Question of the day
Friday, Apr 8, 2016 - Posted by Rich Miller
* Today is the home opener…
* The Question: Your thoughts on the upcoming MLB season?
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Credit Unions – A Smarter Choice!
Friday, Apr 8, 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 in the case of 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, and lower costs and fees for services. In exceptional years, bonus dividends may be deposited into member accounts as well. 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.
Visit ASmarterChoice.org to locate a credit union near you!
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New CUB Poll: 84% Oppose Exelon Nuclear Bailout
Friday, Apr 8, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Nearly 1,900 people responded to the recent Citizen’s Utility Board survey about Exelon’s push to bailout its nuclear plants. Here is how CUB put it:
“Exelon says keeping its nuclear plants open will fight climate change—and they need economic help. Opponents say Exelon just wants bigger profits.
Should Illinois give unprofitable nuclear plants more money if it helps fight climate change?
No: 1,583 (about 84 percent)
Yes: 298 (about 16 percent)”
—————————————————
Illinois still has no budget, the state’s finances and services are in shambles, the social safety net is being decimated but Exelon STILL wants the Legislature to pass a huge BAILOUT.
Just say no to the Exelon Bailout.
www.noexelonbailout.com
BEST Coalition is a 501C4 nonprofit group of dozens of business, consumer and government groups, as well as large and small businesses. Visit www.noexelonbailout.com.
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Our sorry state
Friday, Apr 8, 2016 - Posted by Rich Miller
* Unreal…
Cash-strapped Illinois needs to provide in-home nursing care to more than 1,200 children with disabilities and severe medical conditions, a federal judge ordered Wednesday, responding to a lawsuit alleging the state has failed to fulfill its Medicaid obligations. […]
The plaintiffs’ lawyers said the state plans to appeal the decision and ask that the order be stayed until the lawsuit is resolved. […]
Jane Perkins, another plaintiffs’ attorney, said some of the children are currently being treated in hospital intensive care units instead of having a nurse at their home. She said that’s problematic because children who are “medically fragile” are prone to contracting hospital-borne diseases.
Wait… They’re keeping some of those kids in ICUs instead of in home nursing care? Yeah, that’s cost effective.
Sheesh. Good luck with your appeal!
Not.
* Meanwhile, remember when the Illinois Mathematics and Science Academy president wrote that his school owes millions to its vendors, but that he was still confident in the future?…
Is IMSA still viable for the remainder of this year and into next year and into future years? My answer is “yes.” Why do I say this? I believe that IMSA is too important to too many people. We’re too important to Illinois and the world to “fail.” While we’re not “too big to fail,” we’re “too important to too many people to fail.”
* Well…
Officials in Aurora and elsewhere are raising concerns about how the ongoing state budget war might affect the Illinois Mathematics and Science Academy in Aurora, a high school that draws students from across Illinois.
“How are we going to keep getting good teachers to come here and teach?” state Sen. Linda Holmes, an Aurora Democrat, said. […]
Illinois Board of Higher Education Executive Director James Applegate this week praised officials at IMSA for keeping the doors open and making things work, but he made the comments as part of a push to get lawmakers and Gov. Bruce Rauner to finish up their long-delayed work.
“They are in extremely dire straits right now,” Applegate said.
* Related…
* Tribune editorial: Is Illinois Gov. Bruce Rauner anti-union? Or pro-taxpayer?
* Illinois State researchers say university adds $554M to economy
* Union not talking about full strike at UI — yet: A walkout by nontenure-track faculty at the University of Illinois could come within 10 days, but it will likely be short.
* Union leaders seek Republican support for arbitration bill
* State, city study new pension solutions after Supreme Court slap
* Emanuel determined to craft new pension deal after court ruling
* Illinois could gain $60 billion by narrowing gender gap, McKinsey report finds
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* DNAInfo…
Those who travel through the busy intersection of Lincoln Avenue, Fullerton Avenue and Halsted Street might have noticed the giant sign hanging over the McDonald’s that reads “Chicago Republican Party, Chris Cleveland, Chairman.”
The city recently issued the owner of the building at 2420 N. Lincoln Ave. a violation for putting up the sign without a permit, threatening to fine the group if it doesn’t follow city protocol, according to the complaint. The chairman of the Chicago Republican Party called the request “unconstitutional.” […]
“I refuse to ask permission for any government entity before engaging in political speech. It’s unconstitutional and offensive,” Cleveland said in an interview.
There’s an error in that second paragraph. The city is going after the building owner, not the Chicago GOP.
Still, it seems like more than a bit excessive on its face. Just one more story about those needless and burdensome city sign regulations.
* But all is not as it seems…
City officials aren’t the only ones fed up with the Chicago Republican Party’s giant sign.
The sign, which was installed by the group at 2420 N. Lincoln Ave. last fall without a permit, is covering a big window in Tom Alcock’s psychology office — and he’s not happy about it.
“This has been really hard on me,” Alcock said. “I’ve lost sleep and pounds trying to protect my business.” […]
Alcock said not only does the sign violate city law, but it also violates Alcock’s lease.
Um, yeah, I’d be upset too if some guy violated my lease by covering up my office window with a giant sign…
Cover up your own window, freedom fighter dude.
…Adding… I thought I remembered those signs. Thanks to a commenter for this link.
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* I asked Voices for Illinois Children’s Emily Miller to take a look at the Republicans’ new approp bill. Her response…
Hi Rich,
Voices’ Fiscal Policy Center has taken a look at the spending proposals contained in HB2990 HA2 [the House Democrats’ approp bill] and SB3418 [the GOP proposal] to determine whether either are viable options to immediately relieve the built up pressure on the social service and higher education systems.
Each plan is flawed because neither raises any revenue, and both rely on additional GRF spending when we’re already running large GRF deficits.
The appropriations made in HB2990 HA2 come from both special funds, which have current available cash balances, and GRF. While GRF appropriations mean providers can get in line to get paid, the delay on those payments will be substantial because of the large and growing backlog.
SB3418 appropriations come with an additional barrier in that they are payable only upon the passage of a pension reform bill. As in HB2990 HA2, additional GRF appropriations without revenue mean we increase the deficit and add to the backlog.
So where do we go from here? The introduction of both these bills indicates that house and senate members on both sides of the aisle understand there is a crisis. Both bills also include funding from special funds, so it’s clear everyone understands there is money currently sitting in special funds.
In FY15 it was politically palatable for lawmakers and Governor Rauner to sweep and borrow from special funds to support critical services. If it was deemed reasonable to use those funds in FY15 to keep systems from crashing, perhaps there could be agreement that it would be wise to look at special fund balances to prevent total destruction of the social service and higher education infrastructure.
Of course, the daily destruction from this budget crisis started a few months back and will continue until there is a plan including sustainable revenue to fund FY16, FY17 and beyond. On an emergency basis, though, lawmakers should look at using balances as special funds to keep systems alive while they debate bigger tax and policy reform issues.
* She then texted me this…
It’s important to add that sweeps can be done in a responsible way. Obviously the consequences of sweeps have to be examined before the sweeps are made. But they can be useful to keep entire systems from dying.
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#Winning!
Friday, Apr 8, 2016 - Posted by Rich Miller
* Pearson has a very good analysis in the Tribune today about education funding and the impasse…
At the heart of the stalemate is the belief on each side that they are winning the public opinion battle in an important election year.
Truer words have never appeared in that newspaper.
* More…
The lack of state funds due to the continued budget impasse could keep schools that are heavily dependent upon dollars from Springfield from opening on time, creating a dilemma for parents.
Rauner and Democrats led in the House by Speaker Michael Madigan and in the Senate by President John Cullerton may be rolling the political dice in betting who the public will blame on Election Day if that happens.
Such a pressure point was avoided last year when Rauner vetoed all but the Democratic-drawn elementary and secondary education budget for the state.
Seeing what Rauner did with the school budget last year, Democrats may try to use any school budget appropriation this year to try to gain some kind of leverage against the Republican governor’s agenda.
Go read the whole thing.
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* From a Thursday press release…
Providing Illinois social services with critical funding, and utilizing proposals currently available to fund higher education, were part of a proposal introduced today by Senate Republican Leader Christine Radogno (R-Lemont) and House Republican Leader Jim Durkin (R-Western Springs), both of whom called on Democrat leaders to stop playing games and begin working in a bipartisan manner to achieve results for residents of Illinois.
“Today, we are introducing legislation that will fund our most critical social services,” said Leader Radogno (R-Lemont). “The social safety net in Illinois is at a breaking point and we need to stop playing games and bring everyone together to demonstrate to Illinois taxpayers that we can put partisanship aside and do what is right for the most vulnerable in our state.”
The proposal introduced by Leaders Radogno and Durkin would fund Illinois’ most critical social services. The proposal, contains $433 million of General Revenue Funds (GRF) and $858 million of Other State Funds, which totals nearly $1.3 billion.
Senate Bill 3418 would support:
• Seniors in the Community Care Program;
• Veterans;
• Those with mental health issues and developmental disabilities;
• Homeless youth, homeless vets and homelessness prevention in general;
• Programs like Adult Redeploy that that are critical to our criminal justice reform efforts;
• Addiction treatment, sexual assault services and prevention; and
• The Special Olympics
The Republican Leaders also reaffirmed their support for funding higher education, and noted there are a range of options available to secure funding, such as using procurement reform savings, using excess special funds, and giving the Governor authority to move money around. Unfortunately, notes Leader Durkin, there’s been zero consideration on these ideas from the Speaker. In fact, as Chicago State University prepares to close their doors, Democrat leaders won’t even come to a meeting to discuss bipartisan proposals to fix the problem.
“House Republicans are very concerned about funding for higher education, and we’ve tried to jumpstart that conversation by introducing new ideas on how to generate taxpayer savings to show taxpayers that we’re pursuing a way to pay for things,” said Leader Durkin. “There are a range of options out there we should be exploring, and we owe it to the people, and students, of Illinois to have an open and bipartisan dialogue. The time to act is now.”
Both Radogno and Durkin believe that comprehensive pension reform can generate enormous taxpayer savings. Governor Rauner has put forward a number of immediate changes to the pension systems that would generate hundreds of millions of dollars in savings for Fiscal Year 2017 – changes that are not subject to court challenge – savings that can be banked immediately. These are items like dealing with salary spiking and capping pension subsidies for salaries over $180,000 – and stabilizing the actuarial projections.
However, Illinois needs more than that.
“We need structural change for the long-term, and as the Governor has said, we’re just waiting for President Cullerton to submit his consideration plan,” said Radogno. “Together, some of the immediate changes from the Governor’s budget and the long-term changes from the Senate President can pay for this bill and – more importantly – fund a robust social safety net for years to come.”
Both Republican Leaders echoed the Governor’s call for a full leaders’ meeting, and are encouraging the Democrat Leaders in both the House and Senate to attend.
* Finke…
Rauner has criticized spending bills passed by Democrats because they do not come attached with cash to cover the costs. Radogno said the Republican plan will be covered by enacting pension changes sought by the administration that will provide the money to cover the human-services spending.
Rauner has proposed requiring public schools and universities to cover the pension costs for salaries they pay above $180,000 a year, the salary authorized for the governor in Illinois. Rauner also wants to implement a plan that would phase in changes to state contributions caused, for example, when the pension systems cut the rate of return they expect to receive on their investments.
Overall, the administration thinks the changes will save $780 million a year. […]
“I think we would continue to note that the idea of spending pension savings before the bill has passed, let alone gone through any court review, probably isn’t wise,” [Senate President John Cullerton’s spokesman John Patterson] said.
OK, but the approp bill passed by the Senate Democrats wasn’t exactly fully funded either. Far from it, in fact.
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*** UPDATED x1 *** Today’s quotable
Friday, Apr 8, 2016 - Posted by Rich Miller
*** UPDATE *** Important correction issued by the magazine…
Rich, thanks for including our magazine piece on the blog today.
Wanted to let you know that we’ve issued a correction on that particular quote from Victoria Watkins in our April issue of Chicago Lawyer. After checking the original transcripts, she told our reporter “I protect the city in Springfield.” Somewhere on the editing desk, it got changed to “from Springfield.” That one-word difference offers a vastly different connotation than what Ms. Watkins told us, and I’d like to apologize for the error. We’ve updated the web version of the story and left a note of the change.
Best,
Marc Karlinsky
Editor, Chicago Daily Law Bulletin and Chicago Lawyer
[ *** End Of Update *** ]
* Victoria Watkins, deputy director of the city of Chicago’s Office of Legislative Counsel and Government Affairs, asked by Chicago Lawyer Magazine about a typical day…
When people ask what it is I do, the first thing I always tell them is that I protect the city [in] Springfield. I take that job very seriously. Some people might say too seriously… I wish that’s something more people knew — we have to protect the city far more than we can get for the city. There are so many bills that (city) departments hate and are more concerned with not becoming law than there are with getting their other requests granted.
* On how the state budget impasse affects her job…
I am the funding and complaint hotline. By September, I started getting routine calls from different city departments asking, “Victoria, when will we get this money and these appropriations because we need to get started on these contracts?”
We started getting cease-and-desist letters on our projects last year, and we’ve been able to get some things done piecemeal. Unfortunately, there are still some things hanging out there, and many of them are human services-related. The heavy financial and infrastructure things are done for the most part but many intangible, important things that are not. We just keep pushing every day.
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Sweeps can have consequences
Friday, Apr 8, 2016 - Posted by Rich Miller
* SJ-R…
A $20.3 million payment backlog for cleaning up leaky underground petroleum tanks in Illinois could cost the state federal approval of the program.
Payment delays have left some individual contractors with millions of dollars in unpaid bills for cleanups at 709 storage tank sites statewide, according to figures from the Illinois Environmental Protection Agency.
The Illinois Comptroller’s Office has no authority to pay contractor claims submitted by the state EPA as a result of a state budget impasse that’s now into its 10th month.
As a result, the U.S. EPA is threatening to cancel its approval of the Illinois program, which would force site owners to purchase private insurance or find other ways to pay for future cleanups while the budget impasse drags on. […]
In a March 21 letter to Illinois EPA Director Lisa Bonnett that was obtained by The State Journal-Register, the U.S. EPA also expresses concern that an estimated $20 million from an “underground storage tank” fund was used for non-cleanup purposes in 2015. The Illinois program, funded through a 1.1 cents-per-gallon tax on fuel, has paid out more than $800 million since it was create in 1989, according to state EPA figures.
Notice how there’s a $20.3 million payment backlog and how the state used $20 million from the fund last year for “non-cleanup purposes”?
Well, the state swept $20 million from the LUST fund and deposited the money into the General Revenue Fund as part of the Fiscal Year 2015 budget fix last May. The funds which were swept supposedly all had excess cash in them.
Oops.
…Adding… I’m told by the governor’s office that the fund’s “balance [currently] exceeds $53 million while current claims waiting for appropriation authority total under $20 million.”
OK, fine, but the EPA is still upset about that sweep.
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* SJ-R…
KISS, the rock band known for its elaborate makeup, costumes and pyrotechnics, is the latest add to the 2016 Illinois State Fair lineup.
The band will perform Wednesday, Aug. 17, state fair manager Kevin Gordon said.
Ticket prices range from $49 to $74.
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