Gov. Scott Walker says the Wisconsin National Guard is prepared to respond wherever is necessary in the wake of his announcement that he wants to take away nearly all collective bargaining rights from state employees.
Walker said Friday that he hasn’t called the Guard into action, but he has briefed them and other state agencies in preparation of any problems that could result in a disruption of state services, like staffing at prisons.
Bonds from Illinois, the second lowest-rated U.S. state, are yielding less than issues from comparably rated Portugal as the state prepares to market the largest taxable municipal debt sale on record.
Next week Illinois is selling $3.7 billion of taxable debt to investors around the world after the end of the Build America Bonds program left the municipal market with pent-up demand for such securities. The offering will likely see increased interest from international and crossover buyers, said Richard Ciccarone, managing director of McDonnell Investment Management LLC in Oak Brook, which holds more than $7 billion of muni debt. […]
Its four-year bonds traded yesterday at a 4.40 percent yield. Comparable bonds from Portugal were yielding 6.15 percent, Bloomberg data show. The country, which has the euro- region’s fourth-largest budget deficit, has raised more than 4 billion euros ($5.5 billion) this year selling securities through auctions and private placements as the nation seeks to avoid resorting to international aid. […]
Illinois last month boosted income taxes 67 percent to help close its budget deficit, an act that has “resonated” with international investors, said John Sinsheimer, the state’s director of capital markets. The state has marketed the bonds in eight cities across Europe and Asia in the last two weeks, he said. […]
“They’re going to pay a penalty for their slow movement in addressing some of their basic weaknesses,” Ciccarone said. Still, “a lot of investors will be attracted since yields on investment-grade corporates are relatively low compared to what they can get on Illinois.”
According to Bloomberg, this is the largest taxable muni bond sale since 1990.
…Adding… Our resident budget expert Steve Schnorf points out in comments that the $10 billion pension bond under Blagojevich would be far larger than this one. Bloomberg may have made a goof.
* Meanwhile, Gov. Pat Quinn talked to the media today about the budget. Here’s the raw audio file from IIS…
“It’s going to be a lean year, we have to be very, very frugal,” Quinn said. […]
The governor would not say what areas will face cuts this time around, but said they will be done “in a fair way, a balanced way.”
When asked if state workers would face layoffs, Quinn said it “depends on the agency,” but noted the state has about 1,000 fewer employees now than when he took over two years ago. […]
“They’re talking about a governor that’s cut more out of the budget than any other governor in Illinois history, that’s what I’ve done,” Quinn said. “There’s always folks in the peanut gallery there that have unspecified reductions that they’re talking about. If they have ideas we’re happy to hear them, but you can’t hide in the corner.”
He also said he considered law enforcement and public safety a “core priority.”
* This week’s Capitol View features talk about the governor’s budget address next Wednesday as well as other stuff. Watch…
Online retail giant Amazon.com is closing a suburban Dallas distribution center and scrapping plans to expand Texas operations after a dispute with the state over millions of dollars in sales taxes, an executive informed employees Thursday in an e-mail obtained by The Associated Press.
Dave Clark, Amazon’s vice president of operations, writes in the e-mail that the center will close April 12 due to Texas’ “unfavorable regulatory climate.” Amazon spokeswoman Mary Osako would not say Thursday how many employees work at the Irving distribution center.
Texas contends Amazon is responsible for sales taxes not collected on online sales in the state. The comptroller’s office last year demanded $269 million in uncollected sales taxes from the company. The case is currently pending before the State Office of Administrative Hearings.
“We regret losing any business in Texas, but our position hasn’t changed: If you have a presence in the state of Texas you are required to pay sales tax, just like any other business that has a presence in Texas,” said Allen Spelce, a spokesman for Texas Comptroller Susan Combs.
A similar tax bill is sitting on Gov. Quinn’s desk.
* I also received a copy of this e-mail yesterday…
The e-mail seemed suspicious as soon as I read it.
“I’m writing with tears in my eyes,” it states.
The writer went on to say that he and his family were in England for a short vacation and were mugged at gunpoint. With money and credit cards stolen, they were at the U.S. embassy and needed help immediately to pay the hotel bill and catch a flight home. […]
On Wednesday, I telephoned [Dean Vallas] to ask him what was going on.
“Someone hacked into my computer and was running a scam using my e-mail address,” he said. “Because I’m working for Gery Chico, I had a list of political contacts in my computer, and that’s how they got your e-mail address.”
“Frankly, I thought the idea of some little English guy robbing me, at 6-foot-7 inches, 230 pounds, sort of funny,” Vallas said with a chuckle.
I wasn’t the first person to call him about the e-mail. At least two of his friends, he said, actually responded to it and asked what they could do to help.
* The Question: What is your “favorite” spam e-mail? Please, do your utmost to keep it clean. Thanks.
Friday, Feb 11, 2011 - Posted by Advertising Department
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* We’ve already talked about how the great budget cutter Chris Christie of New Jersey claims to have done yeoman’s work, but is somehow still facing a $10.5 billion budget deficit in the coming fiscal year, which is only $200 million less than this year’s deficit.
Indiana Gov. Mitch Daniels has a national reputation for being a budget hawk. Moderate Republicans have pinned their hopes on him for 2012. But what has he really cut? Check out this chart from Purdue University.
Daniels took office in January of 2005. Back then, Indiana was spending $11.75 billion. This year, state spending will be $14.45 billion. That’s a 23 percent increase.
* Now, nobody can say that this state has been well-managed. You’d be laughed out of the room if you tried. But last night Gov. Pat Quinn’s office released some documents showing where real spending cuts have been made. $2.4 billion in Fiscal Year 2010 and $1.2 billion in FY11.
I strongly urge you to take a look at those documents. Those are real cuts in discretionary spending. That’s not to say total overall spending decreased by that much. Pay raises, pensions, health care, etc. all contributed to what’s known in the biz as “budgetary pressures.” Other spending has been moved off-budget. But stuff has been cut. Make no mistake about it.
What happens is the media latches onto a meme and just can’t let go. Illinois is the irresponsible state. New Jersey and Indiana are led by real deficit hawks. There is some truth to both statements, but it’s not reality.
Sen. Ron Sandack, a Downers Grove Republican, said it’s not enough for Republicans to say no; they have to offer alternatives. He said there would be two or three proposals in the coming weeks offering hard, but real, alternatives.
It’s heartening to see the minority party offering to step up to the plate. Let’s see what they’ve got, debate it and then have a vote. That’s the way government should run.
* Related…
* Quinn releases budget cut documents ahead of speech
* Bond plan allowing Illinois to borrow $8.75 billion divides legislators
* Lawmakers to target state spending, gun control in fresh session
* State treasurer pushes more venture capital investment
‘Some people just don’t know when their time is up,” I muttered to myself yesterday while watching Egyptian President Hosni Mubarak address his nation.
The media had reported beforehand that Mubarak would abandon his power. His speech said otherwise.
Heck, I thought to myself, even Mayor Daley knew when to quit.
It wasn’t all that long ago when lots of people “in the know” thought Daley would be mayor until he was hauled out of his 5th Floor office feet first. But his magic was no longer working. His parking meter deal destroyed his credibility as a manager. His Olympics bid failure wiped out his reputation as a superior player. He was done, and he knew it. Time to vamoose while the vamoosing was good.
Mubarak’s regime has always justified the civil liberties crackdowns and ever-escalating power grabs by telling the citizenry that they had two choices: Mubarak or those crazy fanatics in the Muslim Brotherhood.
Daley’s apologists played pretty much the same game: It’s either Daley or the city ends up like Detroit. It worked for both men for a very long time.
I don’t want to equate these two people. As much power as he’s had, Daley could never rival Mubarak for complete control. But while the boundaries are far different, the game is basically the same: Position yourself as the “Indispensable Man.”
It’s my guy or chaos.
Almost all truly successful politicians create this aura. Franklin Roosevelt did it so well he was elected to four terms.
Some, maybe even most, were actually indispensable at least part of their time in power. Even Mubarak served his purpose. But if you stick around long enough, the mistakes tend to catch up with you.
And that brings me to Illinois House Speaker Michael Madigan. He’s been one of the most powerful Illinois politicians for decades.
His members re-elect him time and time again because they believe he is their best and only hope for keeping the Republicans at bay. He also had a reputation in many circles for fiscal stewardship.
Madigan’s still quite adept at beating Republicans. He held onto the House during last year’s massive GOP tidal wave despite repeated attacks on him by the media and his Republican nemeses.
But after years of letting too many problems slide, combined with an international economic collapse, Madigan found himself forced to deal with a state budget mess of epic proportions.
While Daley surrendered in similar circumstances, Madigan has seemed to regain his footing. He muscled through an income tax hike which included some very real state spending caps and will force significant budget reforms.
Madigan is talking seriously about reducing pension benefits for current state employees. He’s pushing for some much-needed workers’ compensation changes. He backed some major education reforms. And he scolded his members this week for sponsoring bills which spend money the state simply doesn’t have.
Not to mention that the South Side Irish Catholic helped pass a civil unions bill and another measure to abolish the death penalty.
A whole lot of people disagree with much of what he’s accomplished. But my mantra for the last six years has been: “Always bet on nothing getting done at the Statehouse.”
I based that on Madigan’s refusal to really do much of anything. That’s obviously no longer true.
For now, at least, it looks like he’ll probably avoid Daley’s fate and go out on his own terms, whenever that may be.
* Other stuff…
* A very West Loop inauguration: I later joked that the Speaker often appears so intense that he might actually have the power to steal peoples’ souls.
(T)he poll showed Braun’s support among black voters cut nearly in half since last month — from 39 percent to 20 percent. […]
At the same time, twice as many voters — 44 percent to 22 percent — now view Braun unfavorably than favorably. Three weeks ago, 39 percent liked Braun, compared with 30 percent who disliked her. Among African-Americans, her unfavorability tally jumped to 30 percent from 11 percent. […]
While Emanuel’s favorability rating of 59 percent remained unchanged from a month ago, his unfavorability rose slightly to 16 percent from 13 percent following Chico’s commercials about Emanuel’s tax plan, which Chico has dubbed the “Rahm Tax.” […]
When asked which candidate would pay most attention to neighborhoods they live in, 37 percent said Emanuel, 19 percent said Chico, 11 percent said Braun and 10 percent said del Valle, who has pushed a similar pro-neighborhoods message.
Chico better go hard, hard negative if he wants to make it into a runoff.
…Adding… Related…
* Braun, Chico blister Rahm at debate: Chico said he was “scared for my children” as they traveled back and fourth to pubic schools, but, he said, “Growing up in our city in the Back of the Yards and living with the threat of violence even in my own neighborhood stays with you. There are people like Mr. Emanuel, who grew up in the wealthy North Shore and probably never experienced that.”
* Anything Wrong With This Picture? “Correct me if I am wrong, but I did not think that city employees could use city owned property, i.e. a Streets & San truck, in campaign literature?
