A bill that would make President Barack Obama’s birthday a commemorative holiday passed the House 87-0 on Friday, moving it to the governor’s desk.
The legislation, Senate Bill 55, would make Obama’s birthday, Aug. 4, a commemorative holiday. That’s different from a legal holiday, in which state government offices shut down and schools and businesses have the option of closing.
The bill’s House sponsor, Rep. Marcus C. Evans, Jr., D-Chicago, said the bill wouldn’t cost the state any money and would be a responsible way to celebrate the 44th president’s birthday.
“We want to get one that doesn’t attack our fiscal health considering we still need to work out a budget. This is just another good reason to celebrate, and it’s educational for our children to know what we had,” Evans said. “We may never get another Illinois president in my lifetime. Illinois has Barack Obama and he was passionate about what he believed in.”
* Press release…
Survivors of sexual abuse will no longer have to worry about deadlines to bring their attacker to justice under new legislation that waits for the governor’s signature.
Senate Bill 189, an initiative of Attorney General Lisa Madigan, would eliminate the statute of limitations for certain sex crimes committed against minors. According to many victim advocates, many victims do not come to terms with their assault until after the statute of limitations runs out.
State Senator Scott Bennett (D-Champaign), the legislation’s sponsor, drew on his past experience has an assistant state’s attorney in Champaign County when advocating for the new law.
“Survivors of these heinous crimes should be able to come forward when they are ready to seek justice without arbitrary deadlines preventing them,” Bennett said. “I urge the governor to sign this beacon of hope for survivors as soon as it arrives at his desk.”
Scott Cross, brother of former House Minority Leader Tom Cross, worked with Senator Bennett and Attorney General Madigan to pass the legislation. Cross was one of the many victims of disgraced U.S. House Speaker Dennis Hastert.
The legislation passed both chambers without opposition.
In December, this page called on [Auditor General Frank Mautino] to step down from his post until the federal probe is complete. Let the professional accountants in the auditor general’s office run it until his case is resolved.
That was five months ago. Because it appears Mautino has no intention of doing so, today we call on lawmakers to quit looking the other way. They have to file spending reports. They know how how the system is supposed to apply equally to everyone. They should pressure their leadership to put Mautino’s continuation as auditor general up for a vote. A proposal filed by Rep. Grant Wehrli, R-Naperville, to remove Mautino sits in House Speaker Michael Madigan’s Rules Committee.
Madigan can keep protecting his pal Mautino by not calling the resolution for a vote. Or he can quit playing God and allow the House to vote Mautino up or down. Make a case for him or send him packing.
Billionaire Democratic gubernatorial hopeful J.B. Pritzker is making a $1 million deposit in Chicago’s last remaining black-owned bank.
Illinois Service Federal Savings is the beneficiary. Pritzker alluded to the investment earlier this week in an interview on WVON radio without naming the bank, but his campaign confirmed the recipient. […]
“JB has made expanding access to capital for small business and entrepreneurs, and making investments in the communities hardest hit by Bruce Rauner’s failed leadership and manufactured budget crisis a top priority for him as governor,” a spokesman said in an email. […]
Pritzker’s move echoes a similar action by Rauner in 2014 as he challenged then-Gov. Pat Quinn. Rauner deposited $1 million in a South Side credit union as a way of demonstrating the Republican private-equity magnate cared about black communities and winning at least some black votes.
In both cases—Rauner’s and Pritzker’s—the institutions are small, and the sums of money very large.
The Illinois Senate has advanced a measure spearheaded by Senate Republican Leader Christine Radogno that would allow for permanent term limits of all four state legislative leaders.
“This constitutional amendment is a significant step forward in demonstrating to Illinois residents how serious we are about restoring their faith in government,” said Radogno (R-Lemont).
When the 100th General Assembly was sworn in this past January, the Senate adopted its new rules, which for the first time put in place term limits for Senate legislative leaders. As a result, Senate rules limit both the Senate President and Minority Leader to a maximum of five terms (10 years).
The measure advanced Friday, Senate Joint Resolution Constitutional Amendment 2 (SJRCA 2), would permanently create leadership term limits via constitutional amendment by limiting the terms to five General Assemblies (10 years) for the Illinois Speaker of the House, President of the Senate, House Minority Leader and Senate Minority Leader.
If approved by both the Illinois Senate and House with a three-fifths vote, SJRCA 2 would be on the Illinois ballot in November 2018.
The Illinois Supreme Court ruled Thursday the Illinois High School Association, which organizes sports tournaments between high schools, does not have to release internal records.
The Freedom of Information Act, or FOIA, is supposed to make sure anyone can get documents, memos — even emails — from a government body upon request.
But the state Supreme Court unanimously ruled the IHSA is NOT a government body. It wrote the IHSA’s sports events are not something public schools would otherwise be expected to do. […]
The Court wrote that FOIA requests can apply to functions of government — in other words, if governments outsources one of its responsibilities to a private entity, that is subject to FOIA.
“We were happy to see the Supreme Court adopted a much more liberal test for what constitutes a governmental function,” [Matt Topik, who represents the Better Government Association which brought the suit] said.
* Mayor Emanuel laid out his plan today to keep the school doors open. Tribune…
The CPS board will vote on Wednesday to take out a $389 million short-term loan backed by expected state aid payments that have been delayed by the long-running budget impasse, said Carole Brown, the city’s chief financial officer. […]
State block grant payments now are nine months behind schedule. City officials say the state now owes it $467 million, but Brown said the district is only allowed to borrow on 85 percent of that amount.
The new short-term borrowing, which will come at a hefty cost because of the school system’s junk bond rating, will allow the district to make a required June 30 contribution to the Chicago Teachers’ Pension Fund, Brown said.
The fund is owed $721 million. The borrowed money would cover the bulk of that payment, while money coming in later this summer from a first-time pension property tax levy of $250 million will cover the rest. […]
Even if Emanuel’s short-term plan is implemented and carries CPS through the summer, the district would still face a massive shortfall in 2018 absent some new source of revenue or infusion of cash from the state. The mayor is expected to unveil another plan to deal with next year’s finances, one that likely would include a tax hike, according to sources familiar with the mayor’s plans.
The grant money upon which the borrowing will be secured is part of $1.1 billion in state payments Illinois owes to more than 400 school systems. The state has been unable to distribute those grant payments because of the unrelenting budget stalemate.
The mayor’s office said CPS expects to receive its allotment of state grant funds in “coming months.” But Abdon Pallasch, a spokesman for Illinois Comptroller Susana Mendoza, said on Friday his office has no idea when the money will be disbursed.
The comptroller’s office just made last September’s quarterly grant payment in April. So, it’s going to be a while before CPS gets any more of that money.
Attached to the press release was this map, which CPS claims shows “school districts across Illinois that are facing funding challenges because of the state’s delayed payments”…
This spring marks five years since backers of the Route 53 extension allowed themselves to feel a sense of optimism following the release of a Blue Ribbon Advisory Council report which endorsed construction of a four-lane “modern parkway” with a 45-mph maximum speed and a “context sensitive” design. […]
But even without taking sides, it’s fair to say that momentum on the Route 53 project — to use a generic name for what would actually be a Route 53 extension from Long Grove to Grayslake and a Route 120 bypass around Grayslake — is not moving in the direction of seeing the roadway turning its first spade of dirt […]
It’s also fair to observe that, if there is a current void of information regarding any progress toward Route 53 becoming reality, opponents of Route 53 have been filling it with their messaging. Periodic protests and public statements against the whole idea were echoed Tuesday with the release of a report from the consumer-watchdog United States Public Interest Research Group (PIRG), which included Route 53/120 on its third somewhat-annual list of “Highway Boondoggles” around the country.
“Year after year, state and local governments propose billions of dollars’ worth of new and expanded highways that often do little to reduce congestion or address real transportation challenges, while diverting scarce funding from infrastructure repairs and 21st century transportation priorities,” the report states, swinging for the fences.
“These projects, some originally proposed decades ago, double down on the failed transportation strategies of the past while causing harm to local communities and absorbing scarce transportation dollars.”
* Press release…
The Illinois Road and Transportation Builders Association (IRTBA) today launched a major cable, radio, and digital ad campaign supporting the Illinois Route 53 expansion project.
The campaign features IRTBA’s first television advertisement of the year. “Works” highlights the significant benefits the Route 53 expansion project will bring to Lake County.
In addition to reducing congestion and traffic, saving the average commuter 20 hours per month, the Route 53 project will boost the Lake County economy by creating up to 30,000 new full-time jobs without harming the environment.
“The Route 53 project will enhance the quality of life for residents of Lake County by creating new full-time jobs and reducing traffic so residents have more time to spend with their families,” IRTBA President & CEO Michael Sturino said.
* Background for this letter is here. From the Senate Democrats…
May 19, 2017
Maggie Hickey
Executive Inspector General of Illinois
Office of Executive Inspector General, Division of Investigations
Inspector General Hickey:
It has been brought to our attention that records and information from Governor Bruce Rauner’s administration and the Illinois State Board of Education were provided to a political group funded by the governor’s campaign. This is disturbing. The citizens of Illinois deserve honesty and integrity at every level of government.
Please consider this a formal request that your office research and investigate this situation.
If you or your office need additional information or have questions, please contact us.
Sincerely,
State Senator Andy Manar (D-48)
State Senator Toi Hutchinson (D-40)
State Senator Donne Trotter (D-17)
Assistant Majority Leader
State Iris Y. Martinez (D-20)
Assistant Majority Leader
State Senator Michael E. Hastings (D-19)
State Senator Jennifer Bertino-Tarrant (D-49)
* The JB Pritzker campaign stepped in as well…
“It’s despicable that Bruce Rauner and Republicans would resort to leaking fake news in order to slow down progress for our state, and specifically for education,” said Pritzker campaign spokeswoman Galia Slayen. “Students in Illinois shouldn’t be held hostage while Rauner tries to slash important programs and prevent their teachers from making a decent living. Illinois families deserve a governor that works to solve problems, not create them.”
* OK, now, if you click here, you’ll see a pdf of the original story on Dan Proft’s Kankakee Times website.
The state funding cuts wouldn’t take effect immediately. Manar’s bill also includes a temporary “hold harmless” clause that would effectively delay them for two years.
As a Republican pointed out to me a few minutes ago, the ISBE analysis referred to is of SB 231, which was introduced last year. That analysis is available online. Click here and then scroll down to the SB 231 link to see it.
* I just talked to Proft and here are some quotes…
Everything Manar said at that press conference is false. We got no information from the governor’s office. None. Zero.
We got the numbers from Reboot Illinois. We did the story based on the last, best numbers we had.
The real story is that the Senate voted on that bill without any numbers… without knowing the implications of state funding schools… By their own admission, they don’t have the numbers.
*** UPDATE 1 *** At my request, Proft sent me the e-mail chain with Reboot. I redacted all e-mail addresses and phone numbers. Click here.
*** UPDATE 2 *** Press release…
The Rauner Administration released the following statement regarding the Senate Democrats’ false accusations. The following is attributable to spokesperson Eleni Demertzis:
“The Senate Democrats today jumped the shark. One cannot leak something that is on a public web site. Their false and outrageous accusations have been disproven, and they should apologize for manufacturing blatantly false accusations.”
*** UPDATE 3 *** Press release…
State Senator Andy Manar is urging Illinois school superintendents to be aware that misleading figures are being peddled about Senate Bill 1, the school funding plan that passed in the Illinois Senate this week.
Gov. Bruce Rauner’s office this afternoon acknowledged the figures are inaccurate and outdated but stopped short of denouncing them.
“This appears to be a textbook example of fake news. I am disturbed as to how and why this information was put out there and framed as official information from the Rauner administration, clearly with the intent of confusing and misleading people about Senate Bill 1,” said Manar, a Bunker Hill Democrat.
“Senate Democrats have asked the executive inspector general to look into that, but right now I want to make sure school superintendents are aware that outdated information is fraudulently being passed off as up-to-date news about Senate Bill 1.
“Furthermore, I hope Gov. Rauner and Education Secretary Beth Purvis will follow our lead and alert school officials about this misleading information to set the record straight. Anything less makes them complicit in a concerted effort to jeopardize Illinois’ shot at achieving meaningful school funding reform.”
There’s only two weeks left of the Illinois legislative session and there’s still no budget.
A center helping disabled resident says if a budget isn’t passed soon it will have to close its doors. […]
“We can`t foot the bill for the state of Illinois,” said [Northwestern Illinois Center for Independent Living] Executive Director Michele Miller.
The center helps people with disabilities live on their own, like Kay Bryant. […]
With no state budget for the last two years, NICIL has had to come up with ways to save money, from laying off staff to even temporarily closing.
“We`re burnt out all of us are covering three and four jobs just to be able to satisfy the customers,” said Miller.
If a budget isn’t passed soon, the center which serves five counties will need to lay off its remaining staff by July 1st. That would leave it’s 300 clients on their own.
Friday, May 19, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
HB2774/SB1502 & HB3449 all claim to protect online privacy, but instead they will create expensive and unnecessary new regulations, increase costs to businesses of all sizes and open up consumers to higher risk of identity theft and fraud.
This is why businesses and organizations across our state and the country are strongly opposed to this legislation, including:
• BLUE1647
• Chicagoland Chamber of Commerce
• CompTIA
• Illinois Black Chamber of Commerce
• Illinois Chamber of Commerce
• Illinois Hispanic Chamber of Commerce
• Illinois Restaurant Association
• Internet Association
• Illinois Technology Association
• National Federation of Independent Businesses
• NetChoice
• Southwestern Illinois Employers Association
• TechNet
These bills are wrong for Illinois consumers and businesses – VOTE NO ON HB 2774/SB 1502 & HB 3449
* Posted in order they were received. From the JB Pritzker campaign…
As the fiscal mess of Bruce Rauner’s own making continues to wreck the state’s economy, the Illinois business community and bondholders are turning their backs on him.
Yesterday, a group of the region’s largest employers came out in support of a budget that Rauner opposes. They cited “catastrophe” and “crisis” in their support of a plan that directly contradicts Rauner’s key priorities.
Bondholders are also responding to Rauner’s failed leadership and demanding higher yield for state debt, another Rauner expense that will fall on the backs of Illinois families. This comes after Moody’s warned months ago that our state is at a “do-or-die moment” due to Rauner’s historic budget impasse.
“It’s no surprise that the business community is turning their back on Bruce Rauner as he drives our state’s economy into the ground,” said Pritzker campaign spokeswoman Jordan Abudayyeh. “We’re reaching 700 days without a budget and the Illinois business community and hardworking families across the state have had enough. Illinois deserves a governor who will pass a budget and get our state back on track. The business community knows that Bruce Rauner is not that governor.”
* ILGOP…
In a stunning display of partisanship, Democratic Rep. Robert Martwick – a supporter of billionaire J.B. Pritzker – announced yesterday that he would kill his own bill, HB 2517, that would crack down on the kind of vacancy fraud the billionaire is engaging in to wrongly slash his property tax burden.
After House Minority Leader Jim Durkin signed on to the Vacancy Fraud Act, Capitol Fax reports that Martwick issued a statement saying he would not call the bill, calling the bipartisan backing he received “political gamesmanship”.
Only a Madigan-Pritzker politician would attack bipartisanship.
But it’s clear why Martwick was for cracking down on property tax fraud before he was against it – he’s in Pritzker’s corner and doesn’t want to make Mike Madigan’s new financial muscle mad.
After all, Martwick is hosting a meet and greet with Pritzker days from now.
Click here for a link to Martwick’s June 6th meet and greet announcement.
Who do you think had the better release?
*** UPDATE 1 *** The ILGOP responds to the Pritzker release…
After lying about his “uninhabitable” mansion property tax scam, J.B. Pritzker’s flailing campaign for Governor is trying to change the subject… by doubling down on his support for massive tax increases.
While Pritzker himself refuses to pay his fair share of taxes, he’s pushing for higher taxes on everyday Illinoisans.
First, Pritzker this week came out against a property tax freeze. On Tuesday, the Wednesday Journal of Oak Park reported that at a public forum, “Pritzker said that he opposed a property tax freeze”.
Then, Pritzker’s campaign issued a press release this morning praising a plan that includes taxing retirement income while excluding a property tax freeze.
That’s right, Pritzker’s campaign is praising a proposal that includes a plan to “Tax all federally taxable retirement income” (p. 14).
All of this comes after Pritzker began his campaign by announcing his support for a massive income tax hike behind closed doors to members of the Madigan machine.
Pritzker has now revealed he is for a retirement tax and against a property tax freeze.
*** UPDATE 2 *** From Galia Slayen, communications director for JB Pritzker…
We’re praising business leaders for wising up to Bruce Rauner’s failed leadership. Like Illinois families across this state, they’re not willing to see our most vulnerable communities held hostage to Rauner’s destructive agenda. It’s laughable that the ILGOP is desperately twisting the words of a press release while their governor stumbles towards 700 days without a budget.
*** UPDATE 3 *** We may be at this all day. From the ILGOP…
Given the chance to directly reject a tax on retirement income, the Pritzker campaign tried to change the subject instead.
Pritzker keeps defending a plan to tax retirement income while refusing to freeze property taxes for the middle class.
J.B. Pritzker is an out-of-touch billionaire unwilling to pay his fair share of property taxes, but will hike taxes on everyone else. Illinoisans are seeing right through his scam.
*** UPDATE 4 *** E-mail…
Rich,
My name is Dave Feller. I’m the President of the West Portage Park Neighbor’s Association (WPPNA) a local community group on the Northwest Side. I wanted to correct something that was posted on your blog today. On June 6th 2017, the WPPNA is hosting the FIRST of a series of Meet & Greets with all the candidates for Governor. Rep. Rob Martwick along with other area electeds are co-hosting the event in order to assist with outreach. This is NOT an endorsement session or a political event. As far as I know all the electeds listed on the flyer have not yet made an endorsement in the race.
Rich, our contact info is on the flyer. If the IL GOP would have bothered to reach out to us I would have answered any questions they had. But I guess it’s easier to try to score some cheap political points then it is to get at the truth.
Small wonder Rauner has drawn so much opposition with these type of people running his operation.
Kankakee County schools would be net losers of state funding under a bill that passed the Illinois State Senate Wednesday.
Collectively, the county’s 12 school districts would get $1.15 million per year less from the state’s school funding formula, a two percent decrease from their 2015 funding levels, according to an Illinois State Board of Education analysis obtained by the Kankakee Times.
Both Kankakee County State Senators– Sen. Toi Hutchinson (D-Olympia Fields) and Sen. Donne Trotter (D-Chicago)– voted “yes” on Senate Bill 1, which passed 35-18 with three Senators voting present.
Herscher District 2 (44% decrease), Grant Park District 6 (37% decrease), Manteno District 5 (19% decrease), Bourbonnais District 53 (19% decrease), St George District 258 (17% decrease) and Bradley-Bourbonnais District 307 (16% decrease) would all be losers if Senate Bill 1 is enacted into law.
Kankakee District 111 (+9 percent), St. Anne District 302 (+8 percent), Pembroke District 259 (+7 percent) and Momence District 1 (+4 percent) all stand to receive more state funding from the bill.
Senate Bill 1, sponsored by State Sen. Andy Manar (D-Bunker Hill), includes a $385 million bailout of Chicago Public Schools, which face bankruptcy due to years of deficit spending.
* As I told subscribers earlier today, the ISBE analysis and the resulting newspaper article were based on Amendment 4, which the chamber did not vote on this week. Sponsoring Sen. Andy Manar says the same analysis was distributed at a budget meeting yesterday. [The two analyses were different.] More from Politico…
Proft, the recipient of millions of dollars from Rauner as a political operative, oversees a chain of 20 publications. That had Manar fearing that bad district-specific information would spread across the state.
“No one in Kankakee County will lose a penny,” he said. “Everyone in Kankakee will get more,” under the bill as passed, he said. […]
“This looks a lot like the Rauner administration is leaking fake documents to a politically connected publication to manufacture problems that don’t exist so Republican members can cleanse their ‘no’ votes — and avoid being thrown under the bus by their governor,” Manar charged. […]
“This claim is false, and Manar is just trying to paper over the fact that he just ran a Chicago bailout yesterday,” said Rauner spokeswoman Catherine Kelly. “Rather than making false, wild accusations, they should stop the partisan politics and return to the negotiating table to achieve a bipartisan school funding formula that meets the needs of all students in the state.”
Both amendments contain “hold harmless” language, so Manar is right that the reductions won’t happen.
Proft told me this morning that the piece would be corrected.
*** UPDATE 1 *** More on the government fake news angle…
A Dan Proft "news" story in Kankakee Times spelling out "winners/losers" in @AndyManar school funding bill appears to be pure fiction.
The worst part: SB 1 docs were doctored by Rauner administration, sourced to ISBE, & sent to "news"/donor outlet. Good faith negotiations? https://t.co/HJIqdXLQSk
Senator Andy Manar (D-Bunker Hill) and other Senate Democrats will react this morning to news regarding the release of fraudulent education funding numbers to a Rauner-backed political operation.
When: 11 a.m. Friday, May 19, 2017
Where: State Capitol press briefing room (blue room)
*** UPDATE 4 *** Sen. Manar just said he and his colleagues are sending a letter today to the Executive Inspector General calling for an investigation.
*** UPDATE 5 *** From the SDems…
Manar: It's a violation of the law to manipulate data, send to supporter website. Our plan does not cut any district's funding.
* For whatever reason, Crain’s Chicago Business published my column online early this week. So, we get to talk about it today instead of on Monday..
Back in 2011, private citizen Bruce Rauner was involved with legislation in Springfield to change how public school teachers were evaluated and to curtail the power of the state’s teachers unions. Rauner didn’t care for the outcome, but after months of tedious and often contentious negotiations, the bill passed with just one “no” vote in both chambers.
Rauner wanted to use the legislation, in part, to prevent the Chicago Teachers Union from striking the following year. One important thing to know about Rauner is that he hates the CTU above all else. But a small portion of a subsequent “cleanup” bill allowed the CTU to decide who could vote on a strike.
“This has to be killed,” Rauner wrote in a May 24, 2011, email to the Illinois House Republican leader’s political director. “Every repub has to vote against.”
Three days later, the Senate approved the bill 51-5 and then the House passed it 116-0. The House Republican leader, the target of Rauner’s insistent email, was a chief co-sponsor.
That may give you an inkling of what the General Assembly has been dealing with since Rauner was sworn in as Illinois’ 42nd governor two and a half years ago.
Rauner came into office with the same bluster he displayed in that email. It was his way or the highway. The only difference now is that when he wants something killed, it gets killed. Republicans almost never cross him. One tried, and Rauner spent millions to defeat him in a primary.
After another failed negotiation session to end the long governmental impasse with Rauner and House Speaker Michael Madigan last December, Senate Republican Leader Christine Radogno approached Senate President John Cullerton about devising their own plan, which was eventually called the “grand bargain.”
The e-mail mentioned above is here. Lots of naughty words at that link, so be careful if you’re at work.
* As subscribers know, it’s not all good news in the Senate, but talks continue despite threats by both sides to walk away. Finke…
Illinois Senate negotiators continued to work Thursday on a comprehensive spending and revenue plan, a day after the Senate failed to move along legislation aimed at ending the state’s nearly two-year budget stalemate.
Despite continued pronouncements that Republicans and Democrats in the Senate are close to an agreement on an overall plan, there were no votes on any of the remaining components of the “grand bargain.” That included workers’ compensation changes that Senate President John Cullerton, D-Chicago, said were close enough to agreement that they could get a vote Thursday.
“There is not yet an agreement (on workers’ comp),” said Cullerton spokesman John Patterson. “A workers’ comp reform proposal is going to require support from both sides of the aisle.”
Patterson also said budget teams were continuing to meet to come to agreement on a tax-and-spending plan that can be sent to the House. Both the Senate and House are controlled by the Democrats.
The Illinois Department of Employment Security (IDES) announced [yesterday] that the unemployment rate declined -0.2 percentage points to 4.7 percent in April and nonfarm payrolls decreased by -7,200 jobs over-the-month, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. March job growth was revised up to show a decrease of -7,700 jobs rather than the preliminary estimate of -8,900 jobs. April’s monthly payroll drop kept over-the-year job growth well below the national average. Due to payroll declines for both March and April, Illinois remains -25,600 jobs short of reaching its prior peak employment reached in September 2000.
“Illinois did not participate in the nation’s job growth in April,” said IDES Director Jeff Mays. “Furthermore, the decline in the unemployment rate was largely due to a drop in the labor force, not more people working.”
“We continue to see sluggish growth in our economy due to the inability of the legislature to institute common-sense structural changes that would encourage investment in our state,” said Illinois Department of Commerce & Economic Opportunity Director Sean McCarthy. “If we create a business-friendly environment, we will see greater opportunities and more good paying jobs in every community.”
In April, the three industry sectors with the largest gains in employment were: Education and Health Services (+2,600); Manufacturing (+1,900); and Information Services (+1,300). The largest payroll declines were in the following sectors: Trade, Transportation and Utilities (-7,100); Construction (-4,500); and Leisure and Hospitality (-2,400).
Over-the-year, nonfarm payroll employment increased by +22,100 jobs with the largest gains in these industry sectors in April: Education and Health Services (+16,200); Professional and Business Services (+11,600); Financial Activities (+8,700). Industry sectors with the largest over-the-year declines include: Construction (-6,600); Trade, Transportation and Utilities (-6,500); and Manufacturing (-3,600). The +0.4 percent over-the-year gain in Illinois is about one-fourth as strong as the +1.6 percent gain posted by the nation in April.
The state’s unemployment rate is +0.3 percentage points higher than the national unemployment rate reported for April 2017, which decreased to 4.4 percent. The Illinois unemployment rate is down -1.3 percentage points from a year ago when it was 6.0 percent. At 4.7 percent, the Illinois jobless rate stands at its lowest level since March 2007, after having decreased for three consecutive months.
The number of unemployed workers decreased -4.7 percent from the prior month to 307,000, down -21.9 percent over the same month for the prior year. This brings the number of unemployed workers to its lowest level since February 2007.The labor force decreased -0.3 percent over-the-month and declined by -0.7 percent in April over the prior year. The unemployment rate identifies those individuals who are out of work and are seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.
…Adding… Press release…
Illinois continues to lose nearly ten manufacturing employees every day according to the latest dismal jobs report from the Illinois Department of Employment Security (IDES). This report comes on the heels of Butterball’s announcement of their plant closing in Montgomery, Illinois. Greg Baise, CEO and president of the Illinois Manufacturers’ Association, has released the following statement underscoring the importance of enacting a balanced budget with strong economic reforms, especially focused on workers’ compensation policy:
“This jobs report coupled with another business closing its doors in Illinois reinforces the need for action. Since 2009, Illinois has lost more than 1,600 manufacturing jobs while our neighbors have added tens of thousands of new jobs. With 11 days left of session, we hope this announcement injects a heightened sense of urgency to enact a balanced budget imposing fiscal restraint and strong economic reforms, centered on real workers’ compensation changes. Another 600 families are out of work on top of the 10 manufacturing jobs we are losing on a daily basis according to today’s IDES report.”
Mayor Rahm Emanuel will brief aldermen Friday on how his administration plans to fill the $129 million budget gap facing Chicago schools.
Schools will not see additional cuts this school year, according to a City Hall source.
Nor will the mayor propose any new taxes to fill the massive budget gap because there simply would not be enough time to implement a new tax, the source said.
“After a lot of hard work by the CPS and city financial teams, and many discussions with their lending partners, tomorrow we will brief aldermen on the district’s finances and the financial plan for the remainder of the CPS fiscal year,” said mayoral spokesman Adam Collins.
“Lending partners.” Hmm.
…Adding… Yep. Borrowing…
I'm told CPS financial relief plan will not include any new taxes. Likely to involve more borrowing, in lieu of a lack of $$ from the state.
Even so, says Christopher Mooney of the Institute of Government and Public Affairs in Urbana, it is not inconceivable that a less well funded candidate, such as Mr Pawar or Mr Biss, might win the Democratic primary next March. Mr Pawar makes a persuasive pitch to progressives, promising a “new deal” with more funding for public schools, universal child care, legalised pot, big investments in infrastructure and reform of the criminal-justice system. He points out that he is the only person of colour in the race in a state where, by 2020, most children will be either from a minority or mixed-race. And he promises to fix Illinois’s abysmal finances with a progressive income tax and the elimination of tax loopholes for companies.
* The Question: What do you think is Pawar’s best path to victory?
Illinois House Republican leader Jim Durkin has joined the GOP’s efforts to keep in the news Democratic governor candidate J.B. Pritzker move to secure property tax breaks for a Gold Coast mansion declared “vacant and uninhabitable.”
The Chicago Sun-Times reported last week on the tax relief, and Republicans have focused on the issue for days. Durkin signed to a bill that would allow local taxing bodies to file a complaint if a property owner getting vacancy relief isn’t attempting to sell, lease or alter it. The plan also lays out penalties for those found in violation, including a ban on tax breaks until the property is sold or leased.
Democratic Rep. Robert Martwick filed the measure back in February, but Durkin didn’t add his name as a co-sponsor until Wednesday, after the Pritzker story broke.
* Martwick just issued a statement…
Leader Durkin’s move to sign on as a chief co-sponsor of House Bill 2517 and publicly announce it this week is disappointing, counterproductive and out of character for him.
Vacancy fraud is an important and complex issue, and one that I have been working on for several years to address the growing number of buildings left intentionally vacant in the city of Chicago by their owners for tax benefits. I have made good progress on this issue but decided to continue to work with the various stakeholders in hopes of movement next session. The bill is in the House Rules Committee and I have no intention of calling it for a vote this year.
Leader Durkin’s move smacks of political gamesmanship, and I have to believe it is being driven by the governor’s office in light of recent media reports on the governor’s race. There is no place for such political games on an important issue like this. I urge the governor, Leader Durkin and all of my colleagues in the final two weeks of the session to end the shenanigans and refocus on the critically important task of getting a state budget agreement to move our state out of this crisis.
Except by sending out this release he kept the story alive and kinda bashed Pritzker in the process.
Warning of a looming “catastrophe,” a key Chicago business group today effectively sided against Gov. Bruce Rauner in the state’s bitter budget war.
In an extensive report, the Civic Committee of the Commercial Club, which represents the region’s largest employers, threw its backing behind efforts to pass a budget that includes considerably more new revenues than spending cuts, and which downplays Rauner’s demand for “structural changes” such as a property tax freeze and workers’ compensation reforms in exchange for any tax hike. […]
Committee Chair Rick Waddell, CEO of Northern Trust, conceded in an interview that, while the framework laid out in the report urges changes in the workers’ comp system, it is silent on a proposed property tax freeze and links neither issue to passage of a budget.
“At this point in time, the necessity and imperative of getting the budget done” is paramount, he said. “We’re in a crisis situation.”
If the Legislature and governor again agree only a patchwork stopgap budget that lacks needed revenues, the state’s financial status and ability to retain and attract employers and talent will take a hit, he added.
“It would be catastrophic if we couldn’t market our debt, which could happen” if bond-rating agencies lower their view of Illinois securities to junk levels, as they have threatened to do.
Click here for the full report. They’re proposing $8 billion in new revenues and $2 billion in spending cuts, which is considerably more liberal than the budget which was mostly agreed to in the Senate.
* From Mayor Rahm Emanuel…
“I applaud the Civic Committee for presenting an honest report about the state of Illinois finances, the challenges we all face, and the avenues to invest in our future and drive economic growth for families in every corner of the state. While there are many opinions about the best path forward for the state, the Civic Committee’s thoughtful report underscores the importance of fiscal stability for economic growth, the truth that both revenue and reform are needed, and the fact that progress is possible.”
Missing from the wide-ranging set of recommendations was any mention of property taxes, which are a key driver of costs for Illinois homeowners and businesses. A property tax freeze has been one of Rauner’s top requirements in return for signing off on tax increases.
* The story got picked up by the AP, so it went out far and wide…
A Democrat running for Illinois governor in 2018 is calling for the impeachment of President Donald Trump.
J.B. Pritzker said in a statement Wednesday the House of Representatives should begin impeachment proceedings. He says there are “credible reports” that Trump “obstructed justice in the investigation of the Russian hacking of our democracy.”
Pritzker was a top supporter of Hillary Clinton, helping raise millions for her unsuccessful campaign against Trump. The Chicago billionaire says calling for impeachment is “not something done lightly” but that it’s necessary.
Trying to shift away from days of criticism over the property-tax issue, Pritzker on Tuesday turned to Washington with a call for the U.S. House “to begin the impeachment process based on credible reports that President Donald Trump has obstructed justice in the investigation of the Russian hacking of our democracy.”
Whatever works, I suppose.
* Pritzker issued yet another press release today…
“Yesterday, I called on Congress to begin impeachment proceedings against Donald Trump,” said JB Pritzker. “With credible reports that President Donald Trump obstructed justice in the investigation of the Russian hacking of our democracy, I knew it was time to act. But Bruce Rauner remains silent. Rauner continues to fail this state and his refusal to speak out as Donald Trump decimates our democracy is unacceptable. The President is putting our national security at risk and undermining our rule of law. It is time for Governor Rauner to put partisanship aside and stand with Illinois families instead of Donald Trump and his hurtful agenda.”
I asked the Rauner folks and the ILGOP for a response a few hours ago and haven’t yet heard back.
* Meanwhile…
Like I said months ago, a Trump & a Russian 2016 election connection would be treason & you should go to jail for treason. CGK #Comey#FBI
State Sen. Daniel Biss is already putting money behind digital ads calling for Trump’s impeachment: “Trump’s shameless abuse of power puts the safety and security of all Illinoisans in jeopardy. It’s time for Congress to hold him accountable and begin drafting articles of impeachment.”
…Adding… Press release…
Ameya Pawar, 47th Ward alderman and Democratic candidate for Illinois governor today announced he is introducing a resolution to the Chicago City Council urging the United States House of Representatives to initiate an investigation to determine if there is sufficient grounds for the impeachment of President Donald J. Trump. Ald. Pawar will file the resolution to be considered by the City Council at the next scheduled meeting on May 24.
“I’m introducing a resolution at City Council next week calling for the Illinois Congressional Delegation and Congress to start the impeachment proceedings,” Pawar said. “I believe it is now time for Congress to start taking up impeachment proceedings and move on that quickly.”
“Trump has failed to divest himself from his business interests and it certainly appears he has obstructed justice by firing the FBI director. If he hasn’t already broken the law, he is dangerously close. And I think it’s time to get to the bottom of this so we can begin to take the next steps as a country.”
“Our country is in a really bad place right now. The billionaire class is eroding people’s trust in public institutions. The one thing that keeps me grounded and positive out of all this is that our institutions are fighting back and information is getting out. We need to take action, to determine once and for all if he is unfit to serve as our Commander and Chief.”
If the resolutions passes, the City of Chicago would be the largest city in the country to call upon Congress to begin impeachment proceedings. As the third largest city in the nation, 2.7 million Chicago residents are directly impacted by President Trump’s executive orders targeting people based on race, color, ethnicity, religion, gender, national origin, sexual orientation, gender identity, immigration status, and disability status. The President’s agenda threatens people’s quality of life and, in many cases, directly violates the United States Constitution and erodes the spirit of our democracy.
With less than two weeks left in the regular legislative session, Illinois lawmakers and Governor Bruce Rauner are still divided on how to end the worst-rated state’s nearly three-year budget impasse. Investors aren’t pleased.
Bondholders are demanding yields of 4.49 percent on Illinois’s 10-year bonds, some 2.45 percentage points more than those of benchmark tax-exempt debt. That’s the biggest gap since the Bloomberg indexes began in January 2013.
After May 31, a three-fifths majority will be required to pass anything, making a deal even more difficult to reach. Senate Democrats advanced several bills that had been considered part of a bi-partisan compromise on Wednesday, but they were unable to pass a spending plan for lack of Republican support.
“We’re two weeks away from the 31st and that’s the deadline that’s set,” said Dennis Derby, a money manager in Menomonee Falls, Wisconsin, at Wells Fargo Asset Management, which holds Illinois bonds among its $40 billion of municipal debt. “They’ve had substantial time to work on this. So far we haven’t seen any substantial progress.”
* Remember the story from Tuesday about how Rep. Dave Severin (R-Benton) took an excused absence rather than vote on a bill to save some nursing jobs at the Department of Corrections?
Well, Williamson County Democratic Party Chairman Cody Moake had this to say…
The reality of the situation is that Severin was elected by his constituents, not House leadership. If he cannot in good faith, complete the job he was elected to do, he should step down,” Moake said Tuesday. “While I did not vote for Mr. Severin, I expect from him, and everyone in the 117th should expect from him, to represent the best interests of the district on every issue that comes to a vote. We need someone to represent our area, home of some of the highest unemployed counties in the State. If he is not willing to stand up for these nurses, I want someone in there that will at least take a stance, not run away. If Mr. Severin is too much of a coward to stand up for what’s right, I urge him to step down and I challenge the Republican parties in the 117th district to appoint a representative that will keep our best interests in mind, and take those tough votes.
In my short time in Springfield, I have seen the political games being played by Speaker Madigan nearly every day.
What was omitted from the previous reporting is the fact that prior to the bill being called, the administration informed me that they would rescind the corrections nurses’ layoffs and go back to the negotiating table, thanks to the urging of a number of my colleagues and me.
Knowing this fact ahead of time gave me the peace of mind I needed to know that the bill would not be necessary and was in fact yet another attempt by Speaker Madigan to drive a wedge between myself and my constituents for political purposes. Negotiations are continuing as we speak and I encourage both sides to stay at the table until a deal is reached.
“Williamson County Democrats are still trying to adjust to life without a Madigan enabler in office so I can understand their frustration. With that said, their calls for my resignation are bizarre, at best.”
Severin said he thought that leaving town made a louder statement than voting ‘present’ and he also said he surmised more people would ask him why he did it, giving him a chance to explain his predicament. Severin also said that when he left town, he had a private commitment from an aide to Rauner’s administration that the Illinois Department of Corrections intended to rescind its layoff notice in an effort to continue talks with the Illinois Nurses Association, which it has since done. Severin said he wasn’t allowed to say that at the time, because it had not been communicated to the INA. That decision was made, according to Severin, “thanks to the urging of a number of my colleagues and me.”
“Knowing that fact ahead of time gave me the peace of mind I needed to know that the bill would not be necessary and was in fact yet another attempt by Speaker Madigan to drive a wedge between myself and my constituents for political purposes.” Of note, during the campaign, Severin called a press conference at which he signed a blown up “Fire Madigan” pledge.
The INA, despite the rescinding of the layoff notice, has expressed its desire that the legislation proceed regardless, because there’s no certainty about what the administration will do with regards to privatizing the positions in the future, which was the plan IDOC announced in late March. The bill would require IDOC to maintain nursing staff levels as they were in January 2016. Severin said he’s not ready to say what he will do if Rauner vetoes the bill and its called for an override vote in the House. Newspaper ads purchased by the INA in recent weeks have asked Severin and other lawmakers to reconsider their positions. […]
And despite the criticism suggesting that he left town because he lacked the backbone to buck his own party’s leadership, Severin maintains that’s just not the case. “When I walked off the floor I walked off for my people,” he said.
I have been around this business a very long time and I have never seen anyone say they took a walk on a bill “for my people.”
Perhaps the biggest impediment to an agreement is that the conventional stereotype of Illinois government as marbled with big ticket, easily cuttable fat defies reality.
On a per capita basis, no state government employs fewer people than Illinois. No state picks up a smaller percentage of local education bills. Per patient Medicaid spending is well below national norms. And the pile of debt now owed to state administed public pension systems is staggering. […]
The biggest components of the budget – state employee costs, schools, health care – don’t provide obvious cost savings that would make a substantial dent in the deficit. The state employee workforce of 62,000 in 2016 is down from 84,000 in 2002, a 26 percent reduction, according to the Comptroller’s office. Census data show Illinois has the fewest number of state employees per capita, among the states.
The Medicaid budget, the largest and fastest-growing piece of the Illinois spending document, stood at $17 billion in fiscal 2015, according to the Kaiser Family Foundation, behind Ohio, Florida, Pennsylvania, Texas, New York and California. But the amount Illinois spends per Medicaid enrollee stands at about $4,500, below the national average by about $1,400 a patient, Kaiser reports. […]
In the funding of public schools, no state spends less in support of K-12 education than Illinois, providing 26 percent of funds for school operations in the 2013-2014 fiscal year, according to the National Center for Education Statistics. The average among the states is 20 percentage points higher 46 percent. Cutting state support would increase pressure on local governments to boost their reliance on the property tax.
The largest sticking point — with negotiations still ongoing — is a Republican and Rauner-sought four-year property tax freeze paired with an income tax hike. Democrats say they’ll only approve a two-year hike due to concerns over school districts. They said the two-year timeframe was attached to the original property tax bill Illinois Senate Republican Leader Christine Radogno, R-Lemont, sponsored in January.
Radogno noted the bill didn’t reflect the most current agreement regarding discussions to protect taxpayers in a “substantial” way. She urged senators to wait for an agreement.
“We made a lot of progress since then in terms of trying to accommodate each other’s point of view on how long this freeze would be. I think we all need to remember if our taxpayers at home are watching the one thing they universally care about are property taxes,” Radogno said. “It is driving them out of their homes. They care deeply about property taxes. And a simple two-year freeze is inadequate, and there’s been some other really good ideas floated out there that again I think we can come to closure on if we gave ourselves a little more time to do it.”
Cullerton denied that the bill was “inadequate.”
“It’s a Senate bill. It can be amended in the House and let’s pass it. Let’s pass a two-year freeze. If it’s working so well and constituents clamor for it, we can come back next year and we can extend it,” Cullerton said.
According to WalletHub, Illinois has the highest combined state and local effective tax rate in the country at 14.76 percent based on national median household income. That’s a point higher than the next state. California is at 8.79 percent.
For decades, the Democratic Party has been talking about giving homeowners some relief on their property tax bills. Remember the Dawn Clark Netsch plan? These days, the Democrats barely pay lip service.
The budget bills came to a screeching halt because of no Republican support on a bill that would actually implement the budget, which included hundreds of millions of dollars in cuts. Republicans didn’t support the measure because they want to further negotiate on taxes. A revenue bill wasn’t called after that vote failed because the three — the spending plan, cuts and revenue — are intended to be passed together.
Senate Democrats on Wednesday night filed a motion to reconsider the bill that authorizes the budget.
* Sen. Daniel Biss on why he voted against the BIMP and the budget…
“Gov. Rauner expects lawmakers to give him unchecked freedom to overhaul the state’s Medicaid program that insures the poorest Illinois children and senior citizens, but he’s given us absolutely no reason to trust his judgment about what’s best for the people of Illinois.
“Gov. Rauner has refused to do his job and introduce a balanced budget and instead has claimed in public to support bipartisan Senate negotiations while secretly torpedoing that same work. We have no reason to trust him with carte blanche authority to destroy our safety net and punish the most vulnerable.
“I am not willing to give Gov. Rauner emergency rulemaking authority to implement Trumpcare in Illinois or cause undocumented children to lose coverage.
“In the meantime, Gov. Rauner is doing his best to dismantle the Community Care Program that tens of thousands of seniors rely on to live in dignity in their homes, and I cannot support a budget that facilitates his efforts to do just that.
“Our state urgently needs a budget, and I will continue to do all I can to move us toward a fair budget resolution that adequately funds our priorities. I stand ready to work with anyone toward that goal, and I am prepared to compromise.
“But I will not accept the premise that we must balance our budget on the backs of senior citizens and the poor.”
* Here’s where the cuts/reductions/transfers are. SB 6 is the approp bill. All numbers are in millions. From the Senate Democrats…
As you’ll recall from yesterday, the Senate Democrats put out a statement saying: “Our side of the aisle can’t, on its own, pass the list of cuts that Republicans brought to the table and we included.”
* From the Illinois Policy Institute’s news service…
Of the grand bargain bills, Senate Bill 1 changes the state’s school funding formula. It passed, 35-18, with three lawmakers voting present. Under the legislation, the state picks up $135 million in annual pension payments for CPS while continuing to pay the school district about $250 million in annual block grants, which are not given to other Illinois school districts.
“How is that fair to other districts?” Illinois Sen. Jason Barickman asked on the Senate floor. “This keeps that Chicago block grant in perpetuity, forever. It picks up the Chicago Public School pension costs forever.” Barickman said Democrats like to talk about parity, but “giving special deals and special rules to Chicago isn’t parity.”
Rauner’s administration said the education funding bill passed by Senate Democrats Wednesday is not what was negotiated.
“This bill is not consistent with the framework of the bipartisan, bicameral School Funding Commission,” Illinois Secretary of Education Beth Purvis said in a statement. “Senator [Andy] Manar abandoned our bipartisan process, departing from agreements already finalized in the commission and forcing a Chicago bailout at the expense of every other school district in the state, some of which are in worse financial straits than CPS.”
The sponsor of the Senate proposal, Democratic Sen. Andy Manar of Bunker Hill, maintains that holding all districts harmless includes ensuring CPS does not lose funding.
That’s basically what Senate President Cullerton told reporters as well yesterday. The Republicans are pointing to money that CPS is still getting without mentioning that all districts are being held harmless.
* Manar’s press release was chock full of heat, but very little light…
“The Rauner administration and Republicans want to behave like this is a vexing new problem that Illinois has never tried to tackle before. The truth is this is a more than 20-year-old problem that we have studied to death, repeatedly debated and willfully ignored.
“In Gov. Rauner’s perfect world, Illinois’ aging public schools would feature teachers that are paid less, support services that are outsourced and very little accountability to the communities they serve.
“That’s not the world we live in. We owe it to our students of today and our students of tomorrow to deal with Illinois’ worst-in-the-nation school funding formula now. Educators, parents, taxpayers, students and advocates are clamoring for change, and we would be remiss to not get this done before May 31. Gov. Rauner knows this, and so does his education secretary, Beth Purvis.
“Here’s the bottom line: The only opposition that exists to Senate Bill 1 is from Bruce Rauner and his enablers, who for some reason refuse to show independence from the governor when it comes time to do the right thing.
“Gov. Rauner and his team can put out all the statements they want claiming I abandoned the bipartisan process. I can sleep at night knowing I’ve never abandoned Illinois students or leveraged the state’s future for a political agenda.”
The Senate OK’d a $36.5 billion spending plan, but failed to approve a key bill needed to implement cuts contained in it. The Senate also did not vote on a controversial bill to raise taxes needed to balance the spending plan.
Senate President John Cullerton, D-Chicago, said it will up to the Republicans to decide when they’re ready to vote for the budget bills.
“I was under the impression we had reached an agreement on the budget,” Cullerton said after the votes. “The issue is, why did the Republicans not vote for the budget?”
Republican senators, though, again said that negotiators from both parties are getting close to agreement on the remaining outstanding issues and more time is needed. They accused Cullerton of staging a “political show” with the votes Wednesday.
Negotiations [with the Republicans] left a $475 million gap between spending and revenue. This [Democratic] plan closes it by means testing certain income tax breaks, adjusting the borrowing to pay old bills plan and making $60 million in additional reductions.
* Not a whole lot of new stuff here, but I thought you might want to rate this one…
On day 686 without a state budget, Bruce Rauner reported a $20 million contribution from Ken Griffin. The contribution is the largest individual contribution by a noncandidate in Illinois state history.
The staggering figure begs the question: What has Ken Griffin seen from Governor Rauner’s time in office that makes him think he’s worth $20 million dollars?
In making the contribution Ken Griffin stated, “he has the winning plan to create jobs, improve our schools and put Illinois on the right path forward.”
Is it a secret plan? Because here’s what Illinoisans have actually seen from Governor Rauner’s time in office:
687 days without a state budget.
$14.3 billion in unpaid bills.
A state economy in crisis, with jobs and businesses leaving the state and workers giving up on finding employment.
Cuts and unpaid bills to Illinois schools, leading to plans for layoffs and slashing of programs.
Attacks on unions and the rights of working families to organize.
“Bruce Rauner is being rewarded by his special interest friends for failing to produce a budget, putting our schools and our state economy at risk, and attacking our working families,” said Pritzker campaign spokeswoman Jordan Abudayyeh. “It’s clear that Bruce Rauner and Ken Griffin’s Rauner-Trump agenda does not work for Illinois families. Rauner’s broken promises and made up plans won’t solve this crisis of his own making. Illinois families are ready for a leader like JB who will stand with them to clean up Rauner’s mess.”
Thursday, May 18, 2017 - Posted by Advertising Department
[The following is a paid advertisement.]
Charter schools operate best when local communities, parents, teachers and school boards work together to offer the best options possible for all of our children. HB 768 supports that effort and promotes local control in establishing quality public charter schools.
The State Charter School Commission will remain in its current role as the authorizing entity for currently existing state-mandated charter schools. Their effective work in this role will not be impeded in any way with the passage of HB 768.
Let’s work together to ensure quality public charter schools for all the children in Illinois. Support HB 768.
The comprehensive budget for Fiscal Year 2018 is the product of more than a dozen negotiating sessions with Senate Republicans on a balanced FY 18 budget and is heavily influenced by the budget package Senator Bill Brady filed on March 28, specifically SB2181 and 2182. It eliminates a $10 billion deficit through a mix of cuts, savings and new revenue. […]
Negotiations left a $475 million gap between spending and revenue. This plan closes it by means testing certain income tax breaks, adjusting the borrowing to pay old bills plan and making $60 million in additional reductions.
• Sen. Brady presented the group with a spending base of $41 billion
• Based on current revenues, that spending level would exceed revenues by over $10 billion
• Sen. Brady offered a combination of revenue and budget cuts to achieve a balanced budget
• We (Senate Democrats) agreed to 22 (of 26 proposed) items that would reduce state spending by $3.8 billion
• The group collectively agreed to $5.7 billion in additional resources to help reach a balanced budget
• We came to a point where we had a deficit of $475 million and have not been able to make progress on how to close the gap
• We offered to adjust the amount and terms of a borrowing plan to pay down the bill backlog in order to adjust spending levels
• The plan we are proposing today incorporates that borrowing plan along with other spending reductions and a limit on an income tax break for mansion owners in order to close the gap and achieve a balanced FY18 budget
Key GOP priorities included in the proposals:
1. Uses 4.95 tax rate.
2. Reform the state pension system, including moving to a defined benefit program proposed by Gov. Rauner
3. Reduces Medicaid spending by over $400 million (5 percent)
4. Cuts the amount of state revenue dollars that are shared with local governments
5. Increases p-12 spending by over $350 million
6. Reduces state agency spending by 5 percent compared to the governor’s proposed budget.
7. Cost reductions for group health insurance program.
Revenue:
Personal income tax: Increases to 4.95 percent from current 3.75 percent.
• Generates $4.453 billion annually.
• This is a 1.2 percentage point increase, or a 32 percent increase in the tax rate.
• The rate will return to 3.75% after seven years
Corporate income tax: Increases to 7 percent from 5.25 percent.
• Generates $514 million annually.
Eliminates three corporate tax loopholes worth a combined $125 million a year:
• Eliminates the domestic production deduction (decouples Illinois from federal tax law; Wisconsin and Indiana already did this.)
• Repeals the non-combination rule
• Eliminates loophole exempting areas outside of standard U.S. from taxation, “outer continental shelf”
Imposes a cap of $1,000 a month on the tax rebate that retailer’s receive: $83 million
Implements a sales tax on services. Total: $149 million
• repair and maintenance of personal property 44 million
• landscaping services $14m
• laundry and dry-cleaning $4m
• storage (cars, boats, property) $18m
• cable/satellite/streaming services $46m
• pest control $4m
• private detective, alarm and security services $5m
• personal care $16m
Means testing applied to state income tax breaks: $81 million
Individuals making more than $250,000 and joint filers making over $500,000 would not be eligible for the person exemption ($18M), property tax credit ($59m)and education expense credit ($4M).
Example: homeowners get a tax credit equal to 5 percent of their property tax bill. The more expensive the mansion, the higher the tax break. Gov. Rauner gets a $4,500 credit on his income taxes. This closes that tax break to those whose taxable income exceeds a half million ($500,000) a year jointly or a quarter million ($250,000) individually.
Tax credits: cost of $264 million state
• Increases the Earn Income Tax Credit (EITC) by 50 percent over a 5 year period. This benefits lower income workers.
• Increases the family cap on the Education Expense Credit to $750 from $500.
• Creates a $250 tax credit for teachers who spend their money on classroom supplies.
• Reinstates and makes permanent the Research and Development Tax Credit Extends the Film Tax Credit to Jan. 1, 2027.
• Rolls the currently expired Manufacturing Purchase Credit and Graphic Arts Equipment sales tax exemption into the existing Manufacturing Machinery & Equipment sales tax exemption (streamlines the exemptions and puts us in line with how other states provide the exemption).
The budget passed this afternoon. The revenue package has not been voted on as I write this. The budget implementation bill, however, was defeated. Click here for the text of that legislation.
*** UPDATE *** From the Senate Democrats…
We won’t proceed to revenue. Many of the budget cuts were in the bimp.
It’s needed for the whole budget package. Our side of the aisle can’t, on its own, pass the list of cuts that Republicans brought to the table and we included.
* The A-1 is here. More in a bit. Griffin is a longtime Rauner supporter and has contributed heavily in the past. He’s also the state’s wealthiest resident. Rauner dumped $50 million into his own account last December.
*** UPDATE 1 *** From Ken Griffin…
“Governor Rauner cares deeply about the future of our state and making it a better place to live and work. He has the winning plan to create jobs, improve our schools and put Illinois on the right path forward.”
The contribution by the founder and CEO of Citadel, reported to the State Board of Elections on Tuesday, brings to nearly $33.6 million the amount of money and services that Griffin has contributed to the governor’s political fund since Rauner began running for office in 2013.
The donation appears to be the largest noncandidate contribution ever given to a campaign. Rauner gave his own campaign $50 million in December of last year.
Griffin is the second-largest contributor to the Republican governor behind only Rauner himself. In his initial 2014 bid and in his current re-election effort, Rauner has given himself $95 million.
The Griffin donation gives Rauner’s re-election bank account nearly $71 million, virtually all of it from the two men.
*** UPDATE 2 *** Press release…
Illinois Working Together Campaign Director Jake Lewis released the following statement in regards to Ken Griffin’s $20 million campaign donation to Gov. Bruce Rauner:
“Never has the Rauner re-election strategy been clearer. On the same day the state’s bill backlog tops $14 billion, the governor released a new campaign ad and his political campaign raked in $20 million from Illinois’ richest man. Rauner’s game plan is simple: spend millions of dollars to paper over his abysmal record of failure as governor. If Rauner truly wanted to fix Illinois, he would drop the big money political games and do his job.”
*** UPDATE 3 *** From the Pritzker campaign…
“Bruce Rauner is a failed governor who has put politics over governing and passing a budget for our state,” said Pritzker campaign communications director Galia Slayen. “Now, his special interest friends are back to bail him out and ensure his Koch brothers agenda gets a second life. Before once again dumping money into Rauner’s campaign, Ken Griffin donated $100,000 to Donald Trump’s inaugural. It’s clear that Ken Griffin and Rauner’s special interest allies want to force the Rauner-Trump agenda on our state, which attacks our working families and is decimating our economy.”
* From Ameya Pawar…
Billionaire tax avoiders, like Bruce Rauner and Ken Griffin, will spend whatever it takes to implement their radical and bigoted Trump-aligned agenda.
What’s clear is that this billionaire class wants to buy Illinois for themselves. Don’t think for a moment these wealthy people have anyone’s interests but their own at heart.
We have to to stop worshiping wealth, get big money out of politics, and unite as a state around an agenda that invests in people and communities.
*** UPDATE 4 *** From the DGA…
“Rather than focus on the budget, Governor Rauner has turned to Trump donor Ken Griffin for $20 million to try to salvage his failing re-election campaign,” said DGA Communications Director Jared Leopold. “Now we know why Bruce Rauner won’t stand up to Donald Trump: Rauner’s top donor enthusiastically supports Trumpcare. Bruce Rauner has shown he’ll choose Donald Trump over the people of Illinois every day of the week.”
*** UPDATE 5 *** Kennedy campaign…
Chris Kennedy’s campaign is fueled by 3,000 individual campaign contributions because Illinois residents want to restore the promise of the American Dream and reform a system that is working well for political insiders but not for them. Democrats should not fall into the trap of replacing one billionaire for another. Party insiders might think that is the best way to beat Bruce Rauner, but voters know we can’t afford more of the status quo.
State Solutions, an issue-advocacy organization affiliated with the Republican Governors Association, released a new television advertisement today in Illinois, highlighting Governor Bruce Rauner’s push to balance the budget, reform government and grow jobs.
“The broken ideas of the ‘Duct Tape Dynasty’ - higher taxes and more spending – got Illinois into this mess, but Governor Rauner’s budget plan offers real reforms to fix Illinois now,” said State Solutions spokesman Jon Thompson. “Governor Rauner is working hard to enact a balanced budget that grows jobs and supports the middle class, not the political class.”
Owners of vacant properties who are not actively seeking tenants or buyers, or making alterations while continuing to receive property tax relief could face a vacancy fraud complaint and pay a penalty under bipartisan legislation co-sponsored by House Republican Leader Jim Durkin (R-Western Springs).
“Corporations or unscrupulous property owners should not be able to receive special breaks or deals at the expense of communities. This bipartisan bill helps to address that as it relates to property taxes by giving local taxing bodies the ability to go after bad actors and ensure that property owners are paying what they actually owe, which will help our schools, other units of local government, and taxpayers,” said Durkin.
House Bill 2517 creates the Vacancy Fraud Act. The new act would allow a taxing body or representative of a taxing body to file a vacancy fraud complaint with the county board of review if property is receiving vacancy relief and the property owner is not actively attempting to lease, sell or alter the property. In addition, it establishes factors in determining whether or not vacancy fraud has occurred and the penalties.
Upon determination that an owner of vacant property is not actively attempting to sell, lease or alter the vacant property, the board of review and chief county assessment officer may impose the following penalties: Prohibit any vacancy relief until the property is sold or leased; require the payment of three times the amount of back taxes owed for any vacancy relief while the owner was not actively attempting to sell, lease or alter the vacant property; require the payment of interest on any back taxes. Repeat offenders within a five year period may be charged a penalty not to exceed 25% of the amount of back taxes.
* But the hilarious aspect to Durkin’s move is that this is a Democratic-sponsored bill. Rep. Rob Martwick (D-Chicago) sponsored the measure back on February 7th. It went to subcommittee, then wound up back in Rules Committee after it failed to meet the passage deadline.
I’ve reached out to Rep. Martwick and will let you know if he says anything.
“House Democrats under Speaker Madigan have been sending over special interest groups to attack the senators on the Democratic caucus to try to kill the ‘grand bargain,’” Rauner said in Springfield on Tuesday. “House Democrats under Speaker Madigan have shown really no good faith, willingness to engage in negotiations with true change, true reforms to our system.
“Speaker Madigan in our four leader meetings has always been obstinate, just not wanting to really have good-faith negotiations and come to an agreement,” the governor said. And I think that my sense is this is probably a last-minute attempt by the House Democrats to create a distraction and derail the senators who seem to be making progress and are coming close to an agreement. So I think we need to focus on the Senate and try to get that done. […]
[Madigan spokesman Steve Brown] said accusations that Madigan is attempting to thwart the plan have “no basis in fact.” As for the speaker directing special interest groups, Brown said Rauner has provided no proof: “I don’t think any of that is going on to the best of my knowledge.
Brown pinned efforts to “derail” the plan on the governor himself.
“I think he ignores the fact that he’s the chief architect at destroying the Senate budget talks. I mean on multiple occasions he’s destroyed any effort to pass bills over there. I mean, I think he needs to go look at the history of his own activity,” Brown said. “Maybe look at a mirror, say ‘Hey Bruce, why did you screw this up?’”
* Meanwhile, a group of Senate Republicans held yet another press conference this morning to once again ask for more time…
.@SenBillBrady opens saying they believe they have made progress, are close to getting a deal. They hope that progress wont be derailed.
They’re right that the negotiations have produced some results and they are closer than they’ve ever been. They should continue talking.
* However, I really don’t blame the Senate Democrats for being fed up with all these pleas for more time. From the SDems…
Illinois Gov. Bruce Rauner encourages ‘grand bargain’ with stronger reforms
Sen. Pam Althoff: “A balanced budget deal cannot be just about raising taxes. That doesn’t work. We need structural changes to move our state forward on a path to prosperity. The time is now. I call on my colleagues to get it done.”
Source: Northwest Herald, February 16, 2017
http://www.nwherald.com/2017/02/15/illinois-gov-bruce-rauner-encourages-grand-bargain-with-stronger-reforms/am6cbfm/
Democrats say Rauner bungling ‘bargain’ – gov calls that ‘goofy’
Sen. Christine Radogno: “We are looking at going in the hole $11 million a day, every single day, we don’t get this solved. So I think there’s enough good will in this building. I know the governor will be joining us in trying to get that done, but we need to get it done soon.”
Source: Sun-Times, March 4, 2017
http://chicago.suntimes.com/news/democrats-say-rauner-bungling-bargain-gov-calls-that-goofy/
As ‘Grand Bargain’ is blocked, Democrats point to Rauner
Sen. Christine Radogno: “To a person, the people that I have spoken with have been sincere, honest, willing to compromise. And with that kind of an attitude in this chamber, I have no question in my mind that we’re going to bring this thing in for a landing.”
Source: NPR, March 2, 2017
http://nprillinois.org/post/grand-bargain-blocked-democrats-point-rauner#stream/0
‘Grand bargain’ budget deal taking shape in Senate
After Tuesday’s votes, Radogno said there were “very few” loose ends that still needed to be resolved. She said the votes were pretty much what she expected. “This is a long process, but we have an obligation to get some things moving here. We have a very urgent situation in the state. I think (senators) were beginning to understand that if we’re ever going to do something, now is the time.”
Source: SJ-R, February 28, 2017
http://www.sj-r.com/news/20170228/grand-bargain-budget-deal-taking-shape-in-senate
What’s Next After State Legislature Fails To Vote On ‘Grand Bargain’ Budget Deal?
Sen. Chapin Rose, R-Mahomet, says he’s never been ready to support the grand bargain. But he says both sides are closer than ever — and a little more delay is worth it.
Source: Northern Public Radio, March 2, 2017
http://northernpublicradio.org/post/whats-next-after-state-legislature-fails-vote-grand-bargain-budget-deal
GOP State Senator Bill Brady Takes Lead in Brokering ‘Grand Bargain’
Brady has been meeting with Senate President John Cullerton, and while he said “we’re not there yet; we are closer to a comprehensive plan that lays it all out,” more lawmakers now believe a vote will be taken on the Senate’s so-called “Grand Bargain” before the May 31 deadline.
Source: NBC 5 Chicago, May 5, 2017
http://www.nbcchicago.com/blogs/ward-room/illinois-senate-budget-deal-421570084.html
But what’s the alternative? A partisan “grand bargain”?
There are two sets of numbers to consider here. The first is 30, 60 and 1, which represent simple majorities in both chambers plus the governor’s signature.
The second set is 36, 71 and 0. That’s the number of votes the Democrats will need to override the governor’s veto. And that can’t be done without Republicans.
* In other news…
With the end of the Illinois legislative session fast approaching, Illinois Democratic Leadership is suggesting a compromise with Gov. Rauner may be possible, but Fair Economy Illinois rejects the main tenets of the Grand Bargain that Democrats have been discussing for some time: cuts to vital government responsibilities paired with regressive tax increases like an expansion of the sales tax.
“We are marching to Springfield for a budget that prioritizes the needs of people and the health of our environment,” says Samantha Nichols, an organizer of the March to Springfield for a People and Planet First Budget. “The Grand Bargain asks working class people to pay more for less, and will cause suffering for people and damage to the environment. The only common ground Illinois Democrats and Republicans need to find is the political will to make corporations and the rich pay their fair share of taxes.”
Fair Economy Illinois supports passage of HB 4004, a bill to close nearly $1 billion corporate tax loopholes, and SB 1970, a bill to put a tiny sales tax on futures and commodities trades on Chicago’s LaSalle St that would raise an estimated $12 billion annually.
“Speaker Madigan and the radical leftists he controls.”
Pritzker said that he opposed a property tax freeze, a favorite Rauner talking point, saying local communities should make that decision.
Hat tip to a Democratic operative for finding that one.
* As I was preparing this post, an ILGOP e-mail landed in my in-box…
Today the Illinois Republican Party released a new ad targeting J.B. Pritzker and Mike Madigan for using a corrupt, insider property tax system to benefit themselves at our expense.
Pritzker is under fire this week for claiming that a Gold Coast mansion is uninhabitable, slashing his tax burden by 83% and taking a quarter million dollars in property tax breaks and refunds.
The ad mirrors a Republican ad [click here to see it] used by Rep. Mike McAuliffe’s campaign in 2016 to defeat a heavily financed Madigan-backed challenge from Merry Marwig.
In a state house district that voted for Hillary Clinton by an 8-point margin, Rep. McAuliffe won re-election by 12 points.
Both ads combine three lethal hits to any Democratic candidate in Illinois – Mike Madigan, Chicago corruption, and abuse of the property tax system at our expense.
* So, I followed up with the state party and asked for a response to Pritzker’s reported Oak Park comments…
It is almost unimaginable that after J.B. Pritzker played an inside game to slash his property taxes by over $250,000, he would oppose freezing the property taxes of middle class homeowners. He’s proving that he’s a billionaire Chicago insider who plays by a different set of rules as everyone else.
*** UPDATE *** I forgot to post this, which I retweeted yesterday…
Started asking 6 hrs ago to speak to @JBPritzker (as I did yestdy too) no word onwhen/if he will react to property tax questions #ILGov18
Pritzker’s real estate attorneys Schmidt, Salzman and Moran contributed more than $25,000 in campaign donations to Assessor Berrios. Pritzker initially said “I’m unaware of that.” But when it was pointed out that was reported Monday by WCIA TV, Pritzker added “someone brought it up for the very first time yesterday.”
You can’t say you’re unaware of something when you were specifically asked about that very same thing the day before.
Illinois’ estimated bill backlog has increased from $13.3 billion to a record $14.3 billion. The jump reflects more than $1 billion in liabilities held at state agencies that the Governor’s Office of Management and Budget reported to the Comptroller’s office this week. This new information brings the estimated total of bills held at agencies to $6.6 billion.
The state’s bill backlog is nearing the point of having tripled in just the past two years, making it all the more pressing that policymakers receive timely reporting of the consequences of not having a budget — at a growing cost to taxpayers. This week’s $1 billion bill dump from Governor Rauner’s office makes evident the need for agencies to regularly report liabilities to the Comptroller’s office including the late interest penalties associated with these outstanding bills. This increase is due to a reported increase of bills for medical, corrections, state group health insurance, human services and other state agencies.
“It’s clear the Rauner Administration has been holding bills at state agencies in an attempt to mask some of the damage caused by the Governor’s failure to fulfill his constitutional duty and present a balanced budget. At a time when Senators from both sides of the aisle are working together to reach a deal, this administration has been keeping them in the dark about the true extent of the bill backlog,” Comptroller Susana Mendoza said. “This action makes obvious the urgent need for more sunlight on the state’s bill backlog. It’s time for a full accounting of what the state owes to schools, social service organizations, health care providers, vendors, small business owners and others across the state.”
Legislation initiated by Comptroller Mendoza known as the Debt Transparency Act (House Bill 3649) calls for more accountability from state agencies on Illinois’ bill backlog. It would require agencies to report monthly to the Comptroller the bills they are holding and estimate the amount of late interest penalties that will be paid on those bills. The Comptroller’s office projects that Illinois will owe at least $800 million in Late Payment Interest Penalties on its overdue bills by the end of the current fiscal year. But without accurate information from state agencies on what is owed, it’s nearly impossible to precisely report interest charges.
“Clearly policymakers and taxpayers need to be fully aware of the rising costs taxpayers are on the hook for and that must be accounted for in a budget,” Comptroller Mendoza said.
Representative Fred Crespo, D-Hoffman Estates, and Sen. Andy Manar, D-Bunker Hill, sponsored HB 3649, which passed in the House with bipartisan backing last month. Comptroller Mendoza is calling on the Senate to approve HB 3649 and on the Governor to sign the bill when it reaches his desk.
Current state law only requires agencies to report on Oct. 1 of each year the aggregate amount of bills being held on the previous June 30. The information is outdated by the time it is received, Mendoza said. But the agencies already have the personnel and infrastructure in place to compile the data.
Setting aside her rhetoric, the current state law is completely outmoded. This really needs to change.
* $142 million in past-due bills, services dying or dead on the vine and a patient waiting list of almost 13,000 people. But all is well. Right. Keep telling yourselves that.
From a press release…
A new survey by a top behavioral health advocate group reveals that the state of Illinois owes community mental health centers statewide a staggering $142 million in unpaid bills, a debt that is squeezing care for people struggling with mental illness and addiction.
The Community Behavioral Healthcare Association of Illinois released on Wednesday a survey of state community mental health providers that shows that these agencies are owed for fiscal year 2017 a total of $142,558,150 or nearly 90% of what has been budgeted for the current fiscal year that expires on June 30.
Moreover, the survey shows that, in Fiscal Year 2016, 73.5% of community agencies had reduced or eliminated behavioral health programs and that in Fiscal Year 2017 an additional 33.7% of agencies further cut or ended services.
“To say that community mental health providers are operating on fumes would be incorrect. They consumed the fumes long ago,” said Community Behavioral Healthcare Association of Illinois C.E.O. Marvin Lindsey. “The financial starvation of providers has shriveled our ability to serve an exploding need to the extent that Illinois is fast becoming a behavioral health system Potemkin Village.”
Lindsey also pointed to a survey finding that says that a psychiatrist wait time of one-to-two months at 40.6% of agencies in Fiscal Year 2016 has jumped to a one-to-two month wait at 64.0% of centers in Fiscal Year 2017. And a four-month wait or more at 25% of agencies has edged up to 28% of providers.
Overall, the survey estimates that waiting lists to access all sorts of behavioral health treatment has ballooned to 12,696 individuals.
“A mental health crisis can’t be scheduled three weeks from next Tuesday at 4:00 p.m.,” said Lindsey. “But that’s where we find ourselves, turning away mothers, children who need our help, today, not tomorrow, not next week, but today.”
* And check out the timeline…
Beyond the immediate budget impasse, Lindsey also cites the survey’s finding of a vast disinvestment in behavior health by the state over the last 10 years.
In Fiscal Year 2008, the state legislature authorized Mental Health grants from General Revenue Funds totaling $368,281,300 to community agencies. In Fiscal Year 2018, in Governor Bruce Rauner’s proposed budget, the number had fallen by more than half to $170,622,300. Addiction treatment money followed the same pattern, dropping from $165,602,200 to $78,633,500.
“Some of the GRF was transferred to cover the state’s Medicaid mental health and substance use services, which I estimate totals $40 million for mental health and $15 million for addiction treatment,” said Lindsey. “But that shifting of a small amount money in no way excuses shameful financial disinvestment in behavioral health that has occurred and is continuing to occur today despite the disingenuous promises being made.”
Illinois Senate Democrats have scheduled votes for measures in the so-called “grand bargain” budget compromise.
Assistant Majority Leader Donne Trotter of Chicago says the Senate will call each piece of legislation in the plan for votes on Wednesday. He says time is running out to agree to the state’s first budget in two years. The General Assembly is scheduled to adjourn May 31. […]
Trotter says the Senate needs to know where the votes are for agreeing to a budget. So each bill will stand alone. Even bills that have passed were recalled Tuesday to be voted on again as stand-alone measures.
Patty Schuh, a spokeswoman for Republican Leader Christine Radogno of Lemont, says Radogno remains hopeful negotiations can continue.
“We’re more focused on where we can prioritize spending but reduce systemic growth and spending so it is a balanced plan. We’ve already said that we’d be willing to consider an [income tax] increase of 1.2 percent. That would be temporary along with a property tax freeze,” Brady said. “Probably the biggest stumbling block is we need [a] real property tax freeze, real relief.”
“I hope they don’t blow this all up prematurely,” Brady said of Senate Democrats. “We’re still hopeful.” […]
On Tuesday, the Senate moved several “grand bargain” bills into position to see movement on the Senate floor on Wednesday. Those measures include local government consolidation, procurement reform, the second half of a spending plan for the fiscal year 2017 and gaming.
Cullerton spokesman John Patterson warned of the ticking clock, and said the Senate president believes it’s time to act on reforms and a balanced budget.
As the end-of-session jockeying to avoid blame and assign it elsewhere begins, there may be another round of voting on portions of the plan as soon as Wednesday.
Democrats took procedural holds off several bills in the “grand bargain” package that already have passed, with the plan to remove provisions that linked the bills so that if one failed, they all failed. Democrats now say time is running out and they are eager to try to get Republicans to weigh in one way or the other.
“There are some people who’ve indicated that they don’t want to vote for bills that are all tied together, some people who would be willing to vote for a revenue package and then some people who aren’t willing to, under any circumstances, vote for a revenue package but may like some of the other reform ideas that have been negotiated in the bipartisan fashion,” said Democratic Sen. Toi Hutchinson of Olympia Fields, a key budget negotiator. “Maybe that might help to get to passage of the individual pieces.”
Sen. Bill Brady, R-Bloomington, said it would be “a huge mistake” for Democrats to press ahead while details continue to be worked out.
Josh Metnick, who buys and sells internet domain names the way a real estate broker handles land deals, has put Illinois.com on the market.
Metnick has owned the domain name since 2005 but decided to sell now because he sees interest peaking. China is buying up more domain names these days, and there are a few Illinois gubernatorial candidates who might find Illinois.com an attractive property.
Metnick is referring all calls on the deal to Lou Weisbach, a Chicago entrepreneur who’s overseeing the sale. Weisbach is CEO of Merch Time LLC, a marketing services and promotional products startup.
“I’ve known Josh for a long time. He’s brilliant in this space,” Weisbach tells me. “Given the confluence of interest overseas and in Illinois and given the gubernatorial race, in which you have three high net worth individuals leading the pack, it seems like a once-in-a-lifetime opportunity.”
Considering that half of the state’s residents want to leave, our largest city has a well-publicized crime problem and the state government hasn’t had a budget in over two years, etc., etc., etc., I’m not sure how valuable the domain name really is.
* From the press release…
“Illinois.com is an asset that can be kept in perpetuity as it continues to appreciate in the years to come,” continued Weisbach. “The site’s purchaser can realize strong cash flows from the investment, as the site can be valued against an escalating and recurring revenue model. All in all, this is a significant opportunity to secure a prized geodomain.”
A “geodomain” is a domain name identical to a geographic location such as a city, state, or country. Often, geodomain sales are kept confidential via private transactions, similar to private sales of other types of domain names. There are some geodomain sales figures, however, that have been publicly disclosed:
* LasVegas.com sold for $90 million in 2005. Las Vegas, Nevada drew approximately 42.9 million visitors in 2016 (source: Las Vegas Convention and Visitors Authority).
* MyrtleBeach.com sold for $6.5 million in 2010. Myrtle Beach, South Carolina drew approximately 16.1 million visitors in 2013 (source: Myrtle Beach Area Chamber of Commerce, 2015).
By comparison, Illinois welcomed approximately 110 million domestic visitors in 2016 (source: Illinois Department of Commerce), with an additional 1.7 million overseas visitors (source: U.S. Department of Commerce’s National Travel and Tourism Office, 2015).
“There are endless possibilities when it comes to how Illinois.com could be strategically leveraged and monetized,” said Dan Pulcrano, a domain name industry expert and CEO of Silicon Valley-based media holding company New SV Media, Inc. “It could be the home page for a media outlet, corporation, or political candidate, or used to redirect traffic to a third-party site or for the selling of customized email addresses. Whatever an investor chooses to do with Illinois.com, I expect this domain name to be well-trafficked and successful.”
Any thoughts how somebody could use the domain name?
