* 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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