Republican Bruce Rauner will not say whether he believes it’s fair that as a wealthy businessman, he was able to avoid paying Social Security and Medicare taxes in 2010 and 2011.
The candidate for Illinois governor was asked Friday about a Chicago Tribune report last week. It showed business income-loss tax rules allowed Rauner to pay no Social Security or Medicare taxes in those years despite income of $55 million.
Rauner told reporters in Springfield that “we’ve paid full taxes as appropriate.” Asked whether the exemption is fair to all wage-earners, he said: “We can talk about how we should reform our tax code.” He says that discussion is forthcoming.
All discussions are “forthcoming” with him. It’s his own version of Speaker Madigan’s “It’s under review.” Then again, Madigan usually makes a decision after reviewing stuff.
Whatever the case, changing the state’s tax code would have zero to do with whether he had to pay those two federal taxes. Good question, better dodge.
Republican gubernatorial candidate Bruce Rauner said Friday he’s not ready to make changes to his pension reform plan in the wake of last week’s decision by the Illinois Supreme Court on retiree health insurance premiums.
Speaking after addressing an American Legion convention in Springfield, Rauner said the state’s high court has yet to weigh in on the broader issue of pension reforms approved by the General Assembly last year.
“We should see what the court decides ultimately when they do and we can address things then,” Rauner said. “I believe the right long-term answer is to protect the pensions and not change historical pensions, but for future work to have a different structure that is more of a defined contribution plan.” […]
Asked if he might alter his plan to that only newly hired workers would be put into a 401(k), Rauner said, “We’ll be outlining our detailed plans in the future.”
On July 3, the Illinois Supreme Court found that state constitutional protections for pensions apply to retiree health care subsidies that were cut by the State of Illinois (A3 negative). The decision reversed a lower court’s March 2013 decision and remanded the case to the lower court for further proceedings. The court’s decision is credit negative for Illinois and local governments such as the City of Chicago (Baa1 negative).
The majority of the justices expressed views that run counter to the rationale used in recent pension reform legislation for certain city and state plans. We therefore perceive increased risk that the Illinois Supreme Court will rule the pension reform legislation unconstitutional, which would jeopardize $32.7 billion of pension liability reduction.
The ruling shows that most of the justices have an expansive view of how the pension clause (Article 13, Section 51) should apply to pensioners. The majority opinion states that, “Where there is any question as to legislative intent and the clarity of the language of a pension statute, it must be liberally construed in favor of the rights of the pensioner.” This and other sections of the ruling signal how the court could side with pensioners when it eventually addresses the constitutionality of recent state pension reforms, which have already been challenged, as well as Chicago’s pension reforms, which we expect will be challenged.
The court still may be persuaded by arguments outside the scope of the current ruling, such as the idea that extreme pension funding pressure prevents the state or a local government from providing for public health and safety, a responsibility higher than adhering to pension promises. The ultimate outcome on the state’s pension reforms will remain uncertain until the court rules on their legality directly. In December 2013, the state passed sweeping legislation to address the severe underfunding of its pension systems. The legislation reduced cost-of-living adjustments (COLAs) for employees and retirees in four of the five state pension systems. The legislation also increased state contribution requirements and reduced employee contribution rates. The state’s actuaries estimated that these and other changes reduced accrued liabilities as reported by the three largest pension systems by approximately $21 billion as of June 30, reducing Moody’s adjusted net pension liabilities (ANPLs) for the three largest systems — the Teachers’ Retirement System (TRS), State Employees’ Retirement System (SERS) and State Universities Retirement System (SURS) — by a combined $32.7 billion, or 17%.
In May, a lower court judge barred the state from implementing its reforms until lawsuits challenging the changes were resolved. The matter will almost certainly be appealed to the state Supreme Court, no matter the outcome in the lower court.
New “All-Gender” signs will be replacing the “Family” signs outside of single stall restrooms at ISU.
Michael Shane McCreery, director and ethics officer in the Office of Equal Opportunity, Ethics and Access, said the idea for the new signs came from Sandy Colbs, the director of the Student Counseling Services.
Colbs posted a picture of the new restroom sign on Facebook and McCreery thought it was a great idea.
McCreery said he did some research and found that other universities were making the same transition.
For example, Illinois Wesleyan University made similar changes about a year ago. […]
Only single stall restrooms will be impacted: one in the Bone Student Center, one in Student Counseling Services and a couple throughout the dormitories.
McCreery said he does not anticipate more than 10 restrooms being affected.
* It all seems rather innocuous. I mean, transgendered folks could use them before, families can still use them, heck, you or I could use them. But Fox News freaked out…
* They were so creeped out by this that they eventually followed up. Fox guy Steve Doocy did a live shot outside the studios with people he claimed were “Fox friends”…
The updated signage will include a symbol of a half-man and half-woman, which has Doocy and company pretty confused and unsettled. The hand-picked crew of “Fox fans”? Not so much.
When Doocy asked a boy if he “would have any idea” what the symbol meant, the youngster suggested it might indicate a “family restroom.”
An older man next to the boy agreed.
“I could see that,” he said.
At that point, confident that he had planted the seeds for some righteous indignation, Doocy explained the moral deterioration at Illinois State University.
“See, they were designated as ‘family restrooms’ in the past and now, apparently, they’re going to be known as ‘all-gender’ restrooms,” Doocy explained.
“Does that make sense?” he asked a woman.
It did make sense.
“Restrooms for both genders,” she said cheerily.
Doocy was persistent.
“That’s right. Bathrooms for both genders, or transgenders,” he said, turning to a man in a Pittsburgh Pirates T-shirt. Surely, he shares Doocy’s mixture of confusion and anxiety!
“Transgender, that’s right,” the man replied dully.
Even for those as angelic as newborns, few messages are as intimidating as, The U.S. Department of Justice would like information from you. Imagine the widespread angst, then, as federal prosecutors intensify their look at, and around, Gov. Pat Quinn’s defunct Neighborhood Recovery Initiative. That’s the botched anti-violence program on which Quinn, just before the 2010 general election, committed $54.5 million in public money.
Last Friday the Tribune reported that a federal grand jury has subpoenaed emails of key players in NRI, as it was known, including its former head and two former ranking members of Quinn’s administration. And on Wednesday we learned that the Department of Justice has requested a 90-day delay before Illinois lawmakers question seven former Quinn aides who have been subpoenaed to testify next week.
But Republican lawmakers said Thursday that they expect next week’s two-day hearing of the bipartisan and bicameral Legislative Audit Commission to proceed — and they expect the seven witnesses to obey the subpoenas.
What’s odd about the Justice request for state lawmakers to stand down is that it didn’t come from prosecutors, as has been customary in other investigations. Instead it came by phone to Illinois House and Senate lawyers from Justice’s Office of Legislative Affairs in Washington, D.C. That’s a liaison and lobbying office, not an office that typically has interjected itself into criminal cases here. What’s more, Justice is merely requesting a 90-day delay in legislative questioning, not pursuing legal action to demand that.
On Thursday a Justice official in Washington did get around to sending a letter to leaders of the Legislative Audit Commission. The letter requests that the lawmakers “refrain from conducting interviews or receiving testimony from any individuals” in connection with the anti-violence program: “… As we explained during the call, there is an ongoing related federal criminal investigation, and we believe such interviews and testimony during this (90-day) time period would pose substantial risks to our investigation.”
Various federal prosecutors, past and present, cautioned us Thursday not to draw conclusions about where the feds are focused: maybe on recipients of money, maybe on how the program functioned, maybe on something else. For a variety of reasons, including the absence of any crime, federal investigations sometimes lead to … nothing at all.
It looks like they were leading up to something - that maybe the Justice Department request was somehow tainted - then got talked down by “federal prosecutors, past and present.” I only mention that because of this tweet from an editorial board member yesterday…
This story of #DOJ intervening into audit commission hearing/Quinn NRI program gets weirder by the minute.
The paper didn’t take a stand on whether the hearings should actually proceed.
Anyway, I had four posts on this issue yesterday and I didn’t really see anything in today’s coverage to warrant another one today, so let’s do this instead…
* The Question: Should the Legislative Audit Commission defer to the US Department of Justice and postpone any questioning of those under subpoena for 90 days?
Bonus Question: Should the Commission postpone all such testimony until after the election?
Take the poll and then explain your answer in comments, please.
* From the Quinn campaign’s “Your Weekly Rauner Roundup”…
Posh Parking
But, at least Billionaire Bruce doesn’t have to go hunting for parking at one of his downtown luxury residences.
Today the Chicago Sun-Times is reporting that he forked out $100,000 for an “extra” parking spot at one of his umpteen cribs. That’s a bit more expensive than Mitt Romney’s $55,000 car elevator.
What’s more, the ridiculous parking space was purchased as an extra to the penthouse he purchased to claim Chicago residency and use clout to get special treatment at an exclusive public school.
$100,000 for parking? All in a half-day’s work for Billionaire Bruce.
Look, I fully understand why they’re trying to paint Rauner as a rich guy who can’t understand everyday people. And, who knows, maybe this parking spot will actually resonate. Lots of people didn’t pay that much for their house, let alone a parking spot.
But with this little gem, we’ve gone way beyond the legitimate issues with Rauner’s taxes and business practices and ventured into a pure “OMG!!! He’s soooooo rich!!!!” rant.
A museum consultant who has been reviewing Abraham Lincoln Presidential Library and Museum operations since last September has concluded that a lack of planning is hampering the institution.
Karen Witter, former associate director of the Illinois State Museum and now an independent museum consultant, made those and other findings detailed in a 44-page report sent to museum and Illinois Historic Preservation Agency officials late last month. […]
She said that loss of staff, vacancies in key positions and the overall state budget situation have created additional pressure on the remaining staff, a deficiency cited by library advisory board chairman J. Steven Beckett in his call for divorcing the library and museum from IHPA. […]
She said the library and museum’s lack of a strategic plan causes multiple problems for the organization.
“There is no unifying set of priorities across the various entities involved with the ALPLM,” she wrote. “There is no strategic direction to address staff shortages and financial resources. There is no clear set of priorities to guide staff activities and allocation of time in accordance with the highest strategic priorities.”
* But that’s barely scratching the surface. Illinois Times…
Witter questioned the expertise of staff and found that vacancies in key positions, particularly the lack of a director of education and a director of exhibits, are hindering the institution. ALPLM also lacks a state historian to oversee the research and collections department. IHPA director Amy Martin has said that the hiring process is underway and that filling those positions is a priority.
“There are many talented staff members with diverse and relevant experience, but fewer people with the museum experience and expertise which are essential for an institution of the scope and caliber of the ALPLM,” Witter wrote. “There is not a culture of supporting ongoing professional development to provide staff members training in museum best practices and other relevant issues.”
The foundation, which sells memberships that come with free admission to the institution, must pay a fee to IHPA each time a member visits the museum. Witter found tension due to a perception that foundation memberships are costing the ALPLM revenue it might otherwise realize from paid admissions.
“The membership program is perceived to be ‘the Foundation’s’ program that benefits the Foundation rather than ‘our’ program, which benefits the overall ALPLM institution,” Witter wrote. “There are missed opportunities for engaging members. It appears the Foundation plans member events, and the ALPLM plans public programs/events independently of each other. … The requirement for the Foundation to pay a fee to the state each time a member visits the museum is highly unusual. It appears to create a disincentive for the Foundation to encourage members to become repeat visitors, which is contrary to practices in other museums where members are encouraged to visit frequently.”
The payment arrangement fuels a “yours vs. mine” situation, Witter wrote, and would probably be “perceived negatively” by outside reviewers tasked with evaluating ALPLM for accreditation.
Un-freaking-real.
* Back in 2010 evaluators from the American Association of Museums found many of the same problems as Witter. But…
“There is little evidence that ALPLM has followed up on the valuable recommendations and resources referenced in the report,” Witter wrote in a summary of shortfalls.
These warring factions appear to be frozen in place, and it ain’t a good place, either.
“The three boards (IHPA, foundation board and library advisory board) operate relatively independently from each other and aren’t aligned around a common vision and shared strategic priorities,” Witter wrote. “(T)here is not a shared understanding of the roles and responsibilities of each entity.”
Oy.
* I took a friend to the museum a few months ago. We’re in the midst of the Civil War’s sesquicentennial, but you’d never know it if you were at the museum. The missed opportunities with that alone make me wanna tear my hair out. The NY Times has an excellent day by day blog about the Civil War. With the amount of material at the library, the museum could’ve highlighted the war month by month with artifacts, documents, photographs, etc. already in its collection. But, no. They took a pass.
It’s mind-boggling to me why those people can’t get their acts together over there. Stop fighting over the state’s crown jewel before you ruin it, folks.
Americas PAC has just released a new radio ad running across Illinois highlighting the wage gap between men and women working on Dick Durbin’s Senate staff.
Americas PAC Chairman Tom Donelson said, “Dick Durbin likes to talk about the Republican war on women, but how can he talk of a war on women when he doesn’t even pay his female staffers the same as the men?”
Analysis of Senate Staff payroll by the Washington Free Beacon found that in 2012 Durbin “paid men $13,063 more, a difference of 23 percent.” [Link http://freebeacon.com/politics/senate-dems-betray-lilly/]
“The average female on his staff was paid about 77 cents for every dollar earned by his male staffers,” Donelson said.
In 2014, after two years of supposedly championing equal pay for women, a follow-up report by the Free Beacon found that “The average female salary is $11,505 lower than the average male salary in Durbin’s office.” [Link http://freebeacon.com/politics/men-average-11505-higher-salary-than-women-in-dick-durbins-senate-office/]
President Obama’s White House has a wage gap problem as well. [Link http://www.washingtonpost.com/politics/male-female-pay-gap-remains-entrenched-at-white-house/2014/07/01/dbc6c088-0155-11e4-8fd0-3a663dfa68ac_story.html]
“The hypocrisy is stunning,” said Donelson. “I am eager to hear Durbin’s explanation of why his female staffers are paid less than male staffers.”
Since 1963 the Equal Pay Act has made it illegal to pay men and women with the same experience differently for equal work. The new legislation pushed by Democrats, known as the Paycheck Fairness Act, does not change the premise of that long-standing law, but just makes it easier for trial lawyers earn money from class action lawsuits. [Link https://www.uschamber.com/letter/key-vote-letter-s-3220-paycheck-fairness-act]
“Dick Durbin’s crony capitalism and hypocrisy are on full display,” Donelson said. “He wants to pass legislation that his own office could be sued for violating, except the legislation conveniently exempts the government.”
The key provisions of the proposed act would not apply to the Federal Government.
“This isn’t about equal pay. This is about paying off trial lawyers,” Donelson said. “Simply put, Dick Durbin and the Democrats are hypocritically pretending to be champions of equal pay so they can line the pockets of trial lawyers who donate to their campaigns.”
Americas PAC, through its issue advocacy and Federal Independent Expenditure Only committees, has placed 47,000 radio ads so far this this election cycle
A group that championed the same-sex marriage issue in Illinois is calling on gubernatorial candidate Bruce Rauner to return a new round of contributions he received from the DeVos family, known nationally for being major funders to groups opposing gay and lesbian rights. […]
This week, nine different members of the DeVos family donated to Rauner’s run for governor in Illinois for a total of $13,000. Among Rauner’s donors is Douglas Devos, president of Amway. Gay rights groups across the country have been at odds with Amway, including calling for boycotts, following Devos’ big money donation — $500,000 — to the National Organization for Marriage, a group that opposes same-sex marriage and has worked in Illinois and other states to defeat its legalization. Dick Devos also contributed $6,000 in two donations. […]
“What we see Rauner trying to do, unlike Bill Brady and unlike some of the other former candidates from the Republican party who were proud of their conservative beliefs — Rauner is trying to have it both ways,” said [Bernard Cherkasov, CEO of Equality Illinois]. “When he is in Chicago, he is trying to impersonate a moderate. But when he’s speaking to what he believes to be private, closed circles to his party, he says something else.” […]
“If he wants to run as a moderate candidate, then he should distance himself from their money and their contributions,” said Cherkasov.
Bruce Rauner’s campaign began airing a new television advertisement today outlining some of Pat Quinn’s most egregious broken promises as governor.
“Again and again, Pat Quinn broke his word and failed the people of Illinois,” Bruce Rauner said. “After promising to make job creation a top priority, Illinois finds itself tied for the worst unemployment rate in the Midwest. After promising not to cut education spending, he gutted it by more than $500 million. After promising to protect working families from higher taxes, he passed a massive 67 percent tax hike on every Illinoisan – and now he’s trying to make that tax hike permanent.”
“Illinois voters can’t trust Pat Quinn. It’s time for a new direction,” Bruce concluded.
* Rauner’s post-primary TV spots have all been positive until now. Rate it…
* Script…
VOICE: When you hear Pat Quinn’s false attacks remember his broken promises.
PAT QUINN: Our job recovery bill will create more than four-hundred thousand jobs.
VOICE: Under Quinn Illinois leads the Midwest in job losses.
PAT QUIN: Another area we are not cutting is education.
VOICE: Quinn cut 500 million causing teacher layoffs and crowded classrooms.
PAT QUINN: Under our plan a family of four will not pay higher taxes.
VOICE: Quinn raised taxes by 67 percent on every Illinoisan. Pat Quinn a broken record of broken promises.
…Adding… The governor’s campaign claims this is a “very thin” buy of 300 points in Chicago.
*** UPDATE *** Quinn campaign response in full…
Billionaire Bruce Rauner leveraged some of the money he grabbed jumping through tax loopholes for the super-rich to go negative in July and begin the job of distorting Gov. Pat Quinn’s record. Here are the facts that reject Rauner’s false claims and a statement from the Quinn Campaign:
Bruce’s Claim: Gov. Quinn cut $500 million from education.
Fact: That’s false. Quinn has increased education investments, including payments into the Teachers’ Retirement System, and has made the tough calls to protect education from radical cuts that Rauner’s position on revenue would mandate. Education makes up half of the state’s discretionary budget.
Fact: Illinois is tied for the 9th-lowest state income tax rate among the 43 states that have an income tax. Rauner conveniently ignores the fact that by increasing revenue, we’ve been able to protect education from drastic cuts that he wants to enact, while also paying down the bills by nearly $6 billion.
Bruce’s Claim: Illinois leads the Midwest in job loss.
Fact: This is false on multiple levels. According to the Philadelphia Reserve, Illinois is ranked #1 in the Midwest for projected growth over the next six months.
There are more people working in Illinois today than at any time since February 2009—the first month of the Governor’s administration. (U.S. Bureau of Labor Statistics)
Illinois’ unemployment is at its lowest point since November 2008 and is lower than when Gov. Quinn took office. Today Illinois’ unemployment rate is at 7.5%, a 5 ½ year low. (U.S. Bureau of Labor Statistics)
Illinois has added 242,700 private-sector jobs since the recovery began in 2010. (U.S. Bureau of Labor Statistics).
Below is the statement of Quinn for Illinois spokesman Izabela Miltko:
“In the absence of any substantive plans to confront challenges facing Illinois, billionaire Bruce Rauner got an early start distorting Governor Quinn’s record of fighting for working families and getting the job done.
“It’s worth noting that Rauner is paying for these false attacks, and many more to come, with cash he grabbed by jumping through elite tax loopholes that cause the middle class to pay more.
“The next time you see one of Bruce Rauner’s negative TV ads attacking Governor Quinn, remember how he payed for it - at your expense.”
