* What a messed up week this was. And it ain’t gonna get much better, I’m afraid. Stuff is falling apart everywhere. I really don’t know what to say right now, so I’ll just play some music for a while and try to soothe my soul…
* I heard this was coming, but there was literally nothing I could do about it. LSSI is one of the finest social service groups in this state and I’ve helped them raise money for years. Their overhead costs are a lean 7.3 percent. They serve people that nobody else wants. I just cannot find the words to describe what a loss this is for Illinois. This impasse has to end. This state is wrecking a cherished organization over a paltry 1.4 percent revenue growth projection. I’m literally sick to my stomach about this…
Lutheran Social Services of Illinois (LSSI), the largest statewide provider of social services, today announced program closures and staff cuts throughout Illinois due to the state’s inability to pass a budget for the past seven months.
“The state’s budget deadlock has severely challenged LSSI’s ability to provide services to those in need,” said Mark A. Stutrud, LSSI President and CEO. “Over the past months, LSSI has relied on a bank line of credit and available resources from our foundation to compensate for the state’s inability to pay its bills. Currently, we are owed more than $6 million by the state for services delivered. After seven months, we can no longer provide services for which we aren’t being paid.”
The seven-month-long-and-counting budget impasse forced the organization to cut back programs and restructure services as LSSI seeks to bolster resources for the 149-year-old faith-based nonprofit’s continued viability. In consultation with LSSI’s Board of Directors and an independent advisory group, LSSI created a plan to restructure its services and shore up resources for the viability and continuation of the organization.
In all, over 30 programs are closing, and more than 750 positions are being eliminated, or 43 percent of LSSI’s total employees. As a result of these closures, approximately 4,700 people will no longer be receiving services from LSSI.
“We are eliminating spending that is most linked to non-payment of services and redesigning our administrative support around a newly restructured organization,” said Stutrud. “Our plans respond to this year’s budget impasse and an anticipated lingering state financial crisis over the next several years. We’re doing this at a great cost to LSSI and those affected by our services. It has been an agonizing process, particularly its impact on our clients and their families who depend on us for their care, as well as our employees whose jobs were eliminated. Many of our employees are direct care personnel who have built relationships and strong trust with the people they serve.”
The programs that saw the largest cuts were those helping seniors, including home care. Programs eliminated were case management for seniors, adult protective services, and LSSI’s Adult Day Care Center in Moline. Although LSSI is receiving some payment through Medicaid, the organization has been accruing several hundred thousand dollars a month in unpaid bills for home care services since July 2015, when the state’s budget cycle normally would have begun.
LSSI also has not received payment for programs reimbursed through the state’s general revenue fund and other state agencies. These include residential rehabilitation for adult drug and alcohol treatment in Chicago and Elgin, community counseling services, and prisoner and family programs at several locations.
LSSI is grateful for the support of ELCA churches statewide, other faith communities, and donors. LSSI is committed to continuing services that include: mental health, alcohol and drug treatment; Head Start; services for at-risk families; residential programs for adults with developmental disabilities, foster care, affordable senior housing; home care, and programs that help children maintain connections to their incarcerated parent.
“These decisions were the result of a thorough and painful process,” said Stutrud. “We know this will impact clients, their families, our employees, and communities throughout Illinois. We made these choices with a long-term view of the organization and its mission, and ultimately the ability to continue serving people.”
* Here are the program cuts…
About Lutheran Social Services of Illinois
Founded in 1867, Lutheran Social Services of Illinois (LSSI) is a statewide, nonprofit social service agency of the three Illinois synods of the Evangelical Lutheran Church in America (ELCA). For more information, visit LSSI.org and LSSI’s Facebook page.
Programs Affected
Residential Rehabilitation for alcohol and drug treatment
Behavioral Health Housing Opportunities, Chicago
Elgin Residential Rehab, Elgin
Men’s Residence North, Chicago
Men’s Residence West, Elgin
Social Detox, Chicago
Women’s Residence, Chicago
Mental Health Counseling for children, youth, adults and families
Community-based Counseling, Berwyn
Community-based Counseling, Des Plaines
Community-based Counseling, Downers Grove
Community-based Counseling, Elmhurst
Community-based Counseling, Mendota
Community-based Counseling, Prospect Heights
Community-based Counseling, Wheaton
Dixon General Counseling, Dixon
West/Northwest Suburban Counseling, Villa Park
Re-entry Services for former prisoners and their families
Connections, Chicago
Employment Skills School, East St. Louis
Homeward Bound Supportive Housing, East St. Louis
River Bend Re-entry, Alton
In-home Support Services for seniors
Intouch Home Care, Canton (serving Fulton County)
Intouch Home Care, Chicago (serving Chicago South and Southern Cook County)
Intouch Home Care, DeKalb (serving DeKalb, Kendall, La Salle Counties)
Intouch Home Care, Freeport (serving Stephenson, Jo Daviess Counties)
Intouch Home Care, Moline (serving Rock Island, Henry, Mercer Counties)
Intouch Home Care, Peoria (serving Peoria, Marshall, Stark, Tazewell, Woodford Counties)
Intouch Home Care, Rockford (serving Winnebago, Boone, Ogle Counties)
Respite Services supporting veterans and their families
Legacy Corps, Rockford
Legacy Corps, Streamwood
Adult Day Care for seniors and adults 18+ with disabilities
Intouch Adult Day, Moline
Comprehensive Case Management and Protective Services for seniors
Case Coordination, Sterling
Adult Protective Services, Sterling
I’m done posting for a while today. I’m just too disgusted to go on right now.
* For years while the legislative Republicans sat on their hands except to vote “No,” Democrats demanded that they produce their own plan. Whatever the topic of the day was, the GOP was way too often content to just sit back and lob rhetorical grenades.
Illinois Democrats don’t seem to have a plan or a vision for the state that goes much beyond thwarting Rauner and preserving the dismal status quo. […]
But at least Rauner has a plan — a list of aspirational bullet points that he calls the “turnaround agenda,” and that others have taken to calling the “runaground agenda.”
What’s on a similar list for the Democrats, who control both chambers of the General Assembly? What are their bold counterproposals for getting the state budget and pension problems squared away and boosting the economy?
* Spokesmen for Cullerton and Madigan basically said they’re just trying to solve problems…
State Senate Democrats “try to be more collaborative than combative,” said John Patterson, spokesman for Senate President John Cullerton. He ticked off a list of Democratic priorities and accomplishments — including marriage equality, the abolition of the death penalty and child care for working families — and noted that Cullerton and his caucus are “focused on trying to find lasting, practical solutions to real-world problems rather than coming up with catch slogans.”
“We don’t have a big, glossy title for what we want to do,” said Steve Brown, spokesman for Democratic House Speaker Michael Madigan. “We’re trying get a budget, work on a plan to pay down the bills and come up with a pension fix that complies with court rulings. To do that we hope to work co-operatively and professionally with this governor.”
* The Question: Should the Democrats produce their own version of the Turnaround Agenda? Take the poll and then explain your answer in comments, please, including what you think the Democrats should do, if anything.
After a day of furious damage control, the Rauner administration is hoping that it’s put back together a $1-billion-a-year state pension reform plan that would be passed by Senate President John Cullerton, with the governor’s help.
Rauner might get what he wants. Or not. It’s going to take a few days for the dust to settle. As Cullerton put it in a statement today, “Given the confusion, the best thing to do at this point is to get a proposal drafted so we know for sure what we all agree on. It’s important to make sure we’re all on the same page.”
Cullerton is being nice.
Reviving the deal that Illinois’ rookie governor blew up yesterday with his own rookie mistakes is going to require patience, persistence and tact. And even then, the deal likely faces opposition from House Speaker Mike Madigan, and a near certain challenge in court on constitutional grounds.
* Our resident pension expert RNUG agrees that it’ll face a stiff challenge based on prior cases…
This Cullerton proposal, to rephrase it, is capping the pensionable salary. The IL SC said in the SB-1 decision (as a footnote, I think) that you can’t impose a salary cap. They’ve also said it previously. Don’t think this will fly but we’ll have to wait for the court to say so.
Accordingly, once an individual begins work and becomes a member of a public retirement system, any subsequent changes to the Pension Code that would diminish the benefits conferred by membership in the retirement system cannot be applied to that individual.
Additional benefits may always be added, of course (see Kraus v. Board of Trustees of the Police Pension Fund , 72 Ill. App. 3d at 849), and the State may require additional employee contributions or other consideration in exchange (see Gualano v. City of Des Plaines , 139 Ill. App. 3d 456, 459 (1985)). However, once the additional benefits are in place and the employee continues to work, remains a member of a covered retirement system, and complies with any qualifications imposed when the additional benefits were first offered, the additional benefits cannot be unilaterally diminished or eliminated.
* Our old friend Scott Kennedy ran some campaign money numbers. Here are the dollars raised (including in-kinds) for just the fourth quarter. Notice the huge total for Democratic House candidates. Wow…
Democratic Party of Illinois $1,786,444.01
Friends of Michael J. Madigan $1,747,639.53
Democratic Majority $1,632,063.67
13th Ward Democratic Org $638,950.00
Citizens for John Cullerton for State Senate $884,520.00
Senate Democratic Victory Fund $1,554,358.12
Committee to Support John Cullerton for State Central Committeeman $476,011.73
Dem Senators Not On Ballot This Cycle $637,882.30
Dem Senate Candidates $1,792,328.42
Dem House Candidates $7,190,292.50 Total $18,340,490.28
Citizens for Rauner, Inc $4,199.00
Turnaround Illinois $1,320.78
Illinois Republican Party $179,912.70
Citizens for Durkin $344,572.77
House Republican Organization $282,875.47
Citizens for Christine Radogno $303,275.39
Republican State Senate Campaign Committee $306,385.96
Rep Senators Not On Ballot This Cycle $259,036.64
Rep Senate Candidates $705,473.89
Rep House Candidates $1,185,456.33 Total $3,572,508.93
* And then he added in cash on hand and A-1’s from this year to date, subtracted out money already spent and came up with these numbers for the Democrats…
Democratic Party of Illinois $2,865,324.67
Friends of Michael J. Madigan $2,756,209.71
Democratic Majority $3,063,478.46
13th Ward Democratic Org $1,491,009.03
Citizens for John Cullerton for State Senate $2,080,723.82
Senate Democratic Victory Fund $3,616,883.51
Committee to Support John Cullerton
for State Central Committeeman $738,523.74
Dem Senators Not On Ballot This Cycle $5,066,601.70
Dem Senate Candidates $7,912,107.69
Dem House Candidates $19,537,947.24 Total $49,128,809.57
Citizens for Rauner, Inc $20,927,593.93
Turnaround Illinois $4,254,601.97
Illinois Republican Party $1,074,787.88
Citizens for Durkin $1,188,319.11
House Republican Organization $732,881.13
Citizens for Christine Radogno $676,277.00
Republican State Senate Campaign Committee $1,064,260.18
Rep Senators Not On Ballot This Cycle $1,402,724.95
Rep Senate Candidates $2,576,200.65
Rep House Candidates $5,611,413.41 Total $39,509,060.21
And don’t forget the $9 million in IllinoisGO’s account and $4.5 million in Dan Proft’s Liberty Principles PAC, along with various other groups that you can see by clicking here.
The battle for the State House in 2016 is going to be intense. There is already almost $90 million in play, it will certainly eclipse the $100 million mark and may push to $150 million.
And his conclusion in an e-mail to me…
This is some unprecedented [stuff]. Your standard targeted races could all be $5 million contests this cycle. That’s crazy.
To me, anyway, the bargaining comparison comes as little surprise. Rauner wants the world and AFSCME wants to hold on to what it has and even expand it. They’re asking for a $1,000 pensionable bonus in the first year and a 2.25 percent raise in the second year, with 3 percent raises in years three and four.
…Adding… From Anders Lindall at AFSCME…
Rich – So you’re aware, the documents you obtained and published are two of three emailed yesterday to AFSCME-represented state employees. With respect to the Bargaining Comparison, I’d emphasize that the union’s very modest proposals described here (agreeing to the governor’s bonus framework in year 1, reasonable wage increases in the out years, a willingness to pay a little more for health care, etc) reflect our latest positions, but these are NOT final offers. We’ve consistently indicated that we want to continue the negotiating process to find common ground. – Anders
* Meanwhile, here’s an e-mail from a reader…
Hi Rich,
Didn’t necessarily want to put this on a blog post and you probably know already, but my husband, a state police retiree, has been contacted about “exciting opportunities” to come back and work temporarily for the state. He was also told to let others know about it.
* She asked that her name not be used, but she transcribed the message the person left on her home voicemail. I’ve changed her husband’s name here…
“Hi Joe, this is Lydia from Premiere Staffing Services. Please call about a great opportunity I’m working on for the State of Illinois.”
* The reader suggested that “Joe” call Lydia back…
She told him if he knows of “anyone looking for work, Premier is lining up lots of folks.” She didn’t say for a lock-out, my husband said she seemed to indicate the need if there was a strike.
Joe did tell me that many times in the past, agencies would be required to hurry up and put together plans for different situations that never came to fruition.
Any day now Gov. Bruce Rauner’s administration will decide whether to reject or add 8 conditions, recommended by the state’s own advisory board, to the medical cannabis pilot program.
The latest patient count shows that there are 4,000 medical cannabis patients in Illinois — adding these 8 conditions (including PTSD, pain, etc.) would help to bolster this new Illinois industry. Expanding the program would not only help more Illinoisans, but would help create new sources of revenue this state desperately needs.
And a new poll reveals that the general public is in support of this program.
The facts at a glance are:
· Nearly 70% (69%) of Illinois voters support expanding Illinois’ medical cannabis program to allow more patients with debilitating conditions to enroll, including military veterans who suffer from post-traumatic stress disorder
· 80% of Illinois voters support allowing patients in Illinois to legally use medical cannabis if their doctor recommends it.
· Almost three-in-four likely voters say the benefits of medical cannabis outweigh the potential risks
Q: Do you support or oppose allowing patients in Illinois to legally use medical marijuana if their doctor recommends it?
Republicans: 66% Support/29% Oppose
Democrats: 87% Support/9% Oppose
Independents: 82% Support/12% Oppose
City of Chicago: 84% Support/11 % Oppose
Suburbs of Chicago: 82% Support/14 % Oppose
Rest of State: 76% Support/19 % Oppose
Q: Currently, the medical marijuana pilot program is limited to only a few different diseases. For example, military veterans who suffer from Post - Traumatic Stress Disorder cannot get medical marijuana even if their doctor recommends it. Do you support or opp ose expanding Illinois’ medical marijuana program so that more people are eligible for it like veterans suffering from PTSD?
A swath of Democratic representatives joined Majority Leader Barbara Flynn Currie on Thursday morning in asking that the extra TIF money — an estimated $150 million to $350 million — go toward helping CPS plug its $480 million budget hole.
Budget Director Alex Holt said using TIF surplus is a “great idea.” That’s why the mayor has been “aggressively” doing just that — to the tune of $700 million since 2011 and $113 million this year alone, she said. Roughly $60 million of that money is earmarked for CPS.
“We froze downtown TIFs. We declared an aggressive surplus. There’s not a whole lot left to surplus. At this point, we probably need to look at canceling current or future projects to generate more money,” Holt said.
“To the extent that any elected officials want to cancel projects in their community, we would be more than happy to work with them and send additional surplus dollars to CPS. However, the amount of additional surplus is not going to be sufficient to solve the financial problem at CPS.”
It would be nice to know how much excess money is in those funds, but that’s a good point by CPS. Pretty much everybody screams about TIF districts, but they’ve funded a whole lot of projects.
A CPS presentation to investors shows that its preliminary budget for 2016-17 — pegged at $5.7 billion — relies on $800 million in funding that the district hasn’t yet secured.
The plan includes a $458 million subsidy from the state — even though lawmakers hardly considered this year’s request for a similar amount. It anticipates $170 million in new tax dollars from Chicago residents to help pay pensions — something the state also would have to approve.
And CPS is expecting to net another $170 million after teachers begin paying 7 percent of their salaries toward pension costs — an expense currently covered by the district. Chicago Teachers Union Vice President Jesse Sharkey said, “There’ll be a strike before that happens.
The state subsidy and the property tax hike approval aren’t coming any time soon, either.
Lewis said those losses could include the end of the city’s practice of picking up the bulk of teachers’ required contributions to their pensions… “I think that people understand the dire straits that CPS is in and that we are willing to make certain sacrifices.” […]
Lewis has described eliminating the pension pickup as “strike-worthy,” though she tried Thursday to downplay and dangle the possibility of a walkout.
“People always worry about that strike — that’s what happens when you don’t get to an agreement. So at this point that’s not the way things are looking but I’m not going to rule it out either,” Lewis said. “I think people need to be prepared either way.”
Lewis said talks to replace a pact that expired June 30 were “going well.”
President Cullerton to deliver City Club speech Monday
What: Senate President speech to City Club. Media availability following speech.
Who: Senate President John Cullerton
Where: Maggiano’s Banquets 111 W. Grand Avenue, Chicago, IL
When: Speech begins at noon, Monday, Jan. 25, 2016. Media availability immediately following.
* Either that, or we were way over-staffed back in the day. From Governing Magazine…
According to data from the National Association of State Budget Officers (NASBO), 33 states have fewer employees — 15 percent fewer, on average — handling the budget than they did in 2002. In 20 of those states, budget staff is down at least 20 percent. Cuts have been the worst in Illinois (51 percent), Arkansas (45 percent), and Kansas and New Jersey (44 percent).
“They have fewer people. They’re swamped,” said Scott Pattison, former director of NASBO and now executive director of the National Governors Association.
Asked Thursday how he expects to get Madigan on board for anything in Springfield while blasting the powerful speaker publicly, Rauner smiled.
“He’s taught us how to work with him,” Rauner said. “Peace through strength.”
That was Cold War doctrine. It worked, but this isn’t “strength,” it’s rhetoric, and Madigan knows the difference.
* After saying he wouldn’t budge, Rauner caved on his massive cuts to the autism program (announced on World Autism Day). He caved on money for local governments. He caved on funding the child care program. He caved on federal pass-through appropriations. He caved on paying state employees and funding schools during the impasse. He caved on judicial consent decrees for social services.
I’m sure I’m missing others.
The point is, talking big is far different than acting big, despite the oh so manly tough guy face yesterday…
* Madigan and other Democrats look at all those flip-flops and see weakness. That could also be why Dan Proft felt he had to warn Rauner in a Tribune op-ed to not cave to AFSCME and the other public employee unions.
* Rauner is now attempting to sound as tough as possible ahead of his State of the State and budget addresses and he’s making big mistakes in the process.
Not to mention that he’s also ginning up a severely fact-impaired war with the state’s only majority black university, which will further harm his ability to work with African-American legislators. And pitting the suburbs and Downstate against Chicago over school funding is deliberately divisive and could easily be racialized if he doesn’t watch himself.
Knock off the words and get to work on moving this state - all of this state - forward, for crying out loud. Somebody doesn’t agree with you? Well, OK, I feel your cosmic pain, but stop whining about it and find another way.
* Getting a deal with Cullerton (despite the governor’s horrifically botched rollout) was a good start. That’s strength. That’s governance. Focus on that sort of thing. Madigan will respect you for that stuff because he’ll have no choice.
* Mike Schrimpf sent this out at around 5:30 yesterday…
Reporters –
To clarify a lot of misinformation that has been circulated today, below is a summary of President Cullerton’s consideration model for pension reform, which the governor is supporting. If President Cullerton has specific concerns with legislative language, we are confident those can be worked out. What is imperative now is for President Cullerton to make clear whether or not he stands in support of the below consideration model, developed by his office.
Pension Plan Summary
Benefits
Tier 1 members (hired before January 1, 2011) in SERS, SURS, TRS, and GARS are provided two choices and must make an election between the two choices.
Choice 1
· COLA is the lessor of 3% OR ½ CPI, simple interest on the originally granted annuity.
In Exchange For
· Future increases in salary will count as pensionable salary.
Choice 2
· No changes to current level of pension benefits; COLA remains at 3% annually, compounded.
In Exchange For
· Future salary increases will not count as pensionable salary.
Best,
Mike
* Any “misinformation” was solely created by Gov. Rauner himself when he told reporters…
“In order for President Cullerton’s bill to be constitutional, salary increases have to be taken out of collective bargaining. This is a key point. Salary increases come out of collective bargaining. So the union has nothing to do with it in the future.”
That’s just not true. It’s so untrue as to be ridiculous.
So, I asked Schrimpf why he didn’t just admit the governor made a mistake, which would instantly clear everything up.
Somebody else from the office called and we had a bit of a shouting match. Friendly, to be sure, but quite loud and extended.
* And then Schrimpf sent an e-mail labeled “Important Update” at 8:19 pm…
Please attribute to governor’s office:
“Perhaps the governor was not as precise in his word selection as the Democrats would have liked. To be clear, the governor agrees with the Senate President that the only labor law revisions that are necessary are those modest ones that ensure that employers shall not be required to bargain over compensation or benefits affected by President Cullerton’s changes, the impact of those changes, or the implementation of those changes. This is what the governor was trying to say. We agree. Let’s move forward to get pension reform done.”
Reporters immediately raised suspicions in tweets and initial stories, wondering why Cullerton wasn’t standing next to Rauner. Plus, Rauner’s language was incendiary, sounding anything like someone who was trying to build bridges. He blasted Madigan, he blasted unions. Above all though, he said something Cullerton, who has courted unions, said he never would have agreed to: “Salary increases come out of collective bargaining so the union has nothing to do with it in the future. That is necessary and a requirement for this to be constitutional.” Adding that his and Cullerton’s lawyers agreed on this point. But, according to Cullerton, they hadn’t.
Take-away: Rauner’s credibility is on the line after this one. Illinois Playbook flagged earlier this week that Rauner was expected to make a series of announcements in the leadup to next week’s State of the State address. If his intentions weren’t questioned before. They will scrutinized closely, if not dismissed.
That said: Late Thursday, Cullerton’s office seemed open to moving forward with Rauner if indeed he was not demanding a poison pill. But the whole episode reflected the deep-seated distrust among the parties. The media was not kind.
* As I told you the other day, Gov. Bruce Rauner’s Turnaround Illinois PAC transferred $1.818 million to Dan Proft’s Liberty Princples PAC. The rumor at the time was that Proft would use much of that money to defeat Sen. Sam McCann, the sole Republican to vote against Rauner on AFSCME’s “no strike” bill. McCann has a GOP primary race against Bryce Benton.
