* Tomorrow is a state holiday and this little website observers all state holidays except when they conflict with session days. So, unless something really big breaks, I’ll talk with you Wednesday…
Susana Mendoza released a new ad that highlights her successful record of taking on Gov. Bruce Rauner to save taxpayers billions and help individuals hurt by Rauner’s two-year budget impasse. The ad underscores that Mendoza is bringing that same energy and determination to transform Chicago’s schools and make its streets safe.
She is described as an agent of change, creating a more transparent government.
A champion for those who couldn’t advocate for themselves.
Susana Mendoza, a tough as nails fighting mom, who took on Bruce Rauner to save taxpayers billions.
A financial expert who knows how to balance budgets.
Mendoza is running for mayor with a bold plan to transform schools and make our city safe.
Read her plan at susanamendoza.com.
Polling shows her falling behind. I don’t think that soccer ad did her a bit of good. Chicagoans appear to be looking for a strong leader. This spot may help her tap into the sentiment.
With highly selective editing, Preckwinkle’s ad uses video clips from a speech Mendoza gave on the Illinois House floor in 2011 in which she declares opposition to the death penalty to leave the impression that she actually remained an enthusiastic supporter of it.
While it is true that a decade earlier Mendoza backed an expansion of the death penalty, the speech from which the clips are taken made an entirely different point. She had changed her mind and wanted to end capital punishment in Illinois because the state had sentenced too many people to death row that later had been found innocent. Indeed, Mendoza then voted for a measure that abolished the death penalty.
None of that footage or context was used in the ad, which grossly misrepresents Mendoza’s position. We rate it Pants on Fire!
* Looks like the depositing state assets in the pension funds idea we discussed the other day is getting a close look…
Governor JB Pritzker today appointed leaders of two new taskforces created to make several specific recommendations to improve the standing of the state’s pensions funds.
“The enormity of Illinois’ pension problems at all levels of government cannot be overstated, and these two taskforces will provide concrete recommendations on two ideas that will improve the health of pension funds around the state: potential consolidation of funds to achieve the highest investment returns and transferring valuable state-owned assets to the pension funds to help address our nearly $134 billion in unfunded liabilities,” said Deputy Governor Dan Hynes, who will receive the recommendations. “Illinois has a long way to go to dig out of the fiscal mess we inherited, but with discipline and focus, we can take commonsense steps that will make life better for the hardworking people of this state and restore fiscal stability.”
Pension Consolidation Feasibility Taskforce
The state is home to 671 separate public pension funds, which each make decisions impacting their respective members. This results in a fractured system that often duplicates functions across pension funds, and that limits the smaller funds to a narrow range of potential investments. Smaller funds also pay higher fees because the amount in their funds is too low to meet institutional investor thresholds.
In total, these funds manage $170 billion in assets and have accrued liabilities totaling more than $355 billion. Of all those funds, 656 are suburban and downstate police and fire pension funds that are regulated by the Illinois Pension Code.
These liabilities have placed increased pressure on local governments and the State of Illinois, driving up property taxes and crowding out funding for critical public services. Consolidation could provide improved returns on investment, and increased efficiencies on investment and administrative fees; thereby increasing assets to pay for obligatory public workers’ pensions and alleviating the burden of growing property taxes.
The Pension Consolidation Feasibility Taskforce will be co-chaired by William Brodsky, former Chairman and CEO of the Chicago Board Options Exchange (now known as CBOE Global Markets); Pat Devaney, President of the Associated Fire Fighters of Illinois; and Christine Radogno, former Illinois Senate Minority Leader. The taskforce’s mandate is to explore and make recommendations for consolidation of pension funds, beginning with downstate police and fire funds, as well as evaluating the state’s three pension funds, in order to achieve the greatest value for pensioners and taxpayers.
Pension Asset Value and Transfer Taskforce
Currently, the state’s five pension systems have unfunded liabilities of nearly $134 billion and growing, while the state owns and maintains tens of billions of dollars in real estate and infrastructure assets, according to the Department of Insurance’s biennial pension report. These assets could be used in a way that is far more financially responsible for the state, its pension systems and the taxpayers of Illinois.
The Asset Assessment Taskforce will be co-chaired by Jaqueline Avitia-Guzman and Jamie Star. The taskforce’s mandate is to analyze state assets across Illinois and make recommendations as to their best use to help stabilize the state’s finances. Recommendations could include, but are not limited to, the repurposing or sale of these assets or transfer to state pension systems to improve their levels of funding.
Background
Jaqueline Avitia-Guzman
Jackie Guzman is a finance executive with 20 years of experience leading, creating, and implementing financial and operational strategies for Fortune 500 companies located in the Chicagoland area. Currently, she serves as Head of Corporate Development for Sears Holdings Corporation where she is responsible for M&A, inclusive of joint ventures and divestitures. Prior to Sears Holdings, she was at the University of Chicago, pursuing an MBA, where she interned for two private equity firms in Chicago. Before business school, Jackie worked in the financial services industry. She received her master’s in business administration from the University of Chicago and her bachelor’s in economics from the University of Illinois at Urbana-Champaign School.
William Brodsky
William J. (Bill) Brodsky has been a leader in the Chicago financial community since 1982. He is the Chairman of Cedar Street Asset Management LLC. After serving as Executive Vice President and Chief Operating Office of the Chicago Mercantile Exchange, (CME), he was President and CEO of CME from June 1, 1985 until February 1997 when he became Chairman and CEO of the Chicago Board Options Exchange (now known as CBOE Global Markets). He was in that position until May 2013, when he became Chairman, a position he served until his retirement in March 2017. He is the only exchange executive from Chicago to be elected as Chairman of the World Federation of Exchanges.
For over 20 years, he has served in various board positions at Northwestern Memorial Healthcare, including Chairman of the Investment Committee for 14 years, and later as Chairman of Northwestern Memorial Hospital. Since May 2013, he has been Chairman of Navy Pier, Inc. He is a member of the Commercial Club of Chicago and the Civic Committee. Bill is an attorney and member of the Bar in both New York and Illinois.
Pat Devaney
Pat Devaney is the President of the Associated Fire Fighters of Illinois. Devaney first started his career with the Champaign Fire Department and IAFF Local 1260 in 1995. He served as an elected firefighter pension fund trustee for a decade and has advocated for firefighter pension policies in Springfield for the last fifteen years.
Christine Radogno
Christine Radogno is a former Republican member of the Illinois Senate, representing a Legislative District in Cook, DuPage, and Will Counties from 1997 to 2017. Radogno served as the Minority Leader, the first female leader of a political party in the Illinois Legislature.
Prior to serving in the state senate Radogno served for eight years as a Village Trustee in LaGrange. Radogno received a bachelor’s degree and a master’s in social work from Loyola University in Chicago. She was employed in the field of mental health before entering politics.
Jamie Star
James Star is Chairman of Longview Asset Management LLC, an investment firm that oversees public and private investments on behalf of individuals, trusts, and charitable foundations. In this role and his prior role as President and CEO, Mr. Star has managed portfolios of publicly traded securities and investments in private equity and hedge funds. He has also overseen direct investments in private companies. Prior to this, he ran a top-performing securities partnership. He began his investing career as a securities analyst and portfolio manager at Harris Associates, a leading advisor to mutual funds and private clients.
Mr. Star is a director of Equity Commonwealth, a publicly-traded real estate investment trust that owns commercial office space. He is also a director of Petsmart/Chewy, the nation’s largest on line and traditional retailer of pet products and services, and Teaching Strategies, a provider of educational assessment software and curricula. He is a trustee of several pension funds and a private trust company, and formerly served on the boards of two public mutual fund complexes and multiple private companies. His non-profit work includes service as a member of the Global Advisory Board of the Kellogg Graduate School of Management and as president of the Star Family Foundation, which he founded in 2012.
A lawyer by training, Mr. Star practiced corporate law at Kirkland & Ellis following his clerkship with a federal court judge. He is a graduate of the Kellogg Graduate School of Management at Northwestern University, Yale Law School and Harvard College.
* Meanwhile, the Illinois Public Pension Fund Association warned against consolidation last week…
The studies also concluded that any move to consolidate all 641 downstate Illinois police and firefighter pension funds into one massive state pension system would be expensive and fraught with risk. Such a consolidation would require that almost all assets from each local fund be liquidated and then re-invested in the larger fund. This move could generate a one-time cost of up to $155 million in commissions, taxes, fees and potential market losses, which would increase the pension funds’ unfunded liability by that amount as well. It would take many years to recoup that cost in the minor administrative savings realized by consolidation.
Consolidation poses a particularly high risk if the transfer occurs during a period of stock market growth and the local pension funds miss out on the resulting gains from their existing investments, the studies found. In addition, economies may suffer when the local banks and asset managers who handle individual pension funds are set aside in favor of larger, out-of-state investment firms that would likely handle the consolidated pension fund.
The IPPFA would essentially be out of a job if the 641 funds consolidated. Its study is here.
NotifyChicago: All Northbound lanes on Lake Shore Dr are closed from Monroe to Grand due to a CDOT Structural Emergency on the Bridge. Seek alternate route.
City crews fixing a nearby light pole spotted the cracked beams Monday morning, and reported the problem.
Shortly before noon, the city’s Office of Emergency Management and Communications said all northbound lanes on Lake Shore Drive were closed between Monroe to Grand as a result, and advised drivers to use an alternate route.
The Chicago Department of Transportation said crews were “assessing the situation” on the bridge, and would issue an advisory once they determine how long it would take to make repairs.
Thank goodness it was caught in time.
…Adding… Northbound Lake Shore Drive will be closed in that area at least through tonight, the Sun-Times reports.
*** UPDATE 1 *** Another one today…
Oak Park, IL: Bridge crews were called to the Oak Park Ave bridge after 8:30 a.m. after chunks of the bridge began to rain down on vehicles passing below: -At least one vehicle had the rear window smashed -@IDOT_Illinois crews closed lanes to repair and clean-up the debris pic.twitter.com/RwppXKsU9w
…Adding… A longtime reader/commenter sent this pic of Union Station today. Platform between tracks 2 and 4…
…Adding… Local 150…
This afternoon’s failure and emergency closure of a northbound Lake Shore Drive bridge was dangerous, inconvenient, costly, and – most tragically – it was completely avoidable.
Bridge failures are only one of the inevitable results when our critical infrastructure is neglected and left in disrepair. The decay of the Lake Shore Drive bridges is among the most advanced in the City of Chicago, but this is far from the only bridge that is teetering on the brink of failure.
According to the American Society of Civil Engineers, more than 2,300 Illinois bridges are “structurally deficient,” yet Illinois has been without a statewide infrastructure funding bill since 2009. ASCE gave an overall grade of C- to Illinois’ infrastructure, including road, rail, utility and other vital infrastructure
“When the state fails to invest in our infrastructure, we are neglecting a problem until it becomes a crisis,” said James M. Sweeney, President-Business Manager of the International Union of Operating Engineers Local 150. “This neglect can have deadly consequences, as we saw in the Minneapolis I-35 Bridge collapse, which killed 13 innocent motorists. How many must die in Illinois before our leaders treat this as the crisis that it is?”
“This is far from an isolated problem,” Sweeney continued. “The next time you drive under a bridge, look up and ask yourself how safe you feel.”
*** UPDATE 2 *** Reopened…
BREAKING:: @ChicagoDOT says all northbound lanes on Lake Shore Drive have reopened. Story to come.
State Rep. Brad Halbrook, R-Shelbyville, has filed a resolution appealing to the United States Congress to separate Chicago from Illinois and making it a new state.
The resolution, filed Feb. 7, is co-sponsored by State Reps. Darren Bailey, R-Louisville, and Chris Miller, R-Robinson. Halbrook said Monday that the he filed the resolution to bring attention to the disconnect between the Chicago area and the rest of the state.
“The purpose of this resolution is to show the disconnect between the northeast corner of the state and downstate Illinois. They make financial decisions and policies that don’t follow what the rest of the state wants,” Halbrook said. […]
Halbrook said he has heard that some people from the northeast corner of the state say that Illinois could not survive without Chicago, and because of that sentiment, Halbrook said those from that area should be the “first in line” to advocate for the separation.
Um, I don’t get it. If you’re an Illinoisan and believe that pulling Chicago out of Illinois would hurt Illinois, why would you ever be for that?
Thursday, state Sen. Sue Rezin (R-Morris) filed legislation (Senate Bill 1310) that gives the Illinois Department of Natural Resources authority to charge admission to Starved Rock. If enacted, any fees would take effect Jan. 1, 2020.
But Rezin emphasized in a Friday telephone interview that any fee would be “nominal” and applied to vehicles only — a strategy she said has worked well in other states — with unmanned kiosks where visitors can pay.
She said she insists on keeping park access free to local residents.
* I dunno. This could be considered commercial speech, and limits can be placed on that…
Gunsmiths in Illinois are concerned that a bill filed at the statehouse violates not just the Second Amendment, but also the First Amendment.
State Rep. Kathleen Willis, D-Addison, filed House Bill 2253 to address weapons that have been called untraceable firearms. Her bill would make possession of certain unfinished gun parts a crime unless the person has a Firearm Owners Identification card, or FOID.
Certain gun parts, such as a semi-automatic rifle receiver, where the ammunition is fired from, can be bought unfinished and sometimes without serial numbers. Finishing off certain parts without serial numbers would be a Class 2 felony under Willis’ measure.
Her bill also makes using a 3D printer to make a gun without a serial number illegal. The bill also prohibits disseminating digital blueprints for finishing off certain gun parts or printing guns unless specific provisions are followed.
In the past, a school day was mandated by the state to be five hours of direct supervision by a teacher, and how the state funded schools was based on student attendance during those days.
In August 2017, the evidence-based funding formula was signed in to law, shifting the way state money is allocated to school enrollment figures and the number of students in need of extra supports.
Because funding was no longer tied to attendance, the law also opened the door to more flexibility in terms of where and how students received instruction. […]
Fearing schools might take flexibility too far, the Illinois Senate Education Committee, chaired by Sen. Jennifer Bertino-Tarrant, D-Shorewood, unanimously approved a measure to reinstate the five-hour mandate. Bertino-Tarrant is the former Will County regional superintendent of education.
Among those who’d rather not see the old rule brought back is Indian Prairie District 204 Superintendent Karen Sullivan, who at a recent legislative breakfast said students today are involved in internships, job shadowing, and online or blended courses. “All those things don’t fit into a five-hour, neat instructional day,” she said.
* Remember when Gov. Rauner declared the Sterigenics poisoning in and around Willowbrook was not a “public health emergency?” Some folks battling the company are saying that Gov. Pritzker should declare such an emergency. From state statutes…
“Public health emergency” means an occurrence or imminent threat of an illness or health condition that:
(a) is believed to be caused by any of the following … widespread exposure to an infectious or toxic agent that poses a significant risk of substantial future harm to a large number of people in the affected population.
Sec. 4. Definitions. As used in this Act, unless the context clearly indicates otherwise, the following words and terms have the meanings ascribed to them in this Section […]
“Disaster” means an occurrence or threat of widespread or severe damage, injury or loss of life or property resulting from any natural or technological cause, including but not limited to fire, flood, earthquake, wind, storm, hazardous materials spill or other water contamination requiring emergency action to avert danger or damage, epidemic, air contamination, blight, extended periods of severe and inclement weather, drought, infestation, critical shortages of essential fuels and energy, explosion, riot, hostile military or paramilitary action, public health emergencies, or acts of domestic terrorism. [Emphasis added.]
* From the governor’s enumerated powers during a declared disaster…
20 ILCS 3305/7) (from Ch. 127, par. 1057)
Sec. 7. Emergency Powers of the Governor. In the event of a disaster, as defined in Section 4, the Governor may, by proclamation declare that a disaster exists. Upon such proclamation, the Governor shall have and may exercise for a period not to exceed 30 days the following emergency powers; provided, however, that the lapse of the emergency powers shall not, as regards any act or acts occurring or committed within the 30-day period, deprive any person, firm, corporation, political subdivision, or body politic of any right or rights to compensation or reimbursement which he, she, it, or they may have under the provisions of this Act:
(1) To suspend the provisions of any regulator statute prescribing procedures for conduct of State business, or the orders, rules and regulations of any State agency, if strict compliance with the provisions of any statute, order, rule, or regulation would in any way prevent, hinder or delay necessary action, including emergency purchases, by the Illinois Emergency Management Agency, in coping with the disaster.
(2) To utilize all available resources of the State government as reasonably necessary to cope with the disaster and of each political subdivision of the State.
(3) To transfer the direction, personnel or functions of State departments and agencies or units thereof for the purpose of performing or facilitating disaster response and recovery programs.
(4) On behalf of this State to take possession of, and to acquire full title or a lesser specified interest in, any personal property as may be necessary to accomplish the objectives set forth in Section 2 of this Act, including: airplanes, automobiles, trucks, trailers, buses, and other vehicles; coal, oils, gasoline, and other fuels and means of propulsion; explosives, materials, equipment, and supplies; animals and livestock; feed and seed; food and provisions for humans and animals; clothing and bedding; and medicines and medical and surgical supplies; and to take possession of and for a limited period occupy and use any real estate necessary to accomplish those objectives; but only upon the undertaking by the State to pay just compensation therefor as in this Act provided
* The Question: Should the governor declare a “public health emergency” disaster in order to shut down Sterigenics? Take the poll and then explain your answer in comments, please…
Abandoned by his mother, the baby boy — he was about 2 — ended up at an Indiana orphanage during the Great Depression.
His luck changed when a WWI veteran and his wife filled out the “boy or girl” portion of an adoption application with the words: “any child we can love.”
That veteran, William Earl Quigley, made his adopted son his namesake and gave him whatever else he could working as a handyman and farmhand in a rural area outside Indianapolis.
The origin story stayed with him always — from when he served in the Army during the Korean War era as a newlywed to the time he retired with a pension from AT&T — and formed the bedrock motivation of his life: “You work hard to give your kids a better chance than you had.”
On Saturday, after a long battle with Parkinson’s disease, Mr. Quigley, 92, died knowing he did just that.
His daughter Chris is a retired school superintendent. His daughter Linda was a social worker. His son Dan, who passed away two years ago, owned a used-record store. And his son Mike is a U.S. congressman.
“He didn’t like most politicians, so the irony that his son grew up to be one was not lost upon him,” said Mike Quigley, who represents Illinois’ 5th Congressional District.
* Congressman Bill Foster’s brother also passed away. Milwaukee Journal-Sentinel…
Fred Foster, who co-founded and helped grow Middleton-based ETC into a global, 1,000-employee company in the theater lighting business, has died at the age of 61.
Foster helped launch the company with his brother, Bill, and two friends in the mid-1970s. Today it is recognized globally for manufacturing lighting and rigging technology for entertainment and architectural use, with employees in 10 countries and more than 300 authorized service centers around the world. ETC stands for Electronic Theatre Controls. […]
In a statement Friday, the company called Foster “a visionary, an innovator, and a role model.”
“The ETC culture of family, support, and encouragement is attributed to Foster and his vision of a creating a people-focused environment. It’s difficult to put into words what it has been like to work for and with such an inspiring leader,” the company said.
Attorney General Kwame Raoul and Kane County State’s Attorney Joe McMahon today filed a petition for a writ of mandamus in the Illinois Supreme Court challenging the legality of former Chicago police officer Jason Van Dyke’s prison sentence.
The mandamus petition challenges the prison sentence issued Jan. 18 by Cook County Circuit Court Judge Vincent Gaughan following Van Dyke’s conviction for the shooting death of Laquan McDonald. Gaughan sentenced Van Dyke to 81 months in prison based on his conviction for second degree murder and not the more serious charges of 16 counts of aggravated battery with a firearm.
Raoul and McMahon, the special prosecutor who tried the case against Van Dyke, will work collaboratively in asking the Supreme Court to review whether the sentence was proper under the law. In their filing, Raoul and McMahon asked the court to direct Judge Gaughan to vacate Van Dyke’s sentence for second degree murder, impose a sentence on each of the 16 counts of aggravated battery with a firearm, and determine which of the aggravated battery with a firearm convictions involved “severe bodily injury” warranting consecutive sentences.
“After conducting a thorough review of the record in this case and the law, and in consultation with the special prosecutor, I determined that a mandamus action must be pursued in the Illinois Supreme Court,” Raoul said. “I appreciate the work done by the Kane County State’s Attorney throughout this case, and my office will continue to work with his as we seek the Supreme Court’s review.”
“It is important that a police officer was held accountable for criminal conduct,” said McMahon. “But we argued at the sentencing hearing that Jason Van Dyke should be sentenced for the aggravated battery with a firearm convictions. The ability for the prosecution to challenge a sentence is very narrow, but this might be one of those situations.”
If the petition is accepted by the court, Van Dyke’s attorneys will have seven days to file an objection, unless the court sets a different deadline. There is no timeframe for the court to rule on whether it will accept the petition and consider it.
Monday, Feb 11, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
Right now the next Big Tobacco industry is using Illinois’ sad finances as an excuse to put more drugs on our streets. As we fight to increase age limits for our kids to buy cigarettes and try to stem the tide of the opioid crisis, Big Marijuana is rushing to create an unchecked pot industry in our state. They don’t want you to ask questions, and they don’t want you to know the facts about the rush to legalization.
Fact #1: Marijuana potency has increased in some cases twenty-fold (up to 99% THC) since the 70s when Woodstock weed was about 5%. Fact #2: High potency marijuana is marketed through colorful candies, gummies, and sodas to tempt children. Fact #3: In Colorado, drugged driving went from killing one person every 6.5 days to one person every 2.5 days.
We must ask the tough questions during the rush to legalize the next big business in the state. There must be a better way to solve the state’s budget mess. Creating a new drug industry isn’t a smart one. Visit www.healthyillinois.org to learn more and stop the next Big Tobacco industry in Illinois.
Surrounded by criminal justice reform advocates at the Safer Foundation, Governor JB Pritzker took executive action establishing the Justice, Equity and Opportunity (JEO) Initiative that will be housed under and spearheaded by Lieutenant Governor Juliana Stratton.
The JEO Initiative will centralize the state’s criminal justice reform efforts by fostering coordination and collaboration among stakeholders, executive agencies and organizations from across the state. With the goal of creating a justice system that reflects Illinois’ values, the initiative will conduct research, pilot programs and advocate for legislation to ensure all branches of government are working proactively to expand fairness and equity.
“For Illinois to truly lead on criminal justice reform, we must bring real and lasting economic opportunity to every corner of our state. It’s no accident that this initiative puts Justice, Equity and, Opportunity side by side,” said Governor JB Pritzker. “With decades of experience working to bring reform to our system of justice in Illinois, I can think of no better person to spearhead this initiative than our Lieutenant Governor, Juliana Stratton.”
“Criminal justice reform has been a focus throughout my professional career and I thank Governor Pritzker for believing in me to lead this initiative, and I will proudly oversee these much-needed efforts,” said Lt. Governor Juliana Stratton. “This is needed because our justice system is not working. The JEO Initiative will move us from a strictly punitive system to one that examines the root causes of the issues we face while creating solutions that put community at the center.”
Addressing needed reforms at the Illinois Department of Corrections (IDOC) will be a top priority of the initiative. Currently around 43,000 people are imprisoned in the IDOC prison system, which was built for about 32,000. Violent crime has increased 18 percent between 2016 and 2017. Illinois spends more than $1.3 billion a year on IDOC, with budgets increasing even as the prison population decreases. And nearly 48 percent of people released from prison will recidivate within the following three years.
The JEO Initiative will work to reverse those trends through the following components:
Within 90 days, the initiative will deliver a report to the Office of the Governor describing the goals and the deliverables for its first year.
On January 1 of each year, the initiative will deliver a report to the Office of the Governor describing their accomplishments, as well as the opportunities and challenges the Initiative encounters and the goals and deliverables for the upcoming year.
Spearheaded by Lt. Gov. Stratton, the initiative will have three full-time staff within the Office of the Lieutenant Governor.
* He’s the new Chicago bogeyman. From a press release…
Chicago mayoral candidate Lori Lightfoot released the following statement in response to recent news regarding Alderman Ed Burke.
“Every day, it’s a different mayoral candidate connected with Ed Burke in a different way,” said Lightfoot. “Just in the past few days, we’ve read about Gery Chico defending his decision to serve as Ed Burke’s chief of policy during Burke’s racist Council Wars, Garry McCarthy certifying six ex-Chicago cops as special police officers for Ed Burke, and Toni Preckwinkle ally Joe Berrios giving Ed Burke a property tax break just for asking.
“Voters don’t want a mayor bought and paid for by Ed Burke. While an endless stream of news stories shows mayoral candidates tied to Ed Burke and his broken political machine, I stand apart as an independent reformer ready to lead our city in a new, progressive direction.”
The past is always fair game, of course, and so she’s well within her rights to go after her opponents on this stuff. It would be malpractice not to do so.
But even if Burke wins reelection he’ll be a shell of his former self. And there’s nobody in the city council who can easily fill those shoes.
* Related…
* Sun-Times Endorsement: : Lori Lightfoot for mayor — and a new Chicago Way: Mayoral candidates and re-election-seeking aldermen have been tripping over each other in a rush to condemn Burke and propose ethics reforms. Lightfoot was way ahead of them. She targeted Burke for removal as Finance chairman even before the unprecedented Nov. 29 raid on his ward and City Hall offices. She also released an ethics plan that would prohibit aldermen from holding paid side jobs that conflict with the city’s interests.
* Lori Lightfoot’s new ad takes aim at the issue that’s redefined the Chicago mayor’s race: Public corruption: “Candidates try distancing themselves from Ed Burke,” Lightfoot says in the ad, titled “Light,” before photos of City Hall veteran Gery Chico, Cook County Board President Toni Preckwinkle, Illinois Comptroller Susana Mendoza and former U.S. Commerce Secretary Bill Daley appear on the dimly lit screen. “The truth is, they’re all tied to the same broken Chicago machine. Except me.”
* Lightfoot TV ad shines light on ‘Burke Four’ she says are ‘like cockroaches’: According to Lightfoot, the commercial was filmed at the Palmer House Hilton in a room with an “escape exit” where Al Capone used to play poker; he could sneak out that secret door when his lookouts in the lobby told him the police were on their way up.
That’s the question we have after a measure to increase the state’s minimum wage to $15 an hour over the next six years zoomed out of the Illinois Senate in less than two days. The distressing answer appears to be that new Democratic Gov. J.B. Pritzker is putting politics above policy on a serious issue that has huge implications for the state’s economy. […]
Given how heavily Pritzker campaigned on raising the minimum wage to $15 an hour, it was expected that a proposal to provide a bump would be brought up this legislative session. But the speed at which it has flown through the Senate — with the promise to do the same in the House this week — is troublesome. Business leaders say they have concerns about the proposal and ideas they want to be considered, but aren’t being heard. It’s disappointing that Pritzker — who wants this approved by the time he gives his first budget address Feb. 20 — is pushing for his first major legislative win at the cost of breaking his vow that he would seek compromise before decisions with far-reaching implications are made.
The legislative language for the pay increase was introduced Wednesday and the Senate voted on the measure the next day. Key details are always missed when any legislation is rushed. What repercussions are being overlooked here, and how much will those consequences cost taxpayers when it’s discovered? […]
Policy and politics are always intertwined at the state Capitol. Unfortunately for Illinois, the governor and Democratic leaders are pushing the political in their rush to hastily approve this bill.
A nearly identical bill passed both the House and Senate in 2017 only to be vetoed by the governor. We’re going to see a lot more of those vetoed bills come up for debate this session.
We’ve also had the benefit of watching Chicago’s minimum wage increases take effect and their impact on lower income neighborhoods.
…Adding… A commenter makes a good point…
Also it was punted on in 2014 because the Speaker wanted an advisory referendum, so this is 5 years late.
…Adding… Another good point in comments…
Just because the legislative calendar resets doesn’t mean everyone’s knowledge and recent history are wiped out.
So, it’s not like this isn’t some foreign concept.
* But, yeah, this was most definitely put on a fast track, partly because it was doable early on (because it had passed before) and partly to get it out of the way before the budget address, after which spring sessions tend to go in a million different directions (I’ve talked about other reasons with subscribers).
This early push has been smart politics by the governor. Whether it’s smart policy or not will be known once the raises start to kick in. But he campaigned incessantly on a $15 an hour minimum wage and, as the headline states, elections have consequences, particularly when you have a friendly General Assembly to work with.
It’s not every day that a group of corporate chieftains makes a forceful and concerted argument for a tax increase. And yet, Chicago’s largest employers, members of the Civic Committee of the Commercial Club of Chicago, did just that on Feb. 5, recommending to new Gov. J.B. Pritzker a plan to pay off more than $130 billion in state pension debt largely through a series of significant tax hikes.
Give the folks at the Civic Committee of the Commercial Club of Chicago credit for a comprehensive approach to solving Illinois’ financial and economic crisis.
When the grand pooh-bahs of Chicago business offered their solution to the state’s pension crisis a few days ago, they were roundly attacked—by almost everybody. Liberals and conservatives alike had a grand time ridiculing the Civic Committee of the Commercial Club of Chicago for daring to unveil a plan that did not fully follow their ideology.
That magazine has always had the Civic Committee’s back, including when the group was leading the charge for unconstitutional pension reforms.
Similarly, the new governor should take advantage of his honeymoon period in Springfield to work with Republican leadership to hammer out pension solutions—and those solutions should include tearing a page from Arizona’s playbook. That state, like Illinois, has a constitutional clause protecting pensions, but its leaders also managed to reach an agreement with unions on an amendment that eased funding woes.
Gov. J.B. Pritzker’s inaugural address was most noteworthy for what he left out.
He went on for 2,600-plus words without mentioning the most urgent and potentially destructive crisis facing Illinois. The new governor had nothing to say about $130 billion in unfunded pension obligations to state employees, a yawning black hole of debt that threatens to swallow the state budget and suffocate Illinois’ economy. […]
Any reduction in benefits would require a constitutional amendment and concessions by state employee unions that backed Pritzker in the campaign. That would be difficult, but not impossible. Arizona, which also has a constitutional clause protecting pensions, managed to reach agreement with employee unions on an amendment that eased funding woes.
Pritzker shows no interest in following suit.
Pritzker clearly campaigned in the opposite direction, but Crain’s and others were still demanding that he see things their way.
* So, kudos to the Civic Committee for starting to turn Crain’s around. Here’s this week’s editorial…
The Civic Committee’s plan notably does not call for constitutional changes that would generate savings by requiring workers to pay more, accept reduced benefits, or both. That’s unfortunate. But the organization seems to be betting that a nearer-term infusion of new revenue will buy the state the time it needs to pursue more fundamental reforms.
Yes, a better approach would be to amend the constitution to allow reductions in pension benefits. But such an amendment is a nonstarter under newly elected Gov. J.B. Pritzker and Illinois House Speaker Michael Madigan, who answer to public employee unions unwilling to countenance any benefit cuts.
The Civic Committee folks actually tried to base their plan on what Pritzker has hinted would be acceptable to him, at least in part. There are no nasty worker givebacks to rile labor unions and no talk of amending the Illinois Constitution, as other groups, including the Civic Federation, have recommended. Instead, consistent with recent trends on where the pension debate is headed, the Civic Committee proposed paying down the debt early by putting an extra $2 billion a year into the funds. Taxes would have to be levied to get that money, but over the next three decades, the committee estimates, such a move would save taxpayers a cool $46 billion.
There are indeed some worker givebacks in the plan centering around health insurance, but I get where he’s going.
* The Civic Committee’s basic idea is to pump a bunch more money into the pension funds to lower interests costs in the out-years, which is indeed what Pritzker has been talking about for months. They differ only in how to get there. Pritzker wants a progressive income tax, the Civic Committee argues for a flat tax.
Split the difference: How about a temporary flat income tax hike that’s guaranteed by law to sunset if and only if a progressive income tax is fully implemented? We’d find out in a hurry if the Civic Committee’s plan was merely floated to stave off a graduated tax scheme with that one.
Still, the proposal could be improved. It doesn’t go far enough in taxing services, for example, suggesting only that the sales tax be extended to enough services to raise $500 million. But Illinois could bring in $1.2 billion by taxing all the services taxed by Iowa, researchers at the Illinois Commission on Government Forecasting & Accountability estimate. The plan also proposes eliminating estate taxes and portions of the franchise taxes, which raise a combined $495 million. The group argues these taxes make Illinois an outlier among the states, but they smack of special pleading.
Whatever the case, if the Civic Committee’s greatest contribution to the debate is the abandonment by the chattering class of the fruitless Arizona-style plan (click here for why it’s fruitless) and the need for new revenues, then my hat is off to them.
As Pritzker prepares to deliver his first spending plan to lawmakers Feb. 20, his administration said it is facing a $3.2 billion hole for the budget year that begins July 1. That deficit is more than $400 million deeper than the Rauner administration estimated before leaving office. […]
Throughout his campaign, Pritzker repeated his plan to shift from a flat state income tax to a federal-style graduated system in which higher earners would pay higher rates. But that requires an amendment to the Illinois Constitution, which would take almost two years to get on the ballot for voter approval.
His other ideas for generating new revenue — legalizing and taxing recreational marijuana and sports betting — also would take time to implement and wouldn’t raise the substantial sums that an income tax change could. […]
A separate report released Friday from Pritkzer’s transition team raised the prospect of expanding the state sales tax to some services — a concept long discussed and disregarded. It even raised the prospect of a statewide tax on plastic bags such as the one imposed in Chicago.
Illinois should take measures to broaden their tax base by exploring new sources of revenue. This committee believes several areas could be particularly productive. The state could levy a sales or excise tax on products and services that have traditionally been exempted in Illinois but not exempt from taxation in neighboring states. These categories include new products (e.g., e-cigarettes, cannabis), products that carry a cost to society (e.g., plastic bags), and various services that have been traditionally exempt.
The legalization of untaxed industries — including sports betting, internet gaming, and cannabis usage — would generate additional annual revenues. New sources of revenue should be considered through both a fiscal and a fairness lens, and the state should prioritize progressive taxes that help the middle class and those striving to get there.
All of these revenue sources combined couldn’t plug the state’s $3 billion deficit. Service taxes would likely provide the most. The e-cigarettes tax is an interesting thought.
[Deputy Governor Dan Hynes] says details haven’t been ironed out about how a vaping tax might work. Taxation on vapor products varies across the country, with some states taxing a percentage of the wholesale value while others tax per unit or milliliter of e-liquid. Last year, Chicago passed an ordinance that hiked the city’s e-cigarette tax to $1.50 from 80 cents per container, and to $1.20 from 55 cents per milliliter of liquid nicotine.
The idea of a state tax on e-cigarettes emerged from the budget transition committee. “Every mom and dad who has a teenage adolescent child will stand up and applaud,” Hynes said.
The rapid growth of e-cigarette use, or “vaping,” among teens is generating concern among the health-care community. Taxing may help curb that use. Vaping is considered less harmful than smoking cigarettes, but its health risks are still not known.
Hynes reiterated that the e-cigarette tax combined with sports betting and legalized marijuana are ideas that won’t solve the state’s budget problems overnight. “It’s a multi-year, multi-budget solution. And so while we take those multiyear steps we have to be disciplined in spending. We have to keep control of spending and make inroads into reducing the deficit–and then get everyone united on the idea of the graduated income tax.”
Was Gov. J.B. PRITZKER trying to lower expectations for his first budget proposal or start setting the stage for a graduated income tax? Or both?
* Meanwhile…
.@JBPritzker about the FY 19 budget - "“I applaud the bipartisan working group and the General Assembly for passing a state budget." I voted against the unbalanced budget. The Pritzker Jobs Tax (aka progressive tax) would kills jobs and hurt families. We need to cut spending! https://t.co/myspuwrdx9
“I applaud the bipartisan working group and the General Assembly for passing a state budget–something Bruce Rauner has never done,” said JB Pritzker. “Instead of doing his job, this failed governor forced our state into a historic 736 days without a budget, decimating higher education and human services and doing damage that will take years to rebuild. Three and a half years into his term, I urge Bruce Rauner to resist his heartless instincts to play politics with people’s lives and sign a full budget for the first time. Hardworking Illinois taxpayers deserve more than going years without a spending plan, and when I’m governor, I will always work in good faith with lawmakers to get the job done.”
Two “dark money” groups are stepping up to separately promote and attack the new governor’s agenda.
“Think Big Illinois,” a brand new 501(c)(4) organization which doesn’t have to disclose its donors, will be supporting Gov. JB Pritzker, whose 2018 campaign slogans included “Think big.” The organization will be headed by Quentin Fulks, who served as Pritzker’s deputy campaign manager.
“A $15 minimum wage is the first in a series of progressive policies Think Big Illinois will advocate for in the coming months,” a press release says.
The group appears to be the likely conduit for Pritzker and others to fund a public push for the progressive income tax if it makes it onto the 2020 ballot. Both legislative chambers first have to approve the proposal with three-fifths majorities, and then voters get a crack at it. Neither step is guaranteed.
Defeating that progressive income tax proposal at the ballot box is now the main goal of another dark money not-for-profit group which has been around for years. The Coalition for Jobs, Growth and Prosperity launched a new website last week called “Ideas for Illinois.” The website is fairly innocuous so far, but the people who run it say their ultimate goal is to become the prime conduit for opposition to the governor’s progressive income tax if and/or when it reaches the ballot.
The coalition was founded by Chicago businessman Ron Gidwitz and former Illinois Manufacturers’ Association honcho Greg Baise in 2004, and has since raised $30 million for various projects. Gidwitz is now an ambassador, so he’s been replaced by his brother Jim. Day-to-day operations will be handled by Jason Heffley, who ran Republican Erika Harold’s attorney general race last year. Mike Zolnierowicz, who was Gov. Bruce Rauner’s first chief of staff and left during the first round of staff purges to work with Baise, will oversee the operation.
It’s expected that if Pritzker can get a “fair tax” on the ballot next year he’ll put his money where his mouth is to pass it. And as we saw last year, the man can spend money faster than anyone outside the Pentagon.
Baise will try to tap into the resulting reaction of fear and loathing by upper income types to try and counter Pritzker’s spending. It’s a pretty good bet that the money will be there. The top task of wealthy Illinoisans for the past decade, including Bruce Rauner’s election, was stopping a graduated income tax from being imposed here.
Gov. Pritzker ran on a promise of taxing the wealthy, so he likely interprets his 16-point win over Rauner as a mandate to get that done.
Baise’s group, however, ran some election day polling which asked voters: “Do you support a progressive income tax – that is, a tax system that imposes a lower tax rate on low-income earners, while those with higher incomes pay a higher tax rate?” According to the We Ask America poll, 53 percent of Illinois voters supported the tax.
Now, you may or may not agree with the poll’s wording. A slight change here and there and maybe the idea would’ve received more support (or less). The Pritzker campaign tested dozens of ideas before settling on the billionaire candidate saying he only wanted to raise taxes on people like him.
A state constitutional amendment requires the support of three-fifths of those voting on the question or a majority of those voting in the election, so 53 percent likely wouldn’t be enough. And Colorado voters rejected a proposed constitutional amendment just last year to increase taxes on people with incomes over $150,000 by a 53.5 to 46.4 margin.
The opponents’ attack will include the easy layup of exploiting Illinoisans’ distrust of their state government, particularly its inability to balance its budget over the years despite tax hikes. A hefty dose of messaging against the unpopular House Speaker Michael Madigan will undoubtedly be part of their play.
Baise and his associates do not want to get involved in Republican Party-type issues and just focus on beating back the progressive tax.
If President Trump is on the ticket next year, not a whole lot of money will be funneled into Republican state legislative races here because it would be so fruitless. And there are no statewide races except for US Senate. But a progressive income tax ballot question could very well open up a whole lot of wealthy wallets, so, if nothing else, they have a decent business plan.
