Question of the day
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Which Democratic gubernatorial candidates do you think will actually file petitions to run for office in December? Explain.
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Today’s deep thought
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* The governor tweeted this out today…
Good point.
* But check out this reply…
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Lawsuit filed over video gaming profit split
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* The plaintiffs are represented by Dan Webb and other Winston & Strawn attorneys. Press release…
The State of Illinois is forcing thousands of small businesses across the state to cough up half of their profits to video gaming operatives - a mandated shakedown that violates the constitutional rights of thousands of bar and restaurant owners.
According to a lawsuit filed Tuesday in Cook County Circuit Court, the state’s Video Gaming Act is written in a way that also deprives those locally-owned businesses of millions of dollars in potential revenues, while shorting the state of much-needed revenues, as well. An analysis of revenue figures shows the law costs local businesses as much as $150 million annually – or nearly $25,000 a year for an average bar or restaurant.
Some of those businesses are now suing the Illinois Gaming Board, stating the law “serves no rational purpose” other than to illegally line the pockets of those who own coin-operated video gaming machines
.
“I can think of no other industry where, by law, a business is forced to give up 50% of their profits and is strictly prohibited from even trying to negotiate better terms,” said attorney Dan K. Webb, of Winston & Strawn, whose firm filed the complaint. “This law is not only unconstitutional, it provides a gravy train of unearned cash for big gaming businesses that make little investment in Illinois.”
Though video gaming existed illegally in Illinois for years, a law to legalize it was passed in 2009 and took effect in 2012. Its purpose was to help small, locally-owned businesses grow. Since then, nearly 6,000 bars, restaurants and cafes have added to their revenues by installing a few gaming machines in their business. Those machines have led to new job creation, more than $3 billion in net revenues and created nearly $1 billion in state and local tax revenues. Last year alone, those establishments added $277 million to state coffers and $55 million more to local governments.
Once those taxes on the machines are paid, local businesses aren’t allowed to keep whatever is left. Instead, by law, they must give up half of those profits to the companies that delivered the machines – an unfair demand, given that the bars, restaurants and cafes are funding the operations and expenses of the business.
Scroll down…
After significant lobbying by the terminal operators, the state mandated in February that nearly all promotional efforts to attract customers to play the games – and increase revenues – be shouldered by those who own the business, even as they are forced to give away 50% of all of their profits to the terminal operators. As an example, the state agreed to implement new rules this year, saying terminal operators aren’t even allowed to help pay for a bag of peanuts as a free give-away to players.
The Liquor Control Board has the same sort of rules for taverns and it’s goofy. One of the few disagreements I ever had with the late Steve Schnorf was the liquor commission rule that tavern owners couldn’t use coasters supplied by distributors. Schnorf was the commission’s chairman for years. The rule is why coasters mostly disappeared from lots of small bars, only to eventually reappear when the video terminal operators started handing them out to the owners. I hate using napkins as coasters, but here we go again.
* Anyway, my petty little complaint aside, the lawsuit is here. A sampling of what bar and restaurant owners are missing out on is here. We’re talking some serious bucks.
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* From the twitters…
* OK, let’s back up to this SJ-R story from last month…
The Illinois Department of Human Services is taking over the former Barney’s Furniture space on South Grand Avenue East in Springfield.
DHS plans to use the space as a downstate, files warehouse. Five employees will work at the building, which will not be open to the public. Barney’s Furniture relocated last year to expanded space at 1987 Wabash Ave. after 41 years at 2410 South Grand Ave. E.
“The employees will be retrieving, sorting and maintaining files on a daily basis,” DHS said in a statement. “Efficiencies include the consolidation of required (record) retention efforts from other facilities, as well as the maintenance required to the current dispersed warehouse locations.”
DHS has signed a five-year lease at a cost of $478,256 annually the first two years, $487,881 for years three and four, and $497,507 for the final year.
The property was valued at $1.1 million, but it was actually purchased from the Barney’s Furniture people for $750,000 and then leased to the state for a total of $2.4 million over five years. As you might imagine, the news has caused quite a stir in Springfield, and Sen. Andy Manar wanted to get to the bottom of it today.
* Under questioning by Manar, DHS Secretary James Dimas told the Senate Appropriations Committee today that his agency needed a place for file storage because it had lost another space in Dwight. CMS put the lease out for bids and this was the lowest one available, he said.
So, why didn’t the state just buy the building? Because without a capital budget, the state couldn’t purchase it, Dimas said. And without legislative authority, it couldn’t move money around to buy it, either.
Another DHS official pointed out that the owners had agreed to add to the building, which would’ve cost the state money even if it could’ve bought the property, which it couldn’t. The owners are also responsible for things like upkeep.
And considering how horribly late the state pays its bills, it probably has to pay a premium price to rent from anyone.
* So, I dunno if there’s a real scandal here, but it’s something that’s hard to explain and the potential “scandal” aspect is very easy to understand. From a recent letter to the editor in the SJ-R…
Why in the name of decency would the state pay over three times the value of the building over five years just to rent it?
How can the state find money to waste so exorbitantly, when they are 18 months behind paying my company, which is a state vendor, providing deeply discounted services to the people?
Shouldn’t the attorney general investigate such flagrant waste?
Something smells rotten here. But even if it is all legitimate, shouldn’t a government agency be charged with cutting wasteful spending, and instead securing a reasonable deal?
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Only one demographic holdout on legalization
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Let’s revisit the crosstabs of the recent Paul Simon Institute poll which found that 66 percent of Illinoisans support legalizing “recreational marijuana if taxed and regulated like alcohol.”
It turns out that every demographic but one supported legalization. Even folks you wouldn’t normally think would be in favor are in support, according to the poll. Conservatives (51 percent), Republicans (52 percent) and those 66 and older (51 percent) all want to legalize it.
* The only demographic to oppose legalization? According to the poll, 52 percent of born again Christians said they were against legalization, but 44 percent supported it and 32 percent strongly supported it.
However, 58 percent of self-identified born again Christians said they favored decriminalization. Just 38 percent were opposed.
We have decrim now. The sky hasn’t fallen. Decriminalization helps consumers, but the distribution networks are controlled by criminals, and some of those criminals are quite violent. So it’s time to take the next step.
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Pawar says he’s raised $325K
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Pawar has already reported $235K in contributions of $1,000 and more, so this appears to show he raised close to $100K in small contributions…
The Ameya Pawar for Governor campaign today announced that more than 1,200 people from across the state donated more than $325,000 and joined the grassroots movement to fight for a New Deal for Illinois. Ameya Pawar, 47th Ward alderman and Democratic candidate for governor issued the following statement:
“These numbers are just one more sign that people are sick and tired of Donald Trump and Bruce Rauner’s agenda and are responding positively to our concrete plans to create jobs, fairly fund our schools, and bring sanity back to the Governor’s office. I knew this race wouldn’t be easy, but I believed in the power of everyday people rising up to demand accountability from our government.
“I’m not a billionaire, and I didn’t start with a million dollar war chest. I don’t have the benefit of having led SuperPACs while entrenched in Springfield politics. But the groundswell of support as we visit people across the state has made it clear that Illinois families are hungry to put a progressive fighter in the Governor’s office.”
Interesting little shot at Daniel Biss for that LIFT PAC of his. Will the two of them go after each other to prove that they’re the “real” progressives in the race? Could be.
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Pritzker readying a formal bid
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Subscribers know more…
* Natasha heard the same rumors as Mary Ann…
Is billionaire businessman J.B. Pritzker closing in on a formal announcement for governor? A couple of top Illinois politicos told us Monday they were picking up signals that he was close to announcing. The Pritzker camp was mum about timing last night.
* He’s been signaling it on his Twitter account lately as well…
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* COGFA takes a look at the state employees group health insurance program…
As of February 28, 2017, the amount of SEGIP claims on hand is $4.2 billion and growing approximately $200 million per month. The current FY 2017 payment cycles are:
- CIGNA claims: 615 days for preferred providers, 692 days for non-preferred (CMS projects 450 days and 525 days for FY 18)
- Managed Care claims: Approximately 12 to 19 months, depending on the provider (CMS projects 17 to 28 months for FY 18)
- Prescription/OAP claims: up to 529 days for Prescriptions, 329-362 days for OAPs (CMS projects 465 days for Prescriptions and up to 480 days for OAPs in FY 18)
- Dental claims: 220 days for network claims, 383 days for non-network claims (CMS projects (250 and 450 days for FY 18)
* More bad news…
In FY 2009, the annual liability per participant in the group health insurance program was $5,893.
According to CMS, the estimated liability per participant for FY 2017 will be $9,453, a large increase. This is in part due to much higher interest payment liabilities projected to total $493 million in FY 2018
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* Tony Arnold at WBEZ…
A downstate transit agency is suing the state for unpaid funds in a case that could have big implications for public transit agencies throughout Illinois.
The River Valley Metro Mass Transit District manages a fleet of buses around Kankakee, including a route from Bourbonnais to Midway Airport in Chicago. Rob Hoffman, managing director of River Valley Metro, said bus service around Kankakee has been suspended on Sundays and holidays to save money during the budget impasse.
River Valley Metro’s is now the latest in a string of lawsuits filed against the state asking the judicial branch to mandate payments even though no full budget has been approved by the legislature and governor. […]
When River Valley Metro filed its lawsuit in late February, the state owed it $1.27 million. Records from the comptroller’s office show River Valley Metro was paid that money on March 23.
But another payment request was filed on March 16, and River Valley Metro is still waiting on $829,278 from the state, according to the comptroller’s office.
The comptroller’s office has been treating the transit district as a hardship case, so they’re pretty much current on their vouchers. As with everything else, this is a triage operation. You hand out enough cash to keep as many vendors alive as you can.
* A set amount of money is supposed to be transferred from the General Revenue Fund (the state’s “checkbook”) to the Downstate Transportation Fund every month. But because the state’s revenues are dwarfed by its expenditures, that hasn’t always happened going back maybe a year. As of today, the comptroller has $79.1 million in pending vouchers for that fund, but the fund only actually contains $264,038.16.
The lawsuit is here. The plaintiffs essentially want the judge to force the state to pay into that transportation fund as required.
But the only way to truly resolve this is with a real budget. And that increasingly looks unlikely.
* For instance, this is from CBS 2…
A top Senate Democrat says the unthinkable is possible: Illinois may go two more years without an agreement on a Budget.
Illinois state Sen. Don Harmon is President Pro Tem of the Senate.
The Democrat from Oak Park notes that the state’s backlog of unpaid bills grows by the day, and state universities and many local service agencies are suffering. But he’s not seeing any real progress to resolving the two-year budget stalemate.
“It is absolutely devastating, but I am trying brace myself and others for that possibility.”
Naturally, he blames Republican Gov. Bruce Rauner, questioning whether really wants a “grand bargain” compromise.
This is the second time in a couple of weeks that Harmon has said this. I checked in with him about it today and he said “I also emphasized that the Senate is ready to negotiate a balanced budget, including spending cuts and revenue, but we need a willing negotiating partner.” Harmon also said they’re working every day to get a budget because going without one would be “unthinkable.”
But the unthinkable could become reality. And that means the day may very well be coming when the comptroller will have to choose which judicial order or consent decree to violate in order to abide by another one.
What. A. Mess.
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* WCIA TV…
Richland Community College is having to cut even more employees.
The Decatur school has taken a big loss over the past couple years, so now they’ve asked staff to sign up to leave early.
Last week, the school announced 18 employees will be out of work by the end of May.
In addition to that, 14 employees decided to take a payment incentive to leave their job.
To put this all in perspective, the school said they’ve had to reduce their staff by 25% over the last two years.
This is all because they’re trying to fill a more than $2 million hole in their budget that used to be filled with the state’s help.
No problem. Decatur’s economy is so robust after two years of this glorious impasse that those folks will easily find other jobs.
Right?
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* From AFSCME Council 31…
The Illinois Supreme Court has denied the Rauner administration’s request to bypass the Fourth District Appellate Court and hear a direct appeal of the state labor board’s ruling on the question of whether AFSCME and the administration were at impasse when Rauner walked away from contract negotiations more than a year ago.
Rauner asked the Supreme Court to remove the case from the appellate level after Fourth District judges refused to allow Rauner to immediately impose his terms, including a 100% hike in employee costs for health care and an end to safeguards against irresponsible privatization schemes.
The appellate court’s refusal to allow Rauner to impose his demands was predicated on what it called a “reasonable likelihood” that AFSCME will prevail on appeal.
“AFSCME members are public service workers who do their jobs every day, protecting kids, keeping us safe, helping veterans and the disabled and much more,” Council 31 Executive Director Roberta Lynch said. “Governor Rauner should stop wasting time and money on costly court fights and instead do his own job, working constructively to find common ground.”
The union’s appeal of the labor board ruling will now be heard in the Fourth District Appellate Court according to the schedule it has established.
The Supreme Court does this often, so it’s not much of a surprise. Click here for the documentation.
*** UPDATE *** From Rauner’s General Counsel Dennis Murashko…
“We have gone as far as we can go in negotiations - and our last, best and final offer is all that our taxpayers can afford. It is therefore regrettable that AFSCME is continuously resisting every attempt for a quick resolution and wants to continue dragging this out in the courts. Every day of delay costs taxpayers over $2 million.”
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McSweeney trolls Rauner on taxes, Trump
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Rep. McSweeney is kinda like the Republican version of former Democratic Rep. Jack Franks. He speaks his mind, and it’s a populist, anti-tax mind. He proved it again this week during a radio interview…
State Rep. David McSweeney, a conservative who sits on the House Revenue committee, made some direct statements aimed at a fellow Republican — Gov. Bruce Rauner — in a radio interview with Southern Illinois station WJPF and host Tom Miller. McSweeney was discussing the need for Medicaid funding efficiencies when he criticized the governor for skipping a meeting with President Donald Trump on the issue. McSweeney also brought up former Gov. Pat Quinn more than once — calling him one of our worst governors but adding that Republicans were now considering tax increases that Quinn would never dream of and saying that with no budget the state is now spending more than it did when Quinn was governor.
Some highlights: “I don’t understand why the governor didn’t go to the White House for the National Governors Association meeting when they talked about Medicaid. President Trump has wanted to focus on this issue of Medicaid reform and hopefully our governor will get into the game and start talking about cutting spending in this state,” McSweeney said. “We need to be engaged in this. Again, I don’t know why the governor wouldn’t go to the White House dinner with President Trump and actually talk about this issue. 46 governors attended that meeting and I think that it’s very important that we are engaged in a dialogue with President Trump, with the Republicans in Congress because they’re looking to redo the entire Medicaid system … Illinois will be affected … we need to be at the table. That’s why we need to engage with President Trump on this issue.”
On the state budget: “The governor did not propose a balanced budget. We are spending more money right now than we were under Pat Quinn and we don’t have a budget. People need to realize, we are spending $38.5 billion. Under Pat Quinn we were spending $35 billion. What we need to do in this state is we need to cut spending … We should just give the governor a lump sum and allow him to manage the resources. He said he’s willing to do that … he said he would have the ability to manage the money.”
The full audio is here.
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* Cass Herrington at Peoria Public Radio…
Pawar’s policies also include universal childcare, equitable school funding and massive infrastructure projects that he calls “Illinois’ New Deal.” The idea is framed after President Franklin D Roosevelt’s infrastructure projects that followed the Great Depression.
“I know right here in Peoria, there’s about a billion dollars worth of lock and dam work. So, we have an opportunity to not only build out our intermodal facilities, but also do ecological and wildlife restoration and lock and dam work.”
Pawar says that project would put people to work, create jobs downstream and create a “regional hub” for commerce on the Illinois River.
* Related…
* Democratic Candidate for Governor Visits Immigrant Rights Rally in Peoria
* Peoria rally supports immigrants and refugees
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* From the governor’s official Twitter account…
* Script…
Hi, everybody. The time to act is now. We need to make structural changes and pave the way for a balanced budget in Springfield. We proposed a balanced budget, but Speaker Michael Madigan’s Democrat majority has done nothing. Speaker Madigan continues to use stall tactics and refuses to bring real change and relief to the hard-working taxpayers of Illinois.
The General Assembly has been delaying progress for two years now. That’s unacceptable. They need to quit playing political games and help the people of Illinois.
Speaker Madigan’s Democrats are the party of “no.” No to absolutely everything, except for a big tax increase.
But we are not out of options. We can do this if we work together. What we need to do is clear. Freeze property taxes, put term limits in place and redraw our district lines so they benefit voters, not the politicians. We need to improve schools and create jobs. This isn’t rocket science, it’s common sense. We can get this done and we can get it done now. We’re working every single day with all of you on our minds. We want what’s best for you and your families, and we won’t stop until we get it done.
So many things to say, but I’ll keep it brief. He didn’t propose a balanced budget. That’s just objectively false. Madigan, however, has done zero this year, so he’s right about that.
The Senate tried to make some progress, but Rauner deliberately knocked that train off its tracks, so the current predicament is also on him. He’s leading a “party of no” as well.
And political games? He’s the one spending a million dollars on campaign ads right now.
* Just for fun, click here to see the replies to the governor’s video. Lots of harsh stuff, including this one…
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* The people who drafted the stopgap budget last year and the people who passed it didn’t notice that they’d left out funding for domestic violence shelters. The bill was passed so quickly that advocates didn’t notice the omission, either. And, now…
The executive director of The Women’s Center warns that without state funding in the next three months, the agency that provides services to survivors of domestic violence and sexual assault across eight Southern Illinois counties may be forced to shut its doors.
“If we don’t see a budget for FY17 we will be closing,” Cathy McClanahan said Monday. “We see no other option.” The fiscal year 2017 budget ends June 30, and McClanahan said that because the nonprofit agency has not received any state funding since December, it will soon burn through most of its savings and local donations to make payroll and pay overhead costs.
McClanahan said that funding for domestic violence shelters was left out of the fiscal year 2017 partial year budget that the General Assembly passed on June 30.
Therefore, The Women’s Center has not received any state money for its domestic violence shelter since July 1, though it received some federal grant dollars through December. In a typical year, the center receives $494,000 annually through its contract with the Department of Human Services, she said. McClanahan said she is holding out hope that was an oversight legislators will correct. […]
The Women’s Center’s domestic violence shelter in Carbondale houses up to 40 women and their children, she noted.
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* Press release…
Eleven days into Senator Daniel Biss’ gubernatorial campaign, Illinoisans are sending a strong message that they are ready to take their state back from money and the machine.
In this primary, Democrats will have to decide if we keep doing things the same way or demand different results. With $313,861 in contributions to the Biss for Illinois campaign in the first quarter, they are making their voice heard. Biss, who ends the quarter with $1.5 million cash on hand, issued the following statement:
“Ours will never be the billionaires’ campaign - in either who we are or who we fight for. If that’s what you’re looking for, you have plenty of options in this race but I’m not your guy. But, what is certain now is we’ll have the resources we need to build a campaign that wins because of the clear desire and energy for change in our state.
“This primary will be a test of Democrats across Illinois. Do we want to keep doing things the same way, or do we want change? Do we want to emulate Bruce Rauner or provide a Democratic answer that empowers ordinary Illinoisans? Do we want a party and government that is only accessible to the forces of money and the machine, or one that is owned by, and works in the service of, the people? Do we want to flood politics with unlimited contributions or with thousands of people ready to take their state back?
“Based on the early results, we know the answer. I’m energized by the overwhelming grassroots response to our campaign, which sends a clear message that the people of Illinois are ready to take their state back from the forces of money and the machine.”
Biss launched his gubernatorial campaign on March 20th, 2017. After that date, he raised $259,467 for the remainder of the quarter. Last week, Chris Kennedy contributed just over $250,000 to his own campaign, allowing unlimited contributions by anyone in the race. In contrast, nearly 90% of Biss’s donations in that period were for less than $150. The donations came from over 1000 contributors from 116 cities and towns across Illinois.
* Meanwhile, columnist Jim Dey refers to Biss today as Speaker Madigan’s “behind the scenes friend”…
There’s a money trail that leads from Madigan’s campaign treasury to a Biss-operated political action committee.
During the 2016 presidential campaign, Biss led a superPAC — “Leading Illinois for Tomorrow.” […]
The Hill, a Washington, D.C., publication, said Biss “has benefitted from a lot of money from Madigan and those in his orbit.”
The Friends of Michael J. Madigan gave Biss’ PAC $500,000, his daughter’s campaign committee gave Biss $150,000 and a Madigan backer and prominent Democratic donor Fred Eychaner contributed $1.2 million.
Labor unions friendly to Madigan also contributed huge sums — $750,000 from AFSCME alone. Madigan was instrumental in passing legislation aimed at stripping Rauner from his authority to negotiate AFSCME’s current contract, but Rauner vetoes were sustained over Madigan’s vehement objections.
The Federal Election Commission itemized $10.4 million in contributions to Biss’ PAC, much of it raised with Madigan’s direct and indirect assistance.
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