* I told subscribers about this development earlier today…
Gov. Bruce Rauner’s office has instructed state agencies to begin diverting “fair share” fees from nonunion members’ paychecks away from unions.
A memo obtained by The Associated Press directs departments to create two sets of books to do it. […]
The money now will go to agency accounts rather than unions. The American Federation of State, County and Municipal Employees union calls it a “legally questionable scheme.”
Rauner spokeswoman Catherine Kelly says the administration is “confident in the process laid out.”
The governor issued the executive order to seize the fair share fees more than two months ago.
Unless the AP or another outlet fleshes this out a bit, you’ll have to subscribe to learn more.
*** UPDATE *** The AP has now posted a longer story. From that piece…
The [Rauner legal] memo said Republican Comptroller Leslie Munger, who earlier refused to go along with Rauner’s proposed escrow account, “provided the method” for the plan, which a Munger spokesman said is not correct.
These guys are really something else.
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Senate overwhelmingly backs Meeks appointment
Thursday, Mar 19, 2015 - Posted by Rich Miller
* Just one Senator voted against the confirmation of former state Sen. James Meeks today. Equality Illinois isn’t happy…
Equality Illinois today denounced Rev. James Meeks’ confirmation as Chair of the Illinois State Board of Education, expressing frustration at his refusal to repudiate his discriminatory positions prior to his confirmation by the Illinois Senate.
Meeks has a long record of making hateful public comments about the LGBT community, and his active attempts to deny our families the freedom to marry are well known, as are his demeaning comments about women and members of the Latino, Asian and Jewish communities.
“We had hoped and expected Rev. Meeks to use the more than two months since his appointment to reflect on and make amends with the LGBT community and other groups for his hurtful and destructive actions,” said Bernard Cherkasov, CEO of Equality Illinois, the state’s oldest and largest advocacy organization representing lesbian, gay, bisexual and transgender Illinoisans.
“Instead, we’ve seen nothing tangible from him. We are obligated by our responsibility to LGBT Illinoisans, the other groups whom he offended and our allies to denounce his statements and his unwillingness and refusal to recognize them for the hate language that they are.
“Without a pledge from Meeks that he would abide by the state’s nondiscrimination and anti-bullying laws or a commitment to affirmatively challenge discriminatory actions in the schools, we are not assured that he will look out for all of Illinois’ school children,” Cherkasov said. “It is now up to the Rauner Administration, the General Assembly and the other members of the State Board of Education to ensure that Meeks’ wrong-headed views about the diversity of Illinois do not seep into education policy. Equality Illinois and our partners will remain vigilant, and we will work with our allies to ensure equal treatment for all Illinoisans.”
Thoughts?
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Utilitypalooza!
Thursday, Mar 19, 2015 - Posted by Rich Miller
* AT&T has a big Telecom Act rewrite in the hopper, Exelon has its hands out to keep its nuke plants open, the alt energy folks have a bill and now ComEd is getting into the act…
ComEd’s bill, to be introduced by Sen. Kimberly Lightford, D-Maywood, and Rep. Bob Rita, D-Blue Island, is designed to foster growth in clean energy like solar power for households and micro-grids providing greater reliability and resiliency to sensitive facilities like the Federal Aviation Administration’s air-traffic control center in Aurora.
ComEd also proposes a $100 million program to build 5,000 Chicago-area charging stations to increase demand for electric vehicles.
The bill would boost ComEd’s bottom line in the future as decreased customer demand for power hits its revenues by permitting the utility to profit on its state-authorized energy efficiency program. Currently, ComEd only charges ratepayers to reimburse it for its costs in running the program. […]
In addition, the bill would overhaul how ComEd’s power-delivery rates are set. Currently, customers pay delivery rates mainly based on how much power they consume in a month. Beginning in 2018, they would pay based on how much electricity they consume during the highest-demand days of the year. Some customers would benefit and some would pay more under the new system, but ComEd hasn’t yet determined how it would affect individual types of households. But it would help ComEd by making its cash flow more predictable, executives said.
As Dave Kolata at Cub said, that’s a whole lot of asks.
* From the Environmental Law & Policy Center…
“Illinois consumers are poised to gain the job creation, environmental quality and economic benefits of competing new clean energy technologies and suppliers.
“Unfortunately, Exelon’s and ComEd’s legislative proposals would raise utility bills for most consumers, create barriers to competition, and constrain energy efficiency and diverse solar energy development for the future. ComEd’s legislative proposal forecloses flexibility that Illinois needs to transition to a cleaner energy future and locks out competitors.”
“The Illinois Clean Jobs Bill brings Illinois into a more positive energy future. Illinois policymakers should move forward promoting new innovative technologies, instead of Exelon’s and ComEd’s old monopoly approach that raises consumer’s electricity bills and imposes regulatory barriers that create more problems than positive solutions.”
* From ComEd’s lengthy press release…
The legislative package features a proposal to construct microgrids, which are small power grids that can connect to the main grid or operate independently, reinforcing reliability and resiliency during extreme weather or other events. HB3328/SB1879 would enable ComEd to invest $300 million in six microgrids that will service public facilities and infrastructure that are integral to healthcare, homeland security, transportation and water services. The microgrid program would also create at least 300 full-time equivalent jobs. […]
While current Illinois law allows homeowners to generate their own solar power and sell excess power back to the grid, apartment dwellers and others without suitable space or those who can’t afford the investment cannot enjoy the benefits of owning renewable generation. ComEd’s legislative proposal would expand access to solar power to all types of homeowners from all income levels by encouraging development of community solar projects. It would require utilities to offer Meter Aggregation, which makes use of digital smart meter technology to create a “pool” of community-based solar power that can be shared by multiple customers. To ensure the equitable sharing of grid costs, utilities would recover residential delivery costs through a combination of charges, including a demand charge, that better reflect how the grid is used and makes sure low-income customers aren’t subsidizing those who can more easily afford solar energy and other new grid uses.
Etc.
* The problem for all these bills is that the legislative system is very top-down. Leaders and staff can only do so much, and they aren’t willing to farm out important stuff like these to committee chairmen. And since the budget crisis will consume much of their time, they’re going to be spread pretty thin.
But, hey, who knows? Exelon doesn’t have anywhere near the political juice possessed by ComEd, so its alt energy ideas might start winning the day over the other one currently on the table.
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AFP going “aggressive” this spring
Thursday, Mar 19, 2015 - Posted by Rich Miller
* Riopell…
Americans for Prosperity, a national conservative organization with an Illinois arm, plans an “aggressive” advertising and mail push this spring to try to influence suburban Democrats, in particular.
Illinois Director David From says the campaign will likely focus on budget and tax issues largely in support of Republican Gov. Bruce Rauner’s proposals. The ads likely will urge voters to contact their representatives to push those views.
“We want to really be kind of aggressive,” From said. […]
The effort will be statewide, but From said he thinks about 75 percent of resources will focus on the Chicago area. That’s because the suburbs are home to the state’s largest number of swing legislative districts, where Republicans need to make inroads in 2016 if they want to cut Democrats’ majorities in Springfield.
We’ll see how aggressive they get, but keep in mind that Gov. Rauner won a lot of suburban and Downstate Democratic districts last year.
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Real Costs
Thursday, Mar 19, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Recently, ads on Capitol Fax have distorted the facts about the Illinois Low Carbon Portfolio Standard (LCPS) (HB 3293/SB 1585). Let’s set the record straight.
Myth: “This LCPS will cost consumers $1.5 billion over five years. Just let the plants close.”
Fact: The cost to Illinois consumers will be TWELVE TIMES as expensive if Illinois’ nuclear plants close.
The closure of three of Illinois’ six nuclear facilities could cost the state:
• $1.8 billion every year in lost economic activity
• Nearly 8,000 highly skilled jobs.
• More than $300 million every year in higher energy costs statewide
• $1.1 billion per year due to increases in carbon and other pollutants
• Hundreds of millions of dollars to construct new transmission lines
Illinois consumers and communities cannot afford these catastrophic losses and added costs. The Illinois Low Carbon Portfolio Standard (HB 3293 / SB 1585) is a market-based “all of the above” energy plan for our state that would help preserve Illinois’ nuclear facilities.
Illinois nuclear energy facilities are essential low-carbon, economic engines for our state, providing the following benefits:
• 90 percent of Illinois’ carbon free power
• 28,000 jobs across the state (directly and indirectly)
• Nearly $9 billion into the Illinois economy annually
The Low Carbon Portfolio Standard is good for Illinois consumers, our economy and our environment. Members of the Illinois General Assembly:
VOTE YES ON HB 3293 / SB 1585
Learn more at www.NuclearPowersIllinois.com
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Editorial: “Don’t fall for Exelon bailout”
Thursday, Mar 19, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Editorial boards are sounding the alarm about the Exelon bailout bill.
Crain’s Chicago Business: “THIS ‘MARKET SOLUTION’ ONLY BENEFITS EXELON”
You know you’ve got a good thing going when profitability is only a bailout away…
Bailouts for profitable enterprises? That’s not the kind of juice that ratepayers should be shelling out for.
Chicago Sun-Times: “EXELON MUST MAKE CASE FOR BAILOUT”
Not so long ago, Exelon…was extolling the merits of an open market for power as its profits rolled in. Now, with power prices plunging, Exelon has lost enthusiasm for the open markets it championed in the 1990s and wants the Legislature to devise a new formula that will protect its profits, quite likely driving up utility bills for homeowners and businesses.
If Exelon is hard up, they can show us. The company should open its books to show how its nuclear fleet is performing.
What’s good for Exelon doesn’t much matter if it’s bad for the rest of Illinois.
Belleville News Democrat: “DON’T FALL FOR EXELON BAILOUT”
Good old Exelon. The company has come up with legislation to subsidize its nuclear reactors, get electric users throughout the state to pay for it and claim it’s in the interest of clean energy.
State lawmakers need to see this bill for the dirty trick it is and kill it.
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Question of the day
Thursday, Mar 19, 2015 - Posted by Rich Miller
* I stopped by House Speaker Michael Madigan spokesman Steve Brown’s office yesterday and he asked if I would promote his annual SIU sports party, which has been renamed to honor the late Gene Callahan…
I wasn’t sure if I could, but said I’d think about it.
* We changed the subject to Aaron Schock’s political demise. Brown related a funny story about how he’d approached Sen. Darin LaHood in the Rotunda and told the congressional hopeful that he also lived in Schock’s district, has voted Republican in the last two primaries (there are no Dems to vote for in his local primaries) so he was thinking about running - as a Republican.
What did LaHood do? I asked.
He got a funny look on his face.
* And then a friend of Brownie’s, former House staffer and current lobster extraordinaire Liz Brown, sent me this today…
They’re not really cousins, but it’s a funny inside joke.
* The Question: Are you down for Brown? Take the poll and then explain your answer in comments, please.
survey hosting
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Ask the Insurance Industry “Where’s the money?”
Thursday, Mar 19, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Two recent studies published by NPR/Pro Publica and the federal Occupational Safety and Health Administration (OSHA) show that nationwide, insurance companies have kept any cost savings from recent workers’ compensation “reforms” for themselves, with profits climbing to 18 percent in 2013 – while middle and lower-income families and taxpayers are paying the price.
In 2011 Illinois enacted its own workers’ compensation “reform” package aimed at lowering costs for businesses. Workers gave up longstanding rights and in return, insurance companies were to be transparent with pricing and pass savings along to employers. As it turns out, only the workers kept up their end of the bargain.
The National Council on Compensation Insurance (NCCI) is an independent, non-partisan agency comprised of insurance professionals licensed by the Illinois Department of Insurance to assess workers’ compensation in Illinois and make premium rate recommendations to insurers. Since 2011, NCCI has recommended insurance premium reductions totaling nearly 20 percent.
The 2011 reforms were projected to save insured employers nearly $1 billion assuming the insurance industry would fully adopt the NCCI recommendations.
The insurance industry’s failure to fully implement NCCI recommended rate reductions has prevented Illinois insured employers from realizing any meaningful savings.
No matter how many benefits are cut, medical reimbursements are lowered, and claims are denied, the state’s businesses won’t see corresponding savings without our leaders addressing the promises previously broken by the insurance industry.
For more about workers’ compensation, click here.
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Schock’s father speaks again
Thursday, Mar 19, 2015 - Posted by Rich Miller
* The AP’s Kerry Lester caught up with Congressman Schock’s dad yesterday…
Illinois Congressman Aaron Schock’s father says the facts will “convict or exonerate” his son.
Richard Schock is a Peoria doctor. He told The Associated Press Wednesday that recent investigative reports on the 33-year-old congressman’s lavish spending and improper expense reporting were “untrue” and “absolutely ridiculous.”
You can also watch ABC7’s complete interview with Schock’s father by clicking here. And make sure to watch the whole thing. It’s very raw and occasionally heartbreaking. I feel bad for the guy. The son? He’s on his own now.
* Meanwhile…
At the close of the last reporting period on Dec. 31, the Peoria Republican, whose district includes part of Springfield, had more than $3 million in the various funds he controls, from his actual campaign account to his political action committees.
The majority of that, nearly $3.3 million, is in his official Schock for Congress campaign fund. Far smaller amounts adding up to about $60,000 are in his GOP Generation Y and Schock Victory Fund accounts. […]
If Schock chooses to continue the inquiry into any of his campaign spending and whether past reports need to be adjusted to account for some of the expenditures on trips or other matters that have come up in the last six weeks, he can continue to pay the individuals he hired with his campaign cash to work on that as well.
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Farnham gets 96 months
Thursday, Mar 19, 2015 - Posted by Rich Miller
* Farnham asked to die peacefully at home. That won’t happen. From a US Attorney’s office press release…
FORMER ILLINOIS STATE REPRESENTATIVE KEITH FARNHAM SENTENCED TO NINETY SIX MONTHS FOR TRANSPORTING CHILD PORNOGRAPHY
Former Illinois State Rep. KEITH FARNHAM was sentenced to ninety six months in prison today by U.S. District Court Judge Edmond E. Chang as a result of his conviction of transporting child pornography via computers in his office and residence in Elgin last year. Farnham resigned his seat in the Illinois General Assembly in March 2014, less than a week after federal agents seized computers from his home and office.
Farnham, 67, of Elgin, was also ordered to pay a $30,000 fine. Farnham was ordered by Judge Chang to report to prison on May 19, 2015. Farnham will remain on a bond that restricts him to his home and requires around-the-clock electronic monitoring. “This is a despicable crime.” said District Court Judge Chang while imposing sentence. “The sex assaults of children in each of the 2700 images represent their own nightmare.”
Farnham pled guilty in December 2014, admitting that on November 25, 2013, he sent an email from a computer in his Elgin office with the following message: “do you trade. This is what I lik.” Farnham attached two files to the email that he knew contained child pornography. In addition, he possessed images and videos depicting child pornography on computers and electronic storage devices in his residence, car, and offices.
During the course of the investigation, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed federal search warrants at Farnham’s state office and residence in Elgin and seized computers and electronic storage devices. On the day the warrant was executed in March 2014, Farnham possessed no fewer than 2,765 images of real minors engaged in sexually explicit acts, including sexual intercourse, with prepubescent children. Some of the images involved sadistic or masochistic conduct and depictions of violence, according to Farnham’s guilty plea. According to the court documents, HSI agents were investigating information received from the HSI Cyber Crimes Center that an email address, later linked to Farnham, was being used to trade child pornography on the Internet.
“The defendant’s criminal conduct extends far beyond simply viewing sexually explicit photographs online. The defendant actively traded and bartered images and videos depicting child pornography, bragged to others about his own hands-on sexual abuse and exploitation of a six-year-old girl, and actively hid his tracks from law enforcement in order to continue his criminal conduct,” the government stated in its sentencing memorandum. “As an elected official, the defendant held himself out as being concerned about ‘protecting your children on the internet’ at the same time, however, he led another life, surfing the internet and message boards for sexually explicit images and further victimizing children of sexual abuse and exploitation.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago.
The government was represented by Assistant U.S. Attorneys Timothy Storino and Michelle Petersen.
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* Jim Muir writing in the Southern Illinoisan…
The Illinois Policy Institute, a non-partisan and well-respected organization, recently completed an exhaustive study about the five major public employees unions in Illinois. It’s titled: “Anatomy of Influence: Government Unions in Illinois.” The numbers are eye-opening to say the least.
Since 2002, public employee unions in Illinois have contributed $46 million in direct political contributions. Obviously, unions are not dropping that kind of cash on politicians because they have a pleasant personality. Clearly, it’s an investment and when you consider that Illinois taxpayers have made millionaires out of many, many public union employees, it was a good investment. Bad for taxpayers, but good for unions.
Interestingly, during that same time frame, from 2002 through 2014, Democrats controlled the House, the Senate and the governor’s mansion and, according to the report, 85 percent of that $46 million went to … you guessed it … Democrats.
Let me say again, I’m pro-union. But the system I’ve detailed today has nothing to do with anti-union or anti-labor. It has to do with a system that is badly broken and borders on veiled corruption. It’s a system that has to be fixed, period.
Discuss.
*** UPDATE *** From our old pal Kent Redfield…
Hi Rich,
A little perspective on the IPI Public Sector Union Contributions story.
Since 1/1/2002 Rauner ($40 million) Griffin ($17.1 million) and Uihlein ($7.8 million) have made $64.9 million contributions (not all to statewide and legislative races, but most of it, and most of it to Republicans).
It has been a couple of cycles since I looked at an overall break down of money coming into Illinois politics by source, but historically for contributions you can classify the split has been 60% business, 25% unions and 15 professional (doctor, lawyers, CPA, etc.). These are broad categories, but they give you a sense of what is going on. Because of the large amount of money from Rauner, Griffin and Uihlein in 2013-2014, the overall percentage from business is probably up, even with the counter surge from labor in independent expenditures.
Take care, Kent
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Take a chill pill, dudes
Thursday, Mar 19, 2015 - Posted by Rich Miller
* The acute fearful paranoia of some concealed carry enthusiasts has always troubled me…
Gun proponents convened for their annual Illinois Gun Owners Lobby Day and cited personal protection as a reason for expanding concealed carry.
“Predators look for places people are unarmed,” said Dawn Waters, a Lombard resident.
If there are signs outlawing concealed weapons in certain areas, residents without guns become open targets for predators, said Waters, who said she is a firearms instructor.
“Everyone there using public transportation, going to forest preserves, they’re in trouble. They are sitting ducks,” Waters said.
I’ve reported in Iraq and Kosovo and occasionally felt like a sitting duck. But never in Lombard.
* And the over the top “Sky is falling!” rhetoric by the anti-gun crowd is almost as silly…
“They’re not going to stop until they have virtually everyone carrying guns virtually everywhere in the United States,” said Brian Malte, National Policy Director for the Brady Campaign to Prevent Gun Violence.
Oh, for crying out loud. What a goofy thing to say.
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Ah, how times change
Thursday, Mar 19, 2015 - Posted by Rich Miller
* From a September 3, 2010 letter sent by then House GOP Leader Tom Cross and Senate Republican Leader Christine Radogno …
Dear Governor Quinn:
We want to express our staunch opposition to any attempt to tap into the Motor Fuel Tax Fund or the Road Fund as part of your plan to inter-fund borrow $1 billion to cover state operating expenses. As you recall, we opposed SB 3660, the legislation that grants you the authority to transfer funds out of dedicated funds to pay for normal government operations. We continue to believe that the diversion of road funds from their intended purposes is not good public policy and is, in fact, counterproductive.
To release a portion of the local road component funding from the capital bill, and then subsequently sweep a similar amount of cash from the Motor Fuel Tax Fund or the Road Fund, would seem to negate the benefits of the capital bill funding.
As you know, we worked cooperatively with all members of the legislature and your Administration in a bipartisan fashion to pass the capital bill in order to enhance Illinois’ infrastructure, to create jobs and foster economic development. Maintaining and improving this state’s roads and bridges is a vital component of achieving those goals.
The Motor Fuel Tax Fund has not been swept since FY 04 and to restart this practice during these challenging economic times does not make for good policy. There was a strong understanding as part of the creation of the capital bill to stop the practice of diverting road funds for other purposes. We believe that sweeping the Road Fund or the Motor Fuel Tax Fund would violate that commitment.
We believe that road funds should be used to patch holes on roads and bridges, not to patch holes in the state’s operating budget.
* At the time, the Road Fund contained nearly $480 million - which is about the projection for the fiscal year ending fund balance this year. The governor’s office back then said Quinn had no plans to raid it. Mainly because Downstaters were particularly concerned…
Tapping into the road fund is particularly controversial downstate because a majority of the money has gone to communities outside the six-county Chicago area. From 1999 to 2007, road fund expenditures downstate ranged between 56 percent and 68 percent, according to a May 2009 Legislative Research Unit report. […]
State Sen. Larry Bomke, R-Springfield, said if the funds were raided to shore up the general revenue fund, downstate would lose.
“The bulk of that money (the general revenue fund) is going to support things in the upper part of the state,” Bomke said. “Most people believe when they buy a gallon of gas they know so much of it is going to federal or state road fund, and they expect that money to be used for roads, not general purposes.”
And, keep in mind that Quinn only wanted to borrow from the Road Fund, not permanently sweep the cash.
* OK, let’s fast-forward to today. I also told subscribers this morning about this part of the proposed Fiscal Year 2015 fix (plus other stuff). Kurt Erickson…
Under one provision of a still-developing package to fix the current state budget, lawmakers would give Gov. Bruce Rauner the power to use as much as $250 million of the road fund for general state purposes.
The Republican leaders now support that permanent sweep.
* So, what changed?…
“I think people realize we’ve got to do something and we’ve got to do it quickly. Extraordinary times require extraordinary measures,” Radogno said. “We are in unprecedented times and we’ve got to do something to stem the bleeding.”
Asked what has changed in five years, Radogno suggested that a Republican victory in the governor’s race last November is playing a big factor.
“What’s different now is that there is confidence now that we’re going to do a really tough but a one-time fix here and get on the road to solvency,” Radogno said.
Just as a reminder, five years ago the state’s coffers were in absolutely horrible shape. Those were pre tax hike times and pension payments were rising fast.
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