* The governor recently asked him to stay on, so this is, by far, the biggest Rauner defection of the week. Boom…
Xpress Professional Services, Inc. (XPS) today announced that Mike Zolnierowicz of Chicago will head up XPS’ political operation starting Monday, July 17 and will concentrate on building the firm’s strategic political service. According to XPS Chief Executive Officer Greg Baise, Zolnierowicz’ background in political campaigns and his administrative experience as Chief of Staff for Illinois Governor Bruce Rauner dovetails perfectly with XPS’ business portfolio.
“Mike Z has proven himself both on the campaign trail and at the administrative helm of state government,” Baise said. “His understanding of the political environment extends beyond Illinois’ border, and his list of accomplishments is second to none in this very complex arena.”
After serving as Deputy Campaign Manager of Governor Bruce Rauner’s election campaign, Zolnierowicz—known simply as Mike Z to most in the political world— served as Transition Director for Governor Rauner’s incoming administration (First transition of Democrat Governor to Republican Governor in 30 years), and served as Rauner’s Chief of Staff from inauguration until June, 2016. He left that position to serve as Chief Strategic Advisor for GOP political operations through the 2016 elections where he presided over the increase of six GOP seats in the Illinois House in a campaign cycle President Trump lost Illinois by 17 points. Z was also the Chief Strategist for the statewide safe roads ballot initiative that won approval with 80% in 2016. In 2016 Z was featured in Crain’s Chicago “40 Under 40” series. Zolnierowicz managed
Congressman Rodney Davis’ first Congressional race in 2012 and served as deputy chief of staff for U.S. Senator Mark Kirk. He graduated from Downers Grove North High School and graduated Phi Beta Kappa and magna cum laude from Hope College.
Mike Z will join another Kirk alum, Eric Elk, who heads up XPS’ Fulcrum Illinois division.
Founded in 2004, XPS, Inc. is an independent for-profit subsidiary of the Illinois Manufacturers’ Association that has conducted campaign communications in eight states and specializes in measuring and shaping public opinions for both elections and issued-based efforts.
Zolnierowicz did not return messages seeking comment, but sources close to him say he was disturbed at a series of high-level Rauner staff changes this week, ending up this afternoon with the termination or resignation of most of the governor’s policy staff. Most of those positions reportedly will be filled with personnel from the Illinois Policy Institute, a liberatarian Chicago think tank which strongly opposes tax hikes and says the state’s budget woes can be solved via spending cuts and slashed benefits for state and local government workers.
* Rep. Sam Yingling (D-Grayslake) is sending a robocall into his district urging residents to call Gov. Rauner…
* Transcript…
Hi, this is State Representative Sam Yingling.
This morning, following the historic floods in our area, I asked Governor Rauner to declare a Lake County a disaster area, but as of now he has ignored my request.
Our district really needs him to act now in order for our neighbors to gain access to federal resources.
If you have a moment, please call the Governor and urge him to do his job and declare a Lake County a disaster area.
The purge within Gov. Bruce Rauner’s government continues today. Even as the governor was touring flood plagued Lake County—a little late, in the opinion of some—most of what left of his policy staff was being axed or hitting the road before they could be canned.
Here’s who’s out, according to multiple reliable sources:
• Corrections and criminal justice adviser Jennifer Grady-Paswater;
• Jason Heffley, who handled environment and energy and helped cut the recent Exelon nuclear funding deal;
• Brian Oszakiewski who came from the staff of U.S. Rep. Dan Lipinski, D-Chicago, and who handled transportation;
• Daniel Suess, who made policy recs for smaller state agencies.
Says one Rauner insider with a bird’s eye view of all of this: “The IPI (Illinois Policy Institute) folks have fully taken over. This government is going to be a petri dish for them for the next year and a half,” until Rauner’s term is up.
Brian O turned in his resignation earlier today. He walked out on his own and isn’t looking back. The other dismissals reportedly came after the governor finished his Lake County photo op.
Heffley is a huge talent, by the way. And he has a family.
…Adding… From a Jennifer Grady-Paswater friend…
She had a great gig at ISP and was really respected but left it to help Rauner with his criminal agenda. Without her help, many of the reform bills wouldn’t have moved. It’s a real shame.
That’s the thing that grates about this purge. These folks aren’t being fired because they’re incompetent. They’re all talented folks. They’re being shoved aside because they don’t align with the “new ideology.” And, in the past, including in this administration, when people were moved out of the governor’s office a spot was found for them in an agency, or on the campaign or whatever. Not under the new regime. They’re being dumped into the cold.
“This is a clear signal John Tillman, the CEO of the Illinois Policy Institute, has a firm grip on the new regime in the Rauner administrative,” a top Sneed source said.
*** UPDATE 1 *** Rauner spokesperson Eleni Demertzis has just resigned. Unlike some of the others, Eleni walked out on her own terms.
*** UPDATE 2 *** Allie Bovis, who oversees agency communications and was the traveling press secretary today for the governor’s trip to Lake County, has submitted her resignation effective next Friday. She’s also leaving on her own terms.
Both Demertzis and Bovis will hopefully be fine. They are top notch and should be able to get private sector gigs rather quickly.
*** UPDATE 3 *** Jared Dubnow, who is the governor’s Director of Operations, is reportedly leaving and will be going to DCEO. He made the trains run on time, but before that he was the governor’s top advance man and was Rauner’s “body man” during the campaign.
REPORTER: Have you been too preoccupied with reorganizing your staff and not focusing on this?
RAUNER: Not whatsoever. We have been monitoring this situation very closely, if I was needed here or requested here I would be here. I’m here today to say thank you ’cause we got awesome first responders.
2) Rep. Yingling received this phone message from a Rauner staffer at 10:50 this morning telling him that the governor was on his way in a few minutes…
I apologize for the last-minute notice. I’m sure you saw we had some staff changes, so things are fluid right now
That’s interesting. Folks focused on, um, administration personnel issues.
But we’re always building and enhancing, uh, the best team we can possibly have. I’m incredibly proud we’ve got an outstanding team. I think we’ve got the best team to lead uh, the, um turnaround and restoration and transformation of the state of Illinois.
And then he went on another one of his patented long soliloquies about the problems in Illinois, including saying property taxes “are too dang high and we’re gonna work to bring ‘em down,” before reporters got him back on topic…
We are always trying to recruit and retain the best people in America to serve the people of Illinois. That’s all that matters.
* Related…
* Mark Brown: Rauner won’t talk about Trump but borrows from his playbook
Moody’s: New revenues will begin to flow, but disparities and uncertainty remain for Illinois and its municipalities
Despite improved revenue prospects following the passage of its first comprehensive budget since fiscal year 2015, the State of Illinois (Baa3 review for downgrade) and its municipalities face lingering credit challenges, according to Moody’s Investors Service in a new report examining the budget’s implications.
“Illinois projects its income tax increases will generate an additional $4.7 billion in fiscal 2018,” says David Levett, a Moody’s assistant vice president and analyst. “The funds will help ease a long-running cash crunch that has driven up a $15 billion backlog of unpaid bills and placed growing pressure on other issuers in the state.”
The budget legislation authorizes supplemental cash resources totaling $7.5 billion, primarily consisting of the ability to issue as much as $6 billion of general obligation debt, to help pay down the state’s unpaid bills. However, the state’s ability to generate sustained surpluses to prevent further growth in its backlog remains unclear.
Among downstream issuers that receive state aid, K-12 public school districts face the greatest uncertainty since they will not receive revenue appropriated by the new budget until a separate, evidence-based funding model is enacted. The General Assembly passed a bill on May 31 that would adopt such a funding formula, but the governor does not support the bill in its current form. Any delay would further pressure school districts, including Chicago Public Schools (B3 rating under review)
“School districts with low property tax wealth or high poverty face the greatest risk from a state funding disruption because of their material dependence on state aid,” said Levett. “School districts with high property wealth and healthy reserves will be minimally affected.”
For public colleges and universities, the passage of a budget relieves some immediate operating and liquidity pressures by backfilling a material portion of a funding gap for fiscal year 2017. The comptroller has announced the release of $523 million, using existing education funds, to the state’s colleges and universities to cover MAP and operational funding. However, the ongoing timing of additional and future payments from the state is uncertain given the state’s massive bill backlog.
Smaller, regional public universities in Illinois are also confronting material challenges that linger following two years without a full budget. Their competitive positions have been impaired due to reputational damage, program and staff reductions, and notable enrollment declines that will continue this fall.
Community colleges, which had more flexibility to weather pressures during the two year impasse, will benefit from the renewed flow of funding for scholarship programs and state appropriations Although the state’s budget cuts some revenues for Illinois’ cities and counties, state aid distributions should become more timely, reducing uncertainty for local governments.
Extended delays in Medicaid payments from the state during the budget impasse had a limited effect on the majority of rated NFP hospitals, but came as hospitals continue to experience lower Medicare reimbursements and declining rate increases from commercial insurers. Illinois hospitals will thus benefit from the increase in unrestricted cash and investments as the state makes its payments. The June 30 ruling expediting state Medicaid payments will also benefit Illinois’ hospitals.
We’re gonna make sure that it’s done on a basis that’s fair for taxpayers all across the state and it doesn’t benefit only one community at the expense of residents of other communities.
Please share with me your best ideas for transforming Illinois through better public policy and improved operations by Friday at 3:00 p.m.
* The Question: There’s not much time left, so what are your “best ideas for transforming Illinois through better public policy and improved operations”?
It should go without saying that Wordslinger is a frequent critic of the House Democrats’ messaging. He ain’t Steve Brown.
Sheesh.
* The poor darlings were apparently stung by this Wordslinger comment on a story yesterday aimed at them…
If I could be radically candid, don’t tell me your problems, tell me your solutions that you can accomplish through the democratic processes as set forth by the Constitution and statute.
You’re in an action position now, not a coffee klatch. The taxpayers are compensating you very well. Get to work.
As a candidate for governor, Democrat Chris Kennedy has called for a sweeping overhaul of a property tax system he calls “a racket” that enables politically connected lawyers to arrange lucrative breaks for their clients.
But as the part-owner and manager of a four-acre parcel near the Merchandise Mart, Kennedy leveraged the very system he now condemns to shave $1.5 million off property tax bills for the lot, known as Wolf Point, just as he and partners were priming it for a $1 billion high-rise development.
An investigation by the Better Government Association found that Cook County Assessor Joseph Berrios had initially calculated a $23.5 million fair market value in 2012 for the then mostly undeveloped Wolf Point property. That was up sharply from the pre-2012 valuation by the assessor’s office of $13.5 million.
Instead, Kennedy appealed the valuation through the law firm of Thomas Tully, himself a former Cook County Assessor, who since 2012 has donated more than $135,000 to political funds tied to Berrios.
The appeal filed by Tully centered on an argument that the assessor had mistakenly thought a revenue producing three-story parking garage occupied the Wolf Point property. Such a structure had once existed but had long since been demolished and replaced by a surface parking lot.
In the appeal, Tully said it was proper to only consider revenue produced by the surface lot in calculating the property’s value for tax purposes. Berrios’ office agreed, choosing not to factor in the development potential of a property that the Kennedy group had already begun trying to exploit by 2012.
So, is there hypocrisy here? Some, but Kennedy did have a fiduciary responsibility to his investors at the time. And it’s not like he was ripping out toilets to game the system. The property was clearly being assessed too high. And Kennedy’s first hand experience ought to give him some credibility to talk about the system’s many problems. Instead, the BGA goes for “sizzle” stories.
Forecasters say flooding in north-suburban Chicago could worsen over the weekend as water flows down rivers into the state from Wisconsin.
The National Weather Service says the Des Plaines River and Fox River could crest on Saturday even though the area isn’t getting fresh rainfall. The flooding prompted Lake County to issue a disaster declaration.
Illinois Gov. Bruce Rauner, state Emergency Management Agency Director James Joseph and Lake County officials plan to survey flood damage Friday in Gurnee.
Rauner is slotted to visit the county today for a 10 a.m. briefing according to Lake County Chairman Aaron Lawlor. Lawlor said the call from Rauner’s office didn’t come until nearly 6 p.m. on Thursday. […]
Rauner was getting trounced in the local media for failing to visit, fly over, make a statement or even send a Tweet, after an unprecedented amount of rainfall in northern Illinois caused flash flooding, leaving subdivisions under water, shutting down a major amusement park, flooding a community college and even prompting the evacuation of a local hospital. Just over the border, Wisconsin Gov. Scott Walker is showing him up. Rauner won’t even see Illinois’ damage until today, Walker already declared a state of emergency in Kenosha, Racine and Walworth counties and deployed 100 members of the National Guard to assist with resident checks and other flooding-related complications.
* And from a press release…
Senator Melinda Bush (D-Grayslake) and Representative Sam Yingling (D-Round Lake Beach) issued a joint statement in response to the governor’s visit to Lake County to tour flood sites:
“Lake County residents have been working to pick up the pieces after major flash floods hit the area. The governor has not declared a state of emergency for Lake County, so residents with devastating property damage and no flood insurance have been unable to get access to low-interest loans that help people rebuild.
“Today, the governor will be in Lake County touring flood sites. The devastation experienced by our constituents over the last few days needs to be seen to be understood. Clean up from this historic flooding is going to take all of us working together.
“With more flooding expected to occur this weekend, we urge Governor Rauner to do what Governor Walker has already done, declare a state of emergency and call in the National Guard to provide much-needed relief to flood victims. Lake County residents need this help immediately.”
…Adding… The governor is not scheduled to view any areas of Rep. Yingling’s district and neither Bush nor Yingling have yet been contacted by the governor’s office. Very, very bad form.
…Adding More… A phone message left for Rep. Yingling by a Rauner staffer at 10:50 this morning, a half an hour or so after I posted that first “Adding”…
Hi Representative. This is [name] calling from the Governor’s office. I just wanted to let you know that he is going to be in Lake County this morning. He will be stopping in Gurnee at Warren Township High School to survey the flood damage and he’ll also be in North Chicago at the Strawberry Condominiums from 11:30 to noon. I apologize for the last-minute notice. I’m sure you saw we had some staff changes, so things are fluid right now. Hope you are staying dry. And let me know if you would like more details for this morning’s events. Otherwise just want to let you know he’s around your area. Have a nice weekend, thanks, bye.
* We’ve talked a little about this before, but here’s Greg Hinz…
Democrats may have provided most of the votes to override Gov. Bruce Rauner’s veto of the state’s new budget and income tax hike, but the Dems in the process picked up an idea that GOP fiscal conservatives have been pushing for years: reduced money for municipalities and other local governments.
My reference is to a little-noticed provision in the budget implementation bill, or BIMP, that imposes a 2 percent “collection fee” on sales taxes gathered for the locals by the Illinois Department of Revenue.
The handling charge will apply to sales taxes levied by local governments, including not only obvious targets such the city, Cook County, Schaumburg, Evanston, et al., but also the Regional Transportation Authority and levies by the Metropolitan Pier & Exposition Authority on automobile rentals and hotels, according to an analysis by the Illinois Municipal League.
The levy will not apply to the 1.25 percent local share of the state’s mandatory 6.25 percent sales tax, only to additional levies beyond that figure that are imposed by local governments. But it’s still an estimated $60 million-a-year hit, says the league, which is not at all happy about the loss.
This idea was first floated by the governor’s office.
A decision to move the annual Illinois State Fair Twilight Parade Aug. 10 is being criticized by defenders of a decades-long tradition.
The parade for years has headed north up Ninth Street/Peoria Road. This year, it will start in Lincoln Park and then go north through the park to Sangamon Avenue, bypassing Ninth Street/Peoria Road altogether.
“Personally, I’m not in favor of it,” Mayor Jim Langfelder said Thursday. “It comes down to the tradition of the parade route. I’m not sure if they realize the thousands of people who come out and enjoy the parade.”
Rebecca Clark, communications manager for the Illinois Department of Agriculture, said there are advantages to moving the parade. She said the starting point in Lincoln Park provides handicapped-accessible bathrooms, more shade from the mid-summer heat, and water fountains for parade participants and spectators. […]
Clark said there will also be cost-savings because fewer streets will need to be blocked off. The fair is charged by the city for the blocked-off streets, she said, a cost that is expected to drop from about $10,000 to less than $5,000.
Saving money is good. And, who knows, maybe it’ll be a better parade. Wait and see.
The Southern Illinois University Board of Trustees on Wednesday reviewed a financial sustainability plan for the Carbondale campus that recommends the closure of seven programs and the consolidation of some departments.
Even with state appropriations restored after the passage of Illinois’ first full budget in two years, administrators say the sweeping structural changes are needed to account for SIUC’s dwindling student enrollment.
The financial sustainability plan recommends the closure of the following programs “based on a significant history of low enrollment and substantially weaker comparative performance on other metrics”:
Illinois lawmakers who recently ended the longest fiscal standoff of any state since the Great Depression are counting on an ironic strategy to dig out of mountains of debt: borrowing even more money.
It’s an unorthodox approach, considering deficit spending largely created the mess, and Illinois’ worst-in-the-nation credit rating makes borrowing inordinately expensive. However, supporters say it’s the best way to begin to erase $14.6 billion in overdue payments to vendors and service providers.
Bills that are 90 or more days past due incur 12 percent in late-payment fees. By paying off a chunk of that at a time with the sale of bond proceeds, the state could cut that rate in half.
“We are being smothered by our liability and our indebtedness, not only in the state and trying to deal with the budget, but with the people we owe money,” said Democratic Sen. Donne Trotter, of Chicago, the assistant majority leader who sponsored the measure.
Trotter said it currently takes Illinois about 200 days to pay a bill, but his plan would reduce that to as few as 60 days.
The Democratic-controlled General Assembly endorsed the budget — and a $6 billion borrowing scheme — over Republican Gov. Bruce Rauner’s vetoes. However, it’s unclear whether Rauner will actually use the borrowing authority given to him. He has said nothing about it in the 10 days since the budget was passed, and his spokeswoman, Eleni Demertzis, declined to comment on Thursday.
It’s not necessarily “unorthodox.” For two years, the state spent more than it was taking in, under judicial orders and executive branch contracts and leases. Revenues now balance with spending, but businesses and not-for-profits are owed billions. Continuing to borrow from them is irresponsible and forces continued and unnecessary hardships. It’s therefore better (and in many cases cheaper) to borrow on the bond markets.
