[The following is a paid advertisement.]
While Exelon’s $2.6 BILLION nuke bailout “reeks” as the Quad City Times editorialized, perhaps even more outrageous is that ComEd/Exelon’s so-called “Next Generation Energy Plan” GUARANTEES more than $1 billion in profits on program spending of just $2.4 billion for the first 10 years.
Instead of passing-through expenses with no mark-up for programs like energy efficiency, which has been done for years, NGEP forces ratepayers to borrow from ComEd and then pay guaranteed profits with no risk. It’s like a massive statewide predatory lending scheme.
- Energy Efficiency: ComEd earns $804 million in guaranteed profits over ten years (NGEP presentation p12).
- Solar Rebate: ComEd earns $113 million in guaranteed profits over ten years (NGEP presentation p17). If a person or business invests their own money in solar panels, ComEd receives guaranteed profits on part of that investment.
- Microgrids: ComEd earns $106 million in guaranteed profits over ten years (applied rate of return from other programs to Microgrid spending).
In total, ComEd/Exelon’s bailout bill is a $7.74 BILLION RATE HIKE over ten years.
ENOUGH IS ENOUGH. JUST SAY NO TO THE COMED/EXELON BAILOUT.
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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* Veto message…
To the Honorable Members of
The Illinois Senate,
99th General Assembly:
The State has gone too long without a balanced budget. State vendors and service providers have gone too long without payment. We need real solutions to our fiscal problems, not unfunded, empty promises. So today I return Senate Bill 2046 and implore the General Assembly to pass a complete, balanced budget for Fiscal Years 2016 and 2017.
The Constitution requires the General Assembly to pass a balanced budget, but the General Assembly continues to abdicate that responsibility.
A balanced budget is not just a constitutional requirement or the right thing to do for taxpayers; it is the only possible way to manage State government over the long-term. Unlike the federal government, the State is unable to sustain deficit spending over multiple years without significantly impairing its operations. Case-in-point: the State is suffering from a cash-flow crisis from years of deficit spending, leading to a current bill backlog of more than $7 billion. The State is months or even years late in paying vendors and service providers, particularly from general funds.
Without a balanced budget, an appropriation is just an unfunded, empty promise – a check written from an over-drawn bank account.
Social service agencies and providers need real funding, not empty promises. Social services are being squeezed out by State debt and pension obligations, personnel costs, and other mandated spending. The only way to ensure that social services are fully funded is to pass a balanced budget, where spending is in line with revenues.
Senate Bill 2046 is an empty promise. The bill purports to appropriate $3.89 billion, including more than $3 billion in general funds that the State does not have, for higher education and social service providers, but provides no source of funding. Students, universities, community colleges, social service agencies, and our most vulnerable residents need real solutions and real funding, which Senate Bill 2046 does not provide.
Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 2046, entitled “AN ACT concerning appropriations”, with the foregoing objections, vetoed in its entirety.
Sincerely,
Bruce Rauner
GOVERNOR
* The bill passed the Senate with a strong veto-proof majority. It only received 65 votes in the House, which is six shy of an override. Three Democrats were absent. I suppose the Democrats will now try to flip one or two of their own votes and hope that a college-town Republican or two will cave. But that hasn’t worked in the past.
…Adding… Illinois AFL-CIO President Michael Carrigan…
“Gov. Rauner has shown, once again, that he puts politics above people. His veto keeps vital services like education, mental health services, addiction treatment, and grants for low-income college students from desperately-needed funding. His veto of SB 2046 prolongs and exacerbates the pain he created in the first place by forcing the budget crisis. He says one thing, does another, and then blames everyone else. Rauner is playing political games and people are getting hurt.”
…Adding More… SEIU Healthcare Illinois President Keith Kelleher…
“The governor’s veto of Senate Bill 2046 is more evidence this governor wishes to continue the hostage situation he has caused in Illinois. He has spent recent days blaming everyone but himself for holding up a budget until he gets his union-busting demands that have nothing to do with saving taxpayer dollars and everything to do with weakening rights and protections for Illinois’ working families and driving down wages and benefits for ALL workers.
“The governor needs to stop the blame game and do what’s right. We have seen too many suffer for his misplaced priorities.”
…Adding Still More… Statement from John Patterson, spokesman for Illinois Senate President John J. Cullerton…
“It’s disappointing that the governor chose to veto the entire proposal. The governor’s veto underscores the need for immediate action on the balanced, bipartisan emergency budget for human service providers that has been on his desk for nearly a month. His administration identified the dollars. Nearly $700 million in overdue payments could go to businesses as soon as he signs it.”
“Despite today’s veto, the Senate President remains optimistic that the governor will do the right thing and sign the balanced, bipartisan emergency budget for human service businesses. We would encourage him to do so quickly. These businesses, their employees, clients and families have waited long enough.”
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Campaigning like children
Friday, Jun 10, 2016 - Posted by Rich Miller
* From a Democratic Party of Illinois e-mail entitled “Why Do Republican Senators Keep ‘Joking’ About The President’s Death?”…
SHOT: Republican Senator David Perdue Jokes About Praying For Obama’s Death [Daily Beast, 6/10/16]
CHASER: Republican Mark Kirk Jokes He Supports A “Shoot-On-Sight” Order For Obama. [Politico, 6/18/08]
BOTTOM LINE: No Matter What These Republican Senators Think, These Jokes Aren’t Funny.
Um, actually, no.
Click the link provided and it’s clear that Kirk made what was then a fairly common mistake. He wasn’t joking about killing the guy.
* From Progress Illinois at the time…
Since Barack Obama stepped onto the national stage, public officials from John Ashcroft to Ted Kennedy to Mitt Romney have mistakenly referred to him as “Osama.” Today, Mark Kirk added himself to this illustrious list. However, I think it goes without saying that he picked a most inopportune context.
Listen to Kirk express his support for a policy “where if we see Obama there’s a shoot-on-sight order”
Obviously, Kirk meant to say “Osama.” But geez … talk about a gaffe.
* The audio…
* The transcript…
DON WADE: In fact, yesterday in a conference call, Barack Obama’s advisers were asked, “If Osama bin Laden were caught, should he get to challenge his detention in U.S. courts?” And the advisers said that — should that right to challenge detention that they get at Gitmo based on the Supreme Court ruling, should that be applied to bin Laden? — and Obama’s advisers said, “Yes.”
KIRK: Yeah, and I would much rather have a policy where if we see Obama there’s a shoot-on-sight order.
DON WADE: Well, okay. I’m with you, but I don’t know whether that’s going to make 67 — well it might –
ROMA: I don’t think Osama bin Laden — no one ever sights him.
* The Kirk apology at the time…
“On Wednesday, I misspoke when talking with a local Chicago radio program regarding the current presidential campaign of Sen. Barack Obama as well as the status of our anti-terrorism efforts against Osama bin Laden. During the course of this conversation, I mistakenly referred to ‘Osama’ as ‘Obama.’ After being alerted to my mistake, I apologized to Sen. Obama for my misstatement and will take extra care to make sure I do not make such a mistake again.”
…Adding… IL GOP Chairman Tim Schneider…
“The Democratic Party of Illinois attack on Senator Kirk is baseless and reprehensible. They should immediately apologize and retract the statement. Politics is a tough business, but there’s no place in politics for insinuations of the sort that the DPI made today.”
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Question of the day
Friday, Jun 10, 2016 - Posted by Rich Miller
* And here it is…
Gov. Bruce Rauner Announces Staff Transitions
Richard Goldberg Named Chief of Staff
CHICAGO - Governor Bruce Rauner announced today that Mike Zolnierowicz will transition from the Administration at the end of June. Richard Goldberg will be promoted to Chief of Staff.
“Z is a tremendous leader and a great Chief of Staff. He has done an amazing job leading our team through some very difficult circumstances,” Gov. Rauner said. “I am grateful that he will remain a close ally and adviser. I look forward to continuing to work with Z in the months and years ahead.”
Effective July 1, Richard Goldberg will assume the role of Chief of Staff.
“No one will work harder to fix the State than Richard. He is extremely smart, loyal and relentless,” Rauner said. “Richard has my full support and trust. I know he will do a great job in his role.” […]
About Richard Goldberg
Rich Goldberg currently serves as Deputy Chief of Staff for Legislative Affairs and Strategic Initiatives in the Governor’s Office. Previously, Rich served as Deputy Chief of Staff to U.S. Senator Mark Kirk of Illinois. A former National Security Fellow at the Foundation for the Defense of Democracies and a former Congressional Scholar at the Foreign Policy Initiative, Rich also serves our country as a Navy Reserve intelligence officer holding the rank of Lieutenant. In 2011, he deployed to Afghanistan as the senior intelligence officer for Electronic Attack Squadron 209 where he helped plan more than 200 air combat operations. For his service at home and overseas, Rich has been awarded two Joint Service Commendation Medals, a Joint Service Achievement Medal, a Navy Achievement Medal, the Afghan Campaign and NATO Medals, and other various decorations. Raised in Skokie, Rich attended Solomon Schechter Day School and Ida Crown Jewish Academy before earning a Bachelor of Science in Journalism from Northwestern University. He is also completing a Master’s in Public Policy and Administration at Northwestern.
* Our new overlord…
* The Question: Caption?
…Adding… Heh…
Harmon is the guy who coined the phrase “grass bowl” when describing Goldberg.
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* I received this press release yesterday from a group calling itself Environmental Progress Illinois…
Over the last few months we’ve seen growing recognition by Democratic political leaders that efforts to close nuclear plants prematurely are disastrous for the climate. Hillary Clinton said efforts to prematurely retire nuclear plants “put ideology ahead of science and would make it harder and more costly to build a clean energy future.” Energy Secretary Ernie Moniz said, “We’re supposed to be adding zero-carbon energy sources not subtracting them.” And Senator Cory Booker endorsed extending the nuclear the same subsidy wind energy receives: “I know the challenges global warming [presents]… We’ve got to support the existing fleet.”
But while a growing number of Democrats have come to see the importance of fair and equal treatment of clean energy sources to solve climate change, a handful of elected officials remain ideologically opposed to nuclear power — even as they advocate subsidies for wind and solar.
Case in point is Illinois Attorney General Lisa Madigan. Last month Madigan helped kill efforts in the Illinois legislature to support two nuclear plants that are suffering from being excluded from federal subsidies and the Illinois state Renewable Portfolio Standard — both of which Madigan supports. “This proposal would force consumers to pay more only to boost the companies’ profits further,” said Madigan.
Democratic legislators in Springfield were spooked by Madigan’s comments, and the bill died. Days later, Exelon announced it would close the two plants, which would be replaced by natural gas that would increase carbon emissions the equivalent of adding two million cars to the road.
And yet, Madigan has long advocated subsidies for wind and solar and has enjoys a close relationship relationship with wind and solar advocates — some of whom are supported by the very same natural gas, wind and solar corporations that would benefit from the legislation she endorses.
Last August, Madigan advocated for for “clean jobs” legislation that includes large subsidies for wind and and solar — subsidies that would be paid for by higher rates paid by Illinois ratepayers. The so-called “clean jobs” coalition members includes the Environmental Law and Policy Center, which accepts money from natural gas company Invenergy, as well as solar and wind companies that stand to benefit from the closure of Illinois nuclear plants.
And last February, Madigan joined a conference call on the clean power plan that was arranged by the Sierra Club — an organization working to shut down nuclear plants in Illinois and California and replace them with natural gas and renewables. In 2012, the Sierra Club was forced to admit that it secretly took $26 million from natural gas interests. Recently, the Sierra Club has been urging its members to buy solar panels from Sungevity, which turns around and gives $1,000 per homeowner signed up to the Sierra Club.
Notably, if Quad and Clinton are closed, the increased emissions will be one-third of total emissions Illinois is supposed to reduce under the Clean Power Plan.
Madigan needs to address the inconsistency of her position by making a clear statement about why she can justify subsidies for solar and wind but not for nuclear. If she’s ideologically anti-nuclear, as she appears to be, then she needs to explain why. If she’s not, then she needs to explain her double standard. The 2,000 Clinton and Quad workers at risk of being laid off, and the people of Illinois more broadly, deserve an explanation.
I was a bit surprised to find out this group is backed by a couple of Pritzker family members. So the whacks at Madigan, the Sierra Club and the pretty widely respected ELPC were interesting.
* I asked the AG’s office for comment…
We have consistently supported the development of clean energy as a way to reduce carbon emissions and grow our economy. But we’ve also always argued that as the state takes steps to comply with the Clean Power Plan, we must ensure that consumers are treated fairly.
The claim that Exelon’s “nuclear plants … are suffering from being excluded from” subsidies is false. So is the allegation that supporting the development of wind and solar technology while resisting a profitable company’s demand for a state bailout is a “double standard.”
Exelon’s nuclear plants have benefitted from two rounds of Illinois subsidies already. First, Illinois electricity ratepayers paid all of the construction costs for the Illinois nuclear plants. Illinois consumers then paid again when Exelon and others convinced Illinois lawmakers to create a competitive market for electricity and consumers were charged for additional costs associated with the transition to a deregulated supply market. Exelon’s current bailout demand would amount to a third round of subsidies for these plants.
Supporting emerging energy technology – in this case the development of wind and solar technology through the renewable energy portfolio standard – is nothing new. Nuclear power received much greater support when the plants were being developed.
We do not want to see the loss of any Illinois jobs. But the notion that the only way to preserve jobs is to boost Exelon’s profits is false – and ignores Exelon’s and ComEd’s role in creating the current regulatory structure. When electricity costs were higher, Exelon and ComEd pushed for a competitive market for electricity generation, without state regulation. As a result, beginning in 2005, Exelon Generation has posted profits every year, at times over 30 percent a year. But now that natural gas and progress on energy efficiency efforts have driven down electricity prices, Exelon is claiming that some individual plants are not profitable and demanding that Illinois increase consumer charges to protect it from the competitive market.
Notably, Exelon is not offering to pay back the subsidies if the plants once again generate profits. And its supporters never mention that Exelon is a profitable company that could choose to use the company’s profits to preserve the two plants that Illinois consumers have already paid for. What is more, at the same time Exelon has asked Illinois lawmakers for a subsidy, it has successfully encouraged federal ratemaking officials to increase capacity charges, resulting in an additional $264 million in Illinois revenue for this year alone.
Finally, while we are not advocating for nuclear plant closures, it’s false to claim that lost nuclear generation would necessarily be replaced going forward by Illinois gas and coal plants. It is important to remember that Illinois is a net exporter of electricity, and if Illinois nuclear plants are needed to maintain a reliable source of electricity, then federal operators of the power grid will work to prevent their closure. In addition, wind and solar are cost competitive with gas and coal and are only getting cheaper. Encouraging renewables and energy efficiency will allow Illinois to meet our Clean Power Plan obligations cost effectively and without putting ratepayers on the hook to further pad the bottom line of a profitable company.
There are two points in there to think more about. The first is the long history of subsidizing Exelon’s nuke plants. And second is that we produce lots more electricity in this state than we consume.
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It’s just a bill…
Friday, Jun 10, 2016 - Posted by Rich Miller
* After reading this story, I wasn’t sure about what the problem was…
Governor Bruce Rauner is reviewing a new bill that would punish tow truck drivers who pull up behind disabled vehicles to solicit business.
Often, a car is towed away, even before police arrive to take an accident report.
A bill passed by the General Assembly would make it a felony — with prison time — for a tow truck driver who stops at an accident scene without being called by the car’s owner.
* But when reading the full story at the Tribune, I realized that this happened to my car once after an accident in Chicago a few years ago…
“This is a major step forward as we attempt to put limitations on the rogue tow operators that have plagued many areas of the state,” Joe Wehrle, chief executive of Des Plaines-based nonprofit National Insurance Crime Bureau, said in a statement. “Motorists should not be subject to predatory towing practices that result in outrageous charges and tactics, such as holding cars hostage in salvage yards until the owner or their insurance company pay what amounts to a ransom to get the vehicle returned.”
Yep. Holding my car hostage is a good way to describe what they did. It was ridiculous and I couldn’t believe it was legal.
So, hopefully, this bill will be signed into law and then accomplish what it’s supposed to do.
* In other news…
A proposal introduced this week would ban daily fantasy sports in Illinois.
State Rep. Scott Drury, a Highwood Democrat who has been a vocal opponent of a plan to legalize and regulate the games, sponsored a measure that would make operating games such a crime. Seasonlong fantasy contests would remain legal.
The debate over fantasy sports betting sites, such as those operated by FanDuel and DraftKings, has raged on for months. An industry-supported measure was making progress in the General Assembly, but opposition from casinos and other gambling interests and an allegation of unethical behavior by a lobbyist plagued the proposal and stalled it at the end of the spring legislative session. Drury says he’s concerned regulations aren’t tough enough.
“There’s been no real willingness from the industry to abide by regulations,” Drury said.
* Meanwhile…
Expect the governor’s office to be sent about 400 pieces of legislation in the coming days and weeks. Right now there are only eleven bills on his desk. […]
Senate President John Cullerton’s spokesman, John Patterson, said lawmakers are managing the workload to avoid flooding the governor’s desk all at once. Patterson also said they send bills they consider priorities, including two that would increase state pay for home and child care workers to $15 an hour.
“We look at things that are trying to identify a lot of our priorities, things that would help working families,” Patterson said. […]
[State Rep. Jeanne Ives, R-Wheaton] said her government transparency bill is also a priority: “[T]here’s currently an injunction against a school board that wanted to delete closed session minutes that my bill is specifically written for so that a newly elected trustee can have access to closed session minutes.”
That Illinois Policy Institute radio network article was posted a couple of days ago. There are now 34 bills on Rauner’s desk.
* Related…
* Deadline Extended for Numerous Bills: House Speaker Michael Madigan, D-Chicago, extended the deadline to June 30 for more than 80 House and Senate bills. Madigan spokesman Steve Brown said it’s normal practice by the legislature to extend deadlines. Among the bills are appropriations for higher education, the auditor general’s operations and more.
* A look at bills Illinois lawmakers passed this session
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Haven’t had an Oscar the Puppy pic in a while
Friday, Jun 10, 2016 - Posted by Rich Miller
* As I mentioned yesterday, my brother Devin and his daughter Isabel are visiting. We all went out for a long dinner last night and they’re heading to the Lincoln Museum today.
From Devin’s Facebook page: “Oscar makes for a great alarm clock for waking up sleepy daughters.” Heh…
I asked Izzie how she slept. “Not long enough,” she replied.
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* NBC 5…
Chicago Public Schools can’t yet say if there will be a summer school program. In the past, thousands of students have participated. But for this summer, the current website doesn’t list any dates or details.
Oy. More kids in harm’s way.
* According to CPS, last summer’s program cost $16 million…
While the city looks to state lawmakers, the new head of the Principals Association Troy LaRaviere blames irresponsible spending.
“We have almost 40 percent more schools and only two percent more students,” LaRaviere said. “Who does that? Who spends money that recklessly?”
* But did all those new schools (charter and otherwise) provide the competitive push that neighborhood schools needed? The Trib thinks so…
A scant 16 years ago, Chicago Public Schools students were just as likely to drop out of high school as they were to graduate. Half finished, half didn’t. An appalling coin flip.
Today an astonishing turnaround gains steam: Almost 3 in 4 CPS students graduate, and that number is projected to rise, according to a new study from the University of Chicago Consortium on School Research. And, no, these higher rates are not the result of setting the academic bar lower, the study says.
CPS has boosted graduation rates for students of all races and income levels. That’s more than a measure of success at elite and charter schools. Neighborhood schools are now close to matching the traditionally higher graduation rates at charter schools. In other words, competition works for CPS. Big time. […]
For years, graduation rates at neighborhood schools lagged charters by 10 percentage points or more. But the neighborhood schools — non-charter and non-selective enrollment schools as defined by the consortium study — have closed that gap. Critics have long complained that charters siphon off the best students, leaving neighborhood high schools to languish. But the consortium research suggests the opposite: Innovative charter competition spurs all schools to work harder and smarter, to educate students better.
The full report is here.
It would be nice to hear the governor acknowledge this very real progress.
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Because… Madigan!
Friday, Jun 10, 2016 - Posted by Rich Miller
* Yet another silly press release from the ILGOP…
Gary Forby Says Legislature Has “Nothing to Do”
Waiting on Orders from Mike Madigan
Despite no budget and no funding for schools or prison, Senator Gary Forby yesterday said that the legislature has nothing to do and essentially admitted he is waiting on orders from Speaker Mike Madigan.
In response to a question about Mike Madigan canceling Wednesday’s planned House session, Forby responded “I think he [Madigan] thought we’d have something to do, but you know, we don’t have anything to do.” (45 sec)
“People are suffering right now in Illinois. Parents are rightly worried that summer school programs will be canceled and that schools may not open in time in the fall. Our prisons need funding to ensure that they continue to operate. It is outrageous that Gary Forby is waiting on orders from Mike Madigan to do anything about this. Republicans have proposed two bills to fund schools, government services, and prisons. Gary Forby should get back to work and vote on them.” - Illinois Republican Party Spokesman Steven Yaffe
* First of all, can somebody please tell me how Forby’s quote means he’s waiting on orders from Madigan? Anybody? Bueller?
Secondly, I listened to Forby’s interview. Here’s what he actually said…
“I think he thought we’d have something to do, but you know, we don’t have anything to do. President Cullerton said ‘I’m not going to call you back until the leaders get together and come up something.’”
Forby went on to say that he believed neither Madigan nor Rauner want a budget before January.
And as far as “getting back to work,” Forby also said he’s in Springfield three days per week for bipartisan working group meetings. But he said the progress is so slow that it could be January before they do anything.
* Basically, this is just an attempt to pair the name “Forby” with the name “Madigan.” It doesn’t actually have to make sense, as long as they put those two names together and post it on the Interwebtubes for all to Google, or plant it in a “friendly” media outlet and then use it in a mailer.
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Brinksmanship over operations
Friday, Jun 10, 2016 - Posted by Rich Miller
* As we’ve discussed before, the governor is accusing Speaker Madigan of creating a crisis in order to leverage a budget deal (and a resulting tax hike). Madigan’s path to this crisis is withholding approval of any appropriations to fund government operations. So, when Team Rauner claimed that the human services stop gap bill had “drafting errors” because the legislation didn’t appropriate any money to administer programs, the HDems countered by saying they had done it deliberately.
The bill overwhelmingly passed both chambers and Madigan wants Gov. Rauner to sign it…
Madigan said of a bill that is sitting on Rauner’s desk and would provide a stopgap measure to fund social services. “He refuses to sign that bill because he continues seeking a state of crisis in Illinois.”
Rauner on Wednesday defended his decision not to sign that bill, saying it doesn’t have “essential services in it.”
“That bill is designed to still create a government crisis,” Rauner said.
The measure, approved by both the Illinois House and Senate would have authorized spending about $450 million from a human services fund, and another $250 million from special funds to be spent on items such as foreclosure prevention, and affordable housing.
* Along those lines, Illinois Department of Corrections Director John Baldwin recently penned an op-ed about his agency’s rapidly approaching crisis…
Without a budget, the Corrections Department will be hard pressed to continue with critical reforms that improve operations and outcomes, increase safety, and enhance programs aimed at helping offenders be successful once they return to communities across this state. Furthermore, we will be severely challenged to meet our legal obligation to provide constitutionally adequate care to the men and women in our custody who have been diagnosed with mental illness.
Lack of a balanced budget or stopgap budget will impact the department’s ability to feed offenders, keep the lights on, run water and fulfill other day-to-day duties. Our vendors, including many mom-and-pop businesses, that provide food supplies, fire equipment examination services, building repair parts and maintenance services, depend on our payments. These local businesses will continue to suffer without payment and will eventually have to pull their services. That could cripple the department in a matter of days.
As subscribers know, the Rauner administration has been trying to pry loose a stopgap for DOC and some other agencies since April. No luck so far.
I figure a federal judge will probably have to step in if DOC can’t feed its prisoners, or if water, sewer or lights are shut off.
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A look at a non-budget future
Friday, Jun 10, 2016 - Posted by Rich Miller
* Let’s revisit Comptroller Munger’s press release from yesterday so that we can take a quick look at what could be ahead if there is no new budget…
While court orders, consent decrees and statutory authorization of some payments will continue, Munger noted that $23 billion in existing spending for schools, 911 call centers, domestic violence shelters, federally-funded social and human services and higher education will stop next month without new legislation. In addition, businesses and organizations that have signed contracts and provided services to the state this year face the very real possibility of having to go to Court to be paid in the absence of a stopgap budget. […]
Compounding Illinois’ challenges, Munger noted businesses that have provided goods and services to the state in good faith in the current fiscal year will continue to go unpaid without legislation in Springfield. Typically, unpaid vendors would go before the Court of Claims to compel payment, but without an appropriation that Court is not an option. As a result, the state faces the possibility of a wave of costly lawsuits.
* The 82 social service providers which sued the state for not honoring their contracts have a court hearing next month…
Attorneys this week set a July hearing for the lawsuit, which Diana Rauner’s group joined weeks after it was first filed.
* I asked the attorney general’s office yesterday what happens to the St. Clair County court order regarding state employee pay when the new fiscal year begins…
The order reads: “…the court finds that this order authorizing payment is applicable to all other state employees [in addition to union members] at their normal rates of pay until further order of this court.”
So, until the court revisits this topic, workers will continue to be paid after June 30th.
* But lots of other things won’t get any funding if there is no budget deal by the end of the fiscal year. Back to the Munger release…
Munger highlighted four budget bills that were passed by the General Assembly and signed by the Governor that will sunset in the new fiscal year. The legislation authorized spending that included:
* $13.7 billion for K-12 education
* $3.1 billion that funded local governments, 911 call centers, domestic violence shelters, lottery winners and other programs and services
* $5.4 billion in federal spending including the Low Income Energy Assistance Program, child nutrition programs, HIV prevention and home-delivered meals for seniors
* $600 million for colleges, universities and MAP grants
Discuss.
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* Greg Hinz…
Faced with a revolt on its board and a deal with the city to add hundreds of acres of new park spaces, leaders of Friends of the Parks are offering to drop the civic group’s opposition to locating the proposed Lucas Museum of Narrative Art on the lakefront.
The action could keep the $700 million prize here and not in San Francisco or Los Angeles, where museum patron George Lucas has threatened to move it. But the facility still could face obstacles.
Friends is expected to address the situation today, but I’m told there was a contentious meeting two days ago when the group’s attorney, Thomas Geoghegan, warned that the group could lose its case in court, and its board voted 12-4 to seek a negotiated settlement.
According to a source with first-hand knowledge, though group Executive Director Juanita Irizarry and Chair Lauren Moltz felt otherwise, a majority of the board is interested in negotiating a deal in which it drops its court case, which so far has blocked the museum, if the Emanuel administration agrees to provide more park space elsewhere. If the group loses the city’s request for an order of mandamus in the 7th U.S. Circuit Court of Appeals, it would lose its leverage to achieve even that.
Thoughts?
*** UPDATE *** Tribune…
“Contrary to recent reports, our board remains fully united on the preservation of our lakefront and ensuring that the public trust doctrine is not ignored,” Friends of the Parks Board President Lauren Moltz and Executive Director Juanita Irizarry said in a statement. “We do believe that the Lucas Museum has a place in Chicago for all to enjoy, but not at the expense of one of our most precious public resources. We have always said we were open to discussions. Anything else you hear is rumor and speculation. We are not dropping the lawsuit.” […]
“We’re absolutely continuing our lawsuit, and we have no plans to drop it,” said Tom Geoghegan, the group’s lawyer. “We think we have a good case.”
Geoghegan also said the group remains opposed to the city’s alternate plans to build the museum on the site of the McCormick Place East convention center.
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* From Senate Democratic spokesman John Patterson…
Rich,
Yesterday, the New Jersey Supreme Court ruled that the state can freeze retirees’ cost-of-living adjustments.
The New Jersey Supreme Court ruled on Thursday that retired public employees do not have a contractual right to receive increasing cost-of-living adjustments, a decision that is expected to save the state billions of dollars.
Governor Chris Christie’s administration suspended the COLA payments, which are tied to inflation, as part of reforms in 2011 aimed at curtailing the ballooning cost of public pensions.
I asked our pension expert Eric Madiar to weigh in.
The short answer is that the Illinois Constitution is different than the New Jersey Constitution.
Here’s Eric’s summary:
The New Jersey court held that because of the New Jersey Constitution the legislature lacked the power to create a binding contractually enforceable pension right. The creation of such a right was tantamount to taking on state debt in violation of the state constitution. The court stated that the legislature can only take on state debt and commit itself to the needed appropriations to fund that debt with voter approval. Since that did not occur when the pension right was passed, it was not a binding promise when the legislature enacted it.
…Adding… More from Patterson…
Eric re-read the opinion this morning and offers this addendum noting that the New Jersey court looked at what the Illinois court had done and drew a distinction between the two constitutions.
The New Jersey Supreme Court held that COLAs are not protected pension benefits and are distinct from the pension annuity that a retiree is entitled to receive under New Jersey pension law. The New Jersey court focused on the lack of clear and unmistakable statutory language conferring COLA increases as a protected pension benefit. This is unlike what occurred in Illinois where the Illinois Supreme Court found that COLAs are part of the protected benefits that cannot be unilaterally changed. Indeed, in footnote 7 of the decision, the New Jersey Supreme Court notes how the statutory system regarding COLAs in Illinois is different from New Jersey.
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* Subscribers were told about this late last night. It’s been brewing for weeks…
Rauner chief of staff Mike Zolnierowicz will vacate his government position by July 1 and act as the chief party political strategist as Republicans look to gain legislative seats and emerge from their superminority status in both chambers. The decision is expected to be announced today.
Taking his place as chief of staff is Richard Goldberg, a deputy governor of legislative affairs who in the past has had a rocky relationship with rank-and-file Democrats. Goldberg, however, has been part of recent leaders’ meetings and budget discussions […]
Zolnierowicz’s change is another sign that the two sides are gearing up for an all out war this November, as Republicans look to pick up seats and keep Illinois House Speaker Mike Madigan from expanding his already substantive power base. The odds are with the Democrats in November, given Illinois’ makeup and election year voter tendencies typically favor Dems. However, Rauner has already dispensed $5 million to the Illinois Republican Party, in an effort to snag seats from Madigan’s majority. […]
Zolnierowicz is not expected to return to his government post after the November elections, instead looking toward Rauner’s reelection campaign.
The legislative Democrats have a worthy campaign foe and the Prince of Snarkness is now chief of staff.
Interesting times.
*** UPDATE *** Greg Hinz says Governor Rauner is girding for war with his choice of Richard Goldberg as chief of staff…
Rauner aides declined to speak on the record before the announcement but say Goldberg is being unfairly slammed.
“Goldberg has been involved in budget discussions from the beginning, trying to find creative solutions to difficult issues,” said one senior Rauner hand. And, as chief of staff, his role will be different from that of lobbyist, that source added.
But another conceded that, with Springfield stalemated, there is no reason not to play hardball. […]
“After 18 months, Democrats have no intention of working things out,” my source said. “The speaker wants to hold schools hostage to get a higher tax rate.”
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