Another hostage goes down
Thursday, Apr 7, 2016 - Posted by Rich Miller
* From a March 31st Illinois Department of Employment Security press release…
“Illinois’ overall job growth rate remains among the slowest in the country and metro area unemployment rates continue to rise, even with an increase in jobs in February,” said IDES Director Jeff Mays. “Structural reforms will provide the resources we need to more effectively build a stronger workforce and help communities towards achieving economic stability.”
* Yeah, well tell that to this East St. Louis provider which plans to lay off 117 workers…
The Lessie Bates Davis Neighborhood House will lay off 117 workers on April 30 due to the state budget impasse.
The workers are involved in a variety of programs administered by the social services agency, including the Homeless Youth Services Program, the Community Youth Services Program, the Comprehensive Community-based Youth Services Program and the Illinois Healthy Families Program. […]
Kreeb said as of February, the state owes Lessie Bates more than $500,000 for the non-Medicaid clients. He said each month, the Neighborhood House is incurring more than $100,000 in expenses that the state is not reimbursing.
“The agency already has had to borrow more than $500,000 and would have to borrow more than $1million by June 30 to keep the In-Home Services Program operating,” Kreeb said.
Ugh.
- illini97 - Thursday, Apr 7, 16 @ 3:10 pm:
The Lessie Bates Davis Neighborhood House has been serving the community for more than an century.
In it’s time, it has seen both Republicans and Democrats occupy the Governor’s Mansion. Why, it even predates Speaker Madigan.
So, what’s changed?
- Ghost - Thursday, Apr 7, 16 @ 3:16 pm:
wait shouldnt the tax decrease be trickling down and causing an ecnomic boon? So far the decrease is causing a lot of small buisnesses to shut down…. and uet the Gov wont propose a higher tax rate the grows our economy.
How many Kansas collapses does the gop need to understand voodoo economics has never worked….
US strongest financial year, lowest debt and generating a surplus where when Clinton raised taxes…. Bush lowered them and the debt rose and the economy started slowing… gov propose or support a tax solution and drop the personnel antiunion vendetta.
History is poised to show Rauner as our worst gov ever….. and thats something for a state the keeps sending its govs to prison
- burbanite - Thursday, Apr 7, 16 @ 3:17 pm:
Structural reforms apparently have some magical component to them, since I have never seen any data to support the wonderful things structural reforms will produce. 100 + year old facility closes amid impasse which will take us the same amount of time to financially recover from. But, but, structural reforms will magically solve all the state’s ills.
- cdog - Thursday, Apr 7, 16 @ 3:17 pm:
yep, what’s changed?
Some bank loaned this group $500,000. Yikes.
We know that somewhere out there, is A BANK BOARD, OR TWO, wondering how many loans are going to go south over Rauner’s need for structural reform before he will govern and pay his agencies’ bills. Sad, sad, sad for the holders of the collateral that is now at risk.
Good business, Illinois style!
Could there be billions in short term loans to cover vendors? Maybe the bankers need to call the Gov’s office and check on this. /s
- Oswego Willy - Thursday, Apr 7, 16 @ 3:17 pm:
@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate. - Ron Sandack, 9/28/15
Thanks Ron Sandack!
- Tone - Thursday, Apr 7, 16 @ 3:25 pm:
This is the future of Illinois. It’s bleak.
- Tone - Thursday, Apr 7, 16 @ 3:27 pm:
6.4% unemployment vs. 4.9% nationally. Over 105,000 people fled Illinois last year alone. Illinois has had one of the slowest population growth rates over the last 15 years. Citizens are tired of being servants to a small coddled public worker class.
- Sir Reel - Thursday, Apr 7, 16 @ 3:28 pm:
Structural reforms will do what? I wish the press would follow up the Administration’s continued claims with a question or two. Show us how term limits helps the economy. Anything.
- @MisterJayEm - Thursday, Apr 7, 16 @ 3:29 pm:
“Bruce doesn’t have a social agenda.”
– MrJM
- Mama - Thursday, Apr 7, 16 @ 3:38 pm:
==“The agency already has had to borrow more than $500,000 and would have to borrow more than $1million by June 30 to keep the In-Home Services Program operating,” Kreeb said.”==
Whoa… this is serious money. Will the State ever make them whole?
- Honeybear - Thursday, Apr 7, 16 @ 3:38 pm:
yep, really really really bad. This was our “go to” here. I’ve been superstitious for a long time with LBD. I haven’t, to my recollection, mentioned it so as to not jinx it. I kept praying that they had found some funding source and that’s why they were still running. Well, I guess we know. I found the article today at lunch. Can I tell you all something? Last month I had a secretary in my office applying for benefits who had worked for LBD for 17 years. She got laid off. I was worried then but guys, this is it. East St. Louis, Fairmont City, Berkeley, Caseyville, Centreville, Sauget, Alorton, Dupo, are done….out….gone…. Lessie Bates Davis was the linchpin. Loving God our lobby has been packed to standing room only for the last week. What are these good folks to do? The last man I saw needed me to fill out his redetermination because he is illiterate. No more literacy classes at LBD. I had a great grandmother taking custody of her great grandkids of 7 and 8 years old. SHE’S 79!!!! I ask in all earnestness. What kind of society do Raunerites want? These folks are floundering right now. What happens when they realize that this was intentional? I’ve had a hellacious day and this tops it off. Pray for us.
- Anonymous - Thursday, Apr 7, 16 @ 3:39 pm:
Tone, you are absolutely right. When I think of moving to another state, the first thing I consider is how much lower paid are the street and sanitation workers. Because it is not enough that they are dirty, I need to feel superior to them economically as well. I’m so sick of these fatcats being able to afford cars and groceries. Sickening. /s
- Demoralized - Thursday, Apr 7, 16 @ 3:41 pm:
I wonder if anyone has told Director Mays that paying the hundreds of millions of dollars owed to Illinois businesses and social service providers might also help the Illinois economy and employment situation. If that’s what he means by “structural reforms” then I’m right there with him.
- Trolling Troll - Thursday, Apr 7, 16 @ 3:45 pm:
Tone-
Your sentence jumble had no meaning. Please re-jumble and try again.
- Mama - Thursday, Apr 7, 16 @ 3:45 pm:
When Rauner states we need “structural reforms,” it doesn’t mean it will save the state any money. Rauner’s structural reforms comes with no data because their data doesn’t produce what the governor claims it will produce.
- JS Mill - Thursday, Apr 7, 16 @ 3:46 pm:
#FAKE-IDES-MAYS- rebuild our economy by increasing unemployment and not paying our bills.
- Mama - Thursday, Apr 7, 16 @ 3:50 pm:
Honeybear, I said a prayer for you when I read this article. Hang in there.
- Common Sense Republican - Thursday, Apr 7, 16 @ 3:52 pm:
Tone 3:27
I’m sorry, but please get REAL! Public workers KEEP you SAFE! Without public workers, there would be no Fire or Police protection. No one to ensure your food is not going to make you sick or worse!. Name one private company that has ALL of its salaries posted for the Public to review? Name one Private company that has all of the oversight that Government must provide for Transparency? All of these things that make us a GREAT country have a cost. And believe it or not, the cost is low compared to what a Private industry would charge. NO Private business could do what Government and it’s Public servants do and turn a profit. The GOP needs to wake up and listen or they will become a footnote in history.
To the other readers, sorry, just had to vent.
- Oswego Willy - Thursday, Apr 7, 16 @ 3:55 pm:
===This is the future of Illinois. It’s bleak.=== … - Tone -
“We’ll never make it” - Glum, Gulliver’s Travels cartoon.
-Tone -, I know I can’t help it, you’re just too loveable.
- Stumpy's bunker - Thursday, Apr 7, 16 @ 3:59 pm:
Win-Win for Rauner: Dying hostage, another opportunity to creatively-demonize Madigan in conjunction with this. Another creative-logic propaganda opportunity.
- Mama - Thursday, Apr 7, 16 @ 4:04 pm:
==.@GovRauner has put forward a number of immediate changes to the pension systems that generate significant savings==
Please show us some solid data on “significant savings”. How and how much money will suddenly appear in the revenue side of the ledger?
- Mama - Thursday, Apr 7, 16 @ 4:07 pm:
==“GOP leaders announce new legislation to fund social services. $1 .1 bil in spending they pay for with pension reform.”==
What is the bill number for this? Hello… there is no ‘pension reform savings’ that can pass the IL Supreme Court ruling. Even if it did, it would NOT create any revenue.
- Name Withheld - Thursday, Apr 7, 16 @ 4:09 pm:
Oh yeah, we’ll all coddled and overpaid. Just check the Panama Papers - you’ll find all of us in there.
Nutbucket
- Give Me A Break - Thursday, Apr 7, 16 @ 4:13 pm:
Mama the bill number is SB 3418.
- Norseman - Thursday, Apr 7, 16 @ 4:14 pm:
A) Mays gets his brownie points for his structural reform link.
B) Lessie Bates Davis gets the shaft for being a social service provider.
Now select which of the two facts above do you think Rauner really cares about? If you select (A), you would be correct. You win your “I hate unions” button.
- cdog - Thursday, Apr 7, 16 @ 4:14 pm:
Tone, “6.4% unemployment vs. 4.9% nationally.”
I knew you have been secretly admiring Obama! /s
(Can’t have it both ways bud. 4.9 can’t be good and bad at the same time!)
There is no way on this beautiful green earth that Rauner’s unwillingness to pay the bills, his bills, will encourage economic growth. Growth comes from stability, not via deadbeat games.
I’ve said it before, instances like this closing, Honeybear’s testimony of the frontline needs, banks giving loans to keep state vendors open, these things are the drumbeat of the Rauner Recession.
House of cards, baby.
(Getting a little wound up; not sure if I will make it out of comment purgatory with this one. Got one in there already today
- Give Me A Break - Thursday, Apr 7, 16 @ 4:15 pm:
What is really the untold story is the number of human services providers laying people off and cutting programs but trying to keep it quite out of fear of the Rauner people blocking them from getting valid contracts when a budget is finally passed if they go to the media about their cuts and reductions.
- Honeybear - Thursday, Apr 7, 16 @ 4:17 pm:
Tone- the unemployment for East St. Louis is 10.4 I believe. Number just came out. It’s 10 something. I think it was 10.4
- hot chocolate - Thursday, Apr 7, 16 @ 4:18 pm:
Don’t think of it as a social service provider and employer closing, think of it as just part of the Speaker taking his time to search for more of Rauner’s weaknesses.
- Mama - Thursday, Apr 7, 16 @ 4:23 pm:
==@ILSenateGOP “GOP proposal gets $ to those with mental health issues and developmental disabilities and to addiction treatment and sexual assault services”
There is no doubt they could use the money, but where is this magic money coming from (pension reform?)?
- Trolling Troll - Thursday, Apr 7, 16 @ 4:25 pm:
SB 3418 makes various FY 16 appropriations, if and ONLYif SB 2717 becomes law.
- James Knell - Thursday, Apr 7, 16 @ 4:25 pm:
Tone: If I am the master class, go get me a cup of coffee, ypos.
- Stumpy's bunker - Thursday, Apr 7, 16 @ 4:28 pm:
Name Withheld @ 4:09p
I’m wit ya.
When, as a lower middle-class public sector worker, I hear I’m part of the problem, I don’t know whether to laugh, cry, cut bait or take Ol’ Grandad on a walk through the woods.
- BBG - Thursday, Apr 7, 16 @ 4:31 pm:
Her spending plan depends on passage of her other legislation to reduce public pension costs. Hope it’s legal!
They must be getting some BIG backlash. Guess the hostages are hitting close to home.
- Cubs in '16 - Thursday, Apr 7, 16 @ 4:36 pm:
“Structural reforms will provide the resources we need to more effectively build a stronger workforce and help communities towards achieving economic stability.”
I wouldn’t be surprised if this becomes part of agency letterhead in the near future. /s
- BBG - Thursday, Apr 7, 16 @ 4:45 pm:
I guess the shakeout of social services is nearly complete for Radogno. There seems to be an urgency today.
- Mama - Thursday, Apr 7, 16 @ 4:47 pm:
“Republican leaders want to free up unspent money to fund Illinois social programs”
Which special funds do they plan to raid?
- Mama - Thursday, Apr 7, 16 @ 4:56 pm:
Regarding SB2717:
LRB099 16903 EFG 41250 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5 Section 3-102 as follows:
6 (40 ILCS 5/3-102) (from Ch. 108 1/2, par. 3-102)
7 Sec. 3-102. Terms defined. The The terms used in this
8 Article have the meanings ascribed to them in Sections 3-103
9 through 3-108.3, except when the context otherwise requires.
10 (Source: P.A. 90-507, eff. 8-22-97.)
- Ghost - Thursday, Apr 7, 16 @ 5:02 pm:
but tone, Illinois is one of the top states for Buisness growth…. so the people leaving are not businesses http://www.chicagobusiness.com/article/20150619/EMPLOYMENT/150619769/illinois-among-top-states-in-creating-businesses
- Mama - Thursday, Apr 7, 16 @ 5:04 pm:
SB3418 looks like a budget. Is SB3418 Rauner’s budget for FY2016 or 17?
- Langhorne - Thursday, Apr 7, 16 @ 5:08 pm:
Just part of the “necessary shakeout”, christine?
- Arthur Andersen - Thursday, Apr 7, 16 @ 5:25 pm:
These guys still don’t get it. Even if the “pension reform” ideas are a) legal and b) yield the estimated “savings,” that doesn’t mean there is suddenly a big pile of cash ready to spend today and then, year after year. Jeez, even Filan played a better game than this.
- illini - Thursday, Apr 7, 16 @ 5:45 pm:
Honeybear - Been gone for several hours today, but when I read the article I immediately thought of you and where you work and the work you do. This may not be LSSI or Catholic Charities but the work they do is just as important for the population and the communities they serve.
There will be more agencies that BVR will force to do the same thing. I never thought I would see the 1% have such callous disregard for those that are in desperate need of services being denied as they are. Not to mention the hundreds of staff being affected. Another sad day in the quest for a TurnAroundAgenda!
- Arthur Andersen - Thursday, Apr 7, 16 @ 5:51 pm:
I must have used an obscure banned word. My first post disappeared.
If the Senate Republicans can craft a reform bill that is constitutional and generates any material savings, good on them. The remaining problem is that savings accrue over time and the State needs the cash now.
- Norseman - Thursday, Apr 7, 16 @ 5:56 pm:
AA, you’re comments are always worth repeating. Well said.
- RNUG - Thursday, Apr 7, 16 @ 6:11 pm:
SB 2717 is an empty shell bill. Based in the GA’s previous track record, whatever language they stuff in it won’t be constitutional.
- RNUG - Thursday, Apr 7, 16 @ 6:12 pm:
-AA-
Filan could do 2 + 2 = 4
- burbanite - Thursday, Apr 7, 16 @ 6:16 pm:
I wonder if they get a bonus every time they say, “needed structural reforms”. MSM really needs to start calling him out on this. Ask the hard questions guys, isn’t that what you went into it for? ask the question.
- Arthur Andersen - Thursday, Apr 7, 16 @ 6:31 pm:
Thanks, Norseman. I’ll try not to repeat myself this time.
According to a story Finke just posted, the “reforms” are a cost shift in SURS/TRS to employers for salaries greater than $180,000 (Gov’s salary) and smoothing applied to actuarial assumption changes (they mentioned changes in investment return assumption) plus Cullerton’s latest plan. They aren’t counting any savings from the Cullerton plan (good idea) but estimate the other two changes will save $780 million per year.
That estimate is well, ludicrous. $780 million is over one-third of the annual pension appropriation (that is not unfunded liability repayment.) Fewer than 10 percent of TRS members are in that income bracket per their CAFR, and I suspect SURS wouldn’t be much higher. Their simply aren’t a lot of costs to shift. As far as the actuarial piece, that’s a fine idea but as I noted above, it doesn’t generate large immediate amounts of cash. Further, assumption changes can move in both directions-we can’t always assume they reduce contributions. In summary, quit foolin’ around and pay the bill.
- wordslinger - Thursday, Apr 7, 16 @ 6:58 pm:
The state is not honoring its contracts and paying its bills for services rendered so now another 117 people are filing for unemployment.
The Superstars must laugh themselves silly when they write their boiler-plate about “pro-business reforms to grow the economy.”
- RNUG - Thursday, Apr 7, 16 @ 7:26 pm:
If they are trying to make the State’s economic tatistics look worse, the Rauner team is succeeding wildly.
- illinois manufacturer - Thursday, Apr 7, 16 @ 8:04 pm:
We lost another manufacturer today Haegar Pottery…it seems to come down to no middle class people who can afford nice things…..so eve more impoverishment is going to turn things around?
- zatoichi - Thursday, Apr 7, 16 @ 8:05 pm:
Lessie Bates Davis was over 60% funded by state grants. Their net assets are OK. They just ran out of cash. Organizations were often asked by the state to go after those grants because they had done a good job over a long period. LSSI and Catholic Charities, the same thing. All the places in a bad spot are largely grant based w/ maybe 6 weeks in the bank. Snap of fingers and grants became taboo because it was easy pickings with no strong legal support. Some fee for service is getting paid only because Fed Judge Coleman ruled by decree. And the state’s institutional history who understands how all this works is retiring fast.
- Almost the Weekend - Thursday, Apr 7, 16 @ 8:24 pm:
Make the victory even sweeter for Madigan or Rauner. Both parties are responsible, when one of the most impoverished areas in the country loses its last social safety net, you have to think it’s bottomed out and the end is near, but it’s anything but.
- The Equalizer - Thursday, Apr 7, 16 @ 8:33 pm:
These “structural reforms” will make a “stronger workforce”? For whom, the workforce? I strongly doubt that.
- Arthur Andersen - Thursday, Apr 7, 16 @ 9:31 pm:
RNUG, depending on the issue, he might tell you 2+2=4, 22, 0, 8, or 400.
To the Post-the Repubs are proposing “the 2016 Cullerton Bill” plus two newish ideas-cost shift to employers in TRS & SURS for salaries over $180,000 (Governor’s pay) and smoothing of changes in actuarial assumptions.
The claimed savings from the latter two proposals (they’re wisely not assuming any savings from the Cullerton changes) is a stunning $780 million per year. I don’t see how they get even close to that amount, which is over one-third of the current normal cost of pension benefits. The cost shift will affect a portion of salary for probably less than 10 percent of TRS members and slightly more than 10 percent of SURS members. The smoothing proposal is much harder to predict. Over several years, assumption changes can cause contributions to move up and down-to assume all the changes over time will result in lower contributions is in my opinion unsound thinking. #AAIsNoSuperstar
- Arthur Andersen - Thursday, Apr 7, 16 @ 9:33 pm:
This is a test post
- Arthur Andersen - Thursday, Apr 7, 16 @ 9:40 pm:
Friends, I’m having some technology issues. One of my devices will not post here for some reason, hence the double post earlier and the test above. I’ve written a long post on the Repubs’ proposal about three times and it won’t post.
Summary-Cullerton bill plus new partial cost shift of TRS/SURS salaries >$180k and smoothing of changes in actuarial assumptions. Absolutely no way these changes will yield the estimated $780m annual savings.
- Norseman - Thursday, Apr 7, 16 @ 10:33 pm:
AA, sorry you’ve been unable to post your lengthier analysis. I always learn from your posts.
My only reaction is that this is just the GOP/Rauner version of smoke and mirrors. Once again an alleged reformer turns into the sinner he/she condemned.
- Anonymous - Thursday, Apr 7, 16 @ 11:20 pm:
“6.4% unemployment vs. 4.9% nationally. Over 105,000 people fled Illinois last year alone.”
And who has the Governor been during that period?
- Arthur Andersen - Friday, Apr 8, 16 @ 5:56 am:
Norseman, thank you for the kind words. Just tryin’ to do my part. If we discuss this again when it actually gets placed in bill form, I’ll write the long form post.
- Tone - Friday, Apr 8, 16 @ 7:39 am:
Lol, unemployment under Quinn was worse.
- NothsideNoMore - Friday, Apr 8, 16 @ 7:52 am:
This Day of Reckoning was was coming and well known by “insiders’ for years. Now its here and everyone wants to point the finger at the new guy. Thats politics but its not a solution. Meanwhile, no discussions, just more blamming and finger pointing. Here is an idea, do your job and legislate/negotiate a solution. Who cares what the quid pro quo is, get it done.
- RNUG - Friday, Apr 8, 16 @ 8:05 am:
-AA-
I noted one pension report or story a day or two ago that had a table showing the effect of changing the assumed rate +/- 1%. If you find it, that might help you a bit on calculating the financials the way it appears the proposed bill is.
I just read the SJ-R story and I have to say some of the numbers just don’t add up for me, especially which funds the savings money is coming from.
- Arthur Andersen - Friday, Apr 8, 16 @ 8:21 am:
RNUG, thanks. I read that article with “interest.”
As you note, the explanation of the funds benefiting from the “savings” was tough to reconcile.
- Huh? - Friday, Apr 8, 16 @ 8:37 am:
Heard Senator Radogno on the radio this morning say that she was a social worker.
What makes that statement so bad is that she ought to have an intimate understanding of the tragic impact that the budget crisis is having on her profession. And rather than doing something to resolve the crisis, she is an active participate in the destruction of the social safety net.
- sonny chiss - Friday, Apr 8, 16 @ 8:59 am:
I wish that each time the administration says “structural reform” they would also give a clear definition of “structural reform” and also clearly describe how that “structural reform” will be so beneficial to job creation so that the public can know and understand exactly why this impasse is worth all the pain being inflicted.
- wordslinger - Friday, Apr 8, 16 @ 9:02 am:
–This Day of Reckoning was was coming and well known by “insiders’ for years. Now its here and everyone wants to point the finger at the new guy.–
Meaningless statement.
Read the post. The Neighborhood House is going out of business after 100 years because the state hasn’t paid the money it owes for 10 months.
Not paying bills has been part of the governor’s public “leveraging strategy” for a year now.
- Honeybear - Friday, Apr 8, 16 @ 9:31 am:
Here’s another part of this. As the work requirement for foodstamps comes back on in November it’s going to be the final blow to this area. If unemployment is 10.4 that in not reflective of the huge amount of folks who just gave up. Anecdotally, just based upon seeing these folks day in and day out ,I’d say the real unemployment rate is about 25-30%. You just can’t take out the safety net like they have and not have MONSTROUS consequences. I cannot stress to you the severity of the consequences of what is happening. You don’t just pop back from this. We are looking at a generation lost at this point. It will take at least 30-40 years to come back from this. You think I’m exaggerating? Maybe I’ll take a walk today and snap some pics. You’ll believe me then. It’s perfectly safe here. It’s a ruin with good people living in it.
- Jack Stephens - Friday, Apr 8, 16 @ 9:33 am:
Bruce,
Since you don’t have email is there anyway we can get the same services at their local IDOC Facility for $18-65,000 a year. Plus the help there is Union!
Jack