If Democrats want to send a budget to Gov. Bruce Rauner, they might have to do so without the votes of some suburban party members in the Illinois Senate
Some Senate Democrats are balking at the idea of approving a budget that would spend $3 billion more than the state is set to take in next year as party leaders prepare to send the spending plan to Rauner.
“I’m not going to be supporting an unbalanced budget,” said state Sen. Mike Noland, an Elgin Democrat.
State Sen. Tom Cullerton, a Villa Park Democrat, said he’d also not vote for a plan that has a deficit that big. Democratic state Sens. Julie Morrison of Deerfield and Melinda Bush of Grayslake say they’re undecided.
“That (deficit spending) is kind of how we got here,” Morrison said.
* From the governor’s office…
ICYMI: The Daily Herald
SPRINGFIELD – The Daily Herald reports suburban Democrats do not back the proposed unbalanced budget by Speaker Madigan, which currently has a hole of $4 billion. If covering this story, please attribute the following statement to Lance Trover, Director of Communications.
“There is now bipartisan opposition to Speaker Madigan’s plan to double down on a broken system and avoid critical reforms needed to turnaround Illinois. Now is the time for all members of the General Assembly to make clear whether they stand with taxpayers and for reform or will continue to be controlled by Speaker Madigan.”
OK, first of all, Noland and Cullerton are both considering congressional bids. Bush and Morrison are targets. Targets and congressional candidates rarely vote for budgets.
But this does show the rapidly rising hostility between Rauner and the Speaker. And it probably tips us to the subject matter of the coming TV ad campaign.
Whew, man, it’s gonna be a long, hot summer.
*** UPDATE *** Speaker Madigan’s spokesman just said that perhaps the governor’s press secretary should “slow down his typing.”
Why would he want to do that? Because, Brownie said, there was nothing in what those Democratic Senators said to indicate that they favored the governor’s “non-budget items.”
[ *** End Of Update *** ]
* But Madigan’s proposal is being supported by at least one group. From a press release…
News Release: TAP Supports Madigan Budget Proposal
State leaders of The Autism Program of Illinois (TAP) today called on Illinois elected officials to adopt a state budget that meets the needs of Illinois’ most vulnerable citizens. Russell J. Bonanno, state director of the TAP network, called on legislators and Governor Rauner to avoid exposing Illinois families to months of uncertainty that will accompany an ongoing political stalemate over the FY 2016 budget.
“It has become clear that Illinois’ fiscal crisis cannot be solved simply by attempting to cut our way out of it,” Bonanno said. “It is both unfair and unreasonable to balance the state budget on the backs of those dependent on state human services programs – including the families of more than 45,000 children with an autism spectrum disorder. It is incumbent upon our leaders to fulfill one of the pre-eminent duties of government: to accomplish for our most vulnerable citizens those things which they cannot accomplish for themselves.”
Total funding for TAP, amounting to $4.3 million, was eliminated from the state budget for the coming fiscal year in the budget presented to the General Assembly on February 18. If TAP funding is not restored to the budget, more than 15,000 Illinois families would have nowhere to turn for critically needed services. Most autism services are not covered by the state Medicaid program, and TAP network partners have stated that most of the program’s 19 locations in Illinois would simply close their doors if funding is not continued. A number of families served by TAP have indicated they would seriously consider relocation to another state if AP funding is not continued. An effort to discontinue TAP funding for the remainder of the current fiscal year was averted when FY 2015 revenues came in at a higher-than-expected rate in April.
“While our state faces significant fiscal challenges, we want to make our position clear,” Bonanno said. “We support any budget proposal which preserves funding for critical human services programs, including TAP. At the present time, House Bill 4165, advanced by Speaker Madigan, is the only budget proposal under consideration that restores TAP funding. As the Speaker acknowledged, his budget proposal requires additional revenue to balance the budget. We support the Speaker’s budget and urge our political leaders to work together to balance the budget by finding revenues to meet our needs.”
“The elimination of TAP from the FY 2016 state budget, as proposed in February, would be penny wise and pound foolish,” Bonanno concluded. “Many studies, including those cited by the Governor in his budget message, conclude that early and effective intervention for children with an autism spectrum disorder actually saves money over the long run by preventing the need for more costly services later in life.”
Cook County State’s Attorney Anita Alvarez has torn a gaping hole in pension reform legislation being pushed in Springfield by Cook County Board President Toni Preckwinkle.
In a move loaded with political implications, Alvarez’s office wrote a legal opinion declaring that the bill “is unconstitutional” because it would reduce benefits in the county’s current pension system without bargaining those changes with employee labor groups.
The bill represents “a unilateral imposition of changed terms, many of which diminish and impair existing retirement annuity benefits,” states the letter, which is signed by Daniel Gallagher, deputy state’s attorney and chief of the Civil Actions Bureau. Preckwinkle’s proposal cannot stand after a recent Illinois Supreme Court decision tossing out pension changes that reduced benefits for state employees, the opinion says.
Preckwinkle’s office had no immediate reaction to the May 21 letter, which is labeled a “confidential attorney client communication.” Crain’s obtained a copy from a source who declined to be named.
The opinion is potentially very bad news for Preckwinkle, whose bill already faced heavy head winds in Springfield, where legislators are caught up in a wider budget war.
* I got to the Summer Camp music festival later than expected Friday. It was the usual stuff. Flat tire on the camper, which had been in storage all winter, and no water hookups at the campground meant I had to go on an H2O search before I arrived, finally finding some at a horse farm a few miles from the festival site.
So, I had plenty of water, but the filter housing had shattered during the winter (totally my fault) and I ended up with water all over the bathroom floor when I turned on the pump. After what seemed like hours, my friend and I eventually figured out how to reroute the water around the busted filter but then I tightened something too tight and broke a piece of plastic and there was more water on the floor.
Ah, the heck with it, my friend said. Nobody’s showering here anyway. Let’s go listen to some music.
And did we ever.
Trampled by Turtles was our first stop. Solid, as always. Umphrey’s McGee put on some astounding shows on Friday, including a hugely entertaining set with Gene Ween. And then we closed out the night with a 12:30 show by one of my favorite bands, Trigger Hippy. Right up front, man. I was in heaven.
Saturday started with blueberry pancakes (I went off Atkins and indulged myself), hippie shopping and then a show by Kung Fu. I’d never seen them before, but I’d heard some of their music and was delighted by their performance.
* My friend had to leave after that show (family obligations) so I was on my own. I strolled through the massive grounds at 3 Sisters Park and eventually figured I needed a nap. Late night, early morning, etc. On my way back to the camper I heard a band playing and wandered over to a small side stage. I was really tired, though, and decided to leave after one song.
But then I stopped on my way out and said to myself, “Self, you’re not here to sleep, you’re here for the music.” Plus, the band was pretty good, so I turned around and walked back to the stage.
* If you’re lucky, there’s a moment during a break when you can feel your usual worries and urgencies dissipate, or even disappear. Despite all the fun I’d had at the previous sets, I had allowed life’s hassles to interfere just a bit. The Fergus Daly Band finally broke that spell…
* They’re local legends in Lafayette, Indiana, but don’t hold their home state against them. They’re some cool dudes. I ran into them at the Violent Femmes show later that evening and had a chance to hang out with them a while, passing around flasks and basking in the revelry of a hard-charging Wisconsin band which hasn’t seemed to lose a step in all those years.
I told the group about how I’d left their show then turned around and came back, and mandolin/banjo/vocalist Joe Kollman shouted “You’re the one!”
The band didn’t make much money on the gig, but they were all hoping that their set would turn on at least one person. Maybe that person would tell somebody else and maybe word would spread.
I told them about my website and we talked briefly about Indiana politics (a sore spot with the band members), and I promised them a post.
I cannot promise that they’ll do for you what they did for me. It was a special set of circumstances, after all, and a special place. But with our state government falling down around our ears right now, it most certainly can’t hurt, right?
Ending a costly court fight that City Hall blundered into, Mayor Rahm Emanuel’s administration has paid more than $62 million to settle a dispute with the private operators of four city-owned parking garages downtown, records show.
The payment last month ended City Hall’s long and unsuccessful legal fight against claims from investors in the four privately operated garages under Millennium Park and Grant Park.
The dispute dates back six years. That’s when aides to former Mayor Richard M. Daley mistakenly approved a parking garage in the new Aqua building at 225 N. Columbus Dr.
Under the 2006 privatization deal, the Daley administration received $563 million to lease the parking garages for 99 years. As part of the deal, the city wasn’t supposed to allow any new competitors in a vast area surrounding the garages.
But less than three years after the Chicago City Council approved the deal, the Daley administration allowed the Aqua garage to open to the public just a block from the nearest of the privatized lots.
It was an alley fight of epic proportions, with taxpayers ending up with a costly fat lip.
Cook County taxpayers ended up being out $44.1 million as the result of a decade-long dispute that began when the county’s sewage-treatment agency blocked access to an alley next to its Near North Side headquarters, using a gate, dumpsters and parked cars to hinder construction of the luxury high-rise condo building next door at Michigan and Erie.
It ended with a fizzle, when the Illinois Supreme Court said last Sept. 24 that it was refusing to hear an appeal from the Metropolitan Water Reclamation District of Greater Chicago, which had been ordered to pay millions of dollars in damages to the condo building’s developers.
The district finally paid up on Oct. 2, writing a $39,495,017 check to the developers, NM Project Company LLC, to cover the cost of construction delays on the Ritz-Carlton Residences caused by the obstacles placed in the alley, newly obtained records show.
The district finished settling up its legal bills in December. Its total legal tab for the alley fight: $4,642,766.
Owners of the Casino Queen say they would like to buy Fairmount Park, contingent upon a deal to allow slot machine gaming at horse tracks being passed by the Illinois Legislature< The move also would also require regulatory approval by the Illinois Gaming Board.
The casino, located in East St. Lous, and the horse track, located in Collinsville, are longtime competitors for area gambling dollars and have been at odds over previous proposals in the General Assembly to allow slot machines at tracks. [...]
“This agreement recognizes a two-step process,” [Casino Queen President Jeff Watson] said. “The first step was reaching an agreement and the second step is working with our legislators to craft a gaming bill that ensures the success of both companies while generating much-needed tax revenue for the state of Illinois and local communities.” [...]
State Sen. James Clayborne, D-Belleville, said he is hopeful legislation can be passed to complete the deal.
The last gaming bill floated in 2014 cut Fairmount Park out of the slots at tracks provision after demands from the Queen.
Despite overwhelming support from voters at last fall’s general election, an increase in the minimum wage appears to be dead in the spring session of the Illinois General Assembly.
Demonstrators were still rallying for it in the Capitol as recently as last week, and Sen. Kimberly Lightford’s Senate Bill 11 passed that chamber 35-18 in February. The Maywood Democrat’s bill would increase the hourly minimum wage from $8.25 to $9 everywhere in the state except Chicago, which is moving toward a wage of at least $13 per hour. But three months later, Lightford’s proposal has yet to move in the House.
SB 11 would take effected July 1, and each year on that date there would be an increase of 50 cents until the state’s minimum wage reached $11 in 2019. Chicago Democratic Rep. Art Turner is chief sponsor of the legislation in the House. With some legislators focused on dodging deep program cuts and eliminations, Turner says the minimum wage bump may end up sidelined — for now.
* From a newspaper column I wrote last December about the minimum wage hike…
Speaker Madigan himself shares in the blame here. Yes, he’s not all-powerful, but he probably could’ve passed a minimum wage bill during the spring session. Instead, he didn’t want to rile up business groups before an election and believed he could use the issue to fire up his party’s base and the unions in the November election.
As Champaign News-Gazette columnist Jim Dey wrote not long ago, former Senate President Phil Rock’s autobiography contains a story which explains Madigan to a “T.”
Rock wrote in his book “Nobody Calls Just to Say Hello.” that he wanted to pass a bill guaranteeing women unpaid maternity leave. Rock told Madigan and another House Democrat that he’d like to get the issue off the table by passing it. The Senate President believed Madigan was stalling.
“We jousted back and forth, and one of the House members said to me, ‘You know, I’m getting a little tired of you trying to do what’s right all the time. We’ve got a great political issue here,’” Rock wrote.
So, the answer is it’ll pop back up whenever Madigan thinks it’ll be useful against the governor. And it’s probably safe to say it’ll be designed to be vetoed. Madigan is closely allied to the Retail Merchants Association, which vehemently opposes a minimum wage hike.
* Speaker Madigan on Gov. Rauner tying his Turnaround Agenda to the state budget…
“I’m not going to say that the gentleman went wrong, I’m not going to say that,” Madigan says. “What he’s attempting to do is mix apples and oranges. He’s attempting to bring these non-budget issues into the budget making. That’s where there’ a pretty serious difference of opinion between he and I and other members of the legislature.”
Gov. Edgar used to try and keep the budget separate from other issues (partly because of Madigan’s asks), but Madigan occasionally negotiated dozens of side deals unrelated to budgets, but tied directly to the budget outcome under Gov. Rod Blagojevich.
Now, I want you to put your Rauner hate and your Madigan hate out of your collective minds and forget about this year’s fight for just one moment…
* The Question: In general, do you think that budget deals should be negotiated on their own, or do you think governors and legislative leaders should be able to make side deals a prerequisite for passing budgets? Take the poll and then explain your answer in comments, please.
Tuesday, May 26, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
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Illinois businesses are poised to take advantage of investment crowdfunding in the wake of legislation that passed out of the Illinois Senate in unanimous fashion on May 20. House Bill 3429, which also passed unanimously in the Illinois House of Representatives, will now move to Gov. Bruce Rauner’s desk.
With the governor’s signature, Illinois will become home to the most competitive crowdfunding regulations in the nation. […]
The JOBS Act dictated that investment crowdfunding could be done by creating intrastate exemptions – meaning Illinois businesses could only raise money from Illinois residents – and put the onus on state lawmakers to develop crowdfunding exemptions for their states before constituents could use this type of financing. Pending the governor’s approval, Illinois will become the 19th state to pass a crowdfunding exemption.
The bill will give Illinoisans the highest investment limits of any regulatory framework for crowdfunding in the country. It would also allow an especially broad pool of eligible investors while ensuring flexibility from the Secretary of State’s office to help with customizing the rules in order to avoid stumbling blocks appearing in other states. The rules of the game for crowdfunding in Illinois include:
* Companies with audited financials can raise up to $4 million per year
* Companies with unaudited financials can raise up to $1 million per year
* Accredited investors can invest as much as they want in each offering
* Unaccredited investors can invest up to $5,000 per year in each offering
This innovative form of funding is described by economist John Berlau as “finance of the people, by the people, for the people.” For this reason, as well as crowdfunding’s explosive potential for economic growth in a state with a moribund business climate, investment crowdfunding has been a key element of the Illinois Policy Institute’s legislative agenda for entrepreneurs, which was developed in September 2014.
Under state law, local governments in Illinois don’t have the power to make necessary reforms to their pension systems. Even in the most extreme cases of fiscal instability, bankruptcy is not an option. This leaves local officials with few options, and often leaves taxpayers stuck paying higher taxes and fees when local governments don’t make spending cuts.
Local governments should have more control over how they operate. That means having the option to file for bankruptcy and it also means having the ability to reform local pension systems. A recent piece of legislation filed by state Rep. Ron Sandack, R-Downers Grove, would address the former.
Sandack’s proposal would give Illinois municipalities the option to file for bankruptcy. “I know what difficulty it is being in charge of a municipality … with ever-increasing police and fire pensions and very little in the form of power to do anything about it,” Sandack said. The goal of the proposal is simply to give towns in Illinois an additional tool that may be used to help control local finances.
As Sandack correctly points out, pensions are a driving factor in the conversation over municipal bankruptcy in Illinois. Municipalities across the state are struggling under the weight of rapidly increasing pension costs. Just between 2000 and 2010, the aggregate unfunded pension liabilities for local pension systems in Illinois grew to more than $12 billion from $1 billion.
We’ve seen time and again that municipal bankruptcies tend to give bondholders a haircut and barely touch pension payments. In these uncertain times, when the governor is pushing to slash half of local governments’ revenue sharing and freeze local property taxes and with no pension solution in sight, if you want to tank just about every municipal credit rating in this state, then go ahead and pass that bill.
Since the November election, Mr. Rauner’s campaign committee has raised more than $21 million, with nearly all of the money coming from Mr. Rauner, Mr. Griffin and Richard Uihlein, chief executive of a Wisconsin-based packaging company.
The committee on its own appears to be outpacing the combined total raised by more than 30 governors starting four-year terms in 2011, according to state-level data aggregated by the National Institute on Money in State Politics. Similar data isn’t yet available for governors elected in 2014 because of state-by-state filing requirements.
In addition to his campaign committee, Mr. Rauner has a newly formed political-action committee that has raised $4.25 million in recent weeks from Mr. Zell and him.
A committee formed by Democrats with ties to the business community also has entered the budget fray, frustrated with the current party leadership. So far it has taken in $8.5 million from five individuals, including Sam Zell’s wife, Helen, and Texas billionaire John Arnold, according to state campaign finance records.
“It creates a very different environment where you have a small number of wealthy individuals who come in—and in a very short time—create a huge presence,” said Kent Redfield, a professor emeritus of political studies at the University of Illinois at Springfield.
[h/t: Wordslinger]
Rauner would say he’s just trying to break the stranglehold of the special interests, and that ain’t gonna be cheap. But that assumes Rauner and his wealthy pals are on the right path for Illinois.
Whether the money will be effective in helping to move Mr. Rauner’s agenda is an open question. The governor last year poured millions of dollars into the Illinois Republican Party, local committees and legislative races, and the GOP didn’t make a dent in the Democratic majority even as Republicans gained in states nationwide.
And Mr. Schwarzenegger’s series of ballot initiatives all failed despite an infusion of millions from his personal coffers.
Already there are concerns that the recent fundraising concentrates influence over public policy in the hands of a small group of wealthy individuals.
“I’m certainly not going to claim under the old system the average Joe got fairly represented. What I’m saying is this may be an even more unfair system,” said David Melton, executive director of Illinois Campaign for Political Reform.
Tuesday, May 26, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
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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.
The Rauner Administration is pushing for sweeping changes to the AFSCME Master Contract. With dozens of proposed changes to contract language, pay and benefits on the table, they are aiming to drastically diminish the rights of employees, weaken the role of the union, and drive down the standard of living of our families.
Rauner has said that if we don’t agree to his terms, he’ll force a strike and shut down state government until we do. Those kind of threats don’t serve the bargaining process or the citizens of our state well. The services we provide are essential to Illinois citizens. And there’s no way that ‘replacement workers’ could perform the complex and challenging jobs that we do. That’s why our union is doing everything possible to reach a fair settlement at the bargaining table.
And that’s why it’s essential that we stand up and stand together now to say “NO WAY” to Rauner’s demands. We know that times are tough and we’re prepared to do our part, but we won’t go backwards or back down when it comes to our rights, our jobs, or our economic security.
On June 9-11, AFSCME local unions will hold rallies at worksites all across the state. Our message is clear: “State workers deserve a fair contract. Illinois citizens deserve quality services.” Contact your local union for the date, time and location of the rally nearest you.
And be sure to reach out to your local community. With the AFSCME “Friends and Family” cards or with yard signs or window signs, ask local businesses, elected officials, other labor unions, to stand with state workers. Remind them of the vital services that we provide and on which citizens depend.
Your AFSCME Bargaining Committee is back at the table with the Administration this week—and again next week. The Committee is working intensively to reach an agreement, but Management is showing little signs of moving off its hard-line demands.
The current union contract will expire on June 30. If no agreement is reached by then, normally the parties would agree to a contract extension that keeps the terms of the current contract in place. But there’s no way to know at this point whether the Rauner Administration will agree to such an extension.
Whatever may come, we can withstand the storm if we continue to build on the commitment and unity that are the hallmarks of our union.
• No wage increases.
• Freeze all step increases.
• Eliminate longevity pay (including for all those currently receiving it).
• Eliminate almost all semi‐automatic promotions.
• Eliminate maximum security pay.
• Reduce call‐back pay and stand‐by pay.
• Restructure the group health plan to drastically shift costs to employees—with employees paying 40% of the premium cost PLUS 40% of the cost of medical care, paid through much higher co‐pays, deductibles, and co‐insurance. Employees’ costs would increase by thousands of dollars.
• Increase dental premiums by more than 100%.
• Increase retiree health insurance costs.
• Increase “out‐of‐pocket” maximums, likely to the highest allowable under federal law.
• Require all employees hired before July 1, 2011 to “voluntarily” agree to reduce their pension benefits to the Tier 2 level.
• Eliminate the Upward Mobility Program in its entirety, as well as all other forms of tuition reimbursement, continuing education, and licensure reimbursement.
• Calculate overtime pay based on over 40 hours worked in a full week (and excludes benefit time).
• Reduce amount of holidays and vacation time.
• “Management Rights” clause would not be limited by the terms of the Union contract.
• Allow Management to suspend the contract if it determines an “emergency” exists.
• Redefine grievances to refer only to violations of the “express provisions” of the contract.
• Refuse to allow union dues, PEOPLE contributions, or Fair Share fees to be deducted from employees’ paychecks.
• Delete all language that restricts subcontracting or personal service contracts—allowing Management to privatize any state services‐‐replacing bargaining unit employees with vendor employees‐‐at any time without any notice, justification or review.
• Void the Memorandum of Understanding that places limits on mandatory overtime, allowing Management to mandate overtime without any restrictions.
• Eliminate most seniority rights during the layoff process including eliminating all bumping rights.
• Require employees to use their own time for grievance meetings.
• Require Union stewards to use their own time to represent employees.
• Completely eliminate requirement to bargain about changes in working conditions.
I had heard rumblings about that push to force union members to “voluntarily” give up their Tier 1 pension benefits, but found it hard to believe.
…Adding… This was sent to me by a reader…
I was told by a union rep that the governor is attempting to tie the Tier 2 option with the new contract. If you vote for yes for the new contract, the state employee is voting yes for the Tier 2 option. If the employee wants to vote against the Tier 2 option, they automatically vote against the contract.
“The House Democrats affirmed today that they don’t want to pass reforms that will fix a broken state government, but only want to raise taxes. Instead of working with Republicans in a bi-partisan manner to fix the deep financial crisis that they caused, Democrats insist on continuing down the path of crafting and passing unbalanced budgets that spend billions more than we can afford.”
* Senate Republican Leader Christine Radogno…
“This is a replay of how legislative Democrats have run Illinois for the past decade. Game playing, a complete disregard for balancing the budget and a burden on the taxpayers who pay the bills. We’ve spent weeks trying to negotiate sound public policy that would stop the bleeding, help create jobs and positively impact our budget. They’ve spent that time crafting another phony budget and a plan for more Democrat tax increases.”
Discuss.
*** UPDATE *** From the ILGOP…
Statement by Nick Klitzing, Executive Director, Illinois Republican Party:
“It’s like déjà vu, all over again. Speaker Mike Madigan and the politicians who blindly follow him are playing games in Springfield like they’ve done for decades. Madigan and his cronies refuse to make any tough decisions and honestly confront a crisis of their own making. Madigan did it last year. He’s done it year in and year out since he took control in 1983.
Governor Bruce Rauner has proposed bold reforms to change business-as-usual in Springfield. He’s eagerly searching for a partner who is willing to work with him and compromise to reform the state. Unfortunately, Speaker Mike Madigan has shown yet again that he cares more about his political fiefdom than solving the state’s crisis.”
