Ouch!
Thursday, Jun 6, 2013 - Posted by Rich Miller
* The Sun-Times apparently held back some quotes from Steve Brown…
A Madigan aide did not immediately respond Thursday to Quinn’s latest call for a special session but in an interview earlier this week mocked the idea of the governor bringing lawmakers back to Springfield without first having a pension deal in hand.
In fact, in that earlier interview, Madigan spokesman Steve Brown likened Quinn to scandal-tainted, imprisoned ex-Gov. Rod Blagojevich, who ordered close to three dozen special legislative sessions during his time in office in one of the more extreme examples of political futility Illinois has seen in recent memory.
“Blagojevich proved the value of dragging people back to Springfield when there’s no agreement,” Brown said. “The governor tries to avoid comparisons to Blagojevich, I thought.”
Oh, man.
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* From S&P…
Standard & Poor’s Ratings said Illinois is approaching a precipice from a credit standpoint due to the lack of action on pension reform legislation by the state’s General Assembly when it ended its 98th session on May 31.
In January, we downgraded the state based on our view of Illinois’ weakened pension funded ratios and lack of action on reform measures. We acknowledged at the time of the downgrade that action could occur during the regular legislative session but was unlikely given the poor record of the past two years and the lack of consensus on a plan to address the liability.
The May 31 outcome was in line with our expectations in January, so the current rating of ‘A-’ and the negative outlook on the state’s $28 billion of outstanding general obligation (GO) bonds are unaffected by the most recent round of pension reform deliberations that kicked the can down the road yet again.
From a credit standpoint, Illinois is approaching a critical juncture within a year as state policymakers face escalating pension liabilities and chronically high payables while simultaneously addressing pending statutory reductions in personal and corporate income tax rates. This is in addition to the other challenges confronting the state sector, including health care reform implementation, federal fiscal consolidation, slow economic recovery, and pent-up spending demand from a range of program areas affected by sharp funding reductions in recent years. The ability of Illinois to affect change to revenues and spending programs is well established, so future credit direction will largely hinge on the willingness of policy makers to decisively address chronic budget and pension issues. [Emphasis added.]
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* I fully expect the GA to come back later this month…
A local state senator said there’s a chance the governor could veto a court-mandated concealed carry bill that was passed by lawmakers last week.
The state this week was given a 30 day extension on its June 9th deadline to enact concealed carry. That gives Governor Pat Quinn more time to review the plan, although an appellate court said the state will not be given another extension.
But Democratic Senator Mike Frerichs of Champaign said lawmakers have been told to prepare for a possible veto of the concealed carry bill, which received bipartisan support.
It’ll either be over guns or pensions or maybe both. Also, lots of rumors in the air about the concealed carry override. Stay tuned.
*** UPDATE *** From the Senate Republicans…
Senate Republican Leader Christine Radogno on news of Governor Quinn’s intent to call for a special session:
“The Governor did call today to tell me his intentions to call a special session. I appreciate the call — but I’m not sure what dynamics have changed in this pension reform discussion. Clearly there is a rift amongst Democrat leaders. Despite their super majority status, they missed a prime opportunity to enact comprehensive pension reform. We hope that opportunity will still be there now that it will take a supermajority vote in each chamber to pass.
Senate Republicans remain wiling to work on advancing a pension reform plan that substantially solves the problem.”
*** UPDATE 2 *** Gov. Quinn’s statement…
“Here we go again.
“Will two downgrades in one week be enough to convince the General Assembly that our pension crisis can’t be ignored anymore?
“Time and time again over the past two years, I have proposed, asked and pushed members of the General Assembly to send me a comprehensive pension reform bill.
“Time and time again, failure to act by deadlines has resulted in the bond rating agencies lowering our credit rating, which hurts our economy, wastes taxpayer money and shortchanges the education of our children.
“Illinois taxpayers are paying a price of $17 million a day for the General Assembly’s lack of action on comprehensive pension reform.
“In its downgrade statement, Moody’s said this: ‘An A3 rating, while very low for a U.S. state, is consistent with the General Assembly’s inability to steer the state from a path to fiscal distress.’
“Legislators and their leaders know what they need to do to return Illinois to sound financial footing.
“I’ve been in touch with the Senate President, the Speaker’s office, and both Republican leaders today about this emergency.
“I am calling the General Assembly back to Springfield on June 19th to finish their job for the people of Illinois.” [Emphasis added]
*** UPDATE 3 *** From House GOP Leader Tom Cross…
“Our pension crisis is so severe that Illinois’ credit rating has been downgraded twice in one week. Inaction is costing Illinois taxpayers $17 million a day. The sooner the Illinois General Assembly returns to Springfield to get the job done on pension reform the better.”
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* This is the second downgrade in a week. Fitch hit Illinois earlier. Now, Moody’s…
“Our rating now assumes the government will not take action to reduce the state’s pension liabilities any time soon,” Moody’s said in a statement.
“The legislature’s political paralysis to date shows not only the magnitude of Illinois’ unfunded benefit liabilities, but also the legal and political hurdles to legislation that would make pensions more manageable long term.”
The downgrade to A3 from A2 with a negative outlook affects $27 billion of outstanding GO debt.
*** UPDATE *** From the We Are One Illinois coalition…
“Moody’s rating downgrade makes clear that the House of Representatives must act swiftly to finish the work of sound pension reform the Senate has initiated.
Moody’s has concerns over “legal and political hurdles” and calls for a “credible, comprehensive long-term pension funding plan” to be implemented. They have laid out the path that should be followed, and it clearly leads to SB 2404. SB 2404 is the only legal, comprehensive, and responsible pension funding solution. It will restore fiscal stability and solvency to the state’s pension systems.
Critically, SB 2404 is also the only solution left that has earned a supermajority of support, unlike SB 1 which has essentially twice failed the Senate.
Led by President John Cullerton, the Senate has acted. It’s time for state representatives to have an opportunity to vote on SB 2404 in special session.”
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Question of the day
Thursday, Jun 6, 2013 - Posted by Rich Miller
* This happened last week, but session was just too busy to address it…
The Chicago Sun-Times laid off its entire staff of photographers Thursday and plans to use freelance photographers and reporters to shoot photos and video, the newspaper said.
A total of 28 full-time staffers received the news at a morning meeting, according to sources familiar with the situation.
The Sun-Times released a statement connecting the move to the increasing importance of video in news reporting, but the organization also is not profitable currently, according to a knowledgeable source who was not authorized to speak publicly. […]
The move to have reporters shoot video and photos while covering stories is a growing trend among television stations and newspapers, according to California-based media analyst Alan Mutter, who said quality may be sacrificed in the process.
“We’ll always have a lot of pictures — there will always be something between the articles — but will we have great photography, the memorable iconic images? Probably less so,” Mutter said.
* The Question: Your thoughts on this development?
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Today in stupid
Thursday, Jun 6, 2013 - Posted by Rich Miller
* The AP reports that no charges are expected…
Kane County authorities say 10 people were injured this week when a shotgun accidently discharged inside a gun club, sending buckshot ricocheting around the facility.
Sheriff’s investigators say three people, including a 14-year-old boy, were treated at a hospital for non-life threatening injuries after the Tuesday night shooting at the St. Charles Sportsmen’s Club. Seven others were treated at the scene, including the 69-year-old who mistakenly fired the 12-gauge.
Investigators say the man was putting away his gun when he accidentally put a live shotgun shell into the weapon, instead of a “snap cap” to protect the firing pin.
He pointed the gun at the ground inside the clubhouse and pulled the trigger.
This is, in my opinion, perhaps the best reason to oppose concealed carry. People carrying guns in public can easily make mistakes which can wind up hurting innocent bystanders.
* The Daily Kos blog has been compiling local stories for its extensive “GunFail” series. Here’s a recent one…
A woman was injured after an accidental shooting in the parking lot at Arlington National Cemetery on Memorial Day.
The shooting occurred Monday, hours before President Barack Obama laid a wreath at the Tomb of the Unknowns.
Sharon Walker, a spokeswoman for Joint Base Myer-Henderson Hall, which responded to the incident, said the gun fell out of a cemetery visitor’s car. Walker said the gun fell under the car and the owner, an active-duty serviceman, tried to retrieve it.
Walker said a shot went off and struck the serviceman’s mother in the leg.
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* Another loss for Gov. Pat Quinn at the hands of Speaker Madigan…
Federal officials could end up overseeing the new Illinois health insurance marketplace for years to come after lawmakers in Springfield balked again at a full embrace of President Barack Obama’s health care law.
The Legislature adjourned Friday without sending Gov. Pat Quinn’s a bill on a state-run marketplace — a consumer-friendly online shopping site for insurance. Quinn has pushed such a plan for three years without success. […]
State senators approved the bill along party lines, but the full House never voted on it before last Friday’s adjournment. A spokesman for House Speaker Mike Madigan noted the bill “didn’t have much bipartisan support” in the Senate and would have had “tough sledding” in the House.
It was one more case of Obama’s home state lagging behind some other Democrat-controlled states in implementing the president’s signature domestic achievement. […]
Madigan spokesman Steve Brown said it’s not a question of the speaker’s leadership.
“People, when they fail to accomplish something, tend to blame someone like Mike Madigan,” Brown said. “I don’t recall the bill’s sponsors pushing for a vote” in the House, he added. The bill didn’t have bipartisan support in the Senate, Brown said, and “it probably would have been tough sledding if it had been called” in the House.
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Embrace politics and get things done
Thursday, Jun 6, 2013 - Posted by Rich Miller
* James Krohe Jr. writes about California’s fiscal turnaround…
Only three years after it faced a budget deficit of about $27 billion, Sacramento expects to end the year at least $500 million in the black. Budgets have been cut and taxes raised, thanks to voter approval of a significant tax increase that fell mostly on annual incomes higher than $1 million. As a result, the State of California in February was given its first credit upgrade in six years, leaving Illinois as the state lowest-rated by Wall Street.
Even in the Land of the Makeover this is an eyebrow-raising turnaround. How did it happen? Part of the credit must go to Jerry Brown, the current governor. Readers younger than cell phones might be interested to learn that Brown, who was elected governor in 2010 at the age of 72, had also been elected governor in 1974 and 1978. He also served California as secretary of state and attorney general when not studying Zen meditation in Japan, volunteering for Mother Teresa in India and mayoring (for eight years) Oakland, one of the least governable cities in America. (As governor he maintains his working office in Oakland, which is a little like Illinois’ Mr. Quinn doing his work from Waukegan.)
Widely derided in the 1970s as Governor Moonbeam, Brown for years was a reason to mock California. Today – wiser, and not in the least bit sadder – Brown is a reason to envy California. Why? Because he is a politician, and a good one. Brown didn’t steer California back into deep water by being a “leader” but by assessing possibilities accurately, picking fights he could win, resorting to compromise when it was needed and exhortation only when it was likely to work.
* He then connects Brown’s success to Gov. Pat Quinn’s - and our own state’s - failures…
The contrast with Mr. Quinn is plain. As a citizen-advocate and later as a largely ceremonial lieutenant governor, Quinn got experience demanding what government should do but never had to learn how to do it. […]
While Brown is perhaps the most interesting person among major American politicians, it is too much to describe him as a political genius. Illinois used to routinely produce politicians with similar gifts; its voters even elected some of them governor, the most recent one being George Ryan. But these days much of the public (and much of the Republican Party) thinks that possession of political skills disqualifies a person for public office. In such dim light, a Jerry Brown will cast a shadow much larger than he is.
Still, Illinois could do much worse than to find itself a Brown, as veteran journalist James Fallows suggests in his profile of the governor in The Atlantic (“Jerry Brown’s Political Reboot”). “A country conditioned to dismiss the skills of deal making, persuasion and sheer immersion in politics,” writes Fallows, “can learn a great deal from what he has achieved.” And what is that? That, borrowing from Fallows, repairing the damage that disdain for politics can do demands an all-fronts embrace of, yes, politics.
I cannot agree more. We used to be a state that worked. No longer.
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Dillard walks back comment
Thursday, Jun 6, 2013 - Posted by Rich Miller
* We talked about this state Sen. Kirk Dillard quote yesterday…
At least two bachelors are expected to be running for governor next year: Pat Quinn, the Democratic incumbent, and Dan Rutherford, the Republican State Treasurer.
But Dillard says it’s time to put what he calls “a first family” back in the Governor’s Mansion.
“I really believe just for our state’s image and for the way a governor thinks, you need a first family in a traditional sense back in the governor’s residence.”
And so Dillard is playing the family card in the race for governor.
* Bernie followed up with Sen. Dillard…
Dillard told me Wednesday that he didn’t mean to imply anything about family structures other than his own in his comments Friday, and if he had to do it again, he would probably leave out a word — “traditional.”
“Over the last year, when I’ve been saying it’s time to put a first family back in there, I don’t use the word ‘traditional,’ ” Dillard said. “That just came out … on the last day of session when we were talking about a lot of other issues.”
The comment, Dillard said, “is not denigrating anybody’s ability who might want to hold the governor’s office.” He said it was “taken out of context,” and was in the context of knowing firsthand how working families struggle.
Since before people knew the potential GOP field of candidates, he said, he has spoken of it being time to put a “Republican first family back in the governor’s residence” because of “my vision of Illinois, through the eyes of being the father of 10- and 12-year-old daughters” and “knowing how unbelievably busy families are.”
Adequate?
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Still think that was a good idea, guv?
Thursday, Jun 6, 2013 - Posted by Rich Miller
* As I told you the other day, Gov. Pat Quinn’s post-session “leaders meeting” was a complete disaster when Speaker Madigan didn’t show up. Quinn blamed the snafu on Madigan not having a cell phone. The push-back from Madigan’s spokesman was pretty darned harsh…
As for Tuesday’s no-show, Brown said Quinn’s staff “knew [Madigan] wasn’t available.”
“Why they felt the need to announce a meeting when they knew he wasn’t available, it’s beyond me,” Brown said. “I’m not a psychiatrist, so I can’t explain why they do what they do.”
Ouch. That sort of talk was used against Rod Blagojevich quite often. Beware, governor. Beware.
* And check out the latest political cartoons. Sun-Times…
* Tribune…
Oof.
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* Yesterday, I received an e-mail from a friend about Bruce Rauner’s new campaign video…
Go to 1:47 in his video and look at the mountains in the distance behind the irrigation in the field. Now exactly what part of Illinois has mountains like that?
* The video is here. Screen cap…
I replied that it could be the bluffs near the confluence of the Mississippi and Illinois rivers. They look almost mountainous and it’s one of the prettiest areas in the state.
So, I sent the Rauner campaign an e-mail. I never heard back.
* I think my friend also contacted Sneed…
Huh? Is this a case of mountains or molehills?
Sneed watched multimillionaire Bruce Rauner’s video announcing his Republican run for governor and poses a question.
Just where are those mountains and/or huge hills in Illinois appearing in Rauner’s campaign video — which seems largely comprised of stock B-roll — and includes a farmer irrigating his field in front of a mountainous silhouette?
Could this be near Rauner’s ranch in Montana? Nawwww.
I asked the campaign again this morning whether this is just stock footage of any old corn field or if it was actually from Illinois. No reply.
Obviously, this is not the biggest issue in the campaign. But if Rauner is attempting to appeal to Downstaters with his freshly minted Carhartt-ish jacket and innumerable images of farms in his roll-out spot, then it would be nice to know if all his images were actually from this state.
*** UPDATE *** Thanks to a diligent and eagle-eyed commenter, it appears the video comes from a Canadian company and is posted on a stock video site.
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Today’s tweet
Thursday, Jun 6, 2013 - Posted by Rich Miller
* Actually, it’s from the last day of spring session…
That’s definitely my mantra about this place.
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Rauner’s roll-out
Thursday, Jun 6, 2013 - Posted by Rich Miller
* Bruce Rauner didn’t have a press conference yesterday. Instead, he talked with individual reporters at a few media outlets. It didn’t go so well at the Sun-Times…
In an interview with the Chicago Sun-Times, a Rauner aide cut off the questioning, citing scheduling issues when a reporter attempted to pin down Rauner on whether he personally supports same-sex marriage. It was a question Rauner ultimately would not answer, likely recognizing the necessity of the far right’s support during a Republican primary. The explosive issue ultimately ousted Republican Party Chairman Pat Brady because he supported gay marriage.
“My view is irrelevant,” Rauner said. “Why does that matter? There are many issues that folks can disagree about. It’s OK. I would like the Republican family as the big family. We can disagree. We can have some fights, that’s OK. And stay unified on the most critical issues.”
He said the issue should be left up to voters in a referendum.
As pointed out here time and time again, Illinois doesn’t have binding referenda.
* Rauner’s schedule must’ve been pretty tight, because he used the same excuse when Crain’s asked questions about allegations that he clouted his kid into a Chicago magnet school…
He conceded that his child did not gain admittance to Payton through the normal testing and review process but via an alternate path in which local principals can allow some admissions on their own.
“I advocated for my kids as I always have . . . calling in to get on the principal’s discretion list, as hundreds of other parents did,” he said, arguing that he long has crusaded to make schools better for everyone’s kids.
Did he call then-schools CEO Arne Duncan for help in getting his child on the Payton principal’s discretionary admissions list?
“I’ve explained all of the facts. That’s all I’m going to talk about,” he said. “I’ve worked with execs at Chicago Public Schools for decades.”
At that point, the candidate said he had to go
* The Tribune went over much of the same ground in its interview, but was far more kind. The paper did note this factoid near the end of its story, however…
Although Rauner is seeking to portray himself as an outsider, his personal and business interests have brought him in contact with the state’s political power structure.
Government pension funds, including the financially beleaguered ones in Illinois, are a major source of capital for GTCR, a private equity firm co-founded by Rauner that declares on its website that it has invested $10 billion in more than 200 companies over more than three decades.
Among those investments was a high-profile deal for an alarm company brokered by then-investment banker Rahm Emanuel more than a decade before he became mayor. GTCR under Rauner bought SecurityLink for $479 million from SBC and flipped it to another buyer six months later for a price of $1 billion.
Rauner has since served as an unofficial adviser to the Democratic mayor and has said he regularly speaks with Emanuel. One key area of agreement is support for charter schools and criticism of the Chicago Teachers Union.
* Rauner also told Crain’s about his Reganesque tax idea…
Mr. Rauner said details of a tax-overhaul plan are being developed by a team of financial advisers he declined to name but said the Illinois sales, property, income and estate taxes all should be on the table. For the state to be economically competitive, “The critical thing is that we have to reduce the tax burden.” That means rates would go down and revenue initially would fall below today’s level, but revenue would rise as lower taxes spurred more economic growth, he said.
We had sluggish growth even with the lower rates, so I’m not sure if that’ll work. Workers’ comp needs to be addressed first, in my opinion. But that’s not very sexy.
* Rauner talked pensions with the SJ-R…
“We need very dramatic change, and we need to go beyond what was proposed in the legislative session,” where fixes put forth include cuts to cost-of-living increases and increased contributions by employees, he said.
“What we need to say is, look, from this day going forward, for our current employees and future employees, we need a new system, a different system, one that’s really focused on (a) defined contribution plan, rather than a defined benefit,” he said. “But we can offer a range of options.”
Among those options would be a 401(k)-style plan, he said, with employers contributing to an employee’s savings. He also said there could be a blend of plans and even a defined benefit plan — one that makes specified payments to retirees. But, he said, it would be under “a very different structure and economics than what’s been done historically, and it’s going to be affordable and sustainable.”
“Right now, the system is broke, and honest, hardworking retirees are not going to get their pensions (in) 20 years,” he said. He said he would outline a “very detailed” pension plan later, and it would protect benefits that retirees and current employees have earned to date.
* And Kass asked him about the Madigan family…
Rauner targeted Madigan, the chairman of the Illinois Democratic Party, and the boss’ daughter, Illinois Attorney General Lisa Madigan.
He said that “it would be terrible” for Illinois if Boss Madigan installed his daughter in the governor’s mansion.
“I firmly hope and believe that voters in Illinois would never tolerate that,” Rauner said. “And I would aggressively run against that. That would be terrible for us. I don’t want to talk about any specific person today, as a candidate or potential candidate. What I want to change — and I’m on a mission to do it — is change the culture and inside dealing and the perpetuation of that structure in Springfield. And more of that (Madigan) family, more of the existing career politicians, is status quo and that’s killing us.”
Thoughts?
…Adding… ABC7…
“I’m the kind of guy who walks parades, shakes hands and looks people in the eye,” Rutherford said. “I do understand he’s a billionaire from Chicago. And perhaps his approach in how you communicate with individuals in a campaign circuit is different than mine.”
“It doesn’t, why does that matter? I’m very successful in business. I know how to build companies,” Rauner said when asked if he were a billionaire.
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Mystery disappearance
Thursday, Jun 6, 2013 - Posted by Rich Miller
* Gov. Pat Quinn told Phil Kadner a curious story that I also heard the night session adjourned…
As for economic development, I asked Quinn why a gambling expansion bill failed to get out of the Legislature this year after it had passed the two previous years.
Quinn said he had reached agreement on “language I could live with” with state Rep. Robert Rita (D-Blue Island), the chief House sponsor, and it was given to the Legislative Reference Bureau to be placed in the bill.
But the night the legislation was supposed to be written, Quinn said, “the LRB staff member got himself lost.” I asked what that meant, and Quinn repeated, “he got lost. He couldn’t be found.”
But he said that he had made it clear to legislators that he would not sign a gambling bill unless pension reform was passed.
The way I heard it, the staffer was “lost” pretty much all day on the final day of session.
Very weird.
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