Tobacco 21 easily passes House
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* It now moves to the Senate where it’s expected to pass…
The bill is here…
Raises the age for whom tobacco products, electronic cigarettes, and alternative nicotine products may be sold to and possessed by from at least 18 years of age to at least 21 years of age.
* The legislation received only 61 votes last November…
The failure to override the veto was not unexpected. The bill passed the House in May with only 61 votes, and supporters knew it would be difficult to find an additional 10 votes for an override.
Supporters of the legislation said they will try again next year.
“We are going to come back at this issue until we get it done,” said Rep. Camille Lilly, D-Chicago. “We do not, meaning the state of Illinois, think that this is something we should ever stop working towards.”
That 2018 roll call is here.
* Obviously, some folks changed their minds, including this prominent Republican…
* Context…
Currently, seven states and more than 34 municipalities in Illinois have already passed Tobacco 21 laws, according to the American Lung Association.
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Question of the day
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* Tax Foundation…
Within a graduated rate structure, inflation can impose a hidden tax, increasing the taxpayer’s liability as a greater share of their income is taxed even if that income has not increased in real terms, since bracket kick-in thresholds are fixed. To avoid this “bracket creep,” most states with graduated-rate structures index bracket widths and other features of the income tax to inflation. Pritzker’s proposal gives no indication of this, meaning that over time, taxpayers will pay an increasing amount of taxes as a percentage of income—even if their income has not increased in real terms.
* The Question: Should the governor’s proposed graduated income tax brackets be indexed to inflation? Take the poll and then explain your answer in comments, please…
survey solutions
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Teacher shortage worsens
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* Illinois Association of Regional Superintendents of Schools survey results of 527 out of 858 district superintendents…
Superintendents in 85% of the districts surveyed believed that they have either a major or a minor problem with teacher shortages, which is up from 78% from the 2017 survey. Substitute teacher shortages continue to be a particular concern for superintendents. About 5 in 8 (63%) indicated that they have a “serious problem” with substitute teacher shortages, while only 3% indicated that they have “no problems” with substitute teacher shortages. Among the 527 responding districts (61%), superintendents reported that 20% of all positions (1,032) listed for fall 2018 remained unfilled or filled by an unqualified professional. This resulted in 225 classes being cancelled.
* More from the report…
Teacher Shortage Intensity by County
Substitute Teacher Shortage Intensity by County
* Peter Hancock at Capitol News Illinois…
The report said shortages were reported in almost every subject area, with foreign languages, various special education fields and computer science leading the list of classroom subjects. There were also significant shortages of school psychologists and library and media specialists.
Shortages were also reported in every region of the state, although they were more severe in southern and central Illinois than in the suburban districts around Chicago.
In southern Illinois, 94 districts reported seeing “significantly fewer qualified applicants” than they did five years ago. That compares with 90 percent of the districts in central Illinois; 78 percent in northwest Illinois; and only 42 percent in the Cook County and surrounding suburbs.
As a result of those shortages, the report said 99 districts reported canceling a total of 225 course offerings due to a lack of qualified teachers, while 86 districts reported converting more than 200 classes to online learning because they lacked a qualified teacher for the subject.
* Back to the report…
Three key policy recommendations are presented. First, to alleviate the substitute teacher shortage, the process of substitute teacher licensing should be “less bureaucratic” and streamlined, especially for retired educators serving in a district of prior employment. Second, Illinois needs to expand programs for developing new teachers including support for Grow Your Own Teacher and Administrator initiatives throughout all of Illinois. Finally, by using existing data and collecting gap data we will have the ability for more confident predictions on shortages long term and identify, by district, the challenges and viable solutions for educator shortages.
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* Tom Schuba with the Sun-Times…
Empty storefronts and shuttered restaurants line the main drag along Locust Street in Delavan, a sleepy enclave just south of Peoria.
But on the outskirts of town, business is booming — or, rather, blooming. Inside a nondescript warehouse behind a razor wire fence sit thousands of marijuana plants being grown for medical use. […]
Revolution’s 75,000-square foot grow operation cultivates up to 10,000 marijuana plants at any given time and employs 56 people, 10 of whom are natives of either Delavan or the surrounding area. Since the facility opened, the city has created a tax increment financing district to use the company’s property tax dollars to fund infrastructure and redevelopment projects, including the construction of a new public high school.
Scroll down…
To prepare for an expected increase in demand, Revolution is shelling out more than $100 million to build an adjacent facility on a plot of land that’s seven times larger than the current cultivation’s center 10-acre site. The new building will be used to grow recreational weed, while the existing structure will continue to cultivate medical marijuana, de Souza said.
That’s great news for Delavan, but only if this gamble pays off. Some of these growers are assuming that they’ll get licenses when cannabis is legalized. And maybe they will. The CEO of that company did serve on Pritzker’s transition team, after all, and I’m told his grow center is amazing.
* But sudden “massive growth” and a trend toward vertical markets are both worth keeping an eye on…
With Illinois’ marijuana industry gearing up for massive growth as the state considers legalizing the drug for recreational use, a company based in Phoenix is paying $850 million for Chicago-based cannabis operator Verano Holdings.
The deal will give Harvest Health & Recreation the right to operate Verano’s cultivation facility and dispensaries in Illinois, as well as its operations in other states. Verano’s Chicago headquarters is expected to remain an operations hub after the acquisition.
Harvest Health, which owns dispensaries or cultivation facilities in five states and trades on the Canadian Securities Exchange, has been eyeing an entrance into Illinois for a long time, said CEO Steve White. Illinois is an attractive market because it is a heavily populated state and lawmakers are drafting a bill to legalize adult-use marijuana, he said.
“We wanted to make sure we were participating in a meaningful way before those conversations were at a crescendo,” White said. “As that conversation starts moving forward, the price of assets in Illinois goes up.” […]
Its cultivation facility in the southern Illinois city of Albion is undergoing expansion to double grow capacity, said Verano co-founder Sam Dorf. It also has dispensaries in Chicago’s Norwood Park East neighborhood and west suburban St. Charles, and has an ownership stake in a dispensary in Effingham.
I’m all for people making money on this. Illinois definitely needs a shot in the arm. But always be wary of late money jumping into a game. Big money means lots of lobbyists, and that means legislators and the governor will likely have to make extra sure those lobsters don’t try to write their own legislation to benefit their clients and not Illinois.
Also, I’d personally prefer a tiered system like beer has. Producers, distributors and retailers are all kept separate to prevent one or two producers from dominating.
* There are other considerations to stress as well, including areas hard-hit by the drug war…
In crafting legislation, lawmakers are discussing fairness in distributing marijuana tax revenue to ensure communities in need of public service improvements aren’t overlooked. “We are trying to provide some recommendations that we think would help infuse those dollars in a meaningful way back into those communities,” said Chicago Democratic Rep. Sonya Harper, a leader in the legislature’s cannabis equity work group, The Tribune reported.
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More Pritzker graduated tax react
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* ILGOP…
“It’s time to end Governor Pritzker’s tax hypocrisy. Pritzker says he ‘chooses fairness’ when it comes to raising taxes, yet Pritzker is the beneficiary of many overseas holdings that allow him to dodge untold millions in state and federal taxes. If Pritzker truly believes that rich people such as himself have an obligation to pay more in taxes to the State of Illinois, Pritzker should take the first step and domesticate his overseas holdings in Illinois so they would be subject to the higher tax rates he has proposed for the people of Illinois.
“As one of Illinois’ richest residents and leading tax hike proponents, it’s time for Governor Pritzker to pay his fair share, before expecting Illinois taxpayers to pay more. Tax fairness should start with our governor.” - Illinois Republican Party Chairman Tim Schneider
Last week, Governor J.B. Pritzker finally released the specific tax rates of his plan to raise taxes on Illinois families and businesses. When you factor in the Personal Property Replacement Tax, Pritzker’s tax hike plan will hit corporations and trusts domiciled in the state of Illinois with a 10.45% and 9.45% tax rate, respectively, making it “one of the highest in the nation.”
During the course of last year’s gubernatorial campaign, Illinois voters learned that Pritzker is the beneficiary of many overseas trusts based in the Bahamas and Cayman Islands. Those trusts are not subject to taxes. Pritzker attempted to skirt the topic by saying there was nothing he could do about the trusts set up by his grandfather in the 1960s, and that all of his money from those trusts go to his charitable foundation.
But a Chicago Tribune investigated found that Pritzker himself utilizes overseas tax havens for his personal business ventures. Several overseas shell corporations were set up by Pritzker and his associates between 2008 and 2011. According to the Tribune, those corporations “are either wholly owned by J.B. Pritzker, his brother and business partner Anthony Pritzker, or list other close associates as controlling executives.”
All told, the Tribune found “35 offshore and domestic trusts and shell companies tied to Pritzker on top of the dozen offshore investment funds.”
Financial experts told the Tribune that the investment tactics used by Pritzker helped him maintain the secrecy of his overseas holdings while minimizing the tax liability.
When the investigation broke, Pritzker tax hike supporter Dan Biss said “J.B. Pritzker set up companies offshore, probably to avoid taxes and spent the entire past year lying about it.”
In 2008, The New York Times said the Pritzker family were “pioneers in using tax loopholes to shelter their holdings from the internal revenue service.” And J.B. Pritzker’s sister, Penny Pritzker, became the subject of media scrutiny after some of her overseas holdings were revealed in the Paradise Papers.
If Pritzker truly believes that rich people such as himself have an obligation to pay more in taxes to the State of Illinois, Pritzker should take the first step and domesticate his overseas holdings in Illinois so they would be subject to the higher tax rates he has proposed for the people of Illinois.
* Think Big Illinois…
After Governor Pritzker’s proposed fair tax rates showed that 97% of Illinoisans would not see a state income tax increase under a fair tax system, opponents have grown increasingly desperate in their false attacks. While these opponents will do or say anything to avoid forcing the wealthy to finally pay their fair share, it’s important to note the truth is not on their side.
A favorite talking point of these opponents is that the wealthiest Illinoisans will leave the state if they’re forced to pay their share, but the facts tell a different story. Research shows that there is no correlation between a state’s tax rates and the likelihood a high-income family leaves the state. Look no further than California, which increased its top marginal income tax rate to 13.3% in 2012, but continues to have a net migration in of millionaires each year.
Additionally, Illinoisans have fled the state for years as the Rauner administration played politics with the budget, leaving our education system decimated and critical services severely underfunded. A Fair Tax will bring in much-needed revenue to help address these issues, yet it’s Rauner’s brand of mismanagement and irresponsible governance that opponents are eager to return to.
“The legislature will have the same power if the Fair Tax is passed as they do now, and wealthy families will not leave the state at increased rates. These are just desperate false claims from Governor Rauner’s former allies who will do or say anything to keep a system in place that works for the wealthy while hurting working families,” said Quentin Fulks, Executive Director of Think Big Illinois. “The only difference is Illinois would finally have a tax structure where the burden is lifted off the middle class and the wealthiest pay their fair share. That’s why Think Big Illinois is committed to continue fighting for a Fair Tax in our state.”
Discuss.
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Unclear on the concept
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* Gov. Pritzker was asked by reporters today why he doesn’t support expanding the sales tax to cover services. He talked about his general opposition to flat taxes and how, although it may be necessary to increase them in some instances, he prefers progressive taxation.
He also said that some of the folks arguing for an increase in flat taxes are the same people who are advocating for the “3 percent.” You’ll recall that Pritkzer’s proposed graduated income tax would only raise taxes on the top 3 percent of earners, so he’s got a new catch-phrase.
“The bulk of a flat tax increase falls on the middle class and the working class and people that are striving to get to the middle class,” Pritzker said.
* A reporter then chimed in…
I was asking about a tax on services. Is that a flat tax?
“Those are flat taxes. What do you think?” an incredulous Pritzker responded. “Everybody gets taxed at the same rate.”
Maybe the reporter just got confused for a moment. Stuff happens and he’s a bright guy, so whatever. And always remember the old saying about how there are no bad questions, just bad answers.
But what you’re seeing here is how difficult it’s going to be to explain this stuff when even experienced political reporters seem to have trouble following the thread.
…Adding… Come to think of it, a graduated sales tax might not be a bad idea. Slap an extra tax on First Class airfare, or $600+ per night hotel rooms or $70,000 cars or whatever.
…Adding… The raw audio is here.
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Pritzker Comes Up Short
Tuesday, Mar 12, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
Gov. J.B. Pritzker’s “fair tax” plan hinges on a promise to raise $3.4 billion in new revenue. But a simple, static revenue estimate shows the governor’s proposed rate structure falls nearly $1 billion short of that number – even without taking into account the economic effects of a tax hike. And the governor is refusing to show his math.
Pritzker’s questionable revenue estimate raises a point echoed by Center for Tax and Budget Accountability Executive Director Ralph Martire in the Chicago Tribune – $3.4 billion isn’t enough to fund what Pritzker has proposed in new spending:
“It wouldn’t be enough to do all that,” said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a union-backed bipartisan research group. Martire said the state needs to look for other sources of new revenue, including a possible extension of its sales tax.
In other words, more tax hikes are just around the corner.
It’s important to remember that Illinois policymakers are often motivated to reach certain revenue estimates that support their policy preferences. Pritzker should release the full methodology behind his revenue estimate before asking Illinoisans to trust his numbers on a multibillion-dollar tax hike.
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* Student out-migration has been a problem for decades, but, like with just about everything else, Bruce Rauner inherited a serious problem and made it worse…
The Illinois Board of Higher Education released its annual student out-migration report Tuesday. In 2017, 48.4 percent of students who graduated from a public school in Illinois that enrolled in a four-year college chose one outside of the state. That’s up nearly two percentage points from the fall of 2016.
The breakdown of the numbers shows an increase of more than 2,000 students attending two-year schools, meaning that there was a proportional loss of students to four-year universities even though the 53,000 student enrollment at four-year institutions was similar what it was in 2016.
Of all the graduating students, one in five chose to attend universities in other states.
Eric Lichtenberger, deputy director for information management and research with IBHE, said the two years of the state’s budget impasse, which resulted in limited school and grant funding because lawmakers couldn’t come to terms with freshman Gov. Bruce Rauner on a budget deal showed increases in students going out of state.
“Since the budget impasse, we’ve been experiencing annual increases of at least 3.5 percent, which is somewhat surprising,” he said.
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IDOT takes signage to the next level
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* You may have noticed that IDOT has been putting clever messages on some of its electronic billboards lately…
* But then all of a sudden this billboard appeared all over the place. I saw it twice on Interstate 57 during the weekend…
* I reached out to IDOT and received this reply from Jessie Decker…
Hi, Rich-
We’ve seen a recent increase in social media posts including pictures of our signs taken from the driver’s perspective. We love that people are interested in helping spread the word about safety on our roads. However, taking pictures while driving is obviously dangerous – and it’s also illegal to use a handheld device while driving.
We are finding new ways, sometimes tongue-in-cheek, to bring attention to serious issues. Anything we can do to get people to stop and consider NOT using their phones while behind the wheel is a message we support.
Thanks,
Jessie
* Not everyone is convinced, however…
Thoughts?
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* Wirepoints…
Oh, the places they’ll go: The impact of Pritzker’s progressive tax on wealthy Illinoisans
You have to wonder if Gov. J.B. Pritzker ever saw the top marginal tax rates of other states before he released his new progressive tax plan. If he gets his way, he’ll give wealthy Illinoisans another big reason to leave the state. […]
His new tax hike will be just another huge incentive for the wealthy to take up residence elsewhere. They’ll get a far better deal on their income taxes if they do. […]
Pritzker says Illinois is an outlier because it remains a flat tax state even though 30-plus other states have a progressive tax structure. But with his tax plan, Illinois will become an outlier among progressive tax states for how much it taxes residents with $250,000 incomes and above.
North Dakota, Arizona, New Mexico, Ohio, Alabama, Mississippi, Oklahoma, Kansas, Maryland, Virginia, Missouri, Rhode Island, Georgia, Louisiana, West Virginia, Iowa (by 2023), Delaware, Nebraska, Arkansas, Montana, Connecticut, South Carolina, Maine, Idaho and Wisconsin all have progressive structures with lower tax rates on $250,000-plus incomes compared to Illinois under the Pritzker plan.
Even New Jersey and New York’s rates, which are some of the highest in the nation, would be less painful for residents earning $250,000 to $500,000 ($250,000 to $1 million in New York’s case).
* OK, so I used the Tribune’s new online calculator for Pritzker’s proposed graduated tax (as I mentioned earlier today, the Trib tells you what you will owe, while the governor’s calculator only tells you how much less or more you’d pay) and plugged in an income of $251,000 for a single person with no exemptions and got $12,387 in income taxes owed, not including the increased property tax credit.
Next, I used the SmartAsset.com calculator and plugged in that same $251,000 income for the states listed above (excluding Iowa).
States with significantly lower effective graduated rates…
North Dakota: $5,047
States with somewhat lower effective graduated rates…
Alabama: $9,443
Louisiana: $9,920
Arizona: $9,988
New Mexico: $11,510
Rhode Island: $11,896
Mississippi: $11,985
Oklahoma: $11,994
* The rest…
Illinois: $12,387
Kansas: $13,550
Missouri: $13,582
New Jersey: $13,799
Virginia: $13,949
Connecticut: $14,369
Georgia: $14,432
West Virginia: $15,060
Delaware: $15,335
Ohio: $9,842 (plus $5,499 in local income tax for Cincinnati)
Wisconsin: $15,385
Nebraska: $15,825
Maine: $15,885
Montana: $15,952
Arkansas: $16,253
South Carolina: $16,330
Idaho: $16,402
Maryland: $12,705 (plus $6,374 local income tax for Annapolis)
California: $20,187
New York: $15,536 (plus $9,294 in local income tax for NYC)
As far as flat tax states go, if you live in North Carolina, your tax bill would be $13,321 (higher than Illinois). In Frankfort, Kentucky, your effective income tax would be $12,424 (higher than Illinois) plus another $7,405 in local income taxes. If you live in Detroit, Michigan, you’d pay $10,495 and then another $6,010 in local income taxes. In Utah, your income tax bill would be $12,425 (higher than Illinois). In Massachusetts, it’s $12,577 (higher than Illinois). Indianapolis residents pay $8,075 state income tax and $4,050 local income tax. Philadelphia, PA residents pay $7,706 to the state and $9,849 to Philly. Coloradans pay $11,621 (about $800 less than they’ll pay here if this passes muster).
* Now, you could plug in higher incomes and you might get some different results, but I didn’t set the parameters of this “debate,” they did. Also, I’m done crunching numbers for a bit.
Point being, nobody who bases any sort of intelligent decision on whether to move is gonna look at marginal tax rates. And, frankly, most people don’t move based on this topic in the first place. Click here for just one example.
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The Credit Union Difference
Tuesday, Mar 12, 2019 - Posted by Advertising Department
[The following is a paid advertisement.]
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Pritzker unveils tax calculator
Tuesday, Mar 12, 2019 - Posted by Rich Miller
* Gov. Pritzker’s office has a new online calculator to help you figure out what your taxes would be under his progressive tax proposal. Click here to see it.
The Tribune also has a new online calculator, but its calculations don’t include the new $100 per child tax credit or the increased property tax credit, so it’s less useful. However, the Tribune’s calculator gives you your total bill (although flawed), while the governor’s calculator only tells you how much less or more you’ll pay.
…Adding… Press release…
After unveiling his fair tax proposal that gives relief to 97 percent of taxpayers, Gov. Pritzker launched a Fair Tax Calculator today to let Illinoisans see how the fair tax will affect their families.
The Fair Tax Calculator is available at www.illinois.gov/FairTaxCalculator.
“As I said throughout the campaign, Illinois’ flat tax system is regressive and unfair to the middle class and those striving to get there,” said Gov. JB Pritzker. “People like me should pay more and people like you should pay less. Simple. That’s what the fair tax will do.
“As we negotiate this proposal with the General Assembly and ultimately ask the people of Illinois to decide, my administration is committed to being fully transparent and giving residents the tools they need to understand this proposal. To that end, I’m proud to introduce the Fair Tax Calculator. This calculator will allow every taxpayer in Illinois to calculate exactly what the fair tax will mean for them and their family.”
In addition to shifting from a regressive flat tax to a fair tax, Governor Pritzker’s proposal would increase the property tax credit by 20 percent and institute a new $100 per child tax credit.
Users can input their income, filing status, exemptions, dependents, property tax paid and K-12 expenses to calculate how the fair tax compares to the current flat income tax.
Using that information, the calculator determines how much the total tax bill changes. For 97 percent of Illinois taxpayers, the amount will go down. In some cases the reduction will be nominal; in others, it will result in several hundred dollars.
“Illinois’ unfair tax structure forces the lowest earners to shoulder a greater tax burden than higher earners, but Gov. Pritzker’s plan will make the wealthy pay their fair share,” said William McNary, c0-director of Citizen Action/Illinois. “When the top 1 percent who make more than $537,800 a year pay just 7.4 percent of their income in taxes while the lowest 20 percent of earners making less than $21,800 a year pay 14.4 percent, the time for change is now.”
“Working families across the state will benefit from Gov. Pritzker’s fair tax plan that gives 97 percent of taxpayers relief and returns fiscal stability to Illinois,” said Bob Reiter, president of the Chicago Federation of Labor. “We must put the days of governing by crisis behind us and institute a fair income tax that ensures state government can adequately serve the people.”
“Gov. Pritzker is making good on his promise to make our state a better place to live for working families,” said Carole Pollitz, a business agent with IBEW Local 134. “Raising wages and reducing taxes on the middle class gives the average Illinoisan a break and benefits our entire state in the process.”
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Question of the day
Monday, Mar 11, 2019 - Posted by Rich Miller
* Trib…
The Illinois gas tax was last increased in 1990, from 16 cents a gallon to 19 cents.
In that year, East and West Germany reunited, Nelson Mandela left prison and Andre Dawson played for the Cubs.
It was, in short, a long time ago, and the tax has not kept up with inflation. Some lawmakers pushing for a capital bill want a hike in the current gas tax, which helps pay for construction and repair of state’s roads and bridges.
* The Question: Do you support a significant increase in the Motor Fuel Tax to pay for infrastructure projects? Take the poll and then explain your answer in comments (including your definition of “significant”), please…
survey tools
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You reap what you sow
Monday, Mar 11, 2019 - Posted by Rich Miller
* Sun-Times…
During a Thursday night debate that turned bitter fast, both candidates were asked what they admired most about their opponent. […]
Preckwinkle said she admired how open Lightfoot is about her sexuality. If she wins the April 2 runoff, Lightfoot would become Chicago’s first openly gay mayor.
Full Preckwinkle quote…
“That she’s open and honest about her LGBTQ orientation. You know, I think it’s really important in this country that we be respectful of differences and that we understand that all of us matter and that there is dignity in each and every one of us. And there has been so much discrimination and prejudice and homophobia in our country, it’s very important that particularly prominent people declare their sexual orientation and do it with pride.”
* Lightfoot more than just implied that the comment was a “dog whistle”…
Lightfoot stopped short of characterizing Preckwinkle’s intentions. “I’m saying that if there was (a dog whistle), it would be disappointing,” she said. “But the words are the words. Whether — I can’t go into her mind and understand her intent.”
Asking the candidates what they admire about their opponent has become a standard question in most debates, Lightfoot noted.
“She’s got a lot of sophisticated people around her. It’s hard to imagine … the question was coming, you knew it was coming. We both did,” Lightfoot said. “And she chose to say what she said.”
* Usually, in situations like this, I tend to look toward the people who do this for a living instead of the candidates…
“Trying to peer into Preckwinkle’s soul to determine the intent of her remarks is impossible,” Brian Johnson, CEO of Equality Illinois, which has endorsed Lightfoot, told POLITICO. He acknowledged Preckwinkle “has been an ally and champion” of the LGBTQ community. “But instead of running a campaign with an inspiring vision of her leadership for our city, Preckwinkle has built a campaign whose sole purpose seems to be to mislead voters about Lightfoot and attack her at every step of the way.”
Even a seemingly positive statement about Lightfoot’s identity is met with “skepticism and mistrust,” he added.
Co-sign.
Preckwinkle may or may not have intended to blow a dog whistle. The problem here is that she’s said or done so many unnecessarily ham-handed things that people are naturally going to assume the worst intentions.
If you deliberately construct an image of being an arrogant bully, don’t act all shocked when people think you are one. A seemingly liberal compliment can easily be interpreted as a grotesquely illiberal campaign tactic.
Preckwinkle walked right into that one.
* Related…
* Laura Washington: How Willie Wilson changed his mind on LGBTQ people and endorsed Lori Lightfoot
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* Former state Sen. Jeff Schoenberg writes in Crain’s that a bipartisan legislative panel he co-chaired a dozen years ago found that a partial, 75-year lease of the Tollway could yield between $15 billion and $23.8 billion. Schoenberg, who left the Illinois Senate to advise the J.B. and M.K. Pritzker Family Foundation (not mentioned in the piece), says the issue ought to be reopened. But he has some caveats…
The Pritzker administration’s due diligence must ensure that any plan to bring private capital into public infrastructure not only retains public ownership of those assets, but also insists upon a high standard of accountability and transparency for the tollway’s spending practices and policies. […]
• The bitter aftertaste of Chicago’s parking meter privatization means that after the tollway’s bonds are paid off, any Illinois deal must have an iron-clad provision binding proceeds exclusively to the unfunded pension liabilities. And no slicing off a chunk of the money to increase base spending, either (see 2003 Blagojevich pension obligation bonds).
• In the Chicago Skyway transaction, eliminating union jobs didn’t favorably impact the deal’s financials for prospective investors; the Daley administration’s decision to do so was driven by factors that wouldn’t show up on a spreadsheet. Consequently, it ‘s essential to maintain the collective bargaining agreements for tollway employees.
• A major takeaway from the original Indiana Toll Road agreement crafted by then-Gov. Mitch Daniels was that a portion of the revenues realized by the Hoosier State was set aside for a 10-year stabilization fund to absorb all or part of motorists’ “sticker shock” resulting from toll increases.
• Unlike the Skyway and the Indiana Toll Road, the Illinois Tollway system is much bigger and in far better condition—in concrete and on the balance sheet. Illinois taxpayers therefore should expect a significantly larger upfront payment from the winning bidders.
Your own caveats?
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We need a capital bill
Monday, Mar 11, 2019 - Posted by Rich Miller
* John O’Connor on a state capital program for school construction…
Former Republican Gov. Jim Edgar and a school-reform-minded Legislature concocted it in 1997. It promises a cost match of 35 percent to 75 percent, depending on local resources, for school districts adding classrooms for a growing enrollment or replacing outmoded structures. The state borrows the money by selling general obligation bonds.
Conceived as a $3 billion effort, it got a boost in 2001 from former GOP Gov. George Ryan’s $12 billion Illinois FIRST construction program. All told, from 1998 through 2003, there was $6.7 billion in school construction, with the state pouring in $3.5 billion, according to the AP analysis.
But school administrators dreaming of a huge payday from a Pritzker plan would do well to study the numbers from the last time the program saw substantial funding. Democratic Gov. Pat Quinn’s Illinois Jobs Now construction program in 2010 was, at $31 billion, 2 ½ times larger than Illinois FIRST. It yielded just $1.3 billion in state funds toward a $2.7 billion investment overall for schools.
* The backlog is huge…
Illinois State Board of Education records indicate that since 2004, 270 Illinois school districts have applied for 285 state school construction grants without funding. Based on the average cost of the 606 projects funded since the program debuted in 1998 and adjusted for inflation, The Associated Press estimates the unfunded projects are worth nearly $6 billion, of which the state, based on history, would theoretically pay about $3.1 billion.
* And who even knows what the current need is?…
The need among public schools is likely much greater than the wish-list suggests. There have been only 40 grant applications since 2011, likely reflecting school districts’ attitude that there’s no sense applying if there’s no money forthcoming.
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It’s just a bill
Monday, Mar 11, 2019 - Posted by Rich Miller
* In this case, it’s a dead bill…
It will be at least another year before self-driving cars hit Illinois roads.
Bill-sponsor Mike Zalewski says it is time to pump the breaks on his legislation. The bill is currently in committee, and if it were to pass there, it would be put up for a vote in the House. However, there are still a lot of issues and it is enough to make Zalewski admit that the bill is not ready for a vote this session.
Skeptics include Abate Illinois. That is a group dedicated to preserving motorcyclists’ rights. Zalewski is planning on hearing out every concern he can.
The assistive technology is great. Completely automated cars are, however, nowhere near fruition. I’m with ABATE on this.
* When I was in the hospital years ago, I noticed that nurse staffing levels were way down on the weekends. I simply couldn’t get the same medical attention as I did during the week. And I noticed it again when Steve Schnorf was in the hospital before he passed away…
Under the Safe Patient Limits Act, no nurse working in a hospital could be responsible for more than four patients at a time.
That number would be lower for special units like maternity wards, intensive care units and emergency rooms.
Paul Pater, with the Illinois Nurses Association, said high patient-to-nurse ratios are dangerous for everyone.
“Hospitals and administrators take advantage of our empathy and sense of duty to our patients to force unsafe situations on the nurses of Illinois in a misguided attempt to save money,” Pater said.
* WMAY…
Democratic State Senator Andy Manar is joining with Republican Jason Barickman on a bill that would reduce the signature requirement for new political parties and independent candidates. Currently, established political parties need fewer than 10,000 signatures to get on the statewide ballot… while independents need 25,000.
The bipartisan bill would put everyone at the same, lower threshold. Manar and Barickman say their bill should get bipartisan support.
* Illinois Policy Institute…
Airbnb’s growth has created push-back from hotels in the form of new taxes and stringent regulations by local communities, but a new Illinois House bill would halt bans and overregulation of vacation rental services.
House Bill 2919, introduced by Rep. Michael Zalewski, D-Riverside, limits the home-rule authority of local governments. HB 2919 would prohibit municipalities from enacting ordinances that have the “express or practical effect” of banning Airbnb and similar vacation rental services, as happened in Lake Bluff and a well-connected ward in Chicago.
Vacation rental services provide valuable and affordable lodging alternatives for visitors, and income streams for residents. Studies suggest the growth in vacation rentals benefits both property owners and the broader economy.
The services, also known as home sharing, have come under fire across the nation. New York City bans vacation rental of full units for fewer than 30 days.
…Adding… E-mail to the author of that Policy Institute piece…
Hi Joe,
I’m writing on behalf of the Village of Lake Bluff to request a clarification regarding your recent article on HB2919 (re: short term rentals / Airbnb).
In the second paragraph, your article references some prior (2017) IPI reporting on Lake Bluff’s short term rental regulations that is no longer accurate. In early 2018, following a fact-based public process, the Village adopted regulations that allow short-term rentals to operate with reasonable restrictions that protect public safety and ensure payment of the Village’s hotel tax. I have attached our regulations if you are curious to know more.
There are inconsistencies between our regulations and what would be permissible under HB2919. Notably, we would prohibit the use of neighborhood houses as vacation rentals 365 days a year. However, certainly, we do not “ban” short term rentals. As someone reading your article would likely come to that conclusion, we would appreciate an edit or a clarification.
Thanks,
Glen Cole
Asst. to the Village Administrator
Village of Lake Bluff
* Other stuff…
* Gov. Pritzker Signs Legislation at Southern Illinois Hospital: Ferrell Hospital CEO Alisa Coleman says the additional funding is huge so her facility and the 50 others like it receive the appropriate payments under the hospital assessment program. “More than 43% of critical access hospitals are operating in the red today and others on extremely thin margins.”
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Pritzker explains his hiring
Monday, Mar 11, 2019 - Posted by Rich Miller
* Gov. Pritzker as quoted by the Dispatch-Argus…
“I’m being very careful about (hiring) the people that run agencies. But I did not show up as somebody’s political organization guy.
“I came into office with the belief that we can hire great people who know how to run these agencies and have real experience, who is not somebody’s political suggestion. Therefore, we can run government better. The people I picked to lead are the very best in the state; I am very proud.”
Your thoughts?
* Semi-related…
* Gov. Pritzker: Future of SIU system should be decided locally: Ultimately, sources indicate that Pritzker is planning further replacements and an adjusted balance on the board, with three Carbondale-affiliated trustees, three Edwardsville-affiliated trustees, and one trustee from Springfield, where the SIU School of Medicine has its headquarters.
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* Bruce Rushton last week in the Illinois Times…
Newsroom employees at the State Journal-Register are being offered buyouts, with the prospect of layoffs on the horizon.
The buyout offer from GateHouse Media, the paper’s corporate owner, was made Wednesday, with employees told they have until Monday to volunteer to be let go. Under a newsroom collective bargaining agreement, employees who accept a buyout would be paid one week of pay for every year of service, to a maximum of 15 weeks.
The buyout offer, also extended to employees at the Peoria Journal Star and Rockford Register Star, papers also owned by GateHouse, comes just six months after the last GateHouse buyout offer made last August. Reporter John Reynolds accepted the offer and was the only newsroom employee who departed then.
There aren’t many reporters left to cut. City hall reporter Crystal Thomas is leaving the paper on Friday to cover the Missouri legislature for the Kansas City Star. Her departure will leave the SJ-R with five news reporters, including Doug Finke, Dean Olsen, Brendan Moore, Bernard Schoenberg and Steven Spearie. Fifteen writers, editors and photographers have left the paper in the last six years without being replaced.
Yep. Click here to see the staff list. The paper does have three sports writers on staff in addition to those five, however.
* Town by town, local journalism is dying in plain sight - Newspapers in more than 1,400 cities across the US have closed over the past 15 years, often leaving residents without a reliable source of local news: Did GateHouse stop investing because people were less interested in reading the paper? Or did people lose interest because the lack of investment made it a less satisfying read?
* Communities lose when newspapers die or slide into decline: Even more prevalent than closures are what Abernathy calls “ghosts,” newspapers that are a shell of what they were. Tens of thousands of journalists left newsrooms in the decade ending 2017.
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For crying out loud, vaccinate your kids!
Monday, Mar 11, 2019 - Posted by Rich Miller
* Daily Herald…
Your children might be vaccinated against measles, but what about their classmates?
Only 9.8 percent of public and private schools across the suburbs have 100 percent of the student population vaccinated against measles, and some have immunization rates below 80 percent, according to data compiled by the Illinois State Board of Education. […]
A 93 percent to 95 percent measles vaccination rate is required to stop the spread of a contagious disease within a population, a concept health experts refer to as “herd immunity,” according to the World Health Organization. The chance of a measles outbreak rises if protection levels fall below that threshold, said Dr. Andy Bernstein of North Suburban Pediatrics in Buffalo Grove and Evanston.
“It can catch on like wildfire,” he said. “It’s a highly contagious disease, and as soon as immunization rates in a community drop with any significance, it spreads very easily.” […]
For measles, nearly 94 percent of schools in suburban Cook and the collar counties fall within or above the range for achieving herd immunity, state records show. Many institutions below that level have more students legally exempted because of religious objections to getting the shots. [Emphasis added.]
The Daily Herald used research from the Illinois State Board of Education to compile a list of all suburban schools. By my count, 13 schools had vaccination rates of 92-92.9 percent, 16 schools had vaccination rates of 91-91.9 percent and 11 had vaccination rates of between 90 and 90.9 percent.
Now, check out all these schools with even lower vaccination rates.
* Private schools in Cook County…
Jordan Baptist School - 54.5%
Tallgrass Sudbury School - 58.8%
Farm and Nature Discovery Presc - 75.0%
Kingsway Preparatory School - 75.0%
Valeo Academy - 75.2%
Mosaic Montessori Academy - 77.4%
New Life C C Academy - 79.5%
Guardian Angel Orthodox Day Sch - 80.0%
Plato Academy - 81.5%
Christian Hills Church School - 82.6%
St William School - 83.3%
North Shore Country Day School - 85.1%
Logos Christian Academy - 85.2%
Montessori Elem School Southwest - 86.1%
Midwest Montessori School - 88.5%
Northridge Preparatory School - 88.9%
Westchester Christian School - 88.9%
Koraes Elementary School - 89.1%
Landmark Christian Academy - 89.4%
Council Oak Montessori School - 89.6%
Southside Baptist School - 89.7%
* Public schools in Cook…
Rich Central Campus High School - 79.1%
Thornridge High School - 82.8%
Higgins Education Center - 88.0%
Tiny Town Lansing Nursery Sch Inc - 89.8%
* DuPage County…
Delphi Academy of Chicago - 38.5%
Prairie School of DuPage - 61.0%
Chesterton Acad of Holy Family - 63.8%
South School - 78.3%
Carriers of Light - 82.0%
Seton Academy - 82.4%
Kingswood Academy - 82.8%
Marquette Manor Baptist Academy - 83.5%
Concord Lutheran School - 84.7%
Nurturing Wisdom Academy - 86.0%
Clapham School - 87.2%
Naperville Christian Academy - 88.1%
Bethany Lutheran School - 88.2%
DuPage Montessori School - 88.8%
Holy Family Catholic School - 89.7%
Calvary Christian School - 89.9%
* Kane County…
Montessori Academy - 73.8%
Fox Valley Montessori - 76.9%
Resurrection Lutheran School - 82.5%
Bridges Montessori Academy - 86.5%
Geneva Christian School - 87.7%
Covenant Christian School - 88.4%
Mansio Mens Montessori - 88.9%
Immanuel Lutheran School - 89.3%
St Joseph School - 89.4%
* Lake County…
Da Vinci Waldorf School - 73.2%
Torah Academy - 77.8%
Old School Montessori - 83.9%
Lions Math & Science Christian - 84.3%
Our Saviors Ev Lutheran School - 86.2%
Grass Lake Elem School - 86.9%
Country Meadows Elem School - 87.5%
Steppingstone Montessori School - 87.5%
Hellenic American Academy - 89.0%
St Anastasia - 89.4%
* McHenry County…
Lord and Savior Lutheran - 76.7%
Montessori Pathways - 85.2%
Immanuel Lutheran School - 87.3%
Crystal Lake Montessori - 89.4%
* Will County…
Midwest Christian Montessori Acad - 73.9%
Little Explorers Montessor - 87.5%
Joliet Montessori - 88.7%
Noonan Elementary Academy - 89.9%
Those schools are disasters waiting to happen.
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More taxsplaining is apparently needed
Monday, Mar 11, 2019 - Posted by Rich Miller
* Tribune headline…
Gov. Pritzker says his income tax plan would generate $3.4 billion in revenue. Some tax experts question whether it’s enough.
Um, the story quotes precisely one tax expert questioning whether it’s enough. And that’s Ralph Martire at the Center for Tax and Budget Accountability.
The Institute for Illinois’ Fiscal Sustainability at the Civic Federation, which also studies these things, proposed a revenue increase last month of about $3.1 billion in Fiscal Year 2021 and $3.4 billion in FY22, which is about what Pritzker is proposing. The Civic Federation wants to get to the same destination by taxing retirement income and expanding the sales tax - the first of which is political death and both of which are opposed by Pritzker.
And when you factor in Pritzker’s proposed tax hikes for next fiscal year, you add another $733 million to the $3.4 billion Pritzker’s tax hike would bring in, for a total of $4.1 billion (that figure doesn’t include one-time taxes and fees, like the sports wagering and recreational cannabis licensing fees).
* Crain’s Chicago Business editorial…
Another problem: Pritzker’s plan as proposed pulls in $3.4 billion a year, roughly half what outside experts estimate is really needed to fill the state’s structural deficit, pay off IOUs and adequately fund pensions.
Which “outside experts” are these? I asked and haven’t yet heard back. The only entity I can find which has proposed such a thing is the Civic Committee of the Commercial Club of Chicago. That group isn’t so much known for being a fiscal expert as it is for being a propaganda outlet. They’re the ones who beat the drum for years for unconstitutional pension reforms and then put up “LOL Illinois” billboards all over the state.
The group wants an extra $2 billion a year from various taxes to inject into the pension funds to bring down long-term costs. It’s a good idea. Martire has a similar proposal. But Pritzker wants to get there a different way: by transferring state assets into the funds. We’ll circle back to that idea later today or tomorrow.
Is more revenue needed than Pritzker is proposing? I’d say so. But how much can you realistically get?
* Meanwhile, once again we see a not-great way to describe the proposed graduated income tax…
Under Pritzker’s plan, those earning $10,000 or less would receive a minuscule reduction of 0.2 percentage points and pay a 4.75 percent rate.
Those earning between $10,001 and $100,000 would receive a more minuscule cut of 0.05 percentage points and pay a rate of 4.9 percent.
Those earning between $100,001 and $250,000 would pay the same rate as they do now — 4.95 percent.
From there, the tax rates dramatically increase.
Those earning between $250,001 and $500,000 would pay a 7.75 percent tax rate.
Those earning between $500,001 and $1 million would pay a 7.85 percent tax rate.
Still unclear on the concept of marginal vs. effective rates.
* A much better way of describing the proposal…
The taxes would be applied marginally, meaning 4.75 percent rates would be applied to an earner’s first $10,000 of income, a 4.9 percent rate would apply to the next $90,000 of income, and a 4.95 percent rate would apply to an earner’s income from $100,001 to $250,000.
According to the plan, that means taxpayers in those brackets would pay a lower rate than Illinois’ current 4.95 percent rate which applies to every penny of income.
A 7.75 percent tax would take effect for income between $250,001 and $500,000, and a 7.85 percent rate would apply to an earner’s next $500,000, up to $1 million.
When an earner hits $1 million of income, every penny they bring in would be taxed at a 7.95 percent rate.
* One more…
IPI said “there’s no publicly available data to back up Pritzker’s claim that his rates are capable of generating $3.4 billion in revenue” and that, according to IRS statistics, “these rates would generate far less revenue ($1 billion to $2 billion less).”
IPI estimates that “revenue from these proposed rates would bring in only $1.4 billion, according to dynamic estimates, or $2.4 billion, according to static estimates.”
I asked the Illinois Policy Institute last week how they came up with their projection and was promised an explanation and never heard back. The Pritzker administration says it devised its projection by working with the Illinois Department of Revenue and others.
Also, “dynamic” scoring can be twisted to do whatever the scorer wants. It’s more magic than math.
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Just 4 precincts reelected Ald. Burke
Monday, Mar 11, 2019 - Posted by Rich Miller
* I meant to post this when Eric Zorn wrote it, but somehow forgot. Zorn drilled down into 14th Ward election results to see how Ald. Ed Burke won…
His two challengers, Jaime Guzman and Tanya Patino, simply had to hold Burke to less than 50 percent of the vote in order to force a runoff election April 2.
And in 27 of the 31 precincts in the 14th Ward, they did. Combined, Guzman and Patino won 51 percent of the vote in those precincts, according to preliminary tallies provided by the Chicago Board of Elections.
But in four precincts in the western finger of the ward — a 38-block-long gerrymandered extrusion that in places is just one block wide — Burke’s operation shuffled that deck and got his voters to the polls.
The contiguous 1st, 4th, 9th and 24th precincts at the far edge of that protuberance had 52 percent voter turnout, compared with a dismal 30 percent turnout in the other precincts. Those four key precincts, which overwhelmingly supported white mayoral hopefuls Jerry Joyce and Bill Daley, voted 70 percent for Burke.
That margin boosted Burke to 3,759 total votes, close to 54 percent, enough to claim re-election and avoid a runoff.
Burke deployed a ton of people to those precincts.
Anyway, good catch by Eric.
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If you can’t beat it, bend it
Monday, Mar 11, 2019 - Posted by Rich Miller
* My weekly syndicated newspaper column…
Democrats often propose ideas that take forever to explain and are often difficult for the masses to understand. That wasn’t the case last week.
“Under my fair tax plan,” Gov. JB Pritzker tweeted, “97 percent of taxpayers get tax relief and the wealthy will pay their fair share.”
It’s gonna be really tough to top a succinct message like that, particularly when its chief supporter is worth $3.2 billion and just gleefully spent $170 million on his campaign and is willing to spend big on this.
The governor’s new graduated income tax plan is obviously designed to appeal to the most people possible. And 97 percent is almost everybody.
The dirty truth is that human beings tend to prefer taxes which don’t apply to them. It’s really no surprise that 72 percent of Illinoisans backed a progressive income tax in the most recent Paul Simon Public Policy Institute poll taken last year.
So, the tiny 2.7 percent of income tax filers who will pay more taxes under Pritzker’s plan and who, unlike in the past, have little hope of outspending the governor if it goes to the voters for approval will have their work cut out for them.
One of the early responses from opponents was to attempt to scare people into believing rich people will pack up and leave, even though one of our biggest exit problems is the tens of thousands of kids who leave for out-of-state colleges every year and never come back.
Other pro-business types claimed part of Pritzker’s proposal was a “millionaire’s tax,” which actually polls even better than a graduated tax. They can’t beat Pritzker that way.
Democratic state legislators were mostly silent. That’s often the case with big proposals. Legislators are, for the most part, naturally cautious creatures who will want to be assured they can do this without harming their districts and, in turn, themselves.
As with the recent minimum wage hike, the governor can stress to legislators that his tax plan is a “core Democratic Party value,” and that he will have their backs if they’re attacked. This won’t be an easy rollcall, but things like infrastructure projects will help smooth things over.
The House Republicans have been a hard “heck no” for weeks on this topic. But the Senate Republicans left the door open to negotiations.
“Without guaranteed protections for middle class families, we are opposed to the governor’s $3.4 billion tax increase,” the caucus statement read. They wouldn’t say what those “guaranteed protections” might be, but I was told that the caucus is open to “exploring” the topic.
Senate Republican Leader Bill Brady has always been a guy who wants to be at the table. And he likely knows he can’t stop that constitutional amendment in his chamber (the real fight will probably be in the House).
And, remember, 97 percent of taxpayers will get some relief. It’s not much, but sneer at a $271 annual tax cut for a family of four earning $61,000 at your own peril. That’s a decent credit card payment or two, and families in that bracket aren’t exactly flush with cash. Anyone who is a hard “no” on this can be portrayed as opposing tax relief for almost everybody on behalf of the rich.
So, why not try to make his caucus look reasonable and bend the proposal his direction?
What about altering the rates, or formally tying the top tax rate to the lowest in the same way the corporate rate is currently tied to the personal rate to prevent lawmakers from soaking big business without also raising taxes on individuals? Or, how about allowing married couples who file joint federal returns to file separate Illinois returns to avoid triggering higher brackets? Or what about dumping the proposed one point increase in the corporate rate, which would only bring in about $317 million anyway?
From what I’m told, Gov. Pritzker is not only eager to talk with the Republicans, he doesn’t expect them to put a single vote on the amendment. Adding some Republican ideas would undoubtedly make his case stronger with moderate Democratic legislators and with voters. Does that mean Republicans would be used as cover? Of course, but it also means that the Republicans will have made some important changes. It’s called governing.
Pritzker’s plan is so easy to like that, unless they’re absolutely sure they can kill this thing, the Republicans need to get to the bargaining table before it’s too late.
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