Illinois isn’t alone
Friday, Mar 15, 2013 - Posted by Rich Miller
* Keep in mind that the Art Institute, Field Museum, CSO and Adler Planetarium [fixed link] boards are all comprised of Chicago’s elite, many of whom are now deriding public employees and demanding that the state cut pensions. From the Tribune…
Borrowing and spending on the assumption that more money and visitors would follow was not the only financial risk many cultural institutions took. They also put off pension payments and borrowed at unpredictable interest rates.
Those choices allowed museums and arts organizations to pay less up front but ended up costing them more in the long run. It also made it harder to restructure their debts when times got tough. […]
In the robust early-2000s market, pension plans were flush and some institutions refrained from contributing to avoid over-funding, which is allowed under federal law. When the market weakened and interest rates fell, funding levels dropped. Yet the boards of many major cultural institutions continued to approve the skipping of annual pension payments.
The Art Institute, Field Museum, CSO and Adler Planetarium all elected not to make pension payments for several years at a time in the early 2000s, even as funding levels slipped. Now all of them have either frozen plans, closed them to new employees or increased retirement ages. [Emphasis added.]
Sheesh.
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Ladies and gentlemen, please rise…
Friday, Mar 15, 2013 - Posted by Rich Miller
* Rep. Kate Cloonen sang the National Anthem today on the House floor...
Pretty good stuff.
Cloonen is wearing the jacket and the hat because she’s a freshman presenting her first bill. The jacket is a “tradition” for first bills. The stovepipe hat was added this year.
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* Illinois’ bad credit rating is now hurting Chicago’s rating. Moody’s just lowered the rating on the city’s motor fuel tax borrowing and assigned it a negative outlook…
“Debt service on the motor fuel tax bonds of the city of Chicago is secured by a senor lien pledge of a portion of the city’s allocation of state motor fuel tax revenues,” Moody’s said in a statement. “With legislative approval, the state has the authority to reduce pledged revenues by reducing . . . motor fuel tax revenues to the city.”
The “risk of non-appropriation” of the state money to Chicago exists as the state struggles to raise cash for its own needs, Moody’s added, implying that the risk that the state will keep the money rather than pass it along to Chicago actually is growing.
Moody’s also cited the state’s declining credit rating and reduced revenues from per-gallon state taxes on gasoline, which have dropped as the price of gas has risen. […]
“Assignment of the negative outlook (on the motor fuel debt) is in keeping with the negative outlook assigned to the state’s general obligation debt,” Moody’s concluded.
Oof.
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Question of the day
Friday, Mar 15, 2013 - Posted by Rich Miller
* Today is the first anniversary of Rod Blagojevich’s imprisonment…
The former governor’s lawyers have until mid-April to file an appellate brief. There are already rumblings that the defense may ask for an extension. Sorosky says the case is complex and an appeal could focus on a series of rulings by U.S. District Judge James Zagel, with lawyers arguing his decisions blocked them from presenting their full defense.
Don’t be surprised, however, if Blagojevich churns out another book or soon breaks his silence in his typical spectacular fashion.
* The Question: The name of Blagojevich’s new book should be… ?
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Thompson: Stop demonizing unions
Friday, Mar 15, 2013 - Posted by Rich Miller
* Matt Dietrich writes about a forum and panel discussion hosted by World Presidents’ Organization…
The big finish, though, was an impassioned, hour-long speech by former Gov. Jim Thompson. He took Biss’ plea a step further: “I agree with Sen. Biss that we have to stop demonizing public employees. Without the public employees we wouldn’t enjoy the life we do in the state of Illinois. We would not have the education of our children and grandchildren in the state of Illinois. We would not have a decent business climate in the state of Illinois without good, honest, hard-working public employees.. We have to get away from the idea that they are the enemy. They are not the enemy. We need to make them our allies.
“And I’ll add one more: We need to stop demonizing unions. You can disagree with AFSCME, you can disagree with the teachers, you can disagree with other public employee unions without demonizing unions as some who want to be governor are wont to do.” Thompson said.
The last line probably was intended for Chicago businessman Bruce Rauner, the first candidate to officially enter the 2014 gubernatorial race and who has been an outspoken critics of public employee unions.
Probably? Heh. Rauner just got schooled. Not that he’ll care or anything. He’s the, um, “outsider,” remember?
Thompson was endorsed by AFSCME in his last campaign against Adlai Stevenson.
* But Thompson does agree with Rauner and Ty Fahner that Cullerton’s hybrid pension reform bill shouldn’t be adopted…
Thompson was critical of a bill backed by Senate President John Cullerton that combines two reform bills into a single bill. “What we need to do is pass the Nekritz/Cross/Biss bill, let them take it to court. If the Supreme Court finds it unconstitutional, start over, responding to the opinion of the court. Putting the two together is just a terrible risk that you will lose the benefits of the best pension legislation.”
Thompson said combining two bills in one is an “open invitation” to the Supreme Court to find the better bill unconstitutional and leave state government with a bill that potentially could leave it in worse financial shape.
So, Thompson agrees that Cullerton’s half of SB1 is more constitutional, which is why it shouldn’t be combined with the Nekritz/Cross/Biss measure.
Hmm.
* Meanwhile…
The Illinois House passed pension reform measures Thursday that would cap “pensionable” salaries at Social Security wages and would increase retirement ages on a sliding scale for employees under age 45.
Following another series of “test-votes” as part of House Speaker Michael Madigan’s (D-Chicago) “weekly order of business” process, the House passed its first pension reforms of the 98th General Assembly. The measures now move to the Senate.
The measure capping salaries - $113,700 indexed for inflation - upon which pension benefits can be based passed in the chamber by an overwhelming 101-15 margin. The change would apply only to employees hired before Jan. 1, 2011.
The bill that raises the age at which state employees can begin collecting benefits passed by a closer 76-41 vote; however, the measure would not include Illinois judges. Retirement ages for employees hired before Jan. 1, 2011 would increase by one year for those ages 40-45, three years for those ages 35-39, and five years for employees under age 35.
Neither bill changes retirement benefits for state employees hired after Jan. 1, 2011, according to Rep. Elaine Nekritz (D-Northbrook), who presented the bills on the House floor. Nekritz said the bills are identical to measures included in a comprehensive bill she has been working on with House Republican leader Tom Cross (R-Oswego). […]
House members also debated a measure that would increase the amount employees have withheld from their paychecks for pension benefits by 3 percent. But questions surrounding the plan’s constitutionality prompted the chamber to vote it down by a 37-79-1 vote.
* And the Nekritz/Cross/Biss bill was sent to the House floor yesterday…
A comprehensive pension bill was sent to the floor of the Illinois House Thursday, the third such plan now awaiting a final vote in either the House or Senate.
But as with the two proposals sent to the Senate Wednesday, there is no indication when a final vote might occur.
Rep. Elaine Nekritz, D-Northbrook, is the co-author of House Bill 3411, which was approved by the House Personnel and Pensions Committee on a 9-1 vote. […]
Only Rep. Raymond Poe, R-Springfield, voted “no.” Poe’s district includes large numbers of state workers, and he’s opposed to any measure that reduces pension benefits.
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SB 1665/HB 2414 Will Protect and Create Illinois Jobs!
Friday, Mar 15, 2013 - Posted by Advertising Department
[The following is a paid advertisement.]
A major benefit of the Natural Gas Modernization, Public Safety and Jobs Bill (SB 1665/HB 2414) is that it will support more than 1,000 newly created jobs in Illinois. Work under Peoples Gas’ accelerated main replacement program, which began in 2011, has created these good-paying, highly-skilled and local jobs and presents career opportunities for these workers.
However, Illinois’ current regulatory environment is unpredictable, outdated, and inefficient. As a result, the status quo is holding back further investment and putting these jobs at risk. Illinois natural gas utilities need a legislative solution to have the continued confidence to invest in system upgrades and protect these jobs.
To meet the manpower needed for natural gas modernization, Peoples Gas partnered with Unions, DCEO and the City Colleges of Chicago to build a pipeline of skilled workers.
This utility worker training program offers students seven months of classroom instruction and in-the-field training. To date, 42 veterans have been trained and hired by Peoples Gas.
Without action, our state risks hurting the hardworking men and women performing the pipeline modernization work.
Members of the Illinois legislature: Vote YES on the Natural Gas Modernization, Public Safety and Jobs Bill, SB 1665/HB 2414. Click here to learn more: www.peoplesgasdelivery.com/legislation
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Frack attack
Friday, Mar 15, 2013 - Posted by Rich Miller
* Subscribers know a lot more about this, but here’s an AP story from earlier in the week…
Illinois’ powerful House speaker said Wednesday that he supports a moratorium on high-volume oil and gas drilling, weighing in on the issue one day before a House committee is scheduled to consider competing bills involving the practice.
It was unclear how much sway that Speaker Michael Madigan, a Chicago Democrat, would have over lawmakers’ decisions, especially since more than 50 House members already have signed on to a bill that would regulate hydraulic fracturing, or “fracking” - the key to jumpstarting the practice in Illinois. Some suggested his comments might be meant to pressure industry over drilling fees and taxes.
But environmentalists and landowners, who rallied at the Statehouse this week to urge lawmakers to impose a moratorium, said they welcome the support.
“We take the speaker at his word and hold him to it that he recognizes a moratorium as the only true way to protect public health and the environment from the rolling environmental disaster that fracking has been,” in other states, said Bruce Ratain, state policy associate with Environment Illinois. “This is what real leadership looks like.”
Madigan, who introduced a failed drilling moratorium last year, would not elaborate except to say, “read about what happened in Pennsylvania.” The issue there has become controversial, including over water quality near drilling sites.
* Environment Illinois praised Madigan’s announcement…
One day after nearly a hundred concerned citizens converged on Springfield, Ill., to call for a moratorium on fracking, House Speaker Mike Madigan, D-Chicago, announced March 13 his support for legislation to stop the dirty drilling technique in Illinois.
House Bill 3086 in the House (sponsored by state Rep. Deb Mell, D-Chicago) and Senate Bill 1418 (sponsored by state Sen. Mattie Hunter, D-Chicago) both call for a moratorium on fracking in Illinois, and are scheduled for committee hearings in Springfield.
“In state after state, fracking has been a rolling environmental disaster — contaminating drinking water, making nearby residents sick, and turning rural landscapes into industrial zones,” said Bruce Ratain, state policy associate for Environment Illinois. “We praise Speaker Madigan for looking carefully at the facts about fracking, and joining the growing call to keep it out of Illinois.”
Liz Patula, a member of SAFE (Southern Illinoisans Against Fracturing Our Environment), had the following response: “I said it yesterday in the Capitol and I will say it again today: New York’s Assembly just voted to extend its moratorium on fracking. Don’t the citizens of Illinois deserve the same protection?”
While in Springfield, activists also held a rally and press conference in the Capitol rotunda, and delivered materials or met with every legislator in the House and Senate.
* The following day came this announcement…
Backers of a measure to regulate high-volume gas and oil drilling in Illinois announced Thursday they have agreed on the fees and extraction taxes that drillers would pay the state if lawmakers approve a plan to regulate the practice.
More…
Under the agreed rates, well operators also would pay a 3 percent-per-barrel extraction, or “severance,” tax during the first two years of operation. That tax would scale up after the second year, depending on the well’s average monthly production. The highest tax rate would be set at 6 percent.
Denzler told legislators he was “reticent” to estimate how much revenue fracking could generate for Illinois, because production among wells varies. But he provided an overview using an estimated model: Production of 200 barrels a day per well, at a 3 percent tax rate, would generate just under $200,000 per year per well.
Denzler’s group is among those that helped draft Bradley’s proposal.
Gov. Pat Quinn, who has called the legislation a jobs bill, reiterated his support Thursday, a day after House Speaker Michael Madigan said he supports a moratorium on fracking. Quinn cited the endorsement from some environmental groups that helped craft the legislation.
If you think that Madigan’s moratorium announcement moved the industry to accept the tax rates, you’d be right.
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* A member of the Republican State Central Committee sent out this e-mail yesterday…
From: Bob Winchester
Sent: Thu, Mar 14, 2013 2:23 pm
Subject: 3/9 meeting to oust Pat Brady
Dear Chairman:
I am just now (barely) recovering from the flu or you would have heard from me sooner!
When I left for Tinley Park, friday noon, there was 60.4% of the weighted vote to retire Pat Brady as Chairman of the State Party. The bylaws required 60%.
The committee members agreed on wednesday to a conference call at 8pm friday night to finalize details. Carol Donovan, Vice Chair of the State Party and the person who would become acting chair until we appointed a temporary chair(Carol had declined the temp. chair position) informed us that she would not be voting at the Saturday meeting. According to Carol , she had received calls from Mark Kirk, Tom Cross and various other elected officials who ask her not to attend the meeting. She said the pressure was just to great.
At that point we dropped from 60.4% to 59%. Needless to say all of us were very upset.
We decided to cancel. We only had one shot , so we decided to save the loss and wait until the april 13th regular scheduled meeting and possibly try again then.
The following(10 of 19 members) stepped forward early and was prepared to to retire Pat Brady saturday ,March 9th.
Bob Winchester
Mark Shaw
Jerry Clarke
Bobbie Peterson
Chris Kachiroubas
Judy Diekelman
Steve Daglas
Gene Dawson
Angel Garcia
Jim Oberweis
The above members represent 59% of the weighted vote—60% required or 3/5th to fire.
Carol Donovan would have been the deciding vote totaling 60.4%
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* Rep. Jeanne Ives (R-Wheaton) has kicked up a hornet’s nest with some comments she made on a radio show about gay people and same sex marriage…
“They’re trying to redefine marriage. It’s a completely disordered relationship and when you have a disordered relationship, you don’t ever get order out of that. So I’m more than happy to take a ‘no’ vote on the issue of homosexual marriage.”
And…
“I’m more than happy to stand up and take a courageous vote here on this issue because it’s the right thing to do. Essentially what they’re trying to do is not just redefine marriage, they’re trying to redefine society.
They’re trying to weasel their way into acceptability so that they can then start to push their agenda down into the schools, because this gives them some sort of legitimacy. And we can’t allow that to happen. The rights to marriage, what marriage is it’s really a natural right…
“It’s the natural right of the child to be with both parents, either in an adoptive nature or in a biological nature. To not have a mother and a father is really a disordered state for a child to grow up in and it really makes that child an object of desire rather than the result of a matrimony.”
Raw audio…
* Rep. Ives followed up with a press release…
It is unfortunate that certain comments I made recently in regards to the redefinition of marriage on a Catholic radio program have been misinterpreted.
I understand there is disagreement over the issue of whether or not to redefine marriage but it is unfortunate that political opponents have attempted to redefine or purposely misinterpret my views on this important matter by pulling two comments out of an approximately 20 minute discussion.
I have made my position very clear but for the purposes of additional clarity, let me restate it:
Like millions of Americans of all partisan stripes including in the Illinois House, including in the nearly three dozen states that have rejected the redefinition of marriage by popular referenda, I properly understand the institution of marriage and the word “marriage” to be defined as the union between one man and one woman. I have no comment on a person’s sexual orientation or personal relationships. That is their private business and I have no interest in meddling in a person’s private affairs.
I have simply made statements in defense of the attack on marriage from certain vocal constituencies who seek to redefine it out of existence. I do not believe it is the government’s place to redefine marriage.
The institution of marriage has existed for thousands of years. It predates government. In fact, government was in part created to protect the institution of marriage because of its critical importance in building civilization. Marriage is today what it has been from time immemorial, the foundation of family and thus the foundation of civilization. As a wife and mother of five, my interest, as I have previously and repeatedly expressed, is to protect the institution of marriage for future generations just as those who came before preserved it for me.
The people who disagree with me have chosen to ascribe meaning to my words that they did not have, just as they are attempting to assign a meaning to the word “marriage” that it does not have.
It is also worth noting that, currently, my position on marriage is the majority position in the Illinois House.
Illinois Review entitled that press release “Ives refuses to cower to left-wing bullies.” The Daily Herald has some react…
State Rep. Greg Harris, the Chicago Democrat sponsoring the same-sex marriage plan in the House, called the comments “unfortunate.”
“I think those remarks were unfortunate. We should be supporting families and commitment, not disparaging them,” Harris said.
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