Capitol Fax.com - Your Illinois News Radar » 2011 » September
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Reports: Obama expected to propose aiding state and local budgets

Wednesday, Sep 7, 2011 - Posted by Rich Miller

* The Financial Times (among others) reports that President Obama’s speech tomorrow will include a proposal for increased federal aid to hard-hit state and local budgets

According to people who have been studying the White House’s possible options, Mr Obama’s proposal is also likely to include measures that would directly boost cash-strapped states and local governments. States and municipalities this year have been forced to slash employees, including public school teachers and police, dragging down national job creation figures. Depending on its structure, an infusion of funds from the federal government could help prevent some of those lay-offs.

* US News & World Report looks at the numbers

The August jobs report shows that the 17,000 public sector job losses last month completely wiped out the private sector’s 17,000 job gains. Since the end of the recession, government employment–including federal, state, and local jobs–has fallen by roughly 600,000. State and local governments have particularly felt the pain, according to a report released this week by the Census Bureau, which shows that there were over 200,000 fewer state and local government jobs in 2010 than in 2009. Outplacement firm Challenger, Gray, and Christmas also reported this week that, while U.S. layoffs on the whole slowed last month, public-sector layoffs accelerated, from 9,389 in July to 18,426 in August. […]

Behind those government job losses are budget cuts, particularly from states and local governments, many of which have lost revenues as lower incomes and lower property values lead to lower tax income. Those budget cuts mean fewer government contracts, which also leads to pain in the private sector. The winding down of the stimulus package also contributed to these losses, as federal assistance to state governments for things like extra Medicaid funding has disappeared, leaving many states with substantial budget gaps.

* But the National Journal says Obama’s idea is a no-go

Aid to state and local governments would by far be the most stimulative action, but since that would lead directly to an expansion of government payrolls, it doesn’t have a prayer of passing the House.

…Adding… Roundup…

* Regional superintendents say jobs are necessary

* Illinois Perry, Romney backers clash on Republican primary vote

* IL GOP State Central Committee Meeting: Sound and Fury Signifying No Changes

* Illinois GOP rejects delegate selection plan in victory for Romney

* Illinois Orders Plant in Latino Neighborhood to Curb Emissions

* Will Co. sales tax consultant fights RTA, Chicago suits

* MetroLINK transit facility going up in Rock Island

* Preckwinkle seeks to loosen Cook County purchasing rules

  23 Comments      


So, what’s he up to?

Wednesday, Sep 7, 2011 - Posted by Rich Miller

* There are lots and lots of theories about what Gov. Pat Quinn is “really” up to with his threat to close facilities and lay off thousands of state workers. This is the governor’s explanation

“Our state won’t have enough money to get through the fiscal year, so we have to make reductions,” Quinn said. “I’m prepared to do what has to be done.”

That’s not a new concept. Senate President John Cullerton has been warning about the inadequacies of this budget for months

“(T)he Senate president has warned for months that there are shortcomings in the current budget that will need to be addressed either during the fall session or early next year,” a statement noted.

And Sen. Gary Forby admitted the GA voted for a flawed plan

“I knew the money would be short,” Forby said. “We passed a flawed budget.”

But not all Senate Democrats are sending the same message

Sen. John Sullivan, a member of the Democratic leadership team, denied Quinn’s claim that legislators have given him no choice but to make deep cuts.

“We did not pass the budget with the assumption that it would require layoffs and closures, that’s for certain,” said Sullivan, D-Rushville.

* And not everybody is convinced that Quinn’s threats are completely real. The governor’s credibility being what it is, many have their doubts. For instance

“That number, I’m sure, is inflated for dramatic affect by the governor,” said State Sen. Matt Murphy (R-Palatine). “What he may be trying to do here is use political pressure to get more support for his $9 billion borrowing plan, which we think is unconscionable.”

Ouch

“These latest announcements are in the same spirit of former Governor Blagojevich — float some scary scenarios without many details, then take them off the table before they even get any air,” [Sara Wojcicki, spokeswoman for House Minority Leader Tom Cross] said.

* Sen. Bill Brady laid out why so few trust Quinn’s word

“Once again, Gov. Quinn is betraying the citizens of Illinois and proving that his word is suspect,” Brady said in a prepared statement. “First, he promises to veto any tax hike that raises the income tax more than 33 percent, and he signs a tax increase double the size. He promises in a campaign deal there will be no layoffs or closure of any state facilities, and now we see that he is going back on that agreement with the state’s largest public sector union. He is using state employees as pawns in this political game.”

* So, now what? Some Republicans are open to using “excess” state revenues to keep the facilities open and prevent layoffs, even though the House Speaker and the House GOP Leader have decreed that those revenues should be targeted at overdue state bills

[Rep. Jim Watson (R-Jacksonville)] said he might be open to using excess revenue to keep facilities open.

“I don’t have a hard-line thing,” he said.

Sen. Larry Bomke, R-Springfield, said Quinn is probably just setting the stage for a vote during the veto session to spend more money.

“He’s right, there isn’t enough money in the budget. I would consider it, but I would want to know what revenue looks like at that point,” Bomke said.

Both of those Republican legislators have lots of state workers in their districts, of course. Democratic state Sen. Mike Jacobs said those districts ought to be targeted

State Sen. Mike Jacobs, D-East Moline, suggested that Quinn, a Democrat from Chicago, shutter facilities in districts held by GOP lawmakers.

“I would hope that the governor would look at things like who has supported him on key issues,” Jacobs said.

…Adding… I forgot to post this earlier, but it’s well worth a watch. Sens. Donne Trotter and Kirk Dillard were on Chicago Tonight last night to discuss this topic

  41 Comments      


What happens if Quinn follows through with his threats?

Wednesday, Sep 7, 2011 - Posted by Rich Miller

* Illinois Statehouse News outlines the future if Gov. Pat Quinn follows through on his plan to shutter state facilities

Once Quinn announces what he plans to cut, the State Facilities Closure Act kicks in. He must file an official notice with the Legislature’s Commission on Government Forecasting and Accountability, or COGFA, within two days.

If Quinn targets a prison, school, developmental center or a residential center owned by the state Department of Veterans Affairs, the governor also must submit a plan that details how he will close the facility within 30 days.

Once the governor submits this plan, COGFA will hold at least one public hearing and a 30-day “public comment period.”

After the public hearings and public comment time ends, COGFA then votes on the governor’s recommendation.

It’s unclear if that vote would prevent the governor from acting.

“You would hear strong arguments on both sides,” said COGFA’s revenue manager Jim Muschinske.

* Then there’s the problem of prison overcrowding

Illinois’ 27 prisons hold about 49,000 inmates, according to the Illinois Department of Corrections. If Quinn closes one of the state’s smaller facilities, each of which hold about 1,200 inmates, those prisoners would have to be housed in other facilities.

Prisons in the state initially were were built to hold 33,373 inmates. Corrections officials, however, switched how they determine that number by counting the number of beds a prison can hold instead of the number of cells. By doing so, the corrections officials could show that the facilities were technically not overcrowded.

Inmates have 34 square feet of living space, or slightly more space that one finds in a typical bathroom, according to the state Department of Corrections. Closing a prison could cause that square footage to get even smaller by putting more prisoners in crowded facilities.

John Maki, executive director of the John Howard Association of Illinois, a prison watchdog group, has toured many of the prisons in the state.

“I don’t see how you close a facility without severely overcrowding the system,” Maki said. “They can keep on putting beds in there, and if that’s their yardstick, they have some more room to go. But in terms of what these prisons were designed to hold, they’re way beyond that.”

* None of these closures will happen overnight. And some of the layoffs might be prevented

Logistically, any move to close state facilities could easily take a year or longer because the General Assembly strengthened its oversight role after former Gov. Rod Blagojevich’s thwarted attempts to close prisons in Vandalia and Pontiac.

AFSCME also has had success in blocking mass layoffs through the courts. The union convinced a Downstate judge to throw out Quinn’s efforts to lay off 2,600 state workers in 2009.

And

Quinn’s office must give workers at least 30 days notice of pending layoffs.

  12 Comments      


Bad news and some good news

Wednesday, Sep 7, 2011 - Posted by Rich Miller

* Companies that plan to lay off lots of workers are required to notify the state. The most recent report isn’t great

Nearly 2,300 workers at a dozen companies in Illinois will lose their jobs over the next several weeks, employers informed the state of Illlinois last month.

An August report released by the Illinois Department of Commerce and Economic Opportunity shows that among the job cuts the state was notified of are 628 workers at Chicago Restaurant Partners, 497 workers at UTI Integrated Logistics, a general warehousing and storage company based in Edwardsville; 200 workers at Buske Lines Inc., a general freight trucking company also of Edwardsville; and 194 workers at Lowe’s Home Centers.

* About 800 of those jobs aren’t disappearing forever

Fortune Brands Inc., for instance, said that technically it is eliminating 81 jobs as part of a reorganization. The company is splitting itself into a liquor company called Beam Inc. and a home/security company called Fortune Brands Home & Security. But a spokesperson said most of the workers, largely corporate staff, have been offered jobs by the Home & Security spinoff.

Likewise, a local joint venture between Chicago-based Levy Restaurants, Phil Stefani Signature Restaurants and Airport Restaurant Management, said it will lay off 628 workers because it recently lost a long-held contract to supply food concession services at McCormick Place convention center.

But Annemarie Strassel, spokesperson for Unite Here Local 1, which represents the workers, said the new contractor, a West Conshohocken, PA-based company called Savor, has agreed to rehire them and assume the contract, which will be renegotiated.

* And not every company has solid layoff plans

Buske Lines Inc., a trucking company also based in Edwardsville said it will “possibly” lay off 200 workers as a result of a corporate buyout.

* But not all of today’s job news was bad

Mayor Rahm Emanuel affirmed his commitment to bring more jobs to the Windy City as he joined the head of SeatonCorp in announcing 400 new jobs being created at its Chicago headquarters.

Emanuel said Chicago provides the perfect place for companies to expand and hire more people.

It’s no secret a lot of people are looking for work, but the head of SeatonCorp said the news is not all bad: The company is one of the fastest growing in the country and is adding 400 jobs to its Chicago headquarters.

* Meanwhile, state revenues are up, while federal income is down

State-source tax revenue grew by more than $530 million last month over August 2010 figures […]

COGFA… reported Tuesday that overall revenue to the state was up 11.3 percent or $223 million last month. But while state-source revenue grew by about 32 percent, federal revenue was down $264 million or 66 percent from a year earlier

Personal income tax revenue grew by 68.2 percent last month and the corporate income tax was up by 93 percent. Both figures are greater than the 67 percent income tax increases enacted in January.

State sales tax revenue also was up by 11.7 percent.

Through two months of the new fiscal year, personal income taxes are up $825 million, sales taxes are up $128 million and corporate income taxes have risen $34 million.

So far, the state is well ahead of its revenue projections for the fiscal year, but it’s far too early to tell how this will all shake out.

The full COGFA report is here.

* Related…

* ComEd takes more heat, lays out improvement plan at Glenview meeting

* Emanuel plans to offer paid maternity leave to city employees

* IDOT reps showcase area road projects

  9 Comments      


Yes, I’m alive

Wednesday, Sep 7, 2011 - Posted by Rich Miller

* I wasn’t feeling well this morning. Better now. Back with a post in a few.

  Comments Off      


Caption contest!

Wednesday, Sep 7, 2011 - Posted by Rich Miller

* The most recent contest winner is coming over this Friday night for a cookout. Lots of the Illinois “Who’s Who” will also be there. Today’s winner will be offered the same opportunity…

Keep it clean, people. Thanks.

  146 Comments      


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

Wednesday, Sep 7, 2011 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

  Comments Off      


« NEWER POSTS PREVIOUS POSTS »
* Showcasing The Retailers Who Make Illinois Work
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller