* 3:36 pm - From a press release…
Governor Bruce Rauner today signed Executive Order 15-13 eliminating unfair share dues for state employees who do not wish to fund government union activities and positions with which they may disagree.
The governor’s actions come after an extensive legal review of the U.S. Supreme Court’s decision last year in Harris v. Quinn. In that case, the Supreme Court ruled that the Illinois Public Labor Relations Act violated the First Amendment by forcing certain state employees to involuntarily pay fees to a labor union.
In light of that decision, the Rauner administration has concluded that the so-called “fair share” provisions of the current collective bargaining agreements, that are similar to those invalidated by the Supreme Court in Harris v. Quinn, are also unconstitutional.
“Forced union dues are a critical cog in the corrupt bargain that is crushing taxpayers. Government union bargaining and government union political activity are inexorably linked,” Governor Rauner said. “An employee who is forced to pay unfair share dues is being forced to fund political activity with which they disagree. That is a clear violation of First Amendment rights – and something that, as governor, I am duty-bound to correct.”
The executive order allows state employees who wish not to support government unions’ activities to stop paying the forced fees. It has no impact on those employees who wish to remain paying members of the union and fund union activities out of their paychecks.
The full EO is here.
…Adding… Rauner said he has hired Dan Webb and Winston & Strawn to handle this issue on a pro bono basis. From the EO…
…Adding More… The governor’s office says there are 6,500 state employees who pay “fair share” dues. That’s significant, but a fairly small overall percentage.
…More… Twitters…
…And Some More… The rest of the press release…
· The federal government prohibited the forced collection of union dues in 1978 as part of the Civil Service Reform Act signed by President Jimmy Carter. That law passed the U.S. Senate 87-1 and the U.S. House of Representatives 365-8. Illinois Senator Charles Percy was one of the co-sponsors.
· 29 other states have laws that prohibit government entities from forcing public workers join or financially support labor organizations that they do not support.
· While Harris v. Quinn only decided the constitutional issue as it relates to a subset of Illinois state employees (home care workers), the Supreme Court’s majority opinion found that much of the landmark case Abood v. Detroit Board of Education was ”questionable on several grounds.”
· Notably, the Supreme Court said in Harris v. Quinn:
o “Abood failed to appreciate the conceptual difficulty of distinguishing in public-sector cases between union expenditures that are made for collective-bargaining purposes and those that are made to achieve political ends. In the private sector, the line is easier to see. Collective bargaining concerns the union’s dealings with the employer; political advocacy and lobbying are directed at the government. But in the public sector, both collective-bargaining and political advocacy and lobbying are directed at the government.”
o “Abood failed to appreciate the difference between the core union speech involuntarily subsidized by dissenting public-sector employees and the core union speech involuntarily funded by their counterparts in the private sector. In the public sector, core issues such as wages, pensions, and benefits are important political issues, but that is generally not so in the private sector. In the years since Abood, as state and local expenditures on employee wages and benefits have mushroomed, the importance of the difference between bargaining in the public and private sectors has been driven home.”
§ “Recent experience has borne out this concern. See DiSalvo, The Trouble with Public Sector Unions, National Affairs No. 5, p. 15 (2010) ( ‘In Illinois, for example, public-sector unions have helped create a situation in which the state’s pension funds report a liability of more than $100 billion, at least 50% of it unfunded’).”
o “A union’s status as exclusive bargaining agent and the right to collect an agency fee from non-members are not inextricably linked. For example, employees in some federal agencies may choose a union to serve as the exclusive bargaining agent for the unit, but no employee is required to join the union or to pay any union fee. Under federal law, in agencies in which unionization is permitted, ‘each employee shall have the right to form, join, or assist any labor organization, or to refrain from any such activity, freely and without fear of penalty or reprisal, and each employee shall be protected in the exercise of such right.’”
…Adding… Raw audio…
…Adding Still More… AFSCME Council 31…
“Child protection workers, caregivers for veterans and the disabled, correctional officers and everyone else employed by state government has a right to a voice at work and in the democratic process through their union.
“Bruce Rauner’s scheme to strip the rights of state workers and weaken their unions by executive order is a blatantly illegal abuse of power.
“Perhaps as a private equity CEO Rauner was accustomed to ignoring legal and ethical standards, but Illinois is still a democracy and its laws have meaning.
“It is crystal clear by this action that the governor’s supposed concern for balancing the state budget is a paper-thin excuse that can’t hide his real agenda: Silencing working people and their unions who stand up for the middle class.
“Our union and all organized labor will stand together with those who believe in democracy to overturn Bruce Rauner’s illegal action and restore the integrity of the rule of law.”
…And More… Senate President John Cullerton responds…
“Our legal staff is reviewing the Governor’s executive order regarding fair share. At the same time, I look forward to hearing the Governor’s budget as we search for common ground to address our fiscal challenges.”
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Question of the day
Monday, Feb 9, 2015 - Posted by Rich Miller
* From a reader…
Hi, Rich.
I stumbled into this interesting map that might make for a good blog item. It splits up North America based on political culture and its historic development. Note that Illinois is one of only a handful of states that is divided into three “nations.” When I give my standard “how-things-work-in-Springfield” talk to civic groups or students, I often argue that regional differences shape the debate in Illinois as much as partisan affiliation does. This gives a pretty good overview of that phenomenon:
* Here’s a close-up shot of Illinois. The full map is here. Dark blue is “Yankeedom,” light blue is “The Midlands” and the red area is “Greater Appalachia”…
* The categories are explained…
YANKEEDOM. Founded on the shores of Massachusetts Bay by radical Calvinists as a new Zion, Yankeedom has, since the outset, put great emphasis on perfecting earthly civilization through social engineering, denial of self for the common good, and assimilation of outsiders. It has prized education, intellectual achievement, communal empowerment, and broad citizen participation in politics and government, the latter seen as the public’s shield against the machinations of grasping aristocrats and other would-be tyrants. Since the early Puritans, it has been more comfortable with government regulation and public-sector social projects than many of the other nations, who regard the Yankee utopian streak with trepidation.
THE MIDLANDS. America’s great swing region was founded by English Quakers, who believed in humans’ inherent goodness and welcomed people of many nations and creeds to their utopian colonies like Pennsylvania on the shores of Delaware Bay. Pluralistic and organized around the middle class, the Midlands spawned the culture of Middle America and the Heartland, where ethnic and ideological purity have never been a priority, government has been seen as an unwelcome intrusion, and political opinion has been moderate. An ethnic mosaic from the start—it had a German, rather than British, majority at the time of the Revolution—it shares the Yankee belief that society should be organized to benefit ordinary people, though it rejects top-down government intervention.
GREATER APPALACHIA. Founded in the early eighteenth century by wave upon wave of settlers from the war-ravaged borderlands of Northern Ireland, northern England, and the Scottish lowlands, Appalachia has been lampooned by writers and screenwriters as the home of hillbillies and rednecks. It transplanted a culture formed in a state of near constant danger and upheaval, characterized by a warrior ethic and a commitment to personal sovereignty and individual liberty. Intensely suspicious of lowland aristocrats and Yankee social engineers alike, Greater Appalachia has shifted alliances depending on who appeared to be the greatest threat to their freedom. It was with the Union in the Civil War. Since Reconstruction, and especially since the upheavals of the 1960s, it has joined with Deep South to counter federal overrides of local preference.
* The Question: Do you agree or disagree with your locale’s description? Take the poll and then explain your answer in comments, please.
online polls
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* Gov. Bruce Rauner was asked about our Friday story regarding the $30,000 per month contract awarded to his CFO Donna Arduin’s consulting firm…
Arduin has been contracted to “provide advice to the governor” on how to deal with Illinois’ pending fiscal challenges.
For that, she — or more specifically, her consulting firm — will be paid $120,000 for four months of work. Rauner justified Arduin’s contract during a Sunday stop in Bloomington.
“Because she’s the best in America,” Rauner said when asked by a reporter how he can justify that expense. “She’s a brilliant lady who’s done financial turnarounds at a number of states. She’s the smartest state government budget person in America that I was able to find and she’s well worth it, because she’s going to save us billions.”
The contract’s signing comes as Rauner has called salaries of highway maintenance workers, prison barbers and other state employees “unsustainable.”
* The contract included an attachment that explains why it was sole sourced. This is the section entitled “Business Rationale”…
* Related…
* Youth organizations among first to feel Rauner’s austerity plan
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* Tom Kacich notices a developing pattern…
The talk in much of Illinois is whether Democrats in the Legislature will go along with any of Gov. Bruce Rauner’s long, ambitious and almost revolutionary list of changes, ranging from merit selection (not election) of judges to limiting prevailing wage requirements on public works projects.
But how about the Republicans in the Legislature, especially the ones whose districts include universities and state prisons, and whose constituents include large numbers of state employees?
There was a telling moment at Friday morning’s appearance by Rauner in downtown Decatur, where an enthusiastic group of supporters welcomed him inside the Decatur Club, but an equally enthusiastic group of opponents hooted and chanted outside the building.
Just before Rauner spoke, Mirinda Rothrock, the president of the Greater Decatur Chamber of Commerce, asked for elected officials in the crowd to stand. Not one Republican state lawmaker was there.
I got chewed out last week by some GOP lawmakers for making a similar observation about Rauner’s appearance in Champaign. But the truth is that downstate Republicans, who for so long have been able to simply criticize Democratic governors and legislative leaders, now have to maneuver around political landmines. Do they support Rauner, their constituents (and their constituents’ interest groups), or somehow both? […]
“Right now they’re keeping their distance,” said one Republican, who said it’s an “adjustment period” for downstate Republicans.
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* Wow…
Attorney General Lisa Madigan and Randolph County State’s Attorney Jeremy R. Walker today filed a two-count criminal information against Drew Peterson, 61, an inmate at the Menard Correctional Center, charging him with one count of solicitation of murder for hire and one count of solicitation of murder, both Class X felonies.
The charges allege that between September 2013 and December 2014, the defendant solicited an individual to carry out a murder-for-hire plot against Will County State’s Attorney James Glasgow. The defendant made an initial appearance on the charges today at the Randolph County Courthouse. A preliminary hearing is set for March 3 at 10 a.m.
The case will be jointly prosecuted by the Illinois Attorney General’s Office and the Randolph County State’s Attorney’s Office.
The public is reminded that these are merely charges and that the defendant is presumed innocent unless proven guilty.
Cue the national media firestorm in three… two…
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It’s just a bill, Part 9,867
Monday, Feb 9, 2015 - Posted by Rich Miller
* I’m guessing this one’s gonna face a tough slog…
Hunters and other shooting enthusiasts would be allowed to have silencers on their guns under a bill filed in the Illinois legislature.
The bill’s sponsor, Rep. Brandon Phelps, D-Harrisburg, said gun owners want silencers for a simple reason: to avoid hearing loss.
“There are a lot of veterans, a lot of hunters and shooters, who have suffered hearing loss,” Phelps said.
Phelps acknowledged that gun opponents are likely to challenge the bill.
“I’m used to that. They said that about concealed-carry — they said everybody was going to be running around shooting each other, like the wild west,” Phelps said. “That’s the movies.”
* And an AmmoLand writer loves Sen. Bivins’ new bill…
Illinois Senator Tim Bivins has introduced an act to allow people with valid concealed carry permits to carry, purchase, and possess switchblade knives, stun guns, or tasers.
It is an incremental reform to the Illinois code. If the bill can make it out of committee and up for a vote, it seems imminently sensible.
Who would object to someone who is legally allowed to carry a concealed pistol, from being allowed to carry a knife, stun gun, or taser in the same circumstances? […]
The ban on knives that open with the push of a button, or “switchblades” comes from an era when yellow journalists were testing the limits of their new found power. They were able to push for a ban on common pocket knives by appealing to emotion and prejudice. Some say that the play “West Side Story” was directly responsible for the ban.
* Other stuff…
* Bill would create prep sports concussion oversight in Illinois
* Rauner Doesn’t Like Senate Bill
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Trickle-down explained
Monday, Feb 9, 2015 - Posted by Rich Miller
* From the Illinois Policy Institute’s news service…
Jerry Lack, Executive Director of Illinois Construction Management Labor Counsel, says the prevailing wage laws are meant to ensure people make money.
“You gotta have good paying jobs that people can support families on. The prevailing wage helps that become a reality.”
But Billy Michaels, an out of state contractor that has done business in central Illinois, says prevailing wage and other union issues could impact his ability to keep guys from drawing unemployment.
“Where I may be willing to take a eight percent profit on a job versus having to take fifteen. I’m willing to take that eight percent to be able to get the job and keep my guys working all the time versus having them collect (unemployment). It puts an undue burden on the small business owners.”
An out of state contractor complaining about his Illinois profit margin because his workers make more money than they do wherever he’s from. Great example there, guys.
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Today’s number: 8
Monday, Feb 9, 2015 - Posted by Rich Miller
* The governor has supreme confidence in himself…
Rauner said after his speech that he believed it would take the General Assembly to pass legislation to allow local municipalities the right to vote on whether to implement the zones, a daunting task as Democrats hold veto-proof majorities in the House and the Senate.
The rest of his presentation focused on a variety of topics he had expressed interest in taking on during his first term, including term limits for officeholders, more charter schools, lowering workers compensation and unemployment insurance costs for businesses and reducing local property taxes.
Despite the breadth of his goals, Rauner said he is confident he can pass every piece of agenda through the General Assembly in eight comprehensive bills.
“We can pass eight bills,” he said. “We have to focus like a laser and get this done.”
Odds?
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Fact check
Monday, Feb 9, 2015 - Posted by Rich Miller
* From the governor’s State of the State address…
Illinois has the most governments in the country – nearly 7,000 local units, and the taxpayers of Illinois can no longer afford all of them.
DuPage County Executive Dan Cronin is with us today. He has already achieved significant government consolidation. To date, his reforms have generated a projected $100 million in taxpayer savings through shared services, joint purchasing, employee benefit reforms and modifications to procurement practices.
Congratulations, Dan. You are a role model for all of us.
* Not mentioned is that those savings are projected over a 20-year time period…
The most up-to-date initiative figures supplied by DuPage County officials show savings of about $116.4 million over the next 20 years. But much of the projected savings doesn’t come directly from what could be called “consolidation” of local governments.
The largest area of projected savings – 31 percent – is $36.5 million from budget cuts made since fiscal year 2011, which included the termination of 45 employees, according to initiative figures. Cronin pushed for those reductions after his election as county board chair in 2010 after serving 20 years in Springfield.
A 2010 state measure, sponsored by Cronin when he was a senator, will repeal a DuPage County Water Commission sales tax in 2016. The repeal will result in $33 million worth of tax savings for residents – another 28 percent of the “consolidation” savings – according to initiative figures.
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Today’s quotable
Monday, Feb 9, 2015 - Posted by Rich Miller
* Gov. Bruce Rauner via the Sun-Times…
“I’ve gone into the Department of Revenue, Department of Health and Human Services, IDOT — people are giving me standing ovations and are like, ‘Governors never come see us. . . . I’ve worked here for 25 years and I’ve never seen a governor,’ ” he said.
He let the anecdote sink in for a moment before announcing, “Hello?! I mean, come on.”
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Caption contest!
Monday, Feb 9, 2015 - Posted by Rich Miller
* From a reader…
This piece of dibs debris was lying on a mound of snow on Lincoln, just north of Addison
The pic…
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* Oy…
Illinois rehabilitation facilities could be short $110 million for two programs, one for mental health services and another for adults with developmental disabilities.
Greg Shaver, executive director of Kaskaskia Workshop in Centralia, which helps adults with disabilities, said payments are starting to slow.
“The current problem is about to unveil itself,” Shaver said. “We’re beginning to see that they were paying at a very timely manner and had most (payments) current until about election time.” […]
“Because of the ongoing issue over the last couple of years, (banks) are reluctant to issue any kind of credit, or they have tightened the guidelines because they have increased concerns that the state won’t pay them back,” [Janet Stover, president of the Illinois Association of Rehabilitation Facilities] said. “They are very careful.”
* And…
Illinois will run out of money to pay the state’s court reporters within weeks, but Gov. Bruce Rauner is working with lawmakers to find a “responsible solution to the problem,” his spokeswoman said.
Rauner spokeswoman Catherine Kelly said the state program that pays for court reporters faces a $14.3 million budget shortfall for the current fiscal year, which ends June 30, and that the program is on pace to run out of money at the end of March.
More…
“The financial challenges facing the court reporters is just one more stress point pushing us all to look at a solution that addresses this year’s shortfall,” Cullerton spokeswoman Rikeesha Phelon said. “We look forward to working with the governor as he outlines solutions to address the challenges for this year and the next.”
In the meantime, local court leaders have to try to manage the problem. Court reporters are present for many proceedings, taking down a record of what’s said. The role is critical for the justice system, the judges say.
DuPage County, Creswell said, can get by with electronic recordings in some cases. But those recorders still have to be operated by court reporters, who make important notations as the tapes roll. […]
In a Jan. 20 letter that was obtained by the Daily Herald, Tammy Bumgarner, director of Court Reporting Services for the state, told her employees lobbyists are optimistic about a fix, but warned “we must remain vigilant if it does not pass quickly or without issues.”
Without a fix, Creswell said, the state’s more than 20 chief judges soon will have to decide how to stretch out the remaining money to keep as much of the court system operating as possible.
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Laughter isn’t always the best medicine
Monday, Feb 9, 2015 - Posted by Rich Miller
* My weekly syndicated newspaper column…
I don’t believe I’ve ever seen a governor openly and loudly laughed at on the House floor. At least not while he was present.
Gov. Bruce Rauner was doing pretty well with his legislative audience during his first State of the State address this week, delivering strong applause lines with his refreshing calls for bipartisanship. He even thanked legislators “for your service” and predicted they would do “great” things together. He warned them that he would say things they liked and didn’t like and urged them to see the “big picture,” which will “lift up all of the people we’ve been chosen to represent.”
Members of the Legislative Black Caucus were especially receptive to the governor’s attacks on labor union apprenticeship programs. Rauner claimed about “80 percent of individuals in Illinois apprenticeship programs are white even though Caucasians make up fewer than 63 percent of our population,” and demanded that be addressed with legislation. Black and Latino legislators have tried for years with limited success to break those barriers, and no governor has ever so clearly sided with them.
Legislators erupted in loud applause when the governor proposed raising the minimum wage to $10 an hour. But when Rauner added “over seven years,” their laughter was even louder, and longer. Democrats appeared to realize that they might’ve fallen for a bait and switch, and it was mostly downhill from that point on.
Much of Rauner’s address was aimed at his campaign enemies. As usual, public employee unions were at the top of his list. “Government must never force its employees to fund activities they do not support,” Rauner claimed. But, by law, state workers are not required to pay full union dues. They are automatically enrolled into what’s called “Fair Share,” which is the portion of dues that funds things like collective bargaining, grievances, etc. They can opt in to full dues, which include funding for things like political work, if they choose.
The Illinois Hospital Association backed Gov. Pat Quinn last year, and Rauner took a clear shot at the IHA last week. “While we currently ban contributions from many businesses with state contracts,” the governor said, “some of the largest recipients of taxpayer money, like hospitals that receive millions from Medicaid, are still able to funnel huge campaign donations to elected officials.” He then called for a campaign contribution ban from “organizations funded by entities receiving state Medicaid funds.”
But hospitals don’t fund the IHA’s political activities, mainly because most are nonprofits and are banned by law from contributing. Pretty much all of the group’s political contributions come from hospital executives.
The IHA was clearly surprised by the gubernatorial shot across its bow. “We’re not sure where this came from,” said an exasperated IHA executive. Not for nothing, but the IHA attempted to atone for its Quinn contributions by donating $100,000 to Rauner’s inauguration fund—and the check was cashed.
By the time he got around to attacking the trial lawyers with a proposal to ban all attorney contributions to judicial candidates, not a single person applauded on either side of the aisle. He waited for a briefly uncomfortable moment, then moved on.
Rauner’s people say he feels “liberated” since the election to say whatever he wants, hence the constant references to his enemies list.
There are those who believe (myself included) that there may be a method to the madness. Under this theory, the governor has planted his flag on a distant economic fringe so that he can drag the General Assembly off its current path. And if he’s eventually willing to compromise and tone things down, it just might work.
But it would’ve been much better for Rauner if he was booed last week. From some I’ve talked to, he may even have wanted that to happen. Being booed by the “entrenched elite” would’ve been a net positive for him with the general public. And legislators might’ve felt bad about booing him once they had time to reflect. Maybe they’d even feel the need to apologize for such a negative reaction.
When people are laughing at you, however, they don’t care what you think and they’re most definitely not listening.
Some rough waters are dead ahead.
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Question of the day
Friday, Feb 6, 2015 - Posted by Rich Miller
* Gov. Bruce Rauner’s administration has just contracted with his new CFO Donna Arduin’s consulting firm for $30,000 a month…
Sole Source Only Justification: The Governor’s Office of Management and Budget is giving notice of its intent to enter into a sole economically feasible source contract with Arduin Associates, Inc. to provide consulting services for continued implementation and necessary adjustment of the State’s 2015 budget to assist in preparing the State’s 2016 budget.
Total Amount of Award: $120,000.00
Length of Initial Term: 4 [months]
Contract Begin Date: 02/02/2015
Contract End Date: 05/31/2015
* Ms. Arduin…
* The Question: Caption?
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* Remember this Tribune story from the other day?…
Starting in 2017, Illinois and other states that also expanded their programs are required to start paying a small portion of the bill, rising to no more than 10 percent of the total tab. State health officials estimated in 2012 that Illinois’ portion of the expansion would cost $573 million from 2017 through 2020.
But far more people signed up in 2014, the expansion’s first year, than the state expected. Based on multiple interviews and a Tribune analysis of government data, Illinois will pay at least $907 million from 2017 through 2020 because of those new members. The tab could surge even higher, though.
A document sent by Quinn’s office to the federal government over the summer significantly raised the per-person estimated cost, bumping the state’s total outlay to $2 billion, using 2014 enrollment numbers, more than three times the original estimate.
* The story was accompanied by this startling graph…
The $882 figure was from a June, 2014 waiver proposal drafted by Gov. Quinn’s office, not the Department of Healthcare and Family Services. That’s crucial to what we’ll get to in a moment.
* The Tribune editorial board thundered from on high…
Two years from now, when Illinois taxpayers start covering a portion of the expansion costs, they’ll be paying far more than the $573 million they were told they’d have to pay from 2017 through 2020. The real cost will be at least $907 million. And a document sent to the federal government last summer by the office of then-Gov. Pat Quinn said that number could swell to $2 billion.
Chalk it up as one more failure of past management that Gov. Bruce Rauner faces Wednesday as he delivers his State of the State address.
* But can those numbers really be correct? Are we looking at almost doubling the per member, per month cost? I reached out to Samantha Olds Frey. Samantha probably knows more about Illinois’ Medicaid program than anyone alive. From her bio…
Samantha Olds is the Executive Director of the Illinois Association of Medicaid Health Plans. Prior to joining the association, Samantha was Speaker Michael J. Madigan’s Human Services & Medicaid budget analyst. During her tenure on the Speaker’s staff, Samantha helped negotiate and craft the Medicaid Reform Act of 2010, the $2.7 billion Medicaid reform package known as the SMART Act of 2012, and the Medicaid Expansion package authorized by the Affordable Care Act in 2013.
The Illinois Association of Medicaid Health Plans represents pretty much all insurers.
* Sam and I talked the other day and she sent me a rebuttal to the Tribune the next morning. I asked her to flesh it out a little more and she sent me this today…
Good Afternoon Rich,
I feel like I am saying the same thing over and over again. Simply that the $882 was not a real number and that the cost is significantly lower than that. I can try to explain more if you would like. It is just that there are a lot of Medicaid experts that I have spoken with and no one has quite been able to get to that high of a cost. We truly do believe it was a number created for negotiation purposes. It was also a projection and not based off of actual costs. In other words, the $882 was the ceiling of what could happen. However, we now have data and are seeing that what actually did happen was that ACA adults cost roughly $300 or less per month. (To put this in context, my exchange plan costs $333 and offers fewer benefits than the Medicaid program.)
1) The estimated cost of $454 to $882 does not in anyway reflect the true costs of Medicaid PMPM [per member, per month] nor does it reflect the cost of ACA individuals. The $882 amount was created by the Governor’s office and not HFS. At this point it is unclear what went into developing the $882. All we know is that in no way shape or form is it tracking with the true cost of the program. I am not a waiver expert, but it is my understanding that in the process of negotiating a waiver the state puts forth as high of costs as possible for the purpose of having a strong starting point. I am also aware that the Chicago Tribune was well aware that the $882 was not reflective of what HFS is seeing as the true cost of ACA adults.
2) I have attached 2 documents that will better reflect that cost. The first is a spreadsheet that tracks the cost of Medicaid since FY03. The other demonstrates what health plans are paid to serve the ACA population. When you look at the averages you see that we are right around $300 per member per month. It is also important to note that this is an average of averages. We have members that cost $100 and disabled seniors that cost thousands.
It is my understanding that the cost of an ACA adult will be roughly $300 per member per month. In fact, HFS is tracking a cost of roughly $230 per member per month right now. However, as the year goes on it is normal to see the later months have a higher cost than the earlier months. Due to this naturally occurring process I suspect we will see a cost of $300 per member per month or slightly lower by the end of the fiscal year. This is 1/3rd the cost of the Tribune’s projections.
3) The $882 was used to put the state in a good position to negotiate with the federal government. It included everything and the kitchen sink in order to draw in more federal resources for the program. It is my understanding that this is normal in negotiations on both the public and private side.
To put it simply, the $882 is not reflective of the cost of the program and it is my understanding that the Department explained this to the Tribune. Medicaid Managed Care Organizations and HFS believe that the average cost of a newly eligible or ACA adult is $300 or less per member per month.
As always, thank you for all that you do and let me know if I can provide any more information.
Warmest regards,
Samantha Olds Frey
Emphasis added to show that, according to Olds Frey, the cost is only about a third of the projected per member per month costs claimed in the Tribune story.
* And as far as the Tribune’s earlier praise for Indiana’s Medicaid cost sharing ideas? Well, Olds Frey had this to say…
Cost sharing for Medicaid clients actually costs the state money. The administrative costs of collecting co-pays and premiums is incredibly high. This is especially true in the Medicaid program when you have union workers spending hours to collect a $20 premium.
Cost sharing for Medicaid clients decreases the quality of care. There is evidence all over the place that shows even a simple $2 co-pay decreases the likelihood of a Medicaid client seeking preventative care. Clearly a copay does not keep a client from getting sick though. Further evidence of this is that most Medicaid MCOs have eliminated copays because they want their clients to seek preventative care out as soon as possible.
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Soft landing for some Quinnsters
Friday, Feb 6, 2015 - Posted by Rich Miller
* Greg Hinz reports on some former Quinn administration PR types…
Abdon Pallasch, who was a deputy budget director, now is the new communications director for Cook County Sheriff Tom Dart.
The Illinois Department of Revenue’s Sue Hofer and health care spokesman Mike Claffey are at City Hall. She’s the new spokesman for Mayor Rahm Emanuel’s budget office, he’s at the Department of Transportation.
Katie Hickey has gone to work for City Treasurer Kurt Summers.
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More bad news for Schock
Friday, Feb 6, 2015 - Posted by Rich Miller
* As if Congressman Aaron Schock doesn’t have enough problems this week. He may have to move soon. From Peoria Public Radio…
Congressman Aaron Schock’s legally-documented residence in the 18th District is listed for sale as a foreclosure.
The congressman’s home address is listed as 222 W. Detweiller Drive on his Federal Election Commission filing dated Tuesday. But a foreclosure listing has been up for more than a week, and the 35 photos posted of the property show what appears to be a vacant home.
The person listed as the last owner is William Boyd.
The five bedroom, six bath home is listed for $2.3 million. The 7,236 square feet of living space is listed as a single family residence, but it’s believed the Congressman has been renting a carriage house portion of the property not registered as a stand alone address.
…Adding… From a PPR reporter…
An update to our story: Congressman Schock says he is still renting the carriage house on the property, only now he pays rent to the bank rather than the previous owner.
* Meanwhile, a lefty blogger put a whole lot of nasty red herrings into his story, but the gist is that a couple of years ago Schock allegedly sold a house to a Cat exec who had contributed a few bucks to Schock’s campaign. The contention is that Schock allegedly sold the place for more than it may have been worth…
Congressman Schock on October 16, 2012 sold his home to the Bahajs for $925,000… Zillow estimates that the house was worth approximately $695,000 that month.
Zillow ain’t always accurate. Just sayin…
I’m not sure at all about that blog piece, campers. I see some real problems with it, including the blogger’s bizarre vitriol. But I figured some of you would post it in comments because it’s being linked all over the place and some have already e-mailed me about it, so I wanted to head you off. Let that one be for now.
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Doing the budget dance
Friday, Feb 6, 2015 - Posted by Rich Miller
* The state’s $300 million shortfall for child care programs took on a human face yesterday during a Senate hearing…
Chandra Ankoor is a 24-year-old single mother from Springfield. While she is working, she sends her three daughters to child care that is partially paid for with the help of the state.
If it weren’t for this assistance, she says it would cost her every dollar she makes, and then some, to afford the cost of child care.
“I will have to look at three little girls’ faces and tell them that there’s no where else for them to go. And I’m facing going from working three or four jobs to possibly being homeless,” Ankoor said.
* So, what to do? An outline from the AP...
Representatives from the governor’s office said Rauner wants lawmakers to grant him wider authority than he currently has to maintain underfunded portions of the budget by reallocating money from other areas that aren’t “critical priorities.” Rauner’s budget director Tim Nuding said the governor’s office wanted the flexibility to address all problems in the current year’s budget.
“We don’t have the … authority to spend another dime until the legislature gives us the authority to do it,” Nuding said. […]
The idea is proving unpopular with some members of the Democratic-run General Assembly, who are concerned about which areas Rauner might cut to reallocate funding elsewhere. They’re also accusing the Winnetka Republican of using some programs, such as subsidized day care, as pawns as he tries to pressure Democrats to give him the broader authority he wants. Rauner has pledged to manage the state’s budget crisis without raising taxes.
* More on the scope of Rauner’s original request…
“It is very broad, what has been put on the table and asked for, very unusual. We have done emergency budget acts before to give flexibility to previous governors (but) nothing in the terms of what has been requested,” said state Sen. Heather Steans, a Chicago Democrat and chairwoman of a Senate budget panel.
* Even so…
House Speaker Michael Madigan, D-Chicago, on Wednesday noted that it would not be unprecedented to give Rauner that authority.
“Prior governors received extraordinary authority from the legislature — (Govs. Jim) Thompson and (Jim) Edgar — in the short term to reduce spending and reduce the level of appropriation,” Madigan said. “I’d be open to those ideas.”
Likewise, Senate President John Cullerton, D-Chicago, said the legislature took similar action during the 1992, 2010 and 2011 budget years.
“Gov. Rauner has asked legislative leadership to work with him on legislation to address the projected $1.5 billion gap in the current fiscal year state budget,” Cullerton said.
He added that the administration is “refining” its request for additional powers.
* Meanwhile…
Republicans said the child care program is just one of many shortfalls they expect to see from the budget mess and Rauner wants the ability to address those programs, too.
State Sen. Chapin Rose, R-Mahomet, said rehabilitation service programs are underfunded and looking for help.
State Sen. Tim Bivins, a Republican from Dixon, said court reporters are also underfunded and could be out of cash by March, creating problems in the court system.
And then, of course, the coming payroll crisis at the state’s prisons.
* WUIS on the governor’s negotiating posture…
Rauner’s people told the committee that keeping the child care program afloat is his top priority, but they warned that it is not the only thing in trouble. “This will not be the last crisis that comes before this committee in FY 15,” Nuding said. He said that the Department of Corrections could be unable to make payroll at some prisons in March or April.
Goldberg and Nuding would not commit to supporting standalone funding for the day care program if a deal cannot be struck on getting their boss control over the budget. And why would they? If they agree to fund programs near and dear to Democrats even if Rauner doesn’t get what he wants, then what leverage will he have in negotiations? That may seem callous, but it is how budgeting often works.
Rauner stands the chance to gain control over the current budget before he even presents his ideas for next fiscal year. From a purely operational perspective, he would be able to move money around and possibly tap special funds to patch the current deeply flawed budget and keep state government going. He would also be able to begin shaping the budget, albeit in limited ways, to his agenda almost immediately. On this issue and the budgeting process at large, one has to wonder if Rauner may be thinking of a quote from his friend Chicago Mayor Rahm Emanuel (which is a riff on a quote from Winston Churchill): “You never let a serious crisis go to waste. And what I mean by that — it’s an opportunity to do things you think you could not do before.”
Agreed.
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* Sun-Times…
The Illinois Senate on Thursday passed an increase in the state’s minimum wage to $11 by 2019, one day after Gov. Bruce Rauner used his State of the State speech to pitch a lower, more gradual increase.
The bill by Sen. Kimberly Lightford, D-Maywood, passed 35-18 and now moves to the House. It increases the minimum wage from $8.25 to $9 by July 1. The wage would then increase by 50 cents every year until it reaches the $11 ceiling. It also includes a tax credit for businesses with fewer than 50 employees. .
* The Tribune claimed the vote could be merely a symbolic gesture…
Senate Republicans criticized the move, saying it was a slight to a governor who indicated he wanted to work with Democrats to raise the wage during his tenure. Rauner says any increase in the wage should be packaged with business-friendly measures such as an overhaul in the workers’ compensation system and limits to lawsuits.
“I would just ask that you take the governor on his word that this is something he is going to deal with, and then we can continue the conversation,” said Sen. Kyle McCarter, R-Lebanon.
Support for an increase remains questionable in the House, where a similar measure stalled last fall. Speaker Michael Madigan, D-Chicago, said he supports the effort and is working to gather votes.
* Some in the business community, however, are pointing to a San Francisco bookstore whose owner supported the living wage concept that is now going out of business. From a letter to its customers…
In November, San Francisco voters overwhelmingly passed a measure that will increase the minimum wage within the city to $15 per hour by 2018. Although all of us at Borderlands support the concept of a living wage in principal and we believe that it’s possible that the new law will be good for San Francisco — Borderlands Books as it exists is not a financially viable business if subject to that minimum wage. Consequently we will be closing our doors no later than March 31st. The cafe will continue to operate until at least the end of this year.
Many businesses can make adjustments to allow for increased wages. The cafe side of Borderlands, for example, should have no difficulty at all. Viability is simply a matter of increasing prices. And, since all the other cafes in the city will be under the same pressure, all the prices will float upwards. But books are a special case because the price is set by the publisher and printed on the book. Furthermore, for years part of the challenge for brick-and-mortar bookstores is that companies like Amazon.com have made it difficult to get people to pay retail prices. So it is inconceivable to adjust our prices upwards to cover increased wages.
The change in minimum wage will mean our payroll will increase roughly 39%. That increase will in turn bring up our total operating expenses by 18%. To make up for that expense, we would need to increase our sales by a minimum of 20%. We do not believe that is a realistic possibility for a bookstore in San Francisco at this time.
$11 an hour ain’t $15 an hour, but you get the drift.
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Strong finance showing for Kirk
Friday, Feb 6, 2015 - Posted by Rich Miller
* Sen. Mark Kirk had a very good fourth quarter…
Kirk raised $621,998 in the quarter that ended Dec. 31, more than twice what he pulled in during the third quarter and a sign that he is serious when he says he expects to run for re-election next year.
A copy of Kirk’s campaign disclosure form is not yet available, but a source familiar with it says it includes donations from 500 individuals and 120 political action committees and other groups. With the new money, the senator will have just over $2 million on hand in his campaign bank account.
Kirk certainly will have to raise a ton more. Insiders expect the 2016 race to cost well over $10 million, and perhaps twice that figure if he faces a top challenge in the GOP primary. But $2 million is certainly a nice place to be more than a year before anyone votes.
* He’s gonna need it and more. National Journal just released its poll of DC “insiders” and Kirk was rated as the second-most vulnerable Senator by both Democrats (26 percent, compared to 27 for Harry Reid) and Republicans (25 percent, compared to 42 for Reid). Comments by some of the Democratic insiders…
“Navy blue state, presidential year, Illinois native at the top of the Dem ticket. Good luck with that, Mark.”
“Illinois presidential turnout is going to make Kirk’s reelection really tough.”
“Recently embarrassed himself on climate change. If he continues to act like he shouldn’t be there, he won’t be.”
“If [Democratic Rep. Tammy] Duckworth runs, Kirk’s No. 1 out the door.”
From the Republicans…
“Illinois, presidential year, health concerns—doesn’t get much worse than that.”
I’m still not convinced that he’s a goner. Having a wealthy Republican governor adds a different dimension to state politics here. But if Rauner’s numbers tank, and Hillary does as well as expected here, and Kirk draws a strong opponent, then, yeah, he’s got his work cut out for him.
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Could this be one reason why?
Friday, Feb 6, 2015 - Posted by Rich Miller
* Gov. Bruce Rauner as quoted by WAWV TV, in Indiana’s Wabash Valley, just across the border from Marshall, IL…
“We’ve been cutting school funding in Illinois for a long time. We’re number 50 out of 50 states,” he said. “We’re dead last on state support for education. That’s wrong and I want to change it.”
I believe he’s referring to here is state support as a percentage of all education spending, including local spending. We’ve been at or near the bottom of that ranking for decades.
That’s kind of a misleading figure because just about all states require local school districts to pick up the full employer pension payment. Illinois picks up that tab, but doesn’t count it as part of its support for schools, which is odd.
* Anyway…
Republican Gov. Bruce Rauner’s call for a two-year freeze on property taxes stems from a a simple truth: Nobody wants to pay more of the most-hated tax of all.
The new governor’s populist proposal figures to be embraced by businesses and homeowners, who have long complained that their property taxes are too high and crave a respite from years of increases.
But local officials whose schools and government operations rely on property taxes worry how they will get by if Rauner’s proposal for a freeze goes through.
“Well, people will try to argue that,” Rauner said at a stop to discuss his initiatives in downstate Troy on Thursday. “But here’s the issue: Our property taxes are too high. We’ve got to bring them down.”
So, if he successfully manages to freeze local levies for two years, and manages to increase state spending on pre-K-12, then Illinois may move up that aforementioned ranking of state support as a percentage of all education spending.
Or maybe I’m reading too much into this.
Your thoughts?
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The long game on unions has come to Illinois
Friday, Feb 6, 2015 - Posted by Rich Miller
* The governor does have a clever retort…
After Gov. Bruce Rauner’s speech [in Mt. Vernon] on Thursday, where he called for improving the state’s business climate, several people began a loud chant, yelling in repetition “union buster” towards the governor as he exited.
During the brief speech inside the Holiday Inn, Rauner said people have been suggesting, based on recent policy statements, that he “hates unions.”
“I don’t hate unions,” he said. “Join a union. Don’t join a union. It’s all good with me.” […]
The governor said his grandfather was a “big union guy”, and he believes one “should be free to join one or not.”
“Why should you be forced to join a union?” he said. “Join if you want to. God bless you. That’s what America’s about – freedom to choose.”
* Indeed, the governor’s response has been poll-tested here by the Illinois Policy Institute…
The August, 2014 poll of 739 Illinoisans had a margin of error of ±3.6 percent.
And when you put it that way, of course people are gonna support the idea. Freedom to choose is, indeed, the American way. But that’s not what this issue is about. Instead, it’s about allowing people in union shops to get all the benefits of union representation without having to pay any dues to their representatives. And then, ultimately, to bankrupt the unions and drive down everyone’s wages.
* A 2013 article published by the Illinois Policy Institute’s site stresses the long-term nature of this fight, using Michigan’s success as an example of a hard-fought, decades-long battle…
An Olympic champion gets the gold by winning the race just before medals are handed out. But that doesn’t explain everything that put the right runner with the right training in the right race at the right moment. It takes tons of heart, gallons of sweat, hundreds of good decisions and many years. Similarly, Michigan’s story of Right to Work is one of endurance and persistence. […]
For Right to Work to move from impossible to inevitable in Illinois, reformers should focus first on the idea phase to create the environment for a future political phase. Starting with the political phase guarantees setbacks because lawmakers usually won’t stick their necks out for an idea the people won’t get behind. That’s why the Illinois Policy Institute is so critical. Like Mackinac, it understands the power of developing an idea in order to make it politically possible.
Not every impossible idea becomes reality, but strategies exist for transforming impossible ideas into reality. Illinois is becoming surrounded by states that are taking on unions to regain control of their fiscal destinies. Chances are it won’t take as long for the Illinois Policy Institute to make Illinois a Right-to-Work state as it took for Mackinac to win its victory.
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* From IEMA…
– Some of the largest earthquakes ever recorded in North America rocked the mostly rural Central U.S. between December 1811 and February 1812, including parts of southern Illinois. The strongest earthquakes in this series were estimated to be around magnitude 8.0, and were felt as far away as the East Coast.
Today, this multi-state region is heavily populated and highly developed. A similar earthquake now would cause widespread devastation to buildings, utilities, roads, bridges and other infrastructure, as well as result in many injuries and deaths. While damage would be less severe in other parts of Illinois, utility outages, road closures and disruptions to deliveries of essential supplies would significantly impact the lives of most Illinoisans.
Recognizing this serious risk, the Illinois Emergency Management Agency (IEMA) and local emergency management agencies will promote earthquake preparedness throughout February.
“Southern Illinois is adjacent to two earthquake zones, so the risk of a major earthquake is very real,” said IEMA Acting Director Joe Klinger. “We can’t predict when the next devastating earthquake will occur, but we can help people learn how to protect themselves and reduce damage to their homes.”
Klinger said people need to remember to “Drop, Cover and Hold On” when they feel the ground shaking. The phrase prompts people to “Drop” down to the floor, take “Cover” under a sturdy desk, table or other furniture, and “Hold On” to the furniture item and be prepared to move with it until the shaking ends.
There are several steps people can take to help prevent injuries and property damage at home, including:
• Strapping water heaters and large appliances to wall studs
• Anchoring overhead light fixtures
• Fastening shelves to wall studs and securing cabinet doors with latches
• Learning how to shut off gas, water and electricity in case the lines are damaged
* But folks up north have little to fear, according to the Tribune…
Seth Stein, a professor of geological sciences at Northwestern University, has written a book about the New Madrid zone disputing much of the talked-about widespread damage of the 19th century earthquakes that hit Illinois.
In Northern Illinois “the hazard is so small” for earthquakes that taking measures like strapping in large furniture is probably unnecessary, Stein said.
“If you were going to spend a dollar on a restraining strap, I’d buy a lottery ticket,” Stein said.
On the other hand, he said, folks in a place like Carbondale at the southern tip of the state may want to consider taking such steps. Even there, though, “the risk (of a substantial earthquake) is not huge.” […]
Stein says it’s unlikely an earthquake as strong as the ones in the 19th century could hit Illinois again in the next hundreds of years. Even if one did, Northern Illinois would likely face little, if any, damage, he said.
“The more you know about it, the less you worry about it,” Stein said.
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* From a press release…
Governor Bruce Rauner and U.S. Senator Mark Kirk (R-Ill.) [yesterday] released the following statement on the U.S. Department of Energy’s decision to end federal funding of FutureGen, the public-private clean coal project in Meredosia, Ill.:
“We are thoroughly disappointed in the Administration’s decision to hastily end the bipartisan FutureGen project. This decision will block advancements in clean coal and more than 1,000 new jobs in Central Illinois. We will not give up on this state-of-the-art technology and bringing new jobs to the state.”
* The administration’s explanation…
Spokesman Bill Gibbons with the federal agency told The Associated Press the department concluded the project couldn’t meet a September deadline to use its $1 billion in federal stimulus funding.
A spokesman for the FutureGen Alliance said the group has no choice but to shut down because it can’t finish the $1.65 billion project without federal funding.
* Another press release…
U.S. Reps. Rodney Davis (R-Ill.), John Shimkus (R-Ill.) and Aaron Schock (R-Ill.) [yesterday] expressed concern over the U.S. Department of Energy’s decision to end federal funding for FutureGen, a public-private project to retrofit a coal-fired power plant in Meredosia, Ill.
“This week’s announcement by the DOE to abandon FutureGen is another example of wasted stimulus funds and another failed attempt to create ’shovel-ready’ projects,” said Davis. “The administration has failed the people of Central Illinois by wasting hundreds of millions of dollars invested by taxpayers and the private sector. Instead of making it more difficult for companies to create good-paying, energy jobs, the administration should support policies that help companies working to ensure coal remains a viable source of energy for the future.”
“By the Obama Administration’s own estimates, compliance with EPA’s carbon rules hinges on the widespread adoption of carbon capture and sequestration (CCS) technology by coal-fired power plants,” said Shimkus. “It’s incomprehensible that the Administration is, with one hand, requiring coal plants to use CCS while, with the other hand, pulling the plug on a plant designed to demonstrate the technology.”
“The DOEs determination that the FutureGen Project is no longer viable is yet another example of the Obama Administration’s failure to deliver on promises made to the American people during debate of the $1 trillion stimulus.” said Schock. “What is clear is that the administration’s regulatory hostilities to coal-fired power have made it more difficult for investors to regard opportunities like FutureGen as either viable or profitable.”
* Bloomberg…
The Energy Department spent $202 million on the Meredosia, Illinois, plant about 90 miles north of St. Louis.
Investors, however, remain wary of carbon capture projects, which are unproven even as the federal government has spent billions of dollars to make the technology economically viable.
The projects aren’t a “destination for serious financial commitment,” Christine Tezak, an energy analyst at ClearView Energy Partners LLC in Washington, said in an e-mail.
That’s bad news for tackling climate change. While wind and solar power gain market share, they still represent just a fraction of power production. Coal produced about 38 percent of the electricity used in the U.S. in November, the last month figures are available, according to the U.S. Energy Information Administration, which tracks and analyzes federal energy data.
“If we are to have any hope of avoiding the worst aspects of climate change, we need CCS on a whole host of things” from coal plants to factories, Thompson said, referring to carbon capture and storage or sequestration.
* US Sen. Dick Durbin…
U.S. Senator Dick Durbin (D-IL) today released the following statement after learning that the Department of Energy has been forced to cancel federal funding for the FutureGen project due to the FutureGen Alliance’s failure to find agreement with the private partners before the expiration of the $1 billion in funding that was secured for the public-private partnership as part of the American Recovery and Reinvestment Act.
“The Secretary of Energy informed me that because the FutureGen Alliance was unable to secure the private financing necessary to meet the conditions of the project, the Department of Energy has been forced to end their participation. This is a huge disappointment for both Central Illinois and supporters of clean coal technology.
“A decade-long bipartisan effort made certain that federal funding was available for the FutureGen Alliance to engage in a large-scale carbon-capture demonstration project. But, the project has always depended on a private commitment and can’t go forward without it.
“I worked on FutureGen 2.0 believing it would create jobs in Illinois and demonstrate a viable environmentally acceptable use of coal to generate electricity. I am encouraged by the news that the Department of Energy values the injection site in Morgan County as a world class sequestration opportunity. I am hopeful that Illinois will continue to play an integral role in developing this technology.”
Since it was awarded to the State of Illinois in 2007, the FutureGen project has faced a number of challenges including reimagined technology and site relocation. Throughout the course of the project, Durbin has worked to protect the federal funding which required a private contribution organized by the FutureGen Alliance. Recently, the FutureGen Alliance ran into financial hurdles that they have not been able to overcome, such as trouble securing a private-sector loan, difficulty with two major industry partners (Air Liquid and Babcock & Wilcox) and challenges from the Sierra Club and Illinois utilities.
So, there’s a statutory deadline for using that money and Congress hasn’t yet extended the deadline. This could just be a way to prod the House and Senate to pass a bill. But the Bloomberg piece seems to indicate that investors aren’t exactly excited about the whole idea.
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