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We’re one step closer

Thursday, May 21, 2015 - Posted by Rich Miller

* The Senate just voted 37-19 to pass HB 218

(T)he possession of 15 grams or less of cannabis is a civil law violation punishable by a minimum fine of $55 and a maximum fine of $125;

The bill will be held in the chamber until a House “trailer bill” is eventually passed by the Senate.

…Adding… Press release…

The Illinois Senate approved a bill 37-19 Thursday to remove criminal penalties for possession of a small amount of marijuana. The measure, which was approved by the House of Representatives in April, will now be sent to Gov. Bruce Rauner (R) for his signature.

HB 218, introduced in the Senate by Sen. Michael Noland (D-Elgin) and in the House by Rep. Kelly Cassidy (D-Chicago), makes possession of up to 15 grams of marijuana a civil law violation punishable by a $125 fine. Individuals will no longer face time in jail, and the civil offense will be automatically expunged in order to prevent a permanent criminal record.

“Serious criminal penalties should be reserved for individuals who commit serious crimes,” Rep. Cassidy said. “The possibility of jail time should not even be on the table when it comes to simple marijuana possession. Criminalizing people for marijuana possession is not a good use of our state’s limited law enforcement resources.”

Under current Illinois law, possession of up to 2.5 grams of marijuana is a class C misdemeanor punishable by up to 30 days in jail and/or a fine of up to $1,500; possession of 2.5-10 grams is a class B misdemeanor punishable by up to six months in jail and/or a fine of up to $1,500; and possession of 10-30 grams is a class 4 felony punishable by up to one year in jail and/or a $1,500 fine. More than 100 localities in Illinois have adopted measures that reduce penalties for simple marijuana possession.

“We hope Gov. Rauner will sign this important and broadly supported legislation,” said Chris Lindsey, a legislative analyst for the Marijuana Policy Project. “This is a sensible alternative to Illinois’s needlessly complicated and draconian marijuana possession laws. It’s time to stop destroying people’s lives over possession of a substance that is undeniably less harmful than alcohol.”

Illinois marijuana laws disproportionately impact communities of color, according to reports released by the Institute for Metropolitan Affairs at Roosevelt University in May 2014 and the American Civil Liberties Union (ACLU) in June 2013. African Americans in Illinois are 7.6 times more likely to be cited or arrested for marijuana possession than whites, despite using marijuana at a similar rate, according to the ACLU.

“This legislation is long overdue in Illinois,” said Rev. Alexander Sharp, executive director of Clergy for a New Drug Policy. “Simple marijuana possession does not warrant harsh criminal penalties that can turn someone’s life upside down. Laws should protect people, not cause more harm to them than the activity they’re intended to prevent.”

Nineteen states and the District of Columbia have removed the threat of jail time for simple marijuana possession.

  44 Comments      


Preckwinkle: Rauner wants omnibus bill before helping Cook County

Thursday, May 21, 2015 - Posted by Rich Miller

* Tribune

(A) House panel advanced Cook County Board President Toni Preckwinkle’s plan to overhaul government worker pensions.

The proposal would cut benefits and raise retirement ages but also guarantee health care benefits for workers when they retire. It calls for the county to put almost $147 million more a year into the pension fund, though Preckwinkle continues to be publicly vague about how she’ll fund that increase.

But prospects for the bill to move forward are shaky amid opposition from Republicans leery of a tax hike that likely would fund the county’s increased contributions and some Democrats who don’t like that some powerful employee unions are opposed. Still, Preckwinkle said she remained “hopeful” that Rauner may support the bill and pressure Republicans to vote in favor.

* The Bond Buyer

In reviving the legislation, Preckwinkle argues that the county’s liabilities are rising by $30 million a month and a reform bill needs to be passed “immediately.”

The county’s proposal would withstand a legal challenge in part because, like Chicago, the county is not relying on the ‘police powers’ argument that the state used to defend its reforms, Preckwinkle said.

The county’s plan would also offer employees something they don’t have now - a dedicated revenue source for health care benefits, according to the county.

“Our plan, which was the product of over two years of negotiations with a cross section of unions and stakeholders, also confers on participants significant new value in return for changes in the pension system,” Preckwinkle said in a statement.

* The Tribune wants it passed

Is there any point after the Supreme Court slapdown? The city and the county say their proposals could thread the eye of the needle at the Supreme Court, though the odds seem to be against them.

The Supreme Court took dead aim at the state’s self-inflicted pension crisis. Cook County argues that it, unlike state government, has always made its legally required pension contribution. County officials believe that and other differences would prompt the court to give this legislation a fresh look.

We encourage Illinois lawmakers to pass Preckwinkle’s pension bill. Get it to Gov. Bruce Rauner’s desk. It may be a stand-alone reform or it may become part of a grand bargain to save state and local government from financial catastrophe. But let’s get it passed.

* But the governor has other ideas

Preckwinkle says she recently had an “interesting” conversation with Republican Governor Bruce Rauner last week and says the ball’s in his court.

Preckwinkle says Rauner wants a package of pension bills to pass as the state, City of Chicago, Cook County, and several suburbs look to restructure their retirement benefits. A spokesman for Rauner had no comment.

It’s May 21st. Ten days to go. The budget process is in shambles and now he won’t approve Cook County’s bill until he gets a giant ominibus reform bill?

Could be a long summer.

* Meanwhile, from Reuters

Chicago could reduce a looming $550 million hike in contributions to its police and fire retirement systems due next year by extending the deadline for reaching a 90-percent funded level, the city disclosed in bond documents on Thursday.

The city laid out options for dealing with the payment in documents relating to its plan to convert about $805 million of variable-rate debt into fixed-rate bonds to avoid accelerated debt payments and termination fees to banks. […]

Under a 2010 Illinois law, Chicago’s annual contributions must be in an amount that would enable the retirement systems to be 90 percent funded by 2040. The city said it was in talks with unions to amend the law to extend the 2040 deadline and create a phase-in period to reduce contributions in initial years.

Chicago has projected that contributions to all four of its retirement systems will climb to $1.1 billion next year from about $478 million this year. […]

In the absence of payment relief from the legislature, Chicago may have to increase its property tax levy by Dec. 29 to accommodate the full $550 million police and fire contribution, the documents added.

* And the mayor is most certainly optimistic

Mayor Rahm Emanuel said Wednesday he wants to see how the frenzied final days of the Illinois General Assembly’s spring session play out before asking the new City Council to begin the search for new revenue to solve the $30 billion pension crisis that has dropped Chicago’s bond rating to junk status.

“We’re in active discussions on a casino as a funding source to shore up” police and fire pensions, the mayor told reporters after a City Council meeting. […]

Emanuel said he remains hopeful on what he once described as a “mega, mega-deal” that may include a sales tax on services, partial restoration of the expired increase in the state income tax, a Chicago casino and pension relief for police and fire and Chicago teachers.

“We’re now in the final two weeks before the end of the session. And as you know, this is usually the time — not just in Springfield, but with legislative bodies [everywhere] — when days are weeks and weeks are like months,” he said.

“There will be a lot of activity. I’m gonna be out there pressing the issues that are related to Chicago and its future [to make certain] Springfield does not make decisions at the expense of Chicago because there’s not a healthy Illinois without a healthy Chicago,” Emanuel said.

I’m not seeing it, and hizzoner is the only upbeat guy on this particular topic right now. Maybe it’ll happen. Lot of movement needed, though.

* One more mayoral item

He said he would much rather see a Chicago casino close to a convention and entertainment area, which people could avoid if they’re against gambling, than to see a video poker machine in scores of bars across Chicago.

I dunno. Why not put money in the pockets of scores of hard-working bar owners around the city rather than concentrate it into the hands of already wealthy casino interests?

* And Mark Brown looks at another option for funds other than those serving police and firefighters

Illinois law defines pension benefit payments as obligations of the pension funds, which are separate legal entities from the city, Moody’s noted.

“But if the pension funds are unable to fulfill these obligations, it is unclear which party will be responsible for paying annuitants,” Moody’s said.

The city’s position is that it would be legally required to make retirement payments to police and firefighters if their pension funds become insolvent, but not those covered by the municipal employees and laborers funds — unless the city’s pension reform law is upheld by the courts. […]

The municipal and laborers funds are projected to go belly up in 10 years to 12 years without a revenue infusion. The firefighters fund, which is in worse shape, could be insolvent in half that time.

At the point the city has to start directly paying its retirees, taking away money needed to provide city services, nobody will be doubting this pension crisis is real and affects everyone.

  41 Comments      


Union blasts Rauner’s contract proposals

Thursday, May 21, 2015 - Posted by Rich Miller

* Doug Finke obtained an AFSCME Council 31 bargaining bulletin. Harsh stuff...

A May bargaining bulletin from the union obtained by The State Journal-Register, also said the administration is seeking “deep cuts to health insurance benefits” that the union said could drive up employee costs by more than 500 percent.

“This week the administration made all too clear how little value it places on the work we do,” the bulletin said. “The governor’s negotiators presented the AFSCME Bargaining Committee with a lengthy list of economic proposals that amounted to a massive assault on the standard of living of every state employee.” […]

    * The administration wants a salary freeze for the length of the contract.

    * Rauner wants to eliminate step increases available to workers during their first eight years on the job and wants to take back longevity pay that is awarded to workers who no longer qualify for step increases.

    * The administration is seeking to reduce vacation and holiday time off.

    * The governor also wants to eliminate additional pay for working in maximum security facilities, being called back to work and for continuing education.

* Meanwhile, from the Law Bulletin

A state appeals panel rejected a union challenge Tuesday to a law that took collective bargaining rights from some state employees, such as general counsels and chiefs of staff.

In a 21-page opinion, a 1st District Appellate Court panel said the law was legitimately aimed at making government more efficient and did not infringe on employees’ due process or equal protection rights.

Affirming an Illinois Labor Relations Board ruling, the appellate panel also said the law did not violate state constitutional prohibitions against arbitrary legislation or delegations of power from one branch to another.

Concerned by the rising number of high-level state employees in unions, lawmakers two years ago gave the governor powers to prohibit thousands of them from joining unions.

Section 6.1 of the Illinois Labor Relations Act authorized then-Gov. Patrick J. Quinn “to designate up to 3,580 [s]tate employment positions collectively within [s]tate agencies directly responsible to the [g]overnor” and exclude them “from the self-organization and collective bargaining provisions” of the law.

* The opinion is here

It was reasonable for the legislature to make a determination that the Governor’s participation was warranted to remove certain high-level managers from collective bargaining units so that he could effectively run his executive department as he sees fit. The Governor is in the best position to know which employees’ positions entail policy-related and discretionary responsibilities and which do not. Rather than inefficiently micro-managing the process itself or requiring the Governor and the ILRB to go through the lengthy classification process for each employee, the General Assembly gave the Governor an efficient tool to reassign employees whose positions he believed were incompatible with collective bargaining unit membership. Giving the Governor the authority to classify those from whom the State demands undivided loyalty as unsuitable for collective bargaining unit membership is a reasonable method to achieve the direct objective of section 6.1. […]

If AFSCME’s arguments are correct, meaning that the individuals are not actually managers, AFSCME has provided no reason why the individuals cannot simply file a clarification petition to be reclassified as public employees thereby reobtaining collective bargaining unit membership. It seems as though AFSCME is simply trying to have it both ways: for the individuals to keep their managerial status and the benefits that come along with that; and also to keep their collective bargaining unit membership and the benefits that come along with that. […]

AFSCME argues that section 6.1 unconstitutionally impairs the collective bargaining agreement that was in place when the statute was passed… [But] the established procedures for adding or removing positions from the collective bargaining unit have long been in place and a reclassification of employees does not constitute a breach or an impairment of an existing collective bargaining agreement. The individuals here had no vested right, constitutional or otherwise, to remain in the unit until the agreement expired and changes to their status were foreseeable. Once an employee is reclassified as a managerial employee, he or she loses the right to any benefits flowing from the agreement going forward.

Seems reasonable. Thoughts?

[The headline on this post was changed and the Finke story was added above.]

  143 Comments      


Question of the day

Thursday, May 21, 2015 - Posted by Rich Miller

* Oh, joy

Illinois lawmakers have delivered some sweet news for fans of pumpkin pie and corn.

Measures designating pumpkin as the official state pie and sweet corn as the state vegetable are headed to Gov. Bruce Rauner’s desk.

But a check of Wikipedia reveals that, unlike some other states, Illinois has no official state rock.

The horrors!

Indiana’s state rock is Salem Limestone. Why can’t we be more like Indiana???

* The Question: Your nomination for Illinois’ official state rock?

  135 Comments      


The HDem super majority myth

Thursday, May 21, 2015 - Posted by Rich Miller

* Perhaps the least surprising “news” item of the day

State Rep. Jack Franks, D-Marengo, said he can’t get behind a bill that may be called for a vote on the House floor on Thursday that would tax individuals who make more than $1 million a year.

“I don’t think I can vote for it. I think it’s bad policy,” Franks told the Chicago Sun-Times on Thursday. Franks said neither Illinois House Speaker Mike Madigan nor any representative from Gov. Bruce Rauner’s office has reached out to him on the vote.

Franks’ “no” vote is significant since the so-called Millionaire’s Amendment, which passed out of committee on Wednesday, needs a supermajority to advance. That means all 71 Democrats would have to vote in favor.

Franks has never voted for a tax hike, so he’s not about to start now. Besides, the millionaire’s amendment was not overwhelmingly popular in Franks’ district last year like it was elsewhere, winning 52-48. Gov. Rauner, however, crushed Pat Quinn in that district 65-31.

Expect at least two other Democrats to also oppose this.

* Kerry Lester looks at the House’s super majority

Democrats have the numbers, but not the power needed to enforce their agenda. They’ve signaled they want and may need Republican votes on any deal to fix the state’s financial crisis. Rauner, meanwhile, has made overtures to woo independent Democrats to his side and wields a $20 million war chest with which he aims to support lawmakers who back him.

“The term supermajority, it’s a myth,” said Rep. Jack Franks, a Democrat from Marengo. “And it’s probably more of a hindrance than a help. It creates expectations that aren’t realistic.”

Franks is one of several lawmakers who pride themselves as independents. In his case, he’s the only elected Democrat in solidly Republican McHenry County and therefore wary of being seen toeing any Democratic line. He describes himself as a pro-labor Democrat endorsed by numerous unions, but also says he’s never voted for a Democratic budget or a tax or fee increase in his 16 years in the statehouse.

Franks and fellow Democratic Rep. Scott Drury of Highwood, who also crosses party lines on occasion, opposed last spring’s “millionaire tax” push by Madigan and other Democrats. Madigan withdrew the proposal within weeks, which would tack a 3 percent surcharge on income earned of more than $1 million, due to lack of support, but has reintroduced it this year. The two also were among about a half-dozen lawmakers who opposed extending the temporary income tax hike increase, which their Democratic colleagues felt was necessary to fund the $35.7 billion budget.

  28 Comments      


Zopp won’t answer SUPES questions

Thursday, May 21, 2015 - Posted by Rich Miller

* Tribune

Mayor Rahm Emanuel’s formula for fixing Chicago Public Schools has always put a priority on building better leaders, so it could have been a setback for the mayor’s agenda when a prominent education nonprofit balked at funding a training program for principals in mid-2012. […]

Emanuel’s first schools CEO, already on the outs with the mayor, was soon replaced by a new boss — Barbara Byrd-Bennett, a veteran educator who just months earlier had been the lead trainer for SUPES Academy LLC, an education consulting firm.

Minutes after confirming Byrd-Bennett’s appointment as the new schools CEO in October 2012, the Emanuel-appointed school board voted to give SUPES a $2.1 million principal training contract, followed less than a year later by a $20.5 million deal. Both were done without competitive bidding or public debate. That arrangement is now at the center of a federal criminal investigation.

* Scroll down

“I’d really rather not talk about it,” said Andrea Zopp, a school board member and former prosecutor who last week announced her bid for the 2016 Democratic nomination for U.S. Senate. “There’s a lot in the public record on this already.”

Yes, much has been written, but as the Tribune notes the board met in secret before approving the no-bid SUPES contract without public debate . If Zopp wants to run for US Senate, she’s gonna have to answer questions about that meeting.

* In other news

A new study of bipartisanship in Congress, released on Tuesday, ranks members based on how many co-sponsors from the other party they can get on their bills or how willing they are to cross the aisle in co-sponsoring legislation. […]

Actual votes on measures are not measured in the “Bipartisan Index” scoring by the nonprofit nonpartisan Lugar Center founded by former Sen. Richard Lugar, R-Ind., and Georgetown University’s McCourt School of Public Policy.

Using this method, Rep. Dan Lipinski, D-Ill., is ranked as the most bipartisan Illinois House member, coming in at 16 out of 422 representatives included in the study.

In the 2016 Illinois Senate race, bipartisanship and the blunting of party labels is already a theme of Sen. Mark Kirk, R-Ill., and Rep. Tammy Duckworth, D-Ill., so far the only declared challenger.

Kirk, who highlights Vice President Joe Biden in his first re-election ad, initially televised last week, is ranked as the 6th most bi-partisan senator out of the 98 ranked. Duckworth is high on the House bi-partisan ranking, coming in at 39. Sen. Dick Durbin, D-Ill., the No. 2 Democratic leader, comes in at 67.

* And speaking of Kirk, this is from the rather over the top group named Illinois Family Action…

Another day, another notch in the “Don’t Say You Weren’t Warned” belt that is squeezing the life out of conservatives: Mark Kirk has hocked another loogie in the spittle-splashed faces of conservatives who held their noses and helped elect him. He, along with U.S. Senator Ben Cardin (D-MD), has introduced a resolution to remove the ratification deadline for the Equal Rights Amendment, which has long since passed.

This comes on the heels of his shameless pandering to homosexual activists at a marriage-deconstruction rally in front of the U.S. Supreme Court a few weeks ago.

Such family friendly words.

But probably a very smart move by Kirk.

  16 Comments      


Today’s number: 82

Thursday, May 21, 2015 - Posted by Rich Miller

* Tribune

Chicago’s population grew by only 82 residents last year, giving it the dubious distinction of being the slowest-growing city among the top 10 U.S. cities with 1 million or more residents. […]

New York maintained its ranking as the nation’s largest city, gaining 52,700 residents last year, for a gain of 0.6 percent that pushed its population to 8,491,079. Los Angeles added 30,924 residents, up 0.8 percent and bringing its population to 3,928,864.

Sun Belt cities with more than 1 million residents — places like Houston, San Antonio, Dallas and Phoenix — all continued to see dramatic gains in new residents. But some smaller Midwestern cities also topped Chicago. Minneapolis, for instance, saw its population increase by 1.6 percent while Indianapolis’ grew by 0.6 percent.

“The boom of Chicago in the 1990s was due to immigration,” said Rob Paral, a Chicago-based demographer who advises nonprofits and community groups. “You take away that catalyst of immigration, and you see what we have. They’re going to different parts of the country, and there’s much less immigration to the U.S. than there was decades ago.

Oy.

The Census Bureau says that’s an increase of 0.003 percent.

  44 Comments      


The civil justice system gives everyone a fair chance

Thursday, May 21, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

America’s civil justice system gives people a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others—even when it means taking on the most powerful corporations.

This is more important now than ever because the drug and oil industries, big insurance companies and other large corporations dominate our political process— and thus, people cannot depend on the political system to hold corporations accountable.

When corporations and their CEOs act irresponsibly by delaying or refusing to pay fair and just insurance claims, producing unsafe products, polluting our environment or swindling their employees and shareholders, the last resort for Americans to hold them accountable is in our courts. To learn more, click here.

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Putting human faces on line item numbers

Thursday, May 21, 2015 - Posted by Rich Miller

* From a reader…

Hi Rich,

My nephew works at residential home for the mentally ill here in Chicago. With the help of his cousin they put together this video of clients being interviewed and the home they live in. The purpose of course is to show how our state money is being spent and on who.

I think it is well done and powerful. If you have any thoughts on how to better share this, please pass them on.

Thanks

* The video was posted to YouTube yesterday and it already has more than 4,000 views. Watch it

Truly powerful stuff.

  26 Comments      


Keeping Illinois Nuclear Plants Open: Good For Jobs, Small Business & Illinois

Thursday, May 21, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Greg Hass, President of Valley Construction in Rock Island, Illinois:

    Since 1925, Valley Construction has been a family-owned business serving the Quad Cities and Illinois. I am proud of the legacy my grandfather began building 90 years ago, and proud of the 250 men and women of Valley Construction who work every day to continue that legacy.

    For decades, we have done a lot of work at the six nuclear energy plants around Illinois. Three of these plants could close soon and I am deeply concerned about the severe impact that will have on my business and my workers.

    A recent state report found that if these plants close, it could cost us $1.8 billion in lost economic activity and 8,000 jobs. I can’t afford that and Illinois can’t a¬fford that. That is why I support a legislative proposal called the Low Carbon Portfolio Standard. This proposal is crucial to our state’s economic health and thousands of small businesses like mine.

    I urge members of the General Assembly to act now and vote YES on the Low Carbon Portfolio Standard - House Bill 3293 & Senate Bill 1585.

To learn more go to www.nuclearpowersillinois.com

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Protected: SUBSCRIBERS ONLY - Some good news…

Thursday, May 21, 2015 - Posted by Rich Miller

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*** UPDATED x1 *** Dems to Rauner: You do the cutting

Thursday, May 21, 2015 - Posted by Rich Miller

* Vinicky looks at the Democrats’ upcoming budget proposal

Insiders, including legislators, say the Democratic version is shaping up to contain cuts too, but drastically smaller ones. Rep. Ken Dunkin, D-Chicago, who chairs the House Higher Education Appropriations committee, says universities will see cuts of less than ten-percent.

“This is where our talent gets trained and educated, and for us to dismiss them in a such a way — or to write them off … is not the right message that we need to send,” Dunkin said.

What appears to be missing from the equation, so far at least, is a way to pay for that spending, given that it’ll be the first full budget year with the new, lower tax rates. Democrats could be content to send Gov. Rauner a budget that dares him to make the drastic cuts he’d outlined.

While there’s been no action on revenue enhancers like a higher income tax rate, retirement tax, adding a sales tax to services (as Gov. Rauner had promoted during his campaign), there are revenue options.

Gambling is a possibility — a legislator involved with those negotiations say a proposal with five casinos (in Chicago, Lake County, the south suburbs, Rockford and Danville) is shaping up. The House Speaker, Michael Madigan, is also keeping alive a “millionaires’ tax”; a constitutional amendment that could lead to the surcharge on income over a million dollars advanced out of a House committee. It’s opposed by Gov. Rauner and his business allies.

* And

While Democrats say a revenue hike is needed, they insist they won’t do it without the GOP.

That sets up a scenarios where Democrats send Rauner a budget without deep cuts or any tax increase. Basically, leaving it to Rauner to sign — or slash (that could put both parties in a political pickle. Democrats may look like the out-of-control spenders their critics paint them to be; Rauner could look like the cutthroat, out-of-touch millionaire. Will it be that Democrats throw the governor a hot potato, or will they play into his hands, making it easy on Rauner to throw the gauntlet?).

“What I think will happen with the budget is … we’ll pass one,” Rep. Linda Chapa LaVia, D- said. “And people need to realize that we just give directive to the governor on .. how to spend the money. It’s up to him to write the checks. And he can take our advice or he can ignore us.

“That’ll leave things “in a big mess,” Senate Republican Leader Christine Radogno says.”The fact of the matter is, if they do that, the governor will manage it and that will hurt the very constituents they’re talking about wanting to help. So it’s very incongruous. I think it’s very cynical. They need to get to the table and have a very serious discussion about reforms.” And then, she says, Republicans will have a serious discussion about raising taxes that could stave off cuts.

But that’s only after Rauner’s pro-business, anti-union agenda advances.

Thoughts?

*** UPDATE *** Erickson

While Republican Gov. Bruce Rauner’s budget blueprint called for a 31 percent cut to universities in the fiscal year beginning July 1, the Democratic proposal would pare the reduction to 6.5 percent, the Herald & Review Springfield Bureau has learned.

The potentially positive change for higher education is among a number of alterations Democrats are expected to highlight when they begin debating their spending plan in the closing days of the spring legislative session.

Republicans said university officials should remain wary of the Democratic budget since Rauner could veto all or parts of the plan if it is unbalanced.

“That’s a facade budget. That’s not going to be the budget at the end of the day because the governor is not going to sign that budget,” said Republican state Rep. Dan Brady of Bloomington, who represents Illinois State University.

* Flannery

Sources also told FOX 32 News that the Democrats may call for spending up to $37 billion. Gov. Rauner said the state has only about $32 billion for next year.

So if that budget passes, the Governor could sign it. He has the power to spend only for the services he thinks the state can afford.

Or, Option 2: Rauner could veto it outright.

Democrats would then need a supermajority to override his veto. But that would leave the governor with the Democrats budget and he again would spend only on the services he thinks the state could afford.

Or, Option 3: He could go line by line vetoing the parts of the budget he doesn’t like, which the Democrats would have to override line by line.

* Related…

* CTU to rally against Rauner turnaround plan: The Chicago Teachers Union is sending a delegation to Springfield this morning to lobby state lawmakers for more money, more benefits, cheaper housing and child care for union members, and higher taxes to pay for it all.

* Our Crazy Treatment of the Mentally Ill - Prison cells have replaced mental institutions.

  89 Comments      


Your daily “right to work” roundup

Thursday, May 21, 2015 - Posted by Rich Miller

* From the governor’s office…

Hi, Rich:

Boone County and Taylorville both passed the resolution.

Thanks!

ck

* From the Illinois AFL-CIO

Marseilles City Council unanimously rejects Rauner anti-worker resolution and passes a pro-worker resolution.

* I didn’t see anything online about either Boone County or Taylorville, but I did find some Marseilles news

Without discussion, the Marseilles City Council unanimously rejected Gov. Bruce Rauner’s Illinois Turnaround plan Wednesday night and passed a nonbinding resolution, which will be forwarded to officials in Springfield.

Mayor Jim Trager said the resolution was “a carbon copy” of the resolution passed May 5 by the Ottawa City Council.

Provisions of the resolution include:

    * “Passage of a local ‘right-to-work’ ordinance would undoubtedly generate legal challenges that our government would have to fruitlessly defend at a significant cost to 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.”

  21 Comments      


*** LIVE *** Session coverage

Thursday, May 21, 2015 - Posted by Rich Miller

* Constantly updated news via ScribbleLive, brought to you by The Illinois Kids Campaign Watch it happen as it happens

  4 Comments      


Rauner: “Expect a very long ‘extra’ session”

Thursday, May 21, 2015 - Posted by Rich Miller

* The governor penned a State Journal-Register op-ed

I’m the new guy in Springfield. I’m proud of that.

Although being new means I’m not as familiar with how things historically have been done in state government, it keeps me idealistic and hopeful. I’m not jaded or cynical about what we can accomplish to make Illinois great again.

But I’ve grown concerned by what I’ve seen in the legislature during the past few weeks. We’re approaching the end of the regular legislative session with no apparent long-term solution to the state’s budget, pension and economic mess.

* And then he lowered the boom

We’ve seen what happens to our economy, our taxpayers and our school children without reforms. Budget deadline or no budget deadline, I will not ask the people of Illinois to put more of their money into a broken system.

If legislators are willing to reform how we do business, they will find me an eager partner. If they are not, then they should expect a very long extra session because I will keep fighting for major reforms that will grow jobs and help properly fund services by shrinking waste inside government.

“Extra” session. Never heard that one before. Maybe it’s his way of avoiding the negative connotations of the word “overtime.”

Anyway, go read the whole thing.

  112 Comments      


Caption contest!

Thursday, May 21, 2015 - Posted by Rich Miller

* This crowd doesn’t gather together every day


  16 Comments      


That one’s gonna sting

Thursday, May 21, 2015 - Posted by Rich Miller

* Oof.

  27 Comments      


Protected: SUBSCRIBERS ONLY - Supplement to today’s edition

Thursday, May 21, 2015 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Thursday, May 21, 2015 - Posted by Rich Miller

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Good morning!

Thursday, May 21, 2015 - Posted by Rich Miller

* Bruuuuuuuuuce….

Someday we’ll look back on this and it will all seem funny

  14 Comments      


Your daily “right to work” roundup

Wednesday, May 20, 2015 - Posted by Rich Miller

* Nothing yet from the governor’s office. But here’s the AFL-CIO

Charleston City Council rescinds the Rauner resolution it passed weeks ago.

Rock Island County unanimously passed a pro-worker resolution tonight.

Franklin County Board unanimously passes a pro-labor resolution and unanimously votes down the Rauner anti-worker resolution tonight in Benton.

* Take it off the board

Six weeks after the original resolution was passed and two revisions later, City Council members voted down the local government relief resolution 3-2 during their meeting Tuesday.

The resolution, which was changed from “Supporting Local Government Empowerment and Reform” to “Supporting Local Government Relief and Reform,” went up for a vote after Mayor Larry Rennels opened the item to public discussion. Ultimately, Rennels and councilman Jeffrey Lahr voted in favor of the resolution while councilmen Brandon Combs, Matthew Hutti and Tim Newell voted against it.

The council reopened the resolution for discussion May 5 after a crowd packed the council chambers April 21 and addressed members concerning the measure. A different version, which removed portions of the resolution including a paragraph focused on who has control over what topics go into collective bargaining and also removed the term “prevailing wage,” was placed on file for public inspection.

The document was revised again before the final vote, this time taking out sections including a portion focused on right-to-work zones. Rennels said he wanted to focus specifically on areas of the resolution that affected Charleston. The resolution wouldn’t have enacted any changes; rather, it would send a message to Springfield that the city wants the state government to examine issues such as unfunded mandates, Rennels said.

* From RICO

Union supporters on Tuesday cheered Rock Island County Board Democrats who issued a defiant rebuke to what they say is Gov. Bruce Rauner’s efforts to weaken organized labor.

The board voted 17-0, all Democrats, for a resolution to “protect the middle class” that opposes Gov. Rauner’s proposals to allow right-to-work zones in Illinois communities and repealing rules that protect union wage rates on public projects. The board’s six Republicans abstained. […]

Rather than oppose it, Republican members abstained with Drue Mielke, R-Coal Valley, head of the board’s Republican caucus, reading from a prepared statement.

“This resolution is partisan, and although it does not mention him by name, it is a public repudiation of the governor of the state of Illinois,” Mr. Mielke said. “We should not be taking up this resolution, nor should we be taking up a resolution that supports the governor’s agenda.”

Not exactly a ringing GOP endorsement, that.

* On to Franklin County

The “Resolution to Protect the Middle Class” was adopted unanimously by the board at its meeting Tuesday night.

The document, which calls the labor movement “a historic cornerstone of the American middle class,” asserts that right-to-work zones are not within the authority of local governments, and that the repeal of prevailing wage requirements on construction projects will drive down wages and benefits and hurt the local economy. […]

Following the roll call vote in Benton on Tuesday night, the standing-room-only crowd in the courtroom — where the meeting had been moved because the usual county board meeting room would have been too small to hold everyone — stood and applauded.

* Related…

* Morton Grove elaborates on response to proposed state cuts: During the May 11 meeting, the board approve a resolution stating that the village would oppose any initiatives that would hurt the middle class.

  58 Comments      


Question of the day

Wednesday, May 20, 2015 - Posted by Rich Miller

* Speaker Madigan chats with Gov. Rauner…

* The Question: Caption?

  136 Comments      


SEIU blasts Rauner over contract talks

Wednesday, May 20, 2015 - Posted by Rich Miller

* Gov. Bruce Rauner’s administration is apparently playing hardball with SEIU over a union contract covering 50,000 childcare and home care workers. Negotiations began Monday, even though the contract expires June 30th. Rauner’s opening offer was pretty harsh. From a union insider…

Rauner wants to take away virtually all union benefits that have been bargained for by these employees over the years, including health care, for tens of thousands of low-wage workers. These employees don’t get state-insurance, by the way, but belong to a union-funded plan. Taking health insurance away would represent a real hardship for them.

What’s more, Rauner is demanding that his administration stop collecting dues from workers, a time-tested union-busting tactic.

He’d also cut training-which would adversely affect the quality-of-care for countless seniors and persons with disabilities.

Additionally, as if this were one of his newly-acquired private equity properties, he wants to convert these workers into “independent contractors.” He also wants to remove the state’s neutrality position on the union and make it much harder for workers and the union to communicate.

And even though the contract expires on June 30th, no further talks have been scheduled until - get this - June 23rd.

Oy.

What a summer this is gonna be.

* SEIU Healthcare Illinois Executive Vice President April Verrett, by the way, just issued a press release…

Bruce Rauner’s anti-worker efforts to eliminate bargained-for benefits and protections for home care workers and child care providers would deliberately submerge low-wage workers deeper into poverty.

What the state proposed on the governor’s behalf on Monday, May 18, has NOTHING to do with the public good or budget savings Rauner claims and everything to do with diminishing the voices of working families, punishing political opponents and gathering power. His unprecedented and hostile proposals — which include stripping health care from thousands of workers — would have a devastating impact on the tens of thousands of low-income workers and their families and put the tens of thousands seniors and children who depend on them at risk.

In addition to totally eliminating access to health coverage for workers, Rauner’s team also proposed eliminating essential training like CPR and eliminating the right of workers to have union dues deducted from their paycheck.

Let’s be clear: The people whom Gov. Rauner is willing to harm with this attack are low-wage workers, most of them women and people of color who are hovering at or in poverty. Their rights and benefits have been supported over the years by legislators and governors of BOTH parties.

What’s more, these workers fought for years for health coverage, training and professional development and the right to have a union. Gov. Rauner’s proposals set workers back and put seniors, people with disabilities, parents who depend on affordable child care and other vulnerable populations further at risk.

Refusing to collect dues and interfering with the ability of workers to communicate with their union has nothing to do with the budget and everything to do with an extreme ideology that has been rejected on a bipartisan basis.

Bruce Rauner has not brought a reasonable deal to the table and has declared war on care providers, many of them who struggle to make ends meet, and on the communities they serve.

While his ultra-wealthy donors enjoy his special protection, Bruce Rauner instead is willing to hurt the working families of Illinois and the most vulnerable among us.

I asked the governor’s office for a response a few hours ago and haven’t heard back. I’ll let you know if they say anything.

  120 Comments      


Meh

Wednesday, May 20, 2015 - Posted by Rich Miller

* AP

A group of freshmen Republican legislators is pushing for term limits, saying gridlock in the Illinois Legislature is a sign the status quo isn’t working.

The lawmakers held a news conference Wednesday to rail on the “entrenched leadership” in Springfield.

* But

None of the 11 lawmakers at the news conference said they’re voluntarily limiting their own time in office.

On the one hand, that’s kinda funny.

On the other hand, it’s not really hypocritical. We often see the same sort of illogical barbs aimed at those who want to see a tax increase: If you’re so concerned, how about you voluntarily send the state more money than you owe?

And, in reality, a bunch of minority party lawmakers have little to nothing to do with “entrenched” Springfield leadership. That press conference was really about the House Speaker, not rank and file members.

* I’m not a big fan of term limits, but I don’t think they would be the end of the world, either, as long as people realize that the governor would likely wind up with a whole lot more power than the office currently has. The legislative leadership has strengthened their somewhat weak constitutional position with impressive political and organizing skills (which will eventually deteriorate with turnover), creative rule-making and executive rule oversight (which hasn’t really been challenged).

I’d much rather see remap reform, but that’s not nearly as sexy in the waning days of a bitter spring legislative session.

  36 Comments      


Today’s number: $2.1 billion

Wednesday, May 20, 2015 - Posted by Rich Miller

* The problem, according to the Taxpayers’ Federation and the Center for Tax and Budget Accountability in a new report

According to the Illinois Comptroller, the state has run a deficit in its General Fund every year since at least 1991. The causes of these annual deficits vary, as do the potential solutions, but the data make one thing clear—antiquated tax policy is one of the significant contributors to Illinois’ long term fiscal shortcomings.

* So, what to do? One route is looking at the sales tax

For a sales tax to play its role of generating stable revenue for a fiscal system, it needs to apply broadly to most transactions that occur in the consumer economy. The reasons for this are easy to understand. First, consumer spending is the largest segment of both the nation’s and Illinois’ respective economies, accounting for nearly 70 percent of all economic activity. Second, consumer spending usually does not decline substantially—even during major economic downturns. For instance, during the Great Recession, consumer spending remained relatively constant, with real personal consumption expenditures declining by less than one percent from 2007 through 2010. Hence, if a sales tax base broadly applies to most transactions in the consumer economy, that sales tax will have the capacity to provide some stability to a state’s fiscal system, even when other more volatile/responsive revenues are declining rapidly. In addition, a broadly applicable sales tax is efficient—it does not distort consumer decision-making by exempting, and thereby favoring, one business sector over another.

* The case for the sales tax on services

Illinois’ sales tax applies to fewer service industries than do the sales taxes in all of Illinois’ neighboring states. Nationally, Illinois ranked 45th (out of 45) in the number of service industries identified as subject to its general sales tax. Because Illinois does not apply its sales tax to most services, it has what is considered a narrow sales tax base. This is problematic because research shows that a narrow–based tax is more volatile than a broad-based one. Volatility is not desirable in a sales tax, which is supposed to generate stable revenue for a fiscal system. Hence, broadening Illinois’ sales tax base to include more services than are currently taxed should decrease this volatility. This, in turn, should enable the sales tax to do a better job of generating stable revenue for the Illinois fiscal system. […]

in 1965, the sale of services accounted for 51 percent of the total Illinois economy, while the sale of goods accounted for 41 percent. Over the next half century, the Illinois economy greatly changed. By 2012, the sale of services increased to represent 72 percent of the state’s economy, while the sale of goods declined significantly, accounting for just 17 percent of the Illinois’ economy. Put another way, the base of the Illinois’ sales tax lost more than half of its value as a share of Illinois’ economy over the last four decades. […]

By leaving the majority of the largest and fastest growing sector of the state’s economy out of its sales tax base, Illinois has effectively ensured that its sales tax cannot perform the stability function needed for its fiscal system to be sound.

* What should be avoided

To modernize its sales tax, Illinois should expand its base to include consumer services, like pet grooming, haircuts, country club membership, health clubs, and lawn care.

The focus on consumer services is intentional. There are a number of service industries that should not be included in the state’s sales tax base for a variety of reasons. For instance, regardless of the service, business-to-business transactions should not be taxed, because taxing such transactions creates economic distortions and inefficiencies. Indeed, taxing business-to-business transactions typically results in “tax pyramiding,” which occurs when essentially one economic transaction is taxed multiple times during production and distribution, rather than just once upon final sale to the end-user. Tax pyramiding artificially increases the cost of a product or service as it flows through the economy, by taxing various stages of production.

* Bottom line

Based on COGFA’s analysis, an estimated $2.105 billion in additional revenue could be generated if the sales tax base was expanded to include primarily consumer service industries while excluding business-to-business transactions and professional services.

Coincidentally, that’s almost the entire amount of Gov. Rauner’s phony “savings” from pension reform next fiscal year.

* Greg Hinz

Local governments, which get at least an additional 1.25 cents on the dollar, would net another $526 million—money that would help Chicago, Oak Park, Schaumburg and other cities and towns throughout the state deal with budget problems including a proposed cut in state aid under Rauner’s budget.

The figure would be a lot higher if professional services were taxed, things such as legal and accounting fees. But the authors of the report say taxing such business-to-business charges are a bad idea. […]

Taxing construction services—such as carpentry, plumbing and painting—would net an estimated $795 million a year. Cable TV and other “program distribution” would get $11.6 million, data processing and other computer services $81 million, maintenance and janitorial services $28 million, and health clubs and tanning salons $11.3 million. A full list is at the end of the report.

To reach its $2.1 billion number, the groups took old estimates by the Commission on Government Forecasting and Accountability—the Legislature’s fiscal research unit—and adjusted them for inflation.

Thoughts?

  62 Comments      


House votes to ban “conversion therapy”

Wednesday, May 20, 2015 - Posted by Rich Miller

* From a press release…

State Representative Kelly Cassidy shepherded HB 217 to House approval Tuesday, moving Illinois closer to banning sexual orientation conversion therapy, a practice deemed disastrous for the well being of children by every prominent mental health organization.

“This archaic form of so-called treatment is based on an outdated and flawed philosophy that greatly increases the risk of suicide and mental anguish to the children who are forced to participate” Rep. Cassidy (D-Chicago) said. “I join a coalition of professional mental health organizations in applauding the passage of the bill.”

The legislation prohibits licensed mental health providers from engaging in sexual orientation change efforts, codifying the codes of ethics for mental health providers.

“The practice violates the basic Hippocratic oath of Do No Harm,” said Dr. Scott Leibowitz, Head Child and Adolescent Psychiatrist for the Gender and Sex Development Program at Ann & Robert H. Lurie Children’s Hospital of Chicago. “Promoting stigma and shame, rather than acceptance and support goes against the fundamental principles of our practice and poses a unique and serious danger to children.”

The bill passed with a vote of 68-43 and now goes to the Senate for consideration.

* Excerpt from an Equality Illinois release…

The bill passed 68 to 43, with 61 Democrats and seven Republicans voting to protect the LGBT youth of Illinois, including the House Republican leader Rep. Jim Durkin among the “yes” votes. The roll call continues the history in Illinois of all laws that advance LGBT equality succeeding due to votes from both parties.

“The fact that there was a bipartisan vote in favor of the bill in the House demonstrates that this is again not an issue based on political affiliation but on doing what is right for Illinois children. We hope that Senate Democrats and Republicans will similarly give serious consideration to supporting the bill and that Gov. Bruce Rauner will sign it.”

Equality Illinois and allied organizations have held two meetings with Gov. Rauner about the issue, and he expressed concern about the therapy’s effect on young people.

The bill prohibits licensed mental health care providers from engaging in sexual orientation change efforts with anyone under the age of 18. Sexual orientation change efforts are defined by the bill as any treatment or practice that seeks to change a person’s sexual orientation or gender identity. Such practices can negatively impact the mental and physical health of LGBT youth. For instance, LGBT youth who experience rejection and social stigmatization are more likely to have high levels of depression, more likely to engage in substance abuse, and more likely to attempt suicide.

Every major mental health organization in Illinois supports HB 217, including the Illinois Psychological Association, Illinois Psychiatric Society, American Psychoanalytic Association, Illinois Chapter of the National Association of Social Workers, and Illinois Chapter of the American Academy of Pediatrics.

The legislation does not apply to religious leaders and would not impact the ability of clergy to practice their religion. Similar legislation is now law in California, New Jersey, and the District of Columbia, and the Oregon legislature has sent a bill to the governor. Also, the U.S. Supreme Court has refused to hear a challenge to the New Jersey law.

The bill passed without debate.

* The Illinois Family Institute displayed its usual outrage…

Yesterday afternoon in an appalling disregard for children’s mental health, parental rights and religious liberty, the Illinois House voted 68 to 43 to pass HB 217, a bill to ban reparative therapy for children who suffer from unwanted same-sex attraction disorder. This bill was introduced by LBGTQ activist and State Representative Kelly Cassidy (D-Chicago). The bill received eight more votes than the sixty needed to pass!

This is an unmitigated disaster for children and families! It is a shame that not one conservative lawmaker challenged this proposal during floor debate. Not one lawmaker defended children and free speech from the tyranny of Leftists who demand we act, speak and think according to the dictates of their beliefs. Not one lawmaker reminded their colleagues that by diminishing the right to live out our faith, they are establishing the religion of secularism which the First Amendment decisively prohibits.

While a number of representatives were excused from session that afternoon, it is disappointing to report that seven Republicans sided with this pro-homosexual, anti-parental rights, anti-religious liberty legislation, including: State Representatives Dan Brady (Normal), Tim Butler (Springfield), Michael McAuliffe (Chicago), Bob Pritchard (Sycamore), Deputy “Leader” David Leitch (Peoria), and Assistant Republican “Leader” Ed Sullivan (Mundelein), who also voted to pass same-sex “marriage” in November 2013. Even Republican Minority “Leader” Jim Durkin (Burr Ridge) voted to further the devastation of families who have members struggling with the issue of unwanted same-sex attraction.

However, a number of Democrats did not support this radical agenda, including State Representatives Kate Cloonen (Kankakee), Jerry Costello (Red Bud),Anthony DeLuca (Chicago Heights), Brandon Phelps (Harrisburg), Larry Walsh Jr. (Joliet) and even Assistant Majority Leader John Bradley (Marion).

IFI is grateful for the moral clarity displayed by these and other members of the Illinois House of Representatives who opposed HB 217.

The bill now moves to the Illinois Senate, the more liberal chamber. Unless an outpouring of prayers, along with many visits and calls are made to senators’ local district offices, this bill will likely become law.

We are seeing an unprecedented attack on Illinois families, parental rights and religious liberty by the people who are repeatedly elected back into their positions of authority. Are you registered to vote? Do you vote?

If people of faith do not step out of their comfort zone and speak loudly and publicly; at the very least with their vote, we are assuredly leaving a legacy of tyranny and evil for our children and grandchildren.

* Rep. Tom Morrison explains his “No” vote

2. By restricting counseling options, HB 217 falsely sets lawmakers up as medical experts.

This bill claims that it’s always wrong for minors to seek counseling if they’re confused about their sexual orientation.

Page 8 of the bill says that type of counseling is allowed, “under no circumstances.” That means the minor cannot turn to a professional counselor for help, even if he or she is the one who desires to talk about unwanted sexual feelings one way or another.

Many of the bill’s sponsors would argue in reproductive health care that it is not the government’s place to come between a patient and his or her doctor.

Why is this different?

* But, in reality, there may not be much activity to ban, according to the Tribune

It’s unclear how common the practice is in Illinois. Supporters of a ban largely point to anecdotal evidence from people who have come forward to share their stories. Cassidy said she was unaware of any specific places practicing the therapy but said she has spoken to several “survivors.”

The Illinois Department of Financial and Professional Regulation, which oversees mental health providers, reported that it received one complaint related to the therapy in 2012. It was filed by the Southern Poverty Law Center, which has fought conversion therapy across the country. The state agency found no cause to discipline the therapist.

Sam Wolfe, a civil rights attorney at the law center, said it’s difficult to quantify how pervasive conversion therapy is in Illinois because conversion therapists operate through referral services and word of mouth instead of explicit advertising because of blowback in recent years.

The bill now goes to the Senate.

  48 Comments      


Exelon Credit Rated Higher Than “Junk Status” City of Chicago and CPS

Wednesday, May 20, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

According to Moody’s, Exelon’s credit is rated (Baa2) two notches higher than Chicago (Ba1) and four notches higher than CPS (Ba3). Yet Exelon is demanding a $1.6 BILLION bailout from struggling family, business and government ratepayers including more than $20 million from Chicago and CPS. Maybe Exelon should be bailing out Chicago and CPS instead of the other way around!

“A plan to financially reward Exelon Corp. for producing no-carbon energy and potentially save three Illinois nuclear plants from closure would cost ratepayers $1.6 billion over five years and strain budgets for financially strapped businesses and municipal governments, a study released Tuesday found.” - Associated Press, 4/21/15

Chicago Tribune: “Exelon-backed legislation could cost ratepayers $1.6B, study says”

We simply can’t afford to pad the pockets of Exelon shareholders while governments from Chicago to Cairo are in such dire straits. 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.

  Comments Off      


Rauner said he would do it, and he did it

Wednesday, May 20, 2015 - Posted by Rich Miller

* From a Northwest Herald editorial

By giving every Republican member of the state House and Senate campaign cash, Rauner is no better than the special interest groups and Springfield culture he campaigned against.

When voters put Rauner into office, they did so expecting change. Not even six months into his first term, and Rauner is giving voters signs that he may be more about fitting in and conforming than mixing it up.

There’s a lot to like about Rauner’s turnaround agenda, and we’ve supported the ideas that make sense and strive to make Illinois a better place to live and do business. We don’t, however, endorse business as usual.

Using campaign dollars to attain votes is a disappointment. We expected more from the man who promised to shakeup Springfield.

* Actually, Rauner promised to do exactly what he did last week way back in December of 2013. From my syndicated newspaper column last November

Last December, Bruce Rauner appeared on a WLS Radio talk show and revealed that he planned to form a new campaign committee to counter the power of Illinois House Speaker Michael Madigan.

“We’re gonna raise a PAC, we’re gonna raise a fund dedicated to the state legislature, members of both parties who take the tough votes,” Rauner said. “We’ve gotta protect the members who take tough votes.”

“Right now,” Rauner continued, “Madigan controls the legislature from his little pot of cash. It isn’t that much money. And he runs the whole state government out of that pot. We need a pro-business, pro-growth, pro-limited-government, pro-tax-reduction PAC down there in Springfield working with the legislature for those who take tough votes.”

Instead of one PAC, there’s two. One he controls and a “Democratic” PAC controlled by his pals.

* And from October of 2013

“And Madigan’s never dealt with someone like me. He’s dealt with career politicians who need favors, who need money, who are worried about re-election. That ain’t me. I can stand up to him.

“And I’m also a very aggressive negotiator. I know how to leverage and advantage. And I’ve got big advantages. The power of the governorship, if you’re willing to shake it up, is hugely powerful.

“You have executive order ability like very few other governors have. You have line item veto, amendatory veto. You control the checkbook and the spending. You control the contract negotiations with the government union bosses and the suppliers.

“I can do things no career politician would think about doing. I can run the government like a business, challenge the government unions and their power, transform their deal through contract negotiations, and stand up to Madigan, because I know where his special interest groups are, and I can go after them.”

So, he’s actually toned down his promises. At least for now.

* Related…

* Local lawmakers get Rauner money, say it won’t affect their decisions: “It’s sitting on a table at home right now,” Butler said of depositing the check in his campaign account. “I think we’ve just got to see how things play out. Obviously, there’s been a lot made of the fact that he’s cut these checks, so I’m kind of evaluating it right now.”… Butler said he disagrees with the notion that he’s expected to vote in favor of the governor’s agenda because of the contribution… Poe said he got $3,000 from Rauner. “I don’t intend to probably ever cash it,” Poe said. “Give it six months, and we’ll see what happens. I didn’t think I needed it right now and probably shouldn’t cash it.”

  48 Comments      


Dems drafting their own budget

Wednesday, May 20, 2015 - Posted by Rich Miller

* Subscribers know more about this development

House Democrats say they’re working behind the scenes to draw up their own budget plan they hope can pass before a May 31 deadline […]

“The truth is that what the governor is asking for is that we wholeheartedly accept his political ideology and agenda in exchange for a balanced budget,” Cullerton spokeswoman Rikeesha Phelon said. “The people of Illinois deserve a balanced budget with or without Gov. Rauner getting what he wants on a number of political fronts.”

Democrats aren’t saying what their budget plan would look like. If it contained a tax hike, that would play into Rauner’s hands. The governor could veto the measure and force lawmakers back to the table over the summer as he airs millions of dollars in TV ads ripping Democrats for trying to raise taxes before making other fixes.

* Reuters

Given the Democrats’ control of the state legislature and their opposition to many proposals for spending cuts, municipal bond fund managers see little alternative for Republican Governor Bruce Rauner other than eventually agreeing to hike taxes, such as raising the state’s income tax or broadening its sales tax base. […]

“What is quite simple a solution is to raise taxes,” said Tom Metzold, senior portfolio manager at Eaton Vance Management, which has been paring down its Illinois exposure. “You’re going to have a game of chicken over who blinks first - the cutting expenditure side or raising taxes side.” […]

“It doesn’t take much of a tax increase and/or a combination of some spending cuts to solve their problems, it just takes the political will,” said Guy Davidson, director of Municipal Fixed Income at AllianceBernstein, which owns some Illinois state general obligation bonds.

While Illinois ranks 31st among the states in terms of its state business tax climate for 2015, according to the Tax Foundation research group, its flat personal income tax rate is well below many other states, particularly for higher-income earners.

Davidson is way understating the problem here. These aren’t easy peasy things.

* Meanwhile, yet another House proposal that has no chance of passage, but could likely wind up as direct mail fodder for the Democrats since it’s quite popular

People who make more than $1 million per year would pay more in taxes after their incomes reached seven figures under a plan that lawmakers started considering today. […]

The plan would add a 3 percent tax to annual incomes over $1 million and send the money generated to Illinois schools.

Business leaders pushed back, saying the idea would be “another nail in the coffin” for businesses considering leaving Illinois. And he echoed last year’s criticisms of the 2014 referendum as a populist political move.

“It’s an easy vote to say yes to, much like being able to say: ‘Tax somebody else to take care of the problems that we face in this state,” Illinois Manufacturers Association President Greg Baise said.

The House Revenue Committee approved the measure along strictly partisan lines today.

* More

“After New Jersey implemented its millionaires tax, the state itself came out and estimated it lost $2.4 billion of income as a direct result of tax migration,” said Todd Maisch, president and CEO of the Illinois Chamber of Commerce. “We think tax migration is going to be a very big issue.”

“In talking to our members, tax policy is indeed a driver of where they locate,” said Greg Baise, president and CEO of the Illinois Manufacturers’ Association. “This will be another nail in the coffin for job creators who want to stay in the state.”

Baise said the amendment does not address tax policy in a broad manner, something Gov. Bruce Rauner has said he wants the legislature to do this spring.

Currie, though, said the number of millionaires in New Jersey increased after the state imposed a similar tax.

It’s gonna be a heckuva summer unless they can get their acts together right away.

…Adding… Wall St. Journal

Anti-tax advocates contend that higher taxes on the wealthy lead to millionaire flight. They say this has been seen in Maryland, Rhode Island, New Jersey and New York. The rich are mobile, they say. They can take their money, taxes and jobs wherever they are treated best.

But a new study focusing on New Jersey provides some of the most detailed evidence yet that so-called millionaire taxes have little effect on the movements of millionaires as a whole.

The study, by sociologists Cristobal Young at Stanford and Charles Varner at Princeton, studied the migration patterns of New Jersey’s millionaires before and after 2004, when the state imposed a “millionaire’s tax” that raised rates on those earning $500,000 or more to 8.97% from 6.37%.

The study found that the overall population of millionaires increased during the tax period. Some millionaires moved out, of course. But they were more than offset by the creation of new millionaires.

The study dug deeper to figure out whether the millionaires who were moving out did so because of the tax. As a control group, they used New Jersey residents who earned $200,000 to $500,000–in other words, high-earners who weren’t subject to the tax. They found that the rate of out-migration among millionaires was in line with and rate of out-migration of submillionaires. The tax rate, they concluded, had no measurable impact.

* Related…

* Expert panel criticizes medical care at Illinois prisons

* State tardy on $10 million in funding to U of I Extension

  70 Comments      


Meanwhile, in Opposite Land…

Wednesday, May 20, 2015 - Posted by Rich Miller

* California’s spending is able to rise 6 percent next fiscal year because the state previously did the fiscally responsible thing of cutting spending and raising taxes

California Governor Jerry Brown said an expanding economy has channeled an additional $6.7 billion in revenue into state coffers, allowing him to boost proposed spending next year to a record $115 billion.

Most extra money will go to schools, Brown said Thursday at a Sacramento news conference where he released a revised budget for the year that begins July 1. Fellow members of the Democratic Party who control the legislature said he should spare some cash to augment programs for the poor. […]

Brown, 77, the longest-serving governor in California history, has steered the world’s seventh-largest economy away from deficits and turmoil. At points, it paid bills with IOUs. In the past two years, however, the three biggest bond-rating companies raised their rankings on California four times, more than any other state.

Voters increased taxes in 2012 and let lawmakers pass budgets with a simple majority instead of a two-thirds vote. Brown is capitalizing on a surge in revenue from capital-gains taxes that turned a $25 billion deficit four years ago into a surplus. […]

Brown’s new plan would provide health care to undocumented immigrants and offer an additional $2.2 billion for responding to a record drought.

Brown announced an agreement with University of California President Janet Napolitano that would freeze in-state tuition for two years by steering $436 million to the university system’s pension obligations, among other funding increases. Napolitano and Brown clashed last year when the Board of Regents granted her authority to raise tuition, inciting student protests. […]

Brown’s plan would create an earned-income tax credit to steer $380 million to 2 million low-income workers. The credit would provide an average $460 annually to households without dependents whose income falls below $6,580 and those with at least three dependents earning below $13,870.

  69 Comments      


The Democrats fire back

Wednesday, May 20, 2015 - Posted by Rich Miller

* I posted remarks at length yesterday by House Republican Leader Jim Durkin and Senate GOP Leader Christine Radogno about how the Democrats were walking away from the “working groups” process in an attempt to push the session into overtime. Here are some stories with the Democratic response. Riopell..

A spokeswoman for Senate President John Cullerton, a Chicago Democrat, criticized Republicans’ tone.

“It’s counterproductive and raises questions about the true goal of the governor’s secret meetings,” spokeswoman Rikeesha Phelon said. “We have been fully engaged in the process and continue to hope that we can arrive at a balanced and bipartisan budget.”

* Erickson

Democrats say they are “engaged in the process,” but have warned the governor’s “Turnaround Agenda” could hurt the middle-class.

“I don’t think anybody would realistically expect the progress that working families have made in Illinois would be dismantled in a few months,” said Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago. “It’s not going the way they want. But it is what it is.” […]

A spokeswoman for Senate President John Cullerton, D-Chicago, said the Republican announcement puts a damper on the session, which is scheduled to end on May 31 with the adoption of a budget.

“Today’s press conference really does change the temperature in the building and will probably prove to be rather counterproductive,” Phelon said. […]

“Their complaints are a little curious,” Brown said. “I don’t think there is anything different happening there.”

* WCIA

However, Illinois Representative Mike Smiddy (D-Port Byron) said Republicans are sabotaging the negotiations.

“If anything is going to get done, it’s probably going to get done by the Democrats,” Smiddy said. “And as usual the Republicans are going to be sitting on their hands come crunch time with the budget.”

Steve Brown, spokesperson for Illinois House Speaker Michael Madigan (D-Chicago), called the press conference a distraction after Republicans came under fire for taking thousands of dollars from Bruce Rauner’s campaign

* Finke

“We have been having roll calls on the signature elements of (Rauner’s agenda),” said Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago. “I don’t know how they can justify making that kind of a claim.”

Brown also said that to the best of his knowledge, Democrats are still participating in the working groups.

Senate Democrats are also participating, said Rikeesha Phelon, spokeswoman for Senate President John Cullerton, D-Chicago. […]

She said Cullerton “is disappointed in the change in tone in Springfield today. It’s unnecessary and counterproductive when we have such a short time to produce a balanced budget. The governor is basically asking the members of the General Assembly to wholeheartedly embrace his political agenda in exchange for producing a balanced budget.”

* AP

Steve Brown, spokesman for Democratic House Speaker Michael Madigan, fired back at Republicans for pushing an agenda he says hurts working people.

“I’m sure nobody seriously believed we’re going to dismantle decades of progress working families have made just because somebody’s showing a Power Point around the state,” Brown said, a reference to a Power Point presentation Rauner has frequently used to outline his agenda.

Oy.

  43 Comments      


Keeping Illinois Nuclear Plants Open: Good For Our Communities & Illinois

Wednesday, May 20, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Ben Lowers, Police Chief in Clinton, Illinois:

    As Police Chief in Clinton, I know firsthand of the significant impact the Clinton Power Station has on my community. It employs nearly 700 of our friends and neighbors and funds local government services including schools, fire and emergency response through the $12.6 million it pays in taxes every year.

    Outdated energy policies are forcing nuclear energy plants nationwide to close down and Clinton could be next. These closures devastate local communities. Jobs are lost. Services are cut. Last year, a Vermont town eliminated its entire police department after its local plant closed down.

    Clinton cannot afford this and neither can Illinois. That is why I support a legislative proposal called the Low Carbon Portfolio Standard. This proposal is good for our state’s economic health and would help prevent plants like Clinton Power Station from closing.

    I urge our legislators in Springfield to act now and vote YES on the Low Carbon Portfolio Standard - House Bill 3293 & Senate Bill 1585.

To learn more go to www.nuclearpowersillinois.com

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Rauner loses fair share argument in federal court, but three employees allowed to proceed

Wednesday, May 20, 2015 - Posted by Rich Miller

* I tried posting this story yesterday on my phone and couldn’t get it to work right. Sorry about that. Let’s first go to the AP

Illinois Gov. Bruce Rauner’s lawsuit over forced fees paid by non-union state workers may proceed, but without the governor participating, a federal judge ruled yesterday.

U.S. District Judge Robert Gettleman decreed that the Republican, who has tried to limit labor unions’ political influence in his short tenure, does not have sufficient interest in the matter to seek a federal opinion that so-called “fair-share” fees are unconstitutional.
And he declared Rauner cannot collect the fair-share fees and keep them in a separate account—away from the unions—until the matter is settled.

But the judge decided that three non-union Illinois workers who were added to the suit later may press the case. Mark Janus of the Department of Healthcare and Family Services, Marie Quigley of the Department of Public Health and the Transportation Department’s Brian Trygg are better positioned to show “injury” from being forced to pay the fees, but they must prove as legal action moves forward that federal intervention is justified.

Rauner was “greatly encouraged” by the decision, a spokeswoman said.

* Tribune

In his ruling, Gettleman said Rauner lacked standing to challenge public unions in his official capacity because he had “no personal interest at stake.”

“In effect, he seeks to represent the non-member employees subject to the fair share provisions of the collective bargaining agreements,” Gettleman said of Rauner and non-union workers. “He has no standing to do so. They must do it on their own.”

In an attempt to move forward with his original lawsuit, Rauner amended it to include three non-union employees who oppose making the fair share payments. But Gettleman said Rauner lacked the authority to add the workers to his lawsuit without court permission.

Gettleman acknowledged the workers had standing to file suit to challenge the payments and agreed “in the interest of judicial economy” to allow their complaint to proceed separately. He ordered attorneys for the state’s public employee unions to respond to the suit by June 10.

* Illinois AFL-CIO react…

A federal lawsuit brought by Illinois Governor Bruce Rauner against 25 labor unions representing state employees has been dismissed by the US District Court for the Northern District of Illinois—the latest in a string of setbacks for the governor’s efforts to strip the rights of all workers to have strong union representation.

“We’re gratified that the court has rejected Governor Rauner’s latest ploy to weaken the unions that represent police officers, child protection workers, nurses and all who serve our state,” Illinois AFL-CIO president Michael T. Carrigan said. “This should be a strong signal to the governor that it’s time he treats public service workers with respect.”

Rauner filed the suit in February, at the same time he issued an executive order refusing to comply with federal and state laws that provide for fair share agreements, under which union-represented employees who choose not to join the union instead pay a proportional fair share of the cost of union representation.

Today, Judge Robert W. Gettleman granted motions by the unions and Attorney General Lisa Madigan, dismissing Rauner’s complaint for lack of standing and subject matter jurisdiction.

Judge Gettleman also denied Rauner’s request to place fair share fees in escrow.

He allowed three individual state employee plaintiffs to pursue the case in their own right.

* The full ruling is here. From the judge’s conclusion

For the reasons explained above, the Employees’ motion to file their complaint in intervention (Doc. 91) is granted and the complaint will be treated as the operative complaint in this action. The Unions’ and Madigan’s motions to dismiss the original complaint (Docs. 40, 51) are granted. The Governor’s motion to confirm the first amended complaint (Doc. 97) and motion to dismiss defendants’ motions to dismiss as moot (Doc. 99) are denied. The first amended complaint (Doc. 102) is dismissed. The Governor’s motion to place fair share fees in escrow (Doc. 83) is denied as moot. The remaining defendants are ordered to respond to the new operative complaint on or before June 10, 2015.

  89 Comments      


*** LIVE *** Session coverage

Wednesday, May 20, 2015 - Posted by Rich Miller

* The Illinois Kids Campaign is the sponsor, the House and Senate provide the entertainment. Watch it all via ScribbleLive

  1 Comment      


Good morning!

Wednesday, May 20, 2015 - Posted by Rich Miller

* Ladies and gents, Townes Van Zandt

Than a passenger train can haul

  3 Comments      


Serving Consumers, Honoring Veterans – Credit Union Cooperative Values in Action

Wednesday, May 20, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Credit unions are dedicated to fulfilling the daily financial needs of their membership and serving the needs of their communities. The movement’s “People Helping People” philosophy also motivates credit unions to participate in meaningful and important local activities, such as honoring our veterans.

As a thank you for their ultimate sacrifice to our country, credit unions from across the state unite to sponsor wreaths to decorate the gravesites of veterans from each branch of the military during the holidays. This past year, through member donations collected at their branches and with funds directly provided by the credit unions themselves, nearly 570 gravesites were decorated with wreaths sponsored by Illinois credit unions at the Abraham Lincoln National Cemetery, as well as at Arlington National Cemetery in Washington, D.C. True to their mission, groups of volunteers from Illinois credit unions also participate in the ceremonial act of placing wreaths at the gravesites.

As not-for-profit financial cooperatives with a mantra of “People Before Profits”, credit unions are a highly valued resource by nearly 3 million Illinois consumers — and remembered for their efforts in serving their communities this Memorial holiday and every day.

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Wednesday, May 20, 2015 - Posted by Rich Miller

This post is password protected. To view it please enter your password below:

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« NEWER POSTS PREVIOUS POSTS »
* Isabel’s afternoon roundup (updated)
* SUBSCRIBERS ONLY - Fundraiser list
* Feds approve Medicaid coverage for state violence prevention pilot project
* Question of the day
* Bost and Bailey set aside feud as Illinois Republicans tout unity at RNC delegate breakfast
* State pre-pays $422 million in pension payments
* Dillard's gambit
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Illinois react (Updated and comments opened)
* Yesterday's stories

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