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Friday, May 16, 2014 - Posted by Rich Miller

* Willie

I’ve been insane on a train
But I’m still me again
And the place where I hold you is true

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An interesting development

Friday, May 16, 2014 - Posted by Rich Miller

* RxP Illinois, which is pushing a bill to allow psychologists to receive extra training and supervision so that they could prescribe medication. The group sent this e-mail to its supporters today

We are hearing from legislators that they are concerned by the number of psychologists calling in opposition to SB 2187. Please make some time to give your Representative(s) another call in the Springfield office today or early next week. They will be in Springfield every weekday until they adjourn for the summer.

If you have social worker, counselor, or nurse colleagues who are supportive of SB 2187 or have neighbors or friends who are supportive and have not called yet, please ask them to do so also. We need to keep making the point that many more psychologists and associated professionals and citizens are supportive of SB 2187 than are opposed.

I’m not sure yet if those are organized phone calls or not, but check out the comments under a recent op-ed by Sen. Don Harmon, the bill’s main Senate sponsor. You’ll see quite a few comments by opponents who say they’re psychologists.

  15 Comments      


Question of the day

Friday, May 16, 2014 - Posted by Rich Miller

* House Speaker Michael Madigan confirmed today that Gov. Pat Quinn will address the House Democratic caucus on Monday

Quinn will reportedly talk about his tax hike extension plan, among other things.

* The Question: Top talking points the governor will use to convince House Democrats to vote to permanently extend the income tax hike?

It’s Friday, so have fun.

  43 Comments      


Today’s numbers: 4 million and 20,000

Friday, May 16, 2014 - Posted by Rich Miller

* If true, that’s almost a third of the state’s population

Approximately 4 million people in Illinois currently have some type of arrest or conviction record that would show up on a routine background check, said Anthony Lowery, director of policy and advocacy with the Chicago-based Safer Foundation, an organization focused on reducing recidivism rates.

“You may find a few employers who may understand the need for providing second chances, but the majority of employers don’t,” he stressed. “This has been a long-standing battle over the years to just level the playing field [and] provide people who show that they’ve rehabilitated their lives the opportunity to just work. I think the simplicity of work is the most direct link to reduce recidivism, saving taxpayers in this state millions of dollars in the associated costs of incarceration.”

Illinois already prohibits state agencies from asking about criminal history on initial government job applications. Job applicants no longer have to check a box on state employment applications indicating whether they have pled guilty to or been convicted of any criminal offense other than a minor traffic violation.

* On to our second number

Under the Juvenile Court Act, both arrest and court records for juveniles in Illinois are confidential and sealed. That sounds pretty off-limits. So why should people have to spend time and money to expunge juvenile records, if they’re already protected? […]

These are jobs in which the application form will typically include a request for authorization to run a background check. Once a prospective employer sees that, “even while you may figure that these records are sealed and you don’t have to worry about them,” Hamann said, “there’s a whole number of exceptions where it’s within their right and it’s commonplace for them to consider juvenile arrest records.”

He says that includes the Chicago Park District and many government jobs. […]

In 2013 there were about 26,000 juvenile arrests in Cook County. A little over 20,000 of those were arrests that never led to formal criminal charges. Now, bear in mind that juvenile records can’t be expunged until a person turns 18. So each year you have people in the pipeline, coming of age, who are eligible for those expungements. But as you see in the chart above, in 2013, there were only 660 juvenile records expunged in all of Cook County.

  38 Comments      


Credit Unions – Individual service, united in focus

Friday, May 16, 2014 - Posted by Advertising Department

[The following is a paid advertisement.]

As not-for-profit financial cooperatives, credit unions hold a strong belief in giving back to their communities at the credit union level and on a geographic basis. Twenty-four chapters unite the state’s 333 credit unions and are integral to fulfilling their mission for nearly three million consumer members. Like the boards at credit unions, chapter boards are also run by volunteers. The Illinois Quad Cities Chapter alone serves 10 credit unions and their 234,000 members in a three county area. Similarly to other credit union chapters, Illinois Quad Cities is particularly active in community charitable activities and worthwhile causes. This includes helping consumers protect their personal information by sponsoring community shred days to properly dispose of documents. The chapter also hosts “community nights” to provide local organizations a forum to request financial support. As a result, more than $15,000 has been provided to a variety of local charities. Motivated by their stories, credit unions separately hold fundraisers to support these groups, as well participate in events for others, including the local children’s hospital. Members know credit unions will be there for their daily financial needs and support their community – just some of the many virtues that define the credit union difference.

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Rant of the week

Friday, May 16, 2014 - Posted by Rich Miller

* Fox 32 reports on the often contentious appropriations bill debates yesterday

The Illinois House was voting all day, and sent one appropriations bill after another to the State Senate. However, angry Republicans, and several suburban Democrats, complained that the Democratic majority is spending money the state doesn’t have.

They had signs asking, “Temporary?”

It was a mocking reference to the state income tax increase that is scheduled to roll back next January.

* One of the signs

* But the Democrats did have a response

Democrats, however, say Republicans only want to criticize, and haven’t put forth a plan of their own.

Representative Jay Hoffman (D-Swansea) says he searched for the Republican budget everywhere. He even asked his dog.

“And I said, ‘Willie, did you eat the Republicans’ plan?’ But he wouldn’t do that to you, he’s a good dog, he would never eat your plan,” he said. “You know what your plan is? Your plan is to not have a plan.”

Regardless of what you think of the debate, Hoffman’s full speech was hilarious. Our good friends at BlueRoomStream.com isolated it for me last night, but their live video host livestream.com has been down since late last night. I asked Amanda Vinicki at WUIS if she could post a copy of Hoffman’s entire rant. Listen to the whole thing

Heh.

  28 Comments      


*** UPDATED x1 *** This Is Illinois

Friday, May 16, 2014 - Posted by Rich Miller

*** UPDATE *** AP

The 16 flights cost a total of about $7,400. This is the first year of a three-year program that’s largely funded by federal dollars.

[ *** End Of Update *** ]

* Scott Reeder

Our cash-strapped state government has found a new use for its fleet of aircraft – flying birds into Illinois.

I kid you not.

State aircraft are flying to Kansas and transporting prairie chickens back to the Land of Lincoln.

And at a time state lawmakers are looking at raising the state income tax, Illinois state employees have been hiking across Kansas trapping these chickens.

Talk about fowl fiscal deeds.

State pilots have flown between Illinois and Kansas not once, not twice but 14 times this year taking prairie chickens to downstate Jasper and Marion counties.

“Illinois is the Prairie State and prairie chickens are an endangered species here, so we thought it would be a good idea to bring them back,” said Scott Simpson, site manager for Prairie Ridge State Natural Area in Newton, Ill.

The feds are chipping in $337,000 toward the program and the state will pay $117,000. Some of the cost to state government may be offset by private fundraising done by the Audubon Society, Simpson said.

* The AP has the state’s response

Illinois Department of Natural Resource spokesman Chris Young says the greater prairie chicken is a threatened species. He says the state started a program this spring to bring the chickens to the Prairie Ridge State Natural Area near Effingham to increase their dwindling population. Young says the Kansas chickens are needed to improve genetic diversity. The state has brought about 90 chickens to Illinois on multiple flights.

Young says hunting and fishing license fees along with private donations pay the rest.

* And we’re getting the birds from more states than just Kansas. From Minnesota Public Radio

In the past few years, several hundred Minnesota chickens have been captured and relocated to help rebuild populations in North Dakota, Illinois and Wisconsin. There’s even talk of moving Minnesota birds to Texas to help save a cousin, the Atwater Prairie Chicken.

Missouri is also getting threatened birds from Kansas, but they’re driving the birds, not flying them.

  65 Comments      


AG Madigan files responses to pension lawsuits

Friday, May 16, 2014 - Posted by Rich Miller

* Attorney General Lisa Madigan responded yesterday to the multiple lawsuits filed against the pension reform law. The Tribune’s Rick Pearson has a very good story about her arguments

In arguing to uphold the law, Madigan’s office contended that since 2000 and the subsequent recession, the state’s underfunding of the pension systems “contributed significantly to a severe financial crisis…that adversely affected the long-term financial soundness of those retirement systems, the cost of financing the state’s operations and outstanding debt, and the state’s abilty to provide critical services to Illinois residents and businesses.

“Although the systems have been underfunded for many years, their underfunding now greatly exceeds the state’s annual budget for all categories of expenditure, including, without limitation, public education, public health and safety, medical coverage for the poor and for current and retired public employees, road construction, repair and maintenance, and all other public services provided by state employees,” the attorney general’s response to the challenges said. […]

The state’s response also argued that a significant driver of the unfunded liability, annual 3 percent compounded cost of living adjustments on retiree pensions, was not a “core benefit” that would be protected by the state constitution.

The law “is a permissible exercise of the State of Illinois’ reserved sovereign powers (sometimes referred to as the State’s police powers),” Madigan’s response said, adding that those challenging the statute “cannot sustain their burden of establishing that (it) is unconstitutional.”

* Here are AG Madigan’s four five responses…

* We Are One lawsuit

* ISEA lawsuit

* Doris Heaton et al vs. TRS

* State University Annuitants Association vs. SURS

* ADDING: RSEA lawsuit

  88 Comments      


Another cart before the horse

Friday, May 16, 2014 - Posted by Rich Miller

* I’m assuming that we’ll be hearing more about this in the not too distant future. From yesterday’s approp bill debates, here’s a choice nugget from the Sun-Times

Republicans also injected some election-year politics into the debate, focusing on the federal investigation of Gov. Pat Quinn’s now-disbanded Neighborhood Recovery Initiative and asking whether anti-violence spending tucked into some of Thursday’s budget bills represented a continuation of that botched 2010 program.

In one instance, Rep. Jeanne Ives, R-Wheaton, zeroed in on a mysterious $15 million grant program for at-risk communities that Democrats inserted in the state Department of Labor budget with little to no explanation of its purpose.

“Can I have the criteria for qualifying for this grant program?” Ives asked Arroyo, who sponsored that spending bill, as well.

After a brief back and forth with Ives, Arroyo answered, “We’ll develop the program after we pass this budget.”

“You cannot make this stuff up,” Ives shot back in disgust. “I hope people are watching. This is appalling. This sickens me.”

I gotta agree with Ives on this one. Bad move.

* And speaking of the NRI, this is from the Senate Republicans…

The Legislative Audit Commission will begin its review of the NRI audit at a meeting scheduled for May 28, 8:30am. We anticipate Auditor General Bill Holland will present the audit, the findings and the recommendations before taking questions from Commission members. If time permits, the Audit Commission will hear from Jack Cutrone, CJIA head, as well.

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House budget roundup

Friday, May 16, 2014 - Posted by Rich Miller

* Reuters

Democratic lawmakers pushed dozens of fiscal 2015 appropriations bills through the Illinois House of Representatives on Thursday over protests largely from Republicans that the money does not exist to pay for higher spending.

The bills for the budget that takes effect July 1 were based on Governor Pat Quinn’s preferred spending plan that calls for making permanent higher income tax rates that were put in place in 2011 and are scheduled to partially expire on January 1. But instead of voting first on the taxes, Democratic House Speaker Michael Madigan decided to start with appropriations.[…]

At the beginning of Thursday’s marathon budget session, House Republican Leader Jim Durkin said that the budget process was taking the wrong turn.

“We are voting today for an unconstitutional budget, plain and simple,” he said.

* Illinois Issues

The plan approved [yesterday] was largely based on Gov. Pat Quinn’s budget proposal, which calls for an extension of the current income tax rates. The rates are scheduled to begin stepping down in the second half of next fiscal year. The plan would increase spending for K-12 and higher education, as well as human services. The spending includes several line items specifically requested by Quinn, including increased funding to the Monetary Assistance Program (MAP) for low-income college students, additional funding for maternal and early childhood health programs, money to turn two shuttered youth centers into special treatment centers for mentally ill and substance addicted adult inmates and raises for home health care workers.

Still, the plan would not fully fund General State Aid to schools. GSA has been prorated for the last three years. The legislation passed today would fund GSA at 90 percent. Some Republicans argued that if there is going to be a tax increase, more of the money should go to education. The line item for transportation would be funded at 83 percent. “We’re spending more money than at any time in history and the question is where is the money? Cause it doggone sure is not in education,” said Rep. Chad Hays, a Catlin Republican. “Where is the money? This process doesn’t add up.” Lewiston Democratic Rep. William Davis, who is chairman of the House K-12 education budgeting committee, said that K-12 education would be getting a bigger chunk of revenue than other areas of the budget. “Tell me someone in this chamber who doesn’t run on some education platform—that they support education and want to see it fully funded? I think we all agree on that. But I think the reality is that there are always some limitations. We don’t have an unlimited pot of resources that we can use.”

* Daily Herald

On scores of votes, state Reps. Sam Yingling of Grayslake, Marty Moylan of Des Plaines, Anna Moeller of Elgin, Stephanie Kifowit of Aurora and Deborah Conroy of Villa Park voted “no.” The five could face tough Republican opponents in November.

“It’s irresponsible to vote for a budget with a fictional income source,” Yingling said in a statement.

And Moylan said he’s opposed the tax extension and therefore couldn’t vote for a budget that relies on its money.

Other Democrats who have had competitive races in the past — state Reps. Michelle Mussman of Schaumburg, Fred Crespo of Hoffman Estates, Elaine Nekritz of Northbrook and Kathleen Willis of Addison — voted “yes” on the budget.

* SJ-R

Among those voting for most of the bills was Rep. Sue Scherer, D-Decatur, who previously said she is against extending the temporary tax hike and even co-sponsored a bill in 2013 to immediately eliminate the tax increase. The bill never came to a vote.

Scherer received substantial financial support from House Speaker Michael Madigan, D-Chicago, both in her first election campaign in 2012 and again this spring in the primary election during which she successfully fended off a challenge from Gina Lathan of Springfield.

Scherer said Thursday her votes for the budget do not indicate she will vote to extend the temporary income tax increase.

“My feeling has not changed,” Scherer said. “There’s not been a single vote taken today about taxes. I know there are people trying to say this is a tax vote. This is a budget vote, which is not an annual financial report. It’s a budget vote.”

* Illinois News Network

“I’ve been visited a lot today by people who know the extension is going to be very vital for social services, hospitals; they’ve all contacted me,” state Rep. Daniel Beiser, D-Alton. “What I’m trying to do right now is I’m trying to figure out what’s best for my district. … What if we don’t extend the tax? What’s going to be cut in my area? Because I don’t need one more job cut in my area. I don’t need anything else closed. I’m going to take all of that into consideration and I’m going to do what’s best for my district.”

His view was echoed by state Rep. Mike Smiddy, D-Hillsdale.

“We have two and a half weeks left in the session to look at whether or not people want to keep the … tax increase that was put into effect three years ago,” he said. “I think we could’ve done things a little bit differently. I’m a freshman down here and whatever they decide to do, I have to make the best of and make my decisions on how I would like to vote.”

* Sun-Times

In a late development Thursday filled with political intrigue, House Speaker Michael Madigan, D-Chicago, invoked a rare parliamentary maneuver that blocks the spending bills from being sent to the Senate, keeping them under House control. […]

The day offered no clarity on whether House Speaker Michael Madigan, D-Chicago, was making any headway toward reaching the necessary 60 House votes from his 71-member caucus to keep the temporary income-tax increases from rolling back in January. At one point Thursday, the Capitol Fax political blog estimated that Madigan’s headcount stood at a mere 53.

“He hasn’t given me a number, but I think we’re a decent ways away,” Madigan spokesman Steve Brown said late Thursday, when asked how far his boss had to go to reach the 60-vote threshold.

That estimate was made before the votes were clear yesterday. Subscribers know more.

* Also

House Speaker Michael Madigan has filed a motion that will effectively prevent the more than 70 budget bills passed today from automatically going to the Senate. Madigan told the Chicago Tribune that the move was needed in case the House wanted to further amend the bills.

* WUIS

There are other possibilities: there are murmurs of meeting in the middle; instead of keeping the tax rate where it is or letting it drop to 3.75 percent, choose a number in between.

Other lawmakers say Illinois could come up with more cash by closing so-called corporate loopholes, or reducing the portion of state taxes shared with cities and towns. The problem is, neither of those ideas would match the amount of money Illinois would rake in through a higher income tax.

Which leaves Democrats scrambling to herd their members.

* The typical taxpayer is forking over about $1,100 more this year as a result of the tax hike, according to government numbers crunched by the AP

Number of Illinois taxpayers: 5.99 million

Average taxable income: $55,000

2014 average state tax liability at 5 percent: $2,750

Average liability at 3 percent rate: $1,650

Average liability at 3.75 percent if tax is rolled back: $2,062

Average reduction with the rollback: $688

* From House GOP Leader Jim Durkin’s press release…

Leader Durkin has sent a letter requesting an Attorney General opinion regarding the constitutionality of an appropriation of public funds in a state budget, where the appropriations listed in the budget exceed the funds estimated by the General Assembly for that fiscal year.

House Democrats are expected to pass further budget bills next week and the total spending number is expected to climb and could reach a record high of $38 billion before adjournment.

* And there was also this quite harsh press release from Democratic freshman Rep. Sam Yingling…

State Representative Sam Yingling will once again assert his independence by voting against a State budget proposal promoted by Democratic leadership in the Illinois House. The series of budget proposals are based on the assumption that Illinois’ temporary income tax increase will be extended or made permanent, something Yingling staunchly opposes.

“It’s irresponsible to vote for a budget with a fictional income source,” said Yingling from Springfield, “I will fight against the income tax increase and it would be illogical, hypocritical, to vote for a budget on a premise I believe is the wrong direction for taxpayers.” […]

“I was elected to fight the status-quo, no be part of it. My area has among the highest property taxes in the County, asking people to pay more is beyond comprehension.”

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*** UPDATED x2 - Ives, Madigan in testy exchange *** Madigan moves non-binding minimum wage referendum to committee

Friday, May 16, 2014 - Posted by Rich Miller

* Sun-Times

House Speaker Michael Madigan plans Friday to push a plan to ask voters this fall to decide whether Illinois’ lowest-earning workers deserve an increase in pay. […]

Madigan’s legislation is posted for a Friday morning hearing in Springfield. Brown said a floor vote on the measure likely will come next week. […]

As much as Madigan is seeking input from voters on the question, his push also could help spur turnout in the Democratic Party base and help Quinn in what is a tight re-election bid against Bruce Rauner.

The referendum also keeps alive what key Democrats believe is a potent campaign weapon against Rauner, the multimillionaire private equity investor who has waffled on the question of whether to require employers put more in the pockets of Illinois’ lowest wage earners.

* Tribune

Under the measure, voters could voice their opinion on whether the minimum wage in Illinois for adults over the age of 18 should be raised to $10 an hour by Jan. 1. With the first-of-the-year trigger date, the referendum could place the matter on the legislative agenda in the post-election fall veto session, since it’s unlikely to pass before lawmakers go home at month’s end. […]

Democratic Sen. Kim Lightford of Maywood said approval of a referendum could help her bid to pass a minimum wage hike in the Senate, where she believes she is a couple of votes shy of the 30 needed to pass. The idea of a referendum gained currency as Madigan, who doubles as Illinois Democratic Party chairman, and U.S. Sen. Dick Durbin, D-Ill., suggested the issue should go before the general public to build support, Lightford said.

As we’ve discussed before, this is a “win-win” for Madigan and Senate President John Cullerton. They avoid a fight-to-the-death showdown with groups like the Illinois Retail Merchants Association, put Bruce Rauner on the spot by making this a campaign issue and maybe gin up a little turnout in November.

*** UPDATE 1 *** From Dave McKinney…


*** UPDATE 2 *** Both unclear on the concept. Sun-Times

Madigan got into a testy exchange with one Republican on the panel, state Rep. Jeanne Ives, R-Wheaton, who opposes his plan and justified her position from observations she collected as a tax preparer for eight years.

“I can assure you that I have done a number…of tax returns for people at the bottom and when it’s all said and done — when you take into account all the public benefits they’re receiving — they receive an inordinate amount, well over their amount in earned income, in benefits back from the government,” Ives told Madigan. “There is a safety net already in place, and I personally think this is…anti-business.”

Madigan appeared to grow angry at Ives’ statement.

“I don’t think you should use the word ‘inordinate’ when you’re talking about people who are on government benefits. They don’t want to be on government benefits. They want a job where they can earn a living, support their family, live a nice life. So please,” Madigan continued, his voice rising, “don’t use the word ‘inordinate’ when people are on government benefits. They don’t want to have the benefits.”

Madigan missed Rep. Ives’ point. She was talking about the working poor, not the unemployed. Notice Ives mentioned “earned income.”

But Ives also missed the point. Those workers are on government benefits because they don’t make much money. And so those government benefits are acting as a direct subsidy of the businesses which employ workers at sub-par wages and don’t offer full-time employment. Ives is basically arguing to continue that government subsidy.

  61 Comments      


*** LIVE SESSION COVERAGE ***

Friday, May 16, 2014 - Posted by Rich Miller

* The Senate is gone, so it’s just the House today

  1 Comment      


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

Friday, May 16, 2014 - Posted by Rich Miller

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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      


Protected: SUBSCRIBERS ONLY - Supplement to today’s edition

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      


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

Thursday, May 15, 2014 - Posted by Rich Miller

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