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Lynch: Rauner cost claim “borders on the ludicrous”

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* From AFSCME Council 31…

August 18, 2015

Dear Lawmaker:

I know the Governor’s office is intensifying pressure on you to sustain his veto of SB 1229, the fair arbitration bill. Unfortunately, his crusade against this bill is based on hyperbole and misinformation. I wanted to respond specifically to some of the key misrepresentations in the governor’s memo sent to you today.

Arbitration is not a dangerous and alien idea. In fact, it is already in state law. As you know, this legislation merely extends to state workers the same fair arbitration process that Illinois law has provided for more than 30 years to municipal police and fire personnel and to state prison employees and state troopers.

Arbitration could avoid a strike if negotiations fail. Nothing in the legislation compels the parties to go to arbitration. In fact, either side could choose arbitration if negotiations fail to produce a settlement. As such, the bill does not short-circuit the negotiating process, but offers an additional path to a settlement free of the hardship, conflict and disruption that a lockout or strike could cause.

AFSCME has said repeatedly, and I reiterate, that it is our preference to reach a settlement at the bargaining table. We’ve been working diligently to achieve that goal and intend to continue to do so.

Our union has a four-decade track record with six different governors (and countless mayors, county executives and other elected leaders) of doing just that—bargaining in good faith to reach an agreement. The Rauner Administration does not have any such track record. The governor can point only to one settlement reached for one small unit of state workers on his watch.

On the other hand, we have his bellicose statements made more than once on the campaign trail that he’ll “take a strike and shut down state government” in order to impose his demands on state workers.

State employees remain deeply troubled by the threats he made then and the related actions he takes now: Reports of the administration recruiting strikebreakers among retirees or the National Guard; false characterizations of the compensation now earned by state workers and the proposals our union has made in negotiations; legislative poison-pill demands that would wipe out workers’ rights as a precondition of enacting other unrelated policies.

Arbitration is fair. The governor is wrong to insult the reputation of the experienced professionals who serve as independent arbitrators. Arbitrators are mutually chosen by both the employer and the union and they are guided by the law to consider factors including the state’s financial condition in crafting a fair settlement. There is no evidence to suggest that they rely on only a few states in forming their opinions, and even a cursory review of the arbitration decisions listed on the state labor board’s website makes clear that they rule at least as often—if not more often—in favor of the employer as the union.

False claims. It’s regrettable that the governor’s memo resorts to repeating disproven claims about state employee compensation. Illinois state employees do not earn salaries far in excess of other states, and a University of Illinois study found that state and local government workers earn 13.5% less than comparable private sector workers.

The governor’s misstatements about the pay of child protection workers, correctional officers, nurses, emergency responders, caregivers and all the other men and women who do the real work of state government are particularly offensive given the six-figure salaries and political clout hires reported among the governor’s own top staff. His administration’s push to replace a pay scale based on a worker’s job and experience with one based on who the boss likes best would open the door wide to similar cronyism throughout state government.

The governor’s claim that the union’s initial economic proposal would cost the state $1.6 billion borders on the ludicrous. The administration has failed to produce any accounting of this number, despite our union’s requests for the calculations to back it up. The governor’s memo likewise distorts many other of our proposals: AFSCME has not made a single proposal to “increase pension benefits”; we have proposed almost no changes to the state health plan; and our proposals regarding overtime are intended to reduce it, not increase it, but the administration has rejected them.

Act in the public interest, override the veto. One has to ask why the administration is resorting to such desperate tactics to defeat a perfectly reasonable piece of legislation. Why the over-the-top rhetoric, habitual falsehoods and political pressure tactics? The only plausible explanation is that the bill would provide stability where the governor wants conflict. The bill would prevent a strike when the governor has vowed to force one. And if negotiations fail to produce an agreement, the bill could allow independent arbitrators to craft a fair settlement instead of giving the governor free rein to impose his extreme demands.

In the end, each legislator must vote their conscience and their constituents. We hope you will look at all the facts and, in the name of ensuring stability of public services and fairness for public service workers, override the veto to enact SB 1229.

Thank you for your interest in this matter.

Sincerely yours,

Roberta Lynch
Executive Director

  57 Comments      


And another thing…

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* It’s really good to be back.

  41 Comments      


Rauner: Override would lead to “massive tax hike”

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* From the governor’s office…

To: Members of the General Assembly
From: Bruce Rauner, Governor
Re: SB 1229
Date: August 18, 2015

Beginning tomorrow, you may be asked to consider overriding my veto of Senate Bill 1229. I strongly urge you not to vote to override. This bill is one of the worst pieces of legislation in Illinois history. It is a direct affront to Illinois taxpayers and to my ability to negotiate on their behalf. To put it simply, a vote to override my veto of SB 1229 is a vote to pave the way for a massive tax hike.

Our Administration has demonstrated a willingness to negotiate a fair contract with any reasonable partner. I have stated publicly and I also pledge in writing to you that we will not lock-out state employees. There is no reason our authority to negotiate on behalf of taxpayers regarding the state’s largest employment contract should be suddenly stripped away.

This is the first time AFSCME has ever demanded interest arbitration for all of its members rather than good faith collective bargaining, and the bill expires in four years. Hopefully this legislation is not related to the fact that I am the first Governor in Illinois history to be totally independent of AFSCME since it was first recognized under Governor Walker in the 1970’s.

Unfortunately, our political system in Illinois has inherent biases stacked against taxpayers. This legislation specifies that only a small group of predominantly pro-labor arbitrators may be selected to serve as the tie-breaking panel chair absent agreement. Last year, of the four interest arbitrations held using this roster of arbitrators where local units of government sought to freeze salaries for even a portion of the contract term, taxpayers lost every time.

Our system has also been set up so arbitrators use salary comps from very high-cost states (NY, NJ, PA) rather than emphasizing the five states that border us. This has resulted in Illinois government employees receiving compensation, when benefits are included, that is 22% higher than for the same jobs done by private citizens, and in many cases 30% or more higher than for the same work done by government employees in our surrounding states.

Illinois government employees are terrific. They deserve good salaries and attractive benefits. But their compensation should reflect merit more than seniority, similar to the system most taxpayers have in the private sector. We can and will pay higher salaries in the future, but pay should be based on productivity, not just the passage of time.

The system has to be fair for everyone, including our taxpayers. SB 1229 is especially harmful now because AFSCME’s current proposal would cost our taxpayers an additional $1.6 billion in salary, overtime, and pension costs and would eliminate $500 million per year in healthcare savings that is part of the health savings in both Democratic and Republican budgets.

AFSCME has proposed an expensive structure that would increase many salaries by 29% over 4 years, force the state to pay for premium health insurance benefits, extend those benefits to part-time and intermittent workers, increase overtime pay and dramatically increase pension benefits. We have told AFSCME at the bargaining table, and I cannot emphasize to you strongly enough, we cannot afford AFSCME’s extreme financial demands at this precarious time for our state.

That is why this legislation is so dangerous. Under SB 1229, labor arbitrators, unlike arbitrators in other disputes, are only given the option of picking between the state’s proposals and the union’s proposals, which is why the union has refused to make any concessions. The amount of spending the arbitrator would decide in this case is over $7 billion, or 20% of the state budget. Financial decisions of that magnitude should be decided at the bargaining table or by elected officials, not unelected labor arbitrators.

Again, to be clear, a vote to override my veto of SB 1229 is a vote to pave the way for a massive tax hike.

Finally, I have stated publicly and I also pledge in writing to you that we will not lock-out state employees. That pledge is also reflected in a binding legal agreement with AFSCME, known as a tolling agreement, which ensures that there can be no strike or lock-out as long as the parties are both bargaining in good faith at the bargaining table. Like the Teamsters, if AFSCME would commit to around the clock, non-stop, good-faith negotiations, I am confident we could reach a fair deal for taxpayers and their members.

The structure of our AFSCME contract is critical to the future of Illinois. We can and will negotiate a balance between the interests of government employees and those of taxpayers.

Every dollar we save inside state government is a dollar we can invest in our schools and social services. I ask you to join me in representing taxpayers, school children and our most vulnerable residents by upholding the veto of SB 1229.

Sincerely,

Bruce

Discuss.

  118 Comments      


Rauner not backing prez candidate

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* Erickson

During a swing through the Statehouse newsroom Tuesday, the first-term Republican chief executive said he is not getting involved in picking one of the 17 candidates seeking the GOP nomination.

“I am very clearly, specifically staying out of that,” Rauner told reporters before heading out to the Illinois State Fair.

Rauner did say he’s familiar with a big chunk of the field, including former Florida Gov. Jeb Bush, Louisiana Gov. Bobby Jindal and Wisconsin Gov. Scott Walker.

“I have six pretty good personal friends running in the Republican primary,” Rauner said. “I’m pretty close to virtually all of the governors.”

Thoughts?

  24 Comments      


Gill to run as independent

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* If he manages to get on the ballot and can raise a little cash, the Democrats’ chances will drop precipitously in the 13th

David Gill, who has sought to represent Central Illinois in the nation’s capitol four previous times beginning a decade ago, announced Tuesday he will be making an independent bid in 2016 for the 13th Congressional District post. […]

If he collects enough signatures to qualify for the November 2016 ballot — he’ll need an estimated 15,000 registered voters — Gill is likely to face off against incumbent U.S. Rep. Rodney Davis, a second-term Republican from Taylorville. […]

Gill last ran for the seat in 2012 and lost by 1,002 votes to Davis.

He stepped aside in 2014 when the Democratic Party coalesced behind former Madison County Chief Judge Ann Callis.

It’s not that Davis was expected to lose, but having Gill on the ballot will make it that much tougher to recruit and push a quality Democratic candidate there. He’s a gift for Davis.

  16 Comments      


Question of the day

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* From Monique…


* The Question: Caption?

  86 Comments      


While I was away…

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* Everybody was talking about this silly little newspaper column

Envy isn’t a rational response to the upcoming 10-year anniversary of Hurricane Katrina.

But with Aug. 29 fast approaching and New Orleans Mayor Mitch Landrieu making media rounds, including at the Tribune Editorial Board, I find myself wishing for a storm in Chicago — an unpredictable, haughty, devastating swirl of fury. A dramatic levee break. Geysers bursting through manhole covers. A sleeping city, forced onto the rooftops. […]

So if you think somehow new leadership is going to right the ship, you might want to get your head checked. There is no sense of urgency about the city’s or the schools’ perpetual abyss. Not under Emanuel. Not with a new City Council. Not with a new board at CPS.

That’s why I find myself praying for a real storm.

OK, was anybody who pays attention at all surprised? I mean, she sits on the Tribune editorial board, which is too often the most irrational, hyperbolic body in the state of Illinois.

And after Twitter and Facebook blew up I just love how the paper went all weak at the knees and changed the column’s headline from “In Chicago, wishing for a Hurricane Katrina,” to “Chicago, New Orleans, and rebirth,” and softened up the piece, changing, for instance, “That’s why I find myself praying for a real storm” to “That’s why I find myself praying for a storm. OK, a figurative storm,” and disappeared the original from the website.

* But this passage was not changed

All of the borrowing kicks the can down the road, costs taxpayers hundreds of millions more in interest payments and jeopardizes other worthy programs, under the guise of what? Protecting middle-class taxpayers from a big hit? No, they’re lining us up for a firing squad.

That highlighted sentence gets to the very heart of the matter here. She actually equated higher taxes (in a city with some of the lowest property taxes in the state) with a governmental firing squad. No wonder she openly wished for a biblical-level disaster. She’s just fighting the good fight, speaking truth to power, storming the ramparts of the evil-doers

Chicago needs urgent, revolutionary change.

That was from her non-apology follow-up, wherein she essentially blamed readers for misinterpreting the essence of her pure heart.

And it shows again the real problem here. What Chicago most desperately needs are clear, sober minds and fiscal sanity. The city must finally, rationally face up to its obligations and stop stomping its collective feet and screaming about how unfair everything is. Raise some taxes, cut some spending, work with the governor and the GA on a reasonable compromise in exchange for more state money. Find some real solutions and stop wailing like mad, drunken ivory tower pseudo-revolutionaries.

In other words, grow the heck up already.

* The best news out of this is that maybe, finally people will once and for all stop treating that editorial board seriously. As nice as they may be in person, when some of those board members get to work they don’t want their readers to think, they want them to seethe with vicious rage at a manufactured cartoon world of black and white. That makes them the worst sort of propagandists. And they were getting away with it until one of their own members stepped over the line and brought down some serious national heat.

Serves ‘em right.

/rant

  78 Comments      


The shape of the negotiating table is probably next

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* More sideshows

On Friday, Rauner’s office sent a letter to state Rep. John Bradley asking that he reschedule Monday’s hearing of the House Revenue and Finance Committee so that it could be held in the capital city.

“With the Senate in session next week, the governor expects key budget, legislative and legal personnel to be working in the Capitol,” the letter noted.

The request was rejected and the committee meeting was held at one of the state’s Chicago office buildings.

Bradley, a Marion Democrat, said it was disrespectful of the administration not to show up. “I think it’s a very, very bad calculation. Its not good practice,” he said. […]

At the same time Bradley’s hearing was underway, Rauner outlined his latest push for a statewide property tax freeze at a nearby state office building.

“State government is fundamentally in Springfield,” Rauner told reporters. “Let’s hold these hearings in Springfield where our administration actually works.”

This song ain’t never gonna end.

  49 Comments      


Um, you can’t do that

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* From the Illinois Radio Network

Gov. Bruce Rauner is combining several of his proposals into one bill, but that doesn’t seem to sway Democrats opposed to parts of his agenda.

Rauner’s consolidated legislation includes some old items (a property tax freeze, allowing local governments to limit collective bargaining and opt out of prevailing wage laws) and some new additions (allowing schools to use outside contractors for certain services, increased funding for impoverished school districts).

“I believe this is the single most important piece of legislation which we can pass this year,” Rauner said.

One bill is how Rauner would prefer it remain, as he called on House Speaker Michael Madigan not to try to separate the proposals.

“I’m asking the Speaker not to break the bill apart into little pieces, not to call sham votes on individual pieces. Debate the bill in its entirety and vote on the bill in its entirety,” Rauner said.

* From the Illinois Constitution

Bills, except bills for appropriations and for the codification, revision or rearrangement of laws, shall be confined to one subject. Appropriation bills shall be limited to the subject of appropriations.

We’ll talk more about the substance of the governor’s proposals later, but if you click here for the governor’s bill summary, you’ll see he appears to have illegally mixed in an appropriation and has combined several quite different subject matters together.

They want “one bill, one vote” so they can get the Democrats on record as being opposed to some of the bill’s more popular items, like a property tax freeze and (for Chicagoans) more money for CPS, or perhaps peel some Democrats away from their leaders.

But if they passed a law like this it would probably be shot down pretty quickly in the courts.

  58 Comments      


Absurd absurdity

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* My weekly syndicated newspaper column

The absurd facade of this long-running state government impasse might best be summed up with two brief statements.

1) Gov. Bruce Rauner to Democrats: “Just support my plans to eviscerate organized labor and I’ll give you the rare privilege of voting to raise everybody’s income taxes.”

2) Democrats to Rauner: “Just accept our piddly little workers’ compensation reforms and we’ll let you put all Republican legislators on an income tax hike bill, which you can then, of course, gleefully sign into law.”

Those two statements bring to mind a long-ago description of the absurdist theatrical “Waiting for Godot.” It was, the reviewer wrote, a play in which “nothing happens, twice.”

Ain’t that the truth.

Neither of those two things ever will happen.

I also have heard some portray this standoff as something like a religious war, where each side is so wedded to their own core beliefs, particularly when it comes to labor unions (Rauner against, Democrats for), that all rapprochement is impossible.

But, really, as absurd and hardline as the summer has most certainly appeared, I am increasingly becoming convinced that this overtime session cannot accurately be described as either of those things.

Rauner talks a good game, but as we’ve seen, he often backs off. He repeatedly threatened to shut down the government during last year’s campaign but instead has done everything possible to avoid a shutdown after vetoing most of the budget in June.

The governor has railed against unions but negotiated a state contract with the Teamsters that even includes collecting “fair share” fees that he believes are unconstitutional. He has made innumerable cuts that were quickly restored, whether through executive fiat, legislation he supports or court cases he backs.

House Speaker Michael Madigan likewise talks a very good game about “protecting the middle class,” but he hasn’t always been such a white knight for his core constituencies, either. He flipped on his much-favored trial lawyers and rammed through medical malpractice lawsuit reforms last decade.

The speaker made a deal that undercut trade unions at McCormick Place when asked to by Chicago’s mayor. He muscled through a Tier 2 pension plan for state workers and teachers that resulted in their boycott of him in the 2010 campaign. That led to the 2011 legislative education reforms (also pushed by the mayor and people like Rauner), aimed mostly at teachers and their unions, and legislation to cut back the number of state workers represented by AFSCME, along with pension reform Part 2.

To me, the key here is Mayor Rahm Emanuel. If he really is privately asking for some legislative limits on teachers’ union collective bargaining powers, as the governor has been telling reporters and anyone else who will listen, then you can expect the speaker and the Senate president eventually will go along.

Why would they? Because that’s what Democratic leaders from Chicago usually do when their mayor needs them. Not every time, but it’s a pretty safe bet.

And since Emanuel has not, as of this writing, actually denied the governor’s claim about what he really wants, I’m guessing the governor probably is telling the truth. Or at least a close enough version of reality to finally smoke out the mayor and have him prod his two leaders to move on a resolution that can be applied statewide.

As you know, the governor refuses to even talk about a budget until he gets some of his “turnaround agenda” passed, and keeping the teachers’ unions in check could go a long way toward that goal.

Until then, I think the Democratic leadership is content to continue their slow walk to oblivion and watch the governor’s poll numbers move inexorably down toward their own low positions, while galvanizing organized labor behind the Democratic Party like never before.

And as long as Rauner can keep most of government functioning, I don’t think he is prepared to make any major deals, either.

So the Democrats and the mayor and the governor could all choose to wait until the stuff really hits the fan this month and into next month, when the state government’s rapidly deteriorating condition could very well excuse an ugly deal in the minds of their respective constituencies.

Or they could just stick their necks out, act like statesmen and hammer out a compromise before the pain really begins.

Nah.

  62 Comments      


Good morning!

Tuesday, Aug 18, 2015 - Posted by Rich Miller

* This is what I told subscribers earlier today

Long story short: Despite several attempts at quitting, I’ve smoked cigarettes most of my adult life. I wasn’t feeling right about six weeks ago. So, I had a heart stress test, which found a problem. I had bypass surgery last Wednesday and it went so well that I was sent home on Sunday morning. I’ve also been medically cleared to briefly attend Governor’s Day and Democrat Day this week. My schedule will be somewhat reduced for a few weeks, but I really do feel pretty darned good, so don’t worry. All’s well that ends well and I will NEVER smoke again. Promise.

* Jerry Garcia may have saved my life.

For as long as I can remember, whenever my shoulders ached I knew I was coming down with something. They started hurting several days before the Grateful Dead shows in Chicago. And then when I was walking up a ramp to Soldier Field, my shoulders felt like they were on fire and I was short of breath and felt dizzy.

Later that Sunday evening during a random conversation, somebody mentioned that Jerry was 53 when he died.

I’m 53.

I went in to see my doctor and requested a stress test.

* I only told a few people what was going on. Even Barton didn’t know because I didn’t want to put him in an awkward position and I wanted him to focus on the task at hand, not on me.

My mom is staying with me this first week, so I’m in very good hands. My daughter was surprised yesterday that I was walking around my house like nothing had happened. I’m not in much pain and my lungs are rapidly improving. I’m pushing myself to get better, but not so much that I become exhausted. I want to improve a little every day, not regress. There will be some coverage gaps over the next few weeks, but I love my job and it keeps me sane, so I will keep writing.

* When I went in to meet my surgeon he told me he does a ton of bypasses every week, even sometimes on weekends. I asked him if that stressed him out. Nah, he said. Surgery isn’t stressful, it’s a calling. He told me his only stress comes from things that happen outside the operating room. From that point on I knew I was in excellent hands. Piece of cake.

The last thing I remember saying to my anesthesiologist before going under was, “Let’s get this show on the road, doc. I have a life to live.”

* Thanks, Jerry

You just gotta poke around

  147 Comments      


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Tuesday, Aug 18, 2015 - Posted by Rich Miller

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

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* Isabel’s afternoon roundup
* The Waukegan City Clerk was railroaded
* Whatever happened, the city has a $40 million budget hole it didn't disclose until now
* Manar gives state agencies budget guidance: Cut, cut, cut
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