* Tribune…
Republican Gov. Bruce Rauner on Tuesday said he’s worried Illinois “won’t do very well” if the proposed U.S. House Republican Obamacare replacement plan becomes law.
The governor’s comments were his first since congressional Republicans unveiled their changes Monday. The plan would cut federal funding to Medicaid, the health insurance program for the poor and disabled paid for with state and federal dollars.
In Illinois, about 3 million, or 1 of every 4, residents are on Medicaid, including about 650,000 people insured under Medicaid expansion. The state is getting an estimated $14.1 billion in federal money this year to support traditional Medicaid and Medicaid expansion.
The House GOP plan would switch state reimbursement from a federal match to a limited amount of money, blowing a big hole in a state budget that’s already severely out of whack amid a record impasse in Springfield.
Rauner referred to the proposal as “a pretty significant shift” but said he hadn’t had a chance to “analyze every piece” of the legislation.
* AP…
[Gov. Rauner] says he’s especially concerned that it will result in “pressure to reduce insurance coverage for people in Illinois.”
Rauner says it’s clear the Affordable Care Act is not affordable and it needs to change.
He says “I support changing it but we’ve got to be thoughtful about it.”
So… it’s not affordable and he supports changing it, but he doesn’t like the pressure to reduce insurance coverage?
* Related…
* What The Obamacare Replacement Bill Means Depends On How You Get Your Coverage
* House Republicans release long-awaited plan to replace Obamacare
* G.O.P. Health Bill Faces Revolt From Conservative Forces
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Question of the day
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* Sun-Times…
The annual consumer complaints report released Monday by Attorney General Lisa Madigan confirmed a trend among some Illinois consumers who still do not know how to protect themselves from consumer debt and identity-theft crimes.
With 2,783 complaints out of the nearly 24,000 received in 2016, consumer debt complaints including mortgages, collection agencies and banks took the first spot of the list; that group of complaints has remained on top since 2008.
Identity theft occupied the second place for the ninth consecutive year, with 2,391 complaints.
Education-related complaints occupy spot number six — one higher than last year — with 1,691 complaints.
* The full top ten list with the number of complaints…
1. Consumer Debt (mortgages, collection agencies, banks) - 2,783
2. Identity Theft (government document fraud, credit cards, utilities, data breaches) - 2,391
3. Promotions/Schemes (phone scams, investment schemes, lottery scams, phishing) - 2,387
4. Construction/Home Improvement (remodeling, roofs and gutters, heating and cooling, plumbing) - 2,094
5. Telecommunications (telemarketing, cable and satellite TV, phone service and repairs, cell phones) - 1,851
6. Education (for-profit schools, student loan debt, loan counseling) - 1,691
7. Used Auto Sales/Motor Vehicles (as-is used cars, financing, warranties) - 1,648
8. Internet/Mail Order Products (Internet and catalog purchases, TV and radio advertising) - 955
9. Motor Vehicle/Non-Warranty Repair (collision, engines, oil changes and tune-ups) - 677
10. New Auto Sales/Motor Vehicles (financing, defects, advertising) - 668
* The Question: What’s your biggest complaint these days?
Snark is, of course, heavily encouraged.
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Maybe they’re both right?
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* Fran Spielman…
The teacher pension crisis that threatens to end the Chicago Public school year three weeks early on Tuesday caused yet another major break in the once-close friendship between Mayor Rahm Emanuel and Gov. Bruce Rauner.
Emanuel branded Rauner the “emperor who wears no clothes.” Rauner’s spokesperson fired back that the 5 foot-8-inch mayor of Chicago sounds like someone who has a “Napoleon complex.” […]
“In the last 48 hours, everybody has come to the conclusion that the emperor wears no clothes. The governor. There’s nobody else [he can blame]. He can’t blame Mike Madigan. He can’t blame John Cullerton and the Grand Bargain. He can’t blame me. He can’t blame Chance. And…everybody’s now seen what he stands for,” the mayor said after a ribbon-cutting ceremony at a new riverfront office building.
“We’ve gone three years without a governor who has introduced a [balanced] budget. Governor’s State now is cutting 22 academic programs. Kids from the state of Illinois are leaving the state to go to college when we used to be a net gain. Ounce of Prevention and other social service agencies are suing the state. More people are leaving our state…and this is all under his tenure.” […]
“Sounds like someone has a Napoleon complex,” said the governor’s spokesperson Eleni Demertzis. […]
“The emperor wears no clothes. Gov. Edgar gave him recommendations. Gov. Ryan gave him recommendations. I have given him recommendations. Everybody has tried to give him advice. Everybody walks out with the same thing, including Chance the Rapper. Just do your job,” the mayor said.
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Think before you tweet
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* Um, OK…
If you click here [profanity warning], you’ll see a lot of folks misconstrued what Lou tried to say, like these folks…
* And then we have Rep. Ives…
If she was hoping for lots of support from the twitterverse, she was sorely mistaken…
Lots and lots more here, but be forewarned about strong language.
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No self-awareness at all
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* This was just a bizarre concept from the get-go…
This event happened the day after a federal prosecutor claimed Brown had accepted bribe money.
* So, the BGA paid the fee and sent an under-cover reporter…
Among the eight other participants, whose names the BGA obtained either from a sign-in sheet or when they introduced themselves to the others in the room: a Cook County judge, one of Brown’s neighbors and two individuals with apparent ties to Brown’s office - a man named Christopher Hodges and a woman named Zoe Neely.
A Christopher Hodges has worked in the clerk’s office since 2004 and is a manager making $56,000 a year, according to 2016 payroll records. A Facebook profile page that identifies Hodges as an employee of Brown’s office has a photo of the same man who attended the seminar. The Facebook page also states Hodges is a “servant” at Brown’s church, King of Glory Tabernacle Church of God in Christ, on Chicago’s South Side.
Neely is identified on LinkedIn as Zalita Zoe Neely. Her mother is Madina Neely, who has been employed in the clerk’s office since 2008 and has worked as Brown’s scheduler, according to sources. According to payroll records, Madina Neely was an office assistant in 2015 making $37,000 a year but last year made $63,000 as a manager.
None of them could be reached for comment. Brown’s spokeswoman Jalyne Strong declined to answer questions about their employment or on the seminar as a whole. […]
Brown talked about the basics of running a campaign, including how to set up an organizing committee and file petitions, as well as how to shake hands and dress appropriately.
“You definitely do not go to the store with rollers in your head and a scarf on your head if you’re a woman,” she said. “You want to always dress up, even on Saturdays.”
She recommended ways to get involved in the community and meet people, particularly emphasizing churches as a good starting place to gain supporters and spread your message. She said candidates should start attending services first once a month and then more frequently as the election approaches, eventually every Sunday. […]
Brown also warned people of sabotage on several occasions, saying volunteers or other members of your political campaign could be working for or bought out by an opponent. Even printing companies can be “political,” Brown said, claiming that one time a printing firm printed the wrong address on petitions, which could have gotten her thrown off the ballot if she hadn’t caught the error.
“It’s a dirty game,” she said. “It can either lift you up or tear you down.”
The BGA reporter paid for the training with a credit card via PayPal and the fees appear to go to a company called “Candidates360,” although there is no business registered by that name with the Illinois Secretary of State’s Office or the Cook County Clerk’s Office. […]
“You don’t want to go on camera if there’s something negative,” Brown said. “You stick your press spokesperson out there for the negative things.”
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Even more bad budget news
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* Ugh…
* COGFA’s February revenue report is entitled “February Freefall—Significant Downward Adjustment Coming in March”…
Overall base revenues fell $423 million in February. Like a broken record, monthly declines reflected weaker income taxes along with poor federal sources. Unfortunately, February’s lackluster performance was widespread with only a couple sources managing to show gains. One less receipting day likely contributed to the decline, though certainly not the primary culprit. […]
To date, gross corporate income taxes are off $482 million, or $422 million net of refunds. Gross personal income tax is down $375 million, or $456 million if refunds and diversions to the education and human service funds are included. Public utility taxes are down $67 million, in part due to a one-time accounting change at IDoR. The highly volatile inheritance tax is down $58 million. Vehicle use tax is behind $3 million, while cigarette tax is off $2 million. […]
To repeat comments from previous briefings, with continued dramatic falloffs month after month in federal sources, receipts are behind last year’s dismal pace by $565 million. Absent an infusion of resources that could be committed to reimbursable spending, the outlook for a meaningful recovery for federal sources remains grim.
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Playing with fire
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* The governor’s office tried its best to deal with the Chance the Rapper fallout…
After declaring his talks with Gov. Bruce Rauner accomplished nothing, Chance the Rapper donated $1 million to Chicago Public Schools on Monday — wowing his large fan base and creating an epic public relations nightmare for the Republican governor.
Chance, whose combined Instagram and Twitter following tops 7 million people, ripped into the governor after meeting with him on Friday. […]
Later Monday, Rauner’s office noted that he and his wife had donated some $7 million to Chicago schools in the past.
“While the Rauners are passionate donors to our schools, individual contributions will never be enough to address the financial challenges facing CPS,” Rauner spokeswoman Eleni Demertzis said in a statement. “It would be helpful if CPS officials came to Springfield and joined in serious good faith discussions about the long-term stability of all of our schools.”
While I totally agree that CPS ought to be doing a whole lot more to help pass some of this stuff, bigfooting a young rapper with money donated over 20 years is a bit much.
* Meanwhile, the governor said again today (click here) that Chicago should either bail out its own schools temporarily with a one-time infusion of TIF money (ironically enough, a position shared by the Chicago Teachers Union) or the pension reform proposal tied to that $215 million for CPS should be separated from the grand bargain and passed right away.
This reaction yesterday by Senate President Cullerton’s press secretary may have gotten buried in all the hooplah, so here it is again…
“We’ve split this out twice and Governor Rauner vetoed it both times, saying it had to be tied to be part of a comprehensive solution.
“Now we tie it to a comprehensive plan and he kills the deal and says it should stand alone.
“I think you can see why the Senate decided to try to negotiate its own solution and not negotiate with the governor.”
…Adding… Mayor Emanuel responds…
* In other developments, the Sun-Times went out of its way today to suggest that Chance was somehow being controlled by the powers that be. But scroll way down into the story and you’ll finally see the denials…
Top mayoral aides insisted Monday that Emanuel had nothing to do with Chance’s decision to go toe-to-toe with Rauner. Emanuel even tried to reach out to Chance over the weekend to coordinate with the music superstar, only to be ignored.
The mayor did manage to reach Ken Bennett, only to be told that Chance was not interested in coordinating with Emanuel.
“The mayor likes to be in control of everything. He has his own plan to save CPS and this is not part of it. But, Chance is his own man. He’s trying to solve this himself. Ken is not involved,” said a mayoral confidante, who asked to remain anonymous… “We’re not behind it at all and neither is Ken Bennett,” the aide said.
* As we discussed yesterday, the performing artist obviously did a lot of research on his own. To suggest he’s merely a tool of the city’s establishment is pretty darned patronizing…
Chance’s aggressive advocacy of Chicago public schoolchildren seemed to throw the governor off his game as there was no immediate way to blame his involvement on House Speaker Mike Madigan, Rauner’s usual all-purpose foil.
Exactly. So, instead, tie him to Rahm - the second most unpopular Democrat in Illinois.
Remember, it was Gov. Rauner who reached out to Chance with that congratulatory tweet on Grammy night. It was Rauner who agreed to a sitdown with the guy. It was Rauner who exchanged private phone numbers with him last Friday and then talked again to Chance over the weekend. This wasn’t some scheme hatched at the Grammy’s to entrap the governor. The governor did this on his own.
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* Press release…
With no relief in sight, Illinois’ finances deteriorated at an alarming rate in fiscal year 2016 as net deficit totals spiked to a staggering $126.7 billion, according to an annual report released on Tuesday by the Office of Illinois State Comptroller Susana A. Mendoza.
The State’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2016, paints a worsening outlook for the State’s financial future on this unsustainable path.
Mendoza said the CAFR findings reflect a lawless fiscal climate.
“Volumes of research go into this report, but I can summarize our State finances in one word: Abysmal,” she said. “During Governor Rauner’s first two years in office, our State moved from a budget impasse to a budget crisis. This third year of his administration has the makings of a complete financial meltdown. His failure in leadership has been so spectacular that, no aspect of the State has been spared. The numbers back that up.”
The 375-page report released publicly Tuesday provides numerous insights into Illinois’ ongoing financial decline:
The State’s total net deficit increased by $5.7 billion from $121 billion in June 2015, to $126.7 billion as of June 2016. The lion’s share of that liability is a pension shortfall of $116 billion;
The General Fund’s deficit increased by $2.7 billion, from $6.8 billion to $9.5 billion;
The State is spending less on its neediest residents: spending on health and social service programs dropped by $834 million in FY2016;
The 2015 expiration of the temporary tax increase cost the State $3 billion in revenue in FY2016;
As of June 2016, the State’s total outstanding bonded debt is $30.7 billion. The State paid $1.5 billion in interest on its borrowing in FY2016;
We are forced to spend more on debt service ($3.6 billion) than on public protection and justice ($3.1 billion);
The backlog of delayed payments to Illinois doctors and hospitals for treating patients on state health insurance, under Section 25 liabilities, has more than doubled from $1.9 billion to $4.3 billion.
While bond sales have provided the State a temporary lifeline, the cost of borrowing is going up. The State’s general obligation bond ratings were not favorable last June and both Standard & Poor’s and Fitch Ratings have since downgraded their ratings to BBB with a Negative Outlook.
Three years ago those bond rating agencies said the state was on the right track out of this mess. But they now universally point to Governor Rauner’s failure to propose a balanced budget – or to hold budget proposals hostage to passage of his various unrelated pet projects – as the main cause of Illinois’ downward financial spiral: “Illinois’ fiscal crisis is, in our view, a man-made byproduct of policy ultimatums placed upon the state’s budget process,” Standard & Poor’s wrote in its most recent critique.
Mendoza said without principled leadership and a complete budget that provides for a sustainable financial future, the outlook remains bleak.
“The Governor is required by the State Constitution to prepare and submit a balanced budget to the legislature, but last month he handed the General Assembly a proposal in which expenditures exceeded revenues by $7 billion. Then he killed what was supposed to be a bipartisan Senate ‘Grand Bargain’ that could have provided a path to a better financial future. With 90 percent of State spending managed by court order, no plan to normalize our fiscal situation, and his recent establishment of ‘government shutdown prevention funds,’ it looks like Governor Rauner is trying to drive our State into bankruptcy,” she said.
The governor’s proposed expenditures exceeded revenues by $4.6 billion. If nothing was done, then spending would’ve been about $7 billion higher than revenues, but that’s the whole idea of a budget plan - to match spending with revenues. Rauner obviously didn’t do that, but this is a mistake that’s also been made by Senate President Cullerton and a few Chicago reporters. The comptroller shouldn’t do it. The actual facts are bad enough.
Anyway, the report is here.
*** UPDATE *** From Eleni Demertzis in the governor’s press office…
“As a decade long member of the General Assembly, Comptroller Mendoza was a leader in passing the very policies that helped plunge our state into its dire fiscal situation. The governor continues pushing for a truly balanced budget along with changes to our system that create jobs, strengthen schools and provide for our human services.
Instead of issuing press releases and pointing fingers, Madigan’s Comptroller should be urging her former colleagues in the General Assembly to help us pass a truly balanced budget and much needed structural changes.”
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Support House Bill 40
Tuesday, Mar 7, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
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It’s just a (dental) bill
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* Tom Lisi…
Dr. Ronald Lynch runs a family dentistry in Jacksonville. He says approximately 20 percent of his patients are state workers. Because Illinois is still running with no budget, the state has not been paying its employees’ health bills on time — and the delays are growing.
Lynch says he’s currently waiting on about $170,000 in bills from the state of Illinois. That’s all from care he’s already given to patients who work for the state. The last payment he received from Illinois was for work he did in November of 2015.
That means a state employee went to see Lynch just after the Kansas City Royals won the World Series, and Lynch has only recently gotten paid for it.
Some dentists around the state have already resorted to asking state workers to cover the cost of care up front. That way, they argue, at least the burden is spread over many patients, not funneling into their dental practices.
That reasoning is behind new legislation forwarded by an Illinois dental industry group. The proposal would make it easier for dentists who work in the same insurance network as state workers to stop taking on the liability of all these unpaid bills. […]
It may help practices like Lynch’s, but not all. Dr. Elizabeth Knoedler is a dentist in Springfield with Prairie Dental Group. She says 60 percent of Prairie’s patients are state workers, and most of them would not be able to afford to pay out of pocket, and then wait the many months to be reimbursed by Illinois.
* The bill is SB 634 and has bipartisan co-sponsorship. From its synopsis…
Amends the State Employees Group Insurance Act of 1971. Provides that the failure of the State of Illinois to adequately reimburse a dental provider for a period of 6 months from the date a claim was submitted may be considered by the provider to be a material breach of any associated participating provider contract utilized by the State for its employees. Provides that a dental provider who has an existing contract that provides services to State employees under this Act and who has not received timely reimbursement for services for a period of 6 months: (1) may consider the associated provider contract null and void for the State of Illinois; (2) may opt out of the obligation to provide services under the terms and conditions of the associated provider contract without penalty by the State or the administrator of the dental plan including any provision that allows for termination from any other commercial plans administered by the dental insurer without cause; and (3) shall, upon providing notice, be deemed an out-of-network provider from that time forward. Effective immediately.
Thoughts?
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* Brian Brueggemann at the BND…
Monroe County Board Chairman Bob Elmore announced Tuesday that he plans to run for state representative as a Republican in the 116th Illinois House district.
The district currently is represented by Rep. Jerry Costello II, D-Smithton.
Elmore, a retired businessman who resides in Waterloo, said state lawmakers “have created an anti-business atmosphere and have made poor policy decisions.”
He said his campaign slogan is “Let’s Make Illinois Great Again.” […]
Elmore said Costello should not have voted in favor of Michael Madigan, D-Chicago, to again serve as House speaker.
“We need to give the voters a choice,” Elmore said. “Do they want to keep going the same way, or change the direction?
President Trump won that district by 36 points. Costello has a great ballot name and works hard, but this isn’t gonna be an easy race. Also, Elmore’s Monroe is the largest county in the district, counting for about 37 percent of ballots cast last year.
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The big squeeze on higher ed
Tuesday, Mar 7, 2017 - Posted by Rich Miller
* Sun-Times…
After two years of funding cuts from Springfield and no end to the state budget stalemate in sight, Governors State University will increase tuition 15 percent and cut 22 programs, the south suburban campus announced.
The move comes as the campus of about 6,000 students copes with a 50 percent decrease in state funding for the 2016-17 school year. Board of Trustees members approved the changes at a meeting Friday, spokeswoman Keisha Dyson said.
Among the programs to be cut is the bachelor’s degrees in Economics, and the master’s program for education.
The tuition increase is the first in two years, and the school has cut a total of 35 degrees and certificate programs during the past two years. Last year, 63 staff positions were cut. During the 2016 fiscal year, GSU saw its state funding decrease more than 70 percent, to $6 million.
The last two years, the school has received about $18 million from the state total, less than the $24 million it received in just fiscal year 2015 — the year Republican Gov. Bruce Rauner took office, and the last year the state Legislature passed a budget.
The problems at GSU obviously long predate the Rauner administration. But things have only gotten worse since then.
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* Illinois Policy Institute press release…
More than half of Illinoisans say state government spends too much money, and should close its budget deficit by only cutting spending – not raising taxes. This is according to a new poll of likely Illinois voters, released today by the non-partisan Illinois Policy Institute.
The state has been without a full year’s budget for almost two years. The Illinois General Assembly is expected to take up a budget proposal from the Illinois Senate, called the ‘grand bargain.’ This proposal would enact massive tax increases and accomplish little with regard to transformative spending or economic reforms. The poll results show the main components of the ‘grand bargain’ are significantly out of step with how Illinois voters would like their elected officials to end the historic budget impasse.
“The poll results are clear: Illinoisans from both sides of the political aisle are fed up with tax increases and do-nothing legislation sold to them as ‘reform.’ They know state government spends more than it should, and they feel the pain of high income and property taxes,” said John Tillman, CEO of the Illinois Policy Institute.
The poll was conducted by Fabrizio, Lee & Associates, and surveyed 600 likely voters from across Illinois on Feb. 28 and March 1. Sixty-four percent of those surveyed self-identified as either moderate or liberal, and 42 percent described themselves as Democrats. The poll has a 4 percent margin of error.
Key findings from the poll:
80 percent of Illinoisans surveyed supported spending cuts as a vehicle to balance the state budget; more than half of Illinoisans said spending cuts should be the only tool used to close the budget deficit.
7 percent of Illinoisans surveyed said the state should raise taxes without cutting spending.
70 percent of respondents said property taxes are too high; only 2 percent of respondents said property taxes are too low.
60 percent of Illinoisans surveyed ranked state income taxes as too high.
81 percent of Illinoisans said the state is headed on the “wrong track.”
* The poll…
Generally speaking, would you say that things in the STATE OF ILLINOIS are headed in the right direction or would you say that things are seriously headed off on the wrong track?
Right direction 11
Wrong track 81
Don’t Know/Refused 8
Generally speaking, when it comes to how much the state government spends overall, which of the following comes closest to you opinion…(ROTATE READING 1-3 or 3-1)
State Government spends too much 57
State Government spends about the right amount 15
State Government doesn’t spend enough 21
Unsure (DO NOT READ) 5
Refused (DO NOT READ) 2
Generally speaking, when it comes to STATE taxes, which of the following comes closest to your opinion… (ROTATE READING 1-3 or 3-1)
State taxes are too high 60
State taxes are just about right 31
State taxes are too low 8
Unsure (DO NOT READ) 1
Refused (DO NOT READ)
Generally speaking, when it comes to PROPERTY taxes, which of the following comes closest to your opinion…(ROTATE READING 1-3 or 3-1)
Property taxes are too high 70
Property taxes are just about right 24
Property taxes are too low 2
Unsure (DO NOT READ) 3
Refused (DO NOT READ) 1
As you may know the state faces a significant budget deficit. The state constitution requires that the state have a balanced budget. Which of the following would you favor MOST to balance the state budget… (ROTATE READING 1-3 or 3-1)
ONLY cut state spending and do NOT raise taxes 51
Cut some state spending and raise some taxes 35
Do NOT cut state spending and ONLY raise taxes 7
Unsure (DO NOT READ) 5
Refused (DO NOT READ) 2
Please tell me whether you agree or disagree with the following statement. (PROBE: Strongly/Somewhat agree/disagree) “Illinois state lawmakers should pass major structural reforms before passing any tax increase.”
TOTAL AGREE 79
TOTAL DISAGREE 14
Strongly Agree 48
Somewhat Agree 31
Somewhat Disagree 7
Strongly Disagree 6
Unsure (DO NOT READ) 6
Refused (DO NOT READ) 1
* Methodology…
SAMPLE SIZE: N=600 Registered Voters - 45% cell phone users
People always think that government spends too much and should make big cuts. Give them choices on those cuts, however, and they don’t generally love them.
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* From a freshly minted Chicago Tribune editorial on last Wednesday’s grand bargain collapse…
What will Rauner and the GOP members of the Senate propose that will hit the sweet spot of satisfying recalcitrant Republicans and bringing Democrats back to the table? Because try as some in the GOP might, they cannot solve the budget impasse, or any of the state’s severe problems, without Democratic support.
Republicans derailed the package last week. This is theirs to fix.
A recap: The fragile budget compromise in the Senate, which includes a dozen bills strung together and an income tax hike, collapsed when Republican senators backed away. They abandoned their leader, Sen. Christine Radogno, who had negotiated the compromise with Senate President John Cullerton.
Rauner, along with the right-leaning Illinois Policy Institute and its allies who want more pro-business, pro-growth reforms in the deal, began pressing to stall it. Senate Republicans who supported the compromise were threatened with potential primary opponents in 2018, a strong-arm tactic not unlike those employed by House Speaker Michael Madigan. Republicans routinely accuse Madigan of using his clout and war chest to leverage cooperation from incumbents. Cross him and there’s a price to pay.
It’s the circular dysfunction of a small-D democratic government in Illinois: The self-serving calculus of re-election always seems to eclipse attempts at problem-solving. This time, it was Republicans playing on clout, threats and leverage.
A bit harsh, which is even weirder considering the source.
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How about we can the cynicism?
Monday, Mar 6, 2017 - Posted by Rich Miller
* From a city hall reporter…
* Except, if you look at Chance’s Twitter page, you’ll see that he responded to and then retweeted this post a few days ago…
Ironically enough, as noted in the tweet, that excerpt was from a recent Tribune story.
* This doesn’t mean that the rapper didn’t get some help or some coaching. He can afford to pay for it and his father has been in Chicago politics for a very long time, including a stint with Mayor Emanuel.
But, again, if you scan through his Twitter page you’ll see that he did a bunch of homework before today’s press conference. Give the guy a little credit. Not everyone’s a tool.
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* OK, it’s over now. Click here for an archived video. Or click here for the Facebook version. And here’s a quickie roundup of what went on…
*** UPDATE *** From his statement: “Gov. Rauner broke his promise to Chicago’s children a few months ago as the result of an admitted emotional reaction when he vetoed the $215 million, funding the Chicago schools were counting on to close out the school year.”
“Our kids should not be held hostage because of political positioning,” the rapper said. “If the governor does not act, CPS will be forced to end school 13 days early, which means over 380,000 kids will not have adult supervised activities in June, and could possibly be put in harm’s way,” he said.
“While I’m frustrated and disappointed in the governor’s inaction, that will not stop me from continuing to do all I can to support Chicago’s most valuable resource, it’s children.” He then announced the million dollar donation and asked others to do the same.
“I’m going to throw one more in,” he said after thanking several people. “Gov. Rauner, do your job.”
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The other side of a hugely popular issue
Monday, Mar 6, 2017 - Posted by Rich Miller
* Charlie Wheeler writes about the governor’s proposed permanent property tax freeze…
The bulk of property taxes payable last year — $16.9 billion, or 59 percent — went to local public school districts across the state, the chief revenue source for preK-12 education in Illinois, according to the state revenue department. Property taxes accounted for roughly 63 percent of schools’ operating resources, according to the state education board. Excluding retirement contributions, the state’s share was only about 26 percent of the total, well below the 44 percent national average. Federal funds completed the picture. […]
Phillips notes that the foundation level — the per-pupil dollars the state guarantees to each school district under a complex general state aid formula — has been stuck at $6,119 since Fiscal Year 2010, even as costs rise. Moreover, formula funding had been prorated since the 2012 budget year, so that districts received between 87 percent and 95 percent of the funds to which they were entitled. To his credit, Rauner ended proration in the current budget, in part by shifting money from special education programs to cover fully formula claims. He’s also proposed a $30 million increase for FY 2018 to fund fully general state aid. In addition, his plan would boost transportation funding by $145 million, hike early childhood spending by $50 million, provide an additional $38 million for bilingual education, and increase outlays for various other programs by some $12 million.
While the additional dollars would be welcome, the state’s stricken finances have forced schools to wait months for cash promised them in the current budget, as grant money for special education, transportation, and other programs languish in the massive bill backlog, pegged at $12-plus billion plus this week by the comptroller’s office. For example, districts have yet to receive any grant money for FY17, now eight months old. […]
Had a freeze been effect last year, [Monticello Community Unit School District 25] would have lost about $175,000 in revenue from its $16 million budget, equivalent to the cost of four teachers, Zimmerman said. The savings would have amounted to about $31 to the owner of a $150,000 home in Monticello. […]
While a property tax freeze poses the greatest threat to local schools’ revenues, Rauner’s recommended FY 18 budget includes several other proposals likely to increase their costs. As part of his cost-saving suggestions, the governor would provide no funding for after school programs, advance placement classes, arts/foreign language instruction, and other programs, according to legislative analysts. Would parents expect their local schools to keep some of those offerings, even with no state dollars to help defray costs? […]
An even bigger burden is embodied in the governor’s ambitious proposal to cut state contributions to pension systems for public school teachers outside Chicago and other public workers. Under his plan, local school districts and public universities— not the state — would pay the full retirement costs for new teachers and other workers, a cost-shift that would save the state an estimated $500 million, with schools and universities picking up the tab.
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Question of the day
Monday, Mar 6, 2017 - Posted by Rich Miller
* From the synopsis of HB 494…
Amends the Liquor Control Act of 1934. Provides that the provisions of the Act prohibiting the possession and consumption of alcoholic liquor by a person under 21 years of age and dispensing of alcoholic liquor to a person under 21 years of age do not apply if the person under 21 years of age (1) is on premises where a restaurant is operated and the sale of alcoholic liquor is not the principal business carried out on those premises and (2) is under the direct supervision and approval of his or her parents or parent or those persons standing in loco parentis of the person under 21 years of age.
This is primarily for restaurants. The drinkers must be at least 18 and the restaurants can refuse to serve them.
* CBS 2…
The law would be similar to one in Wisconsin, which allows those under 21 to drink with a parent or legal age guardian present.
Republican State Representative Barbara Wheeler is the chief sponsor and Democrat Kelly Burk is the co-sponsor. Republican Joe Cichowski of Rockford says he is not opposed to the idea.
“They want to let them have a small glass of wine or a taste of wine, and I don’t think it’s a concept that a lot of parents would have too much concern with.”
But a bar owner told our sister station in Rockford, WIFR, that he does not support the notion.
“I don’t believe that 18-year-olds are ready to consume alcohol even under the supervision of their parents. And how can you regulate?”
* The Question: What are your thoughts on this bill?
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* Here we go again…
* It starts like this…
Hi everybody. As you all know, Attorney General Madigan went into court last month, trying to force a government shutdown. At the same time, Speaker Madigan had a government shutdown bill ready in the legislature. And Comptroller Mendoza refused to fight for state employees. Fortunately for us, they all lost. A judge ruled state employees must continue getting paid and support for the Madigan Shutdown Bill collapsed in the House.
Actually, AG Madigan was simply attempting to clarify that state bills shouldn’t be paid without valid appropriations. Speaker Madigan proposed a bill to fund state worker salaries through the end of the fiscal year. And Comptroller Mendoza didn’t do as the governor ordered and hire her own lawyer in that AG Madigan fight.
* Back to the governor…
Sadly, it appears the fight isn’t over. Since the court ruling, Comptroller Mendoza has been looking for other ways to create a crisis and force a shutdown of state services.
She’s cut hardship payments to the Department of Aging by millions of dollars, putting services for the elderly in danger of collapse. She’s delayed payments to critical vendors at the Department of Health and Family Services and the Department of Corrections. And now she’s threatening not to process payroll for nearly 600 state employees.
This latest attempt to force a crisis is a clear violation of a court order to pay state employees. It’s part of a pattern we’ve seen. Trying to create a crisis that would force another incomplete, stopgap budget or a massive tax hike with no changes to our broken system.
The payroll for nearly 600 state employees was submitted to the comptroller last week. It’s a valid payroll, no different than the payrolls she’s processed since she became comptroller. And by court order she is legally obligated to process it once again. But she is continuing to resist.
To state employees, please know that we will use all of our legal options to make sure Comptroller Mendoza processes the payroll we’ve submitted on your behalf, on time and in full.
And to the social services providers and vendors she’s putting at risk, we will forcefully advocate on your behalf as well.
Thank you for your support to keep government operating as we work for changes to fix our broken system.
The background on the payroll dispute is here, in case you need to refresh your memory from last week. I’ve asked the comptroller’s office for comment on this aspect and the rest of the allegations.
*** UPDATE 1 *** Background…
Today the Rauner Administration filed a motion in St. Clair County, asking the court to direct Comptroller Mendoza to continue paying state employees in compliance with the court order that has done so since July 2015. That order provides that state employees must be paid for the work they perform and orders Mendoza to process lawful payment vouchers submitted for that purpose. The Rauner Administration submitted a lawful voucher late last week for 578 employees of the Illinois Central Management Services. The Comptroller to date has refused to process it. That is a clear violation of the court order. Our filing today shows the Administration’s commitment to ensuring that all state workers continue to receive regular, uninterrupted paychecks.
The motion is here.
*** UPDATE 2 *** Comptroller’s office…
Instead of fulfilling his constitutional duty to propose a balanced budget, Governor Rauner is concocting ridiculous conspiracy theories and wasting more taxpayer dollars.
It gets harder to take him seriously when what he presents in his tweets and court filings has so little basis in reality.
CMS
Payroll records show that under Rauner’s handpicked “wingman” comptroller, the Dept. of Central Management Services consistently used the Garage Fund and the Maintenance fund to pay for 578 employees who work on maintenance and in state garages.
Now Governor Rauner suddenly wants to hoard those funds which he has tellingly renamed “government shutdown prevention funds” and instead raid the state’s General Revenue Fund, which would take critical funds away from nursing homes, hospice care and care for the disabled.
Instead of using the funds that are $93 million in the black, Gov. Rauner wants to raid the fund he put $12.5 billion in the hole by failing to propose a balanced budget for the last three years.
Rauner’s administration has more than enough money to pay employees from the department’s self-protected funds. The only reason to draw attention to this issue now is to manufacture a phony headline about state employees in “danger” of missing a paycheck. This is just one of many phony stories Rauner’s administration has shopped in recent weeks, like the Dept. of Aging hoax. Expect more: All just as phony.
No employees will miss any paychecks if the administration uses the money that the General Assembly authorized them to use and the Governor signed. The administration can continue using those funds for payroll as they always have. Or they can choose to create a phony crisis for P.R. value and continue playing politics with people’s lives.
Dept. of Aging
While the comptroller and her staff work tirelessly to triage the state’s obligations and do all they can to prevent closures and shutdowns, the governor is more interested in using state employees as political pawns to score political points.
In her first three months in office, The Comptroller made the elderly a greater priority than the previous administration by processing more than $110 million to providers in Department on Aging programs. The Governor is peddling the black-is-white falsehood that the Comptroller has “cut” payments to Aging while he proposes cutting the Community Care program and kicking 40,000 elderly people out of the program and forcing them into nursing homes. That’s the real Bruce Rauner - not the Twitter version.
All outside observers agree the main reason for the state’s financial crisis is the Governor’s failure for the third year in a row to propose a balanced budget for the General Assembly to consider.
Even Standard & Poor’s wrote, “Illinois’ fiscal crisis is, in our view, a man-made byproduct of policy ultimatums placed upon the state’s budget process.” In other words, Gov. Rauner owns this fiscal disaster.
Our office and Attorney General Lisa Madigan’s office will present to the court today the history of CMS payments coming from the Garage and Maintenance funds and Gov. Rauner’s attempt to rewrite history.
*** UPDATE 3 *** Ouch…
She even quotes Chance the Rapper at the end.
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* This isn’t going to die down soon…
*** UPDATE 1 *** Interesting…
Gov. Bruce Rauner’s administration is recommending two solutions to address the Chicago Public Schools’ teacher-pension mess — allowing Mayor Emanuel to use TIF funds to fill a $215 million hole, or adding the funding to the Illinois Senate’s pension bill and taking it out of the “grand bargain” budget package.
The options are outlined in a memo obtained by the Chicago Sun-Times. This memo is from Rauner’s policy head Michael Mahoney to Rauner’s chief of staff Richard Goldberg.
It comes days after Chance the Rapper brought national attention to the school district’s money woes after a meeting with the governor on Friday.
The TIF, short for tax-increment financing, option would allow Emanuel to transfer $215 million for a one-time authorization from Chicago TIF funds to CPS. It would require that the Illinois General Assembly pass legislation to allow that funding.
* The memo…
As you know, Chicago Public Schools continues to request an additional $215 million from the state to help the city fund the normal cost of teacher pensions and retiree healthcare expenses this year. This request is in addition to the $102 million increase the city received in General State Aid, Hold Harmless, and Equity Payments for the current school year and on top of the $250 million in additional funds CPS receives through its special block grant as compensation for the state not picking up its normal pension cost for teachers.
At present, there are two paths toward a legislative agreement that could fulfill the city’s request.
1) Authorize Chicago to Transfer TIF Funds: In 2016 the City of Chicago received $461 million in Tax Increment Financing dollars. Under current law, TIF funds can only be used to promote investment and economic development. However, given the extraordinary mismanagement of both the city and CPS budgets, legislation could be enacted to authorize a one-time mayoral transfer of $215 million from Chicago TIF funds to CPS. We are in the process of drafting this legislation in case the General Assembly, the Governor and other advocates want to move on this idea quickly.
In order to address the long-term financial future of Chicago Public Schools, we also recommend that Chicago revise their policy on TIF districts and collect taxes for education. This solution is in place across the state and represents a compromise that both attracts business investment and supports public schools.
2) Add the CPS Request to SB16 and Pass the Pension Package Separate from the Grand Bargain: Senate President Cullerton recently unveiled his plan to enact statewide pension reform. SB16, now pending in the Senate, applies President Cullerton’s consideration model to state pension systems and the Chicago teachers’ pension system; enacts a new Tier 3 hybrid pension plan for the state and local governments; and makes other critical changes to reduce state pension payments in the future. While this bill is currently tied to the “Grand Bargain” in the Senate, this bill could be broken off from the “Grand Bargain” and amended to add the city’s request to pick up the normal cost of teacher pensions and retiree healthcare expenses in this fiscal year. Such a comprehensive pension reform agreement would satisfy the deal we made last summer and could be signed into law without delay.
*** UPDATE 2 *** CPS’ Emily Bittner responds…
“Yet again, Governor Rauner is perpetuating a racially discriminatory state funding system and his so-called plan actually demands that Chicago students do more to get the same funding that every other student in the State of Illinois is entitled to receive – a gross disparity that has no place in 2017. Chicago residents stepped up and are paying $342 million more in taxes this year alone to support schools, and it’s past time for the state of Illinois to end the racial discrimination that is creating a separate and unequal funding system.”
*** UPDATE 3 *** John Cullerton press secretary John Patterson
“We’ve split this out twice and Governor Rauner vetoed it both times, saying it had to be tied to be part of a comprehensive solution.
“Now we tie it to a comprehensive plan and he kills the deal and says it should stand alone.
“I think you can see why the Senate decided to try to negotiate its own solution and not negotiate with the governor.”
* Related…
* Rolling Stone: Chance the Rapper to Illinois Governor: ‘Do Your Job’
* Vibe: Chance The Rapper Continues Mission To Improve Chicago Schools After Disappointing Meeting With Illinois Governor
* AP: Chance the Rapper, Illinois governor discuss school funding
* The DePaulia: Taking a chance to save CPS: In 1970, rock n’ roll legend Elvis Presley was frustrated with a counter culture, influenced by acts like the Beatles and the use of illicit drugs, he believed to at the center anti-Americanism.
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The big squeeze
Monday, Mar 6, 2017 - Posted by Rich Miller
* Quincy’s John Wood Community College is taking a big hit…
By design, the state is to supply one-third of funding for each of 48 community colleges in Illinois. In fiscal 2016, JWCC received a fraction of that fraction.
How bad was it?
In fiscal 2012, the college received close to $3.1 million from the state. In fiscal 2016, the figure had fallen to just under $344,000. […]
Over the last four fiscal years, JWCC has reduced its budget by $1.4 million. Most of that figure has come in the last two years when the college put a freeze on open positions, furloughed some employees at different times, eliminated a couple of programs, reduced travel costs, delayed equipment purchases and deferred maintenance projects.
* Related…
* Delay sends Richland project costs up by $485,000: The money was finally appropriated in the state’s 2010 budget… A ceremonial groundbreaking was held in October 2014 with then Gov. Pat Quinn… The structure that is to become the college’s Student Success Center has been sitting unfinished for nearly 17 months. But that has changed in recent weeks, as general contractors from Highland-based Korte & Luitjohan have restarted work on the long-delayed project.
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Poll: Rauner, sugar unpopular here
Monday, Mar 6, 2017 - Posted by Rich Miller
* My weekly syndicated newspaper column…
According to a recent poll, Gov. Bruce Rauner is a whole lot less popular than a one cent per ounce state sales tax on sugary drinks.
The poll of 800 registered voters taken February 15-20 for the American Heart Association found that Rauner is backed by just 32 percent against an unnamed Democrat, who would receive 47 percent. But a new penny per ounce tax on sugary drinks is actually supported by a majority of those polled, 56 percent, compared to 41 percent who oppose it.
“In the 2018 election for governor,” the Democratic pollster Anzalone Liszt Grove Research asked, “are you more likely to vote for the Democratic candidate or Republican Bruce Rauner?” 42 percent said they were more likely to vote for the unnamed Democratic candidate and another 5 percent said they leaned that direction, for a total of 47.
And now you know why the governor deposited $50 million in his campaign fund late last year.
Rauner’s dismal rating shouldn’t be too much of a surprise. He’s gone two years without many accomplishments and without passing, or even proposing a “real” budget. The 15-point Democratic margin is about the same margin that Hillary Clinton won Illinois by just a few months ago. The electorate may well be different by the time 2018 rolls around. Also, an actual named candidate could do worse against Rauner. You can’t beat somebody with nobody.
The governor and his people have been saying for weeks that a tax on sugary drinks was only unpopular under the Statehouse dome with lobbyists and legislators. The two Senate leaders have said there is no way they can round up enough votes to include the tax hike in their grand bargain package, however. The Heart Association has been running a huge national ad campaign against sugar itself, and the issue appears to have caught fire.
The penny per ounce tax is backed by 62 percent of Democrats, 50 percent of Republicans and 51 percent of independents, according to the pollster. It’s supported by 60 percent of Chicagoans, even though Cook County just instituted its own penny per ounce tax. 53 percent of suburban residents and 51 percent of Downstaters support the tax. 54 percent of whites, 54 percent of African-Americans and 71 percent of Latinos back the plan, according to the poll. And after being read both positive and negative statements about the penny per ounce sugary drinks tax, support actually rose to 67 percent versus 32 percent in opposition. The poll’s margin of error is +/-3.5 percent.
The poll also revealed that the public may be as divided about the budget as many rank and file lawmakers. When asked whether they preferred to continue along the same budgetary path without raising taxes, 38 percent agreed, while just 44 percent said they supported “Fixing the state’s budget with tax increases as part of that fix.” 18 percent either didn’t know or refused to answer.
Just 4 percent said that raising taxes without spending cuts is the right way to go, while 35 percent said they prefer cutting spending with no tax hikes and 58 percent said they favored a mix of both spending cuts and tax hikes.
But not a single tax hike except the sugary drinks tax is supported, and a look at those poll results gives you a good idea why crafting and then passing a solution to this state’s horribly vexing dilemma is so darned difficult.
For example, a plan to raise the state income tax from its current level of 3.75 percent to 4.99 percent is opposed by 66 percent, with 49 percent strongly opposed. Just 31 percent support that income tax hike, which is the backbone of the Senate’s grand bargain proposal. A mere 12 percent strongly support the idea.
Lowering the overall sales tax rate by a half a point and expanding that tax to food and medicine is opposed by 64 percent, while only 31 percent support it. Gov. Rauner voiced opposition to this idea during his budget address, and now you can see why. 43 percent were strongly opposed.
Asked if they supported expanding the sales tax “to include taxing services like home repairs and landscaping,” a plan long favored by the governor, 60 percent were opposed while 37 percent supported it. 40 percent said they were strongly opposed.
The most unpopular idea tested, by far, was cutting Medicaid spending by “hundreds of millions of dollars, including coverage for low income seniors and children.” A whopping 78 percent were opposed to that idea, including 65 percent who were strongly opposed. Only 19 percent were in favor.
Subscribers have all the toplines, etc.
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Boss Rauner?
Monday, Mar 6, 2017 - Posted by Rich Miller
* Finke…
You can’t blame this one on House Speaker Michael Madigan, although it wouldn’t be surprising if someone tried.
The recurring theme from Gov. Bruce Rauner and most Republicans for months has been that Madigan is the one blocking a resolution on the budget stalemate. Specifically, it was Madigan and the lawmakers he controls, according to the theme.
No doubt, Madigan is a very powerful politician. But even Madigan doesn’t control the Republicans. The Republicans, it appears, are controlled by Rauner, and the governor isn’t ready to accept the Senate’s “grand bargain” that’s been negotiated and tweaked for a couple of months now. Consequently, it was the Senate Republicans last week who effectively pulled the plug on the plan, at least for now.
Senate Democrats immediately charged that some of their Republican colleagues said Rauner threatened them if they voted in favor of the plan. Several Republicans denied that claim. But then, threats don’t have to be blatant to be delivered. Do you think there’s any Senate Republican who doesn’t recall that Rauner bankrolled a primary challenger to Sen. Sam McCann, R-Plainview, last year after McCann voted in favor a labor bill against Rauner’s wishes? So if Rauner says he thinks the bargain isn’t ready yet, enough said.
* Rauner says he still wants a deal…
But the governor called the notion that he was responsible for scuttling the compromise by threatening GOP lawmakers “ridiculous” and “goofy.”
“We’ve been trying to get a grand bargain and a compromise to grow jobs, get a balanced budget and properly fund our schools for months and months, and nobody wants to get a grand bargain more than me,” Rauner told reporters on Friday.
“And I’m willing to compromise. I’ve said there’s nothing that has to be in the deal. There’s no one thing or no two things that have to be in the deal, and I’m encouraging as I always have, both Democrats and Republicans to come together to compromise and get a deal and I’m encouraging it every day.”
* The SJ-R wants the Senate to keep trying…
On behalf of Illinois’ taxpayers, we implore Cullerton and Radogno to not give up. No one else has been willing to work on the difficult task of compromise. While most politicians under the dome view compromise as defeat, Cullerton and Radogno embraced it as a path toward fiscal stability and hope for the state.
* And this is a good point by the News-Gazette editorial board…
If it was easy, an agreement would have been reached long ago.
Yep.
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Today’s must-listen
Monday, Mar 6, 2017 - Posted by Rich Miller
* The Daily Line…
Dean Angelo, President of the Fraternal Order of Police Lodge 7, the union that represents all rank and file members of the Chicago Police Department, spoke with Mike Fourcher about reform in the wake of the Department of Justice probe, how aldermen have dropped the ball in at-risk communities, and the union’s collective bargaining agreement with the city, which expires this summer. Angelo, currently serving his first three-year term as union president, and campaigning for re-election claims Chicago police are unbiased about who they serve and “we go” to serve communities regardless of the circumstances. Ballots for the union campaign are due later this month and Angelo is up against his predecessor, Mike Shields and three other candidates.
The headline on the piece quotes Angelo as saying that Chicago police “care about black lives more than most black politicians.”
* Go listen to the whole thing.
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