* From Jason Barclay, General Counsel, Office of the Governor:
Governor Rauner directed our legal team to conduct a comprehensive review of the evaluation and selection process that the Quinn administration used to recommend applicants for licensure in the State’s Medical Cannabis Pilot Program.
His request was threefold. First, determine whether the process used by the Quinn administration followed the law. Second, share our findings with the Attorney General and determine what, if any, corrective actions need to be taken for any failures to fully comply with the law. Finally, recommend a plan of action that corrects any deficiencies and fully adheres to the spirit and letter of the law.
Our recently completed legal review identified four potential problem areas:
1) The review teams imposed certain arbitrary scoring “cut-offs” that were not expressly contemplated or provided by law that effectively eliminated certain applicants from consideration;
2) The agencies conducted a character and fitness review of the applicants after the blind scoring process had been completed;
3) As part of the character and fitness review, several applicants were disqualified without clear procedures and standards for disqualification and without offering the prospective applicants an opportunity to respond to the information that was relied upon to make the disqualification decisions; and
4) Despite seemingly contradictory language in the rules promulgated by the Illinois Department of Agriculture, the prior administration decided to award no more than one cultivation center license to applicants who were the high point scorers in more than one district.
We concluded that these problem areas create a risk of substantial and costly litigation to the State. We shared our findings and this conclusion with the Attorney General. Her staff conducted a prompt review and for that we thank them.
As a result of our consultation with the Attorney General, we have further concluded that there is a significant likelihood that the Quinn Administration’s decisions will not be upheld in court. We have also relied upon the Attorney General’s legal guidance and must now take all necessary corrective action to make sure that these licenses and permits are properly issued in compliance with the law.
As a result of these conclusions, we are therefore recommending the following actions:
1) Licenses and permits will be issued to the highest scorers in each district where the top scorer was not disqualified;
2) Cultivation center applicants that were high scorers in more than one district will be awarded permits up to the three permit limit that was expressly provided by 8 Illinois Administrative Code (the “IL Department of Agriculture Rules”) Section 1000.40(d);
3) The artificial and subjective scoring “cut-offs” that were imposed by the agencies will be eliminated and licenses and permits will be awarded to the high scorers in those districts regardless of their final point total; and
4) Any applicant that was recommended for disqualification will be fully informed of the basis for that decision, given an opportunity to respond in writing and/or in-person to the respective licensing agency’s director and general counsel to contest the recommendation, and a final written character and fitness decision will be made consistent with the relevant pre-established formal standards established by the IL Department of Agriculture Rules Section 1000.110(j) or 68 Illinois Administrative Code (the “IL Department of Financial and Professional Regulation Rules”) Section 1290.70(e) – (f).
These actions may result in some additional minimal delay in a limited number of districts and for that we apologize to the patient community. The Governor has requested that this process must be deliberate, fair, and fully comply with the law. In order to accomplish those important objectives, these additional steps are essential to correct the deficiencies of the previous administration’s selection process. Only then can the public have the fullest confidence that the law was followed and these licenses and permits were awarded for the right reasons.
* Gov. Bruce Rauner just sent this memo to state legislators…
TO: Members of the General Assembly
FROM: Bruce Rauner, Governor
DATE: February 2, 2015
SUBJECT: The Attached Slides
Good Afternoon:
As you know, I have been delivering a number of speeches detailing many of the structural challenges confronting Illinois. Before our joint session on Wednesday, I wanted to share two additional slides with you. I hope you are able to review them soon.
The first slide is a summary of the federal rules regarding U.S. government employees. The rules were codified in 1978 under President Jimmy Carter and a Democratic Congress. The pension system changes were enacted under President Ronald Reagan in conjunction with a bipartisan legislature. We too can achieve common-sense bipartisan reforms to our employment rules that are fair to both state workers and taxpayers.
The second slide shows a few examples of spending levels inside Illinois government. These levels are unsustainable and unfair to working families, small businesses and other taxpayers in Illinois. They limit our ability to grow our economy and to fund much needed social services. We do not intend to propose government salary reductions, but it is critical that we make structural reforms that prevent any future imbalances and unfair practices. It is also abundantly clear that we must make major reforms to eliminate conflicts of interest and to achieve dramatic economic growth in order to properly fund the operations of our state government.
I look forward to seeing you on Wednesday and working with you in the weeks and months ahead.
Sincerely,
Bruce
Emphasis added by request.
* From Slide One…
Federal Government Employee Structure
(Federal Service Labor –Management Relations Statute 1978)
• Employees have the right to organize and collectively bargain over work conditions including work hours, grievance procedures, work assignments
• Employees are prohibited from strikes, work stoppages, slowdowns, picketing, etc.
• Employees cannot bargain over wages, benefits, pensions, personnel decisions and managerial rights (prohibits bargaining on mission, budget, organization, number of employees or internal security)
• Government can not force its employees to participate in or fund labor union activities that they do not support
• No automatic mandatory arbitration provision or injunctions in aid of arbitration for collective bargaining impasse
• Prior to 1983, pension was defined benefit plan with no Social Security. Since then, the retirement system was reformed to become a hybrid system including a defined benefit annuity, Social Security and a 401(k)
Sounds like he wants the same for AFSCME and the teachers.
Whew.
* Slide Two…
I think most of those barbers work in prisons. They probably deserve the pay bump.
Each of us advances the cause of liberty in our own special way.
For some of our amazing team members at the Illinois Policy Institute and Illinois Policy Action, that means taking on a new challenge to improve government from the inside out.
It is with great pride that I share the news that the following individuals will be putting their talent to work on behalf of the people of Illinois with Gov. Bruce Rauner’s administration.
Brian Costin, who served as our director of government reform, will begin as policy director for Lt. Gov. Evelyn Sanguinetti.
Donovan Griffith, who served as our manager of government affairs, will serve as legislative liaison at the Illinois Environmental Protection Agency.
Jane McEnaney, who served as our manager of government affairs, will transition to chief legislative liaison at the Illinois Department of Revenue.
We are honored that the new administration is looking to our team for talent.
We wish Brian, Jane and Donovan the best of success as they continue their work to write the next chapter of Illinois’ comeback story.
Republican Gov. Bruce Rauner on Friday replaced the longtime Illinois Gaming Board chairman with a political supporter who ran an independent expenditure committee that backed him in the November election. […]
[Springfield resident Don Tracy] said he would not lobby for or against the expansion of gambling but indicated he would be vocal in providing input on legislation.
It might be hard to be any more vocal than Aaron Jaffe, a former judge and Democratic legislator who was appointed chairman by then-Gov. Rod Blagojevich following a tumultuous period of the Gaming Board. Jaffe oversaw the final issuance of the highly disputed 10th riverboat license that had become dormant, as well as the rollout of video gambling throughout Illinois.
Jaffe was critical of repeated proposals to expand gambling into Chicago and other areas of the state, raising concerns that standards were too loose. Former Gov. Pat Quinn, who had reappointed Jaffe previously and sought to extend his term, vetoed proposed expansions.
Not mentioned is that Jaffe’s Gaming Board completely botched the video gaming rollout, which delayed implementation for more than a year. Also, Jaffe always seemed to fuss that gaming expansion would hurt the existing casinos. That really shouldn’t have been his concern. And his attempt to regulate which employees taverns and restaurants could hire and which truck drivers could deliver beer and food to those establishments was just ridiculous.
He did some good things at the beginning, and his regulation of the casinos should be applauded, but toward the end he became kinda weird.
* The Illinois Review has this note about Chairman Tracy…
During the 2010 election, Tracy said on the campaign trail that he was opposed to the expansion of gambling. That year, the socially-conservative Family-Pac endorsed Don Tracy in the LG race.
Rauner has also said he doesn’t like gaming, but says Chicago should have a casino because Indiana is luring so many folks away. I assume they are on the same page here (both also favor “right to work”), but one never knows.
* I’m a little surprised that Tracy’s $100,000 campaign expenditure on behalf of Rauner didn’t prompt anyone to look back at Rauner’s repeated pledge to keep cronies out of government…
Bruce Rauner on what’s wrong with the Illinois Department of Agriculture: It’s “full of cronyism.”
Bruce Rauner on the difference between the Blagojevich and Quinn administrations (from the Trib): “‘The only difference between Pat and Rod is the hair,’ Rauner declared, saying both administrations contained ‘corruption’ and ‘cronyism.’”
Bruce Rauner on favoritism at the Illinois Department of Transportation: “You can be fairly certain that there would have been many veterans that could have taken those jobs instead of the cronies who were hired.”
The Democratic Gaming Board appointee, Tom Dunn, was instrumental in bringing riverboats to his Joliet-area district back when he was a Senator. Whether he’ll now try to protect those boats by opposing a Chicago casino is unknown.
* The ads were boring. Overall, too little humor, too much social propaganda, too many tear-jerkers. Considering the Ray Rice controversy, I certainly understand why violence was nowhere to be seen and the sexism was toned way down. But you can still be funny without that stuff.
* I could hardly watch the halftime show. Then again, I always have trouble watching that halftime show. I didn’t see Janet Jackson’s infamous “wardrobe malfunction” back in the day because I was in another room at the time.
* Thankfully, the game itself was incredibly entertaining, right up until the final seconds. Wow! And while I agree with the various talking heads that a handoff would’ve been the right call for Seattle on the one-yard line, the play the coach did send in probably wasn’t the worst Super Bowl call ever - although I’m hard-pressed to think of a bigger end-of-game disaster.
* Almost every year that a governor has given a State of the State address before giving the budget address, we get goofy stories like this…
Gov. Bruce Rauner is set to deliver his first State of the State Address on Wednesday, and most area lawmakers are hoping he addresses the state’s fiscal problems.
The budget address will happen later this month, as Rep. Moffitt rightly points out…
State Rep. Don Moffitt, R-Gilson, said he too hopes to see a “roadmap” for the state’s fiscal future, though Wednesday’s speech might not be the platform to do it.
“I hope he will outline his roadmap,” Moffitt said. “First, where he wants to get to. Second, how he wants to get there. Although the ‘how to get there’ might be in the budget address on Feb. 18.”
The governor will likely talk about some general principles in the SOTS address, but specifics will most likely have to wait until the 18th.
* The Tribune took a look Sunday at something we discussed last week, the cash-strapped state child care program…
The Department of Human Services announced recently that it’s short nearly $300 million needed to pay for the day care program through June — the end of the budget year — and payments will be late starting this month.
Funding hiccups are nothing new to providers, who have become skilled at raising alarms to try to force action in Springfield. But this time is different, some say, because of the uncertainty about the new governor — a Republican who has declared that solving the state’s money problems will require “sacrifice” from all Illinoisans.
“Every year we go through something, but we’re able to rally and say this is important, and then the funding comes,” said Grace Araya, director of Eyes on the Future Child Development Center in Rogers Park. “We don’t really know where we stand. We don’t know which way this will go.”
* The governor was asked about the shortfall the other day…
When pressed by a reporter to explain what he’ll do to fix it, he responded: “Working closely, working closely with the General Assembly, we are going to make sure that we do the reallocations necessary to make sure the essential services of government stay open and functioning.”
* Charlie Wheeler looks at the budget problems facing the state and concludes…
The math is unforgiving — all the rest of state government could be zero-funded next year, and Rauner still would have to cut from education and/or health care/human services. That obviously won’t happen, so be prepared for the deepest cuts — ever — in the public’s most-cherished programs in the proposal.
(W)riting with Laffer for the Texas Public Policy Foundation in 2011, Arduin proposed to abolish that state’s defined-benefit pension, even though the state’s retirement systems were better than 90 percent funded. Such systems effectively create “a government entitlement program,” she wrote. “Entitlement programs violate the criteria of sound budgeting principles.” […]
Or, back to the first foundation piece, this little quip: “The longer tenure for public sector employees is related to the compensation package they receive. The government compensation package is designed to reward risk-averse behavior that keeps employees in the government sector and discourages people from transitioning between the public and private sectors.”
One more: As California finance director, Arduin persuaded Schwarzenegger to propose a spending cap. After budget cuts, the cap would limit spending hikes to “a rate equaling population growth plus the increase in per capita income,” as reported by the Sacramento Bee. […]
Reviewing her track record in Florida, the Bee also reported, “Bush and Arduin whacked health insurance for low-income Florida children and health services for adults, cut funding for higher education . . . and enacted an austerity budget for K-12 schools that, despite nominal increases, won’t cover schools’ higher costs.”
* You can certainly see Arduin’s hand in shapingsome of the governor’s budgetary “facts,” which are examined by the AP…
Rauner said Medicaid spending is “booming” and “unsustainable.” He showed a slide comparing a recent three-year rise in Medicaid spending to relatively flat Illinois population growth. […]
First, Washington paid for most of that increase. To improve access for the poor, the nation’s new health law expanded Medicaid eligibility and increased rates for primary care doctors treating low-income patients. The federal government paid the entire cost of covering more than 536,000 Illinois adults who previously had no insurance and wound up as charity care cases when they got sick.
Second, Illinois spends less per Medicaid enrollee than the national average and less per enrollee than any of its neighboring states. In 2011, the most recent year available, Illinois ranked 47th in Medicaid spending per enrollee, according to the Kaiser Family Foundation. Only California, Alabama, Georgia and Nevada spent less.
Rauner spokesman Lance Trover said Rauner’s point was to highlight that job growth hasn’t kept up with spending pressures.
“It’s not a sustainable trend line — regardless of the amount of federal dollars,” Trover said
Under fire for the high salaries he is paying members of his inner circle, Gov. Bruce Rauner said Friday the overall cost of running the governor’s office will be less than it was under former Gov. Pat Quinn.
But a review of records shows the political newcomer may be trying to keep his office costs lower by placing some of his top aides on the payrolls of other state agencies.
According to data supplied by the Illinois Comptroller’s Office, one-quarter of the more than 40 people Rauner announced as members of his administrative team don’t technically work for the governor’s office.
Take Randy Pollard as an example. In a news release issued Jan. 10 by Rauner, Pollard was named as the governor’s downstate director. But records show the former prison worker from Vandalia is being paid out of the payroll of the Illinois Department of Natural Resources.
That’s the usual way of doing things in Springfield, so it’s not a surprise, except Rauner said he wouldn’t do things the usual way.
* Here’s CFO Arduin with then-Gov. Arnold Schwartzenegger…
Governor Bruce Rauner convened a conference call this afternoon with leaders of the Illinois Department of Transportation, the Illinois Emergency Management Agency, the Illinois State Police, the Illinois Commerce Commission and Central Management Services for an update regarding the ongoing winter storm and the state’s readiness to assist citizens.
Prior to the call, Governor Rauner activated the State Incident Response Center in Springfield to ensure state personnel and equipment are ready to be quickly deployed if needed to help local emergency responders deal with the blizzard conditions in the Chicago area.
Relevant facts from today’s storm include:
· There have been no requests from local first responders for additional state assistance – state agencies are prepared in case a need arises
· There have been no serious injuries or fatalities reported due to today’s weather
· All IDOT snow plows are in use where needed
· There are further concerns following the end of the storm when temperatures drop which may result in freezing roads. Motorists are advised to remain off the roads, but if travel is necessary to use extreme caution
· There are approximately 16,000 ComEd customers without power
· There are approximately 1,850 MidAmerican Energy customers without power
· There are approximately 800 Ameren Illinois customers without power
· All companies have assured the state they are working as quickly as possible to restore power, and all customers should have power restored by tomorrow
· I-57 around Champaign is still closed due to an overturned truck – crews are working quickly as possible to open the highway – traffic is being diverted
· While the tanker truck was not carrying any hazardous material, approximately 68 homes were evacuated out of an abundance of caution
· There have been 1,100 flights cancelled at O’Hare and 200 at Midway
· State IT services are in good shape and functioning
The governor is confident the state is poised and ready for action should conditions continue to deteriorate and cause further, more serious problems. He continues to urge motorists to avoid travel unless absolutely necessary.
Daniel Biss appears to be the first Democrat to actively float his name for the 2016 special election for state comptroller.
The state senator from Evanston is known as a policy wonk around the statehouse, but he’s also a prodigious fundraiser, ending the fourth quarter with $721,000 in the bank.
The special election law was passed by the General Assembly in early January—just weeks after the death of Republican Comptroller Judy Baar Topinka. Former Gov. Pat Quinn signed it into law on his way out the door.
If the new law is upheld by the courts (which seems likely, but not 100 percent certain), Gov. Bruce Rauner’s appointment to the post, Leslie Munger, will have to stand for election in a presidential election year.
Since the days of President Bill Clinton, Republicans have been at a distinct disadvantage during presidential election years. No Republican presidential candidate has won this state since 1988, when George H.W. Bush defeated Michael Dukakis 51 percent to 49 percent. Back then, Illinois was considered a “bellwether” state for presidential campaigns. No longer.
Anyway, Biss would first have to survive the Democratic primary. And although no other candidates have yet floated their names, it’s expected that we will see some interest (there’s even some talk that Quinn might be interested).
Biss pushed hard for state worker pension reform when he was in the House and then again after he moved to the Senate. That hasn’t endeared him to labor unions, although I’m told he’s been attempting to reach out to the unions to try and smooth things over. Biss ran unopposed for the Senate last year, so the Illinois AFL-CIO took no position on his nonexistent campaign.
Meanwhile, state Sen. Napoleon Harris, D-Flossmoor, has been eyeing a move up the political ladder almost as soon as he won the 2012 primary to replace the retiring incumbent Rev. James Meeks.
Harris expressed strong interest in running for the U.S. House seat vacated by the disgraced incumbent Jesse Jackson, Jr., but wound up bowing out. Now, Harris is looking at a possible U.S. Senate bid.
Harris is a former NFL football player. Many of his former teammates have plenty of extra cash, which gives Harris a natural fundraising base.
He is also a successful businessman in his own right, a Beggars Pizza franchise owner in the south suburbs.
He is the first state legislator to express a strong interest in the Senate race. All of the other possible candidates mentioned so far are members of the U.S. House of Representatives.
One of those representatives expressing interest in running for Senate is Robin Kelly, who ended up winning the 2013 special election to replace Jackson, with Harris’ eventual endorsement. If both she and Harris end up running for Senate, that would mean two African-Americans from the south suburbs would be competing in the Democratic primary. Kelly would have to give up her House seat to run, but Harris just started a four-year term.
Republican incumbent U.S. Sen. Mark Kirk has a moderate (for Washington, D.C.) voting record. Kirk will also have strong support—financial and otherwise—from the majority Republicans in the Senate if he runs, which appears likely at this moment. And Kirk will benefit from a newly rebuilt party infrastructure, courtesy of Rauner’s gubernatorial campaign, and from Rauner’s super-wealthy contributor network. Kirk, himself, also has built an impressive fundraising network of staunch Israel supporters.
Even so, no Republican U.S. Senate candidate has won Illinois during a presidential year since Charles Percy was re-elected way back in 1972. President Richard Nixon absolutely stomped Democrat George McGovern that year here by 19 points. Even so, the Democrats won back the governor’s office.
The last Republican U.S. Senator from Illinois, Peter Fitzgerald, declined to run in the 2004 election, when George W. Bush lost the state by ten points. And the average Democratic presidential winning margin in Illinois since 1992 is over 16 points. Yes, Barack Obama pumped up that average, but they all won by double digits.
Even so, it’s not an impossible task for Kirk. He could actually run to the left of Sen. Harris on some social issues if the legislator manages to survive the primary. Harris voted “present” on the gay marriage bill, for instance. Kirk favors the “liberal” side of that position.
Imagine the uproar if a governor proposed a law allowing local governments to tell their residents that paying monthly cable television bills now is purely optional.
If your county or city opted in, you could have whatever cable channels you wanted without paying a monthly fee. No repair charges either, unless you felt like chipping in.
The governor likely would be laughed out of office. If you want a private service, even a monopolized private service, you should expect to pay.
But that’s pretty much what Gov. Bruce Rauner is proposing for labor unions.
It’s called “right to work” by its proponents, although Rauner referred to it as “employee empowerment” during a Jan. 27 speech in Decatur.
One possible scenario – perhaps the best-case scenario, given the tenor of the discourse now – is that Rauner intentionally is using his anti-union rhetoric as a bargaining chip to later get what he wants from AFSCME during negotiations. It’s not unusual during labor talks for each side to stake out extreme positions, hoping for eventual common ground in the middle.
But what Rauner has in mind is anyone’s guess outside of his inner circle. The first-time governor is untested and unknown, and he still isn’t offering specifics about how he intends to fix the state’s fiscal problems from a structural standpoint, instead continuing to rail about the sins of the past.
Rauner clearly believes right-to-work zones hold some promise for Illinois or he wouldn’t talk about them with such emphasis. But even the pro-business Illinois Chamber of Commerce says the move is unnecessary.
“Illinois doesn’t need right to work (laws) to compete with its neighbors,” Todd Maisch, chief executive of the Illinois Chamber, told the Chicago Tribune.
Rauner’s focus should be on bringing together the groups that have a role in fixing Illinois’ severe fiscal problems, including unions, rather than creating unnecessary divisions. Mutual respect is a must if Rauner intends to achieve his goals.
If last week was any indication, it’s shaping up to be a contentious year at the Capitol.
