* Besides the fact that the Speaker couldn’t “easily” have replaced Rep. Derrick Smith since there is no legal way to force him off the ballot, I’m not sure what Kass is really getting at here…
If you want to know how cynical and corrupt Illinois politics has become, you should focus on Springfield today.
Because there in the state Legislature, Chicago machine Democrats and their feeble Republican enablers will put on a thrilling anti-corruption show.
They will beat their breasts and make solemn vows about the public trust, they will talk about honest service, and when they’re finished, they will expel one of their own, state Rep. Derrick “Leave It in the Envelope” Smith, the West Side Democrat. […]
The very next day after the primary, Democrats called on Smith to step down. Madigan could have replaced him easily. But Smith declined. So the hearings were held, and speeches were made, and now the Legislature will dump him. Democrats have already lined up a friendly third-party candidate. But once Smith is booted, he’ll need a paycheck, and maybe they’ll find him one if he agrees to withdraw his name from the ballot in November. […]
Democrats weren’t the only ones making speeches. The Republicans were equally noisy, making grand sweeping gestures with their hands, raising their voices, talking tough but helping Madigan do the heavy lifting.
He says elsewhere in his column that this is relatively low-level stuff, but allegedly soliciting and receiving a cash bribe ain’t so low level. He also talks about the big guys going about their business while the little fish are caught, but isn’t that really just an indictment of the US Attorney and the FBI?
The big question I have is does he really think that the Republicans aren’t supposed to help remove Smith from office today?
Do I have that one right?
* You can follow today’s Smith expulsion session by clicking here.
Already slim chances that Friday’s special session of the Illinois General Assembly will result in state pension changes might have vanished altogether Thursday, when Senate Republican Leader Christine Radogno revoked her support for a halfway measure GOP senators previously helped pass.
Top aides to Gov. Pat Quinn said they were stunned by Radogno’s reversal, but they still hope to salvage the pension session. They said they have received positive feedback from credit-rating agencies about the partial pension proposal.
The bill, House Bill 1447, applies only to pension systems covering state employees and legislators, not to those covering downstate teachers, university employees and judges.
Speaking before Republican Day at the Illinois State Fair, Radogno said lawmakers should act to bolster funding for all five systems. She dismissed the idea that approving HB1447 would help the state’s bond rating.
“That’s ridiculous, to think that it would somehow avert a downgrade,” Radogno said.
* Senate GOP Leader Radogno has now allied herself with House GOP Leader Tom Cross and against a couple of key members of her own caucus on pension reform…
Senate Minority Leader Christine Radogno originally voted in favor of HB1447 [which passed the Senate with bipartisan support in May] but backed away from the proposal [yesterday]. “When it was passed, we were pretty clear that we thought that it was inadequate in terms of the fact that it only covered two of the five systems,” Radogno said. She cited concerns over estimates that could put the unfunded liability pension at a higher figure than the oft-cited $83 billion. “That bill clearly is not enough.” Radogno agreed with Cross that passage of the bill in the House could stall efforts at more comprehensive proposals. “The concern is that it will stop forward progress because a lawsuit will immediately be filed, in which case probably the party in power would say, ‘Well, we’ve got to wait until that unfolds and see what happens.’ So it’s just inadequate on too many fronts at this point.”
But not all of her GOP colleagues see it that way. Sen. Bill Brady, a Bloomington Republican, called HB1447 a “half measure,” but he said that if it is the only option that can gain enough backing to pass, he would support it. “Something’s got to be done,” Brady said. “This is the only solution on the table. Rome’s burning, and we need some incremental solution for this problem.” Brady does not share Cross’ and Radogno’s concerns that passing the bill would freeze efforts to reform the other systems. “I would argue that if we pass this, it will lead to passage [of reform] in the other systems.”
Sen. Matt Murphy agreed. “For those that say that it’s not enough and passing this doesn’t qualify as real reform, I agree wholeheartedly.” However, Murphy, a Palatine Republican, said he doesn’t think passing HB 1447 would hurt the reform process, and he said he would support it. “Personally, I don’t think the fact that we pass some pension reform means anybody thinks we’re done. I don’t think we’re done with just this bill, and I don’t think it takes the pressure off to solve the rest of the problem,” he said. “I think you can take what you can get now and then don’t slow the momentum. Use it as a springboard to finishing the job on the other systems.”
Legislators wrestling with the pension problems today are getting hammered by payment increases dictated by a law passed in 1995. Back then, Republican majorities in both chambers wanted to shore up the pension system, whose assets had dipped to only 54 percent of the money required to meet its obligations. So they passed a plan to return the pension systems to a 90 percent funding level over 50 years.
But the 1995 plan laid out a gradual path, and for 15 years the state’s payment increased only slightly. The bills started growing steeper in 2010, in the immediate aftermath of the Great Recession. Kelly Kraft, a Quinn spokeswoman, says leveling out the “ramp” must be part of a comprehensive deal to get pension payments under control.
State officials have deviated from the 1995 plan several times. For example, during former Governor Rod Blagojevich’s first two years in office in 2003 and 2004, the state issued pension obligation bonds and invested the borrowed money in the market, counting its projected profits as those years’ pension contributions.
Under Quinn, the state borrowed money for two years to make the pension payment. Now it has to pay those loans back, with interest, while also finding money for the ramped up payments.
Ralph Martire, executive director of the Center for Tax and Budget Accountability, a group that advocates better services for the poor, argues that worker benefits are not the root of the problem. The normal cost of providing pensions, he says, actually decreased slightly this year.
The real problem, Martire says, is that lawmakers skimped on pension payments for decades. They kept taxes low and provided more services than they could afford by depositing IOUs instead of cash into the pension funds. Now those IOUs are coming due. “In Illinois,” Martire says, “it isn’t a pension crisis. It’s a debt crisis.”
A bipartisan report from earlier this year shows that about 44 percent of the debt is because lawmakers and governors didn’t pay enough into the retirement funds over the years — sort of like skipping payments on a 401(k).
About 22 percent of the problem comes from poor investment returns, especially recently during the recession. About 9 percent is because of increases in benefits over the years.
The other 25 percent stems from a variety of other factors.
* You can follow the special session on pensions today by clicking here.
* One of the things we always watch during the Democrat and Republican State Fair days is who shows up to float their names for higher office. Nobody did that during the Democratic affair Wednesday because of the massive AFSCME protest. But there were some hopefuls at Republican Day…
Senator Dillard and at least three other elected officials at the state party convention say Pat Quinn’s latest political trouble is another reason for them to consider running for governor in 2014.
“Certainly what happened yesterday has me even more focused on whether I will run statewide again,” Dillard said.
“Let me just say bluntly, it’s an option that’s out there,” said Illinois Treasurer Dan Rutherford.
“I’m certainly going to take a very serious look at it after the first of the year,” said Sen. Bill Brady, (R) Bloomington.
“If there’s an interest in me running, I’m interested in helping the state turnaround,” said Sen. Murphy.
But party chairman Brady said it was too early to think about 2014.
“Every Republican should concentrate on getting Republicans elected this November,” said Brady. “There’s plenty of time to think about 2014.”
Kazillionaire Bruce Rauner didn’t show up. Rauner is considered a likely gubernatorial prospect, as is Congressman Aaron Schock, who also wasn’t around.
“I haven’t heard any speaker drowned out by boos, but I haven’t heard a lot of excitement out there either,” said Rodney Davis, the party’s nominee in the 13th Congressional District, which includes part of Springfield.
“Hey, who wants Republican victories in November?” he asked. That generated a round of cheering and applause.
* Dave Dahl used dead air to craft a pretty funny intro to his report about the general lack of enthusiasm…
On Thursday, the state GOP put a bull’s eye on Madigan, the House speaker and chairman of the state Democratic Party. Party loyalists hoisted signs that read “Save Illinois. Fire Madigan.”
A leprechaun also wandered about during the rally, carrying a sign that said, “Madigan stole my poto’ gold.”
“The message you need to drive home to … each one of your precinct workers, to everyone you talk to in the next 83 days is that a vote for any Democrat in the state of Illinois is a vote for Mike Madigan,” Brady told the crowd. “He’s been down there 42 years. He’s taken us to the brink of financial collapse. The problems we face today are his problems, and it’s time for Mike Madigan to go.”
House Republican leader Tom Cross called on Madigan to “quit the games” that have led to deadlock on comprehensive pension legislation that would rein in costs of a state retirement system hurtling toward a $93 billion debt by next summer.
“I think Mike needs to look in the mirror and accept the fact that he’s been here for 40 years, and every single problem we have has his fingerprints on it,” said Cross, who has been in the House since 1993. “We all need to act like adults, quit the politics and get this done.”
Illinois House Minority Leader Tom Cross, R-Oswego, said GOP leaders and voters are united because of dissatisfaction with Democratic leadership, from the Illinois Capitol to the White House.
“I look at what’s going on in our races, and we’ve got a lot of folks from the far right to the middle and the left that are working with us. People are disgusted with what’s going on. This is all about finances, about the budget, about the pension,” Cross said.
* And this prediction about Democratic-leaning public employee union members staying home on election day would be more accurate if it wasn’t a presidential year. But they may skip over some down-ballot races…
“I think the protest you saw yesterday is representative of larger anger throughout the state of Illinois with the failed policies of Mike Madigan and Pat Quinn,” said Pat Brady, chairman of the Illinois Republican Party.
Party leaders acknowledged it may be difficult to get union members to vote Republican, although they promised to reach out to organized labor, but they predicted frustrated union members will stay home instead of working hard for Democratic candidates.
* Related…
* Same-sex marriage advocates seek support at state fair
Illinois’ jobless rate rose to 8.9 percent in July as the government and leisure and hospitality sectors combined to shed more than 12,000 jobs.
The July rate was up from 8.7 percent in June, but down sharply from 10.1 percent in July 2011, the Illinois Department of Employment Security said Thursday. It marked the second consecutive month that the rate has increased. […]
Over the month, the state lost a net of 7,100 jobs. The largest cuts came from governments, 7,900 jobs; and leisure and hospitality, 4,300 positions.
Those losses were partially offset by gains in trade, transportation and utilities, which added 3,000 positions; professional and business services, 2,800 jobs; and manufacturing, 1,700 jobs.
The drought may be impacting some of the unemployment numbers, according to the AP.
Although the state’s unemployment rate has been below 10 percent since October, its so-called underemployment rate has been in the double digits for nearly four years. That rate was 16.5 percent in the second quarter of this year, which is an average of the four most recent quarters of data. It was as high as 18 percent in mid-2010.
According to the U.S. Bureau of Labor Statistics, the federal office that oversees the collection and computation of the country’s labor force data, the official unemployment rate captures only those people who are out of work and have looked for a job in the last month. The underemployment rate, on the other hand, captures those people plus those who are working part-time but desire full-time work as well as those who want a job but have not looked in the last month because they are discouraged over their job prospects.
The broader measure, sometimes called the “true” unemployment rate by critics of the government’s more narrow definition, provides a better sense of what improvements still need to be made in the job market, said John Lewis, formerly an economist with Northern Illinois University who now owns a consulting firm in Sycamore.
* And suburban foreclosures are still a big issue…
In June, one of every 155 housing units in Kane County and one of every 254 housing units in DuPage County received a foreclosure filing, according to realtytrac.com. That’s higher than neighboring Cook County, where the rate was 1 in 277; the state of Illinois, where 1 in 355 units was foreclosed; or the entire country’s rate of 1 in 666.
DuPage is the state’s wealthiest county with a median household income of $76,581, according to the most recent U.S. Census. That’s more than $20,000 above the median household income in either Cook County or Illinois, and nearly $25,000 more than the median household income in the U.S. […]
Olson said DuPage County has kept a higher foreclosure rate as people lost jobs, lived off their savings and are now running out of money and going into foreclosure because they can’t find new employment.
Mary Keating, director of community services for DuPage County, also said the problem was related to employment — or lack thereof.
“Ultimately, a lot of the foreclosures are really about job loss.” she said.
Olson’s experience with the DuPage Homeownership Center supports Keating’s claim. She said 65 percent of loan modifications and re-defaults on mortgages the center has seen are due to unemployment or underemployment.
Friday, Aug 17, 2012 - Posted by Advertising Department
[The following is a paid advertisement.]
ComEd is grateful to the Illinois lawmakers who have supported a Resolution that calls upon the Illinois Commerce Commission (ICC) to stay true to the statutory directives and intent of the Energy Infrastructure Modernization Act (EIMA).
This House resolution, passed out of the Public Utilities Committee last month by a vote of 22-1, strongly urges the ICC to consider reversing its ruling on key issues in ComEd’s first Formula Rate filing under the new law. By denying the recovery of actual costs – in contradiction to the legislation — the ruling results in a revenue shortfall for ComEd that would be more than $500 million over five years and put the entire smart grid initiative in grave jeopardy.
A rehearing on these issues is under way. We commend the ICC for taking additional time to study the matter and consider new evidence. We remain hopeful that they will recognize that the EIMA was created to provide the predictability that will enable utilities to make the long-term investments required to meet the needs of customers and the demands of a digital 21st century economy.
We worked at an accelerated pace through the first half of this year, creating hundreds of new jobs and new opportunities for Illinois businesses in the process. While we remain committed to the 10-year, $2.6 billion EIMA program, the revenue reduction has already forced us to delay the deployment of key initiatives, including the installation of smart meters. We are hoping, of course, that the rehearing will enable us to get the program back on track, but to do that, the integrity of EIMA must be upheld.
