejected despite suburban support

* Illinois House rejects vouchers

* Chicago school vouchers shot down by Illinois House

* Illinois School Voucher Bill Defeated

* Madigan’s ‘constituents’

* Mikva places blame for clout at UI’s feet, not legislators’

  19 Comments      


Happy birthday, Mom!

Thursday, May 6, 2010 - Posted by Rich Miller

* My mom’s birthday is today. She’s had a pretty rough couple of months since my dad’s stroke and I feel bad that I cannot be there with her on her special day.

My mom almost always worked while we were growing up. She was a social worker, then a school teacher, then was employed by the Department of Defense and had a high security clearance. She is the reason we were able to live in Europe. Mom’s a brilliant person. Her IQ dwarfs mine and pretty much everyone else I know. She graduated from college in three years and finished second in her class, all with two babies at home and one more on the way. Yet, for all that, she has been the best mom anyone could ever ask for and we never wanted for attention.

When she was with the DoD, she often had to work late, but would regularly come home at lunch and make us a pie and get dinner ready so that when we got home from school we’d have something to eat. She loves crafts, and we spent countless hours being entertained with her projects for us. She was a committed teacher and instilled a curiosity about the world into her children. We mostly flew through school because of her work with us.

Mom taught all of her five sons to cook, sew, do laundry and generally take care of ourselves. She has always been a feminist without the dogma. Women should work hard and then naturally expect to get ahead just like men. And men needed to step up and take responsibility at home. End of story. She took a lot of flak from the far too prevalent insensitive old boy clods in the military, but she kept plugging away and retired at a high rank.

Mom has a great sense of humor, even though she can’t tell a joke to save her life. She dotes on her grandchildren, she worries over her sons, she spoils her husband (rotten, at times) and she has welcomed all of her daughters-in-law into the family with open arms. My wife calls her “Mom” for a reason. She’s just as much a mother to Wasan as my wife’s own mom. That means more to Wasan and myself than you could imagine.

We were all exchanging birthday greetings via e-mail today and Mom responded…

I always thought when I reached the ripe old age of 67 I would feel old and change somehow. But that isn’t true. Why is it when we see older people we think they have no more hopes and dreams? Take it from me that they do have hopes and dreams albeit a bit different ones than a 20, 30, 40 year old.

Today I hope for a full recovery for your Dad and no more strokes. He is doing well and even went out to get the newspaper for the first time today. Later he will go with me to see [grandson] Ryan’s circus program at school. That would not have been possible only one short week ago.

Today I hope for good health and increased prosperity for my kids and grandkids. And I hope that they realize how truly lucky they are to have all that they have—remembering material goods are not the only measure of success. Keep in mind if you have everything you always wanted, there would be no more need to dream.

Today I hope for a more tolerant society where everyone’s dreams can be achieved.

Today I hope, as I have hoped all my life, for a better way to solve a problem than with guns and war.

And to lighten things up a little, today I hope that the idiots in Springfield can pass a budget that will get our State out of a shameful financial mess. That one is about as likely to happen as world peace.

Have a great day.

A very wise and wonderful woman, don’t you think?

  39 Comments      


The harsh reality of irresponsible ideas

Thursday, May 6, 2010 - Posted by Rich Miller

* Gov. Pat Quinn is pushing a sales tax holiday for school supplies this August, just like he did last year. Last year’s plan didn’t go anywhere, and this year’s proposal isn’t looking all that promising, either

With lawmakers days away from leaving town, Gov. Quinn renewed his push Wednesday for a sales tax holiday on school supplies despite the bill’s unknown pricetag and less than resounding support from a top Democratic ally.

Under Quinn’s plan, which advanced from a House panel, consumers would pay a reduced sales tax on school supplies ranging from binders to scissors as well as school clothes retailing for less than $100 Aug. 6-15 — the second-largest shopping season of the year, Quinn said. […]

But Sen. President John Cullerton (D-Chicago) was lukewarm to the idea and said it was unclear whether the state would stand to make or lose money.

“We’re going to need to talk to the retail merchants about that,” Cullerton said, stressing he had not “signed off” on the governor’s proposal.

Bill Brady also shot it down

Brady called the governor’s sales tax holiday proposal “typical populist Pat Quinn rhetoric.” He said a single holiday doesn’t make nearly as much sense an as overall sales tax reduction

Cutting sales taxes when state revenues are way down is not the greatest budget idea I’ve ever heard.

We can argue all day about the tax holiday, and you could make the case that cutting sales taxes across the board during a recession might make economic sense. But cutting off a revenue source when state revenues are drying up makes absolutely no fiscal sense. The state has a responsibility to pay its bills, and - as we all know by now - it isn’t doing so. Making matters worse just isn’t responsible.

* Speaking of “responsible,” you probably know by now what happened to the pension bond bill last night

State budget negotiators are heading back to the drawing board today after a key component of a possible budget compromise fell short in the House Wednesday.

The House put 61 votes on a plan to borrow $3.8 billion that would be used to make required payments to state-funded pension systems next year. However, the plan needs 71 votes to pass.

“I don’t know what else we can do, but we’ll go back to the drawing board,” said Rep. Barbara Flynn Currie, D-Chicago, the bill’s sponsor. “We thought there might have been some Republican votes and maybe that will change. So back to the drawing board.”

Because borrowing money requires a supermajority, so at least one Republican vote is needed in the House to approve the plan. But even some Democrats voted on Wednesday against borrowing money for pension payments.

Patterson summed up the situation quite well

Lawmakers have shown little interest in raising taxes to balance the budget, little interest in dramatic cuts and now appear uninterested in borrowing.

The result could be the state skipping nearly $4 billion in pension payments as part of a fiscal Band-Aid intended to keep the state running for the coming months.

Legislators know that borrowing is a horrible option. It merely kicks the can down the road. But since both parties appear determined to wait until after the November election to do the heavy lifting, then borrowing is the only real recourse. Statements like this one are basically not honest

“It’s the same old thing. We’re just continuing to look at a budget as an instrument of debt rather than a balanced instrument that’s supposed to have real revenue for the expenses,” said Rep. Roger Eddy, a Hutsonville Republican.

When Rep. Eddy is ready to support big cuts to education - his central issue - then I’ll believe he’s being completely forthright about his opposition to borrowing.

And Bill Brady is even more disingenuous because his own fiscal blueprint would absolutely require substantial borrowing. Check out how he tried to deflect a reporter’s question about how he has already essentially admitted that borrowing would have to be a major part of his plan. Brady has said, and repeated it again yesterday, that it’ll take “at least three years” to pay down the state’s deficit. But there is no other way to do that than through borrowing. I’ve set up this video to begin with the reporter/Brady exchange, which is at the 2 minute, 27 second mark. Watch


Brady has proposed a 10 percent across the board cut, which won’t even produce $3 billion. He also wants to cut taxes by a billion dollars, which will make the budget hole that much larger.

They need to find about $6.2 billion to get rid of the structural deficit and another $6.5 billion or so to pay off past due bills. Brady’s plan barely puts a dent in that. If he follows through, he’ll have no choice but to borrow billions of dollars.

The governor’s proposal is mostly a freaking horrible mess. Borrow to pay pensions, defer obligations and borrow on the tobacco settlement. Other components make more sense, including hiking cigarette taxes, implementing a tax amnesty plan and adding to the governor’s power to withhold appropriations (even from mandated programs), renegotiating non-labor state contracts (as Daley is doing) and requiring furloughs.

As unpalatable and even irresponsible as most of that is, I have yet to see any state legislator in either party come up with even a slightly plan that can pass right now. Until they do, borrowing is all they’ve got, because skipping the pension payment would be an utter disaster.

Also, let’s try to avoid silly drive-by comments today. I’ve seen so much “they need to stand up and do what’s right” drivel that I’m pretty sick of it. Forget the bumper sticker slogans and elevate the discussion or find yourself deleted.

* Related…

* Are public employees overpaid? Another study says no

* Quinn, Brady debate who is better ‘cheerleader’ for Illinois

* Quinn criticizes Brady for ‘running down’ state

* Brady calls on Quinn to back Wal-Mart

* Our View: The job’s not getting done

* It’s up to legislators to solve budget crisis

* DuPage Co. peeved: State owes $7 million

* Supporters say cigarette tax hike lacks support

* Police, fire pension changes loom at Capitol

* State playing hot potato with pension burden

* Mental health groups gather at Statehouse to push for funding

* Senate passes bill to end sales tax for water panel

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