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Moody’s revises worst in the nation job projections

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* The projection by Moody’s Analyticals that Illinois ranked 50 out of 50 in likely 2014 job growth has brought critics out of the woodwork. The firm, however, has revised its projection and moved Illinois up ten spots, to 40th. Still lousy, but at least it ain’t the worst in the freaking country. An e-mail from Moody’s to the governor’s office..

The state moved up 10 spots like we discussed, with the 2014 projection for Illinois job growth increasing from 1% to 1.2%. When it comes to the job market, slower healing in housing and government is primary reason Illinois has lagged behind during the economic recovery. In terms of the job market, industries such as construction, finance and state/local government have significantly underperformed whereas other industries have performed in line with the nation. Construction, finance and state/local government made some progress in 2013 but it was limited and in the near-term they will continue to be a drag on the state’s relative performance.

As for the better forecast and improved ranking in January, this reflects (1) stronger than anticipated economic data toward the end of last year, including leading indicators that suggest momentum is strong entering into 2014, (2) limited fall-out from the federal government shutdown and the agreement by lawmakers to reverse some of the spending cuts under sequestration over the next two years, (3) better performance of manufacturing and the fact that strengthening private sector demand should lessen the need to trim inventories by curtailing output. Since pension reform was assumed in the forecast its passage did not directly impact the forecast, though it does reduce downside risk in the outlook.

  22 Comments      


Question of the day

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Illinois Radio Network has a piece about where the GOP candidates stand on Amtrak funding

Rutherford, the state treasurer who is in a four-way Republican primary for governor, said it’s ridiculous for the government to prop up an outfit which makes customers wait in gravel parking lots for trains which are four hours late.

“Until they can get those trains to run on time, I don’t see having any good government money going to it without a great deal of accountability,” Rutherford said in a public broadcasting debate in Peoria.

State Sen. Kirk Dillard (R-Hinsdale) has supported Amtrak but echoed Rutherford’s concerns: “If the trains don’t get there, it doesn’t mean that they need to run faster. Yes, Amtrak’s vital, but it needs to perform better.”

Financier Bruce Rauner says the passenger rail system is part of a big, important picture. “To the degree we don’t have the money to invest,” Rauner said, “we should form creative public-private partnerships to help finance investments in our infrastructure so it’s world class.”

* The Question: Your thoughts on state Amtrak funding?

  55 Comments      


Today’s quotable

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Bruce Rauner

“We’re being bombed every day by [Pat] Quinn, by the Democrats, by Republican opponents, by the establishment, but that’s OK,” Rauner told the group. “They’re trying to throw mud but it’s not going to stick. I’m very proud of the fact they are attacking because leaders take arrows. I’m happy to take arrows.” […]

“Things are going really well,” Rauner said. “They’re going so well that now we’re being bombed every day. People don’t talk about much of anything else. They just attack us. That’s a sign that we’re winning. Our message is scary to the career politicians.” […]

“They’re trying to spin me as being anti-union. I’m not anti-union,” he said. “I’m anti-conflict of interest. It’s the government unions, when they can bribe the politicians to give them free health care. Give them bigger pensions. Give them more pay … It pushes up our taxes and drives businesses out of our state.”

  54 Comments      


Pension lawsuit roundup

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Tribune

The union coalition also contends the pension law is a violation of the state constitution’s contracts clause and breaches another constitutional provision — the so-called takings clause — which prevents a person’s private property from being taken away for public use without “just compensation.”

As part of the “takings” argument, the unions raise the issue of the legal theory of consideration. They counter that provisions in the new law that reduce the current employee contributions to their pensions by 1 percentage point and allow pension systems to file suit to ensure state government pays its proper share for retirement are inadequate and were never agreed upon.

The lawsuit alleged the changes foisted upon public employees are “substantial and will grow in magnitude over the course” a person’s retirement, a point that underscores why the new law is “unconstitutional and unfair.”

By way of example, the lawsuit highlighted the cases of 25 active and retired government workers. One was Chicagoan Lee Ayers, who has worked about 25 years as a clinical lab technician at a state university and expects to get an initial pension of $53,366 when he retires in 2019. Under the new law, he would lose more than $218,000 if he spends 25 years in retirement, the lawsuit contended.

In contrast, the new law lowers the regular pension deduction from his paycheck by 1 percentage point. That means he’d get to keep an extra $3,733 before he retires — a major difference from what he’d give up, according to the court papers.

* Lee Newspapers

The 55-page suit notes the plaintiffs have “faithfully” contributed to their pension systems during their tenure with the state.

“Unfortunately, the same cannot be said of the state,” the lawsuit notes. “The state chose to forgo funding its pension systems in amounts the state now claims were needed to fully meet the state’s annuity obligations. Now, the state expects the members of those systems to carry on their backs the burden of curing the state’s longstanding misconduct.”

“Misconduct” is a pretty harsh word.

* WBEZ

Tuesday’s lawsuit comes on the heels of other similar lawsuits that the Illinois Attorney General’s office has asked be consolidated into one case to be heard in Cook County. But the We Are One Illinois coalition filed its case in Sangamon County, home to Springfield, the state Capitol, and thousands of public workers.

The difference in location could prove significant in the outcome of the case. House Speaker Michael Madigan takes credit for negotiating the compromise and putting the needed votes on the bill for approval. Critics of the law express concerns about whether the suit could come before a Cook County judge who has connections to Madigan, who also serves as the chairman of the state’s Democratic Party.

The case is expected to eventually be argued in front of the Illinois State Supreme Court.

* Bloomberg

The case was assigned to Sangamon County Circuit Judge Peter C. Cavanagh, according to the court’s electronic docket. Running unopposed as a Republican, Cavanagh was elected to a six-year term in 2010, according to Sangamon County voting records.

* ABC7

Legal experts agree the case filed Tuesday in a Sangamon County Circuit Court will eventually find its way to the Illinois Supreme Court. The litigation certainly will take months, perhaps more than a year.

* Crain’s

“This landmark law was urgently needed to resolve the state’s $100 billion pension crisis,” said Mr. Quinn in a statement. “We expect it to be upheld as constitutional.”

Said a spokeswoman for Senate GOP Leader GOP Christine Radogno, “We are hopeful the court will move expeditiously so that we can stabilize the systems for the participants and save taxpayers.” Though unions are unhappy, the law will cut taxpayer payments more than 40 percent over the next three decades, she added.

And from Mr. Cullerton: “I supported (the law) to break the political impasse between the Senate and House, (and) to send a test case to the courts.”

* Sun-Times

By contrast, Rutherford is not a believer in the law that passed the House and Senate and that Quinn enacted into law. In a brief interview Tuesday, the treasurer said he believes it’s unconstitutional and that pension reform of any sort should be negotiated with the unions.

“We anticipated this latest lawsuit by the We Are One Illinois coalition regarding the new pension law,” Rutherford said in a prepared statement. “We will now wait and see how the Supreme Court rules.”

  51 Comments      


SOTS preview

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Everybody’s gonna be at the Statehouse SOTS address today

Quinn’s Democratic challenger anti-violence activist Tio Hardiman, who has worked in Chicago for years, confirmed he’d attend. All four Republican candidates will listen in person, three of which are public office holders: State Treasurer Dan Rutherford and state Sens. Kirk Dillard and Bill Brady. Bruce Rauner, a venture capitalist, will also attend.

* Here’s some of what they’ll hear

Quinn has refused to say if he supports extending the tax hike or putting in place some other money-raising measures, and he’s expected to avoid the topic until he delivers his budget address Feb. 19. Instead, the governor will use Wednesday’s speech to unveil a number of voter-friendly initiatives, including several aimed at job creation and helping small businesses.

The governor will propose slashing the fee for filing as a limited liability company from $500 to $39, according to an aide familiar with the governor’s plans. The state’s fee is among the highest in the nation, and the idea is to let business owners spend the money on getting off the ground instead of paying for bureaucracy.

Quinn also will issue an executive order to create a new position in his office that will focus on ways to improve the climate for small businesses in Illinois, including ways to streamline regulations, aides said.

The proposals may be aimed at blunting some of the blowback Quinn has experienced from business interests over his push to raise the state’s minimum wage from $8.25 an hour to $10. He first unveiled the idea during last year’s State of the State, but it gained little traction. The governor may be hoping for an election-year boost this time around as Obama also has pushed a federal increase.

* Sneed

Watch for Gov. Pat Quinn to propose an ambitious early childhood education initiative in his 2014 State of the State address in Springfield on Wednesday.

In the wake of recent pension reform and marriage-equality legislation, Sneed is told Quinn wants to up the ante from proposals for universal access to pre-K education.

“The governor’s initiative will call for a more comprehensive approach starting before birth,” said a source. “It will include increasing access to prenatal care, which is pivotal to ensuring the healthy birth and development of a child.”

◆ Added the source: “You want to reduce crime and create more jobs? You want to drive down the dropout rate? You want to help more people get college degrees? It all starts with early childhood education − birth to five − and the governor believes this must be the critical focus over the next five years.”

  5 Comments      


*** UPDATED x1 *** Schilling: “Genocide is not a right”

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Former GOP Congressman Bobby Schilling is pretty darned hardline on abortion, as this recent fundraising e-mail clearly shows…

Radical pro-abortion groups, including EMILY’s List—one of my opponent’s top financial contributors—are fighting to not only protect abortion, but to grow the abortion industry by leaps and bounds. Apparently claiming 1.2 million lives each year isn’t enough. EMILY’s List is fighting to increase access to third-term abortions, strike down parental notification laws, and increase taxpayer funding for abortion.

Folks, when you stop and think about it, EMILY’s List is downright disgusting. Their agenda is designed to promote young teenage girls getting third-term abortions paid for by the taxpayers without the parents ever finding out. That’s as radical as radical gets, and my opponent has pledged to stand with them on each and every issue.

EMILY’s List previously put me “on notice” because of my strong record on life, and that’s a badge of honor I wear proudly! Sorry, EMILY’s List, but genocide is not a right.

I stand with the unborn. I oppose all taxpayer-funded abortions, and I will continue to do everything in my power to protect life.

In liberty,

Bobby Schilling

P.S.-My opponent has received hundreds of thousands of dollars from the radical pro-abortion lobby. Will you help us defeat her this November? Let’s stand for life together. Please chip in $25 to our campaign today!

Freshman Democrat Cheri Bustos’ campaign circulated the Schilling e-mail to their own e-mail list with a fundraising request: “Chip in $3 or whatever you can to help Cheri fight back against the nonsense and do what’s right for Illinois.”

Obviously, we can expect another rough and tumble race.

*** UPDATE *** From the Schilling campaign…

Hi Rich!

I saw your post on the pro-life e-mail we sent out last week.

I wanted to clarify Bobby’s position on the abortion issue. He is steadfastly pro-life. He also supports the “exceptions” — rape, incest, and when the mother’s life is at risk.

However, Cheri Bustos is incredibly extreme on abortion with no exceptions. Bustos has received hundreds of thousands of dollars from EMILY’s List. Last year she voted against the Pain Capable Unborn Child Protection Act, fighting to ensure that the government continues to subsidize abortions after 20 weeks.

Bustos highlighted the word “disgusting” when we were referring to EMILY’s List’s radical agenda.

So that begs a few questions:

Does Cheri Bustos think third-term abortion is not disgusting?
Does Cheri Bustos really believe parents shouldn’t be involved in their teenager’s crisis pregnancy?
Does Cheri Bustos really believe a baby isn’t alive at eight or nine months?
And does she support legalized, subsidized abortion up until the last week of the pregnancy?

These are simple questions she could answer. So far she has refused to. If she supports no exceptions, how is she anything but a radical pro-abortion extremist?

Jon Schweppe
Communications Director
Bobby Schilling for Congress

  108 Comments      


Stock prices and the SOTS

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Based on a recent study, you might wanna call your broker and buy some stock in Illinois-based companies this morning. Crain’s

The study looked at 388 state of the state speeches between 2002 and 2010, along with data on 5,271 publicly traded firms, including 211 in Illinois. Software called Diction 6.0 counted the positive and negative words in the speeches and scored them for net optimism, certainty and activity.

“The results show that firms that are located in a state where the governor gives a more optimistic speech are more likely to significantly increase investment and employment, and experience higher abnormal returns, relative to similar firms located in a neighboring state,” the study concluded.

In 2005, for example, former Gov. Rod Blagojevich’s state of the state speech scored 26.45 for net optimism, twice the nine-year average for all speeches nationwide. Illinois stocks beat the market by 1.59 percent that week, according to the study. In the 2010 election year, Mr. Quinn’s speech scored only 6.61 for net optimism, and the state’s stocks fell 0.5 percent.

The study controlled for variables such as the size of companies, the health of a state’s economy and even the possibility of media leaks before the speeches — leaving the speech itself the only variable.

“I was really surprised by the results,” said Larry Fauver, another co-author and associate professor of finance at University of Tennessee in Knoxville. “Most people are skeptical. I’m comfortable saying the correlation is 100 percent.”

The market react was supposedly even stronger in election years.

Discuss.

  8 Comments      


Drilling down into the OR

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* Let’s revisit Greg Hinz’s interview of Bruce Rauner’s about convicted influence peddler Stu Levine…

“I didn’t have ‘a relationship’ with Levine. I didn’t know him,” Mr. Rauner told me. “I didn’t interact with him. What I’ve been told is that he was an employee of a company in which we had a minority interest.”

In further comments over our tea, Mr. Rauner said GTCR’s ownership in the medical-services company that employed Mr. Levine varied from 5 percent to 40 percent, depending on the time. Two other GTCR officials — not him — served on the board of the firm, he said. And the medical services firm was one of scores owned by GTCR at the time, all of which had a number of highly paid officials, he said, though I doubt too many people at just one firm made $300,000 a year.

* OK, first of all, let’s go to the April, 1999 SEC filing when the Compbenefits company was bought

It is anticipated that immediately after the Merger the following individuals and entities will beneficially own the number of shares of common stock and the number of shares of Convertible Preferred Stock of the Surviving Corporation shown in the following table.

The table shows that two GTCR funds were slated to own slightly over 40 percent of the new company’s stock. So, you’d think that Rauner’s firm would be looking at the company’s numbers pretty darned closely.

* A few months after that April, 1999 SEC filing, Rauner said this to the Wall Street Journal

“We spend a lot of time living with our companies on a week-to-week basis, understanding what’s going on, and being in the flow of information, so we can be helpful and knowledgeable about the operation. That’s a challenge for public investors. That’s where credibility and consistency and reputation counts for so much.”

* And this is where it gets interesting. Greg Hinz doubted yesterday that “too many people at just one firm made $300,000 a year.” Turns out, he was absolutely right.

Another 1999 SEC filing shows executive compensation at the medical-services company bought by Rauner’s firm.

According to that filing, the medical company’s CEO made $250,009 in 1998, the year before the merger. The company’s president and COO made $215,000 plus about ten grand in “other compensation.”

* In other words, Stu Levine’s $25K per month contract meant he was making more than the CEO and COO the year before the merger.

And yet, somehow this escaped Rauner’s notice.

As former TRS executive director Jon Bauman told Hinz, “On one hand, GTCR was one of four owners in a company that was one of maybe 80 to 100 in (its) portfolio. On the other, limited partners pay general partners (like GTCR) a good fee to know what’s going on in their portfolio companies and to be accountable for them. I’m missing the accountability here.”

* But, even so, other partners were in charge of the acquisition, and GTCR does have a whole lot of companies in its portfolio, so maybe Rauner really didn’t know. But it’s just a bit more difficult to take him at his word with this new information.

  60 Comments      


*** LIVE *** STATE OF THE STATE AND SESSION COVERAGE

Wednesday, Jan 29, 2014 - Posted by Rich Miller

* You can watch the State of the State address here or here. Our friends at BlueRoomStream.com will have live Democratic react at about 1 o’clock here, and live GOP react about the same time here. The Senate is convening a little early today, and you can watch its session beginning at 11 o’clock here. I’ll also probably post videos in our constantly updated ScribbleLive coverage

  16 Comments      


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Wednesday, Jan 29, 2014 - Posted by Rich Miller

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Rauner talks Levine

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* After months of waiting, Bruce Rauner finally talked with Greg Hinz about his employment of convicted influence peddler Stu Levine

When asked this by his opponents at a candidate debate earlier this month, Mr. Rauner said he “didn’t know” Mr. Levine at the time — Mr. Levine wasn’t indicted on federal corruption charges until a year later — and that GTCR got the work strictly because it produced good returns.

“I didn’t have ‘a relationship’ with Levine. I didn’t know him,” Mr. Rauner told me. “I didn’t interact with him. What I’ve been told is that he was an employee of a company in which we had a minority interest.”

In further comments over our tea, Mr. Rauner said GTCR’s ownership in the medical-services company that employed Mr. Levine varied from 5 percent to 40 percent, depending on the time. Two other GTCR officials — not him — served on the board of the firm, he said. And the medical services firm was one of scores owned by GTCR at the time, all of which had a number of highly paid officials, he said, though I doubt too many people at just one firm made $300,000 a year.

Mr. Rauner added one other thing: Mr. Levine’s original hiring by the medical firm predates GTCR’s acquisition of the company by at least a year, he said. If that’s true, it strengthens his case that Mr. Levine wasn’t fixing things for GTCR. But Mr. Rauner said he does not have access to the actual Levine hiring contract, which was extended by a company that no longer exists. Nor could he provide a copy of Mr. Levine’s departure agreement in 2004 or 2005 — after Mr. Levine was indicted on federal corruption charges — or say whether Mr. Levine received any financial settlement.

Asked whether he played the Illinois political game with Mr. Levine and others in getting pension work, Mr. Rauner replied that GTCR would make its pitch “to the staffs of the pension funds. . . .We did not interact with the board members.”

* But former TRS executive director Jon Bauman had this to say

“Clearly, no one disclosed the (Rauner/Levine) relationship at the appropriate time,” Mr. Bauman emailed me. “On one hand, GTCR was one of four owners in a company that was one of maybe 80 to 100 in (its) portfolio. On the other, limited partners pay general partners (like GTCR) a good fee to know what’s going on in their portfolio companies and to be accountable for them. I’m missing the accountability here.”

After being against the Rauner company’s investment offer, Levine voted for it at the next meeting.

  27 Comments      


Gay marriage law “work of the devil”

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* Springfield Bishop Thomas Paprocki was interviewed recently about his exorcism in response to the new gay marriage law

Paprocki told LifeSiteNews that people in today’s permissive society seem to think that hate is associated with not letting people get “what they want.”

“Any good parent will tell you that sometimes you have to discipline your children. Sometimes you have to say ‘no’. Sometimes you even have to punish.”

“When a parent does those things, they’re not being hateful towards their children, they’re actually being very loving by correcting them and showing them the right way to do things,” he said. […]

“We just have to understand that we are going to be facing a lot of opposition and as I said, my whole point for doing the prayer service is realizing it’s the work of the devil that’s behind this.”

* Video

  45 Comments      


Question of the day

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* Bruce Rauner is to ____ what Gov. Pat Quinn is to ____?

  63 Comments      


Illinois Republicans issue “reality check” ahead of SOTS

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* The unions aren’t the only groups trying to spoil Gov. Pat Quinn’s State of the State address tomorrow. The Illinois Republican Party has tossed in its two cents…

State of the State: 2014

Rhetoric vs. Reality: Gov. Quinn’s failed record on jobs

2010 SOTS:

Quinn Rhetoric: “I think the number one issue in Illinois today is getting our economy back on track.”

“Our mission this year is to revive our economy and put people back to work”

REALITY: To date, compared to when Gov. Quinn took office in 1/2009, Illinois has lost 93,137 jobs, the number of unemployed is up 36,892, the labor force is down 56,245, and the jobless rate is up from 8.0% to 8.6%, the third-highest of any state.[1]

2011 Budget Address:

Quinn Rhetoric: “We must be a state that has a dynamic, growing economy.”

“We are creating jobs.”

REALITY: At that time, from 1/2009 to 1/2011, Illinois had lost 111,050 jobs, the jobless rate had risen from 8.0 to 9.4, and the Illinois labor force shrunk.[2]

2012 SOTS:

Quinn Rhetoric: “In the past three years, we’ve worked together to strengthen our economy and make Illinois a better place to do business”

REALITY: At that time, from 1/2009 to 1/2012, Illinois had lost 78,762 jobs under Gov. Quinn, the jobless rate had risen from 8.0 to 9.1, and the Illinois labor force shrunk.[3]

2013 SOTS:

Quinn Rhetoric: “In the last four years, we have created jobs, invested in our public works, and enacted major reforms.”

REALITY: At that time, from 1/2009 to 1/2013, Illinois had lost 29,068 jobs under Gov. Quinn, and the jobless rate had risen from 8.0 to 9.0.[4]

Quinn Rhetoric: “Fortunately, thanks to President Barack Obama, we now have the Affordable Care Act, which will improve the health of the people of Illinois and create thousands of jobs.”

REALITY: ObamaCare enrollment in Illinois[5] is only 1/5 of the way to its goal[6], and Illinoisans are signing up slower than the national rate.

Illinois has enrolled only 1 out of every 210 people, or 0.47 percent of the population,[7] compared to the national rate of 1 out of every 146 people, or 0.69 percent of the overall population.[8]

The 61,111 Illinoisans who have signed up for ObamaCare is less than 1/3 of the 185,000 Illinoisans who have received cancellation notices because of ObamaCare… so far.[9]

  21 Comments      


Pure, unadulterated comment bait

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* Jason Plummer discusses his Metro East strip mall

“Since we purchased Monticello Plaza we’ve probably added about 12,000 square feet of new space with tenants who are opening and operating; we’ve signed another 30,000 square feet that we have signed leases on, but they’re not open yet,” said Midwest Asset Group owner Jason Plummer. “It’s good, but we’ve been fortunate to work with the village of Godfrey; it’s a great community.”

Pizza World and Russell Cellular, a Verizon store, occupy a new building added to the Monticello complex. Pizza World, owned by franchisee Dave Stafford of Godfrey, opened last week; Russell Cellular will open Monday. Each will have a ribbon cutting and grand opening in February.

Also opening next month at Monticello’s main and existing building is LAG Gaming, owned by Scott Hampton, and next door to the video game store will be a second location for Complete Supplements, owned by Matt Hamman, which has a Maryville store. A few months ago Apex, a physical therapy business, opened next door to the antique mall in Monticello.

Republican Illinois gubernatorial candidate Bruce Rauner officially opened his campaign office Saturday at Monticello Plaza with a grand opening in the afternoon when he spoke to the public. Rauner is a businessman from Chicago.

I’m told that Plummer donated the office space to Rauner’s campaign.

Have at it, kids.

  68 Comments      


Topinka, Cross and both their Democratic opponents endorsed by Equality Illinois

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* From a press release…

The Equality Illinois Political Action Committee (PAC) today issued its endorsements for candidates running for statewide office in Democratic and Republican primaries in the March 18, 2014, primary election. All the endorsed statewide candidates have strong records supporting lesbian, gay, bisexual, and transgender (LGBT) issues, particularly regarding the freedom to marry. […]

Endorsements were based on answers to Equality Illinois PAC’s endorsement questionnaire, personal interviews, community input, and, where applicable, incumbent candidates’ voting records on important LGBT issues.

* The list…

For Governor:
Pat Quinn (Democrat)

For Attorney General:
Lisa Madigan (Democrat)

For Secretary of State:
Jesse White (Democrat)

For Treasurer:
Michael Frerichs (Democrat); Tom Cross (Republican)

For Comptroller:
Sheila Simon (Democrat); Judy Baar Topinka (Republican)

Discuss.

  6 Comments      


Open for business

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* The last two Saturday evenings, we were stunned to see that the parking lot was empty at the popular Ross Issac restaurant. After the second time, I turned the truck around and pulled up to the building. A posted sign said they were working on some equipment problems, but didn’t indicate a target reopening date.

Ross Isaac is an incredibly popular restaurant for Statehouse types, even if it is outside “the sandbox.” I like the place a lot and it has won at least one Golden Horseshoe.

* This morning, I received an e-mail from Sean Keeley, the chef/owner of the restaurant…

We had it rough last week getting things ready to reopen last night. There were rumors that we were closing for good, and I was hoping you could let your readers know we are excited to be back. I would greatly appreciate that so much, and I’d be happy to have you in to try some of the new items. We have a new menu and are planning our first Sunday brunch as well!

Thanks so much and take care, Sean Keeley

That’s a relief. And, finally, a decent brunch in Springfield. Great news all around.

And there’s no need to “have me in,” Sean. I’ll go on my own accord, and very soon. Maybe tonight. I’m pretty curious about the new menu.

* By the way, now that we’re on the topic of Springfield restaurants, I forgot to post the winner of our Golden Horseshoe Award for Best Political Restaurant in Springfield after voting ended. The winner was Sebastian’s, with Maldaner’s taking runner-up.

  7 Comments      


This just in… We Are One Illinois Coalition files pension lawsuit

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* From a press release…

We Are One Illinois Coalition files suit to overturn “pension theft” law

The union coalition We Are One Illinois and a group of active and retired public employees filed suit today in Sangamon County Circuit Court to overturn pension-slashing Senate Bill 1 (Public Act 98-599). Defendants in the suit are Governor Pat Quinn, other constitutional officers, the state retirement systems and their boards.

“Our suit makes clear that pension theft is not only unfair, it’s clearly unconstitutional,” said Illinois AFL-CIO President Michael T. Carrigan. “Teachers, nurses, emergency responders, and other workers and retirees will not stand by while politicians try to take away their life savings illegally. The legislature and governor shirked their responsibility to uphold the constitution, so we are seeking justice in court to right their wrongs. Promises must be kept, and the rule of law must prevail over politics.”

We Are One Illinois Coalition members include the Illinois AFL-CIO; Illinois Federation of Teachers; Illinois Education Association; American Federation of State, County and Municipal Employees (AFSCME) Council 31; Service Employees International Union (SEIU) Local 73; Illinois Fraternal Order of Police State Lodge; Illinois Police Benevolent and Protective Association; Associated Fire Fighters of Illinois; Illinois Nurses Association; Laborers’ International Union of North America Local 2002; Teamsters Local 700; and Teamsters Joint Council 25.

SUMMARY

The We Are One Illinois lawsuit argues that the “pension theft” law violates the pension clause of the Illinois Constitution, which unequivocally states that a public employee’s pension is a contract that the state cannot diminish or impair.

Public employees and retirees “have upheld their end of that constitutionally-protected bargain,” the suit argues. It continues:

    “Those Plaintiffs who are current employees teach our children, care for the sick and disabled, protect us from harm and perform myriad other essential services for Illinois and its citizens. Those Plaintiffs who already have retired similarly dedicated their careers to the men, women and children of Illinois. And, each faithfully has contributed to his or her respective pension system the substantial portion of their paychecks the Illinois pension code requires.

    “Unfortunately, the same cannot be said of the State. The State chose to forgo funding its pension systems in amounts the State now claims were needed to fully meet the State’s annuity obligations. Now, the State expects the members of those systems to carry on their backs the burden of curing the State’s longstanding misconduct. Specifically, Public Act 98-0599 unlawfully strips from public servants pension amounts to which they otherwise are entitled as a matter of law, let alone fundamental fairness.

    “That is the very threat against which the Pension Clause protects.

    “The Governor and the members of the General Assembly took an oath to uphold the Constitution. They acknowledge that other options exist to remedy the State’s knowing failure to adequately fund the State’s pension systems. But rather than work to remedy the impact of the State’s conduct in a manner that comports with their oath, complies with the Illinois Constitution and upholds the State’s constitutional promise to pension system members, the Governor and General Assembly unlawfully look the other way.

    “Plaintiffs thus turn to this Court for protection and commence this action to defend their constitutionally-protected rights and protect the pensions they have earned. Plaintiffs request that the Court declare Public Act 98-0599, in its entirety, unconstitutional, void and unenforceable.”

CLASS ACTION

The coalition’s filing seeks to certify a class action representing all individuals, active or retired, who first contributed to the State Employees Retirement System, the State Universities Retirement System, or the Teachers Retirement System before January 1, 2011.

The suit’s 25 named plaintiffs representing the class are:

    Lee Ayers of Chicago, a clinical lab technician at a university medical center for approximately 25 years;
    David Behymer of Rushville, a retired teacher who taught art to children ranging from pre-school to high school for 30 years;
    Christine Bondi of Ontarioville, who has worked for the Illinois Secretary of State for approximately 28 years as a public service representative and administering driving tests;
    Monica Butts of Westville, a cashier with the Secretary of State for more than 12 years;
    Gary Ciaccio of Kankakee, who for 33 years has worked for the Illinois Department of Human Services, caring for people with mental health issues or developmental disabilities;
    Edward Corrigan of Pontiac, who retired after approximately 20 years as a correctional officer at an Illinois prison;
    Michael Day of O’Fallon, a high school history teacher for 20 years;
    Kenneth Dugan of Pesotum, an Air Force veteran and former state trooper who retired after serving nearly 30 years as a firefighter for the University of Illinois at Urbana-Champaign fire department;
    Jennifer Edwards of Chicago, who retired after approximately 30 years in various positions at the University of Illinois at Chicago, including assistants to the History Department chairperson and the head of the Department of Pediatrics;
    Elaine Ferguson of Nauvoo, a retired teacher who taught kindergarten and first grade for more than 30 years;
    Denise Funfsinn of Mendota, a special education teacher for 29 years;
    Terri Gifford of Springfield, a health and physical education teacher for approximately 30 years;
    Gwendolyn Harrison of Springfield, who has helped citizens find information for 14 years as a librarian for the Illinois Secretary of State;
    James Herrington of Fairview Heights, a high school and college math teacher for 35 years;
    Marlene Koerner of Herrin, a retiree who taught for more than 30 years;
    Gary Kroeschel of Chatham, who has served as an information systems analyst for approximately 14 years;
    Ellen Larrimore of Chicago, a library specialist for the past seven years at Northern Illinois University;
    J. Todd Louden of Good Hope, who for nearly 30 years served in the Western Illinois University police force;
    Stephen Mittons of Sun River Terrace, who is a child protection investigator and has worked for the Illinois Department of Children and Family Services for approximately 19 years;
    Jose Prado of Willowbrook, who has worked as a correctional officer and sergeant in an Illinois state prison for 15 years;
    James Sheridan of DeKalb, who has served as a maintenance worker at Northern Illinois University for 13 years;
    Thomas Tate of Salem, a nurse who for 34 years has served in the Illinois Department of Human Services caring for individuals with developmental disabilities;
    D’Ann Urish of Springfield, a special education teacher who has spent 31 years educating middle school students with behavioral and learning disorders;
    Caryl Wadley-Foy of Bradley, who retired after 32 years as a secretary in a state residential facility for individuals with developmental disabilities; and
    Julie Young of Owaneco, an 11-year employee of the Secretary of State.

VENUE

The suit was filed today (Tuesday, Jan. 28) in the Circuit Court for the Seventh Judicial Circuit, Sangamon County, Springfield, Illinois. Sangamon is home to thousands of class members, as well as the state capitol and offices of the statewide officeholders and retirement systems named as defendants. Two of the three previously filed suits on this subject matter have been filed in Sangamon County as well.

STAY OF IMPLEMENTATION

In order to prevent irreparable harm to public employees and retirees who face immediate and irrevocable life decisions, and to avert unduly burdensome administrative complications for the state retirement systems, We Are One Illinois strongly believes that the pension-cutting law must not be implemented before its constitutionality is decided in court.

Consequently, the union coalition has sought for the past several weeks to reach agreement with the state Attorney General and the named defendants on a joint request to the court to enjoin the law’s implementation. Regrettably, the Attorney General refused. In its filing, We Are One Illinois reserves the right to seek an injunction.

The full lawsuit is here.

  57 Comments      


Here we go again

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* From a Bruce Rauner press release…

More Pension Problems

- Crisis Caused by Springfield Career Politicians Continues -

After touting a pension plan that allegedly saved the state $160 billion over thirty years, newly released bond documents expose major shortcomings in the overall scope of the new pension law.

Not only does the pension plan save $15 billion less than was promised, but the documents also reveal the shaky foundation upon which the entire plan is built. According to the filing, a fraction of the projected savings occur in the first 10 years of the 30 year plan.* The other projected savings are heavily back-loaded.

“This pension plan continues to look more and more like other plans crafted by Springfield insiders that appear good on the surface, but fail over the long term and make real reform harder,” said Mike Schrimpf, spokesman for Bruce Rauner’s campaign. “Like the 1994 pension plan that kick-started the pension crisis, the new law is shortsighted, unrealistic, fails to fundamentally reform the system and could make things even worse.”

According to the Chicago Sun-Times, the SEC cited the 1994 pension bill as the “primary driver” of the pension crisis.

“The politicians running for governor have all been in Springfield for the last two decades and played a major role in causing the pension crisis,” Schrimpf added. “It’s clear that career politicians are unwilling to shake up Springfield and won’t ever truly fix the pension system.”

“No wonder they also refuse to condemn the attempts by Pat Quinn and his allies to hijack the GOP primary,” Schrimpf said. “They all take money from the government union bosses and are part of the broken system of politics in Springfield.”

Pat Quinn Government Union Contributions
- More than $4.5 Million

Kirk Dillard Government Union Contributions
- More than $450,000
- Seeking endorsement from Illinois Education Association
- Seeking SEIU endorsement

Dan Rutherford Government Union Contributions
- More than $50,000
- Seeking endorsement from Illinois Education Association
- Seeking SEIU endorsement

Bill Brady Government Union Contributions
- More than $15,000

  40 Comments      


No traction

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* Maybe it’s because this Tribune story appeared a few days before Christmas, or maybe because the Tribune is no longer an AP member its stories aren’t being picked up by other papers like they used to, but it’s fascinating to me that this piece has gained absolutely zero traction

State Sen. Bill Brady’s homebuilding business has been sued twice for defaulting on loans worth millions of dollars since his last run for governor, including one case playing out in court as he seeks the 2014 Republican nomination.

Brady has built his political career in part on the success of his family’s Bloomington-based real estate development business, and he blames the recession that battered the housing market for the financial troubles that emerged as he launched his bid to unseat Democratic Gov. Pat Quinn in 2010.

The family business has continued to struggle. Just weeks before the March primary election, Brady is due in court in Bloomington for a status hearing on a $2.38 million loan default lawsuit filed against him, his brothers and several of their development companies after they failed to make good on a series of loans.

Last year, Brady resolved a $1.7 million default case in Champaign County Circuit Court by selling some of the mortgaged properties to a campaign contributor.

* Bill Brady and his family build houses. The national economic collapse wiped out a whole lot of home builders.

In May of 2011, just 726 single family housing building permits were issued in the entire state of Illinois. Things have improved a little, but not much. Just 1,011 permits were issued last May. Take a look, for instance, at this new report on “zombie properties” in Cook County to see how bad things still are.

So, I don’t really fault him for his family company’s troubles. Frankly, it’s even a little amazing to me that his company remains a going concern.

* And maybe that’s what’s really behind the lack of publicity here. Things sometimes happen to businesses that cannot ever be controlled by the businesses themselves. And if that’s the case, is this really an issue?

  25 Comments      


A look back

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* This week marks the fifth anniversary of the Illinois Senate’s vote to remove Rod Blagojevich from office. Kurt Erickson looks at what has changed

Construction: During his six years in office, Blagojevich and the legislature were unable to agree on a way to pay for a job-creating road, bridge and school construction program. Within a year of his departure, Quinn and the legislative leaders had devised a plan to legalize video gambling and raise taxes and fees on booze and motorists. The money has paid for not only better roads, but new copper doors on the Capitol.

Taxes: Blagojevich was true to his word when he said he would never support raising taxes. But that meant he had to use sleight-of-hand budgeting techniques — like tapping into pension funds — to finance his pet programs. His actions, as well as those by chief executives who came before him, left the state in a precarious fiscal position. Within two years of his ouster, a temporary increase in the income tax was approved.

Pensions: After balking for years, lawmakers last month finally approved an overhaul of the state employee and teacher pension systems. Although it likely won’t save any money while it winds its way through the court system, passage of the changes showed the General Assembly and Gov. Quinn were finally starting to figure out how to make tough decisions.

New laws: While Blagojevich was in office, his signature achievements included the expansion of a health insurance program for kids and an increase in the minimum wage. Since Quinn came on board, the state has legalized medical marijuana and gay marriage, approved new worker compensation rules and offered up some guidelines for a controversial oil and gas drilling process that will: a) create thousands of jobs; b) ruin the environment; c) or, do some of both.

Prisons: After years of listening to Blagojevich threaten to close prisons, Quinn actually did it. The governor moved inmates out of the Tamms super-max facility and the all-female Dwight Correctional Center, as well as closed juvenile prisons and a handful of halfway houses. The closures confounded many observers because they came at a time when the prison system is grossly overcrowded.

* I put together a retrospective video a year after his arrest. It’s probably worth another look

Man, I do not ever want to relive anything even close to that madness.

  41 Comments      


Some stuff to ponder

Tuesday, Jan 28, 2014 - Posted by Rich Miller

* For a moment, let’s backtrack to yesterday, when Bruce Rauner and his three opponents were slamming each other over the upcoming anti-Rauner TV ad blitz financed at least in part by organized labor. This was Sen. Bill Brady’s retort to Rauner

Brady noted that union groups opposing Rauner in the primary are made up of members of both parties.

“Mr. Rauner fails to recognize that there are many union members — in both the public and private sectors — who are Republicans, who are disgusted with the failures of Pat Quinn, and who want to make sure their party nominates the best candidate to turn Illinois around,” he said in a statement.

* That’s not a bad point, although it is a little weird seeing the 2010 “right to work” proponent sounding so “moderate” on union members these days.

Here are some numbers to consider as well…

* Total Republican ballots cast in the 2010 gubernatorial primary: 767,485

* Illinois union membership, 2013: 851,000

In other words, there are far more union members in this state than Republican primary voters.

* Meanwhile, the Jacksonville Journal Courier doesn’t like the idea of unions meddling in the GOP primary

But does an attempt to drum up support against a particular person — one who has the potential to present an election-time threat to a candidate with union support — cross the line?

At some point it becomes less a matter of trying to steer an election and more a case of trying to hijack it.

Rauner’s campaign says it has already crossed that line and has blasted the initiative.

“Local Republican leaders and grassroots activists aren’t about to let Pat Quinn’s allies subvert the Republican primary, and neither should any of the other candidates running for governor,” said Rauner’s campaign manager, Chip Englander.

It’s understandable unions are uneasy. They have been bruised by a few of the decisions made over pensions and other matters last year and are closely examining some candidates’ anti-union stances. It makes sense they would be selective about where to cast their support and the flurry of dollars that will follow such a pronouncement.

Resorting to schemes that undermine the opportunity of all voters to have an equal voice in the election process is over the line, though, and has potential to harm public sentiment toward unions more than any political candidate could.

  60 Comments      


Protected: SUBSCRIBERS ONLY - Supplement to today’s edition, crosstabs and a roundup

Tuesday, Jan 28, 2014 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Tuesday, Jan 28, 2014 - Posted by Rich Miller

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* Isabel’s afternoon roundup (updated)
* SUBSCRIBERS ONLY - Fundraiser list
* Feds approve Medicaid coverage for state violence prevention pilot project
* Question of the day
* Bost and Bailey set aside feud as Illinois Republicans tout unity at RNC delegate breakfast
* State pre-pays $422 million in pension payments
* Dillard's gambit
* Isabel’s morning briefing
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* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
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