The rule to show cause that issued to respondent Rod R. Blagojevich on September 6, 2011. pursuant to Supreme Court Rule 77 4 is enforced, and respondent is suspended from the practice of law effective immediately and until further order of Court.
* I’m going to be pretty busy for the rest of the day, so most veto session updates will be in the live blog from now (noonish) on. So, click here to keep track of stuff.
“Our staff has been working with (Quinn’s) staff to put together his ideas into real form. And all of his concepts will be put exactly into a bill form, exactly the way he wants it so it will be his bill that I will be presenting,” Link said.
* Despite Link’s claims, Gov. Quinn derided any effort to bring his ideas to the floor for a vote…
“We don’t need any charades. What we need is the Senate, which passed the bill on the 31st of May, to send the bill to the governor. Stop the game-playing, stop the delays or whatever else they’re doing over there.
“They passed their masterpiece on May 31. Bring it on. Make my day. And I’ll be happy to examine that bill and use the power of the governor’s office and the executive branch to send them how I feel about their bill.”
*** UPDATE 1 *** From the governor’s press office…
Hi Rich,
The bill that was introduced today is not a serious effort to address the Governor’s concerns about Senate Bill 744.
This is not “the Governor’s bill.” Instead of improving their current bill and having good faith discussions within the Governor’s framework amongst the House, the City of Chicago, the racing industry, the Gaming Board, and the Governor’s Office, some have chosen to put on a charade.
The Governor announced a framework – not a bill- for any gambling expansion last week. He will support a smaller, more moderate gambling expansion that prevents corruption and provides adequate revenue for education.
Governor Quinn looks forward to moving past the political games and towards sincere negotiations to reach a legitimate proposal that meets the framework he laid out to protect the interests of the people of Illinois.
*** UPDATE 2 *** From Senate President Cullerton’s spokesperson…
What part of 747 inaccurately reflects the Governor’s framework? Staff took care to consult with the Governors staff to ensure that the draft was an accurate interpretation of the Governor’s press packet.
The failure of the Governor to appropriately engage the legislature by submitting an actual bill for consideration brings us to the point we are today.
“The governor was making phone calls trying to get people supporting this before we even had a bill written, so he was already making phone calls and I think he already felt that there was a lot of people out there who didn’t have the willingness to vote for his concept,” Link said. “The governor probably knows the roll call already, and that’s why he’s denouncing it and saying ‘this is not my bill.’ Well, governor, if you really want something, sit down with us and work on it.”
[ *** End Of Updates *** ]
* The Question: As long as the Senate bill accurately reflects the governor’s wishes, do you think it’s proper to bring this gaming legislation to the floor for a vote? Take the poll and then explain your answer in comments, please. Thanks.
*** UPDATE 1 *** HB3036, the “Smart Grid” trailer bill just passed the House 91-24 without debate. The bill now goes to the governor.
*** UPDATE 2 *** Apparently, some House members didn’t realize what they were voting on because several have risen in the past few minutes to ask that the journal be changed to reflect a “No” vote.
Quinn, Illinois Attorney General Lisa Madigan, the Illinois Commerce Commission, the Citizens Utility Board, AARP and other critics say the bill would set ComEd profits at about 10 percent and could go higher.
But there is no comparable guarantee for ratepayers. A provision that their total bills won’t go up more than 2.5 percent lasts only two years.
ComEd and its Downstate counterpart, Ameren, have been fighting hard for this bill. ComEd argues that the new system outlined in the legislation would encourage the utility to invest in a better electrical system instead of just trying to keep its existing system running. And ComEd officials emphasize that they will be required to meet performance measures to get their full profits, though critics say the measures will be so easy to meet they are virtually worthless.
We viewed this legislation with skepticism, and only now embrace it. We thought the formula for return on equity was too rich in favor of the utilities. With Tuesday’s trailer bill, it’s whittled down to a more reasonable level. We thought the requirements for hardening the grid against future storm outages were inadequate. The trailer bill addresses that too. ComEd even revived a good idea for a fund to cushion the impact of higher rates on the elderly and poor. As the legislation underwent a rigorous review, it got better. That’s how the legislative process is supposed to work.
If ComEd and Ameren do manage to pass this legislation, they take on a very significant commitment. The bill requires them to bring the state’s power system into the 21st century. But like all bills, it provides only a framework. The success or failure of the new law will come down to how the utilities implement it. They need to maximize the benefit to their customers. They need to deliver on the many important promises they’ve made. All of us will need to hold them accountable.
* My own opinion is the governor should’ve been far more involved in the process and tried to cut the best deal possible for consumers, without all the demagoguery…
The Illinois Senate torpedoed what had been the governor’s No. 1 priority in the fall veto session, voting 37-10 to approve legislation sought by Commonwealth Edison that was part of a $2.6 billion rate-increase package.
The margin signals that senators have the votes to override Quinn’s veto of the main package.Shortly before Tuesday’s vote, the governor appeared before reporters, churning out sound bite after sound bite in a furious tirade against the utility company and rank-and-file legislators who pocketed its campaign contributions.
“There’s no way to put perfume on this skunk, and that’s what it is,” the governor said, referring to the legislation sponsored by Sen. Don Harmon (D-Oak Park) that won Senate backing a short time later.
The governor derided ComEd’s so-called “smart-grid” legislation as a “smart-greed” bill and condemned “legislators with three loaves of bread under each arm, all the campaign donations they’ve gotten from the utility companies.”
“It’s harmful to the public and the public interest,” the governor said.
The governor said Illinois utility companies including ComEd are trying to ram the so-called Smart Grid Bill down the throats of rate payers. He accused the companies of using lobbyists and money to convince a majority of state lawmakers to vote yes.
“We have some legislators who have three loaves of bread under each arm, all the campaign donations they’ve got the public interest,” Gov. Quinn said.
* The House sponsor of the original ComEd bill was not amused…
State Rep. Kevin McCarthy, D-Orlando Park, who is shepherding SmartGrid through the House, said Quinn is coming close to insulting lawmakers with his talk of loaves and campaign donations.
“Trying to imply that because a person got a contribution that that’s going to stop and make them (change their vote), that shouldn’t be in the discourse,” said McCarthy.
Nearly half the city would fall into so-called safety zones where speed cameras sought by Mayor Rahm Emanuel could flag fast drivers for $100 tickets, according to a Tribune analysis of camera legislation in Springfield. […]
The measures, one sponsored by Senate President John Cullerton, D-Chicago, and the other by House Speaker Michael Madigan, D-Chicago, would render about 47 percent of the city eligible for speed camera surveillance, the analysis found. As originally introduced last week, Madigan’s bill would have covered about 75 percent of the city, but he promised Tuesday to scale it back.
* As mentioned above, Madigan wants it scaled back…
But Madigan, saying he was responding to complaints aired by Republicans on that Senate panel, said he would revise his bill to restrict camera use to between 6 a.m. and 10 p.m. around schools. Near parks, speed cameras could be flicked on one hour before the park opens and stay on until one hour after it closes, Madigan said.
Last spring, the Chicago Department of Transportation collected speed information at seven existing red-light camera intersections within one-eighth of a mile of schools and parks and found that 25.7 percent of the 1.5 million vehicles — 360,000 drivers — were traveling above the 30 mph speed limit, officials said.
“This is about deterrence. I want our kids to get to school and be in schools safely,” the mayor said.
“I have a set of policies already put in place on the curfew, more cameras in schools, raising the fines for those who have guns near schools. And I want to make sure that people driving near a school or a park have a deterrence.”
Police Supt. Garry McCarthy said that pedestrian deaths in Chicago are 68 percent higher than in New York City, with the overwhelming cause being a failure to yield.
* Gov. Pat Quinn was asked about the legislation yesterday and said he wanted to make sure the proposal wasn’t being used merely as a revenue generator…
State records show Redflex has hired the influential lobbying firm of Fletcher, O’Brien, Kasper and Nottage, P.C., to push its interests in Springfield. One of the firm’s named members, attorney Michael Kasper, is the general counsel and treasurer of the state Democratic Party that Madigan runs. Kasper was also hired by Emanuel to beat back several residency challenges that threatened his mayoral run.
* House Speaker Michael Madigan unveiled a joint resolution yesterday which attempts to inject the General Assembly into upcoming state labor negotiations…
Madigan introduced a resolution that would empower the Legislature to have input into raises that may be part of upcoming collective-bargaining talks between Quinn’s administration and the American Federation of State, County and Municipal Employees.
In a jab at Quinn, Madigan’s measure also states that no-layoff pledges, like the governor’s “side agreement with AFSCME,” can’t be part of collective-bargaining discussions.
“Gov. Quinn gave that away. I don’t think he should do that, and that’s why we recite in this resolution that should not be done,” said Madigan, chairman of the state Democratic Party.
Madigan said the state faces tough budgets for years to come, and much of the spending in those budgets will be employee salaries. The resolution states that payroll for AFSCME members alone in the current budget year would have been more than $2.76 billion had lawmakers not cut personnel expenses.
The resolution also states that cost of living increases for AFSCME members have averaged 4.25 percent a year over the past five years. From 2007 to 2010, the resolution says, the consumer price index has increased an average of 1.95 percent a year.
“We have a choice. We can stand on the sidelines and let those people go off and do what they do and send us a bill,” Madigan said. “Or, we can interject ourselves now and be present through the negotiations.”
[Resolved…] the State shall appropriate for no more than an X% increase for wage increases associated with any and all collectively bargained contracts throughout State government; and be it further
RESOLVED, That it shall be the policy of the State of Illinois that the size of, or a reduction in, the State employee workforce shall not be a topic of collective bargaining.
Madigan implied Quinn and his aides — or “those people” — can’t be trusted to negotiate financially realistic contracts. Instead, lawmakers should play a role so that they don’t get any nasty surprises.
“We can stand on the sidelines, let those people go off and do what they do and send us a bill, or we can interject ourselves now and be present through the negotiations so that our position is known and understood as those people are bargaining,” Madigan said told fellow lawmakers.
Madigan said a House committee will determine an acceptable percentage for union raises in the next contract and then vote on the resolution before the Legislature adjourns its fall session next month. Senate President John Cullerton, D- Chicago, said he wants the two chambers to work together on the issue and he would review Madigan’s plan.
Quinn spokeswoman Brooke Anderson called Madigan’s resolution “an interesting suggestion.”
“Instead of stirring resentment toward working people and weakening their rights to bargain collectively, Illinois politicians should focus on fixing a tax structure that has never made rich people and big corporations pay their fair share,” said AFSCME spokesman Anders Lindall. “It’s wrong to shift blame from the tax-ducking 1% and the recession they caused to the middle class wages of average working people who care for veterans and the disabled, protect children and keep prisons safe.”
Wednesday, Oct 26, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
We know what ComEd and Ameren have been saying about SB1652, but what have your constituents been saying on the issue?
On October 11th a statewide survey was conducted with 800 registered voters in Illinois on SB1652. Check out the results:
· 70% responded that their electric service was reliable.
· 69% responded that they would be against an annual increase in their electric bill to improve reliability and prevent power outages.
· 50% responded that they consider their electric bill too high.
· 47% responded that SB1652 should be “amended to protect consumers” AND, without being prompted, 26% said “don’t pass anything”.
· 52% responded that they would be “not likely at all” to vote for a candidate who allows electric utilities to raise rates annually – and 21% would be “somewhat less likely” to vote for a candidate who allows electric utilities to raise rates annually
· 10% responded “State Legislature” when asked, between the State Legislature and the ICC, which group best represents their interests in regulating electric utilities.
AARP urges you to listen to your constituents and uphold the Governor’s veto of SB1652.
* The Senate’s is scheduled to convene at 9 o’clock. Video/Audio here. The House convenes at 10. Floor and committee Video/Audio is here.
As always, BlackBerry users should click here. Everyone else can kick back and watch. Also, if you’re using an iPad or iPhone, you need to use two fingers to manually scroll down. Click here for a quick demonstration video.
I’ll start things off with a few amusing Tweets from late yesterday and last night then move on to the current stuff…
Wednesday, Oct 26, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
A big step forward for an antiquated power system
Chicago Tribune Editorial – October, 26, 2011
“…a plus for Illinois businesses and citizens. We support it.”
“…This measure coupled with the changes offered in the trailer bill offers the best way available to secure the power system that Illinois needs for the future.”
“Right now, Illinois relies on century-old electro-mechanical controls that are inexcusably dumb. Upgrading to interactive, digital technology would enable customers of all sizes to buy and use electricity more efficiently.”
“…a good idea for a fund to cushion the impact of higher rates on the elderly and poor.”
“As the legislation underwent a rigorous review, it got better. That’s how the legislative process is supposed to work.”
* Emil Jones is a Cub fan, but for once in somebody’s life that may be a good thing…
Emil Jones Jr., the head of the Illinois Sports Facilities Authority, told Crain’s Chicago Business this week that the agency is considering upping the amount the Sox pay in rent — currently $1.5 million annually.
“If you compare (lease terms) to other sports stadiums around the country, the Sox pay the lowest rent of all the facilities,” Jones told Crain’s. “It’s something we’ll be looking at.” […]
Questions about the lease payments come as the Sox prepare to open a new team store, and just a few months after the organization opened up the Bacardi at the Park restaurant — both built on state-owned land, Crain’s reported.
I’m a Sox fan, but I have no problem upping the team’s rent. That Bacardi at the Park restaurant did gangbuster business this year. It sits on taxpayer property, so the Sox ought to pay.
* And while this is being portrayed as sleazy, it’s pretty standard procedure for the opposition (ComEd/Exelon), and at least somebody is doing something for the state, unlike CME Group, which wants a huge tax break without offering up anything in return…
Tenaska Inc., the Omaha, Neb.-based company trying to win enough votes in the Legislature for its planned “clean coal” power plant in Downstate Taylorville, has agreed to set up a $30-million foundation providing scholarships to disadvantaged minority students if the bill passes.
It’s actually a million dollars a year, not $30 mil all at once, and the foundation won’t be set up until after the plant is online, not when the bill passes.
The obvious danger is that legislators will try to use this to supplement the much-maligned legislative scholarship program. And unlike that state program, the Tenaska scholarships could be hidden from the public.
* Speaking of the CME Group, some opposition from traders is developing to its big tax break…
After months of negotiations with Governor Pat Quinn and state legislators, the exchanges appear to have clinched a tax cut for electronic trades, which account for the bulk of their trading. […]
Just 11 percent of CME trading takes place on its two trading floors, one in Chicago and the other in New York. […]
Floor traders queried on Tuesday said the way the tax break is structured makes them nervous, because trading is already migrating away from open outcry and to the computer screen. If electronic trades get a tax break, they said, exchanges will have even less of a reason to promote face-to-face trading.
“It’s just another nail in the coffin for the floor,” said Chess Obermeier, a veteran corn options broker and trader at the Chicago Board of Trade. While nearly all CME futures are traded electronically, about 70 percent of options are still bought and sold on the trading floor. […]
“It’s not going to have a big impact on us but it keeps pushing the momentum away from the pit.” [Obermeier] said.
“We want to keep CME in Illinois, but we also want to keep small and medium-size business that are also suffering,” said Patty Schuh, spokeswoman for Senate Republican Leader Christine Radogno.
Radogno is scheduled to meet with legislative leaders and Illinois’s Democratic Governor Pat Quinn later this week, “so that we can collectively fix the problems,” said Schuh.
It’s unclear what Cullerton will do next to push the bill through the General Assembly. The exchanges threatened to move key operations and perhaps thousands of jobs to a more tax-friendly state after the Illinois legislature in January raised the corporate income tax to 7%, from 4.8%.
Cullerton had expected executive committee approval on Tuesday and consideration by the full Senate on Wednesday.
The bill also includes an extension of the state’s research and development tax credit for businesses, which is expiring. That addition will cost the state another $25 million to $30 million a year in tax revenue, bringing the bill’s total annual cost to the $90 million range.
The Republicans object to the way that provision was drafted as well, Schuh said.
Mr. Cullerton’s office says the break would save CME $60 million and CBOE around $6 million. In addition, to lure Downstate votes, the measure also contains a clause that would revive the recently expired corporate tax break for research and development, costing another $25 million to $30 million or so.
And those figures could be low.
As I told you yesterday, the governor’s office says the figure is upwards of $100 million. Cullerton claims the governor’s office is wrong.
*** UPDATE *** Oops. I forgot to post this video of Gov. Quinn responding to a question about the CME proposal. He was noncommittal…
The battle over the proposed 15-year extension of tax breaks to Sears Holdings Corp. continued to rage Tuesday, with School District 300 unveiling a proposal that would allow it to receive a bigger share of property tax revenue from the corporate development than currently under consideration.
The district now receives close to $3 million a year from the development, which it says is far short of the $14 million it would receive annually if the tax break expires and Sears stays put. The district is proposing a structure in which it would get about $12 million a year.
Under a plan being developed by Sen. Dan Kotowski, D-Park Ridge, it likely would get less, more in the neighborhood of $6 million.
[Sen. Kotowski’s] three-pronged plan would charge Sears a penalty if it left the state and require the company to keep more than 4,000 jobs in the area (the current EDA agreement calls for 2,500, and the amendment to Senate Bill 540, 4,000). It also would make sure the school district would “at least get double the amount of money they are receiving” from the EDA, he said.
We’ll save the ComEd/Ameren bill for a separate post.
* Related…
* Tenaska plant to get another look from legislators
* Hoffman Estates confident in Sears fight despite D300’s Springfield visit
Wednesday, Oct 26, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
When the biggest utility in Illinois opposes competition and wants to protect billions in extra profits, they’ll gladly trample the truth if it gets in their way.
They support a so-called coalition that will stop at nothing and say anything, even if it’s not true.
STOP Claim: “Taylorville Energy Center electricity will cost SEVEN times market price.”
The Truth: In a cynical attempt to manipulate lawmakers, STOP wants to compare a price that includes 30 YEARS OF INFLATION with today’s historically low market prices. It’s like comparing the price of gas at the pump today with what we’ll pay on average between now and 2041.
STOP Claim: “Tenaska wants Illinois consumers to pay even if their plant produces no power.”
The Truth: The legislation was changed six months ago at the request of ComEd so this remote possibility could never happen. Which part do STOP and ComEd not understand?
STOP Claim: “We don’t need any new baseload. The speculation on the closure of baseload plants is just that, it’s speculation.”
The Truth: 239 coal plants (40 GIGAWATTS) have already announced they will close because of the new EPA rules. Industry analysts expect Illinois to lose up to HALF of its coal plants, which currently provide 45% of Illinois electricity.
AG Madigan, Senator Durbin, CUB and a diverse coalition from around the state know the truth which is why they’re supporting the Comprehensive Energy Efficiency and Investment Act, SB 678.
Wednesday, Oct 26, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
The Illinois legislature is expected to consider SB 678 that would force Illinois families, businesses and government agencies to pay up to seven times today’s market price for electricity to build Tenaska’s Taylorville Energy Center (TEC).
Illinois should learn from Indiana’s disastrous experience with a coal-gasification plant in Edwardsport, Indiana – similar to what Tenaska wants to build – and reject the TEC.
The Indiana plant has been in construction since 2008 and is still not complete. Its owners originally estimated the cost to be $1.98 billion, but the project has suffered numerous construction and engineering setbacks resulting in huge cost overruns. The project’s scope and complexity have driven costs up to a currently estimated $2.98 billion – a full $1 billion over budget! This includes a filing last week that upped the costs an additional $220 million.
Even if Tenaska’s TEC were built on schedule and on budget, it would still cost Illinois families, businesses, and government agencies up to seven times today’s market price for electricity for the next 30 years. And as Indiana’s experience shows, it could be far worse!
Tuesday, Oct 25, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
When the biggest utility in Illinois opposes competition and wants to protect billions in extra profits, they’ll gladly trample the truth if it gets in their way.
They support a so-called coalition that will stop at nothing and say anything, even if it’s not true.
STOP Claim: “Taylorville Energy Center electricity will cost SEVEN times market price.”
The Truth: In a cynical attempt to manipulate lawmakers, STOP wants to compare a price that includes 30 YEARS OF INFLATION with today’s historically low market prices. It’s like comparing the price of gas at the pump today with what we’ll pay on average between now and 2041.
STOP Claim: “Tenaska wants Illinois consumers to pay even if their plant produces no power.”
The Truth: The legislation was changed six months ago at the request of ComEd so this remote possibility could never happen. Which part do STOP and ComEd not understand?
STOP Claim: “We don’t need any new baseload. The speculation on the closure of baseload plants is just that, it’s speculation.”
The Truth: 239 coal plants (40 GIGAWATTS) have already announced they will close because of the new EPA rules. Industry analysts expect Illinois to lose up to HALF of its coal plants, which currently provide 45% of Illinois electricity.
AG Madigan, Senator Durbin, CUB and a diverse coalition from around the state know the truth which is why they’re supporting the Comprehensive Energy Efficiency and Investment Act, SB 678.
The Post-Dispatch also found that the votes of legislators generally tracked with where they got their money: Those who received primarily horse racing donations this year supported the expansion bill by a roughly 2-to-1 margin in the May floor votes of the Illinois House and Senate. Those who primarily received money from the existing casinos ended up voting against the bill by roughly the same margin.
“Either legislators are for sale, and they looked around at who gave to them for how to vote … or the givers looked to the friendly legislators” and rewarded them, said the watchdog group’s David Morrison.
Either way, he said, “Whenever there is an industry that relies on a state license to exist, there is a case to be made” for banning political contributions from those entities.
The state licenses a whole host of professions and industries. Realtors, doctors, beauticians, truckers, stock brokers and on and on and on.
* The Question: Should everyone with a “professional” state license be barred from contributing to campaigns? Take the poll and then explain your answer in comments, please.
* The Jacksonville area was a hotbed of tea party activity last year. But most of the thousand people who showed up at a meeting last night opposed the closure of the state’s Jacksonville Developmental Center…
Dozens of people had their voices heard and about 1,000 made there presence felt at a public hearing Monday night concerning the proposed closure of the Jacksonville Developmental Center.
At the meeting, representatives of the Illinois Commission on Government Forecasting and Accountability heard testimony from about 90 speakers both for and against the closure of JDC.
Now that the public hearing has been held, the next step is for COGFA members to meet and make a recommendation on whether or not to close the center.
But after months of demonstrations in neighboring Wisconsin, Illinois’ labor movement finds itself in a similar face-off, regularly comparing Quinn to Gov. Scott Walker, who signed a bill in March stripping Wisconsin public employees of certain collective bargaining rights as a way to balance that state’s budget. Quinn faces $3 billion in unpaid bills and a dangerously under-funded pension system.
“We don’t give an inch to Quinn’s legal argument that he should be able to void collective bargaining agreements now or anytime in the future, just because he finds it inconvenient or the General Assembly didn’t do its job,” said Anders Lindall, spokesman for AFSCME Council 31.
Lindall said his organization will lobby lawmakers during the veto session for a supplemental appropriation of about $300 million to keep the facilities open that Quinn announced last month he would shutter. Three mental health centers—Singer in Rockford, Chester in southern Illinois and Tinley Park Mental Health Center—are slated for closure, along with a youth prison in Murphysboro, Logan Correctional Center in Lincoln, and two centers for the developmentally disabled in Jacksonville and Jack Mabley in Dixon.
The money, union members say, could come from a pot of “savings” Quinn created this summer by using his veto pen to reduce spending in certain programs, including Medicaid. Some lawmakers, however, say that money must be spent on the state’s overdue bills.
The fastest recovery in state revenue since 2006 is helping bonds backed by dedicated taxes outperform general-obligation debt by the most in a year. That’s allowing Illinois, tied with California for the lowest credit rating, to borrow $300 million at the top grade. […]
“They aren’t going to look just at the ratings,” Hoogendoorn said. “They’ll look at ample amounts of revenue backing it. How likely is this bond to be paid off in a stressed scenario? The reality is there is very, very good coverage.”
The $300 million of sales-tax bonds are being sold under the Build Illinois program, created in 1985 to fund infrastructure, transportation, education, environmental- protection and business-development projects. […]
“This is a triple-A-rated piece of paper,” Sinsheimer said. “These bonds are not impacted by the pension issues.”
* Closing arguments are underway this morning in Bill Cellini’s federal trial. BlackBerry users click here. Everybody else just kick back and watch the show…
* Aside from keeping Chairman Jaffe on board, this was somewhat of a surprise move…
Gov. Pat Quinn is replacing everyone on the Illinois Gaming Board except the chairman, an advocate for strong regulation of gambling.
Quinn said Monday that under Chairman Aaron Jaffe, the board “has increased openness and transparency” in the gambling industry.
In a statement, the Democratic governor did not say why he was getting rid of the rest of the board. His office did not immediately return a message seeking comment.
Jaffe faces a major confirmation battle, mainly because he all but called legislators corrupt for passing the gaming expansion bill. I’m not sure about the others…
Maribeth Vander Weele of Chicago is the owner and founder of the Vander Weele Group, which provides investigative, security and integrity program services to the public and private sectors. She is also a certified Illinois inspector general with a strong financial and oversight background that includes service on the audit committee for Chicago Public Schools.
Lee Gould of Chicago has more than 30 years of experience as an accountant, auditor and tax preparer. Gould specializes in forensic accounting investigations, locating unreported or hidden assets and identifying misappropriations. Gould holds a degree in accounting from UIUC and a J.D. from the Loyola University of Chicago School of Law.
Michael Holewinski of Chicago is the president of Ace Industries and is a former Illinois state representative. He sits on the board of directors for the Illinois Manufacturer’s Association and previously chaired the Chicago Mayor’s Task Force on Youth Crime Prevention. He holds a J.D. from the John Marshall Law School.
Z (Zaldwaynaka) Scott of Chicago was Illinois’ first executive inspector general and previously worked as a criminal prosecutor in the U.S. Attorney’s Office in Chicago. She is currently a partner at Kaye Scholer and a commissioner for the Chicago Housing Authority.
The report also alleged job descriptions were changed to hire politically connected candidates chosen for positions before the jobs were posted publicly.
“It’s been common practice to put your buddies into jobs. But supposedly this governor was going to change all that, but all he did was perfect it,” state Sen. Gary Dahl, R-Granville.
* Speaking of gaming expansion, the Senate’s sponsor of the gaming bill told reporters yesterday how he intends to proceed. He said he hasn’t had any direct contacts with the governor’s office about the bill. He said he’ll be carrying the governor’s bill, and predicted Quinn’s proposal would receive at least two more votes than Rod Blagojevich’s GRT bill because he and Senate President Cullerton would be voting for it. Watch…
* Back to appointments, the governor also dumped a critic of the Tollway expansion program yesterday…
Illinois Gov. Pat Quinn dumped Bill Morris, a former mayor of Waukegan, from the Illinois Tollway Board. Morris was, by far, the most critical of all the Tollway Board members when Gov. Quinn pushed for the unpopular raising of the tollway fees. The Board voted to raise the fees this past summer.
Besides showing Morris the exit door, the governor also saw it fit to tell George Pradel, who is the long-time mayor of Naperville, to get out, too.
The Board has nine members, and it will now include new member Mark Peterson who is the director of the Illinois Sports Facilities Authority and the president of Bridgeview Bank. In addition to Peterson, Quinn named other new members who are Jim Sweeney who is the president and business manager of International Union of Operating Engineers Local 150, Chicago Heights Mayor David Gonzalez, DuPage County Board member and lawyer Jeffrey Redick, and businessman Terrence D’Arcy who is the president of D’Arcy Buick and GMC which is located in southwest suburban Joliet.
Morris was moved to the Illinois Liquor Control Commission.
Tuesday, Oct 25, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
Three Simple Facts About SB 1652
1. SB 1652 Gets Illinois Moving Again
• Creates 2,000 jobs building a modern grid.
• Establishes a training center for utility workers with skill-building in areas such as pole climbing and cable splicing.
• Generates economic growth by infusing money and energy into the burgeoning energy-tech cluster.
• Creates a $20 million, utility-funded, Science and Energy Innovation Trust to foster innovation and support high-growth, energy related Illinois companies.
2. SB 1652 Benefits Consumers
• Creates enormous operational efficiencies – which are passed on to consumers. Consumer savings are nearly three times greater than the costs from investing in a smart meter system alone.
• Through smart meters, consumers can better manage energy use and save money.
• The Peak Time Rebate Program allows customers to save money by reducing electric use during critical peak periods.
• Improves electric system reliability and restoration meaning fewer and shorter outages.
3. SB 1652 Protects Consumers
• Requires two review points with the General Assembly.
• Retains ICC authority to review and set rates. Reviews utility costs annually instead of every 2-4 years. Consumer advocates retain all the same rights.
• Creates strong utility performance standards with penalties if not met.
• Limits utility profits – ties them to performance standards.
* The CME Group/CBOE incentive package was unveiled yesterday. It’s a big one…
Chicago’s financial exchanges would see a 50 percent decrease in their Illinois corporate income tax bills under legislation introduced Monday afternoon by Senate President John Cullerton, D-Chicago. […]
Under the proposal, only 27.54 percent of income stemming from electronic trading and clearing fees would be subject to Illinois’ corporate income tax, compared with 100 percent now. A spokesman for Cullerton added that the legislation could change in the days ahead.
Michael Shore, a spokesman for CME Group Inc., parent of the Merc and the Board of Trade, declined to comment. But CME Executive Chairman Terrence Duffy told Bloomberg News earlier this year that his company paid $150 million to Illinois last year.
That’s $75 million just for CME, if you’re counting. CME claims its state tax bill rose by $50 million when the income tax was increased. So, it’ll be getting all that money back plus a whole lot more.
But, shortly after the bill was submitted, House Majority Leader Barbara Flynn Currie suggested that the bill may not be needed at all, and certainly needs full vetting.
“I’d like to see the details,” said Ms. Currie, like Mr. Cullerton a Chicago Democrat. “If there is an essential unfairness (in current state corporate income-tax law), I’d like to end it. But I don’t know if there is an essential unfairness.”
Patty Schuh, spokeswoman for Senate Minority Leader Christine Radogno, R-Lemont, said Democrats held back the bill from a committee vote Monday after Republicans questioned the overall impact of the legislation.
“When there is an attempt to speed any legislation through, there is a possibility for error and unintended consequences,” Schuh said.
The legislation would tax only 27.5% of electronic trades, down from 100% under current law. A vast majority of the trades on both exchanges are done electronically.
* Meanwhile, talks on an incentive package for Sears continue, but the company wants even more…
A compromise that could keep Sears Holdings Inc. in Hoffman Estates and placate the complaints of Community Unit District 300 is in the works, but whether the plan finds success on both fronts remains to be seen.
State Sen. Dan Kotowski, a Park Ridge Democrat, said Monday that he is working on a deal that would grant Sears its wish of an extension of its existing tax break, as well as penalize the company if it leaves and send more money to District 300, based in Carpentersville. […]
Sears could be looking for other incentives besides an extension of the tax incentives. [Misty Redman, Sears’ vice president for government affairs] said Monday that the company has contacted Gov. Pat Quinn’s office to ask about EDGE credits — an incentive that rewards new job creation that has been awarded by Quinn to Motorola Mobility in Libertyville and Warrenville-based Navistar, two other companies that had threatened to leave Illinois.
Tuesday, Oct 25, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
Overriding SB 1652 would result in a $3.2 billion investment in Illinois’ economy that would improve reliability, create 2,450 jobs statewide and help make Illinois more competitive with other states.
Statewide Benefits
· Makes over $3.2 billion of electric infrastructure investments
· Creates 2,450 jobs during the peak period of the program
· Reduces and shortens electric outages
· Results in customer savings due to energy efficiencies with smart meters, time of use pricing, and improved voltage control
· Expands opportunities for renewable energy and efficiency measures
· Mandates strict performance standards; consumer protections
Labor, environmental and business groups have all joined to support grid modernization, including:
· Illinois AFL-CIO
· Sierra Club
· IBEW, Laborers and Pipefitters locals
· Chicagoland Chamber of Commerce
· Illinois Black Chamber of Commerce
· Illinois Business Roundtable
· Natural Resources Defense Counsel
Customer savings will more than offset rate increases, which for a typical Ameren Illinois residential customer is an increase of, on average, about $3.40 per year.
* The Chicago Tribune’s editorial board conducted a survey of 45 CEOs of what it says are “top Illinois-based public companies.” The survey was conducted over the past six weeks and the results were compiled by Market Shares Corp.
To say these CEOs are pessimistic would be an understatement. The Trib decided to show numbers of CEO responses instead of percentages, but I’ve added some highlights to make it slightly easier to read…
* How do overall Illinois economic conditions compare with nearby Midwestern states? Much/somewhat better: 6 About the same: 9 Somewhat/ much worse: 28
* Within the next couple of years, how much confidence do you have that Illinois state government will solve its fiscal problems? A lot/some: 1 Not sure: 1 Very little/none at all: 41
* How effective are Illinois tax credits and other state and local incentives in attracting and retaining businesses? A lot/some: 13 Very little/not at all: 30
* How much progress is Illinois making in funding its public employee pension and retirement benefits? A lot/some: 1 Not sure: 5 Very little/none at all: 36
* How much progress is Illinois making on public school reform? A lot/some: 10 Not sure: 1 Very little/none at all: 32
* How much progress is Illinois making on curbing corruption in government? A lot/some: 6 Not sure: 2 Very little/none at all: 34
* How much progress is Illinois making on transparency in government? A lot/some: 8 Not sure: 3 Very little/none at all: 29
* The state temporarily raised taxes to reduce its budget deficit shortfall and pay overdue bills. How much do you think this will help reduce state budget deficits? A lot/some: 7 Very little/not at all: 36
* Is the state tax rate your company pays today fair or unfair? Fair: 16 Unfair: 24
* And except for Rahm Emanuel, they don’t particularly care for Illinois’ other major leaders…
What grade would you give the state’s political leadership for fostering a favorable business environment in Illinois?
* Pat Quinn, Governor Excellent/good: 3 Not sure: 1 Fair/poor: 37
* Rahm Emanuel, Chicago mayor Excellent/good: 28 Not sure: 3 Fair/poor: 10
* Michael Madigan, House speaker Excellent/good: 2 Not sure: 2 Fair/poor: 37
* John Cullerton, Senate president Excellent/good: 4 Not sure: 8 Fair/poor: 28
* Tom Cross, House minority leader Excellent/good: 8 Not sure: 14 Fair/poor: 19
* Again, these CEOs are very pessimistic about the state’s future…
* How will Illinois economic conditions in the next 12 months compare with the last 12 months? Much/somewhat better: 2 About the same: 20 Somewhat/ much worse: 21
* Do you agree or disagree that now is a good time for your business to expand its investment in Illinois? Agree: 13 Disagree: 30
* Do you believe the Illinois economy will grow at a faster rate than the nation, at about the same rate, or at a slower rate than the nation? Faster: 0 About the same: 14 Slower: 29
* How much are Illinois state taxes an impediment to making business investments in the state? Very little/not at all: 8 A lot/some: 34
* Yet, despite all that pessimism and negativity, a significant number of them have done and are planning some sort of expansion…
* This year, how much did your company expand its Illinois workforce versus last year, if at all? A lot/some: 16 Very little/no change: 17 Reduced: 10
* How much is your company planning to expand its Illinois workforce next year, if at all? A lot/some: 13 Very little/no change: 21 Reduced: 10
Of course this last set of numbers could be a whole lot better, but considering the international economic situation the responses were a bit more positive than I thought it would be, especially factoring in the almost universal disdain these people have for the state government and the state’s future.
Your thoughts?
* Related editorials…
* Making Chicago, and Illinois, competitive: Some companies offset these drawbacks by screaming for help until politicians come running with special tax deals and other bribes (invariably at the expense of other companies and individual taxpayers). The flip of that: Other companies don’t scream, they just relocate to more business-friendly states. Or they don’t even come here in the first place. Look at how painfully unresolved our taxpayer debts, our government retirement costs, our tax disincentives and our often underperforming public schools remain.
* Business to pols: Shape up: Gov. Pat Quinn tried to do some cheerleading last week, telling an audience at the City Club of Chicago: “We shouldn’t get down on ourselves. We shouldn’t sell ourselves short. We have a great state, great workers and great companies.” Governor, the leaders of those great companies, the people who hire those great workers and pay taxes in this great state — they want more than cheerleading. They want results.
His campaign will focus on reining in reckless spending, reform of our tax and regulatory structure, and getting government out of the way of small businesses so the U.S. economy can get moving forward again. Plummer said, “Businesses need to be able to get back to doing what they do best – providing stable jobs for hard working people and quality products and services for consumers. The burdens government has put on our small businesses and workers are crushing this economy and putting people out of work.”
“Our family businesses are blessed to have helped create and maintain over 1,000 jobs in Illinois and surrounding states. We have been creating quality jobs in Illinois for over 30 years, but never have we seen an environment as bad as this,” said Plummer. “The announcement last week that the Illinois unemployment rate reached 10% is further proof that what Washington is doing is not working. I am running for Congress to push for common-sense reforms of the way government operates and to use my business experience to find solutions for our stagnant economic growth.”
The 12th is currently represented by retiring Democratic Congressman Jerry Costello. One Democrat may announce soon…
Madison County Chief Judge Ann Callis is expected to jump into the race in the coming days, a top party official confirmed this morning.
If and when Callis announces, she will be the first prominent Democrat to jump in race since Costello’s surprise retirement announcement earlier this month.
…Adding… Democrat Chris Miller of Carbondale is also considering a bid. Miller, no relation, served 7 years in the Army and did two tours of Iraq. He was featured in a 2010 VoteVets TV ad called “Tough.”
* The Question: What are your recommendations for Plummer’s new campaign slogan?
Monday, Oct 24, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
Overriding SB 1652 would result in a $3.2 billion investment in Illinois’ economy that would improve reliability, create 2,450 jobs statewide and help make Illinois more competitive with other states.
Statewide Benefits
· Makes over $3.2 billion of electric infrastructure investments
· Creates 2,450 jobs during the peak period of the program
· Reduces and shortens electric outages
· Results in customer savings due to energy efficiencies with smart meters, time of use pricing, and improved voltage control
· Expands opportunities for renewable energy and efficiency measures
· Mandates strict performance standards; consumer protections
Labor, environmental and business groups have all joined to support grid modernization, including:
· Illinois AFL-CIO
· Sierra Club
· IBEW, Laborers and Pipefitters locals
· Chicagoland Chamber of Commerce
· Illinois Black Chamber of Commerce
· Illinois Business Roundtable
· Natural Resources Defense Counsel
Customer savings will more than offset rate increases, which for a typical Ameren Illinois residential customer is an increase of, on average, about $3.40 per year.
* There probably won’t be too much live-Tweeting today because we only have committee hearings. But, you can stay tuned anyway via our ScribbleLive thingamabob. BlackBerry users click here. Everybody else can just lean back in your chairs and just watch…
* The House Personnel and Pensions Committee meets this afternoon, but there is only one bill posted and it isn’t “the big one.” The bill, sponsored by House Republican Leader Tom Cross, would forbid Chicago union execs from basing their city pensions on income earned at their union jobs. The bill follows a series of stories a few years ago by the Sun-Times and more recently by the Tribune exposing the practice. There’s nothing in today’s Senate Executive Committee postings, and the same goes for the House Exec postings.
Tomorrow afternoon’s hearing is much the same stuff. It’s all about the union pension fund issue, but the major reform legislation hasn’t yet been posted, nor amended onto an existing bill in committee.
If a major reform bill surfaces, the whole thing could happen very quickly. And even if it manages to pass the House, the Senate is far more questionable. The Senate President doesn’t believe that Cross’ bill is constitutional because it alters the system for current employees. And members just haven’t been lobbied by the proponents like they have been in the House.
The [Civic Committee-backed pension reform] bill didn’t get a vote last spring. Since then, working groups of lawmakers, pension officials, union representatives and others have met to discuss where to go.
“Our pension expert attended the meetings and made clear our views, but it, frankly, seemed like a dog and pony show to promote the failed legislation from the spring,” Lindall said.
Brown said members are being surveyed to see what support exists for a pension change bill. Rep. Raymond Poe, R-Springfield, ranking Republican on the House Pensions Committee, is skeptical.
“I don’t see them working that bill at all,” Poe said. “No one’s talking too much about it.”
House Republican Leader Tom Cross of Oswego is expected to push a number of pension reforms following Tribune reports about abuses that allow union officials to collect inflated pensions.
Cross’ legislation is aimed at closing loopholes that allow double-dipping by union officials who collect a city pension and union pension for the same period of work. He also wants to reorganize Chicago and Cook County pension boards to provide what he says is more accountability.
Cross also is working on a measure that would limit pension benefits for current employees, but it’s unclear if the measure will surface during the abbreviated fall session.
That’s the overarching challenge on many of these issues: It took months and sometimes years to put support together, and now lawmakers must find a way to retool in only a few weeks.
Pritchard said he’s heard rumblings that the pension issue might come up at the veto session, but his gut feeling is that it won’t happen. State Sen. Christine Johnson, R-Shabbona, said she doesn’t expect SB 512 to be called during the veto session, though she’s heard there are different proposals that could come up.
State Rep. Joe Sosnowski, R-Rockford, said legislative leaders will decide what is brought up during the Veto Session, and he noted there’s a lot of issues that will demand attention. […]
Fahner said he believes the chances are good that pension reform will come up at the veto session. The measure is sponsored by House Speaker Michael Madigan, D-Chicago, and Republican House Leader Tom Cross, R-Oswego, and Fahner believes lawmakers have the votes to get it passed. […]
What should occur, Pritchard said, is employees and the state should work together to find a solution. There are many ideas out there, he said, like establishing a later retirement age or capping the amount of pension salary employees can earn.
Rep. Pritchard’s comment about a desire for a negotiated solution is something I’ve been hearing more and more these days. Republicans and Democrats want both sides to try to hammer something out. And the feeling is that has a better chance of happening if action is put off until the spring session. Some of the people pushing reform believe that union members will get antsy about having something jammed down their throats, so they’ll push leadership for a negotiated solution. Time will tell.
It’s possible that Leader Cross will address this issue at today’s committee hearing. Stay tuned.
* Roundup…
* State senator tied to target of ‘large-scale fraud’ investigation: In 2005, George E. Smith, a South Side health-care and social-services provider, bought two unfinished condominiums and a vacant lot from Illinois state Sen. Mattie Hunter for $240,000. Three years later, Smith’s not-for-profit mental-health group got $500,000 in state funding that Hunter — a Chicago Democrat and head of the Senate Human Services committee — helped arrange. That “disability behavioral health services” grant is now among more than $18.5 million worth of government deals that state inspectors say Smith used to commit “large-scale fraud” on Illinois taxpayers.
* Statehouse Insider: Is a smaller gambling bill even possible?: Quinn can complain that the expansion bill that was never sent to his desk is too big and therefore unacceptable. But so far in this state, no one has figured out how to pass a smaller-scale version. Like it or not, it has to be real big or it probably will be nothing at all.
* Hopf: Proposal for ROE funding will generate protest from communities: Has the funding for the regional superintendents’ salaries been put on the back burner? Not exactly. House Speaker Michael Madigan introduced legislation earlier this month to restore the funding with money collected through the personal property replacement tax, which the state collects from corporations and business partnerships and distributes as income tax to schools, counties, cities and other government bodies. This looks like a victory for Quinn, who has made it clear that if regional offices of education remain open, they should remain open with local revenues. However, with talk of moving PPRT from this budget cycle, municipalities and counties across the state will be gearing up for a battle.
Sen. Don Harmon (D-Oak Park) told the Chicago Sun-Times that the package he intends to introduce Monday and position for a full Senate vote Tuesday will “make dramatic improvements to the bill that was passed in the spring, focusing on increased reliability, job creation and protection for ratepayers.” […]
Under Harmon’s trailer bill, which he intends to present Monday afternoon in a Senate committee, the state’s two main utilities, ComEd and Ameren, would be required to invest $1.3 billion in “smart-grid” modernizations and pour another $1.3 billion into beefing up their existing electricity-transmission systems.
That marks a reduction in how much the utilities could spend on smart-grid upgrades. The legislation that Quinn vetoed would have authorized $1.5 billion in smart-grid investments and $1.1 billion in upgrades to existing infrastructure.
Harmon said his legislation would bring down the amount of profit ComEd would be guaranteed from a minimum of 10.4 percent under the bill Quinn vetoed to 9.7 percent, which would cost the Chicago-based utility $30 million.
That return-on-equity benchmark would be “reduced in future out years” to the “high 8 percent to low 9 percent range,” Harmon said.
Gov. Pat Quinn on Sunday reacted to an AARP-sponsored poll showing that nearly 7 in 10 Illinoisans oppose annual increases in their electric bills, even if they would improve reliability and prevent outages.
“We want our legislators to listen better to the voters, the consumers of Illinois, both families and businesses,” Quinn said. “It’s very, very important on the eve of a legislative session that’s going to concern some of the most important economic issues for years to come that we take a stand and win for the consumers.”
In September, Quinn vetoed a $2.6 billion bill that would have enabled Commonwealth Edison to lock in a 10.25 percent yearly profit rate (with no cap), part of which would be used to underwrite a roughly $1.5 billion modernization of its power grid.
An override battle begins this week as lawmakers return to Springfield. The legislation is being pushed by ComEd and the downstate utility, Ameren.
Nearly half of Illinoisans polled say that a rate-increase bill pushed by Commonwealth Edison should contain greater consumer safeguards and seven in 10 oppose raising rates to improve reliability, according to a new survey to be released Sunday.
The poll of 800 registered voters commissioned by AARP of Illinois and the Environmental Law and Policy Center — two groups fighting ComEd’s legislative push — comes as a major override battle in Springfield begins heating up with lawmakers returning to the Capitol Tuesday for the start of their six-day fall session. […]
The survey, which was performed Oct. 11 by the Joliet-based McKeon & Associates polling firm and had a margin of error of plus or minus 4.1 percentage points, found that 47 percent of those polled believed that bill should be “amended to protect consumers,” while just 11 percent said they believed it should be approved and signed as is.
Half of those surveyed described their monthly utility bills as too high, and 69 percent said they would be against an annual increase in electricity bills to “improve reliability and prevent power outages.”
Finally, reacting to a Better Government Association report in the Chicago Sun-Times, 81 percent of those surveyed believed utility company campaign contributions exceeding $1.3 million had “great” or “some” influence over legislators who voted in favor of bill in May.
Utility consumers are opposed to legislated rate hikes. No surprise. And since the “trailer bill” has not yet surfaced, its details couldn’t be polled. Supposedly, that trailer bill will lessen the vetoed bill’s sting.
* But a result buried way down deep in the poll did catch my eye. It also isn’t much of a surprise, I suppose, but the result ought to make legislators who voted for the income tax hike feel uncomfortable voting for this ComEd bill.
According to the poll, 76 percent said they’d be less likely to vote for a candidate who voted for the recent 67 percent income tax hike. 62 percent would be “not likely at all” to vote for that candidate.
Oof.
Couple that with the rate hike stuff and you’ve got major trouble.
The poll conducted by AARP is not a legitimate or credible survey. It’s a survey designed to produce a pre-ordained result. The language read to respondents is slanted with inaccurate and misleading information.
ComEd commissioned a poll in the last month that in fact found substantial support for modernizing the electric grid. This poll was conducted by one of the most respected polling firms in the nation, Peter Hart Research Associates.
Customers were asked their opinions on smart grid development and its potential reliability impacts. After hearing a description of a smart grid, three-quarters (76%) of customers support updating and modernizing Illinois’s electric system to include the technology. And, two-thirds (64%) of customers believe smart grid technology has a great deal or a fair amount of potential to improve the reliability of electric service and reduce outages.
We believe Senate Bill 1652 provides an array of benefits to Illinois in terms of job creation, economic development, environmental protections, consumer savings, regulatory reform and modern infrastructure. We look forward to working with members of the General Assembly to help make these benefits a reality.
* Questions about electrical fires remain unanswered - 2 years after blazes touched off in a number of Naperville area homes, ComEd has not released a report on the cause, which is being sought in a suit filed by a homeowner
* Press Release: GE Backing ComEd’s Efforts to Modernize Power Grid - Upgrades to Electrical Infrastructure Will Power Economic Growth, Reduce Environmental Impact and Improve Lifestyles
* I’ve known Steve Preckwinkle for 26 years and I’ve known Dave Piccioli for 21 years. They are both my friends, and many years ago Precky was an invaluable mentor. I would not be where I am without him. But, today, I am ashamed of both of them…
Two lobbyists with no prior teaching experience were allowed to count their years as union employees toward a state teacher pension once they served a single day of subbing in 2007, a Tribune/WGN-TV investigation has found.
Steven Preckwinkle, the political director for the Illinois Federation of Teachers, and fellow union lobbyist David Piccioli were the only people who took advantage of a small window opened by lawmakers a few months earlier.
The legislation enabled union officials to get into the state teachers pension fund and count their previous years as union employees after quickly obtaining teaching certificates and working in a classroom. They just had to do it before the bill was signed into law.
Preckwinkle’s one day of subbing qualified him to become a participant in the state teachers pension fund, allowing him to pick up 16 years of previous union work and nearly five more years since he joined. He’s 59, and at age 60 he’ll be eligible for a state pension based on the four-highest consecutive years of his last 10 years of work.
According to the report, Preckwinkle, 59, could collect $2.8 million by the time he’s 78. Piccioli, 61, could receive around $1.1 million by age 78.
Go read the whole thing. This Tribune story shows more about what’s wrong with Springfield than anything I’ve read in a very long time.
* We all make mistakes in our lives, and I have always been generous with my forgiveness because I know all too well how easy it is to screw up. I’ve done it far too many times to count.
But this goes beyond a simple mistake. This is just out and out piggishness.
*** UPDATE *** From a press release…
Following an investigative report by the Chicago Tribune and WGN-TV, state Rep. Jack D. Franks (D-Woodstock) announced today that he will introduce legislation to rescind the ability of two Illinois Federation of Teachers (IFT) lobbyists to participate in the Illinois Teachers’ Retirement System (TRS).
“With this legislation, we are closing an obscene loophole that harms Illinois’ hardworking teachers,” said Franks. “This type of, all too familiar, insider gamesmanship has contributed to the wide-spread demonization of our public sector employees and has put Illinois’ retirement systems further into debt. I call upon both lobbyists to immediately resign their positions with the IFT. These individuals have a fiduciary obligation to protect their members’ retirement benefits, but instead did just the opposite – they self-dealt for their own interests and harmed their members.”
* Back in May, Treasurer Dan Rutherford became a darling of the austerity cheerleaders by saying this…
The treasurer said lawmakers must cut spending and live within their means in order for Illinois to pay off the debt.
“You can’t borrow anymore money,” said Rutherford. “And if I need to send letters to the rating companies to tell them the treasurer of Illinois is opposed to any more borrowing, I’ll go ahead and do that.”
Rutherford said alerting national rating agencies and bond houses could make it more expensive for Illinois to borrow. He said hopes that step would give lawmakers pause before asking for a billion dollars.
Rutherford even raised the spectre of bankruptcy back in January…
“If you look seriously at a condition for a sovereign government: To go bankrupt would send the bond market into turmoil, and I believe it would actually break a considerable trust that those have who deliver goods and services to the government.
One of the few people with a foot in each camp is Treasurer Dan Rutherford, a Republican.
In May, Rutherford sharply condemned the idea of taking on more debt and threatened to lobby credit-rating agencies to reject the borrowing if Illinois were to go that direction.
But last month he told the Illinois State Chamber of Commerce that not paying bills is “criminal” and it might be feasible to borrow money to pay them.
“For those of you that are owed money from the state of Illinois, I support the idea of looking at refinancing some kind of a package to take the burden of the debt load off of you and put it on the state,” Rutherford said.
In politics, a “flip-flopper” is somebody who changes positions away from your viewpoint. A “statesman” is somebody who flip-flops in favor of your viewpoint. I happen to agree with this egregious Rutherford flip-flop, which, I suppose, makes Rutherford a statesman in my eyes. But he really has some explaining to do.
Don’t look for quick action to reduce Illinois’ huge backlog of unpaid bills, despite universal agreement among state leaders that the debt is unfair to businesses, charities and local governments that provide valuable services.
Progress is blocked by fundamental disagreements on how to solve the problem and a lack of any sense of urgency among officials. Even with the Legislature’s fall session beginning next week, officials report little or no discussion of what can be done to pay the bills, which total billions of dollars.
The State of Illinois is late paying its bills to organizations that perform services and provide goods to the State. By law, it has to pay those vendors a high rate of interest on those late bills. Iʼm going to read two statements some people are making about how the State should deal with this situation, then ask you which statement comes closer to your views. If you havenʼt thought much about the issue, just tell me that.
* The State should borrow money at a lower interest rate to pay off those late bills, saving money on interest and getting money to businesses and organizations that need to be paid. 39.1%
* The State should just pay its bills as well as it can with current funds and not borrow money to try to fix its problems. 50.3%
* Havenʼt thought much about it 8.7%
* Other/Donʼt know 1.9%
Discuss.
*** UPDATE *** From Treasurer Rutherford’s communications director…
Just wanted to clarify TDR’s position on repayment of unpaid bills. These are some direct quotes from my conversation with him this morning:
“My message has been consistent from when I met with Governor Quinn in February after his budget address and through multiple meetings with the governor’s budget director.”
“We cannot keep spending money we do not have. Illinois has the worst credit rating of any state. Bipartisan pension reform is needed to rebuild our economy and credit.”
“While I am open to a short-term cash management tool, we cannot burden the young citizens of our state with more debt. Already people in Illinois owe more to their government than citizens of Indiana, Wisconsin or Missouri.”
“It is nearly criminal that Illinois government is abusing its vendors by not paying its bills.”
“I have negotiated contracts all over the world in the private sector. One cannot agree to only one part of a contract and hope that the rest of it will come together. That is what the General Assembly did when they raised the income taxes, under the pretense of paying current bills, and then did not resolve the largest liability hanging out there…the state public pensions.”
If the state doesn’t have the money to pay off those late bills, then short term borrowing merely reshuffles the deck chairs.
* Related…
* Deadbeat Illinois: Late payments cost millions in interest: Last year, delays on bills paid months or even a year late meant $27.1 million was paid out of state coffers in interest under the Prompt Payment Act. In 2010, at the height of the state’s budget woes, interest payments totaled more than $62.3 million after sharply increasing over the previous five years.
* Deadbeat Illinois: Political stalemate over Illinois’ debt poses dire threat
* Behind on its bills, state shares $5 billion shortfall with businesses, nonprofits
* For the first time in a very long time, I was heartened after reading a statewide issues poll…
It’s long been a tenet of public opinion that voters want the government to cut its budget and don’t want new revenues, but also don’t want any actual programs slashed.
However, the latest Paul Simon Public Policy Institute poll shows a slow but sure trend in favor of specific state budget cuts and revenue increases.
A large majority of Illinoisans do still believe in magic. According to the poll, 58 percent say the state budget can be balanced by cutting waste and inefficiency. And because of this belief in an utter fantasy world where faeries reign and magic dust solves all our problems, too few want to actually cut state spending programs.
According to the poll, 80 percent oppose cuts in K-12, 74 oppose cuts to public safety programs and 83.5 percent oppose cuts to programs for people with mental or physical disabilities. About 65 percent oppose cuts to spending on programs for poor people. The Institute’s poll of 1,000 registered voters was taken Oct. 11-16 and has a margin of error of +/- 3 percentage points. This was not an autodial “robopoll.” Real people made the calls.
However, there is growing support for cuts. More Illinoisans wanted to protect programs in the Institute’s poll taken three years ago than they do today.
For instance, back in 2008 just 24 percent of Illinoisans favored cuts to pension benefits for state workers’ retirement. Three years later, that support has grown to 45.5 percent. As of now, 48 percent oppose those cuts, but 66 opposed those same cuts three years ago. And there’s a clear trend every year in between.
Also back in 2008, 73 percent opposed cuts to spending on state parks and environmental regulation, but that opposition has fallen to 55.6 percent (perhaps not a coincidence is the increased national Republican rhetoric over “job killing” government regulations).
Again, there is a clear trend over the years toward favoring more cuts. This is not what’s known as an “outlier” poll. In the 2008 poll, for example, 72 percent opposed cuts to state universities. By 2008, opposition had fallen to 61 percent, then fell again to 57.4 percent in 2010. Now, 54 percent oppose cuts to university funding. That’s still a solid majority, but far less than just a few years ago.
And while support for cuts has grown, so has support for some revenue generating ideas.
For instance, the Institute’s poll found that a very substantial 57 percent of Illinoisans now support gaming expansion, while 39 percent oppose it.
That’s ten points higher than the 47 percent who supported gaming expansion in the Institute’s 2008 poll. Back then, a slight plurality of 46.9 percent actually opposed gaming expansion.
We haven’t heard much from gaming opponents during this year’s months-long debate over expansion. They aren’t as organized or as vocal as they used to be, perhaps because they’re losing public support.
Also according to the poll, a very slight majority, 50.1 percent, support expanding the sales tax to cover services like dry cleaning or haircuts, which are not currently taxed. About 46 percent opposed the idea. But today’s support is way higher than in 2008, when only 28 percent favored expanding the sales tax to services.
And even though just 22 percent favored increasing the state sales tax rate, that’s still five points higher than the 17 percent who backed the idea three years ago.
Among the poll’s other findings, a whopping 69 percent of voters support raising cigarette taxes by a dollar a pack, while just 28.5 percent oppose it. The Institute has not asked this question before, so there’s no way to measure the history of its popularity in this particular poll.
Also, 49 percent opposed applying the state income tax to the retirement income of those earning more than $50,000 a year, while 43 percent favored the idea. This issue hadn’t been polled before, either.
What does all this mean? Well, people are gradually becoming more realistic about the state budget, which is a good thing. They’re becoming more conservative about spending and more liberal about new revenues.
These trends make the state easier to govern. Even with this year’s income tax increase, difficult budget decisions still must be made. The more people who are open to cuts and revenues, the easier it is politically to make those cuts and create those new revenue streams.
Monday, Oct 24, 2011 - Posted by Advertising Department
[The following is a paid advertisement.]
Illinois legislators have already voted against Tenaska Energy’s proposed Taylorville Energy Center (TEC) power plant two times. But during the upcoming legislative session, Tenaska plans to pressure lawmakers to approve SB 1653 and make us pay up to seven times today’s market price for electricity.
Tenaska can’t build and finance the plant without subsidies from Illinois electric consumers because it’s not needed and it’s uneconomic.
That’s why there is broad and diverse opposition to the TEC and SB 1653, including the following groups that have publicly stated their opposition:
• Illinois Manufacturers’ Association
• Illinois Retail Merchants Association
• Illinois Competitive Energy Association
• Illinois Chamber of Commerce
• Illinois Sierra Club
• Environment Illinois
• Over 200 other Illinois businesses and non-profits that operate in Illinois
