Shearer finally emerges, lashes out
Thursday, Jan 9, 2014 - Posted by Rich Miller
* Former Aaaron Schock chief of staff Steve Shearer has been noticeably quiet ever since I first wrote that he was heading up a new political group - funded by trade unions - to attack Bruce Rauner. Shearer finally spoke via press release today…
“You can’t put toothpaste back in the tube,” said Steven Shearer, the chairman of the Republican Fund for Progress and Jobs. “In a single month Rauner took completely opposite positions on the minimum wage. It is clear to me that Rauner got poll results showing how toxic his position was with the voters. Rauner then concocted a story saying he ‘misspoke’ and was ‘flippant.’ Now it turns out that was big lie because he said the same thing just as forcefully last fall.”
Shearer continued, “This is why Republicans who know about Rauner have no doubt he would go down in flames next November were he to win the nomination, but also that Rauner would drag down other Republicans to epic defeat in Illinois.”
“The notion that Rauner is the ‘inevitable’ nominee has been shattered. All of Rauner’s millions of dollars he is spending to buy this election can’t cover up for lies and an amateurish campaign operation.”
Shearer concluded, “This whole episode demonstrates why we formed the Republican Fund for Progress and Jobs–Republicans will have severe buyer’s remorse after the primary if they don’t take a very hard look at Bruce Rauner before they vote.”
Shearer’s PAC reported its first contribution today, a $45K transfer in from Operating Engineers Local 150.
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* Ugh…
Hours after FEMA denied the state’s request for federal assistance to help local governments in nine counties recover expenses related to the deadly storms on Nov. 17, Governor Pat Quinn today announced the state will appeal the decision. While the federal government has approved millions of dollars to date of aid to help people and businesses recover, today’s decision denies aid to local governments in impacted communities throughout Illinois.
“While we appreciate FEMA’s partnership in helping individuals and businesses recover, I’m disappointed in this decision,” Governor Quinn said. “My Administration will immediately work to develop a strong appeal that demonstrates how much this assistance is needed. The state of Illinois will continue doing everything necessary to help our hardest hit communities rebuild and recover from these historic tornadoes.”
On Dec. 19, Governor Quinn requested federal aid for local governments in Champaign, Douglas, Grundy, Massac, Tazewell, Vermilion, Washington, Wayne and Woodford counties. That request included documentation of tornado-related expenses, such as emergency protective measures, debris removal and repair or replacement of government-owned facilities incurred by the nine counties and the state.
“On behalf of the city and residents of Washington, I appreciate Governor Quinn’s continued partnership and support as we recover,” Washington Mayor Gary Manier said.
Those costs, which totaled more than $6.1 million, were compiled by a joint damage assessment conducted by FEMA and the Illinois Emergency Management Agency (IEMA) in early December. That total is short of the federal threshold for Illinois of $17.8 million, which is based on the state’s population multiplied by $1.35. This calculation hurts the chances of aid for geographically large states with large urban centers like Illinois.
The request also noted other impacts from the tornadoes, including winter weather conditions that will delay debris clean up and rebuilding, affected communities still dealing with costs related to flood events in April 2013 and April 2011 and public property losses that may not be completely covered by insurance. The state will make the appeal within 30 days to FEMA.
*** UPDATE *** From Sens. Kirk and Durbin…
U.S. Senators Mark Kirk (R-Ill.) and Dick Durbin (R-Ill.) today expressed disappointment after receiving word that the Federal Emergency Management Agency (FEMA) has denied the State of Illinois’ request for Public Assistance to help nine Illinois counties recover from the deadly tornadoes that struck the state on November 17, 2013. The State of Illinois plans to appeal the decision.
“I am incredibly disappointed with FEMA’s decision to deny Illinois the necessary funding it needs to rebuild after November’s devastating tornadoes,” Sen. Kirk said. “Having seen firsthand the destruction that our state has suffered, and having met countless volunteers and families affected by these 24 tornadoes, those families and the hard working members of our community deserve the opportunity to rebuild and recover from the deadly storms. I fully support Governor Quinn’s appeal of this decision.”
“This was some of the worst storm damage I have ever seen,” said Durbin. “While the Individual Assistance designation that the counties received just before Christmas will help families and businesses recover, a Public Assistance designation is desperately needed to help local governments rebuild the infrastructure that will make these communities whole again. I am disappointed in today’s decision, but I will support Governor Quinn’s appeal and work with the entire Illinois Congressional Delegation to identify other opportunities for federal assistance.”
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* Sun-Times…
A day after Bruce Rauner offered qualified support for a minimum-wage hike, a new video surfaced Thursday showing the GOP gubernatorial candidate telling an audience of Downstate Republicans in September that he “adamantly, adamantly” opposes raising the income bar for Illinois’ working poor.
The video in which Rauner appears to contradict the minimum-wage platform he outlined Wednesday came from the Democratic-funded Super PAC, American Bridge 21st Century, which Thursday posted on YouTube the recording of Rauner addressing the issue four months ago before Ford County Republicans.
“I am adamantly, adamantly against raising the minimum wage. My view is we already have the second highest unemployment in America. We already have an outrageously high unemployment rate among low-income, poor minority kids in Chicago, in Rockford, in Peoria and East St. Louis. And raising the minimum wage is just going to blow them out and take away their jobs. We cannot do this,” Rauner said in the video.
“Let’s be clear: The right answer to raised wages is a booming economy with employers competing to hire people and having our young people well educated and well trained,” Rauner said, drawing applause from the crowd gathered Sept. 7 at a Gibson City golf course.
This ain’t going away.
* Video…
Turns out that this is a BlueRoomStream.com video used without permission, so it may not be up long because the folks over there are quite upset. If it gets pulled down, I’ll repost.
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Question of the day
Thursday, Jan 9, 2014 - Posted by Rich Miller
* From almost a year ago, we look back on a profile of Dawn Clark Netsch…
Basically it’s ALS; Lou Gehrig’s disease,” Netsch said in an interview.
Amyotrophic lateral sclerosis, a degenerative nerve disorder, is also known as Lou Gehrig’s disease, named after the famed New York Yankees baseball player.
“And my first reaction was I’m not even a Yankees fan. I’m a White Sox fan,” she said.
ALS robs a person of some of life’s most basic functions and normally can be deadly in three to five years. ALS weakens the nerves and makes it difficult to walk, swallow and speak.
“It’s a tough one,” she said sitting in the kitchen of the near north side home she shared with her late husband, famed architect Walter Netsch.
Asked why it was important to speak of her disease, Netsch did not hesitate.
“Might get more people thinking about what is ALS,’ she said, noting, “I’m going to be straight about this also.”
* From a Tribune perspective after she died…
A policy wonk and ethics guru, the Northwestern law school professor tackled the complex issues of taxes and finances, crime and punishment, education and the poor. She tried to improve pension funding during the 1980s when the debt was $8 billion, but governors and lawmakers often ignored such warnings as the retirement system liability grew into today’s $100 billion shortfall.
Wealthy from the successes she had along with her husband, noted architect Walter, she once gave $10,000 to help support the state pension system because she “just thought it was fair.”
In 1994, Netsch became the first and only woman to win a Democratic primary for governor. Distancing herself from her image as a brainy woman with a collection of clunky necklaces and bright, flowing scarves, the state’s first female comptroller showed off the pool-shooting skills she honed as a child. She called herself a “straight shooter,” and primary voters loved it.
In the general election, she pressed her plan to raise income taxes, lower property taxes, increase money for schools and help the poor. The move got panned by better-funded Republican Gov. Jim Edgar. After he easily won the election, Edgar unveiled a similar plan but couldn’t get it passed.
She was a “founding mother” of modern Illinois government and just one heckuva woman.
* The Question: Should there be a statue of Dawn Clark Netsch somewhere in or around the Illinois Statehouse? Take the poll and then explain your comment and/or suggest where the statue should be and what it ought to depict.
survey services
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* Bruce Rauner on WGN Radio today…
“The government union bosses, they are bribing politicians to give them unaffordable pensions, free healthcare, outrageous pay and benefits and they’re bankrupting our state government, they’re raising our taxes and they’re forcing businesses out of the state, and as a result we’ve got brutally high unemployment.”
* This is a guy who has used his millions to his own benefit, political and maybe otherwise. For example, he made huge contributions to a Democratic governor and then received a bigtime pension investment deal…
Rendell left the meeting buoyant, but confessed to aides he never asked the would-be donor for a set amount. Rendell “just had a feeling,” he told them. A week or so later, the Chicagoan, Bruce Rauner, sent a check for $200,000. Another check, for $100,000, came just before the election. At the time, Rauner’s private-equity firm had business with the state of Pennsylvania. GTCR L.L.C. was managing $110 million in pension funds for the State Employee Retirement System, records show. After Rendell became governor, the state doubled its stake in GTCR funds, to $226 million. That meant at least $4 million more in management fees to the firm.
* He also used his big pile of cash to help pass education reform…
Edelman openly bragged about how his group had outfoxed the teachers unions and the Illinois media, and had taken advantage of an opening with House Speaker Michael Madigan to pass his sweeping education reform proposal, which is now state law. His remarks created a huge stir and Edelman has since apologized for his candor, but most of what he said about Illinois politics was quite fascinating and definitely worth a look.
Edelman told the Aspen Institute’s conference participants that wealthy investor Bruce Rauner had approached him about expanding his group’s school reform efforts to Illinois.
* And then there were all the conveniently timed contributions to local political organizations just ahead of slating sessions…
State Senator Kirk Dillard released the following statement today regarding the Cook County Republican Party endorsement:
“Today’s endorsement is yet another sad example of Bruce Rauner buying the election. Ask yourself: why would Cook County GOP bosses support Rauner, knowing that he voted democrat, gave millions of dollars to state and national democrats, is a Rahm Emanuel insider, AND hired a convicted Blagojevich insider to win state contracts? There’s only one explanation — the Bruce Rauner money machine was at work again. Only in Illinois would the legitimate concerns of rank-and-file, grassroots Republicans be dismissed so brazenly. Welcome back, pay-to-play!
Not to mention that if the unions had successfully “bribed” politicians here, why did pension reform pass and get signed into law?
I mean, really, he’s fast becoming a bigger drama queen than Joe Walsh.
Seriously, this is the same guy who has pledged to fund a political committee after he’s elected to give money to legislators who are with him.
* The IFT’s president responds…
“We are starting to learn quickly that billionaire Bruce Rauner’s Carhartt jacket not only still has its tags on, but it’s very transparent sheep’s clothing,” said Dan Montgomery, President of the Illinois Federation of Teachers and a high school English teacher of 20 years. “The real Bruce Rauner is a hypocrite who will stop at nothing to enact his right-wing fantasy of cutting the minimum wage by a dollar an hour – including accusing teachers, firefighters, and nurses of illegal activity as he did today. Like any typical politician, he is desperately trying to convince voters that he’s just like you and me, but he crossed a line with this allegation.
“It’s also hard to understand how a guy who makes $25,000 an hour has the audacity to call the $40,000 average salary of a teacher ‘outrageous’ and would cut the income of our most vulnerable citizens by 15%. It’s hateful, it’s hypocritical, and Illinois voters aren’t buying it.”
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Madigan blamed for job loss
Thursday, Jan 9, 2014 - Posted by Rich Miller
* OK, I got a little chuckle out of a recent Investment News story. Who knows, maybe there’s something to it. I really doubt it, though.
The story goes that Vincent Romano was a broker at Morgan Stanley. He decided to run against Rep. Lou Lang as a Republican back in 2012. He was fired in May and Romano asked for damages…
“[Morgan Stanley] feared a loss of business with the city of Chicago and the state of Illinois because [Morgan Stanley Smith Barney] has a relationship with House Speaker Michael Madigan, and Romano was running on a reform platform that could upset Michael Madigan’s political power,” Mr. Romano argued
Upset Madigan’s political power? Hardly. Romano spent less than $29K in the final quarter and was thoroughly thumped 68-32 by Lang.
* But this comment went into Romano’s permanent record…
There were “concerns about [the] financial adviser running for elected political office, despite not having received prior firm approval for same, as required by firm policy,” the firm wrote on his U5, which is publicly available through the Financial Industry Regulatory Authority Inc.’s BrokerCheck database.
Romano claimed that he was initially given permission to run.
* And he won his case, but didn’t get nearly the $8 million he’d demanded…
In the end, the arbitration panel awarded $475,000 in compensatory damages and $50,000 in punitive damages.
It also ordered that the language on Mr. Romano’s termination form be altered to read that he was fired because of “concerns about the financial adviser running for elected political office, despite not having received prior firm approval for same, due to a misunderstanding between the firm and the financial adviser. The terminated employee violated no investment-related statutes, regulations or rules.”
Mr. Romano said that he would have liked the award to have been more substantial, but he applauded the panel’s decision to award punitive damages, though he characterized the amount as a “slap on the wrist.”
Morgan Stanley said that it regretted the award and denied any wrongdoing, pointing to the arbitrators’ characterization of the disagreement as a “misunderstanding.”
By the way, Romano circulated petitions to run against Lang again this year, but was removed from the ballot on Tuesday.
According to the Investment News story, Romano is “working on a business venture in firearms manufacturing,” which probably wouldn’t go over too well with Skokie-area voters anyway.
[Hat tip: IR]
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Today’s numbers ain’t good, either
Thursday, Jan 9, 2014 - Posted by Rich Miller
* AP…
A new report says almost one-third of Illinois homes are “deeply underwater” meaning that they’re worth at least 25 percent less than what’s owed on the loans.
The report released today by Irvine, Calif.-based RealtyTrac says that represents almost 775,000 Illinois homes. The report is based on data from December.
Only Nevada and Florida fare worse, with 38 percent and 34 percent of homes deeply underwater, respectively.
Ugh.
Perhaps less talk about cartoon characters and more action on the economy is in order, governor.
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Quinn signs local pension bill
Thursday, Jan 9, 2014 - Posted by Rich Miller
* The specific local might not be willing to back Gov. Quinn any more because of this signature, but I highly doubt that SEIU as a whole is gonna walk away anytime soon…
Picking a fight with one of his most important union supporters, Gov. Pat Quinn Tuesday signed legislation to raise the retirement age for Chicago Park District employees and cut post-retirement benefits for park district retirees. […]
The law would cut annual cost-of-living increases for current retirees from 3 percent to the lesser of 3 percent or one-half of the rate of inflation. Under the plan, the retirement age for existing employees under 45 would jump from 50 to 58. It also would require current employees to contribute up to 2 percent more out of their paychecks by 2019 while the park district would up its contributions to the system by $75 million during that period. […]
The measure was opposed by SEIU Local 73, which has donated $28,677 to Quinn. That is part of $4.5 million that SEIU as a whole has given the governor during his career.
“We’re incredibly disappointed in what Gov. Quinn did,” union spokesman Adam Rosen told the Chicago Sun-Times. “We did not know he’d be signing this today. He did not tell us. We found out about the same time you did. […]
“Now that those two bills are signed, the possibilities of financially supporting him are dwindling,” Rosen said. “Right now, it doesn’t look good from our view of Gov. Quinn. He has signed two very unconstitutional bills that impact thousands of workers and didn’t seem to consult with the public on it. That’s two major strikes against him.”
Discuss.
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* From an e-mail to supporters…
Dear Friend,
As I prepare to lay out plans to continue moving Illinois forward in 2014 and beyond, four right wing Republicans are busy talking about their schemes to drag us backwards.
All four Republicans oppose my plan to raise the minimum wage to at least $10 an hour in Illinois. One of them - a billionaire at that - even announced his proposal to slash the minimum wage by $1 an hour, taking $2,000 a year out of the pockets of those earning the least, which is cruel, heartless and wrong.
These guys have all the compassion of C. Montgomery Burns.
In America, if you work hard and play by the rules, you shouldn’t have to live in poverty. People should be rewarded for their work, not punished.
Putting more money into the pockets of those who are living paycheck to paycheck is not only the right and decent thing to do, it’s good for the economy. Everyday people don’t admire the extra money they earn in the bank - they spend it in the local community, creating more jobs.
As long as I’m Governor, I will never stop fighting until we raise the minimum wage in Illinois. Click here to get involved in my campaign.
Full speed ahead in 2014.
Your friend,
Governor Quinn
* Related?…
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Kay proposes “knockout” bill
Thursday, Jan 9, 2014 - Posted by Rich Miller
* This case ginned up a big uproar in the St. Louis area when the initial allegations surfaced in November…
A 23-year-old Metro East college student said she was viciously punched in the face along a south St Louis sidewalk Monday.
Police say the woman was ambushed and deliberately knocked to the ground in what officers say may be a game called “Knockout.”
All the student knows is that it happened as she walked along Arsenal at Brannon early Monday morning, trying to get to a waiting vehicle. She and her boyfriend were giving a friend a ride from a local bar. […]
“I dropped immediately to the ground and screaming and crying and everybody just scattered, “she said.
She wondered if she was victim of the so-called “Knockout Game” – when a stranger attacks someone at random.
* The story had a racial component as well…
She claimed she was walking through a large crowd around Arsenal at Brannon street when 3 black men punched her in the eye and knocked her out before the crowd scattered.
* But…
The “knockout game,” in case your grandmother has not been emailing you repeatedly about it, is an alleged game teens are playing in which they attack random folks on the street and knock them out. The woman appeared on KMOV local news, describing the alleged attack and discussing how she had a double fracture of the bone under her eye and needed reconstructive surgery.
Now the woman has admitted it was all a lie. Ashley DePew, 23, was actually punched in the face by her boyfriend, Justin Simms, 25.
More…
On Thursday, December 5, 2013, the couple admitted they made up the entire ‘knockout game’ story after St. Louis police “Had to spend a significant amount of resources unraveling the lies they told.”
Sheesh.
* A few days later, Metro East state Rep. Dwight Kay filed a bill to increase penalties for anyone 15 years or older involved in the so-called “Knockout Game.” From a press release…
The Knockout Assault Prevention Act would increase the penalty for adults or minors committing battery in the form otherwise known as the ‘knockout game’. The penalty for committing such an act of violence would result in a Class 2 felony, a 3-7 year prison sentence. The new Act amends the Juvenile Court Act to provide that, if the juvenile court judge finds probable cause exists to believe that a minor age 15 and up committed such a crime, then the case shall be transferred to adult criminal court.
Rep. Kay added, “Knockout violence has become more prevalent over the past year. It is a serious threat to law abiding citizens when they shop, walk in a park or while just getting into their car. This sort of criminal behavior will not be tolerated in Illinois and I intend to do whatever is necessary to deter the knockout game.”
* But Rep. Kay’s local coppers say it isn’t a problem in their neck of the woods…
The bill would increase the penalty for battery related to the knockout game to a Class 2 felony, punishable by 3-7 years in prison. It also amends the Juvenile Court Act to require that if a minor aged 15 and up commits such a crime, he will be transferred to adult criminal court.
The latter gives St. Clair County Sheriff Rick Watson some pause.
“Moving it up to a Class 2 felony, I have no issue with that,” Watson said. “But I’m not sure about the juveniles… Moving 15-year-olds (into adult court), that’s something I think is quite an issue.”
However, Watson said he doesn’t think the knockout game is a significant problem in the metro-east. “We have not had any reports of that; that’s more of a city-type issue,” he said. “We live in the state of Illinois, where Chicago experiences things that we simply don’t experience in southern Illinois. Around here we haven’t had the issue, and I definitely believe this is a Chicago issue … but if they introduce it and it becomes a law, we can use it.”
Madison County Sheriff Bob Hertz also said that he has not seen any cases of “knockout game” violence
* And is it really a “trend”? Doubtful at best…
The new scare is the “knockout game,” in which black youths supposedly attack innocent people just for fun. Conservative pundits decry the MSM for suffering from political correctness and whitewashing crimes perpetrated by black people, but a more reasonable explanation for why most media outlets aren’t devoting round-the-clock coverage to the knockout game is that—sorry, Sean Hannity—there is no hard data showing that it’s a trend.
An important clarification: the game definitely exists, and has been around for at least a couple of years. I’m not claiming the game doesn’t exist. But the idea that it’s reached epidemic levels, or that it’s only being played by young black people, is a fallacy. As Alan Noble convincingly writes, “Analyzing data is not as simple as watching some YouTube videos and Googling ‘knockout game.’” And when it comes to the knockout game’s supposed popularity, the data is almost entirely anecdotal:
Here’s the fascinating thing about this “spreading” trend: nobody seems to have any evidence that it’s spreading, or that it’s new, or that it’s racially motivated, or that black youths are the ones typically responsible, or that whites are typically targeted. This hasn’t stopped Mark Steyn, Thomas Sowell, and Matt Walsh from describing this specifically as a crime committed by blacks against whites, CNN from claiming that it is “spreading,” or Alec Torres at NRO from say it is “evidently increasing [in] popularity.” […]
Crime happens to every type of person, and is perpetrated by every type of person. What makes the false narrative of the knockout game—or any “black mob violence” story—crop up every year is the fact that some people will always believe the color of someone’s skin predisposes him to commit a crime. When a few YouTube videos are able to convince terrified white folks that young black people are dangerous, they may as well assume that all cats can play the keyboard.
* Ironically enough, Rep. Kay voted for a bill in April that raised the bar on charging juveniles with felonies…
The new state law that classifies 17-year-olds charged with some felonies as juveniles rather than adults won’t have much effect on the Sangamon County justice system.
“Nothing has changed as far as the number of prosecutors and judges assigned to juvenile cases,” said Sangamon County State’s Attorney John Milhiser. “We may have some fewer cases in adult court, but the violent ones will still be adjudicated there.”
Gov. Pat Quinn in July signed legislation that raises the age of the state’s juvenile court jurisdiction to include 17-year-olds charged with felonies. The reform is the second step in a process that began in 2010 when 17-year-olds charged with misdemeanors were moved from adult to juvenile courts on the theory they will receive more rehabilitative services in the juvenile justice system.
The new law, effective Jan. 1, doesn’t change laws that automatically place youths age 15 or older who commit certain serious crimes in adult criminal court.
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Dillard wants Godinez sacked
Thursday, Jan 9, 2014 - Posted by Rich Miller
* From a press release…
Republican candidate for Governor Kirk Dillard [yesterday] called on Governor Pat Quinn to fire Illinois Department of Corrections Director Salvador Godinez, after Corrections officials permitted a former gang member with a lengthy criminal record to be hired by the Department of Corrections. Xadrian McCraven was fired only after a Sun-Times investigation became public.
“It’s outrageous that former gang members are now running the prisons,” Dillard said. “No matter if you’re a Democrat or Republican, from Chicago or Cairo, this is just plain wrong and dangerous.”
Dillard called on the Governor’s Inspector General to investigate the circumstances under which McCraven was hired and whether any political influence was exerted to secure his employment. “The Governor needs to come clean and tell people who Mr. McCraven’s clout is. Who intervened with the Blagojevich and Quinn administrations to get this guy a state job?”
Dillard noted that McCraven’s 24 arrests and documented gang connections make it unlikely IDOC followed its own internal procedures in conducting a complete criminal background check.
Dillard called for Auditor General Bill Holland to determine whether IDOC hiring procedures were followed. “I’m filing a resolution to investigate whether someone bypassed hiring safeguards, or if hiring procedures need to be radically overhauled to prevent this from happening again,” Dillard said.
* Background and react from the Sun-Times…
Aides to Quinn said the governor continues to stand by Godinez. They also disputed Dillard’s statement about McCraven’s duties when he was senior adviser to the chief of parole — the $111,432-a-year job from which McCraven was fired Monday.
“Mr. McCraven never had any management or security duties and certainly was not involved in ‘running the prisons’ at any level,” said Tom Shaer, a corrections department spokesman. […]
McCraven, whose criminal history includes dozens of arrests in his youth, has made $1,700 in campaign contributions to elected officials including former Gov. Rod Blagojevich and other Democrats. In 2003, he was among thousands of politically connected people listed in a then-secret database of candidates for jobs, transfers or promotions in Blagojevich’s administration. […]
Brooke Anderson, Quinn’s communications chief, said that McCraven “was hired under Rod Blagojevich and inherited by the Quinn administration.”
After the Sun-Times reported on McCraven’s past, Quinn “directed the Department of Corrections to review the individual’s employment status, at which point discrepancies in his previous application were identified. He was immediately terminated from employment,” Anderson said. “The Governor supports Director Godinez, who is managing one of the toughest jobs in the country.”
Thoughts?
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* I asked “RNUG,” co-winner of our 2013 Golden Horseshoe for best commenter, to take a look at the lawsuits filed so far against the state pension reform law. And here it is…
As everyone should know, last year’s SB-0001, now Public Act 98-0599, “reformed” the Illinois Pension Code. There was an outcry at the time that it was unconstitutional and various groups were expected to challenge the “reform” via lawsuits. We are currently at three pension lawsuits and counting. It is expected that more suits will be filed, since the ones to date don’t cover every possible affected employee or retiree, most notably those employees or retirees governed by bargaining agreements. I look for union groups like AFSCME, the IEA, the IFt and SEIU to jump in at some point.
While I’m trying to get this right, I may miss things or skip over what someone would consider important. I have every confidence that CapitolFax.com readers will find anything I miss or get wrong. I do know, every time I read the filings, I find an additional item or two.
* First to file (12/27/2013) was a group of individual members of the Teachers Retirement System, and they requested class action for members of TRS who are specifically not members in either the Illinois Federation of Teachers (IFT) or the Illinois Education Association (IEA). Their suit was filed in Cook County.
Next to file (1/2/2013) was the Retired State Employees Association (RSEA) plus individual members, and they requested class action for all SERS members (including current employees) and annuitants (retirees and survivors). This was filed in Sangamon County.
A couple of hours later the Illinois State Employees Association Retirees (ISEA-R) and individual members filed, and they requested class action for annuitants in SERS, SURS, GARS and TRS with a minimum of 20 years service. This was filed in Sangamon County as well.
All three lawsuits make common diminishment claims against the constitutionality of the AAI (cost of living adjustment) calculation change, the age change, and the pensionable salary cap. But once you get past those commonalities, there are significant differences in their claims and approaches.
* The Cook County case takes the nuclear approach, maintaining that the Illinois Constitution Pension Clause overrides everything else and citing the relevant history and case law. They also ask for class action status only for non-bargaining group / non-represented retirees. While they make other minor claims, that pretty much sums up their argument. (Side note: among other things, they cite Senate President John Cullerton’s statement about the law likely being unconstitutional.) Their requested relief is simply to declare PA 98-0599 unconstitutional. If it works, great, but I’m not seeing any obvious fall-back position or appeal strategy. The one unique portion of this suit, alongside the request for simple declaratory relief, is a specific request for a jury trial on those issues that can be tried in front of a jury.
* The RSEA case takes a much broader approach, adding claims of a violation of the Equal Protection Clause (since the judges’ retirement system was not changed), Contract Law violations, and additional specific Contract Law violations for the early retirment groups (1991, 2002 & 2005) to the unconstitutional claim made in the first case by the individual TRS retirees. RSEA asks for class action status for all (Tier 1) SERS members and annuitants. They also ask that all monies that would have been paid under the previous flat 3% AAI law that exceed the payments due under PA 98-0599 be escrowed until such time as the case is resolved. That escrow request, if granted, will negate, at least temporarily, any pension fund savings for at least the next fiscal year. This case is also the one with the most supporting documents filed right up front. Reading between the lines of the RSEA claims, I think they are setting up for an appeal under contract law in the federal court system if they were to lose at the Illinois Supreme Court (IL SC) level.
* The ISEA-R case shares pretty much all the same claims the RSEA suit does, puts a couple of individual twists to it, and makes an additional claim or two. What is most different is their definition of a class: all retirees in all state retirement systems except the Judges Retirement System (JRS) with 20 or more years of service and not subject to a collective bargaining agreement. That’s a much broader class than the other two suits. (As an interesting side note, former state Rep. Gwen Klingler is a party to this suit.) They also make an additional promissory (basically implied contract) claim for the various ERI groups. While it isn’t spelled out, with the ERI / 20 year service reference, I’m wondering if this isn’t a second run at the premium free health insurance promise; a lot of people relied on that promise when they accepted the ERI. ISEA-R’s strategy seems to be very similar to the RSEA case, including the escrow request and appearing to set up, if needed, for a federal appeal under contract law.
Personally, as a non-union SERS retiree with more than 20 years service and a RSEA member, I like the approach being taken by both RSEA and ISEA-R. Given the inclusion of much of what the regulars here have discussed the past year, I have to assume the board members and legal counsel for those two cases are daily readers of the Capitol Fax. I’m also guessing that, even though they filed separate suits, these two groups may have discussed some common strategy.
Assuming Rich provides links to all three suits as filed, you should go read them. Hint: on the RSEA suit, you really only need to read the first 20 pages and the last page or two; the rest is supporting documentation.
* And here are links to all three lawsuits…
* Individual teachers suit filed in Cook County
* Retired State Employees Association (RSEA)
* Illinois State Employees Association Retirees (ISEA-R)
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* From the Rauner campaign…
Bruce Rauner’s campaign for governor released a new television ad today explaining why government union bosses are preparing to attack Bruce in an effort to try to hijack the Republican primary.
“Springfield is broken and too many career politicians are controlled by the government union bosses and special interests who make their money from the government,” Bruce said. “They know I’m the only candidate willing to shake things up and that scares them. Voters will be able to see right through their attacks.”
* Rate it…
It’s a good idea to warn voters of an attack on the horizon. No doubt. But he’s gonna have to eventually deal with the substance of those attacks, whatever they’ll be. My bet is on his close connections to lots of Democrats like Rahm Emanuel.
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Rauner tries to walk it back
Thursday, Jan 9, 2014 - Posted by Rich Miller
* Sun-Times…
Veering 180 degrees in a stunning political turn, millionaire private equity investor Bruce Rauner said Wednesday he misspoke and was “flippant” when he appeared to advocate a rollback last month in Illinois’ minimum wage.
In fact, Rauner now says he wants to see the minimum wage increase. […]
Rauner insisted he never meant to suggest lowering Illinois’ minimum wage by $1.
“I never said that. I said we should tie the minimum wage in Illinois to the national minimum wage. I didn’t use numbers. I didn’t use $7.25. I didn’t say any of that,” Rauner said. “I said I want Illinois competitive with other states.
Oh, please. Here’s what he said…
“I will advocate moving the Illinois minimum wage back to the national minimum wage. I think we’ve got to be competitive here in Illinois. It’s critical we’re competitive. We’re hurting our economy by having the minimum wage above the national. We’ve got to move back to the national.”
He didn’t use a number, but it’s clear what he proposed doing - roll the minimum wage back by a buck an hour. Anybody with even half a brain can see that.
* And now he says he wants to increase the minimum wage. NBC5…
Rauner now says “I support moving Illinois to the national minimum wage” at the same time supporting “the national minimum wage moving up.”
How far up? Rauner says “I can support raising the Illinois minimum wage in the context of pro-business reform.” Rauner says “I’m comfortable at $10.”
* Tribune…
In a Wednesday interview, Rauner initially sought to make the case that his Moline remarks had been taken “out of context” and that he was not in favor of cutting Illinois’ minimum wage even though he used the term “moving” it “back to the national” level. He acknowledged the remarks had created “quite a firestorm.”
“I was flippant, and I oversimplified an issue. I’m sorry. That was a mistake,” he said. Rauner said his support for tying Illinois to an increased federal minimum wage was coupled with the state adopting a comprehensive pro-business approach that included changing labor and environmental regulations, reducing taxes and improving education
He didn’t “oversimplify an issue.” He said what he said. But if he’s sorry and it was a mistake, then fine.
* However…
Rauner acknowledged the minimum wage topic “a sensitive issue” but accused Democrats of ginning up a “class warfare issue” by creating a state that was “hostile to business,” leading to continued high unemployment.
He was the one engaging in class warfare by proposing to cut the minimum wage by a buck an hour. That’s just the way it is, man. That class warfare stuff cuts both ways and Rauner has until now firmly planted himself on the side of the big boys.
* Rauner even quickly penned a Tribune op-ed that the paper obligingly rushed to print…
Tuesday, news outlets reported on a remark I made last month about lowering the minimum wage. One went so far as to characterize my remark as a “key policy proposal.” I strongly disagree. My statement was an oversimplification of a complex issue that deserves more detailed discussion.
Let’s acknowledge upfront that there’s no way you can raise a family and have a decent standard of living on the minimum wage. That’s true regardless of whether we raise the rate by $1.75. Makes you wonder whether the advocates of minimum wage hikes are really looking to help the working poor or whether they’re more interested in scoring political points.
For many young people, the minimum wage is a stepping stone to higher employment levels. When I was young, I had minimum wage jobs as a busboy, flipping burgers and parking cars. For many others, the minimum wage is a difficult ongoing reality of adult life.
To make a profound difference in living standards, we need a comprehensive economic development and education agenda. Incremental increases in the minimum wage won’t address the underlying skills and investment gaps in Illinois.
Yeah, he’s just a regular guy. A common man. Flipped burgers when he was a kid and parked cars. A true man of the people. Probably still wearing the same watch.
And that “comprehensive economic development and education agenda”? Not spelled out at all in the op-ed. Just pablum.
* I dunno, but perhaps Tillman didn’t get the memo about Rauner’s policy switch. From ABC7…
“Anyone who wants to see more people going back to work should support lowering the minimum wage,” John Tilman, Illinois Policy Institute, said.
* Also, Rauner still hasn’t explained this comment he made in Carbondale on Tuesday…
“We should only do that [reduce the minimum wage by a dollar an hour] in the context of dramatically improving our schools and creating a business environment where everybody’s got jobs so we don’t have such a brutally high unemployment rate.”
Still trying to figure that one out.
* And you gotta love this quote by Sen. Kirk Dillard…
Dillard called Rauner’s idea to lower the rate “political suicide.”
“Being as wealthy, a multi, multi- millionaire as he is, shows he is out of touch with regular Illinoisans,” Sen. Dillard said.
OK, well, then how “out of touch” is a candidate who wants the “marketplace” to set the minimum wage instead of the government? He’s getting a total pass on this issue so far from the media.
* Here’s some much-needed context from the Economic Policy Institute…
When describing who would see a raise if the minimum wage were increased, it is important to look at everyone who earns between the current minimum wage and the proposed new one, as well as workers earning just above the new minimum wage (who would likely also see a small pay increase as employers move to preserve internal wage ladders). The typical worker who would be affected by an increase in the minimum wage to $10.10 per hour by 2015 looks nothing like the part-time, teen stereotype: She is in her early thirties, works full-time, and may have a family to support. Our analysis of workers who would benefit from an increase in the minimum wage shows:
* The average age of affected workers is 35 years old;
* 88 percent of all affected workers are at least 20 years old;
* 35.5 percent are at least 40 years old;
* 56 percent are women;
* 28 percent have children;
* 55 percent work full-time (35 hours per week or more);
* 44 percent have at least some college experience.
Claims that mostly teenagers would see a raise if the minimum wage were increased are sometimes based erroneously upon the official Bureau of Labor Statistics data on workers who are earning the federal minimum wage or below—i.e. workers earning exactly $7.25 per hour or less. These data do not provide an accurate picture of who would see a raise if the minimum wage were increased because they exclude all workers from the 19 states with higher state minimum wages, along with all workers making slightly above the current federal minimum wage but below the proposed minimum, all of whom would see a raise if the minimum wage were increased.
* From the DGA…
Democratic Governors Association Communications Director Danny Kanner today issued the following statement regarding billionaire Bruce Rauner’s attempt to explain away his plan to cut the minimum wage in Illinois:
“They say a gaffe is when a politician tells the truth. In the case of Bruce Rauner, he showed his true colors when he said that Illinois’ minimum wage needs to be cut. Only a right-wing billionaire would think it’s right to take thousands of dollars a year from working people who live on the brink of poverty. Forget his insincere apology today - the real Bruce Rauner would force thousands of Illinoisans into poverty if he had the chance, and voters won’t soon forget.”
Will voters forget?
…Adding… CTU President Karen Lewis analyzes…
In an interview with the Sun-Times, Lewis, who calculated that at $7.20-an-hour, Rauner made more money in one second than what he proposed minimum wage earners should make in one hour, accused Rauner of now changing his tune because of politics.
“It made him look really insane. So he had to pull this back,” Lewis told the Sun-Times on Wednesday. “It played badly, so his handlers told him to change that. I think people need to understand this is who he really is.”
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