Gov. Bruce Rauner unveiled a new program Tuesday aimed at helping minority and women entrepreneurs grow their businesses, saying African-Americans didn’t come to Chicago “because we had a great welfare system or a great minimum wage,” but because they were seeking opportunity that has since “bled away.” […]
Asked if the state could make a greater impact by recruiting large, established businesses into struggling minority communities, Rauner said the focus instead should be on improving opportunity.
“The money follows the opportunity, and that’s what we got to get across,” Rauner said. “Here’s what’s happening. African-Americans are in Chicago in massive numbers. They didn’t come here because we had a great welfare system or a great minimum wage. That’s not why they’re here. That’s not why the people of Illinois are here. We’re here for opportunity.”
He continued: “Chicago used to be one of the greatest cities in the world, one of the fastest growing, most economically dynamic cities in the world. That’s why we’re all here. That’s why my ancestors, my grandparents — great grandparents — came to Chicago. That’s why our families are here. That opportunity is being bled away. It’s not about a government program. It’s not about more government money. We are not competitive in Chicago. We’re not competitive in the state of Illinois.”
Gov. Bruce Rauner says he thinks General Electric bypassed Illinois for its new headquarters because of the “trajectory” of the state’s fiscal problems. […]
Rauner says company officials didn’t want to go from “one failed state to another.” He cited Connecticut’s property taxes, income tax and pension problems.
It’s amazing to me that he can say stuff like this without ever thinking that maybe, just maybe, he’s at least partially to blame for our alleged “failed state” situation.
Sen. Daniel Biss (D-Evanston) today called on Gov. Bruce Rauner to seek to renegotiate lucrative interest-rate swap deals that send $6 million in taxpayer money to big banks every month at the expense of Illinois’ poorest residents and struggling college students.
An alarming new report indicates the state of Illinois is engaging in the same kinds of interest-rate swap deals that crippled the finances of the City of Chicago and Chicago Public Schools. So-called “swap” arrangements perversely penalize the state for low interest rates caused by the global financial crisis.
Illinois has spent $618 million on such swaps already, and the total cost to taxpayers could climb to $1.45 billion by 2033, when the deals are set to end. In addition, according to the report, taxpayers could be on the hook for $124 million in termination penalties as soon as November, depending on how long budget negotiations are delayed.
Biss noted that a great deal of harm is being done to the state’s most vulnerable residents – the poor, the elderly, the disabled and struggling college students – as a result of the current budget impasse.
“In this environment we have an obligation to pursue every possible avenue to relieve fiscal pressure, and if seniors, children and the disabled are being forced to sacrifice, then there’s no reason for Wall Street to remain untouched,” Biss said. “We in the legislature have a responsibility to the people of Illinois to explore these questions and do our best to recover any legally available funds.”
An interest rate swap is type of financial derivative that allows a bond issuer — like the State of Illinois — to limit or manage exposure to fluctuations in interest rates. The issuer pays a fixed interest rate on a floating-rate bond. The bank on the other side of the swap pays the variable rate and pockets the difference between the fixed and floating rates.
When Illinois first entered into the now-costly swap deals in the early 2000s, the intention was to hedge risks and save money on the billions of dollars in variable-interest bonds that state agencies had issued. These bonds, issued under former governor Rod Blagojevich, are pegged to fluctuations in the broader interest rate environment.
But in order to lock in what state financiers saw as bargain interest rates, the governor’s office entered into swap agreements with ten major Wall Street banks. Under the deals — which are commonplace in the corporate world — the state would pay the banks a fixed interest rate, while the banks paid bondholders the variable rate. In theory, the maneuver would protect the state from sharp interest rate moves.
When the stock market crashed and the Fed lowered interest rates virtually to zero, the state couldn’t refinance at the lower rate. “The swaps kept the state locked into rates nearly 4 percent higher than what its bank partners were paying bondholders,” the article states.
The state has paid $618 million in swap fees since 2003, according to the ReFund America report, with another $832 million yet to come. While Ciccarone noted that those totals include the interest Illinois would have otherwise paid on the variable-interest bonds, they also include tens of millions of dollars in additional costs related to the complex requirements that swaps entail.
Those fees might not be all. Today, with interest rates still scraping historic lows, termination fees totaling $286 million prevent the state from exiting its swap agreements.
The swaps can still get a lot worse: If the state’s credit rating continues to tumble and it is unable to renew its credit enhancements on the 2003B bonds in November 2016, that could trigger termination clauses on the Governor’s swaps and force the state to pay $124 million in penalties to the banks.
JPMorgan Chase is both a credit enhancement provider for the 2003B bonds and a counterparty to one of the related swaps. This would potentially put the bank in a position to be able to collect termination penalties on the swap by refusing to renew the credit enhancement—a tactic the bank has used elsewhere in the past.
* Dan Proft, writing in the Tribune over the weekend about how he wants Bruce Rauner to get tough with AFSCME and other unions…
This is Rauner’s moment of truth.
Even more important than a fiscal-year budget is sending the unmistakable message to AFSCME (and its SEIU and teachers’ union cohorts) that the balance of the nearly 13 million residents of Illinois not in their ranks do not exist as spare parts for the machine that spits out compensation packages 27 percent higher than their own.
If that involves a siege on Springfield like Wisconsin Gov. Scott Walker confronted in Madison, so be it.
If that requires layoffs and outsourcing of state work to contractors, so be it.
If that requires losing an election, so be it.
Rauner ran for governor saying he is not a politician. He said he is a businessman who will make the difficult decisions to turn around the state he loves.
We’re about to find out if that’s true.
* Well, today Turnaround Illinois, which is funded mainly by Gov. Rauner and Sam Zell and has as its officially stated purpose “To support state legislative candidates who support Gov. Rauner’s bold and needed reforms, and to oppose those who stand in the way,” made a big contribution to Liberty Principles PAC…
All in!! $1,818,000.00 from Turnaround Illinois to Liberty Principles PAC. https://t.co/J4Sm2FHTjH
House Speaker Michael Madigan and Senate President John Cullerton controlled a combined $13.25 million warchest to begin 2016.
Heading into a critical election year of House and Senate races, the Democrats who lead the Illinois General Assembly have assembled a combined $13.25 million warchest to begin 2016, state campaign finance records show.
Veteran House Speaker Michael Madigan had $8.5 million to start the year in the four campaign funds he controls, records showed, while Senate President John Cullerton had $4.75 million in the three funds he operates.
That compares to $1.2 million in campaign funds controlled by House GOP leader Jim Durkin and $1 million in campaign funds authorized by Senate GOP leader Christine Radogno, according to reports filed with the State Board of Elections.
If you’re looking for something good amid all the rotten news in Illinois, here’s a little something: Gov. Bruce Rauner says there’s some agreement on the fundamentals of a pension reform plan.
That’s not to say that a deal is imminent, he cautioned.
“The president of the Senate (John Cullerton) and I agree on what it’s going to take to have a constitutional pension reform, and the speaker’s staff is not disagreeing. I can’t say they’ll be out there proactively being positive, but they’re not really disagreeing. And that’s a big deal,” Rauner said.
It’s a big deal if it gets worked out, resulting in “billions of dollars in pension savings at the universities as well as school districts and state government,” the governor said.
But state employee unions already indicated opposition to Cullerton’s plan, which is said to include a provision that makes employees choose between retaining cost-of-living increases in retirement or taking pay raises now. That may not be the offer made to employees.
* So, I reached out to Cullerton’s press secretary John Patterson. His response…
“There are still major differences regarding the recognition of collective bargaining rights.”
* And here’s Speaker Madigan’s spokesman Steve Brown…
“I don’t think that, unfortunately, they’re anywhere close to a constitutional plan.”
At this point, I suppose, he has no other choice. But, man, this isn’t going to be an easy Democratic primary for him while he’s locking arms with a hugely unpopular (among city Democrats) Republican governor.
* Meanwhile…
Today, Jason Gonzales, candidate for state representative against Speaker Madigan, has announced the first of his endorsements. First is Dick Simpson, former Alderman and Chair of Political Science at the University of Illinois-Chicago. The second is Democracy for America, it’s Southside chapter.
In his endorsement letter Dick Simpson remarked, “I’m endorsing Jason Gonzales for State Representative of the 22nd District because he has the education and experience to start leading our state back in the right direction. I know he will work tirelessly on behalf of the people of the 22nd District and the State of Illinois, and make the tough choices necessary to make sure that the best days of Illinois are still ahead, and that the pathways to opportunity will be here for future generations.”
Simpson’s full endorsement letter can be found here:
https://www.facebook.com/jasonforillinois/photos/a.1697480273798899.1073741828.16964610739008 19/1710838759129717/?type=3&theater
The endorsement from Democracy for America came after a Saturday forum that included elected officials, candidates, and campaign surrogates for campaigns for federal, state, county, and local offices. After the forum, the members of the group voted on the endorsements of the candidates, which led to Gonzales’ nearly unanimous endorsement.
“It’s an honor to have the endorsement of both Alderman Dick Simpson and DFA-Southside,” Gonzales said. “Dick has consistently been a tireless advocate for working families and political reform throughout Illinois. DFA-Southside is a group of passionate, instrumental political activists fighting for democratic values in our communities.”
Higher Education Coalition Kicks Off Statewide Push for State Funding
Group Unites to Urge Lawmakers, Governor to Solve Months-Long Funding Stalemate
* On January 4th, the Illinois Municipal League’s executive director Brad Cole sent his higher education ideas to the U of I’s government relations office. I’m told the proposals received a “mixed” response. The IML got involved because the universities want to work with mayors of college towns…
Here are my suggestions for moving forward on the higher education funding issue. What seems to be lacking is any kind of plan that everyone can get behind, and without that there will probably be no movement by the General Assembly or Governor. I think everyone needs to agree to a few points and then present a focused effort. Thanks for coordinating this group, we’re looking forward to hosting the meeting tomorrow. This is what I would do (which doesn’t mean they are necessarily good ideas):
1. Ask for a six month appropriation to be passed immediately in January based on the same levels as what was passed and vetoed last year, I think that included a 6.5% overall reduction. As part of that, though, ask for a six month extension on the lapse period spending authority (through 12/2016). This would give schools half the budget now (since it is halfway through the fiscal year) and if something isn’t worked out on-time in the upcoming budget they would have more flexibility in holding it over into the fall. The chance of getting a full twelve month budget at this point seems very slim, and the fact that schools have managed thus far doesn’t help them in saying they need the full appropriation. It also shows a willingness by the schools to take a massive cut and move on. This could be coordinated by campus presidents/board leaders to make the ask officially.
2. Ask for the full fiscal year funding of MAP. By default this would mean some money to offset the lost appropriation, as it would bring in money that was floated for students enrolled in fall 2015. Then bring in a thousand students, whether they all get MAP or not, and let the story be about students… since that’s what each school should be about, anyway. I would do this a few days before either the State of the State Address or the Budget Address, but not too close prior or immediately after either. Put the story in the news about three days before the Governor gives his speech and make him and the legislative leaders react or account for it in all of their remarks. Timing is important and having the capitol under siege by students is critical; one bus load of students from every university campus and community college would be overwhelming. The local chambers of commerce could pay for the buses and the student government associations can coordinate from each campus; give everyone a t-shirt or hat or sign or something and set them loose in the capitol with the name and office location of their home district legislators… the organized chaos would be quite interesting and better than any AFSCME rally (and they know how to rally).
3. Find a judge/court in a county seat that houses a public university, probably downstate or in St. Clair County where the other suit was filed, and file a motion to consider all public university employees in the same class as all other state employees that are getting paid without a state budget. Public university employees are state employees (with state sponsored health care, retirement, etc) and the courts have already ruled on this issue, but the rulings didn’t specifically include university employees. I realize this won’t help the private schools or community colleges, but it will help the public universities. I would throw-in an extra motion that seeks repayment of employee salaries that were paid during the first six months of the fiscal year, as reimbursement, which would obviously further strengthen the cash flow for those schools that are hurting most. Maybe there is a bigger reason why the universities were left out of the original suit so this may not work, or maybe it was not seeing the forest for the trees; I don’t know, but it seems worth a try. The employee unions could take the lead on this like they did in the original employee payroll suit last July. I have a marked-up copy of the Fifth District Appellate ruling that I will give you for more information.
4. Have each college and university put money toward a major statewide public relations campaign that would promote the value of higher education, tie it to the brain drain and population out-migration hitting Illinois, show how the local economies are impacted, and tell the story of students who might not get their diplomas because of the lingering impasse. If every school, through their private foundation funds and not with state funds obviously, would contribute $20,000 or $50,000 or $100,000, there would easily be a couple million dollars to launch a comprehensive and immediate press/media campaign throughout the state and in targeted legislative districts to get attention on this issue. Radio, television, print and social media advertisements bombarding the issue would be impressive. That amount of money to contribute to this effort is minimal considering the tens- and hundreds of millions of dollars the campuses are losing. Have everyone contribute, pick a major firm to handle it, and then let them go (without a university-style committee to slow it down forever) and get it done. A lot of this should be focused on the FY17 budget process.
5. Key to any future (FY17) appropriation is making an offer of what schools are willing to do without. If a reasonable plan was submitted to the Governor and General Assembly, and reasonable in the sense of the overall state budget problems not just keeping the status quo for the campuses, there would be more of a chance of getting something agreed to by the leaders. There are lots of suggestions I could make, which I will save for another conversation, but asking for a multi-year budget appropriation or anything that doesn’t resemble a significant cut to really transform the funding levels is likely a non-starter. Unless the higher education community goes on offense with a plan, they will be on defense and other plans will be made without them.
I’ve been surprised at the lack of involvement by the U of I’s alumni group. The school has fired up that much-feared (at the Statehouse) group several times to stop what it considered to be harmful legislation. But where are the alumni now?
Anyway…
* The Question: Which of Brad’s 5 suggestions is the best? Take the poll and then explain your answer in comments, please.
* My former intern Barton Lorimor came over to the house yesterday with his cute daughter Robin…
Oscar loves him some Barton, and after a slow start, Robin fell in love with Oscar, too (he can sometimes be a bit too rambunctious for little kids).
Barton said he needed to get home to make dinner, but my mom and dad, my daughter and her family and some other great friends of ours were all coming over so I said he ought to just invite his wife to my place and we’d have dinner together.
He stayed and we all had a great time, particularly Oscar, who basked in all the attention.
* Mom and Dad left today, though, and Oscar spent some time by the front door. I think he was hoping for more visitors…
To combat challenges created by uncertain economic conditions, Chicagoland small businesses plan to expand business operations in 2016 to continue revenue growth.
The results of the second annual Chicagoland Small Business Economic Outlook Survey, conducted by the Chicagoland Chamber of Commerce in partnership with Loyola University Chicago’s Quinlan School of Business, reveal that local business owners are realistic about the current state of business. Business owners have lost confidence in the local, state and national economies over the past year, and revenue growth remains their top concern.
“Only 28 percent of business owners surveyed believe Chicagoland’s economy will strengthen over the next year, down from 42 percent last year,” said Katie Fitzpatrick, Executive Director of Programs at the Chicagoland Chamber of Commerce. “These survey results show us that in order to combat current economic conditions and restrictive public policies, business owners are forced to be realistic and find new ways to expand their business operations.”
Key takeaways from the 2016 Chicagoland Small Business Outlook Survey:
· Small businesses are significantly less confident than last year in the economy at the local, state and national levels
· More than three in four respondents plan to grow their business [in the coming year]
· 38 percent expect to hire additional workers
· 52 percent plan to expand within Illinois (up from 45 percent last year)
· Nearly one half of respondents feel negatively impacted by local taxation
· The top three areas small businesses need support are marketing, technology and business planning
“Revenue growth remains a top concern for small businesses,” said Dr. Alexander Krasnikov, assistant professor, Loyola University Chicago’s Quinlan School of Business. “These businesses are increasingly self-reliant, looking to grow through investment in things like marketing and tech platforms, hiring part-time employees, and taking on more clients.”
Given the vital role small businesses play in creating jobs and anchoring communities, this study will be used to better understand the needs and expectations of local small businesses and entrepreneurs and help shape Chamber programs and policies to best suit the needs of small businesses in Chicagoland.
“Small businesses are the heart of Chicago’s neighborhood economy and we must continue providing them with resources they need to thrive,” said Kurt Summers, Treasurer of the City of Chicago. “I am pleased to see the results that highlight over 50 percent of small business owners surveyed are planning on expanding in Illinois in 2016. The Treasurer’s Office is committed to providing new and innovative ways to help small business owners access capital in order to grow and expand in Our Chicago.”
The 2016 Chicagoland Small Business Outlook Survey was conducted electronically in October and November of 2015, with 574 small businesses participating. Several partners contributed to the survey, including the Better Business Bureau, Constant Contact, Blue Daring the Office of the City Treasurer.
* As the Illinois Review rightly notes, this op-ed by former Republican Gov. Jim Edgar appears to be more about the never-mentioned Bruce Rauner than it is about Congressman Rodney Davis…
When faced with the choice to fund the government or face another government shutdown, he voted for progress. It was the responsible vote to cast. The economic losses from a government shutdown would have been astronomical. Continuing dysfunctional government in Washington is not governing and it is not leadership. Unfortunately, some in politics allow the perfect to become the enemy of the good.
In my experience, you don’t always get everything you want. But it is important to keep making progress and stay focused on solving problems. Davis voted to lead, to govern and to make progress. He did the right thing.
Governing is challenging. Negotiating with divided branches is difficult and success comes slowly. When I was governor, for all but two years, we had a divided government and I often faced situations where I didn’t always get the reform I wanted. But even in divided government, we were able to work together to eliminate a massive backlog of state bill payments, build historic state budget surpluses and reduce the size of government.
We made progress together because we were disciplined, kept lines of communication open between the divided branches of government and recognized the need to compromise for the good of the people. […]
In this time of polarizing politics, our country needs to make progress. I appreciate true leaders who will make the tough decisions to strengthen America and tackle problems. And I count Rodney Davis as one of them.
Democratic U.S. Sen. Dick Durbin has endorsed Highland Park Mayor Nancy Rotering over former U.S. Rep. Brad Schneider in the race for the Democratic nomination in the North Shore 10th Congressional District.
“Nancy combines fiscal responsibility with true progressive values,” Durbin said in a statement.
Rotering called Durbin a “role model” and “the epitome of a public servant for over 30 years.”
Durbin’s endorsement, while significant, also shows the split among the Democratic establishment over the race. While he backs Rotering, Schneider has the backing of top House Democratic leadership, including Rep. Nancy Pelosi.
* From the Durbin press release…
“Nancy brings to this race an extraordinary record for a first-time Congressional candidate. As Mayor of Highland Park she successfully confronted ComEd when local families were suffering from unreliable service, balanced the City budget five consecutive years and enacted real reforms,” stated Durbin. “Her most noteworthy achievement gained national attention when she passed one of the nation’s first local assault weapons ban and successfully defended the ordinance against an onslaught of gun lobby attacks all the way to the U.S. Supreme Court. While the Republican-led Congress refused to respond to the nation’s gun violence, Nancy Rotering and her City of Highland Park showed real leadership. Nancy combines fiscal responsibility with true progressive values.“
* From the Pelosi release…
“Brad Schneider is a relentless defender of women’s rights and LGBT equality. His legislative vision is a direct reflection of his genuine passion for helping others. We need strong progressive voices like Brad’s in Congress. That’s why I’m proud to endorse his candidacy,” said Democratic Leader Nancy Pelosi.
“I am humbled to receive the endorsement of Leader Pelosi,” said Schneider. “I’m looking forward to returning to Congress to work with Leader Pelosi on the critical issues facing Americans.”
Campaign Manager Magen Ryan said, “Our campaign is in a better spot than ever less than 60 days from the election. This week Brad received the unanimous endorsement of the AFL-CIO following the recent endorsements of SEIU Illinois State Council, the Lake County Federation of Teachers, and many other unions throughout the Tenth District. The support of labor along with seven members of the Illinois Congressional Delegation, including Tammy Duckworth, more than 60 other of Brad’s former colleagues in Congress, the Democratic Congressional Campaign Committee, Secretary of State Jesse White, Cook County Board President Toni Preckwinkle, and more than 30 other local elected officials demonstrates the breadth and depth of the support of his candidacy.”
*** UPDATE 1 *** Rotering is now airing her first TV ad of the primary. Click here.
*** UPDATE 2 *** From our pals at Comcast…
Nancy Rotering for Congress
Democratic Candidate for US Congress in IL CD 10
Agency: Dudley Media, Philadelphia
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1/19/16 - 2/8/16
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Dayparts: 5-9A, 9A-4P, 4P-7P, 7P-midnight, Sa-Su 11A-7P
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Total Buy: $122,892
[Cook County State’s Attorney Anita Alvarez] defended her record on police prosecutions. “Any officer who commits a crime should be held accountable,” Alvarez said to a smattering of boos. “I’ve been doing it, I will continue to do it and there’s no need for a special prosecutor.” Alvarez and More opposed special prosecutor appointment while Foxx welcomed it.
By her own admission, Chicago Police Officer Allyson Bogdalek was “untruthful” during a 2011 court hearing for Ranceallen Hankerson, who was charged with armed robbery and attempted murder in connection with a violent liquor store stick-up on the South Side a year earlier.
While under oath on the stand, Bogdalek told the courtroom she hadn’t shown the liquor store owner – who was shot in the leg during the 2010 robbery – a photo spread with Hankerson’s picture prior to his arrest.
In reality, she had shown the owner Hankerson’s photo, but the victim initially failed to identify Hankerson as the assailant – a critical piece of information for Hankerson’s defense, according to court records and interviews.
In 2012, following a series of court hearings but before Hankerson’s actual trial, Bogdalek came clean about what happened – after Hankerson’s defense attorney got a hold of Bogdalek’s squad-car video from the day Hankerson was arrested. The video captured a cell phone conversation between her and a supervisor in which she mentioned showing lineup photos to the liquor store owner shortly after the stick-up.
Hankerson’s criminal case was quickly dropped by Cook County State’s Attorney Anita Alvarez’s office because of Bogdalek’s conduct, according to interviews and court records […]
But more than three years later, Bogdalek is still on the job, and it recently came to light that Alvarez ignored a recommendation from an underling to hit Bogdalek and her partner with perjury-related charges – raising further complaints that Alvarez too often looks the other way when it comes to alleged police misconduct, particularly within the Chicago Police Department.
The budget impasse in Illinois is beginning to depress enrollments at the state’s colleges and universities, as state money earmarked for low-income students remains tied up in a political stalemate that shows no signs of easing.
More than 1,000 students failed to return for the second semester as their schools stopped picking up the tab for the $373 million Monetary Award Program, said Randy Dunn, president of the Southern Illinois University system.
The program normally provides grants of up to nearly $5,000 to some 128,000 students with mean family incomes of about $30,000, said Lynne Baker, spokeswoman for the Illinois Student Assistance Commission, which administers the program. But with no state budget in place since summer, the program’s funding has stopped. […]
The problem is poised to grow quickly as schools wait for their share of about $1 billion in state funding.
Disabled Illinois residents who depend on in-home help for daily needs will suffer once the state stops paying overtime for their caregivers beginning March 1, some home health care workers and their union say.
Tens of thousands of employees who help people with disabilities live independently are eligible for time-and-a-half pay over 40 hours in a week, under a federal rule that took effect Jan. 1. But without a state budget in place to control spending, Gov. Bruce Rauner’s administration says it can’t afford the extra pay.
A state Department of Human Services memo obtained by The Associated Press indicates the policy will allow 35 hours of work and five hours of travel.
The workers, who make about $13 an hour, and their supporters say that 30,000 clients who need assistance because of physical or developmental disabilities will receive less-efficient and less-effective care because most need more than 40 hours of weekly assistance. Families will have to find other aides to help, meaning disruption, and for some clients, discomfort with a new person.
A lot of folks have taken to calling Bruce Rauner “Governor 1 Percent” because of his immense personal wealth. Gov. Rauner himself told the Chicago Sun-Times during the 2014 campaign that he was in the top one-tenth of one percent of income earners.
But, right now, anyway, he ought to be referred to as “Governor 1.4 percent.”
Why? Stay with me a bit and I’ll explain.
I sat down for an interview last week with Gov. Rauner. As with just about every reporter, Rauner blamed House Speaker Michael Madigan for stifling his beloved Turnaround Agenda. The governor said he was “frustrated” with Madigan for saying that his anti-union, pro-business reforms were “unrelated to the budget.”
“For example,” Rauner said, “if we can get business regulatory change so I can recruit manufacturers here and more transportation companies here, and more businesses here, we can generate billions of new revenue without raising tax rates. That’s directly tied to the budget.”
“Billions?” I asked.
“Billions,” he replied, while promising to send me a detailed analysis.
A few days later, his staff e-mailed me a memo that the governor had sent to lawmakers last fall. You can see it yourself at CapitolFax.com/turnaround.
But the memo didn’t really say much of anything about revenues, other than if the governor could get Illinois to “average” levels of unemployment and Gross State Product and if the governor could stop the migration of Illinoisans to other states, his agenda would produce a grand total of $510 million in additional revenues.
That ain’t “billions.”
And while $510 million is nothing to sneeze at, it won’t even cover the interest on the state’s mountain of overdue bills that have been accruing because the state has no budget and no way to pay them.
Of course, the state has not had a budget since June and has no way to pay those overdue bills because the governor refuses to negotiate a new budget until he gets his Turnaround Agenda passed, which according to his own memo wouldn’t produce enough revenue to pay the juice on money owed to the state’s vendors — not to mention the universities which haven’t received any state funding, creating major crises at several of them, and all the other social service groups which make up our safety net being stiffed, forcing the state’s most vulnerable to go without.
And while $510 million seems like a lot of money, the governor’s projected revenue growth from his Turnaround Agenda would only be a 1.4 percent increase over the last state fiscal year.
Hence, “Gov. 1.4 percent.”
And would it even be that much? Rauner has said he would agree to higher state taxes if legislators agree to his Turnaround Agenda. But as a Republican legislative friend pointed out to me last week, that tax hike will reduce growth, even with all of Rauner’s agenda items.
“The point is that they can’t argue that these anti-labor changes will magically produce $510 million of economic growth/revenue and then discount the negative effect of a tax increase on economic growth,” he wrote me.
True.
OK, but maybe the governor was just a little confused and meant to include state governmental savings in that “billions” remark.
So, let’s go back to the memo.
The governor claims the state would save $1.75 billion by making his demanded changes to union collective bargaining laws. $750 million of that would come from cutting healthcare costs for state employees. The rest isn’t explained.
He also claims that workers’ comp reforms would save the state $65 million a year. So, we’re looking at about $1.8 billion in savings. That’s far more substantial, but so far he’s getting absolutely nowhere because he’s taken such a hardline stance against unions.
To be fair, Rauner’s memo also claims that local governments would save billions more with his reforms, but some of his numbers just don’t add up, like overstating the savings on allowing governments to opt out of prevailing wage requirements on nonfederal projects.
I’m not all opposed to doing some pro-business reforms. I think an easy case can be made that workers’ comp costs are far too high, for example.
But I spent part of an afternoon last week listening to an otherwise tough-minded woman cry helplessly on the phone about the literal implosion of the state’s social service safety net.
And one of the greatest charitable groups in the history of this state, Lutheran Social Services of Illinois, is facing an existential crisis because the government owes it $6 million.
In my opinion, the payoff for continuing this governmental impasse is not worth the price being paid.
And these children that you spit on
As they try to change their worlds
Are immune to your consultations
They’re quite aware of what they’re going through
Friday, Jan 15, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Credit unions exist as member owned cooperative financial institutions. Cooperatives are most often formed to support producers such as farmers, purchasers such as independent business owners, and consumers such as electric coops and credit unions. Their primary purpose is to meet members’ needs through affordable goods and services of high quality. Cooperatives such as credit unions may look like other businesses in their operations and, like other businesses, can range in size. However, the cooperative structure is distinctively different regardless of size.
As not-for-profit financial cooperatives, credit unions serve individuals with a common goal or interest. They are owned and democratically controlled by the people who use their services. Their board of directors consists of unpaid volunteers, elected by and from the membership. Members are owners who pool funds to help other members. After expenses and reserve requirements are met, net revenue is returned to members via lower loan and higher savings rates, lower costs and fees for services. It is the structure of credit unions, not their size or range of services that is the reason for their tax exempt status - and the reason why almost three million Illinois residents are now among 100 million Americans who count on their local credit union every day to reach their financial goals.
AFSCME REFUSES TO COMPROMISE DESPITE BETTER COMPENSATION THAN MOST TAXPAYERS
Study Shows State Workers Earn 40% More than Private Sector Workers
NAPERVILLE — Americans for Prosperity-Illinois highlighted a study released in June 2015 by its sister organization, Americans for Prosperity Foundation, showing the total annual compensation, including salary and benefits, for Illinois state government employees is 39.6% higher than the compensation earned by comparable private sector workers.
“AFSCME has shown itself to be wildly out of touch with the financial realities facing the taxpayers who fund their compensation packages, as well as the fiscal calamity facing the state,” said Americans for Prosperity Illinois State Director David From. “This 2015 study shows that taxpayers are being asked to fund compensation packages that they themselves are not able to obtain. Yet, AFSCME continues to demand in negotiations that taxpayers pay for continued raises and unaffordable health care plans for its members, while refusing commonsensical reforms like triggering overtime after 40 hours per week rather than 37.5 hours.”
The Americans for Prosperity Foundation study found that Illinois state government employees receive a benefits package that is on average, three times more generous than is received by private sector workers. In particular, Illinois state employees receive health coverage, retiree health plans, and pension benefits that are substantially more generous than are paid in the private sector. The average Illinois state government employee in the data sample receives an annual salary of $56,919. In addition, Illinois employees receive annual benefits, either received in that year or accrued toward retirement, worth $55,791. A comparable Illinois private sector employee receives a slightly higher salary of $61,017 but annual benefits of only $19,725. Total annual compensation for Illinois state government employees equals $112,710 versus $80,742 for comparable private sector workers, a difference of $31,968 or 39.6 percent. The study author, Andrew Biggs, is a resident scholar at the American Enterprise Institute in Washington, D.C., where he has written extensively on public employee compensation.
“Governor Rauner is right to stand up for the beleaguered Illinois taxpayers,” continued From. “AFSCME has continually pushed pay and pension packages that have contributed to the fiscal challenges facing the state. Rauner’s push for sensible changes and more modest pay increases are necessary and the right thing to do in the interest of taxpayers.”
“This latest inaction from the governor is just another step in his plan to make Illinois a right-to-work state. AFSCME has been able to negotiate contracts with governors for the past 30 years from each party in good faith. Just as with the budget, this governor is sidestepping negotiations and using the back door take employee benefits.
“Governor Rauner has said before that he wants chaos. What he fails to comprehend is the situation he’s creating means mothers and father can’t provide for their families, sick people go without health benefits and more people are steered to state-sponsored benefits instead of being able to provide for themselves. Now the governor’s hand-picked Labor Relations Board will decide whether or not the governor negotiated in good faith. I don’t think the people he appointed will decide against him. Looks corrupt if you ask me.”
Whew.
* Rep. Christian Mitchell…
“Today’s action by the governor is yet another example of him holding working families hostage to his far right political agenda. By walking away from the bargaining table, he continues to show an unwillingness to compromise.
“Public service workers – the people who help keep us safe, provide critical services for our most vulnerable, and respond to emergencies – deserve wages and working conditions that reflect the importance of the work they provide our state. They are often our neighbors, our friends or our family members. Today, Governor Rauner turned his back not just on our public service workers, but our entire state.
“I call on the governor to rejoin the bargaining table, negotiate in good faith, and find a solution that is fair to both our state employees and the citizens of Illinois.”
Despite an ongoing battle with the Chicago Teachers Union (which is backing his primary opponent to the hilt yet again), Rep. Mitchell has been endorsed by the Chicago Federation of Labor, Illinois AFL-CIO, AFSCME Council 31, SEIU Illinois State Council and others.
* Rep. Lou Lang…
“It is extremely disappointing that Governor Rauner has terminated negotiations with AFSCME. Apparently he wants to provoke a confrontation and disruption of state operations. That would mean the loss of vital services relied upon by millions of Illinois residents every day, as well as further instability in the state’s business climate.
“That is why I and other lawmakers sought to enact a fair process for contract resolution through neutral arbitration last fall. Maintaining public services is critical, and such a process needs to become law.”
* Rep. Rob Martwick…
“I am extremely disappointed that Gov. Rauner is using procedural maneuvers in an attempt to force a strike by state workers. This action contradicts his promise to negotiate in good faith. The state workers have negotiated in good faith, have recently offered compromise on wages, health insurance and other important issues. Most importantly the employees have been and continue to be willing to negotiate.
Today, we see Gov. Rauner’s true intentions. His rhetoric during his campaign for governor was about forcing a strike, and today it is clear that he’s been on this path all along. His agreements with other bargaining units cover a very small portion of state employees. Now, along with his failings as governor to propose a balanced budget and find solutions to our state’s financial problems, he is putting Illinois taxpayers at risk of losing access to vital government services, causing more suffering for decent, hard-working families.”
So far, I’ve received no press releases from any Republican legislators or from the two caucus leaders (or the Democratic leaders, for that matter). Keep an eye on this for updates, however.
…Adding… Rep. Kelly Cassidy…
This morning, Governor Rauner declared an impasse in negotiations with AFSCME, the union that represents over 38,000 child protection workers, nursing aides, correctional officers, human service workers and other state employees. Prior to this week, there was no indication negotiations would be broken off, and AFSCME has expressed their willingness to continue to bargain and work to find common ground.
Declaring an impasse creates chaos and is not the path to reaching a fair agreement. Negotiations are inherently difficult, but dedication to working through differences and achieving compromise is critically important.
Our state employees that help to keep us safe, respond to emergencies and care for our most vulnerable deserve more than bad faith negotiations and brutal cuts. Their work is vitally important, and putting in whatever effort it takes to reach a fair agreement is equally important.
I strongly urge all parties to recommit to sincere negotiation and work through the process to achieve compromise. While it is unclear what the result of an impasse could be, a strike or lockout would be devastating. Our social service system has already faced crushing difficulties under the budget impasse, causing many organizations to reduce services or shut their doors. This would further reduce critically important services for our most vulnerable citizens.
* Sen. Dave Koehler…
Having already shutdown the state budget process, Gov. Bruce Rauner is now walking away from labor talks with the state’s largest employee union.
On Friday, his office said there is an impasse in negotiations, even though labor groups claim they are willing to keep working toward a compromise.
“The Governor’s asking for an impasse to be declared by the labor board is disappointing. If this is a step to force a last and best offer on state workers, it will add even more chaos to state government,” said State Senate Dave Koehler (D-Peoria). “This is why I supported SB1229 – to engage both sides into interest arbitration as a way to settle the labor contract with AFSCME. Interest arbitration has been used successfully with police and firefighters in Illinois for many years, and would offer a reasonable way to end this dispute.”
Though the Rauner administration has contended it has reached settlements with all other unions representing state employees, in fact, no settlements have been reached with the six other unions representing more than 25,000 state employees, including state troopers and thousands of child and home health care providers.
“What we don’t need is to force state workers out on strike. The situation with not having a budget is bad enough. Let’s not make things worse,” said Koehler. “Compromise is hard work. I urge all involved to look for ways either through arbitration or mediation, to resolve the differences between the administration and the union.”
According to AFSCME, this past week, the union presented three separate proposals to the State, in which wages and health care were modified to better align with the administration’s framework, and an IDOC proposal was altered to create a joint labor-management committee to improve rehabilitative opportunities for inmates.
* Sen. Linda Holmes…
State Sen. Linda Holmes issued the following statement in response to Gov. Bruce Rauner’s Unfair Labor Practices Act petition to the Labor Relations Board against the largest state employee union.
The move is the first step in the possible declaration of an impasse in negotiations, a move which could force employees to strike.
“Governor Rauner assured the state employees who protect children, provide care to veterans and the elderly, staff our prisons and maintain our infrastructure that he would not walk away from the bargaining table or provoke a strike,” said Holmes, D-Aurora. “We can see now that he does not intend to honor that promise.”
The governor’s office has reached settlements with unions representing about 5,000 state employees, but negotiations have continued with six unions representing more than 25,000 state employees, including the American Federation of State, County and Municipal Employees (AFSCME) Council 31. Among employees still waiting for a settlement are nurses, state troopers and thousands of home health care and child care providers legally defined as state employees for purposes of collective bargaining.
“This is picking a fight at a time when both sides should be working to reach an agreement,” Holmes said. “AFSCME has shown a willingness to negotiate in good faith, and Governor Rauner should do the same.”
*** UPDATE 1 *** Our first leader’s response in either party is from Jim Durkin…
“It is disappointing that after eleven months and 24 bargaining sessions there is no agreement on a new labor contract with AFSCME. Based upon the latest offer from AFSCME, it does not appear that they are sincere about negotiating with the administration and are not willing to make concessions regardless of the state’s ability to pay. I am stunned that AFSCME is still clinging to their 37.5 hour work week when 17 labor unions representing state employees agreed to a 40 hour week with the administration. Governor Rauner is correct in seeking a decision from the Illinois Labor Relations Board to determine whether there is an impasse. Governor Rauner has negotiated in good faith with AFSCME but at some point this must be brought to a conclusion for both taxpayers and state employees.”
“Governor Rauner has clearly demonstrated he can successfully negotiate labor contracts by compromising with unions. He has reached agreement with 17 labor unions which have been ratified by more than 80 percent of union members. He has also shown that he is a true advocate for taxpayers at the negotiation table — something AFSCME may not be accustomed to – but it’s the undisputed reality of our financial crisis.”
*** UPDATE 3 *** Press release…
State Representative Ed Sullivan (R-Mundelein) has expressed his unhappiness at the news Gov. Bruce Rauner has been forced to ask the Labor Relations Board to weigh-in on contract negotiations between his administration and the American Federation of State, County and Municipal Employees (AFSCME). Good faith negotiations agreed to in September appear to have stalled, causing the Governor to ask for the Labor Relations Board to rule on the matter of an impasse.
“It’s very unfortunate that the Governor has had to call on the Labor Relations Board to make a determination about an impasse with AFSCME,” said Sullivan. “Despite many claims to the contrary, Gov. Rauner has worked tirelessly to negotiate in good faith through 24 bargaining sessions and has already come to agreement with 17 other unions representing state employees. AFSCME doesn’t seem to understand that Illinois taxpayers are unable to handle the $3 billion in additional costs they are demanding.”
*** UPDATE 4 *** Cook County Board President Toni Preckwinkle…
“It is my view that leaders of government and its employees should work together for the public good. In our state, this often means reaching a mutually agreeable resolution in contract negotiations with collective bargaining units of government employees.
“Declaring an impasse as a way to pressure public service workers is, in my view, short-sighted and does nothing to engender trust between parties.
“In Cook County, we negotiated and have reached agreements with almost 100 separate collective bargaining units. I would urge the Governor to rethink his position, return to the negotiating table and respect the collective bargaining process.”
* Matt Dietrich at Reboot writes about the governor’s promise of “long-term gain” in exchange for short-term pain as it relates to MAP Grants…
The prospect of “long-term gain” is meaningless to a college student who’ll miss the coming semester because he/she had a promised state grant snatched away. The very concept of long-term gain is a cruel hoax if the end result is a state with universities irreparably damaged by an extended state funding drought and thousands of young people who have given up hope on attending college.
The same applies if this is allowed to happen in the interest of protecting the standard of living of the middle class. Many MAP recipients need college aid because they aspire to get into the middle class.
Rauner on Jan. 27 will deliver his second State of the State Address. If the MAP situation stays as it is today, an awful lot of young adults in Illinois will be a week or so into what would have been their spring semester as Rauner speaks in Springfield.
For them and the thousands of other Illinoisans affected directly and immediately by the Illinois budget crisis, this is no abstract exercise in political theory.
* Mayor Emanuel held his annual Martin Luther King interfaith breakfast today. Things got weird…
Prior to Emanuel’s breakfast, three African-American pastors leading a boycott of the event from religious leaders attempted to hold a news conference at the main entrance of the Hyatt Regency McCormick Place. Their bid to speak to the assembled cameras, however, was delayed by several minutes as a half-dozen angry protesters shouted obscenities at the ministers and claimed they had long been part of the city’s problems.
* Meanwhile…
Cook County Board President Toni Preckwinkle has decided not to show up at Mayor Rahm Emanuel's MLK interfaith breakfast.
* Yes, Democratic state’s attorney candidate Donna More actually said this to the county’s Democratic Central Committee yesterday…
“I’m not here today seeking your political endorsement,” More said in her remarks at party headquarters. “Politics has already done enough to damage our criminal justice system.”
Indignant snorts and half-stifled chuckles — but no audible applause — greeted More after she’d finished speaking.
Well, at least she got her name in the papers. But this is loser talk…
“I think it [not getting the endorsement] does help me, because I have been out there since the beginning of my campaign saying that we need an independent prosecutor, and Miss Foxx claims to be independent, but Toni Preckwinkle’s been doing her bidding since the beginning,” More said after the endorsement.
According to the party, Foxx got 85 percent of the vote.
A year after Gov. Bruce Rauner directed his administration to help local governments start putting their employee salary data on a state website, the information still hasn’t been posted.
A law directing the state to post the local information online was approved in 2012. A year ago Friday, Rauner issued an executive order aimed at getting things moving.
“It was never implemented. This is state law today,” Rauner said then. He blamed former Gov. Pat Quinn for not directing the state agency in charge of the website to get it done.
“No more,” Rauner said at the time. “We are going to get this done.”
Jason Gonzales is a 41-year-old consultant on a mission to beat House Speaker Michael Madigan, who was elected to the Illinois House before Gonzales was born.
Gonzales filed paperwork to run as a candidate in the March 15 Democratic primary in the 22nd District. Yes, Madigan’s district. He’s trying to beat Madigan in Madigan’s backyard.
He’s a consultant on a mission!
I’m betting that slogan ain’t gonna be on any bumper stickers.
And a friend just sent this screen cap of her browser as she attempted to access Gonzales’ campaign website at work…
* As we’ve already discussed, Senate President John Cullerton’s chief of staff Dave Gross and press secretary Rikeesha Phelon are leaving for the private sector.
* Our esteemed commenter “RNUG” (which stands for Retired Non Union Guy) takes a look at the governor’s latest move on AFSCME…
Reading the documents carefully is an interesting exercise.
Reading the list of concessions, I get a bit confused. While maintaining the status quo may not be a good thing, a lot of what they maintain are concessions are nothing more than agreeing to the status quo. I’ll admit there are a couple of items I would not have conceded. There are some others, from both sides, that just seem plain silly to me. And to the public who will read most of it as gobbly-gook, I’m sure all of it will seem crazy.
I did find the switching between 3rd person and 1st person a bit disorienting in some of the FAQs. That removes the appearance of objectivity that we expect in such answers.
Maintaining the $1000 bonus and 2% increase are the same thing is disingenuous. The amounts are different and will have different financial consequences. I understand they are trying to convey that, with both pensionable, there is a similar Fiscal impact on future salaries and budgets, but they phrased it poorly.
While trying to talk all around it, the State is, in fact, doubling the health insurance cost for the current coverage levels. They also mislead somewhat on the health insurance; if we stick with ACA terms, it would probably be more accurate to call it a gold plan instead of platinum.
From what I can see here, I’m guessing the health insurance is the major sticking point. If I was AFSCME, I would agree to the wage freeze in exchange for status quo or a slight percentage increase in the health insurance. IMO, minimizing the health insurance increases has more impact on the employees than gaining raises.
…Adding… Our “Rookie of the Year” commenter “Honeybear” offers some thoughts…
I just want to ask if posters could be respectful as we go into this labor unrest. This is going to be a horrifying time for a lot of families of public servants, mine included. Most of the folks I work with here live paycheck to paycheck, not because of financial irresponsibility but because life is more expensive. No one I work with drives a luxury car, has a large home, etc. The folks I work with are just solidly middle class working folks. The lucky ones have a spouse that works in the private sector. The ones that are really going to hurt are the younger single workers who are just starting out. God bless them, every one has said they won’t cross the picket. I ask that posters be respectful during this time. It’s horrific to face financial ruin. Please remember that you’re talking about fellow Illinoisans. I had sincerely hoped we wouldn’t be here.
AFSCME and the public-service workers we represent have worked hard to reach a fair agreement with the Rauner Administration, and we’re prepared to continue to do so. We reject the claim that the bargaining process is at an impasse.
It’s regrettable and damaging to the public interest that the governor has chosen a confrontational path. Just as Gov. Rauner is holding the state budget hostage, his “my way or no way” demands of state employees are the obstacle to a fair agreement. Rauner’s demands would force workers and their families pay double to keep their health care—making the Illinois state health plan the nation’s worst for any state workforce—while getting zero wage increase for four years. Instead of fairly compensating all workers, he wants to base bonuses on unknown criteria open to political favoritism. And the governor wants to wipe out protections against irresponsible privatization of public services. These are just some of more than 200 extreme demands the administration has made during this process.
Although we have serious disagreements with the governor’s positions, we reject the administration’s charge that we have not been “seriously negotiating.” The members of AFSCME’s rank-and-file elected bargaining committee have consistently responded to the administration’s demands with fair counterproposals. We’re committed to continuing to do so, and we don’t want disruption of the public services we provide. That’s why last summer we supported the option of both sides going before an independent arbitrator if our differences couldn’t be resolved by bargaining.
Unfortunately, the administration’s ongoing campaign of false claims about these negotiations makes compromise that much harder to achieve. Among their many misleading statements, the administration has never offered AFSCME the same terms as other unions. Some unions received vastly better terms on health insurance than those offered to AFSCME. Many others did not agree to a four-year pay freeze. We know of none who agreed to change hours of work or reduce overtime or holiday pay for employees who go above and beyond to serve. In any event, no union can be forced to accept the terms of other unions that have different circumstances and concerns.
The administration claims to want innovation, yet it has rejected our union’s proposals to work together to improve inmate rehabilitation programs in state prisons, rejected our proposals to ensure nondiscrimination in the hiring of women and minorities, and rejected our proposals for labor-management collaboration to improve public services.
Governor Rauner is wrong to walk away and try to end negotiations. Public-service workers who keep us safe, protect kids, respond to emergencies and care for the most vulnerable want to keep serving their communities, and they want to do their part to reach a fair agreement, but we can’t do it alone.
*** UPDATE 1 *** From the IFT…
100,000 IFT workers stand with AFSCME
WESTMONT, IL – In response to Governor Rauner’s move to declare impasse in negotiations with workers represented by AFSCME, Illinois Federation of Teachers (IFT) President Dan Montgomery issued the following statement:
“Governor Rauner’s actions today prove once again that his priority is forced conflict, not progress. The 100,000 workers of the Illinois Federation of Teachers, some of whom are also state employees, are proud to stand with AFSCME as we face a deceptive and irresponsible Governor willing to use middle-class families, the most vulnerable, and our students as a wager in his fanatical game. Make no mistake: this isn’t in service of financial savings for the state. This is an ideological obsession unfit for a state leader forcing chaos to enact a reckless and unpopular agenda. Our members go to work each day trying to help others, trying to resolve conflict, trying to educate our children. Governor Rauner could learn a thing or two from them.”
In addition to teachers, school staff, and higher education faculty at community colleges and universities throughout Illinois, the IFT includes thousands of public employees under dozens of agencies and statewide officeholders.
*** UPDATE 1 *** From Cinda Klickna, President of the Illinois Education Association…
“The 130,000 members of the Illinois Education Association support the members of AFSCME as they try to negotiate a fair contract with a governor who seeks confrontation instead of compromise.
Rather than negotiate a fair contract, Governor Rauner seems focused on picking fights with the hard-working men and women who provide services to the people of Illinois.
It is shameful that, as he enters his second year as the state’s top constitutional officer, Gov. Rauner remains either unwilling or unable to govern. The people who elected him deserve much better service than they have received from Gov. Rauner.
We urge Gov. Rauner to return to the bargaining table and negotiate a fair contract with the public service workers who keep us safe, protect kids, respond to emergencies and care for Illinois’ most vulnerable. It is what he was elected to do.”
After AFSCME Rejections, Administration Appeals to Labor Board
Labor Board to Determine if Parties at Impasse
SPRINGFIELD – Last week, AFSCME refused to seriously negotiate for the 24th bargaining session in a row on any of the core contract proposals presented by the Rauner Administration.
At the bargaining table, AFSCME made clear that they are unwilling to negotiate any contract similar to the ones agreed to by 17 other labor unions, which in many instances, were ratified by more than 80 percent of union members.
In the press, AFSCME described small changes to their proposal as “a big new offer.” The “big new offer” would end up costing the State billions over the next four years.
In response to AFSCME’s refusal to seriously negotiate, and in accordance with the tolling agreement, the Rauner Administration is now asking the Labor Board to determine whether or not the parties are at an impasse.
“While we have reached innovative and fair contracts with most unions and seen those contracts approved overwhelmingly by union members, AFSCME leadership unfortunately refuses to budge or offer reasonable proposals. We want to reach an agreement with AFSCME members, but their leaders have proven unwilling,” Governor Bruce Rauner said. “Instead of acting reasonable like the state’s other union leaders, AFSCME bosses have said no to merit bonuses, they’ve said no to programs to help minority employees, and they’ve said a 40-hour work week is too long. At a time of unprecedented fiscal crisis, AFSCME is pushing insurance and wage demands that would cost taxpayers more than $3 billion. As a result, we are asking the Labor Board to determine the next steps in the negotiating process.”
AFSCME vehemently rejected the Administration’s proposal to implement merit pay programs similar to ones welcomed by the 5 Teamsters and 12 other Trade Union bargaining units.
AFSCME vehemently rejected the Administration’s proposal that would maintain a 37.5-hour work week, but have overtime rate wages kick in only after completing a 40-hour work week. AFSCME rejected this offer despite the fact it is more generous than the 40-hour work week the Teamsters and Trade Unions ratified. Instead, AFSCME wants to only work 37.5 hours per week and immediately get paid overtime wages for any minute worked over 37.5 hours. They are also demanding double pay for regular holidays and even 2.5x pay for some “super holidays.”
AFSCME vehemently rejected the Administration’s proposal to make it easier to promote minority employees. Other unions welcomed efforts to promote minority employees.
AFSCME vehemently rejected a health insurance proposal that closely mirrors insurance proposals agreed to by the Trade Unions. Instead, AFSCME is demanding insurance that is considered platinum-plus under the Affordable Care Act. They are also demanding taxpayers subsidize over 80% of the cost of these platinum level plans, which is asking to pay silver-level premiums for a platinum-plus plan. Additionally, while the Teamsters agreed to maintain their current wages for the next four years, AFSCME is demanding wage increases that would cost taxpayers nearly $1 billion over the next four years. These demands come after many union members have already seen their salaries double since 2004. Illinois employees are now the third-highest paid in the nation – behind California and New Jersey - and the highest after adjusting for the higher cost of living in those states. Altogether, AFSCME’s wage and insurance demands would cost taxpayers over $3 billion.
Under the signed tolling agreement, the Labor Board must now determine whether the Administration and AFSCME are at impasse. During this time, the parties must adhere to all statutory obligations regarding good faith negotiations while the Labor Board is deciding the case. Quoting from the tolling agreement, this specifically means there can be no “strike, work stoppage, work slowdown, or lockout” until the Labor Board has determined that the parties are at an impasse. The Governor will comply with these and all other obligations regarding good faith negotiations.
We would love to continue negotiating if it meant we could reach a deal with AFSCME. AFSCME’s actions at the bargaining table and their comments over the last week are strong evidence why further negotiation is no longer worthwhile. While the Governor has indicated he now shares the views of his bargaining team that the parties are at an impasse, today’s action simply asks the Labor Board to resolve this dispute.
More from the FAQ…
The tolling agreement that the Governor and AFSCME signed and renewed several times prohibits either side from declaring impasse unilaterally. Today’s action does two things. First, it asks the Labor Board to determine that AFSCME has committed an unfair labor practice by bargaining in bad faith. Second, under the tolling agreement, the parties can ask the Labor Board to decide if they are at impasse, but only the Labor Board can make a final determination. All that the Governor did this morning is to ask the Labor Board to determine if AFSCME has been bargaining in bad faith and whether the parties are at an impasse. Since the parties disagree about whether they are at an impasse, the only tribunal that can answer this question is the Labor Board. […]
During the debate over SB 1229, the Governor committed to continue to negotiate in good faith, and he has kept that commitment. At the Governor’s initiative, the parties extended indefinitely the tolling agreement that was initially set to expire September 30, 2015. That agreement requires both parties to negotiate in good faith. AFSCME has not been bargaining in good faith. […]
The Board will now determine whether the Governor’s filing properly before it and, if so, whether an evidentiary hearing should be scheduled. If a hearing is scheduled, the Administrative Law Judge (ALJ) assigned to this matter will conduct the hearing and, after its conclusion, receive the parties’ written submissions. After the ALJ has ruled on these issues, either party can appeal to the Board. The Board will then issue the final decision. […]
Under the terms of the tolling agreement, it is the Labor Board’s right to decide if the parties are at impasse, whether the State has presented its best and final offer, and when it can be implemented. The Governor will accept the Board’s direction on these questions. It is critical to mention that the last offer made by the State to AFSCME is virtually identical to the agreements signed by 17 other unions. These agreements were ratified in many cases by over 80% of state employees in those unions. This is not a radical or extreme contract as AFSCME has portrayed, but one that is fair, reasonable, and overwhelming accepted by large portions of state government already. It is also reasonable when compared to our neighbors: under the State’s proposal, state workers would continue to make over $20,000 more per year, on average, than their peers in Indiana and Missouri.
* Progress Illinois interviewed former Gov. Pat Quinn this week…
Asked whether he has any plans to run in the next Illinois gubernatorial election, Quinn said he’s currently interested in grassroots organizing.
“I’m not too interested in candidacy campaigns and [all] that. I’m interested in petitions and referendums. That’s what I got started on when I started in Illinois politics 40 years ago. We did the petition drive that set up the Citizens Utility Board. So I’d like to do a referendum in Illinois this year, at least in the Chicago area. That gives people a chance to open up the government to more citizen participation.”
“There’s a lot of work to be done. This is the year to get it done,” he added. “We can’t let someone who stands in the way of progress, Bruce Rauner, stop the people of Illinois from getting progressive, fair government. And I want to say to the 130,000 students who are looking for their scholarship that they were promised, but it’s being denied by the governor, that we’re not gonna take that sitting down. We’ve gotta organize.”
So, he’s interested in running a petition drive, not in running for governor, then in the next breath blasts Rauner and brings up MAP Grants - always one of his pet programs.
* Until a year ago, Tyrell, 62, was the COO of Rahm Emanuel’s public school system…
Governor Bruce Rauner today announced today the Central Management Services Director Tom Tyrrell will be transitioning out of state government.
Governor Rauner has designated Mike Hoffman as the Acting Director of CMS. Hoffman is the current Chief Operating Officer of the Illinois Department of Commerce and Economic Opportunity (DCEO).
On Broad Street, a steady stream of people are swinging into a coffee shop serving lattes and elaborate scones. They can sip their drinks while hitting up the record store and eyeing instruments at a shop where Wilco buys gear. Or they can walk up the street for a haircut from a celebrity stylist, turn onto Main Street to grab a beer at one of the three craft breweries in town, then tuck into a chickenless chicken salad sandwich at the local vegan-friendly cafe.
Only a taxidermy parlor with a moose on its roof makes it plain that this isn’t Wicker Park but a small northwest Indiana town, population 16,500, just south of Gary, 35 miles from the Loop.
Griffith, with its suddenly cool six-block downtown, has a story that starts with the familiar Rust Belt tropes—a rail town hit hard by the rise of trucking in the ’70s, then hit again as area steel mills declined. Without jobs to keep young families in town, Griffith shuttered one of its four elementary schools—the one anchoring its downtown—in 2011. But then the story changed.
A $2 million shot in the arm and a $600,000 facade program triggered a reinvention straight out of a city planner’s dreams. Today, Griffith’s downtown is filled with young entrepreneurs building the kind of independent businesses that attract 20- and 30-somethings. In 2007, the vacancy rate downtown stood at 60 percent. Now it hovers around 7 percent.
Good on both Griffith and Indiana.
We don’t have to exactly copy this example, and it obviously can’t work everywhere because there are only so many hipsters to go around and only so many forgotten places that close to the Loop.
But we need more innovative thinking like this in Illinois. Everywhere in Illinois, including in the governor’s office. Enough with the anti-union stuff. Move the state forward.
* Gov. Bruce Rauner’s work on criminal justice reform has been highly commendable and even historic. He attended his criminal justice commission’s meeting yesterday…
Commissioners are still working to reach Rauner’s goal of reducing Illinois’ inmate population by 12,000 men and women over the next decade. They have delivered their first set of recommendations, and Rauner told commissioners he was excited about the report, calling it “excellent.”
“What I can guarantee you: I will work tirelessly to make sure this isn’t just something that just gathers dust,” he said. “I’m going to implement this.”
Rauner is the first sitting Illinois governor to have visited state prisons in years. He said they’re harsh, hostile places — but they don’t have to be that way. […]
Rauner said “everyone makes mistakes” and “everyone deserves a second chance.”
The group suggests more training for officers at every level, especially when dealing with race.
The Governor applauds that suggestion.
“I don’t think there’s any question that there’s bias in the system. I mean, the system is built by human beings and human beings have biases. We all do and some of them are more harmful than others and we’ve got to be honest about it and it’s really hard to be honest about it. This is a tough set of issues, but to serve the people of Illinois well we have to talk about it and not be afraid to talk about it,” said Gov. Rauner.
* But I wish he’d put as much thought into other vitally important issues as he obviously has on this one...
“I think everyone’s big concern is, as we do this, some of these things are going to require resources, and resources means money, and I think that’s just a point of anxiety,” said Brendan Kelley, St. Clair County state’s attorney.” […]
“There’s no question that sometimes to save money in the long run requires spending more money in the short run, and in Illinois, we haven’t been doing that for years,” Rauner said. “We’ve always taken the short-run decision, what cuts costs now and not what saves significant resources over a longer term. We’ve got to change that mindset.”
The governor added that the goal is to move the corrections system away from simply housing offenders and keeping them away from the public, and to focus on effective rehabilitation, such as substance abuse training, mental health treatment and counseling to ensure those offenders don’t make the same mistakes again.
“If we can implement (the commission’s) recommendations, I firmly believe that we can have the people of Illinois safer,” Rauner said. “I believe we can save taxpayer money, and most importantly, I believe we can help those who made mistakes lead productive lives and come back as productive, full citizens who are enhancing the quality of life for everyone in all of our communities around Illinois.”
* A Lutheran Social Services of Illinois internal memo…
January 14, 2016
Dear LSSI Staff Member,
Recently we asked you to contact your state legislators and Gov. Rauner to urge them to pass a state budget. Thank you for your continued advocacy on LSSI’s behalf.
This January, Illinois entered its 7th month without a state budget. No one anticipated a budget impasse of this length. LSSI is in the challenging position of responding to the deadlock’s impact on our ability to continue providing services to those in need. At this time, the state owes us more than $6 million for services delivered.
Over the past months, LSSI has been using a bank line of credit and available resources from our Cornerstone Foundation. As we worked with the state regarding nonpayment for services provided, LSSI leadership began exploring options to restructure our programs and contain costs. As we finalize plans for a restructured organization, we will keep you informed in the coming weeks of the changes this will bring. I can assure you we have taken these steps with careful deliberation and prayerful consideration.
We urge you to contact your legislators and the governor’s office to let them know how critical it is for them to pass a state budget.
During these challenging times, we are grateful for your continued prayers and support of our mission.
In Faith,
Mark A. Stutrud
President and CEO
It’s no secret that I’m a big fan of this group, which serves 97,000 people across the state. It cannot be allowed to whither on the vine.
Click here for information on LSSI’s good works. Click here to donate your money or your time. Thanks.
