It’s estimated a retirement tax could bring in up to $2 billion a year, real money in a state that’s broke and getting broker.
But seniors can chill because, as I said, it’s unlikely this year.
As an old dude who’d be whacked by the tax, I’m relieved.
As an old dude who worries about the mountain of debt we’re piling onto our children and grandchildren, I think it should at least be considered as part of an overall solution.
Lawmakers in 40 states bit the bullet, faced the wrath of seniors and imposed a tax on retirement income.
Most are still around to talk about it.
But this is Illinois, a dystopian government Wonderland where a refusal to even consider the obvious is business as usual.
The Mad Hatter would love it.
* But AARP is not taking any chances and has launched an ad campaign just in case somebody tries to move it forward. Click here to see the newspaper ad, which is running in these papers…
Chicago Tribune
Chicago Sun-Times
Rockford Register Star
Champaign News Gazette
Springfield Journal Register
Peoria Journal Star
Belleville News Democrat
Illinois is in a deep fiscal crisis – and special interests and some elected officials are proposing a tax on your retirement income in order to solve it.
That just isn’t right or fair.
Retired Illinoisans did not cause this mess. They certainly shouldn’t be sacrificed to clean it up.
Ninety-percent of older Illinoisans, including those still working strongly rejected a tax on retirement income according to an AARP survey.
A tax on retirement income would have a dire financial impact on retirees and their families.
That’s why AARP is fighting to protect the financial security of retired Illinoisans and to make sure taxpayers are represented at the table.
Take action, fight back and make your voice heard! Urge your legislators to oppose the taxation of retirement income.
* And here’s a Chamber press release in response to today’s protest…
“The Illinois Chamber of Commerce appreciated that union workers are concerned about the state budget. The Chamber is too. But we have said for years that grossly unbalanced state budgets would lead to a crisis. You cannot expect smooth sailing when Illinois has been spending billions of dollars more than it has coming in for more than a decade. This was the year that the check came due.”
“To solve this problem, we need pro-growth reforms to bolster the Illinois economy, which will be good for workers, companies, state government, and the organizations that state government funds. Otherwise, we will be in an increasingly precarious situation with each coming year. Time is running out. Let’s solve this problem now.”
* No matter how unthinkable it might be, I can see it happening and I’ve been hearing members and other Statehouse types saying the very same thing lately…
Dem leader Rep Lou Lang at union rally: "We might not have a budget during the term of Bruce Rauner." pic.twitter.com/LxZB4dhvbj
How Leader Lang and others expect our human service provider network to survive even a few more months without an actual budget is beyond me, but we could easily be headed for an unimaginable dystopia come June 1st.
Also, too, what if Rauner is reelected?
…Adding… From an administration official…
It’s clear that Speaker Madigan and his most loyal members are doing whatever they can to derail negotiations and prevent a state budget deal. It’ll be up to rank and file Democrats to either fall in line with Madigan or push for a deal.
Wednesday, May 18, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Prevailing wage is the minimum wage and workmanship standard for those who build our schools, hospitals, bridges, and other public facilities. Strong prevailing wage laws improve the lives of veterans, who work in construction at much higher rates than non-veterans, and come home to put their battle-tested leadership and problem solving skills to work building our communities while providing a good life for their families. Unfortunately, in the last two years, at least eleven states (including Illinois) have considered repealing or weakening their prevailing wage laws, which would hurt our economy and drive thousands of veterans out of their jobs and into poverty. Our veterans fought for us over there. Let’s show them that we have their back here at home. Stand with veterans and sign our petition for the strong prevailing wage laws that help veterans and their families access good paying construction jobs in our communities.
Chicago ranks 65th out of 70 metro areas for employment equality for blacks and 62nd out of 70 for income equality, according to the 40th annual State of Black America report, published yesterday by the National Urban League.
Unemployment for blacks in the Chicago-Naperville-Elgin area stands at 18.6 percent, compared with 5.8 percent for whites. Unemployment for blacks in the metro area that ranks first, Providence-Warwick, R.I., is 9.9 percent, compared with 6.8 percent for whites.
Black households in the Chicago-Naperville-Elgin area have a median income of $35,169, versus $74,759 for whites. By contrast, black households in the city that ranks first, Riverside-San Bernardino, Calif., have a median income of $46,438, with $60,668 for whites. That means in that area, black households’ median income is 76.5 percent that of white households; in Chicago, it’s 47 percent.
“Chicago is in a crisis, a perfect storm of inequities,” says Shari Runner, president and CEO of the Chicago Urban League. The unemployment rates for blacks ages 20 to 24 is 47 percent, and for 16- to 19-year-olds it’s 88 percent.
There was a bit of good news for Latinos in the region. They had the 49 highest unemployment in the 2015 report at 10.6 percent, but that was down to 42nd highest at 8.6 percent in the 2016 report.
* This was introduced very late in the game and it’s probably going nowhere in the Senate, which is run by an Emanuel pal…
As Mayor Emanuel continues to look for ways to prevent the city’s largest worker pension fund from going broke before the decade’s out, the folks who run the fund have sent the city a legislative message: just pay up.
The Municipal Employees Annuity and Benefit Fund of Chicago got Illinois Rep. Elaine Nekritz, D-Northbrook, to introduce legislation Tuesday that calls for the city to ramp up its contributions to the fund, which is nearly $10 billion in the hole.
Under the proposal, the city would be given 40 years to bring the fund up to 90 percent funding, under the threat of reduced state funding for failure to do so. It does not reduce benefits, as did an earlier Emanuel plan that the Illinois Supreme Court struck down in March. […]
But Emanuel has said he’s still looking for a way to soften the blow on taxpayers when it comes to city workers and laborers. And the administration issued a chilly statement Tuesday in response to the bill: “Introducing and passing legislation that requires scheduled pension contributions from the city without also identifying a dedicated revenue source is irresponsible.”
* Strong opposition by the retailers along with a couple of pledged supporters who didn’t show up for the vote killed this one off…
Legislation that would allow municipalities to share confidential taxpayer information with third-party vendors in order to correct errors from the Department of Revenue was defeated in the Illinois Senate by one vote Tuesday.
This marks the second time in a week the bill has fallen short of passage.
The legislation would give third-party vendors access to information so long as they entered into confidentiality agreements with municipalities. Vendors could then use the information to discover and collect tax revenue that may have been reported to the wrong community by the Department of Revenue.
“Financial advisers may have abilities and software to provide checks and balances with the Department of Revenue,” said Sen. Michael Hastings, D-Tinley Park, the bill’s sponsor. “Time and time again, the Department of Revenue makes multiple mistakes allocating money that municipalities aren’t entitled to.”
As of Tuesday, a bill was making its way through the Illinois statehouse that, if signed into law, would make it easier for ex-offenders to get an occupational license in barbering, cosmetology, roofing, and funeral home directing. The bill would bar the IDFPR from denying occupational license applications to people with a criminal record if their conviction wasn’t “directly related” to the profession. It would also require IDFPR to issue a written decision if it did reject an applicant on the basis of their criminal record, as well as mandate a yearly report from the department on those decisions.
The bill wouldn’t do anything for the the dozens of other professions, like insurance, that require a license in the state. Illinois Representative Marcus Evans is sponsoring the bill in the house.
“We have these four categories which will provide more opportunities, and I think hopefully we can build on that,” he said. “Going through the legislative process you can’t always get everything you want. But as long as we are moving in the right direction I am reasonably satisfied. And hopefully we can get more in the future.”
After Tony Graham was denied his insurance producer’s license, he was unemployed for a while. He almost lost his house. But he eventually found work: driving for the rideshare service Uber.
Eleven of the 18 members of the Illinois Republican Party platform committee reportedly are agreed that the one-man, one-woman marriage plank should be removed from the 2016 platform. […]
Wednesday night, the committee is expected via conference call to confirm the platform they will be recommending to party delegates this weekend IL GOP State Convention in Peoria. […]
Committee members that support removing the section say the IL GOP’s position preferring one-man/one-woman marriage over same sex marriage is viewed negatively by younger voters that are more libertarian on the issue.
Others argue that since the Supreme Court ruled on same sex marriage, states are not allowed to hold positions differing from the decision, thus the position is irrelevant. Still others insist the Republican Party boasts a “big tent” that should welcome anyone with any position on the sanctity of marriage.
A. We recognize that a strong family, based on the institution of marriage, sanctified by God and strengthened by the legal protections afforded to that institution by government, is the basic building block of society. Accordingly, we support public policies that promote the formation, endurance, and autonomy of the nuclear family and that empower parents to provide a safe and nurturing home environment for their children.
B. We recognize that religious freedom is the “first” freedom, as enshrined in the First Amendment. While we oppose discrimination in any form, we also oppose public policies that seek to compel or coerce individuals, businesses, religious institutions, or other organizations to violate their core religious beliefs, including, without limitation, by participating in ceremonies that run contrary to their core religious beliefs.
C. We believe that parents—not bureaucrats—are best-positioned to make decisions regarding the health and welfare of their minor children, and we support public policies that preserve and strengthen parental rights.
D. We believe that the disintegration of the nuclear family is a leading cause of generational poverty and that a connection exists in this and other respects between “social” and “fiscal” public policy issues.
E. We recognize that the states reserved to themselves—implicitly throughout the U.S. Constitution and explicitly in the Tenth Amendment—the power to legislate on matters related to marriage and family, and we oppose efforts by the federal government to encroach on that reserved power.
* I’ve seen a ton of stories about the long security screening lines at O’Hare and other airports, but few point to the fact that this is self-inflicted. From a March 30th AP story..
Launched nationwide in 2012, PreCheck gives previously vetted passengers special screening. Shoes, belts and light jackets stay on. Laptops and liquids stay in bags. And these fliers go through standard metal detectors rather than the explosive-detecting full-body scanners most pass through.
PreCheck lanes can screen 300 passengers an hour, twice that of standard lanes.
The TSA offered Congress a lofty goal of having 25 million fliers enrolled in the program. Based on that and other increased efficiencies, the TSA’s front-line screeners were cut from 47,147 three years ago to 42,525 currently. At the same time, the number of annual fliers passing through checkpoints has grown from 643 million to more than 700 million.
As of March 1, only 9.3 million people were PreCheck members. Applicants must pay $85 to $100 every five years. They must also trek to the airport for an interview before being accepted. Getting once-a-year fliers to spend the time or the money to join has been a challenge. While 250,000 to 300,000 people are joining every month, it will take more than four years at that pace to reach the target.
* The last sentence in this excerpt pretty much sums up the philosophy of the Illinois Policy Institute…
As part of Taxpayer Advocacy Day, Swanson was one of about 50 Illinoisans who gathered Tuesday at the Capitol to lobby for sustaining Gov. Bruce Rauner’s veto of a bill to send union negotiations to binding arbitration. If an unelected arbitrator were to rule in the union’s favor, it could cost the state billions, Rauner has argued
Over 200 people signed up for the taxpayer rally put on by Illinois Policy Action, an arm of the Illinois Policy Institute that conducts independent research and calls for limited taxation.
“We’re here to show there are people here who want to fix Illinois,” Swanson said.
While rally participants sought to encourage lawmakers to vote against an override of House Bill 580, Hugh McHarry of Havana said they were there to support government solutions that lower taxes and stop residents from fleeing the state.
“We are tired of talking about this in our homes,” McHarry said. “Illinois representatives should represent the taxpayers and not the tax receivers.”
What we really need is a better balance. As I’ve said many, many times before, we need to do things for employers like make workers’ comp insurance more affordable. We need to help local governments deal with their cost burdens as well. But it has to be a balanced approach. Until recently, the governor hasn’t been interested in that. I think he’s changing, at least in the context of making a budget deal before everything crashes and burns.
* And here’s something that the folks who don’t want a deal always miss: Once Rauner agrees to a tax hike, he will have a far tougher time holding everybody hostage. Yes, he can veto future budgets in order to try and obtain even more reforms. But if there’s ample revenue coming in, we won’t be racking up these huge deficits.
So, I think the working group on the “non-budget” items should make its product public, even though it’s not yet completed. Right now, opponents of a deal (including Speaker Madigan) keep talking about how they’ll fight to the death the governor’s proposed reforms from last year. But those proposals have changed, in many cases considerably.
Wednesday, May 18, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
The following is an excerpted letter to the editor from this week’s Crain’s, co-authored by James Hansen, President of Climate Science, Awareness and Solutions and Michael Shellenberger, Founder and President of Environmental Progress.
“…New legislation would invest in renewables and efficiency, and only support Exelon’s two economically distressed plants, Quad Cities and Clinton, not all of its nuclear fleet.
…We would prefer to see a 100 percent zero emission standard by 2030, one that treats all sources of zero-carbon electricity—from solar and wind to nuclear and coal with carbon capture and sequestration—equally. But that is not going to happen this legislative session, so we encourage the Illinois Legislature, Gov. Bruce Rauner, environmental groups, labor unions and others to put pressure on all sides to get a deal and pass a version of SB 1585 into law.
…Time is running out. If Illinois legislators fail to act quickly to pass legislation, the state will lose 23 percent of its electricity from clean energy sources and carbon emissions will skyrocket the equivalent of nearly 2 million cars over the next two years due to the loss of two nuclear plants, Clinton and Quad Cities.
We encourage all sides to agree to reasonable compromise so Illinois can be a leader on climate and green jobs.”
* This local is only about 50 members, but a four-year wage freeze and other stuff in this deal is on the table in the AFSCME negotiations. It’s also notable because today is the big labor rally…
Governor Bruce Rauner issued a statement [yesterday] following the Illinois Federation of Teachers ratification of four-year collective bargaining agreement:
“We are proud to announce that the Illinois Federation of Teachers, AFL-CIO Local #919, representing educators at the Illinois School for the Deaf, ratified a four-year collective bargaining agreement with our Administration. This group of educators is dedicated to the School and the Administration’s shared mission “to educate students who are deaf or hard of hearing to be responsible, self-supporting citizens.”
“Through negotiations, our Administration created a lasting partnership with the Illinois Federation of Teachers that will benefit the parents and students we serve. The end result is a labor contract that is consistent with the contracts previously ratified by 17 other bargaining units representing over 5,000 state employees and is a testament to what can be accomplished when both sides are willing to compromise and negotiate in good faith.
“We are excited about the new day in our relationship with the Illinois Federation of Teachers.“
BACKGROUND
The agreement includes the following terms:
· A structure for new labor-management committee to facilitate biannual—if not more frequent—discussions between the Union and senior members of our administration to advance the School’s mission;
· Joining the health insurance program agreed to by other unions and offered to the state’s nonunion employees that will offer employees a variety of new options, allowing them to either maintain their current premiums, maintain their current coverage, or mix and match in the way that is most beneficial to them;
· A new incentive program to reward employees with performance bonuses for cost-saving measures and meeting or exceeding performance standards;
· A four-year temporary salary freeze;
· A commitment to improve summer employment opportunities for educators;
· A commitment to timely fill educator vacancies with well-qualified candidates, allowing sufficient time to recruit highly sought-out candidates with a degree from an accredited Deaf Education program; and
· A program to enable the State of Illinois to address minority underutilization in state government.
The Rauner Administration has reached collective bargaining agreements with the following unions:
· Teamsters (Downstate)
· Teamsters / Professional & Technical Employees Local Union No. 916
· Teamsters (Fox Valley)
· Teamsters, Local 700 (Cook County)
· Teamsters, Local 700 (Master Sergeants at Illinois State Police)
· International Brotherhood of Boiler Makers - Iron Shipbuilders, Blacksmiths, Forgers, and Helpers
· Illinois State Bricklayers and Allied Craftworkers
· United Brotherhood of Carpenters and Joiners of America
· International Brotherhood of Electrical Workers
· SEIU, Local 1, Fireman and Oilers Division
· International Union of United Food and Commercial Workers
· Laborer’s International Union of North America (LIUNA) (Prevailing Rate)
· International Association of Machinist and Aerospace Workers
· International Union of Operating Engineers, Local 399
· International Union of Painters and Allied Trades
· United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry
· International Association of Sheet Metal, Air, Rail, & Transportation Workers
Wednesday, May 18, 2016 - Posted by Advertising Department
[The following is a paid advertisement.]
Despite increased costs resulting from the regulatory environment, credit unions are the only financial institutions which overwhelmingly offer free checking accounts. A study by Moebs Services confirmed that nearly 74% of credit unions offer free checking to their members, while only 46% of banks offer the same. In the aftermath of the financial crisis, new regulatory requirements have significantly increased compliance costs for all financial institutions. For many, the increased operating costs have been passed on to customers in the form of fees associated with financial transactions. However, credit unions continue to offer financial services at the lowest possible cost – sometimes even free – to their members.
Experience the credit union difference. Visit ASmarterChoice.org to locate a credit union near you!
After they had passed the tuition grant bill, [House Democrats] called votes on legislation to freeze property taxes, an item on Rauner’s legislative wish list. The bill doesn’t include the language Rauner has requested that would allow local governments to save on costs by setting limits on collective bargaining. That language is included in a separate amendment, and Democrats have spent the past year voting to approve the property tax freeze while rejecting the collective bargaining provisions. It’s a trick designed to allow Democrats to go on record supporting the property tax freeze, which is popular with voters, while forcing Republicans to cast protest votes against it.
House lawmakers spent much of the rest of the day debating whether it was the 17th or 18th time Democrats had called the legislation for a vote.
Senate Republican Leader Christine Radogno of Lemont said she remains “pretty skeptical.”
“We’ve had a lot of working groups, and (Madigan) disavows any knowledge or interest of them every time,” Radogno said. “I think ultimately the working group needs to be the speaker himself and the leaders because he manipulates the process and then nothing happens. That’s what I’m worried about.”
Video of Radogno’s remarks, along with House GOP Leader Jim Durkin’s comments, is here.
The meeting was the first of its kind since rank-and-file lawmakers last week presented leaders and the governor with a framework for a balanced budget for next year. That outline included roughly $2.4 billion in spending cuts and $5.4 billion in new revenue, which would be generated in part by raising the state’s personal income tax rate from 3.75 percent to 4.85 percent.
After the meeting, Senate President John Cullerton, D-Chicago, said Rauner reiterated his willingness to raise new revenue to balance the budget.
“That’s, I think, very helpful,” Cullerton said, “because if you don’t have revenue, you could never possibly come to a balanced budget.”
Cullerton said the governor declined to go into specifics about what revenue proposals he would support. The package lawmakers presented also included expanding the state sales tax to some services, an idea Rauner campaigned on.
While Cullerton labeled the meeting productive, Madigan issued a statement shortly afterward, saying Rauner continues to insist upon passing his “personal agenda” before discussions on a state budget could happen. […]
Shortly after the meeting, Madigan gathered enough votes to pass a bill to fully fund MAP grants — funded from the state’s general revenue fund. Rauner has said he’ll only approve spending bills if they come from special funds or from cuts. Lawmakers tried to pass a bill to fund tuition grants in February, which Rauner vetoed.
In a statement about the MAP bill, Rauner spokeswoman Catherine Kelly said the governor remains “committed to reaching a balanced budget alongside meaningful reforms in a bipartisan manner.”
Chicago Public Schools told some principals Tuesday to expect total school budget cuts of between 20 percent and 30 percent as the district plans for “the worst.”
The broke district, which has been begging Springfield all year for financial help, plans to chop its own per-pupil contribution by nearly 40 percent, according to proposed budgets given to 15 elementary and high schools. […]
The district says principals have to “plan for the worst — higher class sizes, loss of enrichment activities, and layoffs of teachers and support staff” while waiting for the General Assembly to take action on proposed pension help or revising the state’s funding formula, spokeswoman Emily Bittner said.
On average, schools will feel a budget cut of 26 percent once they receive their state and federal funding, she said. The base per-pupil rate will drop from $4,088 to $2,495 if the proposed budget becomes final. It includes an equivalent cut for charters, too, she said.
“Given the size and complexity of an average school budget cut of 26 percent, CPS has involved principals in the school budget process earlier than ever, and has begun working with example schools to understand how cuts will affect students,” the district said in a statement. “We are also exploring mitigation strategies to lessen classroom impacts. Even as we continue to seek equal funding in Springfield, we must continue to plan for the worst – higher class sizes, loss of enrichment activities, and layoffs of teachers and support staff.” […]
“When we are told by our principal that one out of every five teachers may lose their job, that breaks my heart because we have the most amazing teachers at that school,”said CPS parent Lynn Ankney. “Seeing the waste going on in the district– it’s maddening and it’s got to stop.”
This year’s per-pupil spending reductions were partly mitigated by $41 million in federal funds pulled from programs and reserve accounts the district never specified.
CPS has said in financial disclosure documents that each 5 percent cut to the district’s student-based school budget rates would save about $100 million.
The district projects it will end its current budget year with about $24 million in cash. That amounts to less than two days’ worth of operating expenses.
Union supporters plan to rally at the Illinois Capitol to protest Gov. Bruce Rauner’s calls to change collective bargaining policies.
A coalition of labor groups plans to march by the governor’s mansion Wednesday on their way to the state Capitol.
Rauner is in the midst of prolonged negotiations for a new labor contract with the largest union representing state workers, the American Federation of State, County and Municipal Employees.
The march comes days after he vetoed a measure that would let an arbitrator settle state-employee wages and working conditions if union negotiations stalled.
* Press release…
Thousands of working people from across Illinois will hold a march and rally in Springfield today, Wednesday, May 18, to call on Governor Bruce Rauner and his legislative allies to drop their harmful demands and make Illinois work for all.
WHAT: Men and women representing labor, community, and religious organizations from across Illinois will march and rally to bring attention to the negative consequences Governor Rauner and his anti-worker agenda are having on their families and communities. Speakers will highlight how Gov. Rauner has held funding for critical services hostage until his destructive policy demands are met – demands that would drive down the wages of working people, strip their rights to negotiate together, and make it harder for injured workers to get needed care and compensation.
WHEN: Today, Wednesday, May 18, 2016
The march will begin at 11 a.m.
The rally is scheduled to begin at noon
WHERE: The march will start at the corner of 5th and Washington streets in Springfield, Ill., and will proceed down 5th Street, past the Governor’s Mansion, up 4th Street, and to the Capitol via Capitol Ave. The rally will take place at the corner of 2nd Street and Capitol Ave.
WHO: Rally speakers will include:
· Workers whose livelihoods are under attack by Rauner’s malicious agenda
· Illinoisans who have been impacted by the Rauner-driven budget crisis, including people with disabilities, seniors, students and others
· Michael Carrigan, President of the Illinois AFL-CIO
· Jorge Ramirez, President of the Chicago Federation of Labor
· William McNary, Co-Director of Citizen Action/Illinois
· John Bouman, President of the Shriver Center on Poverty Law
· Pastor T. Ray McJunkins, Union Baptist Church of Springfield
WHY: Governor Bruce Rauner is hurting Illinois, holding the state hostage in order to pass his own divisive agenda that is harmful to working people. Rauner and his allies need to drop their extreme demands and join with working families to make Illinois work for all.
Additional Info: The event is organized by Illinois Working Together and has been endorsed by:
· Action Now
· Alliance for Community Services
· Arise Chicago
· Brighton Park Neighborhood Council
· Chicago Coalition for the Homeless
· Chicago Jobs Council
· Citizen Action/Illinois
· Faith Coalition for the Common Good
· Grassroots Collaborative
· ICIRR
· Illinois Alliance for Retired Americans
· Illinois Main Street Alliance
· NAACP Illinois State Conference
· ONE Northside
· Quad Cities Interfaith
· Sargent Shriver National Center on Poverty Law
· SOAR (Steelworker Retirees)
· The Rainbow PUSH Coalition
