* Another lawsuit has been filed to overturn the state’s new law that strips retirees of their free health insurance premiums…
The retirees’ suit argues that the law “gives the director no intelligible standards” to determine the level of contributions and “as such, is an invalid delegation of legislative authority to an administrative agency or officer.”
The lawsuit says the law violates the pensions clause of the Illinois Constitution, which prohibits the diminishment of pension benefits once they are earned.
The suit also says the new law violates the contracts clause of the Constitution because state law provided for premium-free health insurance after 20 years as a “term and condition of employment” for the five plaintiffs.
One count in the complaint was brought specifically by Kanerva and Hoover, both of whom retired as part of the 2002 early retirement incentive program. The lawsuit says the state promised premium-free health and dental insurance for life to early retirees and that Kanerva and Hoover relied on that promise when they decided to take early retirement.
The lawsuit seeks class-action status on behalf of an estimated 10,000 merit compensation employees who retired with at least 20 years of service. Merit comp employees are not covered by collective bargaining agreements.
Thoughts?
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Today’s history lesson
Wednesday, Jul 11, 2012 - Posted by Rich Miller
* Eric Zorn looks at the history of employer contributions to teacher pension funds…
Chicago started its own teacher pension fund in 1895, and the non-Chicago statewide fund started in 1913. Then in 1939, the laws were overhauled, benefits were standardized and the Teachers’ Retirement System of the State of Illinois — the suburban and downstate program — was formalized.
Why didn’t the two systems just merge at that time?
“Because ours was older and much better funded,” said James F. Ward, 74, executive director of the Chicago Teachers’ Pension Fund from 1967 until 1997. And Chicago was able to strike a deal that funneled a fair share of state tax revenues into funding pensions for Chicago Public Schools.
That all changed in 1995 with the deal that ceded control of CPS to Mayor Richard M. Daley. Part of the arrangement called for the Chicago Board of Education to have the flexibility to mingle education funds with funds formerly earmarked only for pensions, Ward said.
Another part of the deal was that the state would try to kick 20 to 30 percent of overall teacher retirement-fund payments back to Chicago, kind of like in the old days. But this aspiration — this goal — has lately gone by the wayside as budgets have tightened.
In fiscal 1995, the first year of the deal, Chicago got 23.2 percent of the money that went to the Teachers’ Retirement Fund. Fair enough, or close to it.
By fiscal 2012, that figure had dropped to 0.4 percent — not quite nothing but almost — with Chicago getting shorted by roughly $540 million, according to Chicago Teachers’ Pension Fund estimates. And some of the local money formerly earmarked for pensions instead went to paying the ongoing costs of running city schools.
Discuss.
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* Gov. Pat Quinn held a press conference today to sign the legislative scholarship abolition bill into law. From a press release…
Governor Pat Quinn today signed a new law abolishing the century-old political scholarship program in Illinois, one of his ethics reform goals since taking office. The Governor proposed to abolish this troubled program in 2009, 2010 and in 2011, and worked with the General Assembly to get it done this spring. Governor Quinn is committed to increasing college scholarships to students with merit who are in true financial need as well as restoring integrity to state government.
“There is no place for political scholarships in Illinois,” Governor Quinn said. “I believe in the power of education, the importance of ethics and integrity, and the idea that you can get ahead in life with a little hard work. That’s why today I enact this long-overdue reform and redouble our efforts to increase scholarships for deserving college students.”
Raw audio of Quinn’s announcement…
Raw audio of the Q&A…
* Coincidentally, or not, the Sun-Times splashed a related story today…
The U.S. attorney’s office has opened a criminal investigation into a series of legislative scholarships awarded by state Sen. Annazette Collins — marking an expansion of a federal probe into the scandal-tainted tuition-waiver program.
The Chicago Sun-Times on Tuesday obtained a copy of a June 1 federal subpoena issued by then-U.S. Attorney Patrick Fitzgerald’s office that seeks an array of records regarding the waivers the West Side Democrat handed out during an 11-year career as a state representative and senator.
The query follows Sun-Times reports in March about a series of questionably legal waivers Collins gave to five students who listed her former home as their official residence even though some had driver’s licenses or voter registrations linked to addresses outside her district. State law requires that legislative scholarship recipients reside in the awarding lawmaker’s district.
Reached Tuesday evening, Collins referred questions about the matter to her attorney, Michael Monico, who maintained his client’s innocence.
“This is a grand jury matter so it’s really not for us to comment on it at this point. We don’t believe that senator did anything criminal or that would arise to a federal criminal violation,” he told the Sun-Times.
The subpoena delivered to Collins’ district office asked that she “produce all information” concerning her “procedures for the establishment, awarding and operation of the Illinois General Assembly Scholarship” program.
Oof.
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Question of the day
Wednesday, Jul 11, 2012 - Posted by Rich Miller
* The younger brother of a good friend of mine had a very weird request for his 18th birthday last week. He asked me for a Capitol Fax subscription.
Now, I’m not in the business of handing out free subscriptions, but how can I turn down a high school student who is that interested in Illinois politics? I granted Andrew’s request.
Andrew is a really good kid, but he’s something of an odd duck. I mean, how many teenagers do you know who are addicted to this blog? Not many, I’d wager. Here’s a photo…
As you can tell, he’s also a bit of a joker.
* The Question: Caption?
And be kind, people. He’s only 18.
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IG out, Quinn issues executive order
Wednesday, Jul 11, 2012 - Posted by Rich Miller
* I’m still trying to catch up on the stuff I missed during my week off. Here’s a big one from the Belleville News-Democrat…
The head of a state agency set up to protect disabled adults has resigned after the News-Democrat reported that the agency did not investigate the deaths of people who were neglected or abused.
William M. Davis, the inspector general for the Department of Human Services, offered his resignation after Gov. Pat Quinn ordered him to meet with Michelle R.B. Saddler, the head of the Department of Human Services, regarding the findings of the stories. His resignation takes effect Aug. 1.
You have to wonder what, if anything, will happen to the people responsible for this policy besides IG Davis. So far, nothing.
* Davis’ resignation coincided with an executive order issued by Gov. Pat Quinn last week. From a press release…
Under Governor Quinn’s executive order, the state will strengthen protections for adults with disabilities who are suspected victims of abuse and neglect. The order will ensure referrals to the appropriate authorities are made and follow-up occurs after any death of an adult with disabilities who is the subject of a pending complaint investigation by the Department of Human Services’ (DHS) Office of the Inspector General (OIG), regardless of the circumstances.
Starting immediately, such cases will be reported, in writing, to local law enforcement and local coroners or medical examiners, and referrals will be documented. The OIG will follow-up on the cases to determine and document what actions have been taken and what determinations have been made by the law enforcement agency. In the past, the Office of the Inspector General referred many of these cases to local law enforcement and/or the medical examiner/coroner. In some cases, contact was made but not documented by OIG staff or the receiving entity, which is unacceptable. The OIG has also swiftly taken steps to strengthen policies and procedures to ensure referrals/notifications are properly documented.
The EO also calls for a review of all deaths of an adult with disabilities who was the subject of a pending investigation by the OIG since 2003. In such cases where documented referrals were made to law enforcement agencies, the OIG will follow up on the outcome. For all other cases, the OIG will undertake a detailed review of each file to determine whether further DHS OIG action or referral is required.
In the future, all cases, regardless of allegations, will be referred to local law enforcement.
* React…
State Sen. William Haine, D-Alton, said he thought the plan of bringing coroners and the police quickly into the investigation when a disabled adult dies is one of the strong points of the governor’s plan announced Friday.
“I think it’s an excellent plan. I’m very impressed by the quick turnaround by the governor and Secretary Saddler of the DHS,” Haine said.
State Rep. Greg Harris, D-Chicago, said Friday afternoon that he hadn’t seen the executive order but from a description supplied by a reporter said he thought it sounded like it could affect positive change. As for whether he will push for a convening of the House’s Human Services Committee, which he chairs, to inquire into past OIG procedures, he said he needed to study the order to detect “what gaps there may be.”
* The Tribune is half-impressed…
What the executive order does not address is the overly bureaucratic culture within DHS, which needs an overhaul. One provider told us the agency primarily pays attention to paperwork: An investigator might look at medical records or a financial audit, but thorough home visits are rarities. There’s not enough face-to-face contact with the disabled. […]
DHS needs more than a reactive executive order from Quinn. The state’s crisis-of-the-day management style in response to these cases doesn’t supply the focus on patients, not just paperwork, that DHS needs. “If someone gets into a community setting and they’re put in a place where their caretaker becomes their abuser, we need to react to that,” state Rep. Greg Harris, D-Chicago, told us. “If it’s necessary to appoint a guardian and move them out, we need to be able to do that. There are so many things wrong with this picture.”
Illinois often finds itself fixing problems after the damage is done — and, we’d point out, often in reaction to atrocities uncovered by journalists, not the state’s own army of investigators and inspectors general.
Harris will hold a committee hearing on the issue this month. That’s good. Illinoisans deserve answers.
But legislators and the governor need to look beyond DHS and its front-line services. Illinois needs a comprehensive strategy at DHS, the Department of Public Health and the Department on Aging to coordinate their staffs, pool resources and fill systemwide gaps that put fragile lives at risk.
The governor’s executive order doesn’t reach that far. But we agree with the mission it sets forth: “The state has an obligation to protect its most vulnerable citizens from abuse, neglect and exploitation.”
Agreed.
And, in my opinion, IG Harris shouldn’t be forced to shoulder the blame alone. Did an order come from the top to stop investigating deaths because the dead didn’t qualify for services? The News-Democrat reporters haven’t been able to find that out yet. We need some answers here.
* Related…
* ‘All safe now’: The ordeal of one victim: But behind that apartment door, Robert Loveless called his disabled wife “a stupid retarded b*tch,” according to a 24-page report by an investigator for the Office of the Inspector General of the Illinois Department of Human Services. He didn’t work and spent her Social Security disability check on himself. He paid more than $500 from her monthly stipend to buy a laptop computer and an Internet hookup to watch pornography.
* ‘Why is someone dropping the ball?’ Coroners aren’t called after deaths of disabled adults: A week after Smith’s death, a juvenile relative said she saw the caregiver slip something into Smith’s drink, according to an OIG hotline call summary and a police report. Neither White County Coroner Carl McVey nor Carmi police knew about the June allegation to the OIG hotline. McVey never ordered an autopsy or directed that blood be drawn for a toxicological screening, he said.
* Committee will review role of state agency at center of fatalities investigation
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* This is probably no surprise to ComEd customers…
Commonwealth Edison Co. had the worst household customer satisfaction of any large electric utility in the Midwest in the annual survey released today by J.D. Power and Associates.
On a scale of 1,000 points, ComEd’s score was 579, well down from last year’s tally of 590 in the same survey and far below the next-worst utility, Ameren Illinois. Ameren had a score of 606. Last year, ComEd had the second-lowest ranking among large Midwest utilities. […]
In its release Wednesday, J.D. Power said that customer satisfaction for the utility industry as a whole fell about 20 points in 2012, and it attributed much of that decline to increased power outages due to violent weather. It said that utilities could help mitigate consumer unhappiness by setting up better communications systems during storms.
* The study is here. ComEd’s score of 579 ranked below only large utilities Connecticut Light and Power and the Long Island Power Authority. Midsized power companies Orange and Rockland and Kentucky Power ranked lower than ComEd as well.
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*** UPDATED x1 *** Enough, already
Wednesday, Jul 11, 2012 - Posted by Rich Miller
* I couldn’t agree more with Brian Thomas…
I love Roe Conn (WLS-AM, 2pm- 6pm). But [yesterday] he started a nasty rumor about Jackson’s leave of absence, based upon two anonymous Washington sources. Until that story is confirmed (if it’s confirmed), he should have kept his mouth shut.
* Conn cited “two high-ranking people on the Democratic side of the aisle, in both fundraising and in the legislative branch” as sources for a rumor that Congressman Jesse Jackson, Jr. had attempted to commit suicide.
I asked a top Jackson staffer about that rumor and received this e-mailed response…
NO he did not. I hope you find the reporting of false rumors very disturbing. What has the news media become?
I do indeed find this all very disturbing. So did the congressman’s father…
“No, that’s not true,” Jackson Sr. told POLITICO. “He’s with his doctor and getting treatment, regaining his strength. That’s all I really want to say at this point.”
Jackson Sr. added that there is “no truth” to the WLS broadcast. “None at all,” he said.
An aide to the congressman also said the WLS report is inaccurate.
* From ABC News…
The source, who agreed to speak on the condition of anonymity, declined to provide any details on where Jackson is seeking treatment, but said that he is genuinely suffering from “exhaustion.”
“That’s what he has. He doesn’t get a lot of sleep and he has sleep disorders. He’s very energetic, running full-steam ahead, working six or seven days a week often and he’s been doing that for a long time,” the source said. “There’s a great deal of pressure on him due to unfounded allegations [related to the ethics inquiry] and negative press onslaught against him that are not true, so it kinda all caught up to him. He needed downtime to get away from grind.”
* Sun-Times…
A senior aide to the congressman told the Sun-Times that Jackson is being treated at a medical facility outside Illinois and that his doctors will release information “soon,” perhaps as early as Wednesday, though not necessarily.
“His condition is not life-threatening,” the aide said. “He does have sleep disorders. He works seven days a week most weeks. He has been under intense pressures over the last four years, so he wants to see if he can figure out a way to get some decent sleep.”
* Congressman Luis Gutierrez wants full disclosure very soon…
“He has a responsibility to give us more information. I’m not demanding that information, but the people of his congressional district deserve it. The people of Illinois deserve it. If he’s gonna stand for re-election, you guys are gonna demand it,” Gutierrez said.
“Let’s not kid ourselves. He’s going to have to answer these questions one way or another or I don’t know you guys in the Chicago press very well. You’re gonna get the answer. Why not give the answer at the earliest, most opportune moment?”
Yes, Chicago reporters are aggressive. Thankfully so. But that doesn’t excuse this rumor-mongering. And there may be a little spite involved as well…
Last year, tensions ran high between Gutierrez and Jackson after the decennial redraw of the state’s Congressional map. Jackson angered Gutierrez when he sought answers about whether the state’s burgeoning Hispanic population required a second majority House district.
Good point…
The reverend noted that he has long supported the political career of Durbin and signaled that he would be willing to talk about his son’s health.
“If he really wants more, he could call me. He could call the office, and we could talk about it.” Rev. Jackson told WBEZ radio. “I think it’s not appropriate to go any further at this point.”
* I don’t, however, agree with the Sun-Times editorial today, which concludes…
Jackson is still a father, a husband and a human being who deserves a measure of sympathy. Let’s give him space.
He’ll get his space when he makes some honest disclosures.
Discuss.
*** UPDATE *** Some early afternoon stories…
* Hoyer joins calls for Jackson Jr. to open up about mystery ailment: “Let me just deal with this briefly in this way: I think Congressman Jackson and his office and his family would be well advised to advise the constituents of his condition. He’s obviously facing a health problem. We have many members who are out right now. This is not an unusual circumstance. People get sick, and when people get sick, they miss work. Everybody in America understands that. But I think the family would be well advised to give his constituents as much information as is appropriate.”
* Pelosi expects Jackson to explain medical absence: House Democratic leader Nancy Pelosi says she expects Rep. Jesse Jackson Jr. to explain his weeks-long leave of absence after he has had an evaluation of his medical condition.
* Staff: Rep. Jackson could release more health info soon
* Rep. Jackson’s wife ‘hopeful’ doctors will release medical details soon: “I’m hopeful that my husband’s doctors will be able to release something soon,” she told the Tribune. “I’m in constant talks with them about Jesse’s condition and his medical prognosis going forward.”
* Quinn: Voters have ‘heard enough’ about Jackson: But the Democratic governor said Wednesday, “I think you’ve heard enough _ that he has some health challenges that he’s dealing with right now.”
* Jesse Jr. Story Goes National
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* Gov. Pat Quinn spent four days in Spain last week at his own expense, although the state paid for two staffers to accompany him. From last week…
Quinn has taken several overseas trips this year. This is the second trip his office did not announce before his departure.
Spokeswoman Brooke Anderson says Quinn is in Madrid meeting with businesses, commercial associations and government representatives. He arrived Thursday and is scheduled to return Sunday.
* The governor didn’t go into details at a recent press conference…
Back from a trip to Spain, Gov. Pat Quinn says there are opportunities to expand business relations with that country and Illinois.
Quinn says he met with companies in the bio-tech industry ahead of next year’s International Bio-Tech Convention to be held in Illinois.
“There’s opportunities for Illinois to grow a lot of jobs in this whole area of bio-technology so I got to visit with a lot of those companies,” Quinn said. “We’re anxious to have them come here, invest here, create jobs here, grow here and our exports to Spain are very strong. Last year we went up 29 percent and they’re good customers and you like to say thank you to people that buy your products.”
* But there was another agenda…
Gov. Pat Quinn traveled an estimated 8,000 miles last week to continue courting a train manufacturer looking to move out of Wisconsin. […]
Quinn spokeswoman Brooke Anderson later confirmed Quinn met with representatives of Talgo, which is seeking to move its Milwaukee railcar manufacturing facility to a new state after Wisconsin officials said they weren’t interested in bringing high-speed train service to the state. […]
For now, it doesn’t appear Talgo is in a rush to make a decision that could bring more than 100 jobs to a state that is working to bring 110 mph passenger train service to the route between Chicago and St. Louis. […]
Talgo spokeswoman Nora Friend said there is no timetable for the company to decide its next move. A key factor will be whether the company wins new contracts to build additional train cars. […]
“We would be very happy to consider Illinois. We’d love to move to Illinois. We know that Governor Quinn is pro-rail. We’re still hopeful,” Friend said.
Quinn talked last year like the Talgo move was all but a done deal. It appears there’s more work to be done before we snag that company.
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