Illinois Senate President John J. Cullerton announced today that the Senate will be in session beginning at noon on Tuesday, Dec. 13.
That’s understandable. The Senate wants to see what the House does on Monday before they return. If the House fails to approve a tax cut package, there’s no sense for the Senate to be in town.
A big Downstate manufacturer is now seeking the same Illinois income tax incentives sought by Sears Holdings, according to several sources close to the legislative negotiations. The development came as Speaker Mike Madigan summoned the Illinois House to a special session next Monday.
Sources identified the Downstate company as Edwards County-based Champion Laboratories, one of the world’s largest makers of filters for industry and vehicles. Two key legislators said they believed Champion would hire additional workers in Illinois, if the tax incentives were approved. Voice mail messages left for a Champion Lab’s spokeswoman were not returned Tuesday evening.
Madigan’s summons to House members said the Revenue Committee would convene at the State Capitol Monday at 10 a.m. Sources said no final deal had yet been reached. But they hoped one would be ready for an up or down vote by the time legislators returned to Springfield.
Intense negotiations continued behind the scenes Tuesday on a series of proposed tax law changes. After discussing a possible move to Indianapolis with that city’s mayor last Friday, executives of CME Group were still hopeful that Illinois would grant them the same tax treatment it accords virtually every other corporation. Other companies are taxed only on what they sell in Illinois, not on their sales in other states or countries. If applied to CME Group, those rules would cut about $85 million annually from its Illinois income tax. CME Group is the corporate parent of the Chicago Mercantile Exchange and the Chicago Board of Trade.
Champion just bought another company and will likely be moving jobs to southern Illinois if this tax deal is approved.
As states have struggled to balance their budgets by cutting services, laying off workers and raising taxes, a study to be released on Wednesday suggests that many profitable Fortune 500 companies have not been paying as much in state corporate income taxes as the average levied on American companies, with some big firms paying none at all in recent years.
A few companies, including DuPont, reported paying no state corporate income taxes from 2008 to 2010 even as they reported profits, according to the study, which was conducted by Citizens for Tax Justice and the Institute on Taxation and Economic Policy, nonprofit research organizations in Washington that advocate a more progressive tax code. (A spokeswoman for DuPont said that she had not seen the study, but that “DuPont complies with all tax laws and regulations” wherever it operates.) […]
To gauge how much Fortune 500 companies are paying in corporate income taxes, the study looked at the 265 of them that are both profitable and disclose their state tax payments. It found that 68 reported paying no state corporate taxes in at least one year between 2008 and 2010. All together, the study found that the companies reported $1.33 trillion in domestic profits from 2008 to 2010, but paid states only about half of what they would have if they had paid at the average corporate income tax rate of all states — reducing their state taxes by some $42.7 billion.
Matthew Gardner, the executive director of the Institute on Taxation and Economy Policy, said that state corporate-tax collections have dwindled for several reasons. Many states calculate their taxes based on federal corporate taxes, so some recent federal corporate tax breaks have lowered their collections. Other states have granted their own tax breaks to try to promote economic development, or to lure companies from other states. Companies, meanwhile, have grown adept at reducing taxes and finding tax shelters.
A Milwaukee-based temporary staffing company has laid off nearly 500 employees in Illinois, blaming the high cost of the state’s workers’ compensation system.
An executive of Parallel Employment Group said Tuesday that the company cut jobs in Illinois because it wanted to lower its workers’ compensation costs.
Kirk La Du, executive vice president of operations, said the company, which also operates in Wisconsin and New York, incurred 87 percent of its total workers’ compensation costs in Illinois. The state accounts for about 35 percent of its revenues, he said.
“The only reason we are downsizing is competitive issues related to workers’ compensation,” La Du said. “It seems foolish to us to continue operating in a state where workers’ comp made it difficult to make money.”
The “vast majority” of Parallel’s temporary roster will be reassigned to Andrews & Staff Force Inc., a staffing firm with multiple Chicago-area locations, Mr. La Due said.
• The Chicago Transit Authority reported to the state it might eliminate 93 jobs as a result of a leaner 2012 budget
• Ameren Energy Generating Co., a St. Louis-based electric power distributor, will shed 53 jobs at its power plant in Meredosia, the Central Illinois town near the Illinois River. The plant was selected as the site of FutureGen 2.0, a project in conjunction with the U.S. Department of Energy’s clean-coal power program that the company claimed would bring 900 jobs to the area. But Ameren said it’s pulling out of the project.
• Syms Corp., the Secaucus, N.J.-based parent company of Filene’s Basement LLC, will shed 107 jobs when it closes Filene’s Basement stores on State Street and Michigan Avenue. The company declared bankruptcy in early November, after putting itself up for sale in May but finding no buyers.
• Tinley Park Mental Health Center in the south suburbs reported that it will close and eliminate 180 jobs, according to the state. But a budget deal last week would allow the facility to remain open through next June, according to the Department of Human Services.
• Roscor Corp., an audio and multimedia wholesaler in northwest suburban Mount Prospect, will lay off 102 employees, according to the report. Mitch Roston, the company’s co-owner, said the number of eliminated jobs was closer to 85 and that the company maintains between 35 and 40 employees. He said Roscor is suffering in the poor economy and will undergo a restructuring.
• General Automation Inc., a north suburban Skokie-based manufacturer, will shed 65 jobs in a company consolidation. A company human resources employee declined to comment.
• USA 3000 Airlines, a small Newtown Square, Pa.-based carrier that operates at O’Hare International Airport and flies mainly to Mexico, warned of a possible layoff of 86 employees in the event of a company sale. A representative did not return a call for comment.
• Computer Sciences Corp., a computer programming company in west suburban Oakbrook Terrace, will eliminate 79 jobs due to poor business conditions.
* Let’s start with the winners from yesterday’s nominations. Keep in mind that there are no appeals here. All decisions are final, so don’t waste your time complaining in comments because I’ll just delete you.
I have to heartily endorse Ross Isaac’s, not only for being the best food in town but for also attracting a slew of legislators every night. If you get a table at the back, working your way through that place saluting and shaking hands is like a scene out of Goodfellas (without the mobsters, of course).
A few weeks ago I took a Sun-Times editor out to dinner. I knew that if I took her to Ross Isaac’s she’d have a memorable night, and, of course, she did, and so did I. The restaurant is outside the “sandbox,” but the owner is extremely session-friendly. Delicious food, great crowd, prompt waitstaff, solid owner. You cannot ask for more than that. Ross Isaac’s is tops. Go there.
* Runner-up goes to Sebastian’s Hideout (down in the basement). “Wizzard of Ozzie” nominated it for best bar, but the Hideout is also a a fine restaurant…
Basement at Sebastian’s. Feels more like a political hangout than anywhere in Springfield and a lot of work gets done there.
Sebastian’s Hideout is what Norb Andy’s used to be, but with far better food. Try the potato soup. Heaven. Also, the firefighters love it and I love me some firefighters.
I’ve found myself spending more time at the Sangamo as I get older. It has become my default bar. Yes, there are the occasional snooty townies, but they do keep out the riff-raff - I know this because I was almost kicked out a few years back. One must maintain one’s composure. Also, it’s currently the place for “leader watching.” Madigan and Cullerton are semi-regulars at the club’s restaurant. And you won’t find better service anywhere this side of Chicago.
The place is packed seemingly every night during session. Mostly lobbyists and staff, but a few legislators too. I think most members probably prefer the more reserved grill room at the Sangamo Club or the Hideout at Sebastians. My vote is for JP Kelly’s though for top notch service and stiff cocktails.
I always know I can find somebody at JP Kelly’s when I’m desperate for a story. Everybody goes there.
Note to the new Boone’s Saloon owners: You need one good year under your belt and you’ll be a serious contender next time around. And I haven’t been to this bar since the new owners took over, but a nomination by “Old School” was so intriguing that I have to award it an honorable mention…
Bar: Scandals, not everyone goes there but the people who do are the people you want to lobby.
I’m gonna have to check it out.
* OK, now, on to today’s nominations…
* Best Springfield hotel
* Best place for lunch near the Statehouse
Make sure to explain your nominations. Sincere intensity counts far more than the number of nominations. Also, make sure to nominate in both categories. Thanks.
* The hearing starts back up this morning at 10 o’clock. Blagojevich will likely testify near the beginning. He’ll be sentenced later today. A list of the counts against Blagojevich is here.
Blackberry users click here, iPad and iPhone users remember to use the “two-finger” scrolling method…
[Password protection removed since others have picked up on the story.]
* 4:31 pm - The House is coming back on Monday. No word yet on the Senate. [ADDING: I’m hearing maybe Tuesday for a Senate return.] From a memo sent by House Speaker Michael Madigan…
To: All House Members (District Office & Springfield Office)
Date: December 6, 2011
Re: House Session
The House will convene on Monday, December 12, at 12 noon.
The schedule will be:
Monday, December 12, 2011
10 am House Revenue Committee, Room 114
11 am House Republican Caucus
12 noon House convenes Floor Session
The House plans to convene and adjourn on Monday, December 12.
A spokesman for Senate President John Cullerton said that while he has not yet announced anything, “Tuesday is a good possibility.”
House Revenue Committee Chairman John Bradley, D-Marion, who has been leading negotiations on a big tax-break deal, said nothing yet is complete, but seemed to suggest that just a a few loose ends need to be tied up.
The fact that a session has been called “is not a bad sign,” Mr. Bradley said. “We want to get this done before the holidays and have some certainty.”
llinois lawmakers will return to session Monday to consider a series of tax breaks, hoping to head off departure of Chicago’s largest derivatives exchanges and a major retailer to other states.
Only a week ago, the state House of Representatives overwhelmingly rejected the measure, which would provide tax relief to CME Group Inc. (CME), CBOE Holdings Inc. (CBOE) and Sears Holdings Corp. (SHLD).
It isn’t clear whether legislative leaders and Democratic Governor Pat Quinn have reached agreement on how to present the legislation to the General Assembly. It is possible lawmakers will vote on each of the tax breaks individually, rather than grouped together in a large package.
“It’s a work in progress,” Quinn’s spokeswoman Brooke Anderson said Tuesday night.
* The folks at the Indiana Economic Development Corporation are making some bold claims these days. For instance, the Economist reports…
Katelyn Hancock, a spokesperson for the Indiana Economic Development Corporation, says her state has been in competition with Illinois 43 times this year to win new investment—and won 40 times.
Already this year, 16 companies moved all or a portion of their operations from Illinois to Indiana, which the IEDC estimates brought the state 1,500 new jobs and more than $305.1 million in investment.
* I asked Gov. Pat Quinn’s spokespeople for a response and they didn’t directly dispute Indiana’s numbers…
Governor Quinn is focused on creating jobs and working hard to make Illinois an even more attractive place to do business not only in the Midwest, but globally. The Governor has an aggressive long-term strategy for bringing quality jobs to Illinois, which includes innovation, exports and foreign investment, business-friendly legislation, and addressing infrastructure needs. And we don’t need to exaggerate our success; the proof is in the numbers.
According to the U.S. Labor Department, from October 2010 to October 2011, Indiana lost 12,400 jobs, a 0.4 percent decline in employment. Illinois added 60,500 jobs in that same time period. Illinois added 30,000 jobs in October, more than any other state. Since January 2010, Illinois has added 108,100 jobs ranking Illinois first in the Midwest in job creation. Illinois is home to 10 companies in the Fortune 100, 19 in the top 250 and 31 in the top 500. Indiana, by contrast, has five in the top 500. While Illinois’ corporate tax rate is at 7 percent, Indiana’s corporate rate is 8.5 percent - 20 percent higher than Illinois).
However, our competition isn’t Indiana, it’s India. The Governor is focused on making sure Illinois remains competitive on a global scale. We’re in a National recession, this is a national issue that every state is facing. The reality is that Midwestern states need to work together more, not less, to market the region to global visitors and business. An approach that focuses on picking off a neighboring state’s business is short-sighted and is a losing strategy for our region.
“Right to work” is not a strategy to achieve economic progress and create jobs.
* An Indiana news story from last month suggests the Hoosiers are prone to exaggeration…
In his zeal to sell Hoosiers on a right-to-work bill, House Speaker Brian Bosma, R-Indianapolis, appears to be playing fast and loose with the facts about job creation in Indiana.
Several times this week, Bosma has proclaimed Indiana “the envy of the Midwest in our job-creation efforts,” and said if Indiana enacted a right-to-work law it would “remove the last barriers to job creation” and “help the quarter of a million unemployed Hoosiers get back to work.”
But far from being best in the Midwest, data released Tuesday by the U.S. Labor Department shows Indiana is not creating jobs; it’s losing jobs.
From October 2010 to October 2011, Indiana lost 12,400 jobs, a 0.4 percent decline in employment. The only state to do worse was Georgia, a right-to-work state, which lost 27,900 jobs, or 0.9 percent of employment year-to-year.
Each of Indiana’s neighboring states — Illinois, Michigan, Ohio and Kentucky — all added jobs during that same period, including 60,500 jobs in Illinois and 48,900 jobs in Michigan.
None of those states has a right-to-work law.
* Indiana is so fervent about the idea of wooing CME Group that at least two towns are competing to host the company. Indianapolis is one, suburban Carmel is another…
CME Group appears to be the subject of a Nov. 3 letter from Carmel Mayor Jim Brainard. In it, Brainard offers $150 million in tax incentives, plus free land and expedited permits for an 800,000-square-foot headquarters, and a 425,000-square-foot “data center facility.”
* But despite the fact that the Board of Trade contributed heavily to Gov. Quinn’s campaign last year, Sen. Bill Brady has been an outspoken proponent of its tax cut…
State Sen. Bill Brady, R-Bloomington, says he believes a tax break deal to help CME Group, Sears and some small businesses can still be done by the end of the year.
The Illinois House overwhelmingly rejected the plan last week after the Senate passed the measure.
“I’ve had some discussions with some folks (in the House) that I’ve asked to step up and be leaders in the Chicago area to try to get this done,” Brady said.
You don’t see that too often in Illinois. So, whatever you think of the CME proposal, kudos to Brady.
The La Salle County Board will hold its January meeting at the Knights of Columbus Hall in Ottawa to accommodate those concerned about the plan to build a 315-acre sand mine next to the east entrance of Starved Rock State Park on private property.
If I ever leave here I hope never to return
If I get that van back, Man, the road I’m gonna burn
Right now my future’s in the hands of the boys down at Firestone
Stuck in Indianapolis feeling all alone
* I told subscribers a bit more about one of House Speaker Michael Madigan’s Democratic primary opponents this morning, and Greg Hinz adds to the story…
In a phone interview Monday evening, [Michele Piszczor] insisted she’s not a Republican plant, despite some indications to the contrary, but merely a recent college graduate who became “disgusted” at what she saw when she moved back home a few years ago. […]
That having been said, there’s been lots and lots of buzz about who sent Ms. Piszczor.
Like my report yesterday that Jim Edwards, a consultant who often works for Republicans, is chairing her campaign. (Ms. Pisczczor says Mr. Edwards is a “family friend.”) Or a report in Capitol Fax this morning that megabucks conservative activist Jack Roeser is bankrolling her. (Mr. Roeser was not available for comment.)
* I also talked to Jim Edwards today. He said that Roeser hadn’t yet committed to bankrolling Piszczor. But Jon Zahm, whom I quoted in my piece today, says he stands by his original quotes, which were that Roeser “is supporting” Piszczor.
Edwards chairs Piszczor’s campaign and also runs Roeser’s Illinois Republican Renaissance PAC (Roeser’s Family Taxpayers Network PAC has been dissolved).
That’s no mere coincidence.
* By the way, I concur with Greg’s belief (and laid out why to subscribers this morning) that the other two Democratic primary candidates are likely put-ups by Madigan to dilute Piszczor’s vote. They obviously knew Piszczor was circulating petitions. You can’t sneeze in that district without Madigan finding out about it. This, however, is troubling…
Since she started circulating her nomination petitions, Ms. Piszczor says her car tires have been slashed and its door beat in. “I’ve had city trucks going around my house at 1:30 a.m. and I wake up to find flat tires,” she says.
Then again, one of my tires was slashed while my car was parked in front of Madigan’s house one night many years ago, back when I briefly lived in the 13th Ward.
Hinz also reports that Piszczor hasn’t voted since 2008.
* You have to admit that it’s more than a little ironic that Speaker Madigan was repeatedly whacked in the media last year for allegedly putting up a Republican candidate against himself, and now a bunch of Republicans are backing an alleged Democrat against MJM.
* Let’s get this thing started. Your nominations, please…
* Best political bar in Springfield
* Best political restaurant in Springfield
Make sure to explain your answers. Remember, this is far more about intensity than raw numbers. Also, please nominate in both categories. Thanks much and have fun.
*** UPDATE 1 *** I just talked to a DuPage Republican who was told that the Walsh announcement will take place this Thursday. Stay tuned.
*** UPDATE 2 *** As if on cue, the brand new press release…
Congressman Joe Walsh will make an important re-election announcement this Thursday at the Chicago Tea Party meeting. After spending the last week discussing his options with family, supporters, and party officials, Congressman Walsh believes the choice is clear.
Walsh stated “During my first year in office I upheld my campaign promise to do everything I could to rein in the mistakes that were made by the Obama Administration. From voting to repeal Obamacare, cutting spending, cutting taxes, and cutting the size of government, I have made it my mission to stop and roll back the damage that President Obama and Nancy Pelosi created. At the same time, I have also challenged my own party leadership when I think they did not go far enough. It is for that reason that I was one of only 22 Republicans who opposed the compromise that created the failed Super Committee.
I did not run for Congress to become part of Washington, I went to Washington to change the way Washington worked. It is why I have pledged to only serve three terms, it is why I turned down my health care and pension, it is why I sleep on my couch, and it is why I come home every single week and have hosted close to one hundred town halls.
During those numerous town halls I have heard from Republicans, Democrats, and Independents who feel as if both parties have failed them, and that Washington is out of control. Like me they feel as though their country is being taken away from them, and that it is time to be bold. Whether you call them tea party members or just frustrated, patriotic Americans, this group of individuals is growing. They are fed up and want change now. I can think of no better place to announce important news concerning my re-election than in front of these folks at the Chicago Tea Party meeting.
Tea Party Rep. Joe Walsh (R-Ill.)– who boycotted President Obama’s jobs speech, said Obama should “quit lying” and that the president “got no shame,” waited in line with his wife Monday at the White House for a photo with Obama and First Lady Michelle.
The Obamas are hosting a series of holiday parties and Monday was the night where members of Congress were invited to welcome the holiday season. Someone who was at the party tipped me that Walsh was there and was in the photo line.
Update 1 regarding the photo line.Justin Roth, Walsh’s chief of staff told me Walsh was at the White House holiday party but “most definitely” did “not take a picture with the president…did not meet him.”
Rep. Joe Walsh (8th), not one to steer clear of attention, remained curiously absent this week.
The freshman Republican said over the weekend he’d announce Monday which district he picked to run in for re-election. Monday came and went with no answer.
In September Walsh announced he would run against 14th District Rep. Randy Hultgren in the March primary. But rumor had it last week he may return to the 8th district, where he’d face Democrats Tammy Duckworth or Raja Krishnamoorthi.
“Part of me just doesn’t want to give the district to the Democrats,” the freshman Tea Party Republican said during a town hall meeting Saturday in St. Charles.
It’s not known when Walsh will come to a decision, and calls to his office Monday went unanswered.
* The DCCC sent out a press release late yesterday afternoon mocking Walsh…
Joke: How to Silence Congressman Joe Walsh?
Punch-line: Ask him where he’s running for re-election.
Although Congressman Joe Walsh (IL-08) claimed he would announce his future political plans today, he’s remained silent-a rarity for the cable-hungry Congressman who actually screamed at his own constituent. Last week, Congressman Walsh reportedly was mulling over running in the new 8th and 14th Congressional districts.
“Who knew that asking Congressman Joe Walsh about his favorite subject, himself and his political career, would elicit silence?” asked Haley Morris of the Democratic Congressional Campaign Committee. “Perhaps Congressman Walsh is starting to realize that redistricting lines aren’t the problem, it’s his track record in Washington as a deadbeat on jobs. No matter where Congressman Joe Walsh chooses to run, he will have to defend pushing an extreme, out of touch Republican Congressional agenda that ends Medicare and gives out more tax breaks to millionaires and Big Oil.”
I’ve tried reaching Walsh several times. No response yet.
* The hearing begins at 10 o’clock this morning. Blagojevich is not expected to be sentenced until tomorrow, but he could testify today. We’ll see. I’ll be posting stories and Tweets throughout the day. Apparently, there’s a crowd of reporters outside Blagojevich’s house as of early this morning, and we could have live video soon. A handy list of the counts against Blagojevich is here.
Blackberry users click here, iPad and iPhone users remember to use the “two-finger” scrolling method…
* I’ll post a Blagojevich-only live blog later this morning. Meanwhile, BlackBerry users click here, iPad and iPhone users remember to use the “two-finger” scrolling method…
* There have been rumblings about the Republicans backing a Democratic primary candidate against House Speaker Michael Madigan. Greg Hinz profiles one new entrant…
A press release announcing a race by 25-year-old Michelle Piszczor — an Hispanic woman in an increasingly Latino district — hit my email today.
The release includes a neat picture of Ms. Piszczor and Secretary of State Hillary Clinton, as well as a link to a professional-looking website that talks about her and her record.
The release says Ms. Piszczor, who is described as a Chicago native and University of Texas Pan-American graduate, knows “what it is like to live paycheck to paycheck,” but says Mr. Madigan “doesn’t have to struggle financially (and) does not connect with the community or provide solutions for their concerns.”
But the media contact on the release won’t say where Ms. Piszczor works, saying the candidate would answer that and any other questions I might have when she calls.
Actually, three Democratic candidates filed to run against Madigan today. That would make sense if MJM was attempting to dilute the opposition in anticipation of a GOP plant. “The more the merrier” is the standard procedure in primary races.
*** UPDATE 1 *** Impressive news in a press release…
State Senator Dave Koehler will officially launch his campaign for re-election later today when he delivers his paperwork and petitions to the State Board of Elections in Springfield tomorrow. Under Illinois law, candidates for the Illinois Senate must submit petitions with the the signatures of at least 1,000 people who support their candidacy. Koehler collected more than 4,000 signatures in two days after he decided he could best serve the people Central Illinois by remaining in the State Senate.
“It’s been a monumental undertaking to collect all the signatures needed to get on the ballot in a single weekend,” Koehler said. “I’ve been overwhelmed by the outpouring of support I’ve received from the people of Peoria, Tazewell, and Fulton Counties. I really want to thank all of the volunteers who helped me collect three times the number of signatures I needed.”
Under Illinois law, candidates are only allowed to submit 3,000 signatures. Each signature must come from a registered voter who lives in the candidate’s district. Most candidates collect their signatures over the course of weeks, and many submit far less than Koehler’s 4,020.
…Adding… If you’re wondering about Joe Walsh’s big announcement today, we’re still waiting. I sent him an email message not long ago and even tried posting on his Facebook page. No response yet.
* Many of you probably remember my first ever intern Paul Richardson. Paul went on to get his law degree and now has a small but growing company creating and managing legal-services blogs. He sent out this e-mail today…
I bugged some of you a few weeks ago, asking for your vote for a “Top Tort Blog Contest.” And thanks to your comments, one of the blogs that I manage was named a Finalist in the contest! But now I need your help one final time (I promise). For the next five days only, they are taking votes via on online ballot box for THE Top Tort Blog of the Year. It would mean a lot for my little blog writing company if we were able to pull this thing off. Based on the total number of nominations in the last round, we were one of the top 3 blogs. In other words, we have a very real chance of winning.
All it takes to vote isClicking Here, and selecting “Illinois Medical Malpractice Blog.” They may ask you to log-in, BUT you can do that using your Facebook, Google, Twitter, or LinkedIn account. So you don’t have to fill out any new information.
I would genuinely appreciate the support. It means a lot.
I didn’t have to log in on two different browsers. I navigated over to the site and voted for the “Illinois Medical Malpractice Blog” and then got a blank screen. But when I went back, I received a message thanking me for my vote. So, it worked. Both times. (Hint.)
*** UPDATE *** The House Personnel and Pensions Committee has scheduled a Sunday hearing in Springfield. Not sure what that means as of yet.
[ *** End Of Update *** ]
* Greg Hinz follows up on something I told subscribers over the weekend and then elaborated upon this morning…
As first reported by Rich Miller at Capitol Fax over the weekend, the deal centers on breaking up the big tax-reduction package that stalled in the Legislature last month into three separate pieces.
Piece one, according to a well-connected lobbyist, would give about $100 million a year in tax breaks to CME Group Inc., CBOE Holdings Inc. and Sears, as well as extending the corporate research-and-development tax credit and reviving the corporate loss carry-forward provision.
Bill No. 2 reportedly would raise the state’s earned-income tax credit for working folks. No. 3 would raise and adjust to inflation the standard deduction on the individual income tax.
For this deal to work, all three bills have to have enough support to make it through both houses and to Gov. Pat Quinn’s office. As his spokeswoman again repeated to me today, “We’re committed to help, so long as any deal also includes tax relief for working families.”
That could be particularly difficult in the House, where some Downstate Democrats are reluctant to back an earned-income tax credit hike, and few if any Republicans are believed to support it.
Rumors are spreading about a Springfield return next Monday, but those rumors are apparently premature. I’ll let you know when a return day is soup.
…Adding… To explain a bit more, the House polled members on a Monday return date, but the Senate Dems left Monday off their member poll. The SDems are now asking members about their availability for a Monday return. We’ll see what happens.
* In other news, Treasurer Dan Rutherford today reacted to criticism of some budget comments he made last week. Listen…
U.S. postal officials say they can save more than $48 million over the next 10 years by closing the postal station in the Stratton Office Building next to the Statehouse in Springfield.
However, the leader of the local postal workers union said the numbers appear to be inflated and he is launching an effort to keep the facility open. […]
“We only have one person that works there,” O’Connell said. “They used to have two people there. Now they have only one. I’ve put information requests in. They can’t explain where they are getting this figure.”
Postal service spokeswoman Valerie Welsch said she doesn’t know how that figure was computed.
“They don’t share that with me, but I’m sure that probably includes not only salaries, but benefits” Welsch said.
That’s a lot of benefits, man. Is that one worker provided with a full complement of butlers, maids and drivers, all with gold-plated pensions?
Because taxpayers lose out on the earned income tax credit as their income increases, there is incentive for workers to keep their income under the “phase-out” level. Specifically, the only time during which the government rewards the worker for earning more money is when the worker’s income is moving from zero to $12,750. The federal earned income tax credit only encourages work effort in the phase-in income range where the effective marginal tax rate is negative 40 percent. The taxpayer is, at best, indifferent during the plateau stage where the effective marginal tax rate is 0 percent. During the phase-out state – $41,000 for a single person and $46,000 for a married couple – the taxpayer is actually penalized with an effective marginal tax rate of 21 percent. Since the income range of the phase-out (21,800 to $46,000) is twice as large as the income range of the phase-in ($0 to $12,750), the federal earned income tax credit is spreading more work disincentive than incentives.
With a hat tip to a commenter, here’s an actual study of the real world which doesn’t rely solely on rigid ideological theories…
The authors use a unique data set of federal tax returns to analyze usage and participation patterns of the Earned Income Tax Credit (EITC) over the period 1989–2006. The authors find that most EITC recipients claimed the EITC for short periods, 61% for 1 or 2 years. Over the period examined, the EITC reached approximately 50 percent of the taxpayers with children. Finally, the authors find considerable income mobility among the EITC eligible population. Only 11 percent of those claiming the EITC in 1990 and in the third decile of income were in the same decile in 2003. They also find that 20 percent of EITC claimants claim the EITC for more than 5 years.
With special interests handing out more than a million dollars in campaign contributions before a controversial vote, state legislators are starting to point out the elephant in the room and discussing campaign finance reform.
The issue has long been a tightrope walk, hoping to strike a balance in competitiveness, fair play and ensuring every citizen’s politics are appropriately represented.
Legislation allowing Commonwealth Edison and Ameren to make high-tech upgrades to aging state infrastructure that was passed recently came with a price tag of larger annual rate increases for customers. But to the chagrin of some voters and advocates for finance reform, groups that were in favor and in opposition to the bill collectively made about $1.05 million dollars in campaign donations in a non-election year. […]
[Illinois Campaign for Political Reform] Executive Director Brian Gladstein said for many there was at least a perception that big business had an impact over the way legislators voted; possible reforms might eliminate such a perception from even occurring.
“It brings it up, people asking these questions and creating distrust toward our politicians … If it’s true or not, to me, isn’t the point,” Gladstein said. “Without that smoking gun, where there’s an absolute connection between a contributor taking that money and taking back votes, we don’t know … but I do think there’s that perception. And we’re talking about the public good … I think there’s an important role for politicians to play, to say ‘We’re not going to take this money when there’s a public interest battle.’”
“If it’s true or not, to me, isn’t the point.”
Um, OK.
But unless we ban all campaign contributions and move to publicly financed campaigns (something I support, by the way), then we’ll have this problem on just about all legislation, because there are “public interest battles” on pretty much everything under the Dome.
Officials tinkered with the state budget to come up with extra money that Gov. Pat Quinn can use to run seven state facilities he had planned to begin closing within days. They also shuffled money around to come up with more cash for substance abuse services, community mental health programs and even funerals for indigent people.
There are tradeoffs, however.
…Officials also decided there was surplus money in a special fund that helps support government pension systems; instead of giving that extra $95 million to the struggling pensions, they’re diverting it for other uses.
If the budget had been constructed properly in the first place, that $95 million would’ve never gone to the pension fund, in this case the State University Retirement System. It’s not a “diversion,” it’s a transfer that happens whenever that particular fund shows an excess.
Treasurer Dan Rutherford is actually responsible for this excess cash. His office reportedly notified the General Assembly that the surplus existed, but for whatever reason the House never included it in the budget. There’s no reason to give the pension funds more than they say is required when the rest of the budget is being cut.
Lawmakers scheduled themselves another day in session for the express purpose of getting the massive tax-breaks package approved. But that left details of the final House proposal to be negotiated over Thanksgiving week, so the bill wasn’t filed until Sunday, leaving no time to line up support in the House before committee hearings Monday and that fateful extra session day on Tuesday. On that day, lawmakers once again went home after failing to get support for either of two bills, with the House and Senate disagreeing sharply on elements that have nothing to do with Sears.
So there you have it — a monumental tale of legislative foot dragging. The General Assembly says it’ll keep trying, but it has no more meetings scheduled this year.
We previously have urged lawmakers to separate Sears from the umbrella bill and consider tax breaks for the retailer on their own merits. We reiterate that position, and advise lawmakers to take up Sears tax breaks again with a greater sense of urgency. With a $400 million offer on the table, Ohio leaders certainly seem to have had no trouble assessing the value of having the retailer in their state.
It might already be too late. Sears, while seeking to reassure workers, says it’ll stick to its plan to decide by the end of this year whether to stay or go. In light of that, comments by Senate President John Cullerton and others that the matter will keep until the legislature returns in January seem cavalier.
So many problems with so few paragraphs. The Senate passed its bill with a super-majority, but that’s not even mentioned. Cullerton was referring to the fact that Sears and CME might take heart in the fact that the Senate has already passed a proposal, and since the tax cuts don’t take effect until July 1st of next year there’s plenty of time to get something done. Also, there will likely be another session day this month, and there are no session days scheduled in January.
Sometimes, legislative matters take time. This is obviously one of those times.
Mayor Rahm Emanuel on Friday disclosed plans to “recalibrate” former Mayor Richard M. Daley’s 10-year plan to end homelessness by creating jobs and permanent housing, improving 311 service and reducing “youth homelessness” that impacts 16,000 Chicago Public School students.
The mayor’s 2012 budget already includes a seven percent boost in city funding for homeless services—to $8.56 million–and a new 20-bed shelter for 18-to-24-year-olds, Chicago’s second “youth shelter.”
But that’s nowhere near enough to accommodate a 98 percent increase since 2003 in the number of CPS students either “doubled-up” with other families or living on the streets, said Ed Shurna, executive director of the Chicago Coalition for the Homeless.
Rep. Aaron Schock, R-Peoria, sends every graduating high school senior in his district a congratulatory letter and a “certificate of special congressional recognition,” along with a voter registration form. That would be an exceptionally nice gesture if he paid for it with his own money.
Since April, Schock has been chairman of the House Franking Commission, a six-member panel that reviews taxpayer-funded communications to make sure the privilege isn’t abused. Schock told Skiba (in writing) that the panel is “focused on transparency and giving the public more information regarding member communications,” but he refused to be interviewed and wouldn’t say how much those graduation wishes cost the taxpayers.
We guarantee that if incumbents had to spend their own money, as their challengers do, they’d be more judicious about how they communicate with the people in their districts. Cheaper options abound: Email. Facebook. Answering reporters’ questions.
Since when do challengers, except for wealthy challengers, pay for anything out of their own pockets?
* Here are last year’s Golden Horseshoe winners, with runners up in parentheses…
* Best political bar in Springfield: The Globe
* Best political restaurant in Springfield: Saputo’s
* Best Springfield hotel: Statehouse Inn
* Best campaign staffer - state legislative: Shaw Decremer (Heather Weir Vaught)
* Best campaign staffer - constitutional office or congressional: Eric Elk (Mary Morrissey)
* Best campaign spokesperson: Aaron Chambers (Patty Schuh)
* Best government spokesperson: Steve Brown (Ashley Cross)
* Best Senate secretary/admin assistant: Nancy Beaty (Robin Gragg)
* Best House secretary/admin assistant: : Beth Hamilton (Kristin Milligin)
* Best Illinois state Representative: Bill Black and Greg Harris (tie)
* Best Illinois state Senator: Don Harmon (Gary Dahl)
* Best Statehouse contract lobbyist: Dave Sullivan (Mike Kasper)
* Best in-house lobbyist: Eileen Mitchell (Pat Devaney)
* Best “do-gooder” lobbyist: Jonathan Goldman (Dick Lockhart)
* Best Statehouse “insider”: Mike McClain (Bill Luking)
* Best Illinois state agency director: Julie Hamos (Gary Hannig)
* Best Illinois congresscritter: Dick Durbin (Peter Roskam)
* Best Illinois statewide elected official: Dan Hynes (Bill Holland)
* Best state legislative staffer - non-political: Jessica Handy (John Hollman)
* Best CapitolFax.com commenter: Wordslinger (Steve Schnorf)
* The Question: Are there any new categories you’d like to see? Make sure to explain your answer. These awards are based more on intensity than frequency.
“There is probable cause to believe that Representative Jackson either (1) directed a third-party, most likely Mr. Raghuveer Nayak, to offer to raise money for Governor Blagojevich in exchange for appointing Representative Jackson to the Senate seat, or (2) had knowledge that Nayak would likely make such an offer once Representative Jackson authorized him to advocate on his behalf with Governor Blagojevich.”
The report, originally compiled in August 2009, also said there is “substantial reason to believe” Jackson Jr. violated federal law by using his congressional staff to mount a “public campaign” to secure a Senate appointment
In response, Congressman Jackson threw his staff under the bus…
Representative Jesse L. Jackson Jr. of Illinois has acknowledged to House ethics investigators that his Congressional staff may have inadvertently violated ethics rules in late 2008 by helping him wage a public campaign to be appointed to the Senate seat then being vacated by Barack Obama. […]
[Jackson’s lawyers] acknowledge that Mr. Jackson’s staff helped him run his campaign for the job. At first, Mr. Jackson’s lawyers argued that this work was done voluntarily by Mr. Edmonds and another House aide, Rick Bryant, on their own time, even if it might have taken place during work hours, so it was not a violation of the House rules.
House office equipment may have been used, the lawyers acknowledged, but it was so incidental that it may not formally violate House rules. Yet they acknowledge to the ethics committee that Mr. Jackson’s staff may have stepped over the line.
“To the extent that the committee concludes that any activities engaged in by Edmonds and Bryant in congressional offices went beyond the exceptions discussed in the House Ethics Manual, such violations were inadvertent and resulted from the novelty of the situation presented by the vacant Senate seat,” Mr. Jackson’s lawyers said in the letter, a 17-page statement that Mr. Jackson signed last month, swearing to its accuracy.
There has been no hint the defense intends to strike a conciliatory tone. In challenging prosecutors’ proposed sentence, Blagojevich attorney Carolyn Gurland said it is “disconnected to the facts of this case . . . in which the initiative and action at issue were all perfectly legal.”
An earlier filing also suggests Blagojevich may not accept any guilt. His attorneys asked to play unreleased FBI wiretap recordings at the sentencing that they claim show Blagojevich never had ill intent. Zagel rejected the request, which hearkened to Blagojevich’s mantra since his Dec. 9, 2008, arrest — that if authorities only played all the recordings, they would clear him of wrongdoing.
* But Ed Hammer believes that George Ryan’s crimes were far worse…
If he receives the maximum punishment at his sentencing Tuesday, Rod Blagojevich will be put in jail for 20 years. That’s a much longer than the 6 1/2 year sentence former Gov. George Ryan is currently serving for corruption during the Kankakee native’s term as Illinois Secretary of State.
Ed Hammer, author of “One Hundred Percent Guilty,” a 367-page unapologetic takedown of Ryan’s term as governor, shared comparisons of the two convicted former governor’s while visiting Paperback Reader on Saturday. He spoke to The Daily Journal and about 50 residents who came to purchase autographed copies of his book.
Hammer said Blagojevich’s corruption was more damaging to the state “in terms of dollars and cents,” but he said that Ryan’s corruption was arguably worse, since the “license-for-bribes” scandal resulted in fatal accidents involving drivers who otherwise wouldn’t have had their licenses.
“You can’t point to an incident with Blagojevich where people were killed,” Hammer said. “My research shows that at least 12 deaths occurred in accidents with drivers who got their CDLs that were sold through bribery.”
Except that Ryan wasn’t convicted of that stuff. He might’ve been worse, but that’s not what is on the judge’s table.
Dan Rostenkowski: Congressman from 1959 to 1995. Pleaded guilty in 1996 to two federal counts regarding actions during time in Congress. Sentenced to 17 months, imprisoned for 15 months, from 1996 to 1997.
Mel Reynolds: Congressman from 1993 to 1995. Found guilty in 1995 on state counts related to having sex with a minor. Sentenced to five years. Then found guilty in 1997 on 15 federal counts regarding actions during campaigns for Congress. Sentenced to six and a half years. President Clinton commuted his sentence in 2001.
Betty Loren Maltese: Cicero town president from 1993 to 2002. Found guilty in 2002 on six federal counts regarding actions during time as town president. Sentenced to eight years, imprisoned for seven years, from 2003 to 2010.
Jim Laski: Chicago city clerk from 1995 to 2006. Pleaded guilty in 2006 on one federal count regarding actions during time as alderman and city clerk. Sentenced to two years, imprisoned for less than a year, from 2007 to 2008.
Tom Keane: Alderman from 1945 to 1974. Found guilty in 1974 on 18 federal counts regarding actions during his time as alderman. Sentenced to five years, imprisoned for less than two years, from 1976 to 1978.
* Jackson Staff Aided Pursuit of Appointment to Obama Senate Seat
* Jackson letter describes relationship with central figure in Blagojevich probe - Congressman’s view of events released by House panel, which says it will continue investigation
* Jesse Jackson Jr.’s staff wanted Bill Cosby to pitch Blagojevich for Obama’s seat
* Jackson Jr. opponent: Ethics probe ‘distraction‘
* Chris Wetterich has written an excellent story about how the recent pension reform legislation designed to stop “union abuses” might include some unintended consequences…
HB3813 says someone on leave while working for a union has to contribute [to the pension system] based on the worker’s union salary, but that the final average salary has to be calculated using their public employee salary, adjusted for inflation.
The problem, [House Majority Leader Barbara Flynn Currie] says, is that the bill says that this is “a declaration of existing law and shall not be construed as a new enactment.”
“The General Assembly is telling the pensions that they have been miscalculating benefits for years,” she said. “It’s reasonable to assume that the pension funds will need to recalculate the final average salary of any retiree who took leave. This could result in a substantial reduction in benefits or even no benefit for those current retirees.”
Senate Democrats, who rewrote the bill before it came to the House on Tuesday, stridently disagree with Currie for two reasons:
–The Illinois Pension Code says changes to the code don’t affect current retirees unless legislators specifically say in the bill that they should.
–House Minority Leader Tom Cross, R-Oswego, HB3813’s sponsor in the House, read a series of statements known in General Assembly parlance as “legislative intent” into the record before the vote. […]
Currie believes the Senate was concerned that union leaders would sue and argue the bill is an unconstitutional change in existing benefits. The Illinois Constitution bars the state from diminishing pension benefits, which are like a contract between the state and local governments and their employees, once they are hired.
“We know that the Senate parliamentarian, Eric Madiar, is very much of the view that we can’t make changes in midstream,” Currie said. “So here he’s got this little problem: Are we going to go ahead with this bill, which may raise the same question? I think that their solution language that says ‘declarative of existing law’ gives him a place to hang his hat.”
This is what happens when the GA writes legislation based on newspaper editorials. Not good. Go read the whole thing.
Illinois led the nation with a 30,000 gain in jobs [in October], followed by California with 25,700 jobs. Virginia, Pennsylvania and Washington rounded out the top five states with the biggest gains.
We’re number one on something good for a change? Wow.
Wisconsin posted the nation’s biggest payroll losses, with employment dropping by 9,700 jobs in October compared with September, according to a U.S. Bureau of Labor Statistics report released Tuesday.
The bureau said Wisconsin was the only state with a statistically significant decline in employment, dropping from 2,757,200 jobs in September to 2,747,500 jobs in October.
Workers filing on-the-job injury claims at just a dozen state institutions clustered in southern Illinois collected nearly one-third of the total $127 million awarded in recent years for permanent impairment under Illinois’ troubled workers’ compensation system, The Associated Press has found.
Leading the pack was Menard Correctional Center in Chester, according to an AP analysis of state records. Employees at the prison, now a focus of three fraud investigations into the injury-claim process, collected $19 million in long-term benefits from 2007 through 2010. That’s nearly twice the amount previously reported.
But beyond Menard, the AP study found a pattern of large payouts at 11 other state facilities within 80 miles - including prisons and juvenile detention centers, mental health and developmental centers. In all, the dozen state facilities accounted for $40.7 million of the compensation for injured workers’ long-term impairment during those four years. […]
For example, workers at Menard blamed repetitive stress injuries on operating the 130-year-old prison’s hand-crank locks. But payments - many for the same type of injury - at the more modern Pinckneyville prison, just 35 miles from Chester, ranked second-highest in the state despite a more up-to-date electronic locking system.
Pinckneyville employees received $4.6 million for permanent-injury claims, compared to only $1.6 million at Stateville Correctional Center in Joliet, which opened in 1925 and has twice as many employees.
It’s a fairly common Statehouse phenomenon that bills will zoom out of the Senate or the House and then flame out in the other chamber.
People in the other chamber don’t always care as much as the people who first sponsor the bills. Often, they also don’t want to be pushed around by the other chamber.
That explains part of what happened last week, when the Senate passed a major tax cut package with a supermajority of 36 votes and then the bill received only eight votes in the House — despite the fact that the Senate bill would cost just a few million dollars more than the House plan.
There’s far more to this failure than the usual House vs. Senate dynamic, of course. House Speaker Michael Madigan (D-Chicago) has declared neutrality on the bill, apparently because of a conflict of interest. Without the “Velvet Hammer” pushing hard for a hugely controversial measure, the House couldn’t get it done.
House Majority Leader Barbara Flynn Currie (D-Chicago) has made it clear that she’s skeptical of the repeated threats to leave the state by CME Group and Sears. Part of that tax cut bill would lower both companies’ taxes. House Democrats could have taken her public comments as a sign that Madigan was not thrilled with this tax cut idea.
House Republicans have been irritated with Senate Republicans all year, and vice versa. That irritation came to a head at the end of the spring session, when many Senate Republicans supported the workers’ compensation reform bill while House Republicans opposed it, and House Republicans backed the budget while Senate Republicans all voted against it.
The House GOPs say their Senate counterparts undercut them again on last week’s budget deal, and they were furious that nine Senate Republicans voted for the tax cut bill after House Republican Leader Tom Cross (R-Oswego) made it clear that he and his caucus were opposed.
Cross’ opposition was certainly a major factor in the bill’s overwhelming failure in the House. The Democrats say they had 38 of the 60 votes needed to pass it, but almost all of them bolted as soon as they realized that the House Republicans wouldn’t be supporting the bill. There’s no sense in being on record supporting a controversial bill when nobody else is.
Cross said his caucus had problems with the Senate’s increase of the state’s earned income tax credit, which was higher than the House version, as well as the Senate’s indexing of the standard income tax exemption to inflation. Cross also said he didn’t believe that CME Group’s new tax levels ought to be as low as the company claims.
Democrats in both chambers believe that Cross has some ulterior motives for opposing the tax bill . They point to everything from big CME Group campaign contributions to Democrats, to big Cross contributors, to campaign politics related to Sears’ portion of the bill.
Nobody offered any proof of any of their allegations, of course, but there’s no doubt that Cross holds the cards here, and he doesn’t appear to be cooperating. Cross said he’d put 30 votes on a revamped proposal that eliminated all tax relief for the working poor, but the Democrats say they’d only get 10 to 15 votes for such a plan, which would leave them far short of a 60-vote majority.
So, where does the General Assembly go from here? Democrats in both chambers believe they need to put public pressure on Cross. That’s easier said than done. Democrats control the government, after all, and blaming the minority party is never a simple thing to do.
The Democrats tried to blame the GOP for the failure of the proposal to borrow money to pay off the state’s overdue bills, but it didn’t work. They’re still getting the blame for that. And the Democrats will undoubtedly wear the jacket if CME and Sears bolt the state for greener pastures, even if it isn’t their fault.
Some top Democrats believe that Chicago Mayor Rahm Emanuel must get more involved. Because Madigan’s neutrality means nobody with any real clout is pushing the tax cut bill in the House, Emanuel will have to take Madigan’s customary place.
* Related…
* Clock is ticking to keep Sears, CME in Illinois: “As much as I agree with my colleagues that the tax increases were the wrong way to go, in my opinion, even if the state hadn’t had the increase, we’d still be facing the same issues with CME and Sears,” said David Harris, R-Arlington Heights, the GOP spokesman on the House Revenue Committee. He and Bradley crafted the slimmer tax-break package, which never got a full vote.
* Business bidding war: Where will it end?: Harris said he isn’t sure there is a way to stop businesses from threatening to move. “That’s the kind of bidding war that exists out there among states,” he said. “If a business says ‘if you don’t give us X, we’re going to leave the state,’ we’re going to look at that and decide is it worthwhile keeping you here or do we let you leave.”
* Quinn: Get Sears deal done this year: “Rep. Bradley and Leader Cross had a very positive conversation this afternoon regarding a jobs plan with the goal of coming to a resolution in the next couple of weeks,” Cross spokeswoman Sara Wojcicki Jimenez said Friday. She said talks between the two were likely to continue into the weekend.
* Erickson: Even invoking Scrooge doesn’t get votes
* Finke: Legislature inching toward year-round work
