* Yes, I managed to get all that into one Sun-Times column…
Bill Daley’s withdrawal from the governor’s race pretty much snuffed out the “Statehouse doors” controversy.
The late-summer scandal quickly cranked up to full roar after details emerged that a set of six, custom-made doors on the newly remodeled Western wing of the Illinois Statehouse cost almost $700,000.
I was on vacation during much of the uproar, but I figured this would happen years ago when the remodeling began. This kind of thing always happens.
The last time the remodelers were turned loose, the press went nuts over some $400 doorknobs. The cost of a new rug for the secretary of state made big headlines as well one year.
The Statehouse itself was over-budget when it was built in the 19th Century, so I’m sure there was plenty of public screaming way back then, too.
I gathered from the rather blasé response by the state legislative leaders who were in charge when the building was remodeled that they expected there’d be outrage about something. If it wasn’t the doors, then it would’ve been something else. And, frankly, even if the doors had only cost half as much, there might very well have been a hue and cry about that price, too.
The usual response to media events like this is to lie low, issue a terse press statement insisting that the overall work was well worth the price and that the little extras like copper-plated doors represented only a tiny fraction of the cost of much-needed upgrades to an outdated building, then wait patiently for the storm to blow over, which it apparently has.
It’s all just part of a very old and predictable game. Reporters, columnists and editorial writers complain, a few publicity-seeking legislators send out press releases denouncing the overspending, the governor jumps in with his own criticisms, but it’s too late to do anything about it.
And irony of ironies, in just a few days, Statehouse reporters themselves will be moving into their spiffy new Capitol digs, for which they (including me) pay no rent.
I’m not trying to excuse the spending, I’m just telling you how it’s always been in order to set up the rest of this column, which is about pensions.
House Speaker Michael Madigan, Gov. Pat Quinn and the two Republican legislative leaders, along with their cheerleaders in big business, support a pension reform plan that relies heavily on so-called “police powers” to pass constitutional muster.
The legal minds who came up with this say the idea is that Illinois’ fiscal situation is so dire that the state has no choice but to break the state Constitution’s guaranteed contractual right to public pension benefits that can neither be diminished nor impaired.
In fact, Madigan’s own pension reform bill that he introduced earlier this year included a preamble which declared: “the fiscal crisis in the State of Illinois jeopardizes the health, safety, and welfare of the people and compromises the ability to maintain a representative and orderly government.”
Yet, somehow, the fiscal crisis wasn’t quite dire enough to persuade legislators to put off spending $50 million on a Statehouse remodeling project that included $670,000 for copper-plated doors, $300,000 for chandeliers and $80,000 for a couple of statues.
Make no mistake, pension costs are crowding out spending on other much-needed state programs, particularly education. There really is a crisis.
It’s just going to be a bit tougher now to square that reality with this large Statehouse remodeling tab if and/or when a new pension law finally gets in front of a judge.
* Meanwhile…
Illinois House Speaker Michael Madigan says he’s waiting for a vote to be scheduled on a pension overhaul.
But the Chicago Democrat says any pension plan must be “meaningful” in order for him to call it for a vote. He didn’t elaborate. […]
Madigan and Cullerton sued Gov. Pat Quinn for halting lawmakers’ pay over pension inaction. A judge is expected to rule soon. Madigan says they’ll likely appeal the case if the ruling doesn’t go their way.
* And let’s finish this post with a comment from Finke…
For a couple of weeks now, we’ve heard people taking shots at the $51.5 million renovation of the Capitol’s west wing, particularly the famous $670,000 copper-plated doors.
Now for a different perspective. Pulitzer Prize winning architecture critic BLAIR KAMIN of the Chicago Tribune added his perspective to the project last week. The story was headlined “Illinois Capitol rehab worth every penny” so it wasn’t going to be another attack on the project’s various outlays. […]
Kamin reviewed the fact that when a major overhaul like this is done, it makes more sense and lowers the cost to do the redecorating at the same time as the other work like replacing the ventilation system and bringing the building up to modern life safety codes.
He also noted that the Capitol is expected to last basically forever.
“When investing in a building like this you take the long view,” he wrote. “You don’t cut corners. Seen in that framework, the renovations should be celebrated, not censured.”
Finke also observed several tourists getting their photo taken in front of the new doors, which has to be helping Springfield’s economy a little bit.
- wordslinger - Monday, Sep 23, 13 @ 9:30 am:
The “police powers” argument always seemed weak to me, like Double-Secret Probation. You could use it to justify anything.
The filing itself is a valuable overview of recent fiscal history, but where do they lay out the case that they’ve exhausted all constitutional options to deal with the problem?
- RNUG - Monday, Sep 23, 13 @ 9:36 am:
“meaningful” = save enough money on the pension fund payments so we can spend it for all the other stuff we want to do but don’t have the money for (without raising taxes)
- JC - Monday, Sep 23, 13 @ 9:40 am:
Exactly right RNUG
- PublicServant - Monday, Sep 23, 13 @ 9:42 am:
Come on Rich…
===Make no mistake, pension costs are crowding out spending on other much-needed state programs, particularly education. There really is a crisis.
===
Why are you taking the IPI position that it’s the pensions vs other state programs? Why not include or single out bond servicing (or anything else) as “crowding out much-needed state programs”? The reason we have this “crisis” (that just came out of nowhere by the way right?)today, is because the legislature didn’t raise the much-needed revenues needed to fund the much-needed state programs including the pensions that they approved.
- Rich Miller - Monday, Sep 23, 13 @ 9:50 am:
=== The reason we have this “crisis” (that just came out of nowhere by the way right?)today, is because the legislature didn’t raise the much-needed revenues needed to fund the much-needed state programs including the pensions that they approved.===
All the other big stuff - education, Medicaid, prisons, etc. - have been cut despite a tax hike. Sorry, but it’s now your turn in the barrel.
- pensioner - Monday, Sep 23, 13 @ 9:50 am:
@publicservant… well said.
- ZC - Monday, Sep 23, 13 @ 9:50 am:
Does anyone think that Illinois can get out of its current fiscal mess -without- raising taxes? And I’m not talking just about keeping the 5% income tax in place.
If someone thinks we can, I’d love to see a URL or a concrete plan somewhere that does that. Beyond “we will fix our fiscal crisis by … err, cutting WASTE!”
I’m not saying a tax increase is the sole solution - the electorate would never get behind that. But in terms of the cuts you’d need to make to fix this issue without a tax increase, the electorate would hate that, too.
Illinois, please raise my taxes!!!
- Joe M. - Monday, Sep 23, 13 @ 10:18 am:
I’ve always thought that the police powers argument is negated by the fact that around 32 other states have higher top individual income tax rates than Illinois’ current 5% rate.
Even Moody’s has acknowledged that Illinois Illinois still has a diverse and large economic base, with above-average wealth levels.
Moody’s has also pointed out that Illinois has sovereign powers over revenue and spending - and statutory provisions giving priority to debt service over other state expenditures
- Grandson of Man - Monday, Sep 23, 13 @ 10:19 am:
“Illinois, please raise my taxes.”
It will be an onerous task, no doubt–especially trying to amend the state constitution to enact a progressive income tax.
It’ll be probably a matter of time before someone says that Illinois residents and businesses have been leaving the state in droves because of the last income tax increase. While the state corporate tax is high (although per one or more commenters, most corporations don’t pay the tax), the income tax is the second-lowest in the region. I think it’s a good idea to get ahead of some of those comments. First of all, businesses that left the state have been offset in at least one study by businesses starting up in the state. Secondly, why would people leave Illinois to go to a regional higher-tax state because of the 2011 income tax increase? Maybe this isn’t such a good question, because I read or heard that people wanted to move to Canada to avoid “socialism” in America.
Ralph Martire of the CTBA also pointed out that the pension costs are eating into other services. His organization’s proposed solutions don’t square with those of the IPI. Many can agree that the problem exists, but not on how to correct it or manage it.
I honestly, honestly, honestly hope we can get the pension debt under control. I would really like to move past this issue and focus on other things. Even with this, I hope that whatever is done is fair and constitutional.
- Anon - Monday, Sep 23, 13 @ 10:26 am:
“..save enough money on the pension fund payments so we can spend it for all the other stuff we want to do but don’t have the money for..”
Hehe..remember when Springfield had enough money to fund stem cell research?
- Norseman - Monday, Sep 23, 13 @ 10:28 am:
Well said Word!
Maybe Quinn should’ve argued that his withholding of legislative salaries is okay because of police powers. After all, isn’t he in charge of the State Police.
- Anonymous - Monday, Sep 23, 13 @ 10:29 am:
The Trib has an interesting article on the constitutional debate and intent on the pension clause.
- Cook County Commoner - Monday, Sep 23, 13 @ 10:30 am:
It appears to be “Game Over.” The fiscal fate of Illinois was pretty much sealed in 1970 when the state constitution enshrined pensions with its non-impairment clause. There was a glimmer of hope when the constitution last came up for review, but then it became clear that the pro-pension forces could easily out-manuever fiscal sanity.
Now, the state’s unemployment rate is once again rising, and its labor participation rate is dropping. 10,000 or so folks are reaching 65 every day nationally, and Illinois has its fair share of this demographic. Their taxability will drop signifcantly.
And considering the over 600 government employee pension plans throughout Illinois, most of which are in fiscal trouble, it doesn’t take a rocket scientist to figure out that taxes throughout the state will rise.
The last hope Illinois has is for favorable rulings out of the pending California and Detroit municipal bankruptcies, probably at the US Supreme Court level, giving the state and its local governments some ammo in changing government employee pensions when faced with state constitutional and statutory prohibitions.
Until then,the pols will do nothing, and it’s either pay up or leave for the rest of us.
- Norseman - Monday, Sep 23, 13 @ 10:32 am:
Sorry RNUG, your comment was on point as well. Well said.
- Grandson of Man - Monday, Sep 23, 13 @ 10:41 am:
“state constitution enshrined pensions”
The state constitution also enshrined a flat income tax. I would love to see a progressive income tax increase planted right on the behinds of the super-wealthy who are perpetually screaming for workers and the poor to take all the cuts. The great thing about this type of tax increase is that the majority could get a tax decrease.
- A guy... - Monday, Sep 23, 13 @ 10:46 am:
The longer a position stays steeped in “the only remedy is to raise taxes and not make any reform to pensions” the less any legislator will be able to support that position. I’m not a Democrat, but in this case I believe the Speaker is right. It does have to be meaningful. Defining meaningful is the key. Everyone is going to lose a little skin to get there. If you try to exempt yourself from the solution, you’ll most surely exempt yourself from the discussion. Now, I think I’ll put a helmet on for the inevitable replies.
- Nearly Normal - Monday, Sep 23, 13 @ 10:47 am:
Rich, be sure to post a picture of the “spiffy new digs” for the Capitol press. The only one posted here looked pretty Spartan. It will probably look different with furniture, etc.
- Aldyth - Monday, Sep 23, 13 @ 10:52 am:
I’m sure tourists want photos taken in front of the doors, which will be footnoted in history as “infamous”.
- Norseman - Monday, Sep 23, 13 @ 10:53 am:
=== The Trib has an interesting article on the constitutional debate and intent on the pension clause. ===
Nobody cares what the Trib has to say about anything. They have shown themselves to be so biased and misinformed, nothing they say can be believed.
- Anonymous - Monday, Sep 23, 13 @ 10:54 am:
A lot of rights are “enshrined” in both state and the U.S. Constitutions. Are those rights hostage to their economic costs to be enforceable?
- PublicServant - Monday, Sep 23, 13 @ 10:57 am:
===All the other big stuff - education, Medicaid, prisons, etc. - have been cut despite a tax hike. Sorry, but it’s now your turn in the barrel.
===
Pensions have already taken their turn(see tier 2 and California), Rich, and the state is now charging premiums for health insurance to pensioners that was formerly “promised” as being free after 20 years. No more! That tax increase you mentioned got us through the worst of the Great Recession, and that was why it was implemented, not because of the so-called “pension crisis”, that hit Illinois harder than most since we depend on such a regressive set of taxes, and give breaks to corporations at the drop of a threat to leave. Do you think those cuts to education, Medicaid, prisons etc are permanent the way pension cuts would be decades into the future long after the effects of this recession have been more than made up for, and as we are currently well on the way to mitigating now?
Quit making false comparisons. Programs that can be cut, have been cut. We need constitutional revenue streams to pay back what was taken over the years from the pensions. The sooner we get to raising revenues the lower those revenue increases will need to be. Quit trying to implement “solutions” which are likely to be shot down in the courts. We knew this day would come, and we took care of that eventuality in 1970. Get on with raising revenues to be able to pay for the programs that OUR Representatives have brought into existance, and quit trying to deny the existance of the pension protection clause in the state constitution that the people of Illinois have approved, and that the courts have supported for decades.
- Federalist - Monday, Sep 23, 13 @ 10:59 am:
Make no mistake, it is not the statehouse remodeling that is causing the fiscal crisis.
The real problem is the existing Medicaid budget. And this year the GA and Governor passed the expansion of Medicaid under ObamaCare by several hundred thousand people. No budget problem or constitutional crisis then was there?
Neither the politicians or the MSM has the guts to point this out. A total deafening silence.
- Anonymous - Monday, Sep 23, 13 @ 10:59 am:
=== The Trib has an interesting article on the constitutional debate and intent on the pension clause. ===
Nobody cares what the Trib has to say about anything. They have shown themselves to be so biased and misinformed, nothing they say can be believed.
Maybe you should read it first.
- wordslinger - Monday, Sep 23, 13 @ 11:04 am:
CCC, lol, that’s hardly the spirit that won the west. Where is your east of Eden destination, anyway?
- anon - Monday, Sep 23, 13 @ 11:09 am:
Cutting programs going forward is different than welching on a debt already accrued. The simple answer for why pensions are not comparable to spending on prisons, etc. Plus, not all of the programs mentioned have constitutional implications.
- RNUG - Monday, Sep 23, 13 @ 11:17 am:
Probably can’t read it; the Trib story is behind a paywall …
- Norseman - Monday, Sep 23, 13 @ 11:18 am:
Public Servant, see http://www.mediabistro.com/10000words/ink-by-the-barrel-on-the-internet_b11933
:)
- leonard - Monday, Sep 23, 13 @ 11:22 am:
This building was meant to allow the legislature to create law for the benefit of the people.Now, it’s purpose is generally help a Party or the legislators.A quarter moon should be on those doors
- Rich Miller - Monday, Sep 23, 13 @ 11:23 am:
===That tax increase you mentioned got us through the worst of the Great Recession, and that was why it was implemented, not because of the so-called “pension crisis”===
Um, just about every dollar taken in by that tax increase now goes toward pension funding. Just an eery coincidence?
- Rich Miller - Monday, Sep 23, 13 @ 11:26 am:
===And considering the over 600 government employee pension plans throughout Illinois, most of which are in fiscal trouble,===
Most local government funds are just fine because the locals were required to fund them. Chicago and state funds are outta whack because there was no such explicit requirement.
- walkinfool - Monday, Sep 23, 13 @ 11:30 am:
===Michael Madigan says he is waiting for a vote to be scheduled===
Coffee spray on that one.
- Grandson of Man - Monday, Sep 23, 13 @ 11:52 am:
“Governor passed the expansion of Medicaid under ObamaCare”
I know, it’s a great thing, isn’t it? Thousands of poor Illinoisans are already being helped via CountyCare and will get more help when Obamacare kicks in. This is really important, given how well the rich are currently doing. The good news is that the federal government will foot the entire bill for the first three years and will thereafter reduce its contribution gradually to 90%, by 2020.
Even some Republican governors are expanding Medicaid because of their polling number–I mean their concern for the poor residents in their states.
- AFSCME Steward - Monday, Sep 23, 13 @ 11:56 am:
Sorry Rich, you’re wrong on this. Pensions are constitutionally protected, the other stuff is not. Additionally, these programs were created & expanded by leaders who knew we didn’t have the money to pay for them. They skipped pension payments & borrowed money to float pandering promises to voters in order to get elected.
Fixing the pension mess in Illinois is real easy. It could be done immediately. What makes it hard is that the same people who created the mess are now trying to craft a plan that meets constitutional scrutiny but doesn’t result in them being held accountable by the voters. Revenue has always been the problem. It continues to be the problem. Raise revenue you fund the pensions. But raise revenue you lose your seat.
“All the other big stuff - education, Medicaid, prisons, etc. - have been cut despite a tax hike. Sorry, but it’s now your turn in the barrel.”
- cod - Monday, Sep 23, 13 @ 11:57 am:
===Make no mistake, pension costs are crowding out spending on other much-needed state programs, particularly education. There really is a crisis.===
We seem to have a tautology crisis here.
Pension costs are part of the labor costs for education. Paying educators is most of education spending. So how can it be said that labor costs are crowding out labor costs?
The conclusion that education costs are crowding out much needed education programs seems to be a basic premise of much of the populist thinking about accrued pension obligations. It just makes no sense.
- Esquire - Monday, Sep 23, 13 @ 12:11 pm:
Copper doors controversy: another Patsy Quinn “much ado about nothing” grandstand play.
Quinn should visit the numerous Chicago Public School buildings constructed decades ago when the Chicago Board of Education was flush with taxpayer money. Many of the classrooms were fitted with custom made door knobs beaing the seal of the Chicago Board of Education (An arm and a hand holding an uplifted torch). When other schools were built during less prosperous times, all of the costly ornamental features were omitted.
- A guy... - Monday, Sep 23, 13 @ 12:12 pm:
In 44 years since the Constitutional Convention, there are some assumptions that have changed in terms of life expectancy, revenue cycles, the escalating salaries of public employees, etc. It’s despicable that the State didn’t keep it’s part of the bargain with funding. That should be taken care of once and for all with an enforceable judicial mandate. There are many other contributing factors to this crisis though. We do need “meaningful” reform. Rich is right about everyone getting a turn in the barrel. Ignoring the realities of adjusting these formulas is not the answer.
- Roll a crit - Monday, Sep 23, 13 @ 12:23 pm:
I took a walk-around the new press offices in the former Rathskellar area: with the maze-like bare foundation walls of the building framing them, you need 20-sided dice and a Bag of Holding just to find your way around. The TV Press Conference area is noisy, comically small and narrow with a wall that resembles a firing squad location or a stand-up comedy club stage. Makes the old Blue Room look like a roomy palace.
- Shore - Monday, Sep 23, 13 @ 12:34 pm:
you mock the doors but there’s a reason people still mention $600 toilets and $400 hammers from the 1980s and the name proxmire. this stuff sticks.
- JC - Monday, Sep 23, 13 @ 1:15 pm:
Police powers….fiscal crisis…..no money to pay retirees…….lots and lots of cash available (police powers, remember) for top notch doors for statehouse. Which way is it?
- walkinfool - Monday, Sep 23, 13 @ 2:48 pm:
Press area in the cellar?
Easy to seal them off in an emergency.
- Ruby - Monday, Sep 23, 13 @ 3:15 pm:
== Defining meaningful is the key.==
“Meaningful” sounds like code for: We will kick this pension funding problem around in the legislature, the committee, and the court until after the next election because our goal is always to be reelected.
- No Sense - Wednesday, Sep 25, 13 @ 7:51 am:
I hope that the company that did the door job of $670,000 got paid up front or after the job was done and they don’t have to wait for payment like all the other people that did or do business with the state. The State is so broke the thing that is broke is the legislators everything for them who cares about the workers and the retiree’s and the people of our once great state let’s do what we want and hurt them. If I or anyone else did this we would pay the price not them.