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Speaker Madigan: Rauner should keep “non-budget issues” out of budget process

Monday, May 25, 2015 - Posted by Rich Miller

” House Speaker Michael Madigan opened his press conference today by recalling that he labeled Gov. Bruce Rauner’s original budget a “reckless spending plan” because he used $2.2 billion in phantom anticipated pension savings to fund his budget.

Madigan used today’s press conference to unveil the Democratic budget plan. The proposal “will be consistent with our view of what the State of Illinois should do for Illinoisans who need the government will be helpful for them.” He admitted that there will be a revenue “shortfall” with the budget, but committed to working with the governor to find a solution.

Madigan said he’ll need “a little over $3 billion” in revenues to make the budget balance. “We’ve built cuts into our spending plan,” he added, including human services, higher education and general services. There will be increases for pension payments, Department of Corrections and K-12 education.

“The most important thing for the governor and the Legislature to do right now is to prepare a spending plan,” Madigan said, adding that he didn’t think it was “appropriate” to attach non-spending demands to the appropriations process, and pointed to the governor’s press release today as an example of non-budget issues that aren’t appropriate for the budget-making process.

“I would just disagree with his method,” Madigan said. “Several of those non-budget issues have been rejected [in the House]. They’ve lost. And now it’s time to move onto a spending plan.”

“They will say what they want to say, and it would be unfortunate if they took the focus off the budget making and engaged in a bunch of political rhetoric.”

Asked about the governor’s reported plans for post-session TV ads, Madigan said Rauner will do what he was going to do after the session ended and said the Democrats would do what they were going to do. “I’m going to continue to do my work,” he said.

Asked about Rauner’s contention that some of his Turnaround Agenda could save the state money, Madigan said: “That’s pretty much of a David Stockton theory. Do you remember David Stockton?” Stockman was Ronald Reagan’s supply-side budget director.

“He has his views about what should be done by the government,” Madigan stressed about Rauner, saying others have different views. He then reiterated his demand that non-budget issues should be off the table during a budget process.”

“Issuing threats is really not helpful to this process,” Madigan concluded.

  56 Comments      


Rauner blasts Madigan

Monday, May 25, 2015 - Posted by Rich Miller

* House Speaker Michael Madigan is set to hold a media availability today. Watch it here. But the governor’s office “responded” before Madigan’s press conference even began…

Statement attributable to Lance Trover, Director of Communications, Office of the Governor

“Speaker Madigan and the politicians he controls are walking away from the negotiating table and refusing to compromise on critical reforms needed to Turnaround Illinois. Instead, they appear ready to end the regular session with yet another broken budget or massive tax hike -and no structural reforms. The Speaker and his allies in the legislature are sorely mistaken if they believe the people of Illinois will accept doubling down on a broken system that has failed Illinois over the last dozen years.”

Whew.

Stay tuned for updates from MJM’s presser, which, as of 3:50 has not yet begun. Rauner’s statement was sent at 3:30.

  31 Comments      


Question of the day

Monday, May 25, 2015 - Posted by Rich Miller

* Finke

When Gov. Bruce Rauner and state legislators were faced with filling a $1.6 billion hole in the state’s current budget, they turned to the same pot of money that’s been used in the past.

They decided a major part of the solution would be to take $1.3 billion out of the hundreds of special funds that are part of the state’s financial structure.

It was the first time Rauner used the technique of sweeping special state funds to help pay for other state operations. His office did not respond to questions about whether the governor might use the technique in the future.

However, Rauner did show a willingness to dip into special state funds again this spring to restore cuts made to human services programs known as the “Good Friday cuts.” The cuts later were restored when regular state revenues came in higher than expected.

* More Finke

When lawmakers decided to sweep $1.3 billion from special state funds to plug a hole in this year’s state budget, funds that pay for road construction took a hit.

Three funds provided $350 million of the total. The state’s road fund was hit up for $250 million, the most taken from any fund.

“We are always opposed to diversions,” said Michael Sturino, president and CEO of the Illinois Road and Transportation Builders Association.

The Illinois Department of Transportation said the fund sweeps would not affect road projects in the current year. But as Sturino pointed out, the money is not going to be repaid to the funds which means that much less that will be available in the future.

* The Question: Your thoughts on fund sweeps? Take the poll and then explain your answer in comments, please.


surveys

  24 Comments      


Caption contest!

Monday, May 25, 2015 - Posted by Rich Miller

* Shortly after arriving at the Summer Camp music festival…

  42 Comments      


The gift that keeps on giving

Monday, May 25, 2015 - Posted by Rich Miller

* Sheesh. The oppo continues flying

During his six years in Congress, Rep. Aaron Schock could count on commodity trader Darren Frye and his wife, Becky, for campaign cash, transportation and use of an upscale condominium in Chicago, according to records and sources.

But now that Schock has resigned from Congress and is under federal investigation, his dealings with donors such as the Fryes could prove far from beneficial to him.

Schock’s use of the Fryes’ condo and travel services may run afoul of campaign laws and House ethics rules, according to legal experts.

In addition, some of the Fryes’ campaign contributions have raised questions about possible “donor swapping,” a practice that falls into a gray area in the law and can allow political candidates to effectively collect more from a single donor than is legal.

Keep in mind that the Frye’s haven’t been accused of wrongdoing, but go read it all.

  4 Comments      


Today’s number: $34 million

Monday, May 25, 2015 - Posted by Rich Miller

* I’ve been telling subscribers about this for weeks and updated them on Friday. Here’s Rick’s take at the Trib

As state lawmakers find themselves in their typical late May posture of trying to pass a budget, a new political dynamic hovers over the proceedings: more than $34 million in campaign cash under the control of Republican Gov. Bruce Rauner and his allies.

Rauner already has sprinkled a total of $400,000 in contributions to every Republican legislator as he talks about the need for the GOP to “stay unified” at the end of session. Democrats have made those campaign donations an issue, citing what they say are the bad optics of Rauner doling out money at the same time he’s asking Republicans to take tough votes for what he calls his “Turnaround Agenda.”

But Rauner has plenty of money left to unholster against the Democratic-controlled General Assembly should the session go into overtime and stretch into the summer. The implied threat is that incumbents not supportive of the governor could face a barrage of TV and radio attack ads and negative mailings, if not find opponents fielded against them in next year’s legislative races.

Already, an advertising agency that handled Rauner’s multi-million dollar campaign commercials last year has been inquiring about buying broadcast air time, said one media representative who was not authorized to speak publicly. The ad agency declined to comment.

Go read the whole thing.

Things are likely to get real crazy around here real soon, campers.

  26 Comments      


I got nothing good to tell you

Monday, May 25, 2015 - Posted by Rich Miller

* My weekly syndicated newspaper column

I spent the better part of last Wednesday asking folks around the Statehouse if they had anything positive to tell me. I went looking for anything that might indicate a silver lining to this increasingly nasty spring legislative session.

Mostly, people just laughed at me.

Other than some individual personal developments, there just wasn’t much positivity around. The governor’s chief of staff Mike Zolnierowicz and his incomparable wife Barret were about to have a new baby. They’re great people and that’s wonderful news, but it also means that “Z” was not going to be able to work on solving the problems for a few days.

A gaming expansion bill appeared to be progressing. But I’m told the governor is in no mood to sign it as long as his “Turnaround Agenda” is being ignored by the majority Democrats.

The Senate Democrats, meanwhile, were expected to move legislation to help Chicago out of its horrific fiscal mess, but there’s still the problem with the governor’s refusal to do anything for the Democrats until he gets what he wants.

So, I came up with nothing.

The governor’s list of demands had been whittled down, but he still wasn’t backing off his insistence that the General Assembly give him at least some anti-union “right to work” local zones. He wanted a “causation” standard for workers’ compensation and a property tax freeze, which in even watered-down forms continued to be a nonstarter.

The list of demands went on and on, but in exchange, the governor was willing to support $3.5 billion in new revenues, which doesn’t sound too bad until you realize that he also wanted the Democrats to agree to $3 billion in spending cuts. The governor’s folks thought they were being generous by offering more revenues than cuts, but the Democrats pointed out that getting their people to vote for both tax hikes and huge spending cuts was pretty much impossible.

Instead, the Dems talked last week about sending the governor an unbalanced budget, telling him to cut as much as he could and then they’d come back and help provide the revenue to make the monster balance. They wanted to put the cuts on Rauner’s head, and his head only.

But it was more likely that Rauner would just simply veto the budget bill in its entirety and harangue the Democrats via a massive TV ad campaign for once again producing an “irresponsibly unbalanced budget.” And I’m hearing that when the clock strikes June 1st, the governor’s list of 80 demands and concessions goes out the window and he will put his entire agenda back on the table and withdraw all the concessions, including (and especially) much-needed new revenues.

So, in an admittedly desperate attempt to find something positive to write about, I maneuvered two people, one from each side, to a table last Wednesday night to see if they could hash out one little thing.

Take it from me, these guys are all talking past each other. They just don’t understand each other, and really don’t even comprehend one another, although it did appear that the governor’s people were slightly more willing to cut a deal and they appeared to “get” the Democrats at least a bit more than the Dems appeared to “get” the governor.

The Rauner folks know, at least somewhere deep down, that attacking unions is an existential issue for the Democratic Party. The Dems ain’t gonna move a millimeter on that one. But the Rauner folks have been pointing out that raising taxes is also a potentially existential issue for Rauner and the GOP. He can’t just break his promise to reform government and the economy and then hand the majority party a gigantic tax hike. He’ll get slaughtered for that. Maybe the Dems know that and want to force him to cut his own political throat, or, being Democrats, they just don’t comprehend how tax-averse he is. But as long as he’s willing to go part way on revenues, they’re going to try and push him to go the full boat.

And then I got home Wednesday night and read Gov. Rauner’s op-ed in the State Journal-Register. “If legislators are willing to reform how we do business, they will find me an eager partner,” the governor wrote. “If they are not, then they should expect a very long extra session because I will keep fighting for major reforms.”

Like I said, I got pretty much nothing in the way of good news. Sorry.

* Greg Hinz, meanwhile, looks on the bright side

Let’s start with what, surprisingly, is the easier part: money. Right now, Illinois has a roughly $6.6 billion hole in that budget, and the only ways to solve it are to raise taxes, cut spending or do some of both.

Rauner has offered to put anywhere from $3.2 billion to $3.5 billion in tax increases on the table (the figure depends on whom you believe). That number could be pushed somewhat higher. That depends on whether the governor is willing—in addition to partially restoring the income tax hike—to add some of the $2.2 billion in potential service-tax revenues that two civic groups proposed recently. Look for Rauner to move a bit more.

On the cut side, Democrats reportedly are willing to part with $1 billion in spending. That, too, likely is an initial bargaining position. No one yet is detailing who would lose, but insiders suggest that the University of Illinois will take a hit, reimbursement rates for physicians participating in Medicaid will drop and local municipalities will lose a portion of what they get from the state’s income tax (though not as much as Rauner originally proposed). Toss in some sweeps of “excess” revenues from special state funds, and the two sides are a mere billion or so away from a balanced budget. Shazam!

Pensions, too, aren’t where the real divisions lie now thanks to the Illinois Supreme Court, which pretty much gave the state one option: Pay up. Lawmakers could try a variation on the “consideration” plan pushed by Senate President John Cullerton, in which some benefits go up and others fall. But the savings will be modest and can’t be counted now.

Agreements on a couple of other issues are needed to give this big, end-of-session deal lift-off velocity. Lawmakers need to pass Cook County Board President Toni Preckwinkle’s pension reform plan, which pairs benefit cuts with more money from the county, and let the courts deal with it. Mayor Rahm Emanuel really does need a casino to pay police and fire pensions. And the fiscal cliff that will require the city to pay a whopping $550 million more a year in pension contributions starting Jan. 1 needs to be smoothed down. Does it really matter whether the retirement systems are fully funded in 2040 or 2050?

Then throw in a capital spending bill to give everyone some ribbons to cut. Funding source: possibly an increase in the gas tax.

But, as Greg points out, there’s still that Turnaround Agenda problem. And it’s a big one.

  16 Comments      


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Monday, May 25, 2015 - Posted by Rich Miller

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Monday, May 25, 2015 - Posted by Rich Miller

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*** LIVE *** Session coverage

Monday, May 25, 2015 - Posted by Rich Miller

* Memorial Day session updates from ScribbleLive, sponsored by The Illinois Kids Campaign Watch it play itself out

  1 Comment      


Happy Memorial Day!

Monday, May 25, 2015 - Posted by Rich Miller

* I just rolled in from a weekend at the Summer Camp music festival in Chillicothe. Wow. I’ll tell you more about it some other time because I gotta get the Fax out to subscribers ASAP. But for now, here’s a live version of a Trigger Hippy song I’ve posted before. “Rise up Singing”

  4 Comments      


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