The hard part begins today
Wednesday, Mar 1, 2017 - Posted by Rich Miller
* Finke…
Illinois senators took another shot at the “grand bargain” Tuesday, approving several of the less-controversial components along with an expansion of gambling.
However, once again a pension reform bill failed to pass and the Senate postponed until Wednesday some of the stickier issues, including workers’ compensation, revamped school funding and a package of tax hikes intended to balance the budget.
Senate President John Cullerton, D-Chicago, used a parliamentary tool to keep the pension reform bill alive for another vote, possibly yet this week. The Senate plans to vote Wednesday on other controversial components, including the tax hikes and school funding reform. The legislation is structured so that all of the dozen bills in the package have to be passed by both the Senate and House and signed by Gov. Bruce Rauner before any of them can become law.
The package was negotiated between Cullerton and Senate Republican Leader Christine Radogno of Lemont. Radogno said recently that the package had to be approved by Tuesday, the final day of February, or the Senate should just cede control of the process to House Speaker Michael Madigan, D-Chicago.
After Tuesday’s votes, Radogno said there were “very few” loose ends that still needed to be resolved. She said the votes were pretty much what she expected.
He did a good job summing up the key parts, so go read the whole thing.
* Tribune…
Sen. Toi Hutchinson, an Olympia Fields Democrat who leads the revenue committee, said a permanent freeze may be too difficult to pass, noting it would hit schools and towns that rely on that money for day-to-day operations. Instead, lawmakers may pass a two-year freeze and let local voters decide whether to extend it for a few years beyond that.
Despite the fits and starts, Democrats eager for movement sought to paint the day as progress while at the same time warning that both parties will have to vote for something they don’t like if there’s ever going to be an end to the stalemate. They also note any action in the Senate is just a first step, as the House would have its say before the plan could reach the governor’s desk.
“People just have to understand this is, this is a classic compromise,” said Senate President John Cullerton, D-Chicago. “So you get as much as you can and you don’t overestimate how much you think you’re entitled to. So that’s what we are trying to do.”
* AP…
Democratic Senate President John Cullerton also will call for a do-over on his pension overhaul plan, years in the making, which failed Tuesday. Cullerton was unfazed despite the roll call on a plan even Republicans agree has Rauner’s backing.
“Hopefully, overnight, people can reflect on what’s at stake here,” Cullerton said. […]
The Senate’s GOP still showed reticence Tuesday to climb aboard, arguing there shouldn’t be votes on any part of the plan until it’s all worked out behind closed doors. But their fears should be tempered by knowing Cullerton has tied all the pieces together, said Assistant Republican Leader Dave Syverson of Rockford. If one fails, none of them moves forward.
“Some members thought that maybe by holding off on doing this today, it would put pressure on the leadership to get the rest of it finalized,” Syverson said. “But the fact that all the bills are tied together — everything that passed today is useless unless the rest of it passes.”
* Greg Hinz…
“If 4.99 percent sounds high, let’s look at the level if you have $20 billion in debt,” a figure the state could reach by mid-2018, said Sen. Toi Hutchinson, D-Olympia Fields, chairman of the Senate Revenue Committee.
“What disturbs me is the people who don’t feel any pressure” to do something about that, she added.
The revenue bill also would expand the state’s earned-income tax credit by half.
The pension bill was supposed to have been approved yesterday. But with Democrats not wanting to offend labor groups, and some Republicans wanting bigger changes, the measure got only 26 votes before it was placed on postponed consideration, a parliamentary maneuver that will allow a second vote later.
Sources close to Radogno and Cullerton both said they believe that’s doable.
* Raw audio of Cullerton’s media availability…
- winners and losers - Wednesday, Mar 1, 17 @ 9:24 am:
So where is the Amendment to SB 1?
Is school funding reform no longer an essential part of the Grand Bargain?
- Echo The Bunnyman - Wednesday, Mar 1, 17 @ 9:37 am:
“If 4.99 percent sounds high, let’s look at the level if you have $20 billion in debt,” a figure the state could reach by mid-2018, said Sen. Toi Hutchinson, D-Olympia Fields, chairman of the Senate Revenue Committee.
Here’s the reality….
But with Democrats not wanting to offend labor groups, and some Republicans wanting bigger changes, the measure got only 26 votes before it was placed on postponed consideration, a parliamentary maneuver that will allow a second vote later.
“What disturbs me is the people who don’t feel any pressure” to do something about that, she added.
Don’t want to offend labor… But the rest of the state can eat cake… Big Labor is really doing all it can to die in Illinois…With help from their “partners” in the ruling party… LISTEN to the Senate leader, DON”T over estimate.
- Puddintaine - Wednesday, Mar 1, 17 @ 9:44 am:
It was a gooood try. Legislators pick up your participation paychecks and help yourself to the punch and donut holes. We’ll see you all next session for The Big Win.
- Anony - Wednesday, Mar 1, 17 @ 9:44 am:
C’mon, let’s git ‘er done - it’s (past) time.
Off topic for a second…. I didn’t know Mr. Schnorf, so I can’t comment on his passing other than to offer condolences. I wanted to complement Mr. Miller for being such a good friend to him. Says a lot about him.
- Echo The Bunnyman - Wednesday, Mar 1, 17 @ 9:47 am:
Puddintaine… You win!
- Honeybear - Wednesday, Mar 1, 17 @ 10:03 am:
Echo, thank you for making a distinction between Labor with a big L and a little l. AFL-CIO have called my AFSCME retired relative multiple times asking to call their senator. We need a deal bad. I totally get that. But I also know that back passage Rauner folks are doing a heck of a lot more to kill it. I feel republicans are doing more to kill it. But that’s just my perception and knowledge of a key back room players movements.
- notbuyingit - Wednesday, Mar 1, 17 @ 10:07 am:
27 years in for me..either choice is an impairment. Whether I or others are willing to make that choice to make this bargain a reality isn’t the issue. Someone will challenge it and win. So, fiscally, this is just another kick the can. When most sane people agree that we need income and cuts, are there any deep cuts in the Grand Bargain other than the one that is going to fail? 13 BILLION deficit. $13,000,000,000. Epic Fail on both sides.
- Sparky791 - Wednesday, Mar 1, 17 @ 10:40 am:
Pension revision will be ruled unconstitutional. Another kick the can. Pay the damn bill.
- Echo The Bunnyman - Wednesday, Mar 1, 17 @ 10:51 am:
Honeybear… I think the core of the problem is the playbook that used to work, and backroom deals, don’t work with someone who made billions doing just this. They had leverage if they understood for just five minutes of background of what he did for a living. Take a struggling entity. Gut it, make it profitable, and sell high. The voters understood and voted him in to do it. The stalemate for the last 2 years was probably part of it. The sad truth is, like violence in a few neighborhoods in Chicago, if it doesn’t happen to the collective “me” it goes away. If he gets a big savings from AFSCME because they strike, he wins. My hope is you don’t strike. It’s the old playbook he expects you to play. My guess is, you will give him the win.
- Big Joe - Wednesday, Mar 1, 17 @ 10:52 am:
Agree with Sparky.
How many times do the courts have to rule the changes unconstitutional for the Legislators to understand that the pensions have to honored? Pay up, and move on already. Enough on that subject.
- Jimmg0 - Wednesday, Mar 1, 17 @ 10:56 am:
If House Bill 610 passes in DC is the need for school funding reform necessary if we don’t have to actually fund schools?
- Liberty - Wednesday, Mar 1, 17 @ 11:07 am:
Waste of time except it might save some Senators their seats. Rauner will let the house deal with it and if the legislature somehow agree, Rauner will just pile more on it.
- Echo The Bunnyman - Wednesday, Mar 1, 17 @ 11:15 am:
Only makes me more convinced Rauner has a long game that some court somewhere somehow get’s him out of pensions at least with those still in the system. How else can we explain two years and no real solution? Somehow get a court to say, “No chance of ever paying.” Sad.
- Honeybear - Wednesday, Mar 1, 17 @ 11:21 am:
Echo- I concede your point. I don’t have enough to argue you’re wrong. But here’s my point. Which I would argue is the point of the front ranker, the Local member, me. Which action fascillitates the rebuild? Is it the Vichy position, the collaborator in the destruction of the Union? Or is it La Resistance? If we accept the contract no one will ever trust the union again. AFSCME will fold. If we resist people will stick to the union even if the cross the line. This is my faith. I resist to rebuild. I will strike to rebuild. Nobody trusts a quitter
Or a scab
- JS Mill - Wednesday, Mar 1, 17 @ 11:37 am:
=Instead, lawmakers may pass a two-year freeze and let local voters decide whether to extend it for a few years beyond that.=
Typical chicken stuff by the ILGA. They really have no business doing anything with property taxes.
Freezing local property taxes does not balance the state budget, it only creates a future disaster when the state does not come through with funding (History tells us this will happen) and continues to gobble up more resources for state mismanagement.
For people at the local level, the $50 to $500 in “savings they will experience over a couple of years (average based on property taxes in this area, which is a relative number when taking into consideration higher property values and wages in the city and suburbs), that so called savings is probably more likely to be a loss. That is money that is at least controlled and invested locally versus sending anything to the state.
People want simplistic answers but they don’t exist.
Politicians don’t really care about solutions they care about votes and do not care who gets hurt in the process. If they did, we wouldn’t be in this predicament in the first place.
- Echo The Bunnyman - Wednesday, Mar 1, 17 @ 12:05 pm:
Honeybear… I hope I am wrong. I think that by accepting a lesser offer with members still employed is not the end of the union. Sometimes you have to try and live to fight another day.
- BK Bro - Wednesday, Mar 1, 17 @ 12:17 pm:
Not sure what the big deal is on the so-called property tax “freeze.” All it does it take away the ability of a municipal board to single handily raise taxes over inflation. Schools and cities will only find themselves in dire financial straights if voters don’t approve tax increases.
- Anon - Wednesday, Mar 1, 17 @ 12:40 pm:
=== Typical chicken stuff by the ILGA. They really have no business doing anything with property taxes. ===
The ILGA has been dealing with property taxes for decades. Ever hear of the senior exemption and senior freeze? Enacted by the ILGA. The State clearly has the authority to impose a freeze, regardless of whether it’s good policy.
- Nick Name - Wednesday, Mar 1, 17 @ 2:00 pm:
Honestly, as a state employee I would prefer this method of pension reform. I get the constitution aspect, etc, but if we don’t agree to something minor, the taxpayers will eventually vote in favor of a con-con and pension reform will go nuclear. Is this really what you want, state employees?
- JS Mill - Wednesday, Mar 1, 17 @ 2:03 pm:
At BK Bro, Anon- Well, they have done a fine job so far so I guess you are good with that.
Clearly I understand the statutory authority, history would be the strongest proof that they have not used it well.
=All it does it take away the ability of a municipal board to single handily raise taxes over inflation.=
So, my guess is you are talking CPI? Right?
The better measure would be the wage index but then, you would actually have to understand something more than flaccid anti-tax talking points and how schools operate.
Schools do not spend much on “stuff”, like the things measured by CPI. 75%-80% of our expenses are on wages and benefits. Both health and liability insurance have increased in cost at a rate nearly 10 times CPI, and we are fortunate. Some districts have seen 100% increases in those costs.
So, if you only increase based on CPI you are falling behind, even with major cuts in staffing and expenditures.
Energy costs have been unpredictable at best, even as diesel and gasoline are down from three years ago. This years increase was just shy of 6%, what was cpi again?
This is why the whole “increase should be tied to inflation” shtick is complete nonsense.
- JS Mill - Wednesday, Mar 1, 17 @ 2:06 pm:
=the taxpayers will eventually vote in favor of a con-con and pension reform will go nuclear.=
Tier II was all of the needed pension reform.
The annual cost of the pension has declined nearly $500 million.
The politicians either don’t know, or more likely, don’t care because this equates to “good stuff” politically.
- Rod - Wednesday, Mar 1, 17 @ 2:15 pm:
I was surprised that SB 5 (the CPS pension funding bill) passed as easily as it did,035-022-001. No Republicans other than Senator Radogno voted for the bill. Suburban democrats who also opposed the bill voted yes so it passed. Not exactly a grand bargain.
- BK Bro - Wednesday, Mar 1, 17 @ 3:17 pm:
@ JS Mill
The beauty of the new “freeze” system is that you can take your argument directly to the people voting on a tax measure. If you think schools should get more than what a CPI increase would be, fine. Explain that to voters and get a tax increase passed.
- Juice - Wednesday, Mar 1, 17 @ 3:29 pm:
BK Bro, the freeze isn’t above CPI. It’s a freeze, which means zero.
Raising property taxes above CPI already requires a referendum if the taxing body is in a county covered by PTELL (excluding home rule units).
- BK Bro - Wednesday, Mar 1, 17 @ 3:33 pm:
@ Juice
Thanks for clarification. I thought I read somewhere that they would just simply extend PTELL to all municipalities, regardless of home rule status.
- JS Mill - Wednesday, Mar 1, 17 @ 3:44 pm:
= Explain that to voters and get a tax increase passed.=
You are incredibly disingenuous. But, you also support bankruptcy for municipalities so whelching
on your commitments is a part of your moral fabric.
First, the voters elected a Board to run their school district. That is what they did, but now, for local government we move to the Athenian model? What about curricular changes? Doesn’t matter because learning outcomes are not important? What about voters voting on discipline, hiring, athletic offensive and defensive strategy. money is the only important thing? Not the learning? That is basically what you are saying. Voters are no more “expert” on these issues as they are on school finance. But ok.
This is political pandering.
Now we have to spend time that was set aside for educating to run a political campaign? Yeah, that is a great idea.
You will get what you deserve from your near sighted and simple minded solutions.
- JS Mill - Wednesday, Mar 1, 17 @ 3:49 pm:
=Raising property taxes above CPI already requires a referendum if the taxing body is in a county covered by PTELL=
Not quite correct.
For schools, the extension limitation is 5% or CPI, which ever is less. It does not include the bond rate, the limiting rate for bonds is set differently depending on
the type of bonds. At least for schools.
If you really want to reduce property taxes the fastest way to do it is eliminate PTELL, not extend it or make it more rigid.
Districts in Cook would have been able to lower rates but, due to PTELL, they don’t dare in case they ever need to access the old rate. They would have to go out to referendum and those referenda rarely pass.
- Whatever - Wednesday, Mar 1, 17 @ 4:18 pm:
Echo the Bunnyman @ 10:51 ==Take a struggling entity. Gut it, make it profitable, and sell high.==
Name one company Rauner turned around and made profitable. He made is money by buying low, gutting and walking away from the shambles.
- Aaron1976 - Wednesday, Mar 1, 17 @ 4:23 pm:
NickName:
You can have a con-con and change the pension rules, it still doesn’t affect those already on the job or already retired. Pensions are an enforceable contract and that contract will be upheld by the contracts clause in the US Constitution.
- BK Bro - Wednesday, Mar 1, 17 @ 4:37 pm:
@ JS Mill
1. How is it disingenuous? Why would a more direct form of democracy not work?
2. I do not “support” bankruptcy. Who would anyone? What I support is an organized legal process to what could (and in some case, already has) ultimately happen to cities across the State. Why would a less organized system of insolvency and creditor positioning be more desirable? BK is an unfortunate scenario, but it’s there to provide as much stability and certainty as possible to RETURN an entity back to financial good standing.
- Generic Drone - Wednesday, Mar 1, 17 @ 6:42 pm:
Well, Rauner killed it. So much for him compromising. Rauner plans on destroying this state so his cronies can scoop up the remains.
- Honeybear - Wednesday, Mar 1, 17 @ 9:41 pm:
You know there’s a lesson for hesitant AFSCME’s in this. If Rauner will keelhaul the Republican leader of the Senate, what will he do to you after you’ve betrayed your own union? He’ll have no hesitation in going after you. He hates unionized state workers. Hell, he hates all workers not of his class. You let poor Leader Rodogno be a lesson.
Leader Rodogno, I’m so sorry he did this to you. You didn’t deserve it.