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Overheated rhetoric

Monday, Apr 11, 2011 - Posted by Rich Miller

* The Illinois Municipal League has geared all the way up to stop lawmakers from cutting local revenue sharing. I’ve seen several media reports documenting the push, including this one

Northlake Mayor Jeff Sherwin gets hot under the collar at the idea of the state retaining money that’s traditionally gone to local governments.

“They can’t discipline themselves, so let’s just take it from (local governments),” Sherwin said. “If we have to cancel senior grass cutting and cut police, (state office holders) will face the price at election time.”

That’s quite the range of essential service cuts. Senior grass cutting and coppers.

* Here’s why the locals are so upset. The IML recently published a briefing paper entitled “The End of State-Collected Local Government Revenue?“…

The state budget crisis has reached such an unprecedented level that there is a very real danger that state-collected local government revenues could be reduced or even lost altogether.

I know of no credible person who is talking about eliminating revenue sharing altogether. Nobody. The Senate Republicans have called for a $300 million reduction, but that’s hardly an elimination. Notice that I wrote “credible.” I don’t consider the Illinois Policy Institute to be a credible organization since it can’t seem to get even basic facts straight and won’t correct the record when challenged, but instead lashes out at its critics and accuses them of grand conspiracies, myself included.

But that’s how you fire up your troops. Go for the extremes and point to the most extreme player and make it look like that player is more important than it really is. Sure enough, the IPI’s report was trumped up in the Municipal League’s white paper as if it had tons of Statehouse allies. The IPI has proposed alternative budgets for the last two years running and nobody has sponsored them in the General Assembly. That’s not what you would call a great track record.

The Municipal League’s lobby day is Wednesday. Expect a big turnout.

* Speaking of the locals, some are still angry that Illinois passed a law to stop them from regulating political speech

Thanks to a state law that took effect Jan. 1, local governments no longer can require residents to remove signs within a specific time frame on residential properties.

The measure, signed into law last summer by Gov. Pat Quinn, prohibits any ordinances that establish a time limit and essentially allows residents to keep signs up year-round.

State officials have said the issue is one of free speech. But some local officials complain the state has overreached.

“It’s kind of disconcerting that the legislature stuck its nose into a local issue,” Wheaton City Manager Don Rose said. “Taking down campaign signs seven days after an election certainly seems to be a reasonable regulation that gets rid of all of the clutter around town.”

While unfortunate that candidates haven’t all picked up their signs, the real problem was that the locals had incredibly onerous ordinances about when and where signs could be placed. I always thought that was weird because how could you legally restrict 1st Amendment rights like that?

* Meanwhile, we have this bit of inflammatory rhetoric from AFSCME

State workers and teachers have staged a week long, statewide series of rallies to voice their opposition to legislation that limits collective bargaining for state employees. Hundreds were in Springfield Thursday, where Jeff Bigelow, regional director of AFSCME Council 31, said bills in the Illinois legislature are starting to mirror what’s happening in neighboring states.

“These bills both for education employees and state employees are representative of exactly what’s happening in Wisconsin, exactly what’s happening in Ohio, exactly what’s happening in Indiana,” said Bigelow. “And we’re not going to put up with it.”

What are these bills he speaks of? One of them would be to stop the growth of union representation in state government, which is already at 95 percent representation. It would also eliminate some of the union membership rights of management types who’ve joined AFSCME and other unions.

While I can certainly understand why AFSCME and the impacted members are upset about this proposal, it’s hardly a full-on assault on orgainzed labor’s rights. Yes, it’s the camel’s nose under the tent, or foot in the door, or slippery slope. But taking high-up managers out of the union is hardly something that would rouse Mother Jones from her grave.

More from the story…

“I do not consider this to be even close to what’s happened in Wisconsin,” said Currie. “But I do think it’s important that state government needs to manage its workforce, and there are some work sites in the Department of Transportation where nobody’s in charge because everybody’s a part of the collective bargaining unit.”

But Bigelow says Currie’s bill would go even further. “They’re saying they want to take people out of collective bargaining who currently have it,” he said. “The state’s working now, and it’s working just fine. It’ll work just fine without any further modifications to the law.”

Um, dude, the state is not working “just fine.”

I was raised to believe that all workers are better off in a union and I still believe that and you can’t dissuade me of it, so don’t try. But I never thought I’d see the day when even legislative liaisons were singing “Solidarity Forever” while brandishing their union cards. It’s gotten out of hand. I get why managers and others want to join the union - they’ve been mistreated and not given raises. But shouldn’t there be limits?

* In other news, the Chicago News Cooperative’s subscriber-based publication has folded. From an e-mail…

Dear Reader,

Chicago’s election cycle has finished, so now Early And Often will wrap up. We will no longer update the content on our site, although the content of the site will continue to be available to subscribers. Today is also the last day that we’ll send out the Daily Palm Card.

Early And Often has been a joint effort between Aldertrack, Inc. and the Chicago News Cooperative. The Aldertrack team, Jimm Dispensa and I, had a tremendous time serving you and creating this new, unique news service for Chicago. We also enjoyed working closely with the Chicago News Cooperative and can say without reservation that CNC is one of the best teams of journalists Chicago has ever seen.

I’ll do my best to avoid over-heated rhetoric here, but I never thought their service would work because I never really understood their business model. The subscriptions were based on a single election cycle, not the actual doings of government. Government is how I survive. Campaigns most certainly help, but government is where the subscribers are. Plus, when Rahm Emanuel avoided a runoff, the campaign cycle was radically shortened and their business model was hurt even worse. Also, the Chicago media rarely covers legislative campaigns. They do cover city campaigns, however, including aldermanic races. There was simply no gigantic hole which needed to be filled.

Anyway, I was hoping it would work. Really, I was, mainly because I’ve long thought that a subscriber service was possible for Chicago. I still do. Just not the way they did it. But, nobody asked me.

  15 Comments      


Let’s stick to the FACTS about consumer protections under HB14, the Energy Infrastructure Modernization Act

Monday, Apr 11, 2011 - Posted by Advertising Department

[The following is a paid advertisement.]

Myth: HB14 locks in automatic rate increases without ICC review.

Fact: The ICC will set rates after an annual review and audit of costs. If utilities can’t justify costs, they’ll have to issue refunds to consumers, with interest. There’s nothing “automatic” about that.

Myth: HB14 guts the ICC’s oversight authority and the ability of groups representing consumers to challenge rates.

Fact: HB14 retains the rights that the ICC and interveners have today to challenge utility rates and the burden of proof would still be on utilities to justify rates. And this scrutiny would be more frequent with the annual reviews required by HB14.

Myth: The ICC would have only 45 days to consider a new rate filed by a utility.

Fact: Not true. Under HB14, if the ICC decides to hold hearings, they’d last up to 8 1/2 months. The 45-day period is just the period for the ICC to decide whether to hold hearings to investigate the annual rate filing. This is no different from today’s law.

To learn more about HB14 visit www.smartenergyIL.com

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Question of the day

Monday, Apr 11, 2011 - Posted by Rich Miller

* The Weekly Standard’s Eli Lehrer penned an opinion piece last month entitled “Pensions aren’t the problem”

Illinois’s story offers a lesson to other states looking to rein in employee compensation. Quite simply, pension benefits represent a reasonably small share of overall state spending (3.4 percent in Illinois), not all states have severe long-term funding problems, and state pensions are almost impossible to reform in ways that solve current budget problems. Moreover, there’s a commonsense case that reasonably generous public sector pensions are good public policy. Pensions, in short, aren’t the main cause of state budget problems, and many political leaders trying to bring public sector compensation down ought to focus their attention elsewhere.

What Lehrer fails to grasp is that while employer pension contributions are relatively low in Illinois as a percent of the budget, the unfunded liability and debt are what drive the real costs here. That unfunded liability was caused by two things: 1) The state didn’t make all its payments, and 2) Market forces.

* Anyway, House GOP Leader Tom Cross responded today

Let’s look at the facts. Lehrer claims pension spending in Illinois represents only 3.45% of overall state spending. The facts are that for this year’s budget (FY12) the Illinois House of Representatives recently appropriated $4.2 billion to pay for the cost of pensions, which as a percentage of our General Revenue Funds budget ($33.1 billion) is approximately 13% This is our third largest expenditure, only surpassed by Elementary and Secondary Education and Health Care spending. Not a small sum, and without significant reform will almost double to $8 billion in ten years. […]

Along with the Civic Committee of the Commercial Club of Chicago I am sponsoring Illinois House Bill 149, which allows current employees to keep all benefits earned prior to the date the reforms go into effect and going forward it would offer a menu of benefit changes to our current workforce. It will also provide for level-dollar funding over the next 35 years and reduce the unfunded liability to make our system more stable and financially manageable.

Lehrer then responded to Cross’s proposal, saying he’d vote for it if he was a member of the Illinois House

But I do have one hang-up: it may violate the Illinois Constitution. Here’s Article XIII, Sec. 5: “Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.”

I haven’t studied the case law behind this provision or examined Mr. Cross’ bill in depth but it seems like there would be a very credible court challenge to Mr. Cross’ legislation. In the end, Illinois may do the best by making up for its past underfunding of the pension system by sticking with the helpful changes it has already made, paying the promised benefits and finding cuts in places where they won’t face constitutional challenges.

We’ve seen this argument time and time again. Somebody proposes a pension reform, somebody else says it’s unconstitutional. Illinois’ Constitution can be changed, yet nobody seems to talk about that, not even those who are proposing big changes, including the Civic Committee and the Tribune editorial board.

I asked Leader Cross’ spokesperson if her boss would support a constitutional amendment deleting the pension protection language in the Constitution and was told: “It is Rep. Cross’ intent to let the pension reform working group move forward and offer its suggestions.” Apparently, this is just too hot a subject to touch. I can understand why, so with lots of trepidation…

* The Question: Should a state constitutional amendment be passed to delete the Constitution’s pension protection language? Take the poll and then explain your answer in comments, please. Thanks.


  130 Comments      


The tax hike doesn’t look “temporary” to me so far

Monday, Apr 11, 2011 - Posted by Rich Miller

* My syndicated newspaper column looks at tough budget times still ahead of us

Caterpillar CEO Doug Oberhelman seemed to be under the impression after his meeting with Gov. Pat Quinn last week that the state’s income tax hike actually would expire in four years.

“The tax increase is temporary,” Oberhelman told reporters, who wanted to know how he really felt about the recent tax hike. There’d been much media speculation that the Caterpillar CEO was so unhappy about the tax increase that he might move his company elsewhere.

Oberhelman added that revenue growth will be necessary to fill the state’s budget gap and “it’s going to take some spending cuts,” which, he said, he was confident Gov. Quinn could pull off.

After Oberhelman answered the question, Quinn told reporters that the “income tax is a four-year situation,” and said he wanted to “erase the deficit” during that time.

Technically and legally, the tax hike is temporary. Two income tax hikes have been allowed to expire in Illinois history, so it’s possible that this one will as well.

But the governor used phantom revenues in his most recent budget plan and proposed an increase in state spending, not a decrease.

The Senate Republicans have laid out the problem pretty clearly. And it’s quite grim.

They project the state deficit will be $22.7 billion in five years. I’ve had a problem with those numbers because of some of the assumptions they used. So, I asked them to help me game some additional projections, using what I considered to be more realistic assumptions, and they obliged.

First, toss out the governor’s $8.7 billion borrowing plan to pay past-due bills (which doesn’t look like it can pass this year). Then use House Speaker Michael Madigan’s (relatively low) revenue and spending projections for the coming fiscal year. Then grow state spending by 2 percent a year and project 2 percent annual revenue growth — and let’s see what happens.

What you’d wind up with is a $1.5 billion deficit during the last year that the tax hike is in effect.

But when that tax increase goes away, Illinois will be left with a $5.7 billion deficit. That’s about $1.3 billion higher than the deficit projected for the end of the state’s current fiscal year. Not good at all. Terrible, in fact.

OK, that didn’t work, so let’s try again. How about growing spending by just 1.5 percent a year? You’d wind up with a $524 million deficit during the last year of the allegedly temporary tax hike, but there’d be a $4 billion deficit the very next year, after the tax hike had expired.

Again, that’s about where we are right now. Any claims of budgetary restructuring would be shown to be laughably false.

Last try. Let’s plug in zero spending growth for four years. Illinois would have a $2.5 billion surplus the last year of the tax hike.

Hooray!

A year later, the surplus still would be $1.1 billion, but the state also would have a structural, operating deficit of $1.4 billion, and that deficit would continue to rise from then on out.

Bummer!

Also, zero spending growth may not sound all that difficult to do, until you realize that pension payments, Medicaid and state employee and retiree health care costs all are rising exponentially every year. All that spending would have to be somehow reined in, or other state programs — education, human service and pretty much everything else — would have to be viciously slashed year after year. In five years, things would be very bad indeed.

And considering the cold, hard fact that state legislators as a general rule hate to cut budgets, how can they be expected to keep a tight lid on everything year after year after year after year? They won’t do it. Simple as that.

The bottom line here is that if the governor is serious about putting Illinois on a solid financial footing, he needs to find a lot more revenue and/or make lots more cuts.

Caterpillar’s Oberhelman went out of his way to heap praise on the governor last week. And now Quinn needs to do whatever he can to keep his word.

He obviously doesn’t enjoy cutting the budget, but it has to be done if he hopes to wipe out that deficit by the end of his term.

* Related…

* Could Illinois’ Income Tax Hike Become Permanent?

* Editorial: Clip and save

  46 Comments      


Heartburn and heart-warming

Monday, Apr 11, 2011 - Posted by Rich Miller

* Finke takes a look at a committee hearing that subscribers already know about. ComEd is trying to pass legislation to allow it to lock in rate increases to pay for a massive power delivery system upgrade. Finke has a good take on the hearing

The House Public Utilities Committee held a hearing on the bill last week. The plan was to focus on the economic benefits of the bill, spending on equipment upgrades and the workers needed to install it. For two hours, witness after witness testified about how his or her company would benefit if lawmakers approved the ComEd bill. More money and more workers for companies that do utility construction work.

For virtually that entire time, there was silence from the committee. No skepticism about the jobs and other claims. No nothing.

Then Attorney General Lisa Madigan’s public interest lawyers testified, explaining why they think state lawmakers should move cautiously and not rush into the deal. Suddenly, two committee members — Rep. Mike Bost, R-Murphysboro, and Rep. Dave Winters, R-Shirland — piped up. They began peppering Madigan’s people with questions about why the state should wait and the dangers to the state’s economy if the ComEd bill isn’t passed.

You know, it’s always nice to see people willing to stick up for the big guy.

It’s ComEd’s world. We just live in it.

* Last year on the campaign trail, political newcomer Michelle Mussman described herself as just a “mom on a mission” looking to do good in the Illinois House. But the freshman Democrat appeared to run away from her rhetoric when she ran a bill last week which would cut legislative pay by ten percent

On her campaign website, Mussman says “politicians” are the reason the public doesn’t trust government. “Self-serving politicians have repeatedly abused our trust and misused our tax dollars,” Mussman notes. “Many of us have lost faith in our government and feel that elected officials no longer work for us.”

But, now that she’s one of the politicians, Mussman changed her tune during the debate on the floor. Instead of blaming politicians, she went after another favorite target.

“I don’t think that we get credit for the work that we do,” she told Davis. “The media has painted us in a very bleak picture.”
Clearly, Mussman is a quick learner. Let’s review:

Before you become a politician, other politicians are bad.

After you become a politician, it’s the media’s fault.

* But not everything is so overtly cynical at the Statehouse. Members do try to do some good. For instance, I talked about Rep. Greg Harris’ bill last night on WGN Radio. Harris was outraged at the murder of Paul McCann allegedly by a staffer at a Downstate group home for the developmentally disabled

In testimony before a House panel Thursday, state Rep. Greg Harris outlined a proposal he said would ensure group home residents are better protected.

“They deserve more from us as a state,” Harris said. “I think we as a state failed them.”

The proposal stems from the January death of Paul McCann from injuries he allegedly received at the hands of two workers at a Graywood Foundation group home in Charleston.

Records show the state had evidence of abuse at Graywood facilities for two years, including a death from an attack in 2008.

Dot points

1. Require the Department of Human Services to initiate reviews, and possible revocation, of funding and licensing at institutions where disproportionate claims of abuse or neglect occur.
2. Require assignment of independent monitors or receivers to operate facilities and protect residents where systemic risks of abuse are identified.
3. Require background checks of group home workers when first hired, and every six months.
4. Require families to be able to review documented cases of abuse or neglect, get access to all licensing, inspection and quality assurance documentation, as well as reports of substantiated findings of abuse neglect or exploitation.
5. Give families and residents instructions on how to report abuse.
6. Give residents the patient’s bill of rights.

Harris’ bill is on 3rd Reading in the House. Keep your fingers crossed.

* Heck, even Scott Lee Cohen is keeping promises these days

As candidate for governor, Scott Lee Cohen promised to hold job fairs to help bring down the state’s unemployment rate.

He made good on that promise Saturday.

“I made a promise to the people of Illinois, whether they elected me or not,” he said at Seward Park on the city’s near north side where hundreds of people gathered to meet with recruiters and drop off resumes.

There were small boutiques and large firms like Wal-mart among the recruiters.

One wonders, however, whether Cohen is now gearing up for a run for the state Senate. He said he might when he wasn’t picked to replace Sen. Rickey Hendon.

* But if you want a truly uplifting moment for your day, then make extra sure to read this Sun-Times story about how a former trouble-making kid turned his life around when a teacher turned him on to politics. Apparently, Rahm Emanuel can actually be a pretty good guy.

* Related…

* Cicero officials linked to criminals: Jeff Pesek, 38, president of the Morton High School District 201 board, which oversees several thousand students from Cicero, Berwyn and other suburbs, has been partners in business with admitted wholesale cocaine dealer Enrique “Henry” Rendon, according to court testimony and documents.

* Former public housing tenants honored

* Quinn Honors POWs

* Debra Silverstein ready to answer 50th Ward’s call

* How Cullerton held his seat in 38th while Rice went down in 36th

* Gay candidates win in Evanston, Springfield

* Thousands of pro-union supporters rally downtown for Wis. workers

  17 Comments      


Cullerton all but promises a floor vote for concealed carry

Monday, Apr 11, 2011 - Posted by Rich Miller

* Senate President John Cullerton all but pledged the other day to allow the concealed carry bill to the floor if it passes the House

If concealed carry legislation passes the Illinois House, it may not be dead on arrival in the Illinois Senate.

The measure is expected to come up for a full vote in the House this month. Proponents believe they have more support than ever in that chamber.

Concealed carry has traditionally fared better in the House than the Senate, where Senate President John Cullerton, (D)-Chicago, has assigned bills to the Public Health Committee. The committee, which is heavy with Chicago Democrats, has killed the measures in the past.

Tuesday in Carbondale, Cullerton indicated that even though he is opposed to “people having loaded weapons on them,” he would consider assigning the bill to another committee.

Noting that concealed carry has not fared well in the Public Health committee, Cullerton said, “If it does pass the House, if we have enough folks that want to have a vote on the Senate floor we can have that vote.”

* Meanwhile, gun owner names would stay private under a bill that passed the House on Friday

The proposal would exempt the names of 1.3 million holders of Firearm Owner Identification cards from the state’s Freedom of Information Act.

The measure, House Bill 3500, must still pass the Senate and be signed by Gov. Pat Quinn to be enacted into law. […]

The controversy began when the Associated Press filed a FOIA request for the names of all FOID card-holders. Attorney General Lisa Madigan ruled last month that the names must be made public under the act.

The AP put out a statement saying it routinely requests government documents under FOIA for stories, but did not specify what the information would have been used for.

  16 Comments      


Maps of the day

Monday, Apr 11, 2011 - Posted by Rich Miller

* From Data Pointed via Sully we have population change in visual format…

(C)olor-coded by the change in population density from 2000 to 2010. In urban areas, deep blue indicates that the population doubled (or more), pure red means that everyone left, grey denotes no change, and the intermediate tones represent the spectrum of increases and decreases in-between. Below 5000 residents per square mile, these colors fade with the square root of density towards white, where no people lived in either year. We created these maps from the official U.S. Census 2000 and 2010 block-level population data and boundaries using custom-built cartographic software.

Here’s Chicago metro. Click the pic for a larger image…

Full USA…

* Speaking of population shifts

The trend of immigrants heading directly to American suburbs instead of starting in a major city intensified from 2000 to 2010 – and was one factor in Illinois’ 32.5 percent increase in Hispanic population in that period, according to recently released U.S. Census data. […]

The surge in Illinois’ Hispanic population, from 1.53 million in 2000 to 2.03 million last year, helped sustain the state’s 3.3 percent population growth, U.S. Census data show.

Most of that was in the counties surrounding Chicago’s Cook County. The Hispanic population grew 65 percent in Kane County to the west, more than doubled in Will County to the southwest and more than quadrupled in Kendall, which includes parts of Aurora.

Over the same decade, Chicago and Cook County lost population, and Chicago added only 25,000 more Hispanic residents. [Emphasis added]

* Related…

* Few downstate issues surface at redistricting hearing: “We’re quite sure the population growth in the Chicago suburbs will result in a concentration of districts there, meaning other districts will change in areas with lower population growth,” said Kevin Semlow, Illinois Farm Bureau director of state legislation.

* Chicago Should Ask For A Census Recount

* Senate Redistricting Committee hears testimony: Redistricting Chairman Kwame Raoul (D-Chicago) noted that map-drawing public work stations will soon be made available in both Springfield and Chicago.

* Public to have voice in Illinois redistricting process

* Editorial: Remap process lacking a key step

* Caution needed before we overreach with a 14-4 map

:

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Protected: SUBSCRIBERS ONLY - Supplement to today’s edition and a Statehouse roundup

Monday, Apr 11, 2011 - Posted by Rich Miller

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

Monday, Apr 11, 2011 - Posted by Rich Miller

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