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Cullerton says he hopes to lower corporate tax rate in fall veto session

Tuesday, Jun 14, 2011 - Posted by Rich Miller

* Senate President Cullerton said he met with CME to talk taxes today

In a cellphone interview after an hour-long meeting with CME Group Inc. Executive Chairman Terrence Duffy, Mr. Cullerton said a recent hike in the state’s corporate income tax rate was “bigger than I wanted” and might be adjusted as soon as the Legislature’s fall veto session.

But any cut would have to be “revenue neutral” — offset by revenue from closing corporate “tax loopholes,” Mr. Cullerton said. Or, he added, the rate could be cut if revenue from the recent hike exceed expectations. […]

“We hope we can bring it (the tax rate) down,” Mr. Cullerton said. “We’ll talk with the Republicans to see if we can close the loopholes.”

Added the president, “We in the Senate always wanted to lower the corporate rate….It’s gone higher than we wanted it to go….We’re open to suggestions.”

Closing corporate loopholes always sounds very easy, but it’s definitely not. Those loopholes were put in place by powerful interests. Killing them off means going up against those very same powerful interests.

  21 Comments      


*** UPDATED x1 *** Two Asian-American Dems could challenge each other for US House seat

Tuesday, Jun 14, 2011 - Posted by Rich Miller

*** UPDATE *** Hmmm

John Atkinson, who had been exploring a Democratic House bid from a Chicago area district, suspended his campaign on Tuesday, faced with the prospects of tough primaries in either of the two districts he was considering running from.

“I believe that it is in the best interest of my community and the state for me to suspend my exploratory campaign and support Bill Foster in his effort to become my Congressman in the new 11th Congressional District,” Atkinson said in a statement.

…Adding… From Bill Foster…

“In his words and in his actions, John Atkinson put his principles and his love of country ahead of political considerations, traits that would make him a great public servant. I am very proud and humbled to have his support. I share John’s concerns about job creation and the direction of our nation, particularly Republican efforts to end Medicare as we know it and balance the budget on the backs of Illinois seniors . There is a right way and a wrong way to get our financial house in order, and I look forward to a vigorous debate about these issues with people like John Atkinson at my side,” said Bill Foster.

[ *** End Of Update *** ]
* Not unexpected

Veterans Affairs Assistant Secretary Tammy Duckworth submitted her resignation, the VA confirmed for me on Monday.

One of her options will be to return to the Chicago suburbs to run for a House seat from the new 8th Congressional District and I bet she does. […]

If Duckworth ran for the House again, she would have a much stronger position than the first time around. Her resume is more formidable — since 2006, she has run the Illinois veterans agency and has been one of the top VA officials in Washington — and she would be running from a more Democratic district. […]

There is a potential for a Democratic primary. Former Deputy Illinois Treasurer Raja Krishnamoorthi has already announced he will run. He lost his Democratic primary election for state comptroller in 2010.

* There’s more than just a “potential” for a primary. Krishnamoorthi has already lined up several endorsements, including Cook County Board President Toni Preckwinkle

Krishnamoorthi announced he has the endorsement of Cook County Board President Toni Preckwinkle, State Rep. Jack Franks, DuPage Democratic Party Executive Director Amy Rohrer, Metropolitan Water Reclamation District commissioner Mike Alvarez , and Cook County Board of Review commissioner Larry Rogers Jr.

That’s not a completely killer lineup, of course, but it’s enough to give one pause. Krishnamoorthi has also provided the media with a breakdown of his performance in the new 8th District during last year’s Democratic primary for comptroller. Click here to view it. According to his campaign, Krishnamoorthi scored 62 percent against David Miller in those precincts.

* On to another district

Democrat Bill Foster, announced some fairly impressive endorsements in his comeback bid in the new west suburban 11th District.

Included: former U.S. Sen. Adlai Stevenson III, former Illinois Comptroller Dawn Clark Netsch, state Sen. Linda Holmes, D-Aurora, and state Rep. Linda Chapa La Via, D-Aurora.

And Mr. Foster reports that he’s given to a local food bank the $1,000 campaign donation he received from “Weinergate” figure U.S. Rep. Anthony Weiner. Mr. Foster notes that the donation from the New York Democrat came more than three years ago, but Republicans have been yapping about the money.

* Subscribers found out about this earlier today

Mike Frerichs said he gave a congressional race a lot of thought but has decided to run for re-election to the state Senate.

Frerichs said Monday that he considered a challenge to U.S. Rep. Tim Johnson, R-Urbana, in the new 13th Congressional District that includes Champaign-Urbana, Decatur, most of Springfield, Decatur and parts of Bloomington-Normal.

The marginally Republican district extends all the way to Madison County and the Illinois suburbs in the St. Louis metropolitan area.

“I’ve thought about this and I think I could have a good run for Congress. I think I could spend the next year and a half being a good senator for the area. I think I could also be a good father. But I don’t think I could be all three,” Frerichs said. “So I think I’m going to take a pass at Congress now and concentrate on running for re-election to the state Senate.”

* And Koehler cranks it up a notch

Now that state Sen. Dave Koehler has announced his run for Congress, he’s working quickly to get the nuts and bolts of his operation in place.

When we talked early last week, he was still working to hire a campaign manager, and said most of what he’s spent time on since his announcement has involved having a phone glued to his ear.

The campaign plans a swing through both the Quad Cities and Rockford this week, trying to hit up the other major cities in a district that stretches from central Illinois all the way north to the Wisconsin border.

As for response to his run? “It’s been quite encouraging so far,” he says.

Koehler’s first formal fundraiser for the race also is on the books. It will be June 24 at the Jay Janssen Law Center in Downtown Peoria from 5 to 7 p.m. (C.K.)

* Related…

* Proposal would end pensions of convicted former congressmen, but not Blagojevich

* Redistricting wears on Republican freshmen: A House GOP source, for example, noted that Rep. Adam Kinzinger, 33, would bring “more energy, fundraising ability and a brighter future” to a showdown with the 67-year-old Don Manzullo, who hasn’t had a serious reelection challenge since he was first elected in 1992.

  54 Comments      


Stuck with the dump? Looks like it

Tuesday, Jun 14, 2011 - Posted by Rich Miller

* You probably saw this quote the other day

Wrigley Field is “a dump” that could be a bigger problem than expected for new Chicago Cubs owner Tom Ricketts, according to MLB Network analyst Peter Gammons.

“The problem that (Ricketts) has, and the Ricketts family has a serious issue, is they’re going to have to understand it’s not only rebuilding personnel,” Gammons said Friday on “The Mully and Hanley Show” on WSCR-AM 670. “They got to make that ballpark livable, it’s a dump, Wrigley Field. They’re going to have to spent $200-and-something million on re-renovating Wrigley Field, do what the Boston owners did with Fenway Park. And the investment is far greater than, I think, maybe they realize. That the amount of work that Wrigley Field needs is, there’s a ton of money that has to go into rebuilding that place.”

* Ozzie ain’t a fan of the place, either

The White Sox’s series with the Cubs is two days away, but manager Ozzie Guillen had no problem warming up for his dreaded visit to Wrigley Field.

Guillen emphasized he holds no grudges against the Cubs, their front office, manager Lou Piniella or their fans.

“But one thing about Wrigley Field, I puke every time I go there,” Guillen said Sunday morning. “That’s just to be honest. And if Cub fans don’t like the way I talk about Wrigley Field, it’s just Wrigley Field. I don’t say anything about the fans or anything now. But Wrigley Field, they got to respect my opinion. That’s the way I feel.”

[That above quote is from a couple of years ago, but it still applies.]

* Rick Morrissey claims the new owners want to spruce the place up

Publicly, a reasonable owner would say Wrigley is a charming ballpark in need of loving renovations. Privately, you might hear a reasonable owner utter the word “dump” now and then.

“Obviously, we love Wrigley Field,’’ general manager Jim Hendry said Monday before the Cubs faced the Brewers. “Nobody wants the field to be any different, or the ambiance of the great atmosphere here.

“But I don’t think it’s any secret the plans that Tom and his family have to enlighten the facilities and make it better for fans, but also make it better for the players and more productive for the players. I think that’s going to be taken care of the next few years.’’

The Ricketts family didn’t get many favors from the previous owners, who put about as much effort into keeping up Wrigley as they did into keeping up Stonehenge. There is plenty of work to be done and revenue streams to be explored.

* But here’s the problem. The Ricketts family took on so much debt when they bought the team that they are now in violation of the league’s debt rules

Long one of baseball’s most financially solid franchises, the Cubs find themselves on a list of teams on the wrong side of Major League Baseball’s debt rules.

They are one of nine franchises in violation of MLB’s debt service rules, according to information presented in a confidential briefing at the owners meetings last month and confirmed to the Los Angeles Times by three people familiar with the presentation. […]

With only $120.4 million in guaranteed salaries on the books beyond 2011, the Cubs’ debt issues would not appear to be tied to their roster. By comparison, the Yankees owe $469.3 million to players under contract. The White Sox owe $207.8 million to players.

More likely, the Cubs’ appearance on the list is the result of the financing stipulations between Tom Ricketts and his family and Tribune Co. to assume control of the team in October 2009. The $845 million deal included Wrigley Field and part of Comcast SportsNet Chicago.

In other words, any renovations on that “dump” may have to be paid for in cash. I’m not even sure that outsourcing the remodeling debt to state government (via the Sports Facilities Authority or some such agency) would work.

So, Cub fans, it looks like you’re stuck with the dump.

* By the way, I’ll be at a non-dumpy park on Monday watching my team beat that North Side Triple-A club.

  53 Comments      


Education reform roundup

Tuesday, Jun 14, 2011 - Posted by Rich Miller

* The SJ-R rightfully praises the work put into the new education reform law

The bill signed by Quinn to much fanfare in Chicago on Monday was the product of months of negotiation that involved the state’s teachers unions, education reform groups and lawmakers from both parties. State Sen. Kimberly Lightford, D-Maywood, led the talks.

This is in sharp contrast to recent attempts at education reform in other states, where legislators have vilified unions and, by extension, teachers themselves. In Florida, lawmakers sought to link teacher pay to performance on standardized tests. They didn’t invite teachers to the table as they drafted their bill, causing tremendous public outcry from teachers and parents alike and leading to the bill’s veto by Gov. Charlie Crist.

The governors of Wisconsin and Ohio have drawn battle lines with teachers unions by making wholesale grabs at public employee unions’ collective bargaining rights. Ohio’s reform bill, signed into law in April, imposes a merit pay system for teachers and is being hotly contested.

We wonder how any state can purport to improve its education system without listening to the people who work in classrooms. We also have serious problems with the message these kinds of imposed “reforms” send to aspiring teachers.

All of this makes Illinois’ new reform law remarkable.

* Mayor Emanuel was asked repeatedly by reporters at another event later in the day why the CTU’s president was a no-show at the governor’s big bill-signing ceremony. He said he didn’t know. There was apparently a “scheduling conflict“…

A spokesperson for the Chicago Teachers Union says union president Karen Lewis did not attend the bill-signing ceremony, due to a scheduling conflict.

“This bill is the result of painstaking negotiations. We commend Senator Lightford and Representative Flynn-Curry for leading the way through the process. We look forward to continuing work that will improve schools, smaller class sizes, reducing the focus on standardized testing and equitable funding for all schools throughout the state, ” CTU spokesperson Liz Brown said in a statement.

A different response was given to WBEZ

But notably absent from Monday’s signing ceremony was Chicago Teachers Union President Karen Lewis, who had characterized parts of the bill as an attack on teachers’ collective-bargaining rights. Lewis did not attend the event because she was “busy focusing on the budget” ahead of a special school board meeting Wednesday, said union spokeswoman Liz Brown.

* But not all teachers union leaders were as skeptical

Carpentersville-based Community Unit District 300 relied largely on seniority when it sent out 363 layoff notices earlier this year. But those letters could have ended up in different hands under sweeping education reforms that became law Monday.

Future school layoffs will be based more on performance under the new rules, signed by Gov. Pat Quinn as part of a major package of reforms intended to keep the best teachers in the classroom.

The law also makes it harder for teachers to strike and makes it easier to fire tenured teachers.

“I think in the long run, it’s going to be better for educating kids,” said Jane Russell, president of West Suburban Teachers Union, which covers parts of western Cook and DuPage counties.

* What about that longer school day provision? Progress Illinois takes a look

The CPS school year is made up of 170 classroom instructional days. High schools get 421 minutes or about 7 hours in a school day, while the elementary school day is 354 minutes or 5 hours and 45 minutes long, CPS spokesman Bobby Otter said. The amount of time in the elementary school day is the number being used by Emanuel and the media in reference to the short length of the district’s academic day. According to a 2008 study by the Center for American Progress, that number is indeed the shortest school day amongst the nation’s large urban school districts.

Nationwide, the average number of hours in a school day (not just instructional time) is 6.64 hours, while the average number of days in the school year is 180, according to a schools and staffing survey obtained by Progress Illinois from the U.S. Dept. of Education’s National Center for Educational Statistics. Statewide, the average school day is 6.5 hours and the average school year is 177 days long. Texas has the longest average school day of 7.17 hours, while Florida has the longest school year with 184 school days.

The longer-school-day saga first hit Chicago this year with talks about bringing recess back to CPS elementary schools — which would also lengthen the school day, althought it would not affect instructional hours. Schools currently have the autonomy to determine when, or if, they have recess and breaks.

As for the the teacher’s union, CTU’s spokeswoman Liz Brown said there have been previous discussions about moving teachers’ 45-minute break, now taken at the end of the day, to the middle of the day, which would effectively lengthen the school day although, again, not necessarily instructional hours. While no proposal has been released on what a longer day would look like, Brown said, “It’s all in the implementation. It is tricky. There is a lot of issues — facility, safety, price on after-school programs.”

* But while some of the new law’s focus on Chicago takes effect immediately, other areas will only see change over time

The new law takes effect immediately, but many schools will have to wait until contracts that have been negotiated this summer expire before they feel the effect of the new law.

Matt Vanover, spokesman for the Illinois State Board of Education, said many downstate districts won’t see any changes until at least the 2012-2013 school year, and some may not see any changes until the 2016 school year.

“The part of (the law) that deals with teacher tenure; that’s phased in over a period of years,” said Vanover. “You’ll see some schools begin to implement that in the next couple of years. Each year after that, additional schools would come on board.”

Alton Community Unit School District No. 11 Superintendent David Elson said his district is in the last year of a three-year deal with local teachers. He said he expects to begin negotiating a new contract in October.

“We will (of course) comply with state law as soon as we negotiate a new agreement,” said Elson.

* Even so, Downstate administrators seem enthused

Salem Community High School Superintendent Brad Detering says the legislation makes the bargaining process between the teachers and schools more transparent for the community. “Niether side has the ability to hold things as a bargaining chip, and when you’re required to publicize your last, best offer after an impasse has been declared, I think it gives community members an opportunity to look and see if each side is being realistic,” he says.

The Superintendent also says it gives schools more options to handle sub-par tenure instructors. “No one is going out and looking for someone to dismiss, but if someone isn’t doing their job and not taking care of things, it does create a mechanism for that,” he says. “It also gives an opportunity for teachers who transfer from other districts to reach tenure earlier and also gives non-tenure teachers a chance to obtain tenure after three years if they are excellent.” Detering says the bill was the first collaborative effort between all of the parties involved. He says the only real drawback is some additional record-keeping.

* And education funding remains an issue, of course

The challenge now turns to putting such changes in place amid financial uncertainties and state budget woes, educators caution. Illinois owes public schools $1 billion in unpaid bills. The spending plan for next year would slash $171 million in education funding.

“When you fund education as it should be funded … perhaps it will support the principles of (the law),” said Sen. Kimberly Lightford, D-Maywood, who led negotiations among union leaders, reform groups, policymakers, parents, school managers and rank-and-file teachers.

* Related…

* Making Sense of the CPS Budget Deficit

* Appellate court to rehear case on CPS teacher firings

  14 Comments      


Question of the day

Tuesday, Jun 14, 2011 - Posted by Rich Miller

* Drudge ran this headline yesterday…

The link led to an equally snarky AP story

Illinois is so hard up for money that it’s studying the possibility of selling ads on state license plates.

Yes, woe is us. We are certainly one of a kind in our hopelessness. Or are we? From last year

Texas became the first to sell corporate license plates last November, says Kim Drummond, spokeswoman for My Plates, which produces the plates for the state. Legislators in Illinois and Florida have proposed similar programs, and Virginia is looking at a program of special plates for business fleets registered in the state.

An example

That Texas sponsor would be Freeb!rds World Burrito, in case you’re wondering.

* The Question: What corporations should sponsor Illinois license plates? Explain. And snark is, of course, highly encouraged.

  94 Comments      


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Tuesday, Jun 14, 2011 - Posted by Rich Miller

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Question of the day

Monday, Jun 13, 2011 - Posted by Rich Miller

* As the Rod Blagojevich jurors deliberate, let’s take a peek at Jim Warren’s column about former Mayor Daley

And since I was rushing back to the trial of former Gov. Rod Blagojevich, I asked about him. Mr. Daley is wary of kicking a guy while down, so I got the response I did when he was mayor.

“Cuckoo.”

* The Question: What one word would you use to sum up Rod Blagojevich’s tenure as governor?

  172 Comments      


*** UPDATED x1 *** Stand for Children wins big as CME wants a tax change

Monday, Jun 13, 2011 - Posted by Rich Miller

* Capitol Fax readers have been learning about Stand for Children’s attempt at big-footing Illinois politics since last October. It took the mainstream media months to catch up, even after Stand for Children accumulated and spent huge money during the election, and even as the group’s major issue, education reform, played out at the Statehouse.

Today, Gov. Pat Quinn will sign the education reform bill that probably wouldn’t have even been introduced without the group’s involvement. So, it’s the Tribune’s turn to catch up

As Edelman focused on Illinois last fall, he saw an opportunity. A new state law set to take effect Jan. 1 would for the first time limit the size of political donations, but the window was closing fast.

“I didn’t need a rocket scientist,” Edelman said.

He shook the money tree.

The people who quickly poured big bucks into Stand for Children’s campaign kitty include a Chicago-centric crew of philanthropists whose interests in improving education coincide with a willingness to write big checks. […]

The group didn’t spent it all, and it’s now sitting on about $2.9 million, a significant sum now that the biggest check an individual can write a political action committee is $10,000.

Go read the whole thing.

* Speaking of campaign contributions, the Chicago Mercantile Exchange gave big bucks last year to politicians who turned around and raised the company’s taxes - a move that Merc’s parent company says could force it to leave Illinois

The exchange has donated $1.27 million to Illinois politicians in the last two decades, with almost $500,000 of those campaign contributions coming in the last 1-1/2 years, including: […]

* Two contributions together worth $150,000 to state Democratic Party leader Michael Madigan’s efforts to continue as speaker of the Illinois House.

* A $50,000 donation to Quinn’s general election run last year, after the exchange gave $40,000 to the governor during the Democratic primary campaign.

* CME’s estimates of its state tax liability means it will pay about 5 percent of all new corporate income taxes generated by January’s tax hike. The company certainly has a point about the unfairness of the corporate tax structure here

But in the April interview, Duffy said the tax hike felt like a slap coming right after the company’s investment in Aurora, which created a lot of jobs in the state.

He also noted the state’s tax structure hits some companies harder than others.

A restructuring of the state’s tax law restricted the tax to profit on in-state sales and eliminated property value and payroll size from the formula. The change benefited multinational manufacturers with sales all over the world.

In fact, two-thirds of corporations filing Illinois returns owed no taxes in 2008.

“I’m not suggesting I have the answers,” Duffy said in April. But, he said, it would be better if everybody paid a little.

* And here’s what the company wants

CME Group may not only seek an incentive package. According to sources, the company is considering a request for a change to its industry’s corporate income tax formula. […]

Revising “apportionment rules” in this way would require the approval of the General Assembly. Already, some industries have different rules. For instance, airlines operate under a different tax formula than other transportation companies.

If the changes being considered by CME Group are approved, Illinois’ overall corporate income tax rate of 9.5 percent would remain the same for Chicago’s exchanges. What is subject to that rate would change, in order to lower the company’s tax burden. […]

CME Group is expected to argue that because of the way its business is structured and conducted, the company had the highest effective state and local corporate income tax rate among the top 50 Illinois public companies that paid those taxes in 2010. […]

According to an analysis of public filings obtained by the Tribune, CME Group’s state and local income tax rate was 8.9 percent in 2010. It was the only company in the 8-9 percent range; four companies had a rate between 7 and 8 percent.

* And while we’re on the subject of taxes, Mayor Emanuel says he wants to roll back the city’s head tax

Mayor Rahm Emanuel said today he remains committed to phasing out a corporate employee “head tax” that brings in about $19 million annually to the city.

“I believe it’s a disincentive for companies,” Emanuel said at a news conference to announce United Airlines will be bringing 1,300 more jobs to Chicago. “My goal is — and it will reflect it when I do my budget — that we will roll back a buck a year, so that over my term, it will be the $19 million that is quote unquote raised, will be eliminated.”

*** UPDATE *** Interesting

CME Group Inc. is looking to sell most of the Chicago Board of Trade building, putting one of Chicago’s most iconic structures on the market.

The disclosure comes less than a week after the exchange operator warned it may leave Illinois to avoid an increase in corporate taxes. Yet a CME spokesman said the sale of the Board of Trade building isn’t connected to discussions over a potential move and declined to say whether it would make an exit easier.

The 80-year-old Art Deco building is comprised of three towers and houses the trading floors for agricultural commodities such as corn and wheat and financial derivatives such as interest-rate futures. It was designated as a historic landmark in 1978 and anchors Chicago’s financial district.

CME said it has hired Jones Lang LaSalle Inc. and Holly Duran Real Estate Partners LLC to market the north and south towers, which include the trading floors for agriculture commodities. CME said it would lease back the space it currently occupies in the buildings, including the trading pits.

* Related…

* Education reform bill makes it tougher for teachers to strike, easier to be fired

* Jean-Claude Brizard: A push for longer school days

* Tribune editorial: The leadership gap

* Sun-Times Editorial: U. of I. must be open to kids of all incomes

* Sun-Times Editorial: Now not the time to cut preschool funds

* Editorial: State’s college savings programs fail

* Report: Suburbs spending more on lobbying

* Transit agencies spend big on lobbying at state level, study finds

* Report Maps $140M in City and County Savings

* Controversial O’Hare concession contract poses test for Emanuel - Mayor must support Daley’s selection process or start over

* Chicago’s new transportation chief sets a new course - Klein hopes to drive city toward public transit options

  55 Comments      


Could the gaming bill shrink?

Monday, Jun 13, 2011 - Posted by Rich Miller

* Three stories over the weekend suggest the gaming bill could be lopped off a bit. AP

Senate President John Cullerton has put a hold on the measure as he and other Democrats consider ways to scale it back. That hold stops the clock on the legislation and buys legislators time before an upcoming special session.

* But scaling it back won’t be easy

If Quinn amends the bill, the House and Senate must approve his changes. But removing proposed sites in Chicago, Rockford, Danville, the south suburbs or Park City, or dropping the racing components, would reverse support from lawmakers representing those interests.

“I control the bill. I’m the only one who can call the bill, and I’m the only one who moves the bill,” said state Sen. Terry Link (D-Waukegan), whose district includes Park City. “Do you really think I would allow the bill to move forward without mine being in it?”

Multiply Link’s stance by 95—the number of lawmakers who voted for the bill — and you can understand how changes could sink it. It received the bare minimum 30 votes to advance from the Senate.

Link said he plans to meet with Quinn in the next few weeks to discuss the possibility of follow-up legislation to address Quinn’s concerns. The goal would be to convince Quinn to sign the bill on the condition a follow-up bill might later scale down the scope.

* And the House sponsor isn’t all that excited about reducing it

State senators are looking for ways to shrink the size of a major casino expansion lawmakers just approved in the hopes of avoiding a veto by Democratic Gov. Pat Quinn, who fears too much gambling is packed into the plan.

The gambit faces two significant challenges. It’s unclear how much lawmakers would have to cut out to pass muster with the governor. And the gambling deal had so many pieces to satisfy so many interest groups, removing one could send the whole thing toppling down. […]

Rep. Lou Lang, a Skokie Democrat who sponsored the measure in the House, said he was surprised to hear his colleagues were considering changes when Quinn has yet to weigh in with specifics about what he would sign off on and what he wouldn’t.

Lang said it’s “premature” to start nixing parts of the plan, noting that negotiating such a large deal requires weighing many interests. He said peeling away some portions in an attempt to bring Quinn on board could put the whole thing in danger.

“I’ve been working on this bill for 20 years, and I finally found the right combination,” Lang said. “If slots at tracks come off, you can’t pass the bill. If the money for downstate agriculture comes off, you can’t pass the bill. If you take out casinos for Danville and Rockford, it might damage the ability to pass the bill.”

* Related…

* Gambling package hinges on Quinn decision: “I wouldn’t have voted for it if it didn’t have slots at the racetracks,” Poe said. “I’ve got an agricultural background. It’s a lot bigger business than people realize. There’s a lot of jobs that surround horseracing. We’re just losing that industry. In that main gaming bill, excluding the fairgrounds, there’s a lot of money going to (university) extension (programs), water conservation. There’s a lot going to rehabilitate 4-H, county fairs. I think that brought a lot of downstaters onboard that wouldn’t have been with that. I don’t think it would have passed without that.”

* Churchill urges customers to push slots in IL

* How casinos can be a boon-or bust-for local economies

  26 Comments      


“See you in July”

Monday, Jun 13, 2011 - Posted by Rich Miller

* If you’ve been wondering what’s really going on with this potential special session, read my latest syndicated newspaper column

Illinois Senate President John Cullerton says he had a simple message for House Republican Leader Tom Cross in the waning hours of the spring legislative session: “See you in July.”

As you probably know by now, Cullerton’s Senate voted to add $430 million to the House’s austere state spending plan. The Senate initially wanted to spend a billion dollars more than the House, but many of Cullerton’s Democratic members demanded that they at least get something, so they came up with a list totaling $430 million.

House Speaker Michael Madigan couldn’t agree to the additional spending unless Leader Cross also signed off because the two had decided months earlier to stand together on the budget. Cross said he wouldn’t agree to the additional Senate spending, even though Cullerton said he’d found a way to pay for it.

So, Cullerton tacked his member requests onto the capital plan bill, which also contains road construction money. The House refused to agree to the amendment and Speaker Madigan announced that he wanted to appoint a conference committee to work out a deal over the summer.

No dice, said Cullerton. The Senate has no intention of acting on Madigan’s request and wants a new bill, he said. Cullerton could be voted down by the other three caucuses in a conference committee, so that idea is out, he said.

And despite claims by House leaders in both parties that the administration can spend money approved this fiscal year on projects next fiscal year because the state’s “lapse period” was extended out to six months, Cullerton believes that lots of road construction will stop very soon.

“They have the money,” Cullerton explained, “but they have no authority to spend it.”

Gov. Pat Quinn agrees with Cullerton, saying all construction work will have to start shutting down after June 17.

Quinn has said that a special session may have to be held sometime soon to work out this problem, or, as Cullerton put it, “The second largest road construction season in the history of Illinois will come to a halt.”

“I won’t be forcing a special session,” Cullerton said. “The road builders will.”

Cullerton promised to reduce his caucus’ budgetary add-on demand from $430 million down to $280 million. He said he’s backing away from $150 million for the General State Aid program for schools. The House’s budget keeps the official school spending level the same, Cullerton explained, but it deliberately under-funded the program by $150 million. The Legislature can come back in January and add back that cash, he said.

But how will he pay for these budget requests? Well, the Senate President said he purposely left out at least $280 million in what are known as “trouts” from the budget implementation bill to fund the increased spending he wants.

This may seem complicated, but it’s not, so stay with me.

Transfers out, or “trouts” as they’re more commonly called, are inserted into the budget implementation bill every year to transfer cash from the state’s bank account into special funds. They’re done almost as a matter of course, but Cullerton decided to short some of the trouts this year to pay for his members’ requests. But the House Republicans wouldn’t go along with the plan and that’s when Cullerton made his comment about seeing Leader Cross in July.

Cullerton also more than hinted that he plans to reintroduce his dollar a pack tax hike on cigarettes to help pay for the capital plan when the General Assembly returns — a proposal that has so far been rejected by the other three leaders.

As I write this, he’s also preparing to demand that both chambers come back to Springfield to pass a new legislative furlough plan. The Senate introduced a 12-day furlough plan, but never passed it. The House passed an identical proposal, but it’s still sitting in the Senate awaiting action.

The House, for its part, wants the Senate to come back to town on its own, back off its demand for that extra program spending and then pass the furlough bill that the House already approved. But several members of the Senate President’s Democratic caucus are itching for a fight over that extra spending, as is the governor.

For right now anyway, nobody is backing down and I’m not making any vacation plans.

* Related…

* Road builders already see effects of capital-bill impasse: Mike Sturino, president of the Illinois Road and Transportation Builders Association, said contractors have been notified by the state not to start work on projects on which bids were approved April 29.

* Finke: Lislators set to begin work on capital bill

* They’ll be back: It’s a dangerous game the Senate Democrats are playing. If they insist on pursuing the additional cash and the House doesn’t concur, they could be facing serious backlash for putting tens of thousands of laborers out of work.

  17 Comments      


Today’s must-read

Monday, Jun 13, 2011 - Posted by Rich Miller

* Unions have gotten the blame for the high costs at McCormick Place. But they’ve never been the real problem. It’s mostly about the contractors and the associations. Crain’s explains why

Average drayage rates at Orlando and Las Vegas convention centers are 42% and 51% lower than McCormick Place, respectively, according to a 2009 Tradeshow Week survey. GES and Freeman say one reason is that labor costs are lower in those cities, but drayage is also 38% cheaper at the Donald E. Stephens Convention Center in Rosemont, which operates under the same labor agreements as McCormick Place.

The Stephens center uses an in-house contractor, Rosemont Exposition Services, to manage its freight.

Show management — the trade associations that stage conventions — also make good on the exhibitors’ nickel. McCormick Place leases floor space to the associations at $1.30 to $1.80 per square foot.

But associations charge exhibitors $20 to $40 per square foot. A show with 300,000 square feet of exhibitor space would pay McCormick Place up to $540,000 but collect $12 million from exhibitors — a better-than-2,000% markup. […]

In its exhibitor kit for the Digestive Disease Week Show in April, Freeman misleadingly implied exhibitors didn’t have a choice. “As the official service contractor, electrical installations must be performed by Freeman union labor,” the document reads.

Neither Freeman nor the critical-care association bothered to tell Ms. Canavan she had a choice. She saved money by choosing ETS but only after McCormick Place called to say she had that option.

There’s more. Much more. Go read the whole thing.

  19 Comments      


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