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Exelon threats kill clean-energy bill

Thursday, May 15, 2014 - Posted by Rich Miller

* Crain’s

An effort in Springfield to overhaul Illinois’ clean-energy law to jump-start stalled renewable power projects in the state is dead for this legislative session.

The initiative — pursued for more than a year by environmentalists who say the state’s law to require more of the power consumed here to come from clean sources is broken — has stalled. So says state Sen. Don Harmon, D-Oak Park, who has led the negotiations over the issue.

He confirmed the effort died after Exelon Corp., by far the most influential energy industry player in Illinois, threatened earlier this year to close two or three of its six nuclear power plants in the state due in part to subsidized wind farms that it says are dampening power prices and making some of its nukes unprofitable.

The issue, he said, “caused everyone to take a step back.”

* Not long after that story appeared, I received this press release from Speaker Madigan’s office…

A coalition of regional labor leaders, public officials and Illinois House Speaker Michael J. Madigan have won assurances from Exelon to maintain operations at three Illinois facilities for 12 months

“I am happy to confirm that our efforts to preserve jobs in the Quad Cities and Clinton have been successful. The outcome is the result of a concerted effort by labor leaders and elected officials to ensure these families will continue on the job,” Madigan explained.

“When published accounts triggered speculation Exelon might alter operations, I went to work with others to ensure these working families would not be threatened. Today we can report success,” Madigan.

Shifting electricity usage and marketing patterns apparently triggered the speculation and led to discussions that produced the assurances to Madigan.

The Speaker also cited the willingness of Exelon CEO and President Chris Crane to discuss Exelon’s operations and publicly assure the government and labor leaders of the company’s plan. Exelon operates 11 nuclear reactors in six locations. More than 5,300 persons are employed at the facilities.

  11 Comments      


Question of the day

Thursday, May 15, 2014 - Posted by Rich Miller

* Kurt Erickson quotes Speaker Madigan

The powerful Democrat from Chicago chided reporters for suggesting he would be twisting arms in the coming days, saying that’s not how he plans to win support for what amounts to an election year tax increase.

“We’re not in the business of issuing threats,” Madigan said.

He doesn’t need to issue threats. People know what to expect.

* Meanwhile, Greg Hinz

So how seriously should you take Illinois House Speaker Mike Madigan’s proposal yesterday to rein in the state’s main job incentive program, so-called EDGE tax credits?

The answer likely depends on just how many votes the speaker has — or still needs — to pass a permanent extension of the state’s “temporary” income tax hike in the waning days of the General Assembly’s spring session. And on who might be inclined to provide those votes.

According to a variety of well-placed sources, revamping the Economic Development for a Growing Economy credits is one of a series of still-moving pieces on the wider income tax chessboard. Also reportedly in play are a possible cut in the state’s corporate income tax rate, an increase in the earned income tax credit for working families, Gov. Pat Quinn’s proposed $500-a-home property tax “refund,” and a permanent extension of the tax credit for research and development.

* The Question: Will Speaker Madigan pass the tax hike extension? Take the poll and then explain your answer in comments, please.


panel management

  33 Comments      


Unemployment rate down half a point, but big manufacturing losses

Thursday, May 15, 2014 - Posted by Rich Miller

* Halfway decent news for a change. From IDES…

The Illinois unemployment rate hit a new five-year low in April when it fell to 7.9 percent, according to data released today by the Bureau of Labor Statistics and the Illinois Department of Employment Security. More people working pushed the rate down 0.5 points, the lowest since December 2008 and largest monthly decline in the history of this data series which began in 1976. […]

In April 2014, the number of unemployed individuals fell -35,700 (-6.5 percent) to 516,000. Total unemployed has fallen -237,500 (-31.5 percent) since January 2010 when the rate peaked at 11.4 percent. The unemployment rate fell even though preliminary estimates indicate 7,800 fewer private sector jobs in April and 29,300 more jobs than one year ago. The unemployment rate and job creation numbers can move independently of each other because they come from different surveys.

The unemployment rate is in line with other economic touch points. First-time jobless claims have been trending lower for the past four years and at 48,697 in April are 20 percent lower than one year ago. Numbers from the independent Conference Board’s Help Wanted OnLine Survey show Illinois employers in April advertised for more than 200,000 jobs (201,500 seasonally adjusted) and 85 percent sought full-time employment.

Illinois employers added +249,600 private sector jobs since the low point of employment in Illinois. Leading sectors are Professional and Business Services (+114,600, +14.6 percent); Education and Health Services (+55,900, +6.8 percent); and Leisure and Hospitality (+38,000, +7.4 percent). Government (-25,600, -3.0 percent) continues to lead job loss.

* However, Illinois has lost 8,900 manufacturing jobs in the past twelve months, according to IDES, including a whopping 3,500 last month alone.

And while 20,000 new jobs were gained in the professional and business services category during the past 12 months, 7,100 jobs in that category disappeared in April.

  19 Comments      


Tax hike math

Thursday, May 15, 2014 - Posted by Rich Miller

* Remember the 2013 bill I wrote about recently which was co-sponsored by 11 Democrats to roll the income tax hike all the way back to 3 percent? Those co-sponsors were

Martin J. Moylan - Stephanie A. Kifowit - Sam Yingling - Katherine Cloonen - Natalie A. Manley, Deborah Conroy, Sue Scherer, Jerry F. Costello, II, Carol A. Sente, Patrick J. Verschoore and Kathleen Willis

* The Chicago Tribune editorial page dug up comments from individual House Democrats on the temporary tax hike and found five others who went on record against making it permanent

“I would vote to repeal the tax increase. I would not support extending the tax increase.”

— State Rep. Michelle Mussman, D-Schaumburg

“We made a promise to the taxpayers and we should keep to that promise. It was a temporary increase and it should be kept that way.”

— State Rep. Fred Crespo, D-Hoffman Estates

“I do not support extending the increase.”

— State Rep. Kelly Burke, D-Evergreen Park

“I do believe the tax should be truly temporary. We should say what we mean and mean what we say.”

— State Rep. Fran Hurley, D-Chicago

“The tax should expire as planned.”

— State Rep. Frank Mautino, D-Spring Valley

Add in Rep. Jack Franks as a sure “No” vote and newly appointed Democratic Rep. Anna Moeller and that’s 18 Democrats who’ve said publicly that they didn’t want to extend the tax hike.

Madigan has 71 Democrats. 71-18=53. 60 votes are needed for passage.

Of course, Rep. Mautino is a member of Madigan’s leadership team, so I assume some have already flipped.

But the task is most definitely difficult.

  46 Comments      


Budget roundup

Thursday, May 15, 2014 - Posted by Rich Miller

* House Speaker Michael Madigan stated the obvious yesterday

Democrats in the Illinois House began advancing a budget Wednesday that is built on the presumption that the legislature will extend the state’s temporary income tax increase.

House Speaker Michael Madigan, D-Chicago, said setting the spending plan first will “set the bar” and help convince House members to vote for the tax increase.

But Republican House member Dennis Reboletti of Elmhurst said setting a budget, before knowing revenue, is putting the cart before the horse.

“That’s not how a business operates. That’s not how my family operates its budget,” Reboletti said, adding that you don’t buy a new house and “hope to have more money.”

* Madigan had some blunt words for those who believe that passing a budget without the tax hike revenues included could wind up as unconstitutional

Republicans also argued that the math being used by Democrats was unconstitutional, noting the nearly $4 billion shortfall that could result and pointing to a provision in the Illinois Constitution that states “appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.” […]

Madigan dismissed the legal concerns as “fiction,” and Rep. Greg Harris, a Chicago Democrat who chairs the human services appropriations committee, argued that lawmakers must first determine what they want to spend money on before asking taxpayers to pony up for it. He said there were other revenue ideas floating around the Capitol beyond the tax increase, such as the possibility of keeping more of the tax money sent to local towns, though that proposal has failed to gain traction.

* But some top Senate Democrats piled on

“It’s not responsible,” said state Sen. Dan Kotowski, a Park Ridge Democrat and budget committee chairman. “I’d have a very hard time voting for a budget based on revenue that we don’t have.” […]

State Sen. Heather Steans, a Senate appropriations chairwoman who like Kotowski says she can’t support a spending plan without having hard revenue estimates in place, outlined a strategy in which the Senate would wait to act on any House spending plan until it also produced a revenue measure. Cullerton has said for weeks that he’s confident he has the 30 votes needed for a tax increase in the Senate.

“I think we sit on their budget for a period of time and see what happens on the House on the Revenue. Hopefully they will send that over too,” Steans said.

Steans noted, however, that the Senate’s approval of a House budget is no sure thing.

* The end of session clock is ticking loudly, but Madigan said he’s not concerned

“Don’t worry about the deadline,” the speaker said as he walked away. “Don’t.”

* And the Speaker still wants another big budget-buster

Along with backing a change in a business tax incentive program, Madigan said he supports legislation that would cut the corporate income tax rate in half.

“I’m prepared to advance that bill… as part of a balanced package,” Madigan said.

There’ll have to be a whole lot of reworking the numbers if he goes through with that, unless he finds other revenues.

  27 Comments      


New puppy mill proposal emerges

Thursday, May 15, 2014 - Posted by Rich Miller

* As I told you yesterday, the Humane Society decided to drop its efforts to ban pet stores from selling dogs and cats from breeders and require them to sell only animals from shelters. The bill was strongly supported by Gov. Pat Quinn, but they ran into opposition and they’ve considerably reduced the scope of their bill. From their fact sheet…

The Legislation
• Senate Amendment 3 to HB 4056 limits pet stores to purchasing dogs only from breeders who:

    1. Are licensed by the United States Department of Agriculture (USDA);
    2. Have not committed a direct violation of USDA regulations during the previous two years;
    3. Have not committed three or more indirect violations of USDA regulations during the previous two years; and,
    4. Have not received “No Access” violations from the USDA on their two most recent visits.

Promotes the Sale of Dogs and Cats from Reputable Breeders

    • Senate Amendment 3 to HB 4056 does not ban the sale of the dogs and cats by pet stores that have been purchased from breeders.
    • The Amendment simply requires that pet stores only obtain the dogs and cats they purchase for sale from reputable breeders who have not been in serious violation of USDA pet-dealer regulations.

Reasonable Approach

    • Senate Amendment 3 to HB 4056 is modeled after legislation recently passed unanimously in Connecticut.
    • The Amendment would address concerns of closing businesses, as this will not prohibit pet stores from selling puppies as long as they are in compliance.
    • This amendment reduces the likelihood that pet stores obtain their puppies from a puppy mill.

The new amendment is here.

Your thoughts?

  22 Comments      


Ride-sharing regs pass key Senate committee

Thursday, May 15, 2014 - Posted by Rich Miller

* Sun-Times

Two bills advanced together out of committee Wednesday which would regulate ride-sharing companies like Uber and Lyft statewide, much to the dismay of the app-based entrepreneurs involved.

The legislative couple — House Bill 4075 and its trailer House Bill 5331 — passed 11-2 and 13-2, respectively, in the Senate Executive Committee.

“The bill creates regulations and requirements for commercial ride-sharing arrangements or transportation and personal-use vehicle prearranged through a dispatcher for a fee,” said Sen. Antonio “Tony” Munoz, D-Chicago, the bills’ chief Senate sponsor.

HB 4075 moves to the Senate floor while HB 5331, if it passes the full Senate, would go back to the House for final approval, a scenario that Munoz said he’s “100-percent” certain will happen.

In addition to mandating companies provide liability insurance, the combined effect of the bills would divide ride-sharing drivers into two tiers, based on the number of hours they work.

* From ride-sharing company Lyft…

Passing this legislation will place severe limits on Lyft and other ridesharing platforms, drastically decreasing the availability of safe and affordable rides. The bill prohibits ridesharing for cars that are more than four years old, even when stringently insured and background-checked, potentially eliminating 70 percent of Chicago’s Lyft drivers. This provision disproportionately affects lower-income drivers in the Lyft community who have come to rely on ridesharing as an important way to earn extra money to make ends meet.

* But Sen. Karen McConnaughay (R-Aurora) says some insurance regulations were very much needed

“I’m a huge fan of free markets and of Uber itself,” McConnaughay told Illinois Review Wednesday morning. “The core issue for me is how riders and drivers are insured while they’re taking UberX rides. I’m not entirely happy with the bill, but we’ve been working on this and there are problems the bill addresses.”

Uber says they carry a million dollar policy when passengers are in their vehicles, but UberX drivers provide their own private insurance that kicks in when they are not hauling passengers.

“That million dollar policy is to protect the company, not the driver nor the passenger,” McConnaughay said. “You sign a waiver when you sign up for the program. Right now, I wouldn’t want family or friends to get in a vehicle in which they are not insured. If there’s an accident, Uber is off the hook. This legislation addresses that problem.” […]

“There’s no question the taxi industry wanted to eliminate the rideshare programs,” McConnaughay said. “But we worked on the legislation to make changes, and while I’m not entirely happy with the bill, there is a need for insurance requirements to protect consumers.”

Discuss.

  41 Comments      


*** UPDATED x2 - There could be a placard *** Caption contest!

Thursday, May 15, 2014 - Posted by Rich Miller

* Remember this Tribune story?

U.S. Senate candidate Jim Oberweis, who cites his successful push to raise Illinois’ speed limit as the top accomplishment of his first year as a state lawmaker, has been ticketed for speeding 11 times since 1988, according to public records. […]

More than half of Oberweis’ tickets have come since 2003. Many show Oberweis was driving a red Cadillac when he was cited.

* I went to the Conference of Women Legislators’ big annual event last night. It was raining, and almost everybody got wet before the show. But I passed a red Cadillac parked right in front of the hotel in a handicapped parking spot. The Cadillac had no discernible handicapped sticker or placard, but it did have Senate license plates…

House license plate numbers are based on seniority. Senate license plates are based on district numbers. Wanna guess who represents Senate District 25?

He also had a “Dump Durbin 2014″ bumper sticker on the back of the car.

*** UPDATE *** From Dan Curry…

“Senator Oberweis was parking legally in that spot. He has a handicapped placard for a disintegrated disc condition in his back. He sometimes has difficulty standing or walking long distances. Because of this, he isn’t able to walk in parades. He only parks in the handicapped spots when the pain is intense.”

Again, neither I nor the three people I was talking to about this last night while we were hanging out front of the hotel saw any sort of placard.

*** UPDATE 2 *** I went back and looked at the photo more closely. Keep in mind that I looked into his car and didn’t see a placard. Others with me went over and said they didn’t see a placard.

But the Oberweis people seemed so sincere that I took another look at the photo and made it much larger. If you look at the driver’s side front dash you’ll see what could very well be one of those handicapped placards which are supposed to hang from your rearview mirror…

So, I could’ve just missed it in the rain. I dunno.

  154 Comments      


*** UPDATED x1 *** An oppo dump gone wrong

Thursday, May 15, 2014 - Posted by Rich Miller

* I don’t recall ever seeing an opposition research dump attempt backfire so badly

[Mayor Rahm Emanuel’s chief campaign consultant John Kupper] emailed Tribune reporters to suggest several potentially negative stories about [Cook County Board President Toni Preckwinkle. The pitch came in response to a Tribune story Wednesday about Blaine Elementary Principal Troy LaRaviere criticizing Emanuel for trying to silence critics of his education policies. […]

In the email, Kupper included what he called “some story ideas that might actually matter to readers.”

He then offered a list of story ideas, many centering on Preckwinkle’s handling of county government that could present her negatively, some based on rumor.

Oops.

* Kupper eventually fell on his own sword

“This morning, of my own volition and without consulting anyone, I sent what I considered a private email to a couple of Tribune reporters complaining about a story they wrote and what I believe to be generally unfair reporting about Mayor Emanuel,” Kupper said in an emailed statement.

“I regret any discomfort that I have created for Mayor Emanuel, County Board President Preckwinkle or anyone associated with their offices,” Kupper wrote. “From now on, I’ll keep my media criticisms to myself.”

* From David Ormsby’s Facebook page

PR Rule #1 - Nothing is ever off the record.

* Professional opposition researcher Will Caskey responded

Kupper shouldn’t have done that but this is about as newsworthy as if someone tried to blow up my clients based on the times I’ve mouthed off on Rich Miller’s comments sections.

Thoughts?

*** UPDATE *** A source close to Emanuel just called to emphasize Kupper’s point that the consultant acted alone and without anybody else’s prior knowledge.

  34 Comments      


Sangamon County judge blocks pension law

Thursday, May 15, 2014 - Posted by Rich Miller

* Sun-Times

A Sangamon County judge stopped Illinois’ state pension overhaul law from taking effect Wednesday, issuing a stay on the law until the court can rule on its constitutionality.

Two lawyers representing plaintiffs in the case said that Circuit Judge Jon Belz issued the order to stop the pension law that reduces retirees’ benefits and increases their contributions from taking effect this summer. […]

The House author of the changes, Rep. Elaine Nekritz, noted that none of the savings officials expect to reap from the changes are factored into the state budget for this year.

“I would have been shocked had there not been a stay,” the Northbrook Democrat said. “It should have been stayed and we should wait to see frankly what the Supreme Court tells us.”

* SJ-R

“I do think it has led to great confusion … almost across-the-board confusion,” Belz said in a Sangamon County courtroom as he issued a temporary restraining order and preliminary injunction blocking implementation of the law until further action of the court or resolution of the case. “There’s just too much uncertainty.” […]

The attorney general’s office had reached a proposed agreement that was much more limited — to delay for a year implementation of the law for university and community college employees.

But Belz’s ruling went further than that proposed agreement.

Aaron Maduff, a lawyer for the State Universities Annuitants Association, said the proposed agreement had been just “half a loaf” compared to the preliminary injunction issued by Belz.

* Tribune

Judge John Belz recognized the retirees and others in the pension systems could suffer “irreparable harm” if the law is allowed to go forward while the constitutionality issues is still being fought out in the courts, according to his order. The case is expected to wind up in the Illinois Supreme Court. […]

Rep. Elaine Nekritz, a Northbrook Democrat and a pension expert, said she did not think the judge’s ruling would slow down attempts by Cook County to overhaul its retirement systems. But many at the Capitol are feeling what is being called “pension fatigue” following reforms approved for state plans, which the governor signed into law, and some of the city of Chicago plans, which Quinn has not yet said whether he will sign.

* Reuters

Maura Possley, a spokeswoman for Illinois Attorney General Lisa Madigan, who is defending the law, said the ruling was under review.

“The goal of the pension reform law is to stabilize the pension systems. Unfortunately, this decision will likely further burden the systems and hurt taxpayers,” Possley said.

* Full react from the governor’s budget office…

We believe this law is constitutional. This landmark law was urgently needed to resolve the state’s $100 billion pension crisis.

It was also urgently needed to ensure that teachers, university employees and state workers who have faithfully contributed to the pension system have retirement security.

We’re confident the courts will uphold this critical law that stabilizes the state’s pension funds while squarely addressing the most pressing fiscal crisis of our time by eliminating the state’s unfunded pension debt, a standard first set by Governor Quinn.

Today’s stay was not unexpected and will have no impact in this or next year’s budget.

* From We Are One Illinois…

This stays the legislation in its entirety so that the pension systems and other defendants are enjoined from implementing or administering any provisions of the act until further order of the court or the court issues a final ruling on the merits of the act’s constitutionality.

The court found that plaintiffs have shown a likelihood of success on their contention that Public Act 98-599 violates the Pension Protection Clause of the Illinois Constitution.

“This is an important first step in our efforts to overturn this unfair, unconstitutional law and to protect retirement security for working and retired Illinois families,” said Michael T. Carrigan, president of the Illinois AFL-CIO, on behalf of the coalition. “We are pleased the court prudently chose to halt implementation of these sweeping changes, which have caused so much fear and uncertainty and are likely to be overturned.”

Discuss.

  83 Comments      


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Thursday, May 15, 2014 - Posted by Rich Miller

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*** LIVE SESSION COVERAGE ***

Thursday, May 15, 2014 - Posted by Rich Miller

* An early start today for the Illinois House as budget floor votes begin

  2 Comments      


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Thursday, May 15, 2014 - Posted by Rich Miller

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« NEWER POSTS PREVIOUS POSTS »
* Reader comments closed for the holiday weekend
* Isabel’s afternoon roundup
* Jack Conaty
* New state law to be tested by Will County case
* Why did ACLU Illinois staffers picket the organization this week?
* Hopefully, IDHS will figure this out soon
* Pete Townshend he ain't /s
* Open thread
* Isabel’s morning briefing
* Live coverage
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