…And Madigan answers
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* House Democratic press release…
Parents worried their children could be exposed to lead in public school drinking water, and residents who may be unable to heat and cool their homes during extreme weather were among the citizens calling on Gov. Bruce Rauner to end his 700-day budget impasse Wednesday at a budget hearing in Chicago.
“Legislators are hearing directly from the victims of Bruce Rauner’s budget crisis, and their message is clear: It’s time for the governor to end this impasse,” said House Speaker Michael J. Madigan. “While the governor wants to see these people as ‘props’ and calls their stories a ‘sham,’ House Democrats will continue to work to build consensus to end budget impasse.”
Legislators on the House Appropriations-General Services Committee heard testimony from parents who expressed outrage that the governor’s budget crisis might prevent the Illinois Environmental Protection Agency from being able to effectively screen for lead in drinking water. Recently, dangerous levels of lead were discovered in a number of public schools, prompting outcry from parents.
“If there were even a hint that the drinking water in the schools Governor Rauner and his wealthy friends send their children to, I’m sure the governor spared no expense to fix the problem, and waste no time patting himself on the back in front of TV cameras. But when it’s actually happening in my neighborhood, to my children, Bruce Rauner would rather play games than do anything,” said Emma Jones, a resident of Chicago’s South Side whose children attend a school where high levels of lead were recently reported. “Our children’s lives are just as important as yours are, governor. But our children’s lives are at risk because you won’t do your job.”
Rauner’s budget crisis has also jeopardized funding for the Low Income Home Energy Assistance Program (LIHEAP), which helps tens of thousands of Illinois citizens—including homebound elderly residents—cope with extreme heat and cold. Without this important service, low-income families could have a more difficult time finding the money to afford their rent, put food on the table, and provide other necessities.
“Governor Rauner has no idea what families like ours go through,” said Isaiah Spencer, a resident of Chicago who relies on LIHEAP to heat and cool his home during dangerous weather conditions. “The governor needs to stop using families like mine as pawns in his games. The governor needs to do his job and negotiate a budget.”
Rauner has insisted legislators rubber stamp his changes to pad the profits of big corporations and further enrich wealthy CEOs and big insurance companies before he will negotiate a budget. Democrats have worked to compromise with the governor in order to get down to the business of passing a balanced budget. While Rauner has talked about a property tax freeze, House Democrats went further and voted to cut property taxes. Acting on the governor’s demands, Democrats have passed significant reforms to the workers’ compensation system, voted to sell the Thompson Center and reformed the state procurement system. Democrats worked to pass a package of economic reforms that levels the playing field for small and medium-sized businesses in our communities and invests in businesses that invest in Illinois. But while Democrats have worked to find common ground with the governor the items he holds as pre-conditions to negotiating a state budget, the governor has refused to come back to the table.
“Where we can compromise with the governor without hurting middle-class families, we’ve worked to find common ground,” Madigan said. “Working families, the elderly, students and their parents and so many more are being directly harmed by Governor Rauner’s budget crisis.”
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Your move, Mr. Speaker
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* Click here for the background if you need to catch up. I’m told that the Senate will not file its budget plan until tomorrow morning, so we won’t know the real details until then. I’m still waiting on the reform bills from the House, but they may be delayed too.
…Adding… The Senate is going ahead with its appropriations bill filing today. Stand by.
* This is a good point from Greg Hinz…
Rauner’s office confirmed the governor is willing to sign this package if it passes the Legislature. Earlier, he had laid out general terms but not, to my knowledge, specifically promised to sign any package of legislation.
That’s true. It’s a major first for the governor, who has played coy for well over two years. Give him credit for that.
But it means Gov. Rauner is now on record supporting the Senate Democrats’ tax hike plan with a couple of alterations: 1) Four years instead of permanent; 2) It won’t be retroactive to January 1st, so they’ll lose a bunch of revenues that will have to be made up in however they deal with the mountain of overdue bills (borrowing is most likely).
I’m told the Republicans won’t introduce their own tax hike bill, but will instead insist that SB 9 be amended or a new version filed.
* From the Illinois Policy Institute’s news service…
Illinois legislative Republicans on Wednesday unveiled a new budget plan that they say is balanced and includes meaningful reforms to grow the economy. It also includes tax increases.
At a news conference at Chicago’s Thomson Center attended by several GOP senators and representatives, Republican lawmakers said their latest plan incorporates a number of tax increases that were part of the Senate’s grand bargain, but with a few changes.
Senate Democrats approved a plan last month to permanently raise the income tax by 32 percent, from 3.75 percent to 4.95 percent, with no Republican support. Under the new GOP plan unveiled Wednesday, the increase would expire after four years. The four-year expiration date would coincide with a four-year property tax freeze that also is in the GOP plan. The income tax hike also would not be retroactive to Jan. 1, as the Democrat plan is, but would go into effect beginning July 1.
A family with annual income of $60,000 would pay the state an additional $720 a year under the GOP tax hike proposal, with their tax bills spiking from $2,250 to $2,970.
The property tax freeze includes an exemption on existing debt service payments as requested by Senate Democrats, but also would allow residents to lower or increase their taxes through voter referendum.
* Sun-Times…
Most importantly, Illinois House Republican Leader Jim Durkin, R-Western Springs, said Rauner would sign the new plan if passed. And he noted Republican votes are essential to passing a budget plan.
Beginning on June 1, a three-fifths majority is required to pass bills rather than a simple majority. That means any budget plan will now need 71 votes to pass and require Republican support.
“If he’s committed to breaking the budget impasse he needs to work with us, and work with me,” Durkin said of the speaker. “If he doesn’t talk to us nor work with us, to me it is just a reflection on his desire to do nothing and to make sure that the governor is the one who will be hurt next year in the gubernatorial campaign.”
Also, note that the Senate Democrats aren’t as negative about the plan this afternoon as they were earlier in the day…
John Patterson, spokesman for Illinois Senate President John Cullerton, said there’s hope the Republican plan “is a serious, real step toward” compromise. He said the Senate president will wait for the bills to be filed to review the details and see how to proceed.
* The bottom line here is that the Senate Democrats, the governor and both Republican caucuses have all unveiled their own plans. The odd man out here is Speaker Madigan. It’s now his move.
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Question of the day
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* Say something nice about an Illinois politician you despise. No snark.
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Reporting on Illinois from the New Zealand left
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* I briefly mentioned the Jacobin Magazine story about Chris Kennedy yesterday. The mag describes itself as “a leading voice of the American left, offering socialist perspectives on politics, economics, and culture.” Here’s an excerpt…
To wit, Kennedy also appears to be a firm believer in the doctrine of centrist both-sidesism: that the problem with politics is that both major parties cater to their extremes, and what’s required is a politician who will bravely walk the middle of the road.
“In the sixties and seventies, it was really a fight for the middle, that is . . . undecided voters, let’s say independent voters,” he told WGN Radio in 2014. “Today it’s all about trying to motivate the extreme ends of the spectrum, trying to get hardcore liberals or hardcore conservatives to turn out, and that creates a gulf where we need a bridge.”
Of course, Democrats have employed this kind of rhetoric as justification for drifting further and further to the right — despite the fact that the general population is far more inclined toward “extreme” left-wing policies than many politicians and commentators will have you believe. Kennedy’s worldview appears to be one of reflexively tacking to the center at all costs — much like another recent Democratic politician for whom that tactic failed miserably.
Um, Hillary Clinton won Illinois by 17 points. She screwed up badly in Wisconsin, Michigan and Pennsylvania, but she most certainly didn’t “fail miserably” here.
The hit piece was written by a reporter who lives in New Zealand, and it really shows.
* For instance…
While it’s still early going, Kennedy has some key institutional backing for his run. He appears to have the backing of Democratic House Speaker Michael Madigan, who said Kennedy would make an “excellent candidate,” and whose staffers met with Kennedy during the DNC last year.
That was almost a year ago. These days, Kennedy is trashing Madigan and being interviewed by long-time Madigan haters.
The piece also dredges up the Bill Ayers, Steven Salaita and James Kilgore controversies, which would probably only be important to extreme leftists. It also does things like try to make a big deal out of a $1,000 campaign contribution.
* I did find this interesting, however…
Along with the rest of his family, Kennedy has also continued to benefit from a piece of accounting wizardry that has inoculated his family’s wealth from taxes. As Carol O’Donnell of Forbes outlined, the Kennedys have long used “dynasty trusts” to both protect their wealth from the greed of individual family members, as well as shield it from the government’s busy hands.
But upon selling Merchandise Mart to Vornado Realty in 1998, the family also potentially avoided paying capital gains tax on the sale by entering into an “operating partnership unit” with the company, giving the Kennedys an ownership stake in Vornado. This also means that individual Kennedys have been reaping millions of dollars in dividends for years. Given that Chris Kennedy was the Vornado Realty Trust’s executive officer from 2000 to 2011, it’s likely he did, too.
The Pritzker family also has a lot of these sorts of trusts. We could all be learning much more about this subject in the coming months.
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* Brian Mackey is in St. Clair County today covering a court hearing about a case involving human service providers who want to be paid without an appropriation, just like state workers, who also have a contract with the state…
The plaintiffs in that case include groups that provide services to people with disabilities, mental health problems and the like. (It also includes the social service organization run by Illinois First Lady Diana Rauner.) They argue that because the Rauner administration entered into contracts with them, they too should be getting paid — with or without a state budget.
* Follow along with ScribbleLive…
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Mendoza blasts Rauner, dings legislators
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* Comptroller Susana Mendoza has been writing letters to the editor this week. From her letter to the Southern Illinoisan…
At high school graduation parties this month, after congratulating the bright grad and their proud parents, make a note to ask where they plan on attending college.
Thanks to the state budget crisis, the higher education destination of choice for many Illinois teens is “out of state.” Every year, about 32,000 Illinois high school grads go out-of-state to college while only about 16,000 out-of-staters come here. That’s a net loss of 16,000 college bound students to out-of-state schools. They’re fleeing because they know the future of our state’s higher education institutions is unpredictable.
Under Gov. Bruce Rauner, funding for public four-year universities has been cut by $1.4 billion, or 60 percent. Funding for community colleges has dropped by two-thirds, or nearly half a billion dollars.
By failing to fund MAP grants, Rauner has put more than 100,000 Illinois students at risk of being unable to complete their studies.
Funding cuts have caused state universities to eliminate 1,400 jobs since Gov. Rauner took office.
There are no short-term solutions — state universities can’t fund capital improvements or borrow their way to temporary relief because downgrades from credit agencies have lowered their bond rating to junk status.
The impact of Rauner’s policies extends beyond campuses. Our universities employ more than 175,000 Illinoisans and generate more than $28 billion in annual economic activity. Studies show every $1 invested in higher education generates $4 in economic activity. Every lost job represents a family, a homeowner and a neighbor. Every lost dollar hurts businesses and impacts funding for local schools, infrastructure and first responders. Corporate leaders should be up in arms about losing our best and brightest.
* The letters are “personalized” for the region. Here’s her letter that appeared in the QC Times…
Western Illinois University’s budget has been cut by 55 percent since 2015. Degree programs have been eliminated, more than 200 staffers have been let go so far and mandatory staff furloughs have been implemented. Student fees have been hiked and the school is making $20 million in cuts.
So what should our college communities and students do amidst Rauner’s wreckage?
First, see how your local legislators have responded to the state’s higher education crisis. Remaining silent while our historic public institutions are decimated is unacceptable. Though it was recently unthinkable, some won’t survive to benefit future graduates without immediate relief.
We need a budget now. Legislators can stop the destruction taking place in their backyards and start rebuilding our state colleges and universities. The most important step is putting our communities ahead of Rauner’s political agenda.
But don’t just take it from me. Before they leave town, ask a college-bound senior what they think about the damage being done to our public universities. Their high school civics lessons will still be fresh in their minds – they can probably even explain how the state constitution says it’s the governor’s responsibility to introduce a balanced budget for the General Assembly to act upon – and they can truly put this unfolding tragedy in perspective for you.
* Related…
* Woman on Fire: The Illinois budget debacle has left both sides bruised, but state comptroller Susana Mendoza has emerged from the fight more powerful than ever
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Pritzker doubles down on “leaked” FBI tapes
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* JB Pritzker appeared on WBEZ this morning and was asked about the leaked FBI recordings of him talking with then-Gov. Rod Blagojevich in 2008. Pritzker repeated his claims from earlier that he knew before he ever announced that Gov. Rauner would “throw everything and the kitchen sink at me because, frankly, he’s got nothing to run on and they are afraid, the GOP and Bruce Rauner, are afraid to run against me.”
Pritzker also once again pointed what he considered to be the suspicious timing of the “leak,” which he says occurred on the final day of spring session when the governor couldn’t get a budget passed for the third time in a row. “So, at the close of the day with nothing to talk about, this is what they throw out there.”
When reminded that a Tribune reporter had earlier said that these recordings didn’t come from the Rauner campaign, Pritzker said…
“He said it didn’t come from Bruce Rauner. He didn’t say it didn’t come from the GOP. He didn’t say it didn’t come from the Koch brothers’ network. So, remember, they’re all in league with one another. So, he only excluded Bruce Rauner [and] I don’t think Bruce Rauner did pick up the phone and call them. So, this is a political hit.”
An ILGOP official flagged this audio for me earlier today, saying Pritzker “goes full on conspiracy theory.”
My own suspicion is that these tapes might’ve been leaked by one of Blagojevich’s defense attorneys (or perhaps a defense lawyer for a different defendant in the same case). Whether the leak was conveniently timed or whether the Trib has had these tapes for a while and the reporters just went back to listen to them is perhaps something for the FBI to consider if it ever looks into this breach of a federal judge’s seal.
* Audio of the exchange…
The full interview is here.
* This is what the Tribune reporter said, by the way…
We don’t ever talk about sourcing on these kinds of issues. I know the [Pritzker] campaign threw out a Bruce Rauner allegation. That’s not correct. I can say that. […]
This is Tribune reporting going back over … We have had routes for information on this case. I mean for me personally I’ve been protecting sources on this case back to 2006.
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* An analysis of the new Republican budget/reform plan can be read by clicking here. No legislation has been filed as I write this. I’ll update with bill numbers when I get them. You can hear the entire GOP press conference by clicking here. The GOP press release is here.
* As expected, there was lots of hyperpartisanship on display at today’s Republican press conference to unveil their new budget and reform plan, which they said would be signed by Gov. Rauner if it was passed.
House GOP Leader Jim Durkin, for instance, said Speaker Madigan’s members should “no longer put up with Madigan’s my way or the highway” approach. He said if an agreement could not be reached by the end of June, it would all be on Madigan’s head.
Leader Durkin insisted that the Republicans would not settle for “reform light” and that the final plan must be in “substantial compliance” with the proposals set forth today. If the Democrats counter with something that is “significantly diluted,” he said he and the governor wouldn’t accept it.
Sen. Karen McConnaughay said that the two sides were “very close” on an agreement in the Senate, but that the bills the Senate actually passed “didn’t reflect what we had been negotiating.” McConnaughay said it was the Democrats who “walked away” from the talks.
Sen. Dale Righter insisted that the package presented today “are compromises,” claiming “We’re putting on paper what the Democratic majority said they needed in the meetings… So, we are already there.”
* But is this really a compromise? The Senate Democrats ultimately rejected a four-year property tax freeze, but the Republicans say their four-year freeze is a compromise from Rauner’s permanent freeze - except the governor has been saying for weeks that he wants a four-year freeze.
A local government consolidation bill has already passed, but the Republicans now say they want to allow voters to initiate referendums on their own to consolidate government. This is another demand from the governor’s office, which had quietly threatened to veto the previous consolidation bill. Rank and file Republicans promised they’d push for a trailer bill if he agreed to sign it, and this proposal is apparently that plan.
The education funding reform bill “compromise” seems mainly targeted at Chicago, reducing many of the gains CPS made with the Democrats’ bill.
And the term limits proposal expands the concept from the originally agreed (in the Senate) limit on legislative leaders to include all constitutional officers.
* The Republicans also want a “hard” spending cap of $36 billion over four years. The Senate Democrats’ bill spent over $37 billion.
The budget proposal would also cut revenue sharing to local governments (which would, remember, have their property taxes capped) and transit agencies.
Again, we don’t have a detailed analysis, so I can’t tell you much more besides what’s in the GOP analysis.
*** UPDATE 1 *** Sen. Daniel Biss…
“Today’s press conference was more of the same from Bruce Rauner and the politicians he controls. Our state and its people are suffering while Bruce Rauner, the well-connected and their millionaire friends will continue to be just fine. There aren’t enough slick talking points, fancy poster boards or campaign commercials to change that. Until Speaker Madigan and Bruce Rauner sit down with each other - face to face - and hammer out a compromise, our state will continue down a path towards bankruptcy.”
*** UPDATE 2 *** From Senate President Cullerton’s spokesman John Patterson via text…
Hmm. Kinda speaks for itself. I don’t think three-page press releases are what Illinois needs. I hope there is real legislative language coming to back this up, language that rank-and-file Republicans will support and that the governor is committed to signing. Bipartisan compromise is the only way out of this now that the May 31 deadline passed. But a Republicans-only press conference in mid June doesn’t exactly scream bipartisanship. Where’s this plan been hiding the last six months?
* From the Senate Republicans…
Sen. Brady will be filing the budget, and Sen. Barickman will be filing the school funding measure, this afternoon.
The reform components of the Capitol Compromise will be introduced in the House.
*** UPDATE 3 *** Greg Hinz…
Rep. Greg Harris, D-Chicago, Madigan’s point person on budget items, was restrained.
“I’m glad they did it. I’m glad they just laid out their position,” he told me.
But without review, the plan at first glance seems to be based mostly on old proposals, Harris added. “There are some things in there that Democrats and Republicans could support. There are some things that our caucus has not supported in the past. The devil’s in the details. It will take some time (to review.)
Somewhat more negative was Madigan spokesman Steve Brown: “Most of these ideas have been considered by the House in the past. I’m not sure whether any of it is a compromise.”
Neither Brown nor Harris would say when the House might vote on a budget, either the one that’s already cleared the Senate or one of their own.
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Schneider endorses Biss
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* Press release…
Today, Daniel Biss announced the endorsement of Congressman Brad Schneider (IL-10) in his bid for governor.
“I’ve had the distinct privilege of working with Daniel over the years, and quickly came to appreciate his intellect, his wisdom and especially his great character,” said Brad Schneider. “I’ve watched him boldly step up and lead on issues like income inequality, women’s health care, and protecting our environment. Put simply, Daniel possesses the qualities we desperately need in our next governor: he is honest about our problems, unafraid to challenge conventional wisdom with new ideas, and keenly focused on what the people of Illinois need. Daniel knows that by putting people first, we can tackle our state’s challenges head on, and secure a better future for Illinois’s children. Because of his track record and his character, I’m proud to support Daniel.”
“I’m honored to have Brad’s support in this race,” said Daniel Biss. “Brad has always been a thoughtful and valued partner at the federal level, consistently demonstrating what strong advocacy on behalf of his constituents looks like. This has never been as urgent as it is today, as Brad is on the front lines of defending Illinois residents against Donald Trump’s attacks. As a friend, an ally, and a leader, I’m excited to work with Brad on our critical mission to put people first, and take our state back.”
* Sun-Times…
Schneider is throwing his support behind Biss — one of seven other Democratic candidates — in a swing district that saw narrow wins last year by Democrats U.S Sen. Tammy Duckworth and Illinois Comptroller Susana Mendoza. Rauner won the district by 12 points in 2014. […]
Another gubernatorial candidate, State Rep. Scott Drury, D-Highwood, is also in Schneider’s district, and the two have hosted events together. Drury didn’t endorse a candidate in Schneider’s 2016 primary race against Highland Park Mayor Nancy Rotering.
Reached for comment, Drury noted he didn’t ask for Schneider’s support.
“We appreciate the work Brad does in Congress. Consistent with past practice, we did not seek his endorsement in this race,” Drury said in a statement. “This remains a two-way race — those with proven loyalties to the Madigan machine versus our campaign. We like our odds.”
Duckworth actually won that district by 11 points. Mendoza squeaked by with a 2.5 margin.
Either way, that means little in a primary.
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* I’ve seen the responses by the ILGOP, the governor and most of the Democratic gubernatorial candidates to the Tribune’s property tax appeals series. But, curiously enough, JB Pritzker has been silent. Perhaps it was because of his own issues on this topic, or perhaps he’s still laying low after the release of the Blagojevich audio tapes.
Anyway, I asked for a response and here’s what the Pritzker people sent me…
“The property tax system in Cook County is flawed. We need to look at ways to make sure that every county across our state is investing in and upgrading its technology to assist in evaluating the millions of properties being assessed. We also need to continue simplifying and making it easier for residents to appeal assessment inaccuracies even without the help of a professional. Residents need to know their rights when it comes to asking for a reassessment, and educating homeowners should be a priority. When studies show inequality, it’s the government’s job to put in place remedies that ensure every resident is being treated fairly under the system.”
Your thoughts on this response?
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* Washington Post…
The shooter at the GOP congressional baseball practice this morning is James T. Hodgkinson of Belleville, Ill., according to law enforcement officials. Hodgkinson, 66, owns a home inspection business. His home inspection license expired in November 2016 and was not renewed, state records show.
Hodgkinson was charged in April 2006 with battery and aiding damage to a motor vehicle, according to online records in St. Clair County, Illinois. The charges were dismissed, records show.
You’ll know more when I know more.
*** UPDATE *** WaPo…
Charles Orear, 50, a restaurant manager from St. Louis, said in an interview Wednesday that he became friendly with James T. Hodgkinson, whom law enforcement officials identified as the shooter, during their work in Iowa on Sen. Bernie Sanders’s presidential campaign. Orear said Hodgkinson was a passionate progressive and showed no signs of violence or malice toward others.
“You’ve got to be kidding me,” Orear said when told by phone. “I met him on the Bernie trail in Iowa, worked with him in the Quad Cities area.”
Orear described Hodgkinson as a “quiet guy” who was “very mellow, very reserved” when they stayed overnight at a Sanders’s supporter home in Rock Island, Ill., after canvassing for the senator.
“He was this union tradesman, pretty stocky, and we stayed up talking politics,” he said. “He was more on the really progressive side of things.”
His apparent Twitter feed is here.
* Belleville News-Democrat…
Two days ago, Hodgkinson posted an angry tweet about President Donald Trump on Facebook.
“I Want to Say Mr. President, for being an [expletive deleted] you are Truly the Biggest [expletive deleted] We Have Ever Had in the Oval Office,” he wrote on Facebook.
Hodgkinson took a Democratic ballot in the primary election in 2016.
In 2012, Hodgkinson took part in a protest outside the downtown Belleville post office. He said he was part of a “99%” team drawing attention to the amount of money and political power the top 1 percent of Americans acquired.
* Rodney Davis was there, but not hurt…
* I’m moving on to other things. I’d suggest you monitor the Washington Post’s live coverage feed and check in with the Belleville News-Democrat.
Also, stay rational in comments or you’ll be banned for life. I’ve already banned one commenter.
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CTA also hit with credit downgrade
Wednesday, Jun 14, 2017 - Posted by Rich Miller
* The RTA wasn’t the only transit entity hit with a Moody’s downgrade yesterday. From Moody’s…
Late yesterday, Moody’s downgraded the Chicago Transit Authority (CTA)’s Sales Tax Receipts Revenue Bonds two notches from A1 to A3, and assigned a negative outlook. Also affected by this action are Series 2006 Building Refunding Revenue Bonds issued through the Public Building Commission of Chicago to refinance CTA’s headquarters, with $67 million outstanding; the rating on these bonds was lowered to Baa1 from A2. The negative outlook connotes continued downward pressure on the rating and the possibility of another downgrade in the next 12-24 months.
The downgrades are driven primarily by the authority’s exposure to the State of Illinois, which was downgraded to Baa3 from Baa2 on June 1, amid an extended political impasse in the Illinois General Assembly over how to balance the state’s budget. After two years of failing to reach an agreement, and operating with substantial budget deficits, the state has allowed a backlog of payments owed to CTA and other public- and private-sector entities to rise to record levels ($14.68 billion in aggregate as of June 5, according to the state comptroller). This prolonged impasse is putting pressure on various entities like CTA that are awaiting payment from the state.
The State of Illinois also collects regional sales taxes that support CTA and other Chicago-area transit providers, and it also provides other forms of supplemental funding. Like the state itself, CTA faces a worsening pension funding burden. Failure to make required annual pension contributions could jeopardize the flow of funds to holders of some of the authority’s debt, although to date CTA has made all required contributions.
* From the report…
Credit Challenges
» Economic and financial pressure caused by state and local governments’ overlapping pension liabilities, which will limit the ability to increase revenues for capital or operating needs
» Exposure to credit deterioration of related governments including the state and Chicago
» State aid payment deferrals and absence of state plan to address backlog of unpaid bills
» Backlog of capital investment needs and large unfunded authority pension liabilities
Rating Outlook
The negative outlook incorporates the state’s continuing credit deterioration, which threatens to exacerbate ongoing aid payment delays in coming months, barring an agreement to compensate for the state’s recent revenue losses. It also factors in the Chicago area’s economic vulnerability to tax increases needed to address pension liabilities, which could undermine regional sales tax revenues at a time when regional transit providers are trying to address deferred capital investment needs.
Factors that Could Lead to an Upgrade
» Stabilization of related governments’ credit positions
» Sustained trend of improving debt service coverage
» Pledge of new or increased revenues
» More stringent legal protections for bondholders
Factors that Could Lead to a Downgrade
» Substantial shortfalls in pledged sales tax revenues caused by economic conditions or other factors
» Prolonged decline in debt-service coverage, whether from increased borrowing or revenue underperformance
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* Leader Radogno is out of state visiting her grandchildren, so she can’t be there today…
House Republican Leader Jim Durkin, Senate Republican Whip Karen McConnaughay and a group of Republican lawmakers from the House and Senate will hold a press conference on Wednesday, June 14, 2017 at 11:00 a.m. on the 15th Floor, Blue Room of the James R. Thompson Center.
The topic of the press conference establishes a path forward on the state budget.
* Meanwhile, Rep. Steve Andersson (R-Geneva) is the House Republican floor leader and called an “emergency town hall meeting” the other day…
Andersson said he disagrees with those who say no budget is better than a bad budget.
“Our cash flow would be so limited, that we may default on our debt,” Andersson said. “Our bonds won’t get paid. Our state employees would not get paid.”
Instead, Andersson supports various plans to create a sustainable budget, one that is “a real budget, not a fake budget, not a feel-good budget.”
Raising the personal income tax rate to 4.95 percent and the corporate tax rate to 7 percent, along with some other taxes, would help shore up the state’s need for revenue to pay its bills, its pensions and support its programs, Andersson said.
“I do not want to raise taxes, but I was hired by you to govern,” Andersson said. “If we do not do something, we will fail as a state in a year.”
So, that looks like he essentially supports the Senate Democrats’ revenue plan.
Andersson went on to say that he doesn’t want a stand-alone school funding bill to put pressure on everybody to finally wrap things up.
* Meanwhile, we can cross next Monday off the possible special session day list…
The Illinois Republican Party is holding a Monday night fundraiser featuring all seven members of the state’s GOP delegation to the U.S. House plus what organizers are calling a “special guest” in Gov. Bruce Rauner.
The event is called “Cocktails with the Congressmen” and tickets start at $100 per person, with $10,000 required to play “host” at the Rosemont outpost of Gene & Georgetti.
Those paying $2,500 or more per person will gain access to a special hourlong reception prior to the general reception cattle call. Along with Rauner, scheduled to attend are Republican U.S. Reps. Peter Roskam of Wheaton, Randy Hultgren of Plano, Adam Kinzinger of Channahon, Rodney Davis of Taylorville, John Shimkus of Collinsville, Darin LaHood of Peoria and Mike Bost of Murphysboro.
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