* House GOP Leader Tom Cross pretty much just guaranteed himself a big headline in the Tribune tomorrow. From a press release…
In response to a series of news reports in the Chicago Tribune on WGN-TV this week, uncovering huge pension hikes under the guise of public service, House Republican Leader Tom Cross will file a bill today that will end this practice in the future. […]
In 1991, as part of an omnibus pension bill, Chicago city workers were given the ability to leave their city job, go work for their labor union at a much higher salary and continue paying into their city pension at the same rate as they did when they were at the city. However, when they retire, they are collecting their pension at a much higher rate.
For example, a Chicago city worker making $40,000 could leave his or her city job and go work for a labor union at a $100,000. Under current state law, the former city worker could continue paying into the city pension according to his or her salary when he or she left—but upon retirement; the pension benefit will be figured according to the non-government $100,000 salary. […]
The Chicago Tribune and WGN-TV estimates that due to this perk 23 retired high level union officials stand to make a combined total of about $56 million from their public pension. Taxpayers will be forced to pay the majority of this bill as it was never adequately paid for.
According to the Civic Committee, the City of Chicago Municipal and Laborer’s Pension Funds will be depleted of their assets within 20 years.
“We are also further researching the possibility of legislation that fraudulent activity dealing with pension eligibility is properly enforced. This practice is already illegal under Illinois statute and my office is looking to ensure that any violators of this provision are properly punished for their actions,” said Cross.
*** UPDATE *** Statement from Jorge Ramirez, President of the Chicago Federation of Labor…
The Chicago Federation of Labor takes very seriously any situation that undermines the stability of public pension funds. Public pensions provide a safety net that allows public servants like nurses, fire fighters, teachers and others to retire with dignity after years of service. In Illinois, the average retired public employee collects a modest pension of just $32,000, and 80 percent of them do not get Social Security.
The individual cases described by the Chicago Tribune and WGN are not the cause of the state’s pension crisis. However, at a time when public employees and their benefits are under attack by those who want to strip away their retirement security, we should work to protect the integrity of the pension system.
The Chicago Federation of Labor and the entire labor movement continue to fight to protect the retirement security of our state, city and county workers. We will work with lawmakers to collectively address this issue and to further strengthen the retirement security for public employees and all working people.
[ *** End Of Update *** ]
* This opposition to some long overdue work on the Statehouse doesn’t make a whole lot of sense…
The Illinois Campaign for Political Reform says when the state is having trouble paying its bills, renovating the entire capitol instead of fixing just what is necessary sends the wrong message.
“Jobs could be saved, jobs could be created with this amount of money,” said Brian Gladstein of the Campaign for Political Reform. “If there’s a question about there about money being used to fix up their own house and not fix up the state, I think that people should be asking questions.”
“Why now? Is this what we need at this moment?” said Gladstein.
Um, Brian, unless they’re using magical faeries to do all the work (and I highly doubt it) jobs will be saved and created with this quite large construction project.
* Remember when the New York Times “reported” this weirdness the other day?…
Facing a budget deficit exceeding $11 billion, the State of Illinois in recent weeks has begun challenging the property tax exemptions of some of its best-known hospitals, saying they should pay more because they are not providing enough charity care.
We’ve already talked about why this was such a bogus lede. And now, the state is taking a pause from the pursuit…
A spokesman for the Illinois Hospital Association says the group is looking forward to working with Gov. Pat Quinn’s administration and other parties on a legislative solution on tax exemptions for nonprofit hospitals.
Quinn is directing state officials to pause their tougher rulings of which nonprofit hospitals get property tax exemptions.
Last month, the Illinois Department of Revenue denied tax exemptions to three hospitals. That signaled the state would get tough on hospitals it believes are operating more like businesses than charities.
Quinn’s move is intended to create breathing room during talks on new legislation that would clearly define how much charity care hospitals need to do to qualify for tax-exempt status.
In case you’re wondering, the IHA contributed $200K to Quinn last year.
* Cicero Town President Larry Dominick got whacked pretty hard this week in the Sun-Times…
How can you engage in a sex act without touching?
Cicero Town President Larry Dominick just may have the answer.
In a deposition in a court case in March 2009, Dominick was asked if he had ever touched Sharon Starzyk, the woman who ran the town’s animal shelter.
“No,” Dominick replied under oath.
In a deposition in a separate court case in February this year, though, Dominick testified under oath he would visit Starzyk’s home starting in 2005 when he was town president and “play with her dog and eat there and once in a while whatever came up sexually.”
* Dominick’s response…
The Chicago Sun-Times newspaper is determined to go down in history as one of the most irresponsible, unprofessional and politically vicious publications in journalism.
In its political campaign to libel Cicero Town President Larry Dominick, and assist the campaigns of his political enemies, the Sun-Times has taken one sentence out of obvious context and turned it into one of the most ridiculous “scandals” ever published.
The story is maliciously headlined “Cicero’s Dominick swore he didn’t touch town worker - but had sex with her,” (Wednesday, Sept. 21). To justify this outrageous lie, the Sun-Times took six words on Page 193 of a 2009 depositio n that consists of 363 pages and 77,666 words and intentionally distorts it’s obvious meaning into malicious yellow journalism.
In the prior 192 pages, President Dominick was asked repeatedly if he sexually harassed employees and he repeatedly denied each and every false accusation. There is not one piece of evidence, not one corroborating witness, not one text message and not one record to back up the spurious claims that he sexually harassed Sharon Starzyk, a person with whom he once had a relationship but broke up with and later married his wife. The context of the discussion and question is clear.
Yet the Sun-Times ignored that context to distort the meaning of the question, “Did you ever touch Sharon Starzyk?” The context is not of touching but sexually harassing someone. He said “No.”
Sharon Starzyk is a serial litigator. She filed numerous lawsuits and criminal complaints against many people outside of her work at the Town of Cicero, including alleging sexual harassment. That is what she does.
Harsh.
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Question of the day
Thursday, Sep 22, 2011 - Posted by Rich Miller
* In your opinion, who is Illinois’ most promising rising political star? Explain.
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* 9:59 am - Considering that their lawsuit was so quickly knocked down in the lower court, and considering that the veto session is just around the corner, this is probably a wise move. From a press release…
The Illinois Association of Regional Superintendents of Schools, representing regional offices of education and intermediate service centers in Illinois, today issued the following statement on an appeal of a lawsuit challenging Gov. Pat Quinn’s cut of their funding in the current state budget:
“Regional superintendents of schools have decided not to pursue an appeal of the Aug. 26 Sangamon County court decision that denied us immediate restoration of our pay. As we said at the time of the ruling, we are disappointed in the outcome and are not dissuaded in our belief that this is an unfair situation and should not continue. However, we respect the court’s decision and believe it’s time now to focus on the next step.
“Our members are working right now to educate legislators about all the services we provide and good work we do for our school system and taxpayers. We are building the support necessary for a responsible solution that restores our state funding. Even as the personal hardships grow without receiving a paycheck, regional superintendents are resolved to both follow through on the duties we were elected to perform and show our value to legislators, who will be asked to stand with us in the upcoming fall veto session.”
They’ll probably get their override.
Also, in case you’re wondering why the state can shaft the superintendents while five Cook County commissioners are probably right when they say their furloughs are illegal, well, they fall under a different set of laws. The same goes for judges, who forced the state to pay their cost of living adjustments a few years ago. Their compensation is guaranteed in the state’s Constitution.
*** UPDATE *** And the override movement begins. From a press release…
Illinois State Senators Gary Forby (D-Benton) and John Sullivan (D-Rushville) are calling on legislators to take action and override the governor’s veto to education transportation funding and the regional offices of education when they return for fall veto session beginning October 25. As members of the Senate Democratic Downstate Caucus, Forby and Sullivan issued a letter to their Senate colleagues highlighting the unfair burden and impact these vetoes will have on rural Illinois school districts.
After months of negotiations, the General Assembly reached and passed a budget compromise for Fiscal Year 2012 that reduced state spending by over $1 billion. This budget was then sent to the governor’s desk where he cut school transportation funding by an additional $89 million, or 30 percent, and eliminated another $11 million from the Regional Offices of Education (ROEs), which includes funding for 44 superintendents and about 40 assistants. Forby and Sullivan are quick to point out that schools’ transportation budgets are already strained because this same line item was already cut last year by a third, which cover school districts’ costs for transporting students to-and-from school and pay for fuel and maintenance costs.
“Transportation funding is vital here in Southern Illinois,” Senator Forby said. “Our school districts downstate will be crushed with the loss of these funds. Money that could have been put back into the classroom will have to go towards transportation costs and that’s not something that a lot of schools in my district can afford to take on. I hope legislators will realize the importance of this issue and override the governor’s veto when we go back in session.”
Forby and Sullivan, members of the Senate Democratic Downstate Caucus, argue that the governor’s veto will put an unfair burden on the downstate and rural districts, where students need to travel many miles to get to school.
“Some bus routes in rural school districts in western Illinois cover hundreds of miles, and when you slash their budget, it’s not like they can just stop picking up students,” Senator Sullivan said. “I supported a budget that made fair and equitable cuts across the board, and with many downstate school districts still coping with the massive cuts delivered just last year, I cannot support this additional cut that so disproportionately disadvantages downstate Illinois. I encourage my colleagues to stand with Senator Forby and I in restoring funding to school transportation budgets.”
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We’re number one!
Thursday, Sep 22, 2011 - Posted by Rich Miller
* Every time I go to Chicago it seems like the expressway traffic is worse than my last visit, no matter what time of day I drive…
Chicago’s Circle Interchange, the notorious traffic-clogged junction where the Eisenhower, Kennedy and Dan Ryan Expressways merge near downtown, ranked as the No. 1 bottleneck for truck traffic in the U.S. in a new report released Wednesday.
Interstate Highway 65 at I-80 in Gary was close behind on the list, in the No. 6 spot in the report highlighting the 250 most-congested highway locations by the American Transportation Research Institute and the Federal Highway Administration.
The Kennedy-Edens Expressway junction on the North Side of Chicago came in at No. 8 in the northbound direction and No. 32 for southbound travel.
At No. 45 was the Interstate Highway 290 extension where it meets the Veterans Memorial Tollway (Interstate Highway 355).
Three of the top five highways on the congestion index were in Houston.
* Meanwhile, Sam trashed dozens of newspapers, but he’s still number one…
Even though his wealth slipped by $300 million, Sam Zell, with a net worth of $4.7 billion, is still Chicago’s richest person, based on Forbes magazine’s list of the 400 richest Americans released Wednesday.
Zell, ranked 66th, was among 18 in the Chicago area to make the list. Oprah Winfrey, who broadcast her last TV show here earlier this year, ranked second locally and 139th nationally at $2.7 billion. That was well ahead of newcomer Groupon co-founder Eric Lefkofsky, ranked 293rd with a net worth of $1.5 billion.
* And, to read the media coverage, these five politicians should be on a “Number One” list for ridiculousness…
During a year when many unionized Cook County workers are taking 10 unpaid days off to help balance the budget, five commissioners are refusing to do so.
The commissioners, who make $85,000 a year, have asked the county comptroller for their money back instead of taking what officials say would amount to a 4.8 percent pay cut.
“I am requesting that any and all monies deducted from my salary due to furlough or shut down days be reimbursed to me,” Commissioner Joan Murphy, D-Crestwood, wrote in a letter dated July 27.
Murphy declined comment Wednesday. But the group, which also includes Commissioners Earlean Collins, Robert Steele, William Beavers, and Deborah Sims, points to a longstanding state law that says elected officials cannot be forced to take pay cuts during the middle of their terms.
Yet, they do have a point. From the Illinois Counties Code…
At the time it reapportions its county under this Division, the county board shall determine whether the salary to be paid the members to be elected shall be computed on a per diem basis, on an annual basis or on a combined per diem and annual basis, and shall fix the amount of that salary. If the county board desires before the next reapportionment to change the basis of payment or amount of compensation after fixing those items, it may do so by ordinance or by resolution. Those changes shall not however, take effect during the term for which an incumbent county board member has been elected.
* Related…
* Foreclosure process caught in state bottleneck: The median number of days to resolve foreclosure cases, most of which go to court-ordered auction and are repossessed by lenders, rose 25.5 percent in the Chicago area for the three months ended in June, compared with a year ago, according to a report to be released Thursday by the Woodstock Institute. Compared with three years ago, processing times are up almost 51 percent.
* Cost of planned health exchange questioned
* Illinois to float road bonds
* Midway’s $25-mil. concessions contract going out for bid
* The Onion to move editorial staff to Chicago
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Report: Jason Plummer may run for Congress
Thursday, Sep 22, 2011 - Posted by Rich Miller
* Be still my heart, Jason Plummer might be back for more…
Jason Plummer, the young lumber scion from Edwardsville, is hoping to build on his run last year as the Republican nominee for lieutenant governor in Illinois.
Plummer, 29, was scheduled to be in Washington this week, meeting with Republican officials about a potential challenge to seasoned Democratic U.S. Rep. Jerry Costello.
Last year, Plummer won a crowded GOP primary to earn the nod as Bill Brady’s running mate. The pair lost to Gov. Pat Quinn and another down-stater, Lt. Gov. Sheila Simon, daughter of former U.S. Sen. Paul Simon. […]
But if Plummer is once again prepared to put part of his family’s timber money into the race, he may find encouragement from a national party eager to evict a veteran Democrat from Capitol Hill.
He won’t be able to use much of his family’s money unless they do independent expenditures or contribute to a “super PAC” or something. It’ll have to be his own cash.
…Adding… Jerry Costello won with almost 60 percent last year. His opponent spent almost nothing, but that’s still a huge hill to climb for Plummer.
* Meanwhile, Texas Gov. Rick Perry is doing an October fundraiser in Carpentersville…
The event is being hosted by prominent and controversial social conservative Jack Roeser, who last year was quoted in media ads saying he’d heard rumors that then-U.S. Senate hopeful Mark Kirk is a homosexual. Mr. Kirk was elected anyhow. […]
The Texas governor “has got some guts” and is willing to talk about things that need to be discussed, said Mr. Roeser, who recently flew to Austin, Texas, to meet with Mr. Perry. Putting him on the 2012 ballot would help Illinois Republicans win enough seats to regain control of the state House and Senate, Mr. Roeser said.
The Perry camp also has been wooing Illinois House GOP Leader Tom Cross to come aboard, but no final decision has been announced. For the moment, that leaves Mr. Roeser as the Texan’s most prominent local backer.
I doubt Perry would help the GOP much with suburban women, considering his beliefs. He could actually hurt them there. But, Perry could help the party in Downstate legislative races, which is where the Democrats will be playing bigtime defense next fall.
* In other news, this revelation ain’t gonna help the Democrats in the Quad Cities area at all…
Former Democratic Congressman Phil Hare says his son is qualified for his new job as an assistant warden at the East Moline Correctional Center.
His comments come amid criticisms from a Republican Rock Island County Board member and a former union president who allege it’s politics as usual.
Hare said he feels bad that people waste time thinking he fixed the job for his son. He says nothing was improper.
Lou Hare starts next month. He worked four years at the Rock Island County Council on Addictions. He says he applied for the job like everyone else and has the credentials.
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* Trouble in paradise…
Democrats hailed Illinois’ new Congressional map as a work of redistricting art earlier this year, but now the three black Democrats in the delegation are raising serious objections.
Reps. Jesse Jackson Jr., Bobby Rush and Danny Davis have concerns about whether the new map adheres to the Voting Rights Act. The trio is also hesitant to help Democrats defend the map in court against a GOP lawsuit.
“I have serious concerns that are likely to be aired in the legal process between both sides,” Jackson said Tuesday evening.
Earlier this month, the lawmaker penned a letter to the president venting his frustration with the Justice Department. Last week, he went ballistic in a Democratic delegation meeting, according to two sources familiar with the situation.
“He was, in his own way, boisterous and bombastic and perhaps inappropriate in that meeting,” one of the sources said. “It seemed like a strange time to discuss that. There were several meetings when the map was being discussed in the first place.”
At the meeting, Democrats discussed how to pay for as much as $500,000 in court fees to fight a GOP lawsuit challenging the new lines. The Illinois Democrats were asked to chip in $10,000 each from their campaign funds. But Davis said that he, Jackson and Rush refused to pay.
According to the last census, Chicago lost about 180,000 black people. The African-American population also dropped in suburban Cook and almost all the collars. Several people have contended that the census numbers were inaccurate and should’ve been challenged, but we didn’t hear much out of the state’s congressional delegation about that.
* The Congressman appears to be upset that the three African-American districts are all just barely over 50 percent black. But when the region loses that many black people, it’s pretty tough to draw three completely solid black districts. Jackson’s current district was based on the 2000 census total of 62.4 percent black. His new disrict is about 54 percent black.
Democrats probably could have done some more squibbling with the lines and put more black people into these three districts, but that would’ve meant seriously undercutting party strength in a couple of “competitive” districts.
Of course, if Jackson, Rush and Davis decide to actually challenge this map in court under Section 2, the Republicans will have a field day…
Section 2 of the Voting Right Act of 1965 prohibits voting practices or procedures that discriminate based on race, color or membership. It’s used frequently as an argument in redistricting lawsuits when one party does not believe the map accurately gives minority groups voting representation.
*** UPDATE 1 *** Congressman Jackson just sent me this statement. I’ve highlighted a couple of paragraphs that may be a surprise to Congressman Luis Gutierrez, who fought hard to limit Latino districts to just one. Either way, this is a big boost to the Republican challengers of the new map because the GOPs based much of their complaint on this very same argument about one Latino district…
Redrawn maps after the 2010 census in the 1st, 2nd and 7th CDs remain essentially unchanged under the Democratic Party’s and the Republican Party’s maps. The only issue is whether Section 2 of the 1965 Voting Rights Act (VRA) was properly taken into account in the redistricting process.
To gain a Democratic majority and partisan advantage, some Democrats may be prepared to tamper with and possibly violate the VRA, rather than support strict enforcement of its provisions. Congressman Rush, Davis and I are not prepared to do that. There is another way. Instead of abandoning the fight against racism and discrimination, both Democrats and Republicans should fight for fairness - political and economic inclusion for all.
For some, partisan advantage may be more important than fighting against discrimination. But not for us. African Americans and Latinos have a memory of a history of discrimination that predates either party.
We want to make it very clear that the 1st, 7th and 2nd CDs - that are presently represented by Bobby Rush, Danny Davis and me respectively - remain essentially unchanged under either proposed map. So our arguments are not driven by self-interest. The potential problem is in the 20-year-old court ordered 4th CD represented by Luis Gutierrez.
In 1990 the Democratic legislature drew a map that did not include a Latino district. In 1991 the Republican Party filed a lawsuit that did include a Latino district and their map prevailed in court, which elected the first Latino congressman in the history of Illinois, Luis Gutierrez, who has represented the district with great distinction.
In 2011, with Illinois losing a congressional seat under reapportionment and the Latino population being the only minority population in the state to increase, the Democratic-controlled legislature has drawn a map that may deny Latinos a second CD in Congress. According to Thornburg v. Gingles, historic discrimination is enough to establish a violation. Therefore we hope Democrats, for the 2nd time, have not denied Latinos their fair share of representation. We hope that the Court does not rule that the Democrats intentionally discriminated against Latinos for a second time and we are concerned that we could a party to that argument.
With national attention on issues like immigration and high unemployment, we want to make sure that neither side’s arguments over the redrawn maps are depriving Latinos of legitimate and deserved representation in Congress.
Again, all of the African American CDs - under either map - does not essentially change. So this is not an issue driven by our self-interest but by our interest in strict enforcement of Section 2 of the Voting Rights Act that is under attack in multiple jurisdictions around the country.
We believe that President Barack Obama and his Justice Department are equally committed to seeing that Section 2 and Section 5 of the 1965 Voting Rights Act are strictly enforced.
Discuss.
*** UPDATE 2 *** There’s not much to it, of course, but here’s the response from House Speaker Michael Madigan’s spokesman…
“The new Illinois reapportionment law meets all the requirements of the federal Voting Rights Act and the related requirements.”
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A Chinese caption contest
Thursday, Sep 22, 2011 - Posted by Rich Miller
* From today’s edition of ShanghaiDaily.com…
Business, cultural and educational cooperation between the United States and China stepped up further with Illinois Governor Pat Quinn leading a trade delegation to Shanghai today and signing a string of agreements.
Among the business deals, Shanghai Bio Pharmaceutics Association inked a letter of intent with the Illinois Science and Technology Coalition for closer ties in research and development.
Also, Xiamen C&D Inc announced plans to purchase 250,000 metric tons of Illinois corn products valued at US$70 million by December 2012.
“Agriculture and bio technology in Illinois are big business. I am sure there are huge opportunities if we can enhance cooperation with China in these sectors,” Quinn said.
* Illinois Radio Network…
While Governor Pat Quinn is in China drumming up business for Illinois, a new study says trade with China is costing the state thousands of jobs.
The number; 118,200 over the last 10 years, according to a report by the left-leaning Economic Policy Institute. The losses, says Robert E. Scott, director of manufacturing and trade policy research, have been in areas such as steel and machine tools.
“In Illinois you also have a large number of firms involved in industries like auto parts production and fabricated metal products, and those are industries that were hurt by the growth of imports from China,” he said. […]
Scott blames currency manipulation, and says the situation would turn around if Chinese currency were priced by the world market.
* AP…
Nutritionists and food scientists tout Asian carp as low in mercury because they don’t eat other fish and are high in Omega-3 fatty acids. Illinois has been sending some of its carp to China, where the demand is high. This week, Illinois Gov. Pat Quinn, who is in China, sampled carp, reportedly saying it tasted like tilapia.
* Bloomberg News…
Sales of Asian carp to China are part of efforts to bolster shipments to the state’s third-biggest export market, Quinn said today.
“We want children to learn the Chinese language, the history, the culture,” Quinn said. “Our goal is to be the most Chinese-friendly state in the union.”
* And a photo from our traveling governor’s Twitter account…
Caption?
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* As promised, here are some of the results from a statewide poll conducted for the Illinois Policy Institute by Doug Schoen. The full poll can be read by clicking here. Graphic image results, which was what the IPI sent to inquiring reporters yesterday, can be viewed by clicking here.
The universe is small, just 400 registered voters. It was taken August 29 through September 5th. There are no available crosstabs. They did provide some demographics, however, including 42 percent Democrats, 24 percent Republicans and 26 percent independents. That’s about right. 19 percent said they belonged to a union, and 61 percent of those said they belonged to a “public union.”
* Right off the bat, you can see that Illinoisans have no illusions about how well their government runs…
Wisconsin and Indiana residents are obviously more pleased with their state governance.
From the full results, they have the state’s right economic track at 23 percent and wrong track at 74 percent.
* As you might expect, considering the source, much of the poll is aimed at state workers and unions. But Illinoisans are not reflexively anti-public worker. For instance a strong plurality say that public worker salaries are either too low or about right…
* The IPI skipped over some questions in its graphic presentation that it sent to reporters. The full report has those questions. For instance, 56 percent say public employee retirees should not have to “contribute more toward pension and healthcare benefits because of state and local government budget problems.” The public is also divided over the question of whether public employees are paying their fair share toward retirement costs, with 38 percent saying they are paying their fair share and 36 percent saying they aren’t.
* And while there is some support for collective bargaining “reform,” a 53 percent majority opposes restricting collective bargaining rights. The public also doesn’t think that this reform will make much difference…
Also…
* Since the Statehouse receives middling coverage around Illinois, most legislators have grown accustomed to operating without much public knowledge. However, the public is obviously keeping track of the budget crisis…
* It’s no surprise that the IPI would ask loaded questions in its poll. It is what it is. However, it’s even worse when they cross the line into deliberate falsehoods…
The public has a different view about how the problem was solved, however…
* Once again, back to public employees…
* According to the poll 70 percent had [not] heard about the lawsuit between AFSCME and the state. The lawsuit was not described, but those who said they had heard of it were then asked which side they backed. This will give you a good idea of how much contempt voters have for the state. Even though respondents believe that the union is not doing enough to help with the state’s problems, a clear plurality sides with the union over the state…
However, when the lawsuit is explained in the next question, 63 percent said the union should have to accept a pay freeze, while just 27 percent said the union should get its guaranteed pay increase.
* This is one of two biggest surprises in the poll results. 32 percent actually favor the tax hike? I never would’ve thought it was that high…
* This is little surprise…
* Here’s the other, perhaps bigger surprise. Even though a clear majority favors pension changes, few actually say it would move their votes, and only by a paltry net of ten percent…
If that result is accurate, and the universe is quite small so I can’t say it is, then there’s no good political reason to go against the unions on this issue. Legislators might have a fiduciary reason for doing so, but the political benefit could be slight to nil. Then again, control of the House and Senate is decided in districts that are more independent-leaning, so the numbers could be stronger there.
Discuss.
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* Laws like this one, which give some union leaders huge city pensions for city jobs that they left years ago, are a big reason why the General Assembly stopped routinely using conference committee reports a long time ago…
Because the law bases the city pensions on the labor leaders’ union salaries, they are reaping retirement benefits that far outstrip the modest salaries they made as city employees. On average, their pensions are nearly three times higher than what the typical retired city worker receives. […]
In April 1990, then-Sen. Emil Jones presented a bill aimed at increasing pension benefits for city employees in the municipal pension fund. Other members of the Senate and the House also added provisions before the bill passed both chambers by the summer.
The bill didn’t include the perk for labor leaders at that point, records show. But because the versions passed by the two chambers differed slightly, each chamber appointed five members to a conference committee to iron out the differences.
Although the 10 lawmakers were supposed to reach a compromise on what had passed already, during their meetings more than 100 provisions were added to the bill. The new, much larger bill included the pension deal for labor leaders.
“These provisions incorporated within this bill have been agreed to by the (city) administration and the pension system and the laborers,” Jones told his Senate colleagues the day the bill passed in January 1991. “The people in the city of Chicago came together and agreed.”
The conference committee report obviously became a grotesque pension Christmas tree. I seriously doubt that anybody knew and understood all the provisions of the bill, or even most of them. And I’ll bet it got almost no debate.
Conference committees were a joke. The committees rarely if ever met. And since we’d see so many of them near the end of session, nobody could keep track of what was in the things, so somebody was always trying to sneak something through. And those folks usually succeeded. I wrote a story years ago about an attempt by AT&T to deregulate the telephone industry via one line buried deep within a big conference committee report. The report actually passed one chamber before it was finally halted.
While still legal, they are rarely used now, and that’s a good thing.
The other difference between now and then was nobody really gave a fig about the consequences of pension proposals like this one. Legislators just couldn’t, didn’t, or wouldn’t imagine the enormity of the problem they were creating. They also didn’t care. Most also probably figured that if things did get bad they’d be long gone. They were right about that. Only a tiny handful of legislators who were here in 1990 are still around today.
With all of our problems, the House and Senate are much better run institutions now than they were in the past.
*** UPDATE *** The mess is even worse than I thought. This bill was passed on the last day of a lame duck legislative session on the same day that 15 other conference committee reports passed. Jim Thompson signed the bill into law the morning before Jim Edgar was sworn in as governor. The Christmas tree was also apparently passed to get the Senate Republicans to support funding for a Chicago teacher pay raise.
Also, this is from the Trib story…
None of these pension deals could happen without the blessing of city government, which has granted lengthy leaves of absence to union officials. The average leave of absence for city employees who are on a leave to work for a union is nearly eight years. Roughly a third have been on leave for more than 12 years.
None of this could’ve happened without the city. The city didn’t have to agree to these pension deals, but it did. The city is really to blame here.
*** UPDATE 2 *** From Illinois Issues’ February, 1991 issue…
The heaviest piece of work that lawmakers tackled was a 252-page omnibus pension bill. Sponsors had tried and failed to get agreement on the bill during the spring session and again in November. The measure increased benefits to workers covered by 14 public pension systems. The new legislation increased the liabilities of the systems by nearly $300 million will raise the annual costs to those systems by more than $35 million. Most of those costs are for Chicago systems. For the five statewide systems the increase in liabilities is about $15 million, and the increased annual cost totals about $1.5 million.
The largest costs will be borne by Chicago pension systems and were approved after Chicago, the pension systems and workers agreed to the changes. There are increases for others, too. Retired downstate teachers saw an increase from 50 percent to 75 percent in the pension system’s share of their health insurance costs.
The bill also contained a not-so-new element, as lawmakers repassed the pension funding swap that they had voted in June and November, which allowed the Chicago Board of Education to pay negotiated salary increases to its teachers. The plan to tap two existing property tax sources - $51 million used for pension payments and $15 million that would go to the building fund - had gotten only a majority vote approval in November. Questions over whether the measure should have required a three-fifths vote had opened the door to legal action. By repassing the measure after January 1, when a simple majority vote was needed, lawmakers foreclosed such a challenge.
Inclusion of the once controversial pension swap prompted some Senate opposition to the omnibus bill. Republican senators had twice rallied against the pension swap, saying it would create future problems. Sen. Calvin W. Schuneman (R-37, Prophetstown) cautioned that the pension swap was not agreed to by all parties, as was everything else in the package. “Most of the provisions that are in this bill are Chicago pension sweeteners, and there really isn’t very much in this bill for downstate interests,” Schuneman said. Despite his effort, the measure picked up Republican support and got 37 Senate votes. The measure got 99 votes in the House.
[ *** End Of Updates *** ]
* Meanwhile, one of the things I noticed in yesterday’s Tribune story about Senate President John Cullerton and the gaming bill was that there was no direct quote on this particular topic…
The North Side Democrat also said he’s willing to scrap plans for year-round horse racing with slot machines at the state fairgrounds in Springfield.
* The Trib didn’t post the audio of the interview, so there’s no real way of knowing exactly what was said, but the comment caused some consternation among Springfield legislators…
State Rep. Raymond Poe, R-Springfield, who has urged that harness racing, along with slot machines, be allowed at the fairgrounds for nine months of the year, said he will vote against any compromise that takes the fairgrounds out of the mix. State fair patrons already can bet on harness races during the fair itself.
After expenses, 50 percent of revenue from harness racing and slot machines at the fairgrounds would go to improve the site’s infrastructure. The other half would bolster county fairs and Future Farmers of America and 4-H programs. […]
State Sen. Larry Bomke, R-Springfield, said he also was disappointed to hear talk that the fairgrounds could be left out of the gambling bill. Bomke noted that the bill, which provides for new casinos in Chicago, Danville, Park City, Rockford and the south suburbs of Cook County, also provides funding for soil and water conservation districts, historic sites and state parks.
If money for those items is deleted along with funds for county fairs and agriculture education programs, “that doesn’t leave much for a downstater to support,” Bomke said.
* Cullerton’s spokesperson clarified her boss’ remarks via e-mail…
He supported the state fairgrounds provision in the gaming bill and voted for it.
However, he is open to reconsidering that component of the bill if it addresses some of the Governor’s concerns.
If they dump that State Fair provision, they’ll have to find more votes in both chambers to pass another bill. That’s not going to be easy, to say the least.
This gaming proposal is not a pretty bill by any means. But the provisions are pretty carefully balanced to achieve the goal of passage. Most of the complaints about oversight and regulation can be dealt with without hurting the bottom line of 60 votes in the House and 30 in the Senate, but they won’t be able to take too much out of this bill before the whole thing falls apart like a house of cards. There’s a reason why it’s taken decades to pass a bill to approve new casinos. It’s extremely hard to do.
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Question of the day
Wednesday, Sep 21, 2011 - Posted by Rich Miller
* Former Sen. Chuck Percy passed away over the weekend. I thought you might like a chance to talk about your memories of the late, great Senator. So, have at it.
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* Freshman Congressman Joe Walsh just announced that he will run in the 14th District primary. From his press release…
As you know, the Democrats controlled the entire redistricting process in Illinois and they’ve drawn a map which attempts to overturn the 2010 election. The Republicans have filed suit to challenge the Democrat drawn map and have presented the court with their own fair map. We should get an answer from the Court in November but I didn’t want to wait that long to let you all know what I’ll be doing.
* Walsh mentions fellow freshman Randy Hultgren in the announcement…
I understand that there is another Republican Congressman drawn into this new district, Randy Hultgren and it would be unfortunate if we had to run against each other. But the new 14th District, if it stands, doesn’t belong to any Incumbent or any politician. The district belongs to the people of this district and they will have to decide who their next representative is. And if they have to decide between two Republican Incumbents, so be it - in many ways Randy and I are both good conservatives who share many of the same values but there are also healthy differences between the two of us, we’ve both had a very different initial tenure in Washington, and the voters in the new district will decide which one of us will best be their voice in DC.
* And he has already begun framing the primary race against Hultgren, who was a state legislator before moving to Congress…
I said during the campaign I was going to go to Washington and scream from the mountaintop about the frightening direction our country was heading and that’s what I’ve done, becoming one of the most outspoken voices in Congress.
Friends, we’re in a fight, a fight we can’t lose. This President doesn’t understand what makes America great. His policies are destroying what makes this the greatest and freest country in the history of this planet, and the only way we will defeat him and those who agree with him is to respectfully fight him with everything we’ve got. Now is not the time to have career politicians in Washington who will just get along, compromise too much, and do what their party leadership tells them to do. We need members of Congress right now who will fight for the folks back home, do what’s right, and not worry about the next election.
I went to Washington because I believe America is going through a revolution over her very soul and I wanted to do my part to help win this fight. It’s why I’ve been so vocal this first year, it’s why I’ve been a leader in the fight for the balanced budget amendment, it’s why I was one of 22 Republicans who voted against my own Speaker’s final debt ceiling compromise, it’s why I sleep in my office, why I’ve limited myself to no more than six years in Congress, it’s why I turned down my Congressional health and retirement benefits, and it’s why I did not attend President Obama’s joint session speech the other week and instead came home and listened to 100 small business owners, the real job creators in this country. We are at a crucial point in our country’s history and our side — the side that believes in freedom and limited government — has to win. […]
I said during the Campaign that I am a tea party conservative first, and a Republican second. You see, I believe the tea party movement is bigger than either party — it consists of every American frustrated, concerned, angry and scared with how big government is getting and the debt we’re placing on ourselves and future generations. This “silent majority” has put their faith in the Republican Party one last time to get it right.
* As I told you yesterday, Republicans have been holding back on making campaign announcements until their map lawsuit is resolved. Walsh is the second member, after Tim Johnson, to declare his intentions. The dam may be about to burst, but this story may also have played a role in Walsh’s timing…
Nineteen lawmakers are listed as either violating the law or showing a lack of regard for congressional ethics and rules in a government watchdog group’s annual report on the “Most Corrupt” members of Congress.
The seventh annual report released Tuesday by Citizens for Responsibility and Ethics in Washington (CREW) lists 14 members — 10 Republicans and 4 Democrats — as having allegedly violated congressional ethics rules or criminal laws, such as illegally garnering campaign contributions or failing to disclose accurate financial records. […]
Of the 19 lawmakers listed in the report, six of those are freshmen, including [Joe Walsh]. The report states that Walsh allegedly made inaccurate statements on his financial disclosure forms and court financial filing records. Walsh owes his ex-wife more than $100,000 in child support payments, and the report argues that it does not reflect creditably on the House, especially while he was able to loan $35,500 to his campaign committee.
A county judge in Illinois ruled last week that Walsh has to explain why he is so far behind making his child support payments, according to the Chicago Sun-Times.
Regardless of what some feel about CREW, its report will make a heckuva mailer.
*** UPDATE 1 *** Congressman Hultgren responds, claiming Walsh is playing into the Democrats’ hands by announcing so soon and tossing in a few other insults for good measure…
“I’m disappointed that the Congressman from the 8th District has decided to abandon his own district to run against me in a primary,” said US Rep. Randy Hultgren (IL-14). “By doing so, he’s playing into the hands of the Springfield Democrats and Nancy Pelosi, who have drawn the Congressional map for Illinois specifically to encourage just such a contest.
“The residents of the 14th District are looking for responsible leadership for the long haul, and know that if we are to turn this country around, fix our economy, and put Americans back to work we won’t be able to do it through political grandstanding, sound bites, and name calling. Winning the challenge before us takes commitment, experience, and a long term view.
“Throughout the campaign I look forward to proving my pro-business, small-government, pro-freedom record and earning the support of the voters of the 14th District so I can continue to represent them in Washington for years to come.”
Thoughts?
*** UPDATE 2 *** A silly press release from Democrat Tammy Duckworth’s campaign…
“Faced with running against Tammy Duckworth, Joe Walsh cut and ran. She leads the Democratic primary 69-8%, won in the 8th district before, and raised $4.5 million in 2006. But more than that, Tammy Duckworth has a story of service to our nation and standing up for middle-class families like the one she grew up in that Joe Walsh could never challenge. There are rumors that GOP sources polled Walsh against Tammy. We don’t know the results of the poll, but his retreat makes it clear what the voters told Joe Walsh — pack your bags,” said Josh Levin, Campaign Manager
Walsh was never going to stay in that district.
*** UPDATE 3 *** The National Journal is usually the DC bible, but this is wrong, or at least badly outdated…
Walsh will have one ally on his side in the GOP race - the anti-tax Club for Growth. Nearly two months ago, the conservative group signaled they would back Walsh if he ran in the 14th District.
Yeah, the Club for Growth did come out for Walsh in July. But after the Sun-Times broke the child support story in August, the Club for Growth backed off…
Club for Growth President Chris Chocola told The Hill that if the reports were true, they might not support him after all.
“We said that if he ran in the 14th then we would likely endorse him. But character matters. If these are real issues, we don’t know what the answer is. He has said this isn’t true, but when it comes time to make a decision, character matters,” Chocola said on Tuesday. “Walsh has been a leader on the issues, and when you look strictly at his votes and at his policy positions he’s great. But character matters and we’ll learn what the facts are on him.”
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Zagel’s big decision
Wednesday, Sep 21, 2011 - Posted by Rich Miller
* This is, almost without a doubt, the most important ruling that Judge Zagel will make in Bill Cellini’s upcoming trial…
Federal prosecutors on Tuesday asked a judge in an upcoming corruption trial to block “irrelevant” questions about the personal life of the expected star witness: serial swindler Stuart Levine.
Prosecutors say defense lawyers for Springfield power broker William Cellini, a onetime co-defendant of former Gov. Rod Blagojevich, should not be allowed to delve into Levine’s lurid background, including Levine’s previous testimony that he’d engage in all-night, drug-fueled parties at the Purple Hotel in Lincolnwood and then attend a meeting for a state board the following day. […]
By limiting Levine’s cross examination, the government is trying to avoid the same 15-day saga that played out in Tony Rezko’s 2008 corruption trial, where Levine, once a GOP supporter and the member of two influential state boards, spelled out many details of his personal life, arguably creating a distraction in the trial.
“The government anticipates that the defendant will attempt to introduce evidence or cross-examine Stuart Levine, a potential government witness, on certain matters that are irrelevant and/or unduly prejudicial, such as on matters pertaining to Levine’s drug use and personal life,” prosecutors wrote in Tuesday’s filing. Some of those papers were filed in private with the judge at the government’s request.
Tony Rezko’s attorneys were able to bring up much (but not all) of Levine’s past, which included seemingly constant cocaine use and drug-filled parties with young men in the Chicago area and, on at least one occasion, Springfield.
Rezko’s defense was, essentially, that Levine had made the whole thing up. There was no attempt to shake down investor Thomas Rosenberg for a $1.5 million campaign contribution because the plan never existed, except in Levine’s drug-addled mind. The jury agreed. Rezko was acquitted of these Levine-related charges.
Judge Zagel disallowed this particular line of questioning in the Blagojevich trial, but Levine was never called to the stand. The alleged shakedown attempt wasn’t part of that trial.
* If the proseuction wins on this point, Levine’s testimony will be almost golden. If Cellini’s lawyers win the round, then Levine will once again be forced to reveal his lurid past and the prosecution will be at a distinct disadvantage. Keep in mind that the prosecution’s entire case against Cellini is built on this alleged shakedown attempt and that Rosenburg has already testified that Cellini never asked him for a dime. If the shakedown scheme is seriously undermined once again, then Cellini may have a decent chance at winning here.
The rest of the Cellini legend will be a factor, of course, but the centrality of the case is this alleged shakedown, which was already found once to be a fantasy.
* Read the prosecution’s filing by clicking here.
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Question of the day
Tuesday, Sep 20, 2011 - Posted by Rich Miller
* From the Tribune…
Illinois Senate President John Cullerton said Monday that he’s open to reducing the number of gaming positions in a pending casino measure to try to address Gov. Pat Quinn’s concerns that it expands gambling too much.
The North Side Democrat also said he’s willing to scrap plans for year-round horse racing with slot machines at the state fairgrounds in Springfield. But Cullerton said he wants to keep the five new casinos, including one in Chicago. And the lawmaker discounted the idea of getting rid of slot machines at other horse tracks, saying it would jeopardize support for the package at the Capitol. […]
The Senate president also said he wants to work with Quinn on other issues the governor has raised, including fears the measure would erode oversight of the gambling industry and concerns that proposed changes to the way casinos are taxed would mean less money for schools.
* But the photo the Trib used with its piece is what most interests me. Here’s Cullerton speaking with ComEd Chairman and CEO Frank Clark and Exelon CEO John Rowe at a gym dedication for the Rowe-Clark Math and Science Academy…
* The Question: Caption?
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It’s tough to handle this fortune and fame
Tuesday, Sep 20, 2011 - Posted by Rich Miller
* The University of Minnesota’s “Smart Politics” blog analyzed Lexis/Nexis news transcripts from ABC, CBS, CNN, FOX, MSNBC, and NPR since January and looked for mentions of new US House freshmen.
As might be expected, Republican Joe Walsh was interviewed or mentioned the second-most times among all freshmen. Walsh was interviewed or mentioned on 148 broadcasts, for 12 percent of the total. Top finisher was Allen West of Florida, who was interviewed or mentioned in 222 programs, for 17.9 of the total. There was a huge dropoff between Walsh and third place finisher Tim Scott of South Carolina, who was interviewed or mentioned just 45 times.
The rest of Illinois’ freshmen class isn’t even close…
8th - Adam Kinzinger - 22 broadcasts - 1.8 percent
29th - Bobby Schilling - 11 broadcasts - 0.9 percent
59th - Randy Hultgren - 5 broadcasts - 0.4 percent
66th - Robert Dold - 4 broadcasts - 0.3 percent
Hultgren starts this campaign with a serious PR deficit against Walsh. Then again, he’s not accused of cheating his kids out of over $100,000 in child support, so there’s that.
* As part of their legal challenge to the new Democratic map, incumbent congressional Republicans have privately agreed not to formally announce campaigns or even actively campaign in their new districts until the court battle ends. But the clock is ticking and some folks can’t wait…
Political sources who would know say that U.S. Rep. Judy Biggert, R-Hinsdale, has begun circulating nomination petitions to run in the 11th, which includes portions of Aurora, Joliet and central DuPage County.
Ms. Biggert also is circulating petitions in a different, somewhat friendlier district drafted by Republicans who are challenging the Democrat-drawn map in federal court. But that challenge is considered a long shot — meaning that Ms. Biggert is likely to end up running in the new 11th.
The Democrats put Ms. Biggert’s home in a new 5th District dominated by Chicago Democrat Mike Quigley. She’d have no real chance to win there, ergo the move.
If she does run in the new 11th, Ms.Biggert’s Democratic opponent likely will be former Congressman Bill Foster, who lost his seat in the far west suburban 14th District in the GOP’s 2010 election rout.
The problem with waiting is that the other side is given an advantage. That’s a big reason why Tim Johnson decided not to go along with his party and started campaigning immediately. Most others are still publicly hedging…
If re-elected in 2012, U. S. Rep. Adam Kinzinger, R-Manteno, will continue to represent La Salle County.
However, which district he will run in is still in question.
Kinzinger told The Times Friday he will run for re-election in either the 11th or the 16th Congressional Districts, depending on the unlikely success of a Republican-backed lawsuit now in the courts, which challenges the new Democratic drawn redistricting map sanctioned by Gov. Pat Quinn in June.
“If the Republican (revised) map wins in the courts, I’ll run in the 11th District,” said Kinzinger. “If not, I’ll run in the 16th District. Either way, Ottawa and La Salle County (which lies in both versions) will be included in my re-election campaign.”
Should the freshman congressman run in the 16th District, he may face longtime incumbent Rep. Don Muzullo, R-Egan, in a GOP primary face-off next spring.
* Johnson, meanwhile, will officially have another Democratic opponent tomorrow…
Jay Hoffman, who served in the state House for 22 years and narrowly lost a race for Congress in 1996, said Sunday he will run for the Democratic nomination in the 13th Congressional District.
Hoffman, who lives in Collinsville, said he will formally announce his candidacy at various stops throughout the sprawling new district on Wednesday, Thursday and Friday, starting Wednesday in Edwardsville. He’ll be at the Illini Union at 11:30 a.m. Thursday.
Hoffman, 49, already has two Democratic foes, Bloomington emergency room physician David Gill, who has run and lost for Congress three times, and retired Litchfield educator James A. Gray. A fourth potential candidate, Green County State’s Attorney Matt Goetten, said he expects to make a decision later this month.
There are two Republican contenders in the district, six-term incumbent Rep. Tim Johnson, R-Urbana, and Springfield truck driver Sam Spradlin.
Spradlin ain’t gonna be much of a primary opponent, however…
Court records show that Spradlin took out bank accounts in someone else’s name and wrote checks on those accounts. The five checks yielding the charges included one to an auto service center, three to stores and one to a bank. The largest was $200, and the total was $540.
He wrote and signed a statement at the time saying he was “deeply in debt” when he came out of the service in 1983, and that he talked to a minister about it and wanted to confess but was scared of violence from people close to the person whose name he had used.
* And I’m not sure this means much of anything…
Rep. Danny Davis (D) is backing former Illinois Deputy Treasurer Raja Krishnamoorthi Monday in the hotly contested Democratic primary for the new 8th district. Davis will also host a fundraiser for Krishnamoorthi on Sept. 30 in Illinois.
Davis’ support puts him on the opposite side of at least one of his home-state colleagues, Sen. Dick Durbin (D), who endorsed Iraq War veteran Tammy Duckworth earlier this year.
The new 8th District has an African-American voting age population of just 4.2 percent. And Davis hasn’t exactly been a major fundraiser in the past.
…Adding… This, however, is starting to look like a trend. From a press release…
Cook County Board President Toni Preckwinkle announced today that she will host a fundraiser for Democratic Congressional candidate Raja Krishnamoorthi on October 12, 2011. In explaining her strong support for Raja, President Preckwinkle cited Raja’s progressive solutions to problems facing the people of Cook County and Illinois.
President Preckwinkle said, “Raja’s focus on empowering small businesses is the exact type of economic policy we need right now. Raja knows that small businesses are the key to economic prosperity and middle class job creation.” Raja’s focus on strengthening small businesses so they begin to create jobs is a key component of his campaign. President Preckwinkle also noted that Raja will be a strong leader and a key partner on these issues if elected to Congress.
Raja Krishnamoorthi raised more than $412,000 in his first five weeks of fundraising in the 2nd quarter and support continues to pour in during the current 3rd quarter. President Preckwinkle’s fundraiser in October will provide even more momentum and resources to fuel the campaign.
* Related…
* Numerous battles haven’t slowed Rep. Bobby Rush
* Tea Party Invites Presidential Candidates to Schaumburg
* Cook County GOP has new leader
* Alderman Fioretti looted own law firm for campaign cash, suit claims
* The Masters of Hispanic Destiny: “Democrats are so intent on making Hispanics the next victimized minority seeking entitlement programs and all that, that the Republicans are starting to believe it!” exclaims [Juan Rangel, CEO of Chicago’s United Neighborhood Organization]. “And they’re wrong on both ends. This is a great community that’s poised to do great things—but you gotta challenge it. Don’t pander to it.”
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* Was this really necessary?…
This summer, the office of Illinois Treasurer Dan Rutherford sent a glossy summary of “successes” to a select 850 state residents — a majority of whom happen to be major campaign donors to the Pontiac Republican.
Rutherford, who party insiders say is strongly mulling a bid for governor, says it is “merely a coincidence” that nearly two-thirds of the recipients of the slick mailer are also donors to his political campaign.
Rutherford sent out the 11-page full-color booklet titled “No More Debt” on June 1. “Paid for by the state of Illinois. 850 copies,” it reads in small print on the back. […]
According to information obtained through the Freedom of Information Act and cross-checked against campaign disclosure data filed with the State Board of Elections, 566 of the original 850 recipients were Rutherford campaign donors, contributing a total of $1.6 million to the former lawmaker’s war chest over the last 16 years.
You do a mailer to a tiny list of bigtime honchos? It makes zero governmental sense, but lots of political sense.
*** UPDATE *** Sorry, Dan, but I’m not quite buying this explanation yet about the Daily Herald story...
State Treasurer Dan Rutherford said Tuesday that he did nothing wrong when he used treasurer’s office funds to pay for a brochure that went largely to campaign contributors and other supporters of the Republican Party.
Rutherford called it a coincidence and said the 11-page mailer was targeted to people who had request more information about state pensions, borrowing and debt.
“I get a smile out of it because the suggestion is (the recipients) were largely Republicans. Well, that happens to be the larger number of people who expressed interest in the concern of where we are on state debt and where we need to change the state public pension system,” Rutherford said.
So, Jim Thompson, Craig Duchossois, Goldman Sachs investment banker Muneer Satter and Jimmy Johns founder James Liautaud had “requested more information about state pensions, borrowing and debt”? Huh.
[ *** End Of Update *** ]
* And we most certainly know that this isn’t necessary…
Illinois may be swimming in red ink, but that hasn’t stopped lawmakers and other public officials from using state tax dollars to print and distribute coloring books.
Along with offering kids the opportunity to color things like the official state snack - popcorn - and the official state prairie grass - Big Bluestem - the booklets also prominently feature the name, contact information and picture of the lawmaker or state official.
In some instances, children can even color in a likeness of their local legislator.
Lawmakers defend the coloring books, saying they help familiarize young people with state government.
“It’s not to raise the name awareness of the legislators. There is educational value and governmental value to providing constituents helpful information about state programs and educate our kids about state government,” said state Rep. Chris Nybo, R-Elmhurst, who co-sponsored a law last spring barring politicians from promoting themselves by placing their names on state highway signs or taxpayer-financed billboards.
* As with the Rutherford mailer, the tiny cost is beside the point…
State Sen. Mike Jacobs called Thursday to register his disappointment about a story I wrote last week highlighting the little-known practice that allows lawmakers to hand out coloring books featuring their names and pictures.
Jacobs, D-East Moline, is among those who say the coloring books are educational and can help kids learn about Illinois. Plus, he said, they only cost about 19-cents apiece to print.
“I print a thousand a year. That’s $190 a year,” Jacobs said.
If every lawmaker printed and distributed 1,000 coloring books that would come to about $33,600 annually. Given the fact the state spends more than $33 billion annually, that’s not a lot of money.
But it’s not just about the cash.
It’s about whether it’s proper for lawmakers to use taxpayer dollars to promote themselves. If these were just straight up Illinois coloring books, that would be one thing. But these are emblazoned with the name, picture and address of the legislator.
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* Here we go again…
A key state senator said he will try to push legislation during the upcoming veto session that would require retired state employees to pay premiums for their state health insurance.
Sen. Jeff Schoenberg, D-Evanston, said he is still working on details of the plan, but he wants to have something he can give lawmakers to study before the veto session starts Oct. 25.
“We can’t sustain the existing situation where more than 90 percent of retirees pay absolutely nothing for premiums,” Schoenberg said. “If we don’t do something now, then inevitably everyone’s current benefit levels will be jeopardized and co-payments for everyone will inevitably rise.” […]
“There are retiree chapters already preparing to make their voices heard in the coming weeks if affordable health care is threatened in the veto session,” AFSCME spokesman Anders Lindall said. “Retired state employees have very modest, fixed incomes. They already pay a significant cost for their health care, and those costs are subject to collective bargaining.”
* I’m hoping to get the Illinois version of a recent national poll, but Doug Schoen’s latest survey found this related nugget…
However, there is a clear distinction in voters’ minds between what current public employees should be asked to contribute and what retired public employees should be asked to contribute. Sixty-nine percent say retirees should “not have to” contribute more towards their health-care benefits or take a reduced pension because of state and local government budget problems.
More…
Further, by 48% to 40%, voters say that public employees’ salaries should be “frozen,” and they should be required to contribute more towards their benefits when states face the type of crises they are now facing. Close to two-thirds (64%) say they would not be willing to have their taxes raised as a means of keeping salaries and benefits of current employees at current levels. […]
One of the reasons voters feel so strongly about reducing the level of compensation for state employees is that they believe that they are earning disproportionately high wages relative to those in the private sector.
There is a clear belief that public employees are better compensated than those in the private sector: 41% of voters think “the salaries and benefits of most public employees are too high for the work they do,” while 32% think they’re “about right” and 13% think they’re “too low.”
* A new study by the Center for State and Local Government Excellence took yet another stab at comparing wages and benefits between private sector workers and state and local government employees. The full study is here. The overall conclusion…
* State and local workers have a wage penalty of 9.5 percent.
* Pension contributions and retiree health insurance help close the gap.
* Total compensation for public sector workers is about 4 percent less than that in the private sector.
* Meanwhile, I wrote about this a while ago, but didn’t identify the legislator. I figured he probably already had enough problems, and, besides, he wasn’t really too upset about it. In fact, when Rep. Harris confirmed the story, he laughed about the whole thing…
While lobbying this spring for lawmakers to support a change in pensions for city workers, Emanuel called Democratic state Rep. Greg Harris, a longtime acquaintance who represents Emanuel’s North Side neighborhood. Harris opposed the legislation, which never got traction in Springfield.
Emanuel pressed Harris to change his mind, and, according to several lawmakers who heard the story, began swearing at him and threatening to burn down his house if he didn’t.
Harris didn’t dispute the story but declined to provide details of the conversation.
“It was a really heated exchange, but that’s fine, that’s politics,” Harris said. “People are passionate about their positions, and sometimes things get intense. … I also have a temper, and I know bad words too.”
I talked to Harris over the weekend about the Trib piece and he chuckled again, then got a bit peevish that the media was focusing on stuff like this and not the bigger problems at hand.
By the way, I’m pretty sure he’s still a “No” on the pension bill.
* Related…
* Editorial: Some hope remains for Tinley mental health facility survival
* School day debate is getting ugly - CPS, teachers union accusing each other of pressure tactics
* Emanuel, labor find common ground on health plan
* Editorial: Crowd-sourcing the budget
* Ald. Cardenas Calls for Police, Fire Closures
* Police mull closing district stations
* Some county commissioners say furlough days are for union workers, not them
* Looming fight over Cook County health system budget
* Editorial: CHA: Don’t toss out good eggs with bad
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Cross proposes $500 million tax cut
Tuesday, Sep 20, 2011 - Posted by Rich Miller
* House Republican Leader Tom Cross was in Peoria and Decatur yesterday to tout his “jobs” package, which was mainly comprised of a $379 million reinstatement of the net operating loss deduction, which disappeared this year. The list of proposals got a great reception in the Peoria paper…
Peoria-area companies would see significant benefit from an extension of the research credits, “with about $1 billion of research done every year” in the area, said state Rep. David Leitch, R-Peoria.
That proposal drew plaudits from Caterpillar Inc., which operates its main research and development facility in Mossville.
“Companies like Caterpillar . . . typically don’t do business planning on a short-term cycle,” company spokesman Jim Dugan said, noting the benefits of “a stable tax climate and predictability” when making decisions for the future. “A permanent R&D tax credit in this state is exactly the kind of thing that can help provide that stability.”
There’s no doubt that the R&D credit is helpful. But restoring that credit is only $25 million out of the entire plan.
* Cross also wants to increase the inheritance tax exemption to $5 million, from the current $2 million. From his proposal…
The estate tax falls heavily upon family farms and their owners and heirs. The current price of Illinois farmland means that Illinois farmers who try to bequeath their land to their children, following the traditional pathway through which a farm is moved from parent to child, must pay a heavy “death tax” that is so heavy that the next generation must either mortgage the land or leave the farm.
Farmland is now pushing $10,000 an acre here in Illinois. So, only the first 200 acres would be tax-free upon a farmer’s death, and that doesn’t include all the equipment and buildings. Job creation, however, may be tangential to this. Cross has a lot of very wealthy campaign contributors who would certainly benefit. Total cost to the state with this proposed: $88 million a year.
* Cross also wants to extend the life of all existing enterprise zones for 20 years, even though both legislative chambers are now examining whether some of those zones ought to be eliminated.
* So, how does he intend to pay for it? Well, he says, it’ll pay for itself, although he doesn’t exactly say how…
Cross said the plan, estimated to cost the state just shy of $500 million to implement, has been projected to generate between $600 million and $700 million in revenue - making it a net money-gainer for state coffers - and create as many as 60,000 jobs if it were fully implemented. That could lower the overall unemployment rate by as much as a full percentage point.
More on that point…
“When more people are working and re-investing in our communities, our economy is stronger. For every point we reduce our unemployment rate, the state generates around $600 million in new revenue to fund state programs and services. We can’t afford not to enact these proposals,” said Cross.
* The bill itself is here. Why didn’t he go even bigger?…
“We picked five things we think the Democrats might be open to doing because there have been discussions about these in the past,” said Cross. “I would love to do that, I don’t run the place.”
Discuss.
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GOP legislator predicts ComEd veto override
Tuesday, Sep 20, 2011 - Posted by Rich Miller
* ComEd has been saying for weeks that they will have enough votes to override Gov. Pat Quinn’s veto of their bill. But this is still somewhat of a surprising admission…
In the midst of the company’s ongoing mea culpa tour of the suburbs over summer power outages, representatives from ComEd met with Des Plaines residents to “clear some of the myths and misconceptions” about the legislation to increase electric rates that Gov. Pat Quinn vetoed last week.
To that end, Mike McMahan, ComEd vice president of smart grid and technology, explained the breakdown of what he described as a $2.6 billion, 10-year plan that designates about $1 billion for infrastructure and about $1.6 billion for the smart grid.
The legislation would cost ComEd customers on average an additional $3 per month, McMahan said Saturday. […]
State Rep. Rosemary Mulligan, who held the community meeting at the Des Plaines Library at which ComEd representatives spoke, said legislators may vote to override the governor’s veto during next month’s veto session.
“More than likely it will pass,” said Mulligan, who voted against the legislation last time in part because of lobbying by her senior constituents, but who said she may vote for the override. “I don’t think this bill was explained well,” said Mulligan, adding that she thought it could benefit the area.
The idea is to override the bill then pass a trailer bill which can be signed into law. But what if that is vetoed as well? Then legislators will have to suck it up and approve the trailer on their own. That’s a whole lot of unpopular votes, man. A whole lot.
* And the company will have to avoid stupid mistakes like this one…
ComEd, of course, put out a statement expressing disappointment in the veto. The company also issued the names and contact numbers of “potential spokespeople who can speak to the benefits” of the bill.
For example, one name on the list was Rep. Kevin McCarthy, D-Orland Park. That’s a logical choice since McCarthy was the House sponsor of the legislation.
Then there was Sen. Don Harmon, D-Oak Park. That was truly a curious choice since Harmon voted against the bill. In fact, he’s been designated as the guy who’s supposed to come up with modifications to the original bill that may make it more palatable to its critics. And he’s made it clear he’s not going to coddle utility interests.
Word was Harmon was none too pleased to learn ComEd listed him as someone available to extol the virtues of a bill he voted against.
Oops.
* An interesting take from a Downstate mayor…
While I understand the importance of efficient energy production and distribution, this bill would make it virtually impossible for municipalities to ask local citizens to contribute to a municipal utility tax, making a difficult fiscal environment even worse.
* And here’s my weekly syndicated newspaper column…
Gov. Pat Quinn recently vetoed a “smart grid” bill that was pushed through the General Assembly this spring by ComEd and Ameren, the two biggest electric utilities in the state.
Politically, this veto was a no-brainer for the populist Quinn. The governor never tires of recounting how he helped start the Citizens Utility Board, and that dovetails nicely with his repeated claims that the utility proposal “locks in” corporate profits.
ComEd’s severe, weather-related outage problems in the Chicago area this summer have seriously hurt the company’s already-damaged image, both in its territory and at the Illinois Statehouse. Add those outages to the possibility of legislative-approved rate hikes and then mix that in with an electorate already inflamed by the income tax hike and the seeming inability of the state government to get its act together, and it’s obvious why this thing never had a chance with Quinn.
That’s not to say there wasn’t an effort to come to an agreement. ComEd did bow to a Quinn demand to insert language allocating $50 million to help seniors and the poor. However, that money was included in the company’s original plan and was only pulled at the last moment during the spring legislative session.
Quinn’s administration and others, including AARP and the attorney general, never really believed that the company was negotiating in good faith this summer. For example, ComEd wants to use a form from the Federal Energy Regulatory Commission to report costs and expenditures instead of continuing to use the Illinois Commerce Commission’s form.
There are only minor differences between the two forms, but the governor’s office and its allies are convinced that ComEd wants the change for nefarious purposes. The company reportedly wants the change because it fears the ICC, which opposes the smart grid bill, will exact its revenge by changing the form.
The company’s opponents say the smart grid stuff is just a ploy to increase profits on other aspects of the company’s business. A statement earlier this year by the chief executive of Exelon, ComEd’s parent corporation, seemed to disparage the smart grid by consigning it to pilot project status. Company officials now say that a recent pilot project was so encouraging that it is firmly behind the technology.
Despite all the political problems, ComEd executives firmly believe they can override the governor’s veto. They have a list of companies that will expand in Illinois if the smart grid program moves ahead and have offered to spend $150 million to prevent outages.
The company claims that it’s close to a three-fifths majority in both the House and Senate. After the veto is overridden, ComEd wants to pass a “trailer bill” to address what it considers to be legitimate concerns by legislators, including Senate President John Cullerton (D-Chicago).
Quinn reportedly will use his bully pulpit and meetings with legislators to prevent an override, in much the same way he blocked passage of the concealed-carry bill earlier this year.
Senate President Pro Tem Don Harmon (D-Oak Park) is in charge of crafting the trailer bill and said he wants a legislative solution, not necessarily a ComEd solution. That’s encouraging. The bill’s two legislative sponsors last spring were far too close to the utility for comfort’s sake. One has a father who lobbies for ComEd, and the other is widely rumored to be planning a career as a lobbyist.
I have supported the smart grid for a very long time. Upgrading our infrastructure gives our businesses a competitive advantage over other states and other countries, and the electric grid is a hugely integral component of our infrastructure.
But I totally understand why people don’t trust ComEd. There’s a good reason why it has to hire a battalion of lobbyists every time it tries to pass a bill. Yet opposition shouldn’t be totally knee-jerk. Denying the company a decent return on its legitimate investments won’t help us move forward.
Harmon needs to wrest control of this process away from both ComEd and grandstanders like Quinn to come up with a bill that’s good for all of Illinois. Everybody should have input, but nobody should dictate the outcome. We need to accept the hard fact that infrastructure improvements aren’t free, but we shouldn’t just be padding corporate bottom lines without specific, hard guarantees that our state will be moved significantly forward.
* Related…
* Bill to raise electric rates may override Gov. Quinn veto: [Rep. Robert Pritchard (R-Hinckley)] said the rate increases are warranted because ComEd is putting $3 billion of its own money into the bill.
* Press Release: New Poll Reveals Illinois Residents Support Strong Lighting and Appliance Efficiency Standards: Voters strongly support the federal government setting minimum energy efficiency standards for various household products with 68 percent in favor for appliances to only 22 percent opposed; and 69 percent in favor for light bulbs to only 25 percent against.
* GridWeek: Reactions to Smart Grid Veto in Illinois
* Editorial: Share cost
of smart grid: Instead of seeking to round up four more votes in the Illinois House and five more in the Senate to override Quinn’s veto, the utilities should work to come up with a plan that calls for them to accept a fairer share of the risk inherent in such a large project. It also should reflect the reality that improved infrastructure should be part of any multibillion-dollar upgrade to the system.
* ComEd reps seek to clarify vetoed rate-hike plan
* ComEd officials get an earful at forum: “You’re treating us like Cubs fans,” said James Toler, a resident of the village’s northeast side, analogizing ComEd service to Cubs management: promising to do better each year, but coming up short.
* Elmhurst Aldermen Consider Hiring Outside Expert to Assess Power Grid - Task force, legislators ask for more direction.
* Problem Solver: ComEd bill, service both register zero - South suburban resident says electric company ignored pleas to fix her broken meter
* Power out for several hours after driver hits Aurora pole
* A Marshall Plan to Build a Smart Grid — in China
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ICC Alternative to SB 1652 doesn’t add up
Tuesday, Sep 20, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
Chicago Tribune editorial (September 13, 2011)
“[The ICC proposal] would wrap grid modernization in a familiar ball of red tape. It wouldn’t give utilities an incentive to invest in major technology upgrades. It’s pretty much a nonstarter.”
If that doesn’t say it all, there’s more
The ICC proposal only addresses half of the costs of grid modernization.
This means…
Consumers pay more.
The proposal keeps utilities stuck in the stop-and-start process that’s prevented efficient, long-term grid modernization.
The jobs benefit is virtually lost
Job creation requires long-term infrastructure planning.
Reliability benefits are gutted.
Reliability gains mandated in SB 1652 will be gone for lack of multi-year planning.
Accountability is removed.
Utilities can’t commit to performance standards without more predictable cost recovery.
SB 1652 is a better policy.
• It creates the most progressive, accountability-based regulatory model in the country, protecting consumers in ways the current law does not.
• It’s supported by a diverse cross-section of business groups, labor unions, environmental organizations and high-tech advocates.
• Independent policy experts support the bill, including Ray Romero, former ICC commissioner; Ken Costello, former ICC economist; and John Kelly, Galvin Electricity Initiative.
For more information, visit www.SmartEnergyIL.com.
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It’s not what you think
Tuesday, Sep 20, 2011 - Posted by Rich Miller
* Gov. Pat Quinn yesterday announced a big “new” Illinois wind project…
During his visit to Beijing today, Governor Quinn announced that Goldwind, one of the largest wind turbine manufacturers in the world, will build a $200 million wind farm in Lee County, Illinois. The company will break ground on the Shady Oaks project later this fall. Once online, the project will provide 109.5 megawatts (MW) of power, and create more than 100 construction and a dozen permanent maintenance jobs in Illinois. According to the American Wind Energy Association, one megawatt of wind energy can provide enough electricity to meet the needs of 225-300 households. Therefore, 109.5 MW can provide the electricity needs of approximately 25,000 homes.
OK, so maybe the official ground breaking will occur later this fall, but according to the LaSalle NewsTribune the project has been underway since 2005, and construction began in earnest last spring…
Englehart, Zimmerman and her brother, Alan, are among landowners that signed on to the project back in 2005 when GSG Wind Energy of Sublette started the development. The project was then sold to Mainstream Renewables which in turn partnered with Goldwind USA late last year. The project was then fully acquired by Goldwind, a company that got its start by constructing wind turbines in China. The 120-megawatt Lee County wind farm is the first large-scale project undertaken by the company following a 4.5-megawatt pilot project in Minnesota.
There have been quite a few complaints about what the wind farm is doing to local farmland, but the company is obligated to compensate farmers for any losses, and nobody was ordered to sign those contracts.
* And the governor’s gross exaggeration doesn’t mean the trip isn’t worthwhile…
Among those going with the governor is Rockford Mayor Larry Morrissey. Quinn said the trade mission will encourage companies such as Wanxiang America Corp, which recently opened a $12.5 million, 40,000-square-foot plant that makes solar panels in Rockford, to bring more business to Illinois. Wanxiang is one of the top 500 companies in China and its Rockford plant is the largest solar panel manufacturer in the Midwest.
“They are investing strongly in creating jobs in solar technology, and we want to encourage that,” Quinn said.
Also, keep in mind that Indiana’s governor and/or his lt. governor have traveled to China every year for a number of years. Illinois can’t afford to just sit back here.
* Meanwhile, an online survey of just over 300 people is getting some big media play…
llinois now ranks among the states with the worst business climates, according to a survey of business executives and site-selection consultants.
Illinois comes in third from the bottom, before California and New York, in the survey of more than 300 respondents by Development Counsellors International, a New York-based consulting firm that specializes in economic development.
Illinois was not among the worst states three years ago. But its business climate took a hit this year when Gov. Pat Quinn approved an increase in the state’s tax on corporations, to 9% from 6.8%, moving past Michigan, New Jersey and Massachusetts to the bottom of the pile.
Actually, only 72 corporate executives took the online survey, and almost 20 percent of those weren’t “C-Level.” The rest were location advisors/consultants…
The survey was conducted completely online. Respondents were contacted via email and invited to participate in the survey. A hyperlink to access the online questionnaire was provided and the choice of a $10 Starbucks Card or a $10 iTunes Card was offered for participation.
* And despite what the stories are telling you, the respondents were asked for their “perceptions” of best and worst state climates…
It is important to note this survey, and all preceding “Winning Strategies” surveys, are studies of perceptions. A perception is an attitude, belief or impression and not necessarily a reflection of reality. Business executives have certain identifiable opinions and beliefs about doing business in the United States and throughout the world. Some of these perceptions may be accurate and some may be genuine misperceptions.
Look, there’s no doubt that Illinois has real problems. But if a CEO makes a siting decision based on “perceptions” alone, then that CEO is pretty darned stupid. And considering how many corporations are actually headquartered in these bottom five states, there’s a real problem with how this survey was both conducted and portrayed…
The Top Five
1. Texas 49.4%
2. North Carolina 27.8%
3. South Carolina 14.3%
4. Tennessee 13.9%
5. Florida 13.5%
The Bottom Five
50. California 70.5%
49. New York 46.5%
48. Illinois 24.4%
47. New Jersey 23.5%
46. Michigan 16.1%
* It also appears that media habits are driving those “perceptions”…
* The Wall Street Journal (both the print publication and WSJ.com) and the Fox News network ranked among the top news sources for the survey audience.
Both of those media outlets have regularly pummeled Illinois, and as long as Democrats are in control here, there’s little hope that the beatings will ever stop.
* In other news, this infighting between states is getting way out of hand. Check out a story from today’s New York Times…
Pearson Education could teach someone a few things about how to play one state off against another.
The educational media company, a division of the corporation, based in London, that publishes The Financial Times, said Monday that it would move about 650 jobs to Manhattan from suburban offices in New Jersey and Westchester County. Some of the cost of moving will be offset by at least $13.5 million, and possibly as much as $50 million, in tax breaks and other incentives offered by city and state agencies in New York.
City officials framed the arrangement as a victory over New Jersey officials, who have been offering large packages of financial incentives to attract and retain big employers. But just last week, New Jersey agreed to provide $82 million in cost savings to Pearson, which plans to take more than 1,200 jobs out of Upper Saddle River, N.J., by 2014 and send more than 600 of them to Hoboken, N.J. One of the stated reasons for New Jersey’s largess was to keep all those jobs from going to Manhattan.
So, to recap: Pearson could receive as much as $132 million in incentives for deciding to move half its Upper Saddle River jobs to Manhattan and the other half to Hoboken. But the net gain in jobs for the New York metropolitan area would be close to zero. And still, officials on both sides of the Hudson River seemed quite pleased with the deals they had struck.
Sheesh.
* Related…
* Illinois Leads A+ Debt Poised to Rally on Widening Yield Gap
* China calls on U.S. to create better environment for business cooperation: Wang made the remark during a meeting with Pat Quinn, the governor of Illinois, a U.S. state that has many cooperative programs with China. “The governments of both countries should help solve problems related to local cooperation through practical action and create a good environment for substantial cooperation between companies, as this will promote employment and economic growth in both countries,” Wang said.
* Finke: Even vocal critics keep quiet about Quinn’s China trip
* Editorial: Good luck, governor, on trade mission<
* Motorola hunting for office space in Chicago: “I do believe a healthy Chicago makes for a better business environment. And I do believe in Rahm. He’s an action-oriented guy who swings. He doesn’t study. He’s relentless and evangelical in his determination to make Chicago more relevant and more current.”
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