* Steve Schnorf and I were talking about this old boy the other day…
Sleep in a hollow log
Steve is still hanging in there like a champ. If you know him and have been thinking about visiting him, I’m sure he’d love to see you. He’s at HSHS (St. John’s) in Springfield in the hospice section on the 11th floor. I’ll be there tomorrow.
Illinois’ 11 Democratic congressmen have signed a letter to Gov. Bruce Rauner demanding that he restore funding to domestic violence shelters.
Rep. Cheri Bustos initiated the letter sent Friday.
It sprung from an Associated Press report that domestic-violence program funding was omitted from a temporary budget last summer. The Department of Human Services waited nearly six months to alert providers. Sojourn Shelter and Services in Springfield is among the programs that lost funding.
As was recently revealed in an Associated Press article, Secretary James Dimas failed to inform domestic violence programs across the state that they would, once again, be running out of state funding. To add insult to injury, Secretary Dimas waited until just two weeks before temporary funding expired to inform domestic violence programs about this failure. Asked why they would wait until the 11th hour, Secretary Dimas claimed it was just “some confusion.”
Um, that wasn’t the issue. The problem, as outlined in the AP story, was that the funding wasn’t included in the stopgap budget at all, which covered the first half of this fiscal year. Providers who thought the state was once again behind in its payments found out from DHS in December that they were in line for no money whatsoever.
If you’re gonna go to the trouble of getting a letter signed by every Democratic member of the delegation, get it right.
Human Services spokeswoman Meredith Krantz called the letter “hyper-partisan” and unhelpful. She says the authors should urge Democrats and Republicans in Springfield to agree on a budget solution. The state has been without a budget for nearly two years.
Illinois Senate Republican leader Christine Radogno says the chamber needs to vote by Feb. 28 to approve its still-evolving bipartisan “grand bargain” to end the state’s historic stalemate or go home and let Democratic House Speaker Michael Madigan decide how to move the state forward.
Radogno, speaking on the “Steve Cochran Show” on WGN-AM 720 a day after GOP Gov. Bruce Rauner’s budget address, said she will be working with Democratic Senate President John Cullerton “about things we might be able to take from the governor’s speech and incorporate into our program so it’s something that he could sign.”
“I’m hoping that we will be able to vote on this on Feb. 28, when the Senate comes back (from a break next week). The urgency here is critical. We have to get this moving,” the Lemont Republican said. “If we don’t get this moving by the 28th, we might as well just go home and then at that point, Mike Madigan can figure out what he’s going to do. This is the only game in town.”
Your office recently informed the Illinois Department of Central Management Services (“CMS”) that, effective immediately, we must stop relying on the State’s General Revenue Fund (“GRF”) to pay approximately 400 CMS employees. Instead, you directed us to pay this group of employees out of certain other limited state funds administered by CMS, namely the Facilities Management Revolving Fund and the State Garage Revolving Fund (together, the “Revolving Funds”).
We are concerned that your office’s direction may put the Comptroller out of compliance with the St. Clair County decision ordering you to continue processing payroll, regardless of the fund. And, of course, we need to make sure that this group of employees—indeed, all employees—continue to get paid for their important work. I write to flag these issues for you and clarify that our understanding of your position is correct.
It is important to keep in mind what these Revolving Funds are intended to support. The limited cash in the Revolving Funds must be used to cover critical state services such as leases and bond payments on facilities, utilities, maintenance of the State’s vehicles, and fuel-related costs. If landlords evict the State from its facilities or if local utility companies shut off service, citizens throughout Illinois could find themselves unable to go to State offices to apply for critical benefits and services that they are legally entitled to receive, such as medical care or child support. If the State cannot properly maintain its vehicles, including those by used by the State Police for patrolling our roads and highways, the Department of Corrections for transporting inmates, or the Department of Transportation for snow removal, the general welfare of the public may be placed in jeopardy.
The State Garage Revolving Fund also is the source of critical fuel-related payments that keep state vehicles on the road, as well as fund the maintenance of Department of Human Services’ vehicles that transport our most vulnerable citizens for medical treatment. By forcing CMS to drain the Revolving Funds, your office is putting those critical health and safety functions of the State at risk. And make no mistake, shifting payroll to these funds ensures they will be depleted long before the fiscal year is over. We have determined that, if payroll is included, the cash projected to be in Revolving Funds through the end of this fiscal year is not sufficient to cover all of the above critical services. Because these funds get the bulk of their revenues from GRF payments required to be made by the agencies that CMS serves, in the current budget impasse, those agencies do not have sufficient GRF or other available appropriations to make complete and timely payments into these CMS Revolving Funds.
This is yet another reason why keeping your comptroller happy is so important. If she really is trying to drain those special revolving funds down to nothing, that would indeed cause big problems for the administration.
However, in a response to CMS, Mendoza’s office said it believes it is complying with the intent of the General Assembly to pay workers from the revolving funds this fiscal year. During the previous fiscal year, it said, more than $32 million from the funds was spent for payroll.
“Furthermore, our records indicate that CMS currently has active payroll appropriations of over $32 million from these funds for FY 2017 in which no expenditure has yet to be expended for payroll purposes,” Mendoza’s office said in a letter to CMS.
Mendoza’s office also said it is juggling payments for a wide range of state services. Illinois’ bill backlog has continued to climb, and some vendors have waited months for payments because the state isn’t collecting enough in taxes to pay all of its expenses.
“I hope you can understand our concern as we try to make payments from the extremely limited general revenues funds that all efforts to utilize existing resources from other state funds should be examined,” said Kevin Schoeben, assistant comptroller. “We are prepared to work with you to ensure that no critical state services are disrupted going forward. However, please also understand that the Office of Comptroller is tasked with the responsibility of addressing the continuity of critical services across the state of Illinois to the extent our limited state funds allow.”
Her point is basically she’s looking under couch cushions for change to make payroll. That’s understandable as well.
The governor’s office says the employees were formerly paid out of the revolving funds, “but were moved to GRF prior to the stop gap budget passage due to low fund balances.”
Either way, the governor’s people say, there are no appropriations now because the stopgap has expired and the still-valid court order allows the comptroller to pay from GRF, so they believe the comptroller should do so.
*** UPDATE 1 *** I’m hearing that the issues in the lawsuit have been so whittled down that this settlement will be very narrow. So, likely a false alarm. We’ll know more at about 4:30 this afternoon.
The Urban League raised critical and complex issues, challenging the State’s regressive methods of funding public education and its impact on the poor. We applaud the Urban League for its efforts.
Neither the Urban League case nor its settlement affects the lawsuit filed by CPS on Tuesday. The CPS case challenges Illinois’ discriminatory funding, which creates two separate and massively unequal systems of funding public education: one system for the predominantly white school districts in the rest of Illinois, and a separate system for CPS, whose African American, Hispanic, and other children of color make up 90 percent of Chicago students.
The State’s discriminatory system has shortchanged CPS by approximately $500 million in this fiscal year alone. CPS will continue to aggressively pursue its lawsuit.
[ *** End Of Updates *** ]
* The Illinois State Board of Education put out an agenda today for its upcoming Feb. 22nd meeting. Check out this item near the bottom…
Settlement Agreement in the Matter of the Chicago Urban League, et al. v. Illinois State Board of Education
I’ve put in calls to the State Board of Education, the Chicago Urban League and others and haven’t heard back yet. The State Board of Education’s chairman, James Meeks, hasn’t returned two calls but did say “Yes” via text when I asked if the ISBE was settling the lawsuit.
On August 20, 2008, plaintiffs in Chicago Urban League v. State of Illinois filed a complaint that asks the court to declare the state’s current school funding scheme unconstitutional. Plaintiffs claim that the education finance system is in violation of the education provision of the state constitution which guarantees all students “a high quality education” and that it also discriminates against families based on race in violation of the Illinois Civil Rights Act of 2003.
On April 15, 2009, the Circuit Court of Cook County held that plaintiffs’ claim that the state education finance system has the effect of providing substantially lower dollar amounts per student in “majority-minority” school districts states a valid cause of action under the Illinois Civil Rights Act and that the case may therefore proceed to trial. Since the U.S. Supreme Court’s 2001 ruling in Alexander v. Sandoval, 532 U.S. 275, individuals can not file discriminatory impact claims under Title VI of the 1964 Civil Rights Act in federal court, but a private right of action is available under the Illinois Civil Rights Act, the provisions of which are similar to Title VI. Discovery and pre-trial motions have proceeded for the past several years. In this process, the court has narrowed the scope of the triable issues to include only actions taken by state board of education which may have a discriminatory impact; the impact of the basic state funding system enacted by the legislature is apparently beyond the scope of the issues that the court will consider.
The Illinois Court dismissed the plaintiffs’ education adequacy claims because of the binding precedent of Committee for Educational Rights v. Edgar, 672 N.E.2d 1178 (1996), in which the Illinois Supreme Court held that adequacy claims are not justiciable. After the trial is completed on the Civil Rights Act issues, the Plaintiffs may appeal the adequacy issues to the Supreme Court to ask it to re-consider that precedent.
During the summer of 2016, the Illinois State Board of Education and the plaintiffs entered into a series of intensive negotiations to settle the case. State Superintendent Tony Smith has stated that the state’s funding system is archaic and harmful to minority students and he and a number of board members reportedly would like to settle the suit. However, according to the plaintiffs, the board’s representatives have walked away from the talks, leading the plaintiffs to file a motion for summary judgment. Under prodding from a number of legislators who agree that the system is inequitable, the state has in recent years compiled a substantial amount of data that the plaintiffs believe will help them to prove their case.
Mayor Rahm Emanuel mocked Gov. Bruce Rauner in a lengthy rant Thursday, saying he would donate $1,000 to charity if a reporter could provide evidence the governor has presented a full state budget plan while in office.
“I’ve asked the Police Department to get the hound dogs out to go find it. I’m giving you a thousand dollars to the charity of your choice. Find me the governor’s budget,” Emanuel said after a reporter asked him to comment on Rauner’s spending plan. “Produce it, line by line, like every chief executive has to do.
“I’ll stand here, with bathroom breaks, until you produce it,” Emanuel said during a five-minute dissection of what he said were Rauner’s shortcomings as a chief executive. “No. Because you’re asking me to comment on something that doesn’t exist.”
* If you watch the video in that story above, the mayor also says this…
There is no budget line-by-line. He hasn’t produced one in three years. Three budget presentations. It does not exist.
* I’ve known Becky Carroll a long time. She brings tons of children’s toys every year for my annual December toy collection drive for Lutheran Social Services of Illinois (100 two years ago, 50 this past December). We’ve had our differences (whew), but I’ve had more with others. It’s the way of the world. She was recently brought on by the JB Pritzker campaign and I was told shortly thereafter that she would only be there temporarily while they searched for a permanent spokesperson. They are a bit Rahm-heavy over there.
A major contract for updated and expanded concessions at Midway Airport cleared an initial hurdle Thursday despite questions about the involvement of a political operative who has worked for Mayor Rahm Emanuel and former Gov. Rod Blagojevich.
The mayor has pitched the lucrative, 15-year deal as a way to create new jobs, increase the Southwest Side airport’s concession area by more than 50 percent, boost city sales tax collections and increase the amount of involvement of minority- and female-owned businesses.
One of the new businesses that would take part in the spoils is C-Strategies, a public affairs and strategic communications company run by Becky Carroll. She used to work at the Emanuel-controlled Chicago Public Schools and also ran a political action committee aligned with the mayor. Before that, she was a spokeswoman for Blagojevich, the former governor now serving a federal prison term for political corruption. […]
Tiffany Green, managing deputy commissioner for the Department of Aviation, said Carroll would “provide day-to-day management consulting services” related to inventory and warehouse audits, marketing objectives and policies, outreach and employee recruiting.
Seems like she could handle that, particularly with the kind of dough that could flow from the project. There’s an appearance issue for sure because of the Emanuel connection. But we’d have to know which firm(s) she beat out to really understand if she’s deserving.
In city economic disclosure statements, Hudson Group — a major retail company that’s part of the joint venture — also lists C-Strategies as being paid $25,000 for five months of lobbying work. But Carroll, who’s not registered as a city lobbyist, said she has done no lobbying work to get the contract approved.
The Hudson Group told the Tribune that the city economic disclosure was in error. She hasn’t done lobbying before, so I hope the company is right because you can’t lobby in exchange for a piece of the action in this state.
* I’m sure there will be more of these, so check back…
Long time Peoria Congressman Robert “Bob” Michel has passed away at the age of 93. Michel represented Central Illinois in Congress for 38 years and also served as the Republican leader for 14 years. State Senator Dave Koehler (D-Peoria), whose district includes Michel’s hometown of Peoria, issued the following statement:
“Bob Michel was a titan of Central Illinois politics. His Midwestern values of civility, compromise and compassion will be remembered by his ability to work across the aisle to do what was best for his district and the country.”
* Congressman Rodney Davis…
“I am deeply saddened to hear of the passing of a good friend and mentor this morning,” said Davis. “Bob Michel was a war hero and one of the most respected members of Congress of all time. His 38 years of service in the U.S. House of Representatives and the incredible footprint he has left on Central Illinois and this country will never be forgotten. Bob’s ability to reach across the aisle to make a divided government work for the people he represented was second to none – a trait we should all strive to emulate each day. My thoughts and prayers are with his family this morning. He will truly be missed.”
* Treasurer Michael Frerichs…
“Illinois has lost a true gentleman and leader. Bob’s demeanor and ability to listen created an era that refused to allow political gamesmanship to overwhelm common decency and respect.
“He was a strong conservative who knew he did not have to shout to be heard. His service to our country, on the battlefield and in Congress, is a testament to servant leadership that benefited our entire country, not just his hometown of Peoria.
“My condolences to his friends and family, and may Bob find peace reuniting with his beloved wife, Corinne.”
* ILGOP…
“Our State and the Republican Party have lost a true statesman in the passing of Illinois native and former US House Republican Leader Bob Michel. Bob served our state and nation with honor and distinction both in uniform and in the halls of Congress. His reputation preceded him - Bob was a deft lawmaker, always ready to forge compromise, but never willing to sacrifice principle. More importantly, Bob Michel was a man of civility, respected by all on both sides of the aisle. The Illinois Republican Party sends its condolences to Bob’s family in their time of grieving.” - Illinois Republican Party Chairman Tim Schneider
* Congressman Adam Kinzinger…
“A war hero, a distinguished public servant and the proud son of Illinois – Bob Michel was a selfless, principled leader who served for love of God and country. Today, we mourn his passing and remember the remarkable life he lived.
“A Peoria native with Midwestern values, Bob Michel represented his district in the U.S. House of Representatives for 38 years and served as the Republican Leader for 14 years. Prior to his role in Congress, Bob was a U.S. Army platoon leader in World War II where he received two Bronze Stars and the Purple Heart for his valor and dedicated service.
“Bob Michel, a member of the ‘Greatest Generation,’ loved his country and this great institution, and he served us proudly. Our country is better for having the courage, patriotism and leadership of The Honorable Bob Michel – and I, like so many others, will continue to be inspired by the legacy he leaves behind. I extend my deepest condolences to his children, family and friends, and the entire Peoria community.”
Robert H. Michel, who as the House minority leader from 1981 until his 1994 retirement became the longest-serving congressional Republican leader who never experienced majority power, died Friday. He was 93 and had lived on Capitol Hill much of the time since stepping down after 19 terms representing Central Illinois, including a portion of Macon County.
Michel epitomized the congressional Old School in nearly every way, which worked to his advantage for almost all of his four decades in office. He prized collegiality, collaboration, civility and courtesy as essential political virtues. He evidenced a steady reverence for the institutional prerogatives, customs and limitations of what he fondly termed “the people’s House.”
He could reliably claim to know that his brand of middle-of-the-road policymaking would play in Peoria — because that was his hometown. He was far more comfortable using his sonorous baritone to croon “God Bless America” at the Rotary Club than to parry with pundits on one of the Sunday shows.
He didn’t have special policy expertise, particular oratorical gifts or unusual parliamentary skill, and his leadership style was neither overtly charismatic nor consciously intimidating. Instead, Michel (pronounced “Michael”) got what he needed from the GOP rank and file because he was a patient listener, a flexible goal-setter and gentle persuader.
* US Sen. Richard Durbin…
“Every politician alive should pray that, like Bob Michel, the last words said of him would be ‘the face of decency and public service’. Michel’s replacement as Republican leader in the U.S. House by Newt Gingrich marked the end of an era of civility in Congress. It has never been the same since. His passing this morning reminds us that the son of an immigrant from Peoria, a decorated veteran of World War II and a proud Republican leader can set a standard we all should aspire to. I have known Bob for 35 years. We had neighboring congressional districts downstate. We campaigned for each other’s opponents. But there was never a moment when we weren’t respectful and friends. His legacy goes beyond his years of service. He left a remarkable protégé in Ray LaHood who to this day embodies Bob Michel’s extraordinary values.”
* Gov. Bruce Rauner…
“Congressman Michel was the definition of a public servant. Best known for his bipartisan style and working cooperatively with Democrats and Republicans alike, he was beloved by all. He fought hard for his country in World War II, and spent the rest of his life tirelessly working on behalf of Peoria, the state of Illinois, and our nation. Diana and I send our deepest sympathies to his family.”
* House Republican Leader Jim Durkin…
“U.S. House Minority Leader Bob Michel was a true statesmen. He demonstrated the best qualities of a public servant and is a prime example for others in public service to follow. Not only did he devote 38 years of his life representing the citizens of central Illinois in our nation’s capital, he earned his reputation as a skilled negotiator by bringing Republicans and Democrats together to solve problems. I would like to extend my deepest condolences to his family and friends. He will be greatly missed,” said House Republican Leader Jim Durkin.
If a “grand bargain” does not come together in the Illinois Senate, Governor Bruce Rauner’s proposed budget will have a $7 billion hole in it.
That’s according to Rauner’s budget director, Scott Harry, who insists the governor’s budget is balanced… if the grand bargain comes together and lawmakers adopt some of the “structural changes” that Rauner has been demanding, and the legislature has been resisting.
There are a bunch of stories out there like that right now, and they’re wrong. They may have been based on this AP headline…
The Latest: Budget numbers show deficit of up to $7 billion
The gap between spending and revenue in Gov. Bruce Rauner’s budget plan could hit $7 billion if lawmakers don’t approve money-saving ideas sought by the governor, Rauner’s budget director told Illinois senators Thursday.
Budget director Scott Harry told members of the Senate’s two appropriations committees that there are about $3 billion in savings proposals contained in the spending plan Rauner submitted to the General Assembly Wednesday. Those proposals include such things as changing state employee health insurance, creating a new pension plan for newly hired workers and selling the James R. Thompson Center in Chicago.
Those savings proposals, though, are contingent on action by the General Assembly. If they are enacted, the gap between spending and revenues would be about $4.5 billion which the budget proposal said would be covered by components in the Senate’s “grand bargain” that is still being negotiated.
“The maintenance, auto-pilot budget if there were no changes in law would have a deficit of $7.2 billion,” Harry said. “But the governor has requested authority …; to balance the budget. If the governor is given that authority to make spending reductions, the state will be in much better spot than letting the status quo continue and having courts and consent decrees dictate spending.”
The governor’s budget takes that $7.2 billion hole down to a still very large $4.6 billion hole. There are plenty of legit questions about whether he can pass legislation to do that, and the Senate’s “grand bargain” starts addressing the current fiscal year’s problems, so that would help, too.
In other words, $7.2 billion is what happens if nothing is done this fiscal year and nothing is done next fiscal year. And that number doesn’t include leftover unpaid bills from this fiscal year. That’s just FY18 expenditures compared to revenues.
* Madigan has opposed this idea in the past, so maybe this is a good sign. From a press release…
Madigan Directs House Committee to Consider Rauner Proposal to Sell Thompson Center
SPRINGFIELD, Ill. – House Speaker Michael J. Madigan, D-Chicago, issued the following statement Friday:
“In his recent Budget Address, Governor Rauner prioritized the sale of the James R. Thompson Center. In keeping with my commitment to work cooperatively with the governor, I’ve directed the House State Government Administration Committee to consider legislation requested by Governor Rauner that would allow for the sale, lease or other redevelopment of the Thompson Center.
“While technical questions pertaining to the sale remain, it is my intention to work with the governor on developing a course of action for the Thompson Center that best serves the interests of the people of Illinois.”
* 3:29 pm - A St. Clair County judge has denied Attorney General Lisa Madigan’s motion to dissolve a 2015 court order mandating that the state pay its employees without an appropriation. More in a bit.
*** UPDATE 1 *** From AFSCME…
AFSCME, other unions successfully defend state employee paychecks
A St. Clair County Circuit Court judge has denied a request by the Illinois Attorney General to dissolve an order previously won by unions representing state employees, ensuring that state workers would continue to get paid on time and in full even in the absence of an enacted state budget.
Legal counsel for the unions led the defense of the order, arguing persuasively that by agreeing to abide by court orders, the General Assembly has in effect appropriated funds for state employee payroll. The judge indicated that he did not want to see state government shut down and that the balance of equities in the case favored continuing to pay state employees.
“Through all state government’s chaos of the past two years, the people of Illinois have been able to rely on state workers to be there, providing important public services,” AFSCME Council 31 Executive Director Roberta Lynch said. “This decision ensures that that commitment can continue.”
*** UPDATE 2 *** Rauner administration…
The Rauner Administration issued the following statement from General Counsel Dennis Murashko in response to a St. Clair County judge denying the Attorney General’s motion to block state employee pay.
“We’re pleased our hard working state employees, who show up to work every day on behalf of the people of Illinois, will continue to be paid. It is our hope the Attorney General drops this lawsuit so the bipartisan negotiations in the Senate can continue in order to reach a balanced budget with changes to get our state back on track.”
*** UPDATE 3 *** Attorney General Madigan’s spokesperson…
We think the law is clear. The Illinois Constitution requires an enacted appropriation for state spending. Under the current injunction, the state has spent over $3 billion in taxpayer money without any transparency or legislative debate as required by law. The Governor is using this injunction to avoid following the Constitution and enacting a budget, irreparably harming the people of Illinois. We will appeal the court’s order.
*** UPDATE 4 *** We don’t have the judge’s ruling yet, but a friend who was in the courtroom said the judge appeared to be swayed by an AFSCME argument which references this language in the stopgap budget passed last June…
All appropriation authority granted in this Act shall not supersede any order of any court directing the expenditure of funds for fiscal years 2016 or 2017.
The GA didn’t appropriate any money for state employee payroll in that approp bill. It instead relied on the court order to pay workers.
Most of the stopgap expired at the end of December, but there are other approps in that bill that last through the end of the fiscal year.
Cullerton later told reporters Rauner’s support of the package would help Republicans feel more comfortable voting for some of the most controversial of the bills.
“He would certainly, I would think, help [Senate GOP Leader Radogno] get some more votes for the package so that she wouldn’t have so many people voting present,” the North Side Democrat said.
“He wouldn’t help our caucus too much. I didn’t vote for him, you know, for governor.” Cullerton on whether it would help the grand bargain to pass if Rauner came out in support of it.
* The Question: On the whole, do you think the governor weighing in on the grand bargain yesterday was a good idea or a bad idea? Take the poll and then explain your answer in comments, please.
Delivering his annual budget address Wednesday, Rauner ran down a list of things he’d like to see in the grand bargain. A number of those items, such as term limits on legislative leaders — that’s aimed at you, Mike — and making permanent a tax credit for research and development, already are in the mix. Other items, such as making a property tax freeze permanent and excluding food and drugs from an expanded sales tax, are not.
Only time will tell whether those are hard or soft demands by the governor, and whether they are politically doable or deal-breakers. The governor’s next steps will reveal just how amenable to compromise he really is.
But now the Senate could use a similar signal from you, too, Mike. Senators on both sides of the aisle will be asked to take difficult votes. That’s easier to do if they know they’re not taking a risk for nothing, if they know this grand bargain stands even a chance in the House and with the governor.
Would this be a win for Rauner? Sort of. He would get a few of the reforms he has insisted on. But only after 20 months of losing really badly.
If you were out to make point, Mike, you have.
Now let’s do what’s best for Illinois.
If the governor expects the Senate and the House to pass all of his “grand bargain” demands as-is, the whole effort is probably dead. Let’s hope he’s flexible.
* In the meantime, let’s go back to yesterday’s budget speech…
We’re asking for a worker’s compensation system that matches Massachusetts.
As we’ve discussed before, Massachusetts is a “causation” system and the Democratic Party here does not love that idea.
* However, the Massachusetts Division of Insurance also told LRU that it is tasked with approving workers’ comp insurance rate changes. As of 2015, those rates had declined nearly 25 percent since 2001, when rates were increased by a single percentage point.
Speaker Madigan has been strenuously arguing for state control over workers’ comp insurance rates here because he believes they are artificially high. So, maybe it’s time to make a counter-offer.
* More editorials…
* SJ-R: Lawmakers need to agree on more than the need to work together
* Daily Herald: The governor’s call for ‘political will’ on Illinois budget crisis
* The Center for Tax and Budget Accountability took a look at yesterday’s budget address. Here’s some of what they found…
The speech broke little new ground, and repeated some long debunked myths. CTBA is combing through the details of the proposed budget, and will be providing more in-depth analysis over the next few days and weeks. […]
The first is that the Governor has proposed a budget with a $4.57 billion deficit — at a time when the state is projected to begin the next fiscal year with as much as $13.5 billion in unpaid bills. Even discounting that backlog, nearly $1 of every $5 the Governor proposes to spend on General Fund services is not paid for. […]
One of the most glaring inaccuracies in the speech was that Illinois has the nation’s fifth largest state and local tax burden. This ranking comes from a Tax Foundation report that includes taxes paid to other states. If you look only at taxes actually collected by governments in Illinois, then our state ranked just 27th in state and local tax burden as a percentage of income in 2014 — slightly below the median. And 2014 was before the phase-down of the temporary income tax increase; if our income tax had been what it is now, CTBA estimates Illinois would have ranked 37th, tied with Idaho and Texas. […]
The Governor’s demand for a permanent property tax freeze is not sound fiscal policy either. Freezing the main revenue source for local governments and public education will cause severe strain in communities across the state. Indeed, such an initiative would make it virtually impossible for communities to maintain adequate levels of such basic services as police and fire protection. This is an especially questionable proposal now, given that recent state law imposed a significant increase in pension funding requirements on local governments that will continue to grow over the next two decades. [Emphasis added.]
*** UPDATE *** The Senate Democrats have posted their own analysis of the governor’s budget plan. Click here to read it.
* Remember these unusual blame-shifting demands from Gov. Rauner’s legal filing to stop Attorney General Lisa Madigan from lifting a court order that mandated state workers be paid without an appropriation?…
Thus, even if the Attorney General could demonstrate that no specific appropriations existed to pay state employees (a factual matter that the Attorney General simply assumes to be true), the Attorney General would be required (but completely fails) to specify which employees’ pay can be stopped despite the above legal grounds for paying them. […]
In the event that the Court elects to follow this course, the Attorney General should explain which employees she believes must be deprived of a paycheck and which services she believes should no longer be provided to the people of this State.
ATTORNEY GENERAL MADIGAN PROVIDES CONSTITUTIONAL OFFICERS, LEGISLATIVE LEADERS INFORMATION TO PREPARE FOR BUDGET IMPASSE
Attorney General Lisa Madigan today issued an overview of information her office has provided to Illinois’ constitutional officers and legislative leaders to help prepare for the possibility that a State budget will not be in place for the new fiscal year. Attorney General Madigan issued this guidance in an effort to make sure that all offices and agencies have a legally supported plan in place to ensure that the State provides services critical to the people of Illinois in spite of the budget impasse. […]
Based on the Illinois Constitution, and consistent with previous litigation, the Attorney General has provided the constitutional officers with an overview of the application of the FLSA, so that State offices and agencies can be prepared to comply with that law in time for the payroll deadlines in mid-July. A copy of that guidance is attached.
Additionally, to ensure that all State offices and agencies are prepared, if necessary, to continue providing essential or core government services, the Attorney General also provided the constitutional officers with an overview of the process for identifying essential personnel and services. The Attorney General’s Office has indicated it will work with the respective constitutional offices to ensure that their essential government functions and personnel are appropriately identified and maintained in the interest of the health, safety and welfare of the people of Illinois.
“This isn’t about pointing fingers or assigning blame,” the governor said to some laughter from Democrats during his address in the Illinois House chambers. “We are where we are. It’s not about the past; it’s about how we move forward together.”
Nevertheless, there were some partisan games ahead of the address. Just before the speech, House Republicans urged Madigan to remove four signs that were taped onto podiums on the Democratic side. They read “Rauner budget = fake news” and “Rauner budget = alternative facts.”
Madigan’s response?
“I think they’re within their rights to decide whether they want to put a sign up or anything else,” he said.
The signs were a bit much.
Also, I was astonished at the amount of derisive laughter during the address. He is the governor, after all.
Rauner also renewed his call for legislator term limits. He said term limits “get job creators excited. Passing term limits is one of the most important things we can do to send a positive recruiting message to job creators.” Democrats laughed openly at the statement.
Rauner urged the laughing Democrats to ask “job creators” about the topic and insisted they do support it.
Recalling the length of the stalemate, rife with accusations on both sides, Rauner said: “This isn’t about pointing fingers or assigning blame. ” That prompted a round of laughter from Democrats in the chamber.
It’s not going to help us move forward if right after this speech, Democrats run to the media claiming we’ve never proposed a plan to balance the budget.
Rauner’s chief political nemesis, Democratic House Speaker Michael Madigan, who was standing behind the governor as is custom at the Capitol for such speeches, then offered some words that prompted Rauner to laugh.
“Speaker said, ‘It’s the Russians,’” Rauner told the assembled lawmakers and guests, prompting laughter and applause. It’s a reference to the national political scene and questions about Russian interference in the 2016 presidential election and influence with President Donald Trump’s administration.
Calling on parishioners to “speak for the children in the womb,” Cardinal Blase Cupich condemned legislation that would expand Illinois women’s access to abortion services.
The bill in question would eliminate a so-called “trigger” provision that would make abortion illegal in Illinois if Roe v. Wade is overturned by the U.S. Supreme Court. It also would allow women with Medicaid and state employee health insurance to use their coverage for abortions.
The measure is a direct response from Democratic state lawmakers to Republican President Donald Trump, who has touted anti-abortion policies and said he would appoint Supreme Court justices with the goal of overturning Roe v. Wade. […]
The measure could be voted on in the House as early as Thursday. Cupich urged parishioners to ask their lawmakers to reject the bill and instead focus on passing a budget that funds “essential services.”
It is with some urgency that I write to you today, about a bill in our Illinois legislature, HB 40. The bill in question, if passed, would use tax dollars to pay for taking the life of a child in the womb through an abortion. There are strong indications that HB 40 could be enacted into law if we fail to act.
In addition to mandating state funding of abortion through the Medicaid program, HB 40 also calls for abortion coverage in state employees’ health care plans. It also allows for the use of tax dollars to fund grants to organizations that refer, counsel for and perform abortions, e.g., Planned Parenthood. All of these state-funded mandates are currently prohibited by Illinois law.
We have raised our voices in the past for those who have no voice, whether they be the immigrant or the refugee, the poor, or the unemployed. We now need to speak for the children in the womb, who are the weakest among us.
We need to let our elected officials know that taxpayers should not be forced to fund the taking of human life. In fact, tax money should be used to fund prenatal services for the poor and child care for working mothers, as well as expand health-care options for those in need. Please join me in advocating for all life by urging your state representative to reject HB 40 and work instead to pass a budget that funds all essential services.
The last abortion-related bill approved by the House only passed with 61 votes, all of whom were Democrats. One of those Democrats, Mike Smiddy, lost to a Republican last year.
The fiscal year 2018 budget also recommends the Historic Preservation Agency (HPA) merge with DNR to consolidate the administration of state historic sites and monuments within one agency. By positioning HPA administration within DNR, core competencies will be centralized. The merger, which includes $9.2 million in new appropriation authority for DNR, is anticipated to result in $3.2 million in savings and ensure the continued collection and preservation of state historic resources.
Rauner also outlined areas where he wants to increase state spending, including K-12 education, college grants for needy students and more investigators for the Department of Children and Family Services.
However, Rauner did not mention in his speech that his budget proposal would spend about $37.3 billion while state revenues are estimated at $32.7 billion. Rauner’s budget plan also counts on $4.6 billion under a category called “working together on ‘grand bargain,’ a bargain that is still being negotiated in the Senate. Rauner’s budget director Scott Harry nonetheless insisted Rauner had presented a balanced budget to the General Assembly.
Rauner’s budget proposal — deemed “balanced” by his budget director — is reliant upon on the Senate plan passing. Within the budget proposal is a mixture of spending cuts, revenue and projected economic growth to try to reach a magic number of nearly $4.6 billion. The governor is seeking to fill the remaining $2.7 billion plus by getting legislative authority to make cuts.
“His preferred option is to continue to work with the General Assembly,” state budget director Scott Harry said during a briefing with reporters.
The reliance on the plan — as well as lack of specifics in his budget address — had some Democrats launching attacks. Illinois Comptroller Susana Mendoza said Rauner has “shirked his constitutional duty.” And State Sen. Terry Link, D-Vernon Hills, said Rauner “shied away from the opportunity to lead.”
Despite repeatedly insisting to reporters that the proposed budget was “balanced,” Rauner’s budget chief, Scott Harry, did not offer much in the way of specifics as to how the governor would close the hole. Not contained in the 570-page budget book is any mention of ways to raise more money to avoid cuts.
Rather than detail additional cuts to close the gap, Rauner’s budget instead includes a $4.57 billion line-item titled “working together on ‘grand bargain.’” Harry said the governor’s “preferred path” out of the hole would be “a mixture” of more spending cuts, tax hikes to generate new revenue and policies to create more economic growth, which would lead to higher tax revenues.
That deep hole already assumes Rauner would be able to make $2.7 billion in other cuts he proposed in the state’s main checking account. One provision would shift state workers into a less expensive pension program by offering a 401k-style retirement plan as an alternative to the constitutionally protected, defined-benefit plan workers currently enjoy. Rauner’s team says the move would save $500 million. When asked how the administration had estimated the savings when participation in the new plan would be voluntary, Harry punted to another Rauner aide, who said only that “assumptions were made on what the choices would be.”
Also factored into Rauner’s proposed savings is $240 million he estimates would be generated from selling the state’s James R. Thompson Center building in the Loop, $340 million in savings from changes to the state’s procurement processes, $120 million in cuts to a program that allows people with disabilities to avoid institutionalization by receiving home-based care and a $500 million reduction in compensation for state workers.
I didn’t go to that budget presentation, but it sounds like it was similar to some recent White House press briefings.
* I subscribe to the governor’s campaign YouTube channel and just got an alert that this video was posted. I expect to receive a press release about it soon. Have a look…
* Script…
Whatever it takes. Bruce Rauner’s plan to balance the budget reforms Illinois, builds a new economy, freezes property taxes, caps spending, pays down the debt and term limits politicians’ power. Learn more at BudgetAndReform.com.
