* From a press release…
House Speaker Michael J. Madigan announced Thursday that he will schedule a vote on Gov. Bruce Rauner’s proposal that would hurt the ability of workers to have an outside party advocate on their behalf. Madigan is urging the governor to file formal legislative language for his measure.
“Taxpayers and their elected representatives need to see the details of Governor Rauner’s plan so they can decide how it will impact Illinois’ middle-class families,” Madigan said. “The financial security of middle-class families and others struggling to make ends meet will be affected by his proposal. We owe it to them to make sure the governor’s idea gets a full hearing.”
Madigan will schedule a House floor vote on the governor’s proposal for Thursday, May 14. Rauner first spoke about his proposal as governor in Decatur on Jan. 27 – 100 days ago. With 24 scheduled days left in the Legislature’s spring session, Madigan encouraged the governor to introduce legislative language for the plan he has campaigned for at stops across the state.
“The governor’s proposal will have a significant impact on middle-class families across Illinois,” Madigan said. “By putting the governor’s proposal to a vote, legislators will have the opportunity to ensure the voices of the middle-class families in their districts are heard.”
*** UPDATE 1 *** Illinois AFL-CIO President Michael T. Carrigan…
“The governor has spent a lot of time and effort attempting to sell right to work in Illinois. The facts are clear and undisputed. Right to work undercuts wages and benefits for all workers. If Gov. Rauner truly believes economic development is achieved by pushing even more people out of the middle class, then it’s time to have a vote on it.
“We urge state representatives to oppose this anti-middle class measure. Then Rauner can, hopefully, move on to acting like a leader and seeking real solutions to our most pressing problems.”
*** UPDATE 2 *** IFT…
Following news that Speaker Madigan has scheduled a vote on Governor Rauner’s so-called “right-to-work” proposal, the Illinois Federation of Teachers (IFT) released the following statement:
“We urge the legislature to follow the lead of the 95% of citizens, represented through their city councils and county boards, who have already rejected Governor Rauner’s misguided proposal,” said Dan Montgomery, President of the Illinois Federation of Teachers. “The Governor’s push for these so-called reforms don’t make a dime of difference to the state’s fiscal challenges, and holding the budget hostage unless the legislature agrees to injure ordinary families is revolting.
The Governor’s roadshow has been an irresponsible distraction from our state’s real challenges. We hope putting this up for a vote will demonstrate, once and for all, that the overwhelming majority of Illinoisans want Governor Rauner to stop campaigning, and start governing.
In the meantime, we are going to continue doing what we have always done – standing up for working families who don’t have billions of dollars to make their voice heard, or corporate tax loopholes that excuse them from paying their fair share.”
Numerous studies have shown that so-called “right-to-work” laws drive down wages and increase inequality for all workers, not just those represented by a union.
*** UPDATE 3 *** From Lance Trover at the governor’s office…
The administration continues to negotiate in good faith over the governor’s turnaround agenda and will remain at the table as long as it takes.
If House Democrats want to walk away from the negotiating table and vote on a proposal before there is bipartisan agreement that the material is ready to be introduced in committee, then they should start with a constitutional amendment to impose term limits on legislators.
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It’s just a bill…
Thursday, May 7, 2015 - Posted by Rich Miller
* But, man, I hope this passes…
Legislation that would make the possession of small amounts of marijuana punishable by a fine has been approved by an Illinois Senate committee.
Officials say Senate criminal law committee members passed the measure in a 9-3 vote on Wednesday. The legislation’s sponsor, State Representative Kelly Cassidy, says it would help prevent discrimination of enforcement based on race. The bill passed the Illinois House last week.
It could, however, simply be a stalking horse to convince the governor to sign the medical marijuana pilot project extension into law.
* Probably not a bad idea at all…
A suburban lawmaker’s proposal in Springfield could put a halt to the creation of new units of local government in Illinois.
State Sen. Michael Connelly, a Lisle Republican, says the proposal would put a four-year moratorium on the state’s ability to create new layers of local government.
Originally proposed by state Rep. Jack Franks, a Marengo Democrat, the bill would apply statewide “except a unit created as a result of combining, consolidating or annexing previously existing units of government,” Connelly said.
* AP…
A state lawmaker wants to undo a portion of Illinois’ concealed-carry law that prevents cities from banning assault weapons.
Sen. Julie Morrison said her legislation is in response to a federal appeals court ruling last month that upheld Highland Park’s ban. The Deerfield Democrat said her measure would allow other cities to prohibit assault weapons.
“This is about local control,” she said.
Illinois’ 2013 concealed-carry law included a provision that gave local governments a 10-day window to enact their own assault weapons bans.
* If it’s passed and signed into law, this could wind up making some folks happy…
Legislation to provide $63 million in back wages owed to state workers is heading to the Illinois Senate.
The Senate executive committee approved the measure on a voice vote Wednesday. The House passed it last month.
The money is for raises approved for unionized workers in 2011. Former Gov. Pat Quinn later reneged on the raises, saying the Legislature hadn’t appropriated enough money.
* I’m not sure what I think of this. I don’t like government interference in the arts, but when you take the money, I suppose you sometimes have to pay the piper, or however that saying goes…
If movie director Spike Lee insists on maligning Chicago by calling his upcoming movie on black-on-black violence “Chiraq,” he should forfeit the right to a $3 million tax break he wants, a South Side alderman said Wednesday.
Ald. Will Burns (4th) took the municipal angst over Lee’s working title to a whole new level in a way that could run afoul of the First Amendment.
He introduced a resolution at the last City Council meeting before new aldermen are sworn in calling on the Illinois Film Office to reject Lee’s application for a $3 million film production tax credit if he chooses to name the film “Chiraq.”
“There’s nothing anti-First Amendment about it at all. If he wants to name the movie `Chiraq’ and film it in the city of Chicago, he should be able to get the permits for that and he should be able to do it. But we shouldn’t give him money as taxpayers to brand a part of the city as Iraq. That doesn’t make sense,” Burns said.
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Question of the day
Thursday, May 7, 2015 - Posted by Rich Miller
* Chuck Sweeny…
In deciding to please the barnstormin’ reformin’ Republican governor, did aldermen raise the ire of the powerful Democratic speaker of the House, Mike Madigan? Democrats control both the House and Senate by substantial majorities.
“When you have the speaker upset, that’s never a good thing,” said state Rep. John Cabello, R-Machesney Park.
But is the speaker really angry at Rockford because of the actions of eight aldermen? Here is what Rich Miller’s Capitol Fax had to say about the situation, leading off with, “No casino for you.”
“Mayor Rahm Emanuel has renewed his push for a city-owned casino and Rockford has long been in the mix for its own riverboat if a deal should ever happen. But the Rockford City Council recently passed Rauner’s Turnaround Agenda resolution, calling on the Legislature to give it the power to create local right-to-work zones, among other things. That vote apparently did not go down well with the House speaker, who has long had a soft spot in his heart for Rockford, the home of Madigan’s late political mentor Zeke Giorgi.”
Capitol Fax added, “Some of the towns which passed the resolution were clearly hoping to curry favor with a governor who wants to slash their state revenue sharing in half. But Governor Rauner isn’t the only person who can play hardball at the Statehouse.”
Well, that’s the understatement of the decade. I put my question to Steve Brown, Madigan’s longtime spokesman: Would Madigan really punish the third-largest city in Illinois by denying it a casino license because of eight aldermen?
“I wouldn’t try to take it to that extreme,” Brown said. “In past years, the speaker has generally recused himself form speaking on gaming expansion. Mike Madigan’s general attitude and his record is one of being helpful to Rockford whenever it is possible, and I see no reason why that would change.
“I don’t know that the speaker has an opinion on the actions of the city of Rockford. I know that (Rockford-area) legislators were very disappointed the City Council took that action. So he’s heard that. Most cities around the state have either rejected the (Turnaround Agenda) or voted on modified versions. There hasn’t been widespread support because of the overall negative outlook for cities.”
* That’s not quite what I wrote…
NO CASINO FOR YOU? In yet another sign that the governor’s anti-union agenda is under siege at the Statehouse, could the City of Rockford possibly be in danger of losing its place at the table if gaming expansion negotiations proceed?
It was a warning, issued privately through back channels, I’m told, not a direct threat. There’s a difference, and I didn’t (and still don’t) know for sure if Rockford will lose out, which is why both the headline and the first graf were written as questions, not declarative statements.
But the fact that Madigan (and Senate President John Cullerton) can also play some hardball is a point that is being lost on some municipalities. So…
* The Question: Should legislative Demcrats take into account local governments’ “right to work” resolution votes when setting Statehouse policy and making budgets, or should they be forgiven? Take the poll and then explain your answer in comments, please.
survey solutions
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Advertisers behaving badly
Thursday, May 7, 2015 - Posted by Rich Miller
* From a recent House hearing on the Exelon bailout bill…
Also testifying was Chris Armstrong, CEO of Keystone Steel and Wire, which operates a scrap mill on 1,500 acres along the Illinois River near Peoria, Ill.
Armstrong said the Exelon-backed bill would raise electricity costs for the mill and an associated plant in Chicago by $2.2 million a year and put the company at a disadvantage to competitors in neighboring states and overseas.
Yikes.
* More…
But the strongest criticism came from the attorney general’s office.
Exelon was happy to embrace risk when wholesale power prices were on the rise and profits from its generation business were flowing, [Cara Hendrickson of the attorney general’s office] said. Only now, in a market where nuclear power is under pressure from relatively inexpensive natural gas and wind, is the company asking for help in the form of a $300-million-a-year subsidy.
“What this bill does is disrupt that market. It puts a thumb on the scales,” she said. “Basically, it’s ‘Heads up, Exelon wins. Tails up, Exelon wins.’ That’s not a free market. It’s a bailout.”
* From an op-ed by Bob Gallo of AARP Illinois…
Twenty years ago, Exelon fought for a deregulated energy industry that could offer market-based solutions. It won that battle – but now it doesn’t like what the market has done so it is asking the legislature for a bailout, to be paid for by Illinois consumers. Meanwhile, it refuses to show any financial proof that its nuclear plants are struggling.
It’s hard to fathom that Exelon has a cash flow problem given its $693 million earnings statement for the first quarter of 2015 (as opposed to $90 million for the first quarter of 2014). Exelon’s legislation is nothing more than a government subsidy for a private company — paid for by Illinois consumers who can ill-afford to foot the bill.
As if the Exelon legislation wasn’t enough, ComEd is also back at the trough demanding more money from Illinois ratepayers. ComEd already enjoys the benefits of a unique formula rate law passed in 2011 that mitigates its business risk and guarantees an annual corporate profit of nearly 10 percent. ComEd claims that the cost of the new legislation would be offset by “voltage optimization” provisions. However, that is already a part of the utility’s ongoing legal obligation to provide “safe and adequate service” and cannot be used to justify the unnecessary costs that the ComEd legislation imposes.
And as long as we’re talking about unnecessary costs, let’s take a look at the special projects included in ComEd’s legislation. ComEd wants consumers to foot the bill for a $100 million vehicle charging station pilot program. Really? Is that a necessary project in order for ComEd to do its basic duty of providing safe, adequate and reliable electric service? This is just one example of a “special project” that ComEd wants to pull from the pocketbooks of Illinois consumers.
The bottom line is that these two pieces of legislation are bad for consumers. Illinois lawmakers would be wise to take a hard look at the facts before agreeing to subject their constituents to yet another corporate bailout.
* And the Sun-Times ran an editorial calling for a balanced approach, based on the clean energy bill already in the hopper...
Illinois already has committed itself to using solar, wind and other renewables — as opposed to, say, coal or nuclear energy — for at least 25 percent of its energy by 2025. The new legislation, which has companion versions in the Illinois House and Senate, would raise that to 35 percent by 2030. It’s a reasonable goal. As the New York Times reported Wednesday, Germany in 15 years has already converted 30 percent of its energy sources to solar and wind.
Although renewable energy costs more today than other power sources, the Citizens Utility Board estimates consumers would come out ahead by $1.6 billion by 2030. That would be a $98 annual savings for the average residential ratepayer. CUB says $1.6 billion is its mid-range estimate and that savings could go as high as $2.2 billion. A separate analysis by the Union of Concerned Scientists also predicts substantial savings.
We’re not so sure regular homeowners will rush out to buy smart appliances, like programmable dishwashers and dryers, that can save money by shifting energy use to non-peak periods, such as the middle of the night. But because of the complicated way energy pricing works — with peak use driving the rates — CUB says even people who don’t do anything on their own will save money. […]
Another arguable benefit to this legislation is that it would bring jobs to the state, according to a survey released this week by the Clean Energy Trust. The survey found Illinois already has more than 100,000 jobs in the clean energy sector, and has experienced growth of 7.8 percent in the last 15 months. That survey, though, fails to consider that other jobs would be lost as less fossil fuel and nuclear energy is used.
I’d be careful with those job numbers and with the projected savings, but even if they’re ballpark, that’s still pretty decent.
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[The following is a paid advertisement.]
Members of a broad coalition – including organized labor, business, and nonprofit organizations from around Illinois – led a group of nearly 600 concerned citizens to the Capitol to make their voices heard on legislation to help preserve low carbon energy facilities around the state that are vital to their communities.
The coalition organized a packed rally in the Capitol Rotunda before hundreds of activists broke off to meet with their legislators to discuss the Low Carbon Portfolio Standard (LCPS) bill currently before the General Assembly.
Community, labor and business leaders who spoke out in support of the LCPS included: Reverend Dr. Leon Finney, Jr., Metropolitan Apostolic Community Church in Chicago; Illinois AFL-CIO President Michael Carrigan; Doug O’Brien, Illinois Clean Energy Coalition; Roderick Hawkins, Chicago Urban League; Omar Duque, Illinois Hispanic Chamber of Commerce; Deanna Mershon, Byron Chamber of Commerce; and the bill’s bipartisan sponsors, Sen. Donne Trotter, Sen. Sue Rezin, and Rep. Larry Walsh.
The group delivered a petition signed by over 10,000 Illinois residents to legislative leaders urging passage of the LCPS before the end of the legislative session.
The supporters are advocating for legislation to preserve existing low carbon energy facilities, including three of the state’s six nuclear energy plants that are economically challenged and in jeopardy of being prematurely shuttered due to outdated energy policies. A recent State of Illinois report found that these closures would result in nearly 8,000 lost jobs, $1.8 billion in lost economic activity per year, and up to $500 million in higher energy costs annually.
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It’s about getting from Point A to Point B
Thursday, May 7, 2015 - Posted by Rich Miller
* The Illinois Policy Institute’s partisan, histrionic take on yesterday’s House floor action…
A sham, a scam, a fraud, a joke–That’s how House republicans characterized budget bill amendments passed Thursday that restores social service programs being reduced or eliminated in the proposed 2016 fiscal year. House Speaker Michael Madigan originally offered up an amendment to House Bill 4141 that reflected the Governor’s proposed cuts to various social services programs. Republicans were blindsided and ended up largely voting present on the measure. […]
Some representatives in the minority said it’s like deja vu all over again where they’re being left out of the process but democrats said the process is where it needs to be–on the House floor racking up votes. Republican Representative Ed Sullivan said despite promises earlier this year to be open and transparent on budget issues, democrats are continuing the shutout republicans. […]
Sullivan said that the actions have broken the good will and spirit of cooperation between the two parties.
OK, the first round of House votes yesterday were on a bill with language taken directly from the governor’s own proposed budget on legislation sponsored by the House Republican Leader.
I don’t see the harm. Read on.
* The Republicans did have a better case about the other round of votes taken later in the day. Back to the Policy Institute…
Fifteen amendments were then added to the bill for votes, something republicans said circumvented the standard committee-to-floor process. Republican Representative Ron Sandack said this process isn’t open.
“Our time would be better spent in committee fully vetting appropriation bills, frankly, after a revenue number had been set. This isn’t, by the way, zero based budgeting. This isn’t top down budgeting. This isn’t bottom up budgeting. This is sham.” […]
Republicans don’t just have a problem with being left out, they also have a problem with how to pay for the restored cuts. As the amendments were being passed by majority democrats, Republican Sullivan asked Democrat Harris how the measures would be funded.
“We’ll have to cut in other areas, but we need to do it in a responsible way to cause the least harm to families, particularly those in vulnerable situations. And I think we’re gonna have to find new revenue,” Harris said.
“You’re gonna have to find new revenue,” Sullivan fired back. “You couldn’t do it in the fall so you passed a sham budget hoping that your governor would be reelected.”
Sullivan said he anticipates having to bail democrats out at the end of the budget year if they keep passing what republicans characterized as sham budget amendments. Republican Patti Bellock worried the budget amendments, without revenue to cover the bills, would increase the state’s backlog.
“When it comes to the end I don’t know where we’re going to have the funding for this. And again I brought up before about the unpaid bills. They’re not just out there. Those unpaid bills go to the providers, doctors, nursing homes, small business people.”
Even so, the House Dems wanted to send a message that those programs needed to be protected. And with the governor refusing to negotiate on tax hikes or pretty much anything else until he gets his “Turnaround Agenda” passed, the Dems wanted to respond. Again, it’s not a huge deal.
* Tribune…
House Republican leader Jim Durkin of Western Springs said Madigan was trying to get GOP lawmakers on the record to use the roll call votes in future campaign attack ads. “I do believe that what’s going on right now is form over substance. And it’s unfortunate. This is about mail pieces – trying to string people out,” Durkin said.
Rep. Greg Harris, D-Chicago, countered that the cuts, which Rauner proposed months ago, are well-known and have been discussed at length. Indeed, Democrats spent the early months of spring session holding hearings across the state to publicize the governor’s plans.
“The question always with us is, what bills can get 60 votes in the House, 30 in the Senate,” Harris said. “I understand we have to make cuts somewhere, but we cannot balance the budget by cuts alone. We’re going to have to make some common-sense cuts, and we’re also going to have to agree to find some revenue sources.”
* Erickson…
Rauner spokesman Lance Trover called Wednesday’s maneuvering “political theater.”
“This is not the time for political stunts. Gov. Rauner stands ready to work with Democrats to pass real structural changes to our government and enact a balanced budget,” Trover said in an email.
OK, then get on with it.
* Now, let’s flash back for a moment to April 22, 2013…
(F)aced with bitter divisions over guns and state pensions, House Speaker Michael Madigan resorted to a rarely-used tactic that does the opposite. He has called weekly sessions to laboriously address each and every proposal on dealing with the two controversial issues, debating and voting on each amendment piece by piece.
The idea was to engage in deeper discussions early on, rebut concerns about a closed-door process and gauge where lawmakers were on even the smallest of aspects. Madigan and others point to success, including some movement on the pension issue.
But critics say the process was directionless, ate up time, and now appears to have evaporated as a strategy without moving Illinois that much closer to solutions. While Democrats say it was aimed at making lawmakers more accountable about where they stand on issues, Republicans fear it was aimed more at forcing them to make uncomfortable votes on sensitive issues, which could haunt them at election time. […]
“We had a good airing of both sides of the issue,” said Steve Brown, Madigan’s spokesman. “All too often people, especially the minority party, will complain, ‘We don’t know this [debate or vote] is going to happen.’ You’ve got two pretty complex, somewhat emotionally charged, issues that seemed to lend itself to this sort of approach.”
But many Republicans, including House Minority Leader Tom Cross, disagree. They point to the lack of progress on the Legislature’s need to comply with a federal judge’s order to legalize the public possession of firearms by early June. Despite the deliberations, two opposing proposals to end the nation’s last ban on “concealed carry” were voted down last week.
In the end, despite all the early GOP screaming, they passed a pension bill and a concealed carry bill. And, as far as I can recall, none of those votes were used against the Republicans in the 2014 election.
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[The following is a paid advertisement.]
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The civil justice system plays an invaluable role in keeping corporations in check when they prove unwilling to protect the health of women. For more information, click here.
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Let’s hope this works
Thursday, May 7, 2015 - Posted by Rich Miller
* Wordslinger has been calling for this approach for years…
The new manager for the Illinois State Fair [Patrick Buchen] on Wednesday announced his plans to strengthen the event’s finances and agricultural roots. […]
As the new manager settled into his role managing both the Illinois State Fair and Du Quoin State Fair this week, he announced his intention to tap into the state’s vibrant agriculture industry to boost the fairs’ self-sufficiency. Both fairs have lost money in recent years, and Buchen believes calling on industry giants could help stabilize the struggling tradition. […]
Buchen, who most recently served as president and CEO of Adjuvant Expos Inc. in Texas, said he intends to use his experience from the expos in fostering sponsorships to bolster the fair’s revenue. He said he’d like to see a greater presence from companies like Cargill, Archer Daniels Midland, John Deere and Pioneer on the fairgrounds. That methodology, he said, also fits with the 2015 fair theme, “Growing Illinois,” which was announced during the news conference.
“It’s going to be a big ship to turn around, but ultimately it’s going to be one of our goals to be more self-sufficient, and that’s going to take a lot of hard work and some time to do that,” Buchen said.
It is most definitely time for these ag companies to step up here. I’d expand that to CME as well, which made out like a bandit with bigtime state tax breaks not long ago.
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Today’s number: 6.8 percent
Thursday, May 7, 2015 - Posted by Rich Miller
* Phil Kadner...
Chicago has the lowest composite property tax rate (that’s combining all the tax rates within the city) in Cook County. The county clerk’s office, which annually publishes a chart of tax rates, reports that Chicago’s composite property tax rate in 2013 was 6.8 percent.
Ford Heights, one of the poorest suburbs in the nation, had a composite rate for that year of 39.9 percent, Park Forest was at 32 percent and Chicago Heights at 29.9 percent.
Those three suburbs had the highest property tax rates in Cook County, but you can look anywhere outside of Chicago and find higher property tax rates in the county.
The reason is quite simple. For decades, suburban schools have been financed on the backs of homeowners. But Chicago gets piles of money in education grants from state government and has such a large commercial and manufacturing base that it has been able to fund its schools without the eye-popping tax rates the rest of the state has been struggling with. […]
Editorial writers act like a 2 percent tax rate hike for public education in Chicago would result in a massive wave of newly homeless people hitting the streets.
Hey, the property tax system in Illinois is unfair. I’ve been screaming about that for 20 years. But Chicago politicians never seemed to care because the system worked for the city, and the rest of us ended up paying more in property tax than we did on our mortgages.
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Medicaid - Know The Facts
Thursday, May 7, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Oppose $810 million in proposed FY 2016 hospital Medicaid cuts because:
• Hospitals did take a $27 million hit to address the FY2015 budget gap by paying an additional $27 million in assessments to the State – effectively the same as a cut.
• Hospitals are targeted for MORE THAN HALF – $810 million – of the Governor’s proposed overall Medicaid cut of $1.5 billion – even though they are only about ONE THIRD of the Medicaid budget.
• Drastic hospital cuts will mean:
o The loss of critical health care services like pediatrics, obstetrics, and mental health for everyone, not just Medicaid patients.
o Working families and businesses will have to pay more for health care.
o The loss of more than 12,800 jobs and $1.8 billion in economic activity statewide.
• $1 billion in Illinois hospital Medicaid cuts have been imposed since 2011.
• $1.9 billion in Illinois hospital Medicare cuts have been imposed since 2010.
• As a result, 40% of hospitals across Illinois are operating in the red.
Cutting Medicaid in the FY2016 budget is shortsighted and will result in real harm to people and communities.
For more information, go to www.TransformingIllinoisHealthCare.org.
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Rauner, Durkin urge calm
Thursday, May 7, 2015 - Posted by Rich Miller
* Gov. Bruce Rauner on his “Turnaround Agenda” and the possibility of an overtime session…
One item that’s not on Gov. Bruce Rauner’s so-called “turnaround agenda” is a special session of the legislature if the agenda is not passed by the end of this month. At least not yet, as Rauner says he’s “cautiously optimistic” that state lawmakers can pass bills on workers’ compensation, unemployment insurance, and local “right-to-work” zones, along with the state budget, all by the scheduled adjournment date of May 31. […]
“If we need more time for some reason, I’ll work closely with Speaker Madigan, President Cullerton, and Leader Durkin and Radogno, to work out how that process should unfold, but again, I’m cautiously optimistic we can get things done by May 31st,” the governor said.
Rauner says he doesn’t have any particular philosophy on special sessions, but prefers to get things done on time, pointing to how he didn’t ask for extra time to deliver his State of the State and budget addresses.
* House GOP Leader Jim Durkin on the same topic…
House Minority Leader Jim Durkin (R-Western Springs) invoked the name of former Gov. Jim Edgar, who said the most important thing a governor can do is “get his arms around the budget.” Afterward, a reporter pointed out how Rauner is prioritizing his right-to-work–leaning “Turnaround Agenda” over everything else.
“We can walk and chew gum at the same time,” Durkin retorted. “The (legislative) working groups are working through every one of these issues. The fact is: we can do all that in a short amount of time.”
Short in that the session is scheduled to end May 31; Durkin says lawmakers can hit that mark if they are so inclined.
…Adding… I should’ve also posted this one from Leader Durkin. Emphasis added…
“Spending within our means will be the only way we get out of this mess. It;s going to take some time, we didn’t get here over night, but hang in there folks. We’ve got to stick with our Governor but the fact of the matter is our budget right now is under scrutiny and that is a major focus. That is what’s driving everything in that building right now,” said Minority Leader Jim Durkin.
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Your daily “right to work” roundup
Thursday, May 7, 2015 - Posted by Rich Miller
* From the governor’s office…
Hi, Rich –
Coal Valley and Chebanse have passed the resolution.
Thanks!
ck
Coal Valley population: 3,743
Chebanse population: 1,036
* Text message from a union official…
100 in attendance in Coal Valley last night. All speakers opposed to the Rauner resolution which nonetheless passed with one dissenting vote.
* Meanwhile, Kane County removed all reference to the anti-union stuff in its resolution…
A revised draft of a Kane County resolution to support reform in Springfield passed the Executive Committee unanimously Wednesday (May 6, 2015), setting the stage for a full Kane County Board vote on May 12.
Kane County Board Chairman Chris Lauzen set the tone and direction for Wednesday’s discussion by crediting County Board members Deborah Allan and Ron Ford, both Democrats, with language revisions and editing that helped gain the unanimous recommendation.
“We have very diverse opinions,” Lauzen said. “Our purpose today is to find common ground where we can generate a consensus. Not everyone can agree on all the pieces, but what we’ve tried to do is see where the common ground is.” […]
The County Board is comprised of 13 Republicans and 11 Democrats, and committee members from each political party said they made compromises to come to an agreement. District 18 Board member Drew Frasz, a Republican, said he would have preferred the resolution include language supporting lawsuit reform, an “empowerment zone” and several other ideas that are part of Gov. Bruce Rauner’s Illinois Turnaround initiative.
“It’s been said that successful negotiation is when both parties are not totally happy,” Frasz said. “But I will vote in favor of this resolution, because this compromise does say Kane County is in support of reform.”
Lauzen wasn’t much of a compromiser when he was in the Illinois Senate, but he appears to have grown considerably at the county level. The full resolution is here. Scroll to the bottom.
* The lame duck Chicago City Council passed its anti-Rauner resolution yesterday…
Speaking to reporters after Rauner left, Emanuel said he would carry his and the city’s opposition to the governor’s local right-to-work-zone legislation all the way to the Capitol. Workers in the zones would be able to choose not to join unions or pay related dues in workplaces that have been organized, limiting union money and influence.
“I don’t believe in right to work, have not my whole life. I think you’re pulling the rug out from underneath the middle class and people trying to get in the middle class,” said Emanuel, who added, “If the governor can figure out a way to work with people down in Springfield to do that, I’m going to fight that effort.” […]
Ald. Roderick Sawyer, 6th, said he understood the need to work together with Rauner, but not on the right-to-work-zone issue.
“It’s not going to work. He’s not going to get any traction on cutting out unions,” said Sawyer, who added, “To even think about cutting out unions or giving an option of there being a union or not, that’s not going to fly in the city of Chicago. I don’t think it will fly downstate, either.”
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* Greg Hinz…
In a scathing report being released this morning, the Civic Federation, a Chicago watchdog group largely funded with corporate cash, says the new governor’s $31.5 billion operating budget does not add up and asserts it could leave the state in worse shape than it was under former Gov. Pat Quinn.
Rauner deserves praise for issuing a plan on time that would close a $6.2 billion hole in the budget for the year starting July 1, said federation President Laurence Msall. Much of the gap is caused by allowing a portion of Quinn’s temporary income tax increase to lapse. Rauner proposes to balance the budget entirely with cuts.
“However while the governor’s recommendations may close the budget gap on paper, the Civic Federation cannot support spending reductions that are either unrealistic or inconsistent with reasonable long-term financial goals,” the report says.
In a brief response, Rauner spokeswoman Catherine Kelly suggests that Rauner may be willing to go along with some form of tax hike, as the federation clearly wants–but only if Rauner’s “turnaround agenda” makes progress. That agenda includes items such as local right-to-work laws, reduced unemployment insurance and workers compensation payments, and term limits for legislators. “New revenue cannot be discussed until we address the underlying structural issues that have landed us here in the first place,” Kelly said.
Even if Rauner does eventually back revenue increases, the federation report says those hikes will have to be big.
*** UPDATE *** Some of you have been over-analyzing Greg’s paraphrasing of Catherine’s statement in comments. I asked her for her full remarks. Here they are…
Illinois’ fiscal crisis has been years in the making because career politicians were more interested in sweetheart deals with Springfield insiders than helping the taxpayers they were supposed to be working for. The structural reform addressed in the governor’s Turnaround Agenda will help free up resources to tackle our $6 billion deficit. New revenue cannot be discussed until we address the underlying structural issues that have landed us here in the first place.
I don’t see much change in position there, if any.
[ *** End Of Update *** ]
* From the Civic Federation’s press release…
In a new report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability opposes Governor Rauner’s recommended budget for FY2016 because it relies heavily on projected savings that do not appear to be achievable or prudent in light of the State of Illinois’ obligations and long-term policy objectives. The Institute’s full 78-page report is available at www.civicfed.org.
The Governor’s recommended budget relies on $2.2 billion in savings related to a new proposal to reform Illinois’ critically underfunded retirement systems. These savings are assumed to be realized in the fiscal year that begins on July 1, 2015, even though the pension proposal has not been introduced as legislation in the Illinois General Assembly and is likely to face legal challenges. Several other spending reductions in the Governor’s recommendation are seen by the Civic Federation as unlikely to be achieved or potentially harmful to the State’s finances in the long run.
“By issuing his budget on-time and without the use of borrowing, Governor Rauner has appropriately identified the size and pressing nature of the $6.2 billion shortfall in next year’s budget,” said Civic Federation President Laurence Msall. “However, while the Governor’s recommendations may close the budget gap on paper, the Civic Federation cannot support spending reductions that are either unrealistic or inconsistent with reasonable long-term financial goals for the State.”
In addition to pension savings, the proposed FY2016 budget assumes a reduction of $655 million, or more than one third, in the cost of State group health insurance through collective bargaining. Both the magnitude of the projected savings and the short timeframe for reaching agreement with the State’s largest union suggest that the budgeted numbers are unlikely to be realized. Other budgeted savings, particularly in the Medicaid program, depend on changes in State law or require federal approval.
The Governor’s recommended budget cuts local governments’ share of State income taxes by half. This reduction is inadvisable at a time when many municipalities are under severe strain. The State’s fiscal position will suffer if the finances of the City of Chicago – the State’s economic engine – are allowed to deteriorate further. The Civic Federation also opposes proposed cuts to spending on community care for the elderly, disabled and those with mental illness, which is recommended by advocates and saves money in the long-run by avoiding the costs of institutionalization.
“Members of the Illinois General Assembly need to come forward now with their own plans for how to address a revenue shortfall in FY2016 that will be larger and more painful than what we experienced this year,” said Msall. The upcoming fiscal year is the first full budget year since the partial phaseout of temporary income tax rate increases enacted in 2011. As described in the recent State budget roadmap for FY2016, the Federation recommends a combination of spending restraints and new revenues to solve Illinois’ fiscal problems. By limiting spending growth and broadening the revenue base, the State can eliminate the $6.0 billion backlog of unpaid bills over several years while providing more sustainable revenue sources for funding essential government services and ongoing costs over the long-term.
The full report is here.
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Giving back to its members – A Credit Union Difference
Thursday, May 7, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
As financial cooperatives, credit unions function as economic democracies. Because of their cooperative structure, earnings are returned to members in the form of lower loan rates, higher interest on deposits, and lower fees. When credit unions – both large and small — exceed expectations, their members share even more in those benefits.
Hershey Robinson, $2.8 million, 500-member employee-based credit union, is one of many that provide extra value. Most recently, the credit union delivered more than $12,000 in gift cards to members as an International Credit Union Week “Thank You”. This was a first-of-its-kind giveaway for this credit union and very well-received by its members – as well as its volunteer board of directors which unanimously approved the initiative.
In Illinois, by most recent estimates credit unions annually provide nearly $205 million in direct financial benefits to almost three million members. Credit unions like Hershey Robinson ECU exemplify how these crucial institutions play a vital role in delivering that value.
Credit unions remain true to one principle - people before profits - and represent a highly valued resource by consumers.
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* I told subscribers about this on Monday…
When Gov. Bruce Rauner proposed preventing most property tax hikes as part of his State of the State Address in February, the agenda he released said he wanted to “freeze property taxes for two years.”
But the outline of his plans he’s given lawmakers who are meeting privately to try to craft a state budget no longer makes any reference to the two-year timetable, and a spokeswoman says the governor wants voters to decide if taxes should “ever be raised.”
“The governor’s agenda freezes property taxes and empowers voters to decide via referendum if their property taxes should ever be raised,” spokeswoman Catherine Kelly said. “Illinois has among the highest property taxes in the country and we need to get them under control by empowering voters.”
The outline says local governments wouldn’t be able to ask for more in taxes than they did in the 2015 taxing year, with some exceptions that provide for new construction or government consolidation.
The outline given to lawmakers makes clear that clamping down on property tax hikes is something that will at least be considered as they try to both make a spending plan and debate Rauner’s agenda before their May 31 deadline to make a budget.
At least somebody else in the media is finally writing about these secret meetings. We need more of this, please.
*** UPDATE *** From the governor’s office…
After Governor Rauner addressed the Chicago City Council, he was asked, “give me an example of what Chicago wants and what Illinois needs.”
The governor answered in part:
“Well in terms of what Illinois needs, I have been clear for two and a half years. We need local control, voter empowerment, pro-growth regulations and an overhaul of the government, empowering local voters and taxpayers to get more control of government costs, and that’s laid out crystal clear within our turnaround agenda. That’s what we need, and I’ve said that consistently.”
To be clear, the governor’s top priorities are listed below:
· Term limits
· Property tax freeze
· Allow local control of ability to create employee empowerment zones
· Allow local control of contracting and bargaining in schools and local governments
· Allow local control of competitive bidding on taxpayer-funded construction projects
· Pension reform
· Worker’s compensation/tort/unemployment insurance reform
· Ethics reform/end conflicts of interest in government
The detailed Turnaround Agenda is available at the following link: http://www2.illinois.gov/gov/Documents/CompiledPacket.pdf
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Question of the day
Wednesday, May 6, 2015 - Posted by Rich Miller
* Today is my mom’s birthday. Like most moms, she’s sweet and kind. But she also pushed all five of her sons to succeed. We often didn’t measure up to what she knew we could be, but she’s never once let on that she’s been the slightest bit disappointed in us. We are all in our 40s and 50s, but we are forever her boys.
My dad always says that his sons got their brains from my mom and he’s probably right. Her IQ is off the charts high. She graduated college in three years, second in her class with two kids and one on the way. At one point in her career with the Department of Defense, she inspected nuclear weapons.
Her brains are matched by her tenacity. She’s never quit anything in her life. You can only imagine what she went through as a female civilian employee of the United States Army back in the 1970s. It was at times excruciatingly painful for her, but her job allowed her family to live in Europe and that was that. She wasn’t walking away from that sort of opportunity.
I love my mom for so many reasons, including how wonderful she is with her grandchildren and great-grandchildren. Here she is with a few of those kids…
I respect my mom more than I’ve respected anyone else in my life. She has always set the example which I have tried to follow, with varying degrees of success.
* No question today, but feel free to wish my mom a happy birthday. Thanks.
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[The following is a paid advertisement.]
Newspapers are sounding the alarm about the Exelon bailout bill.
Chicago Sun-Times: “Exelon’s Rate-Hike Proposal is a Bad Bill”
A bad bill in Springfield would raise our electricity bills to protect Exelon’s bottom line. The Legislature should either rewrite it significantly or flick the off switch altogether.
There is a feeling here of a company trying to socialize the risks while keeping the profits private.
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.
Belleville News Democrat: “DON’T FALL FOR EXELON BAILOUT”
Businesses and governments can learn how much the bailout would cost them at www.noexelonbailout.com/calculator.
Just say no to the Exelon bailout. Vote no on SB1585/HB3293.
BEST Coalition is a 501C4 nonprofit group of dozens of business, consumer and government groups, as well as large and small businesses. Visit www.noexelonbailout.com.
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Today’s quotable
Wednesday, May 6, 2015 - Posted by Rich Miller
* The Tribune on Gov. Bruce Rauner’s speech to the Chicago City Council…
Rauner said that south of Interstate 80, the most common response he gets on how to solve the state’s problems is to “secede from Chicago.” The governor noted that he got 20 percent of the vote in Chicago in the governor’s race last November. The governor said seceding would make his life easier, but Illinois “is one state.”
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*** UPDATED x2 *** Today’s numbers: 25-44
Wednesday, May 6, 2015 - Posted by Rich Miller
* From a reader…
Hi, Rich
I saw you’ve had some comments asking if anyone has a tally for the population of the different counties and municipalities that have voted on the Turnaround Agenda… I have been keeping tabs on that.
In my counts, I keep separate columns for tabled and not brought to table, but I calculate them both as tabled. When it comes to the agree/disagree, since the original question is do the local governments agree with the resolution as worded (since changing the wording of the resolution does nothing to change the other 38 pages that they’re actually endorsing), when I figure my percentages, rewrites are added to the “not agree” numbers.
As of this morning, the numbers look like this.
Cities/Townships: (30 that I can find)
POP total yes: 242,608
POP total no: 3,101,085
POP total tabled: 306,908
POP total rewrite: 98,716
POP voted: 3,749,317
% of vote agree: 6.5%
% of vote not agree: 93.5%
Counties: (11 of 102)
POP total yes: 393,740
POP total no: 5,241,000
POP total tabled: 1,041,973
POP total rewrite: 290,666
POP voted: 6,967,379
% of vote agree: 6%
% of vote not agree: 94%
* Municipal entity totals…
Cities/Townships
Yes: 21
Rewrite: 3
No: 18
Tabled: 9
Won’t vote: 2
Counties
Yes: 4
Rewrite: 1
No: 1
Tabled: 4
Won’t vote: 6
So, that’s 25 municipal bodies which have backed the governor and 44 which have either opposed him, rewritten his resolution, delayed a vote (almost always under public pressure) or have refused to vote one way or another.
*** UPDATE 1 *** The reader updated her spreadsheet to reflect the actions I posted earlier today. Numbers in this post have been changed to reflect the updated list Her new spreadsheet is here.
*** UPDATE 2 *** From a labor leader…
The number we use is only 21 municipals out of 1,300. A batting avg of .01%. Which is just a little better than the Cubs World Series Batting Avg for the past 108 years.
Heh.
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* Here we go, campers…
The Republicans are caucusing until 12:15. Watch our live session coverage post for constant updates.
*** UPDATE *** AP…
Democratic House Speaker Michael Madigan presented the proposal Wednesday even though members of his caucus largely oppose the budget plan that would balance the state budget entirely by slashing spending. Medicaid would be cut by $1.5 billion. Mental health and addiction treatment programs would also see cuts.
Madigan says the vote is intended to “facilitate consideration” of the next year’s budget. […]
House Human Services Appropriations Chair Greg Harris says Rauner’s proposal attempts to balance the budget “on the backs of the most vulnerable.”
“Facilitate consideration”?
Hilarious.
*** UPDATE 2 *** None voted yes, Democrats went “No” and Republicans went “Present.” The bill is here.
*** UPDATE 3 *** Rep. Greg Harris…
When the House reconvenes, I will start presenting my 16 amendments undoing the Governor’s proposed budget cuts to homeless youth, autism, childcare, senor services, disabilities, supportive housing, substance abuse, early intervention and many other programs.
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Fisking Exelon’s latest ploy
Wednesday, May 6, 2015 - Posted by Rich Miller
* This press release has it all…
SPRINGFIELD, Ill. (May 6, 2015) – Hundreds of supporters gathered at the Illinois State Capitol to urge the General Assembly to pass the Low Carbon Portfolio Standard (LCPS) (HB 3293 & SB 1585), delivering over 10,000 petition signatures to legislative leaders in support of the bill. A press conference hosted by the Byron Chamber of Commerce preceded the rally and called for passage of the legislation by the full Illinois General Assembly.
“The Low Carbon Portfolio Standard is an all-of-the-above energy strategy that will help preserve our nuclear energy facilities and is critical for our economy,” said Senator Donne Trotter (D-Chicago), a sponsor of the bill. “This legislation will help prevent the loss of up to 8,000 jobs, support zero and low carbon energy sources to maintain our national leadership in low carbon energy, and will help ensure we have the energy we need as a state.”
Well, it has it all except for the name of the corporate entity behind today’s “rally”: Exelon.
Also, the phrase “support zero and low carbon energy sources” should be changed to a single “source”: Nukes. As we’ve discussed before, the bill is written in such a way that Exelon is the only company that would qualify for the massive subsidy.
Also, too, anybody wanna bet me 5 bucks that most of those “petition” signatures are from towns with nuclear power plants?
* Let’s read on…
Six nuclear plants in Illinois generate nearly half of the state’s electricity and 90 percent of its carbon-free power.
And yet Exelon is attempting to blackmail the entire state by threatening to shut down at least some of those power plants.
* Continuing…
Senator Sue Rezin (R-Peru), a chief co-sponsor of the legislation, thanked the broad coalition of supporters gathered in Springfield, and highlighted what’s at stake if some of Illinois’ nuclear plants close, which may occur without legislative action.
“Energy leaders, economists, environmentalists, small business owners, labor unions, community groups and residents from all corners of the state have gathered to send a message of support for Illinois’ nuclear plants,” said Rezin.
Substitute “energy leaders” with “Exelon execs.”
* And environmentalists too? Hmm…
“If any of our nuclear plants close it will impact everyone in Illinois – not just the plant communities – through higher energy rates, the loss of up to $1.8 billion in economic activity every year, 8,000 lost jobs and a less reliable energy grid. The best way to prevent their closure and these costs is to enact the Illinois Low Carbon Portfolio Standard.”
The LCPS is technology-neutral, allowing low carbon energy sources – including wind, solar, hydro, clean coal and nuclear – to compete on equal footing. The legislative proposal was one of the market-based policy solutions recommended in a January 2015 report by four Illinois state agencies that studied the economic and environmental benefits of the state’s nuclear energy facilities, and the potential costs of the early closure of the three most at-risk plants.
“We’re talking about almost 8,000 job losses alone if these plants close,” said Michael Carrigan, President of the Illinois AFL-CIO. “Our current energy policies don’t properly value the jobs, the reliability, the energy diversity and the carbon-free power that nuclear energy provides.”
Doug O’Brien, Executive Director of the Illinois Clean Energy Coalition (ICEC), stressed the urgency of the situation and the environmental benefits of nuclear energy for Illinois.
“In addition to the well-documented economic benefits of these plants, we must put a value on nuclear’s environmental benefits,” said O’Brien. “We can never hope to meet our goals for carbon reductions and make progress towards a cleaner environment if we abandon clean nuclear and increase our reliance on fossil fuels.”
As mentioned above, Exelon’s bill shuts out other alt energy producers.
* But, hey, we’ve found our “environmentalists”! Or maybe not. Guess who sits on the Illinois Clean Energy Coalition’s board?…
Marshall Murphy
Vice President, Exelon Generation
Dr. Phil O’Connor
Former Chairman, Illinois Commerce Commission
Kim Maisch
State Director, National Federation of Independent Businesses
Murphy and Maisch are self explanatory. O’Connor was a utility friendly ICC chairman back in the day.
Most of the rest of the board members are local officials in towns with nuclear plants.
* More…
The LCPS proposal includes strong consumer protections, including a consumer price cap that would limit the impact to a 2.015 percent increase, or about $2 per month for the average Illinois residential electricity customer. A separate customer rebate provision would provide a direct bill credit to customers if wholesale electricity prices exceed a specified level.
Hooray! Exelon is pro-consumer! Except the Citizens Utility Board strongly favors an alternate plan.
* Continuing…
“Investing in our nuclear plants is good for our economy, for Illinois businesses and residents,” said Omar Duque, President and CEO of the Illinois Hispanic Chamber of Commerce. “Without these nuclear plants, we’ll lose billions of dollars in economic activity across the state. In addition, electric outages could occur more often and their lost generation could send power prices skyrocketing during peak demand. The Low Carbon Portfolio Standard is needed to prevent that possible outcome and encourage investment in Illinois.”
The state agency report found that closing the three at-risk nuclear energy facilities would result in $1.8 billion each year in lost economic activity, 8,000 job losses, and cost as much as $1.1 billion each year due to increases in carbon and other pollutants. According to a PJM analysis in the report, the plant shutdowns would result in up to $500 million annually in higher energy costs statewide. It concluded that, “Illinois’ continued economic success depends on maintaining low and stable electricity prices — and those low and stable prices depend on the continued operation of all nuclear generating stations located in Illinois.”
“The simple fact is, this is not a utility issue, this is a state issue,” said George S. Tolley, President, RCF Economic & Financial Consulting and Emeritus Professor of Economics, University of Chicago. “The nuclear plant closings would lead to significant losses in economic activity and jobs. The way our legislators respond will have long-term ramifications for the future of Illinois.”
Roderick Hawkins, Vice President of External Affairs for the Chicago Urban League, highlighted the importance of having a reliable supply of energy in Illinois. “When we need energy the most, especially during extreme weather, our homes and businesses are largely powered by nuclear energy,” said Hawkins. “The grid operator for northern Illinois has said it won’t be as reliable if the plants close. We can’t ignore this issue any longer.”
Minority group leaders are always an integral part of any utility-related PR bonanza. It’s been that way for years.
RCF Economic & Financial Consulting has done some work for ComEd in the past.
Also, Exelon is asking for $350 million in subsidies, which isn’t all that much lower than the “up to $500 million annually in higher energy costs” projected from plant closures.
* And, finally…
The negative impacts of closing the three at-risk nuclear plants would be especially pronounced in the local plant communities and regions of our state, according to local officials.
“Nuclear plant closings could be disastrous to the environment and the Illinois economy, but for me it’s even more personal than that - it’s the jobs, the families, the schools, the libraries, our police and firefighters who will be devastated by the closing of plants, including Byron,” said Deanna Mershon, Executive Director of the Byron Chamber of Commerce. “It’s the very fabric of our community that will be forever and irreparably harmed. Combined with the other adverse consequences of failing to act, I can’t imagine that the Illinois Legislature will fail to pass a Low Carbon Portfolio Standard and preserve these plants for all Illinoisans.”
Firefighters?! Nooooo!!!
Actually, Ms. Mershon is probably right. It’s not like Byron has any other major industrial property tax payers on the rolls. A plant closure would devastate that town.
So, instead of all this public blustering, how about everybody sits down and works out a compromise before doomsday hits?
[Headline explained here.]
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More corrections needed
Wednesday, May 6, 2015 - Posted by Rich Miller
* From the AP…
In a story May 3 about legislation to privatize much of the work of the Illinois Department of Commerce and Economic Opportunity, The Associated Press misattributed a quote criticizing the plan. The quote should have been attributed to Ralph Martire, executive director of the Center for Tax and Budget Accountability, not to Ron Baiman, who is no longer with the organization.
* But that wasn’t the only problem with the AP’s story…
Gov. Bruce Rauner says his plan to privatize the state’s economic development agency will improve job creation in Illinois. But similar plans in other states and even in Chicago have sometimes raised concerns about transparency and oversight, with taxpayers not always knowing how their money was being spent. […]
In Chicago, concerns have been raised about a lack of transparency at the publicly funded, not-for-profit World Business Chicago. Mayor Rahm Emanuel chairs the organization.
The Michigan Auditor General in 2013 found that the Michigan Economic Development Corporation significantly overstated job creation, essentially taking companies’ word.
In Ohio, JobsOhio has faced a series of problems. Among them was $5.3 million in state funding given to the agency without the Legislature’s knowledge and criticism of Republican Gov. John Kasich for filling board seats with campaign contributors.
In Indiana, a federal audit last year found that a company contracted by the Indiana Economic Development Corporation improperly funneled almost half million dollars to a business run by the contractor’s chairman. Questions also have been raised about some job-creation numbers reported by the IEDC.
* The Illinois Policy Institute’s news service raises some legit objections…
(A)n Associated Press article compares the not-yet-created board to other public-private economic development agencies in Chicago and other states as not being transparent or providing true follow up on job creation numbers.
Illinois’ measure, however, would require the board’s decisions to be approved by DCEO, all board meeting minutes and copies of final agreements and tax incentives for companies will be publicly posted and subject to the Freedom of Information Act, and operations will be reviewed by the Auditor General every two years. […]
House Bill 574 made it out of the Executive Committee last month and remains in the Rules Committee.
Not including that info in the original story was very odd.
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House Dems ignored real reform needs
Wednesday, May 6, 2015 - Posted by Rich Miller
* Yesterday’s House “committee of the whole” dealing with workers’ comp was clearly lopsided in favor of injured workers…
For several hours Tuesday, workers who were hurt on the job told legislators how their injuries and loss of income had turned their lives upside down. Some had lost their homes or their retirement and are permanently disabled.
John Coffell, who was hurt on the job in Oklahoma, had to go on food stamps and send his three kids to live with relatives because Oklahoma had cut workers’ compensation benefits.
“There are people just like me here in Illinois that will pay the price if you choose to go down the same path that my state did,” Coffell said.
Republicans criticized the hearing as unbalanced, saying there wasn’t enough input from the business community. They also said they weren’t even proposing some of the changes Democrats were criticizing, such as cutting the amount of benefits workers with legitimate workplace injuries receive.
That last point is crucial and correct. Yes, it was good to finally hear from actual working men and women, but the Republicans’ argument was well made.
* Tribune…
Laurie Summers, a nurse who described being injured at a workplace in Indiana, said she was at the Capitol to explain “why I would never recommend anyone to work in the state of Indiana,” citing its workers’ compensation laws.
Employers who pay into the system were represented only briefly, when a pair of panelists from the Illinois Manufacturers’ Association urged some changes.
Greg Baise, president and CEO of the manufacturers group, said he wants medical costs under workers’ compensation to be lowered, contending that coverage in Illinois pays thousands more for typical procedures like hernia and knee surgery compared with private or government health insurance plans.
“Quite frankly, we may not want to be Indiana when it comes to the value that we place on certain injuries like the loss of a body part,” Baise said. “I would not recommend that. But we do want to be competitive so that the high cost of workers’ compensation does not drive companies out of this state.”
Baise is right.
* More…
Although Illinois has dropped from third to seventh for states with high workers’ compensation rates after reforms in 2011, it’s still higher than its neighbors, including a rate more than double Indiana’s. He said the higher rates are, the more likely jobs will continue to move out of state.
“Ask the families in Danville, ask the families in Blue Island, Illinois, ask the families in the Quad Cities that lost jobs,” Baise said. “Those companies have moved to other states.”
Even with 2011’s reforms which reduced costs by more than $400 million, Baise said the state has more to do in reducing fees to doctors and hospitals to put them on par with Medicare and private insurers. He said Illinois’ unlimited medical benefits are unsustainable.
“There’s no such limitation in that,” he said. “Chiropractic visits, physical therapy and others, we think there ought to be limitations on those and it would bring down medical costs.”
The other issue facing businesses is when someone aggravates an old injury while working. Right now, workers only need to show a one percent cause of injury from work to sustain a claim.
* Greg Hinz before the hearing…
(I)n this year’s Springfield fighting, changes in workers’ comp are considered the low-hanging fruit, much more achievable than, say, term limits for lawmakers, “right to work” legislation, limits on union political contributions or huge budget cuts, which Rauner also wants.
I thought the very same thing.
Oops.
* House Republican Leader Jim Durkin delivered a letter to Speaker Madigan last night asking him to call a second committee of the whole “that focuses solely on the impact workers’ compensation reform would have on employers and job creators in Illinois.”
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Gov. Rauner to speak to Chicago city council
Wednesday, May 6, 2015 - Posted by Rich Miller
…Adding… Click here for a live video stream of today’s council hearing.
* Give the guy credit. It takes some serious stones to venture into that weird belly of the beast…
In what appears to be a first for the state, a sitting governor will address the Chicago City Council.
Gov. Bruce Rauner on Wednesday will address the Chicago City Council to pitch the leadership on his pro-business agenda.
NBC Chicago was told that Rauner requested the appearance. City Council leadership agreed to suspend rules to allow the governor to address the body.
* Sun-Times…
“Governor Rauner was born near Wrigley Field and loves Chicago. He recognizes that the City of Chicago and State of Illinois both face unprecedented financial and economic challenges. He looks forward to discussing ways he can work together with the city to find solutions that will turn around the city and the state,” the governor’s spokesman, Mike Schrimpf, said in an email to the Chicago Sun-Times.
Right-to-work zones are not the only point of contention with a City Council filled with pro-union Democrats.
So are Rauner’s doomsday budget cuts that would cost the city, the CTA and Chicago Public Schools hundreds of millions of dollars they can’t afford to lose.
And so is the governor’s warning that the Chicago Public Schools could be staring down the barrel of bankruptcy.
I’d venture a guess that most city council members will hear a speech unlike anything they’ve ever heard today.
* Tribune…
News of Rauner’s planned speech came after he spoke to about 200 people Tuesday at the Chicago Family Business Council in Little Italy, where he acknowledged the financial problems of Chicago and its public schools but said no bailouts were coming from Springfield.
“The city of Chicago’s in deep, deep yogurt. And they need, the taxpayers of Illinois are not going to bail out the city of Chicago. That’s not happening. Not going to let that happen.” Rauner said. “That said, I can, as the governor, can do a lot of things to be helpful, to help this city get its feet back under it. I look at the numbers for the public school system in Chicago and I don’t see how it can ever fund their pensions and fund their pension deficit.”
Instead, Rauner urged the group to contact local political leaders to support nonbinding resolutions endorsing the governor’s “turnaround agenda.” That’s something Emanuel and the City Council have adamantly opposed, in part because it calls for weakening union power and wages and the creation of so-called local right-to-work zones free from union mandates.
“My view is, the City Council, help us get structural change at the state level,” Rauner said of Chicago aldermen. “I’ll help you get structural change in the city that I can authorize as governor so you can get your house in order and the state can get its house in order and we’ll all be better off.”
Even so, the timing is odd. Today is the last day of the lame duck council session. Several new aldermen will soon be sworn in.
* Fox Chicago…
Underscoring how difficult it will be to solve the crisis, leaders of the Chicago Teachers Union plan to hold a news conference shortly after the governor speaks.
Chicago Public Schools face a $1.1 billion shortfall, which is more than 16 percent of their entire budget. At the contract bargaining table, CPS apparently asked teachers to pay more into their pension fund.
Union leaders called it a wage reduction in an angry press release, “The Board has demanded a 7 percent pay cut from our members. The CTU is highly insulted.”
This may sound familiar to those who recall the teacher’s strike three years ago. But it may be different this time, because the teachers can’t go on strike if the schools don’t open for lack of money this September.
Yikes.
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*** UPDATE *** According to AFSCME, Middletown unanimously approved a pro-union resolution last night. Click here to read it.
[ *** End Of Update *** ]
* Nothing yet from the governor’s office. From the Illinois AFL-CIO…
Yesterday, the Rauner anti-worker resolution failed in a Grundy County Board committee for lack of a second to pass the motion. Thank you working families of Grundy County.
City of Ottawa passes a pro-worker resolution tonight. Another strong message sent to the governor.
Tonight Litchfield rescinds approval of Rauner resolution, then votes it down. Great job by union and community in Montgomery County.
* Charleston also rescinded its pro-Rauner resolution…
City Council members put a revised version of the “Supporting Local Government Empowerment and Reform” resolution on file for public inspection during their meeting Tuesday.
However, several residents asked the council to consider dropping entirely the resolution, which supports but does not enact parts of Gov. Bruce Rauner’s proposed right-to-work zones.
The council voted to rescind the original document and place the new document on file for public inspection. It’s available on the city’s website under “City Council and BZAP Video and Agendas;” the revised resolution will not be officially voted on for two weeks. […]
The revised resolution removes a paragraph focused on local control of collective bargaining and changes one paragraph concerning the prevailing wage, removing the term “prevailing wage” and replacing it with a statement saying state policies hinder locally owned businesses who employ local residents from bidding on local contracts, thus reducing the bidding pool.
* Ottawa…
Two proposals in Gov. Bruce Rauner’s Illinois Turnaround plan were opposed by the Ottawa City Council on Tuesday.
Proposals for right-to-work zones and the local repeal of the Illinois Prevailing Wage Act “would create a ‘race to the bottom’ that would reduce the pay of our community’s workforce and, therefore, harm the local businesses dependent upon local customers,” according to “A Resolution to Protect the Middle Class,” unanimously passed by the council. […]
Provisions of the Ottawa resolution include:
“Passage of a local ‘right-to-work’ ordinance would undoubtedly generate legal challenge that our government would have to fruitlessly defend at a significant cost to our taxpayers.”
“Prevailing wage laws create a level playing field for local construction contractors by forcing out-of-state contractors to bid on projects based on the skill and efficiency of their workplace, not how far they can drive down wages and benefits.”
“By benefiting local contractors, prevailing wage laws greatly increase the likelihood that construction workers from our community will be employed on the projects that their tax dollars and those of our other taxpayers fund.”
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