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White clarifies national reports

Monday, Jul 8, 2019 - Posted by Rich Miller

* Press release…

Illinois Secretary of State Jesse White said today that his office does not share information with Immigration and Customs Enforcement (ICE) or any other law enforcement agency on the issue of a person’s legal status in the United States.

White made his comment in response to published stories saying that ICE and the Federal Bureau of Investigation use photos from Drivers License offices nationwide as a means to identify undocumented persons. Illinois was not mentioned as one of the participating states. White’s statement serves to underscore this fact.

“If an individual is being sought by a law enforcement agency for criminal activity, we fully cooperate with authorities, but we do not specifically disclose the person’s legal standing.”

…Adding… Tribune

U.S. Immigration and Customs Enforcement, or ICE, has used facial recognition technology to comb through millions of driver’s license photos, a move experts say violates the privacy of both immigrants living in the U.S. illegally and at risk of deportation, and legal residents and citizens.

The searches were uncovered in documents obtained through public record requests by Georgetown Law’s Center on Privacy and Technology. They found ICE officials requested to look through state license photos, and at least two states complied, The Washington Post reported Sunday.

In the past two years, Illinois has received three or four requests from federal law enforcement, including ICE, for information on residents’ legal status, and has turned down every request, said Dave Druker, spokesman for the Illinois secretary of state’s office.

ICE would need to have a name, some other identifying factor, and indicate the person was a suspect in a crime in order to access the state’s database, Druker said. Broad searches or checking on immigration status is not enough, he said.

  6 Comments      


Today’s quotable

Monday, Jul 8, 2019 - Posted by Rich Miller

* Block Club Chicago

Back in 2012 and 2013, history buffs Daniel Pogorzelski and Jacob Kaplan were on a mission to get inside a nondescript brick building at the northwest corner of Diversey and Drake avenues.

Longtime city clerk and former 35th Ward Ald. John Marcin, one of former Mayor Richard J. Daley’s closest political allies, had worked out of the building for years. There were rumors all of his stuff was still in there, virtually untouched since his death in 1984. […]

And, much to their surprise, the rumors were true: Marcin’s office at 3534 W. Diversey Ave. had been left untouched. Old photos, campaign literature (some dating back to the 1930s when Marcin ran for congress), meticulously compiled scrapbooks, oil paintings and even neon signs were all sitting there, collecting dust.

Wow.

* Scroll down for the quote

After Daley died in office, his successor, Mayor Michael Bilandic, tossed Marcin out for the next election cycle after it was revealed he was “holding city funds in a non-interest-bearing account in a bank on whose board of directors he sat,” according to the Reader.

Marcin ran for alderman of the 35th Ward, knocking off former ally Ald. Casey Laskowski. During that race, Laskowski made public an open secret that Marcin may have listed the Diversey Avenue building as his home address but he spent much of his time at a lavish, Thomas Jefferson Monticello-style mansion near the Wisconsin border, according to the Chicago Tribune.

Asked why he went public after knowing about Marcin’s home for years, Laskowski said, “He wasn’t running against me before,” the Tribune reported.

Funny how campaigns work.

  10 Comments      


Margaret Blackshere

Monday, Jul 8, 2019 - Posted by Rich Miller

* Set the Wayback Machine to January 9, 2000

Margaret Blackshere, a former kindergarten teacher from Downstate Illinois, was named president Saturday of the Illinois state AFL-CIO in the labor’s group first-ever contested election.

Her victory in a hotly contested election marks a small but significant change in the leadership of state labor groups across the U.S. Only one other state labor group, Florida’s, is led by a woman.

Blackshere, of Springfield, who has been secretary-treasurer of the state labor federation, won about 60 percent of the more than 400,000 votes cast by union members across the state. Balloting took place last month; results were announced Saturday afternoon.

Michael Carrigan, business manager for Decatur Local 146 of the International Brotherhood of Electrical Workers and a Decatur City Council member, was elected secretary-treasurer.

Their opponents were George Machino, president of the Madison County Central Labor Council, and Joe Costigan, Chicago-based political director for UNITE, the Union of Needletrades, Industrial and Textile Employees.

Usually, the secretary-treasurer would move up the ladder uncontested. That time was different and it was one bitter battle. Blackshere, the first ever woman president of the IL AFL-CIO, went on to serve two terms and reinvigorated the organization in the process.

* Ms. Blackshere passed away over the weekend. She started out as a school teacher and this is the notice the Illinois Federation of Teachers sent to its members…

The IFT is saddened to inform you of the passing of Margaret Blackshere.

A former president of the Madison Federation of Teachers Local 743 and IFT Vice-President, Margaret also served as IL AFL-CIO Secretary-Treasurer and was elected (the first female) president in 2000 serving two terms. Margaret was inducted into the Illinois Labor History Society’s Union Hall of Honor and in 2013 SIUE honored Margaret by inducting her into the Alumni Hall of Fame.

A Special Order of Business was presented to the 2007 IFT Convention recognizing Margaret Blackshere as the first recipient of the IFT Lifetime Labor Achievement award for her contributions to labor and the human rights movement.

* From her obituary

Margaret was raised in North Venice, IL by her Mother Frances and Aunt Margie. She began her career in education as a kindergarten teacher in Madison, IL after obtaining her master’s degree in education at Southern Illinois University in Edwardsville. While attending SIUE she served as a student trustee and after completing her studies she served as a trustee after being appointed by the governor. She immediately saw the need for Madison teachers to have union representation during their contract negotiations and instigated an organizing drive that led to the Madison teachers joining the Illinois Federation of Teachers (IFT).

Margaret has served at all levels of the labor movement from president of her local union(763) to statewide vice president of the IFT. In 1993 she was elected secretary-treasurer of the Illinois AFL-CIO- the million-member umbrella organization for all labor unions in the state. She was later elected as president, serving two terms. She was the first woman to hold that position. Margaret retired as president in February of 2007 and was given president emeritus .

Margaret’s work to elect worker-friendly legislators and state-wide officials has given Labor a strong voice in Springfield and Washington. Her efforts on key state legislation like raising minimum wage, expanding health care, enacting card check for public employees, revamping unemployment insurance, and revising workers’ compensation laws, have been invaluable.

But Margaret’s greatest contribution to Illinois’ Labor movement may be her capacity to unify diverse groups and build coalitions, both with the Labor movement and between Labor, small business and community and faith-based groups. Margaret has forged critical alliances with the Illinois Manufacturers Association to create and save manufacturing jobs in our state and with The Transportation for Illinois Coalition- a group of labor and business groups working to secure state and federal funds for Illinois’ infrastructure. Within the Labor movement, Margaret worked tirelessly to keep Illinois affiliates united and working together in political and legislative efforts when several international unions left the AFL-CIO.

Away from her duties at the State Federation, Margaret has been involved in many organizations fighting for equality and social justice. She served on IWIL and a variety of boards, councils and coalitions including United Way of Illinois, American Red Cross in Illinois, Chicago Council of Foreign Relations, Unemployment Insurance Advisory Board, the Alliance of Retired Americans Executive Board, the Industrial Commission’s Self Insurer’s Advisory Board, the Chicago Metropolis 2020 Board, the Illinois Women’s Institute for Leadership, the Transportation for Illinois Coalition, the Federal Reserve Bank of Chicago Advisory Council and the Board of Trustees of the Global Solidarity Center in Washington, D.C.

She has received awards such as the Labor Leader Award in 2000 from the Labor Council for Latin American Advancement, the Israel Peace Medal in 2000 from the State of Israel, and the Protector of Working People Award in 2002 from the Illinois State Crime Commission: She was the Guest of Honor in 2003 for Chicago’s St Patrick’s Day Parade and in 1998 she was inducted into the Illinois Labor History Society’s Union Hall of Honor.

My condolences to her family and her many, many friends and allies.

…Adding… Tributes are coming in…

The following statement is from Chairman and Mrs. Madigan. Thank you.

Margaret Blackshere’s impact on the hard-working men and women of Illinois will be felt for generations to come. As the first woman to serve as president of the Illinois AFL-CIO, Margaret created a seat at the table for female workers and always fought for their best interests. She had a passion for building bridges and uniting people around common goals with a spark and an energy that was unmatched. We will miss Margaret and her fierce spirit. Her family and loved ones are in our thoughts and prayers.

* And…

IFT President Dan Montgomery issued a statement of condolences following the passing of Margaret Blackshere, union leader:

“I was saddened and humbled to learn of the passing of Margaret Blackshere and, on behalf of the Illinois Federation of Teachers, offer my deepest condolences to her family and friends. She got her start in the labor movement at IFT and made a difference at every level, growing from member to leader to vice president before she went on to make history as the first woman president of the Illinois AFL-CIO.

“From her start organizing teachers in Madison, Ill., to her leadership at the state and national levels, Margaret’s efforts to make our state and country better and fairer for everyone were inspirational and quite necessary. She was a tireless advocate for working people and a shining example of what a union leader can be. We at the IFT are proud to have known her and to continue the work she believed in.”

* State Fed…

The Illinois AFL-CIO mourns the passing of former President Margaret Blackshere. Margaret was a fearless leader for economic and social justice from the halls of the State Capitol to the picket lines and shop floors up and down our state. She will be deeply missed by our organization, the labor movement and working families throughout Illinois.

* IMA…

“Margaret was a strong and effective advocate for the Illinois labor movement. While our organizations battled on many occasions, she also had the ability to collaborate on key manufacturing and education issues important to our state. On behalf of the Illinois Manufacturers’ Association, I would like to offer my sincere condolences to her family, friends, and colleagues in labor on her passing,” said Mark Denzler, president and CEO, Illinois Manufacturers’ Association

* Governor Pritzker…



* Sun-Times

Visitation will be held from 1 p.m. to 9 p.m. Wednesday at Cooney Funeral Home, 625 Busse Hwy in Park Ridge. The funeral is scheduled for 11 a.m. Thursday at St. Juliana Roman Catholic Church, 7200 N Osceola Ave.

  21 Comments      


Problems as far as the eye can see

Monday, Jul 8, 2019 - Posted by Rich Miller

* Center for Illinois Politics

As DCFS has battled diminished funding, it’s also come to terms with significant administrational shortcomings: children lost amid bureaucratic inefficiency, mistakes, gross errors in judgement and the astounding revelation that 98 children whose cases were being handled by the agency were the victims of homicides - in a single year’s time.

Number of children in DCFS custody (including foster care, institutions or group homes):

    Fiscal Year 2019: 16,026*
    Fiscal Year 2018: 17,465
    Fiscal Year 2017: 16,780
    Fiscal Year 2016: 17,026
    Fiscal Year 2015: 17,507
    Fiscal Year 2014: 17,949
    Fiscal Year 2013: 18,084
    Fiscal Year 2012: 18,466
    FY 2011-1997: Data Not Available
    Fiscal Year 1996: 54,144
    Fiscal Year 1995: 47,862
    Fiscal Year: 1994: 41,161

    *Estimated number prior to conclusion of the 2019 fiscal year.

The agency has been so intent on keeping children with their parents that its practice has resulted in putting those children in danger, a study released in mid-May by Chapin Hall, a child welfare think tank at the University of Chicago found. This practice was horrifically illustrated by the recent death of 5-year-old Andrew “A.J.” Freund of Crystal Lake, who was placed in a cold shower and beaten to death in April by his parents, who later dumped his body in a nearby wooded area.

* And while we have far fewer children in DCFS custody than in years gone by because the state over-corrected toward keeping them with their biological parents, we also have a “permancy” problem. The state takes a lot of time to decide what to do with these kids

Many of these efforts are also directed at tackling what may be the DCFS’s biggest objective problem: the fact that Illinois has the worst permanency numbers in the nation. “Permanency” is a term used in social work to describe an instance when a child is either reunited with his or her birth family or adopted by a different one, exiting the temporary care system and establishing the child in a stable household, hopefully permanently. In Illinois, children stay under the DCFS’s care for 23.2 months on average before achieving permanency. By comparison, New York, the next state over on the ranking, has an average of 20 months while Colorado comes out on top with only 7.9 months. Increased funding and staffing could improve that statistic, adding more social workers to appropriately deal with cases and funding to support them, and at the same time that the Department is promising study new ways to improve permanency for its wards, the children of DCFS.

  15 Comments      


Judge says midterm legislative furloughs, COLA suspensions are unconstitutional

Monday, Jul 8, 2019 - Posted by Rich Miller

[Bumped up from last week for visibility, comments opened for discussion and updated below.]

* From the legislative article of the Illinois Constitution

A member shall receive a salary and allowances as provided by law, but changes in the salary of a member shall not take effect during the term for which he has been elected.

People have long argued that the legislative furloughs (required unpaid days) approved by the General Assembly in years past and the legislature’s nearly annual ritual vote to deny themselves statutory cost of living increases (except this year) both violated that constitutional provision forbidding salary changes during their terms in office.

* Democratic Sen. Michael Noland filed suit in 2017 to overturn the statutes ordering the furloughs and denying the COLAs. He was joined in 2018 by Sen. James Clayborne. Neither man is currently serving in the General Assembly.

Cook County Judge Franklin Valderrama sided with Noland and Clayborne yesterday on the constitutional issue. Click here to read the opinion granting partial summary judgement and Valderrama’s contention that there is “no genuine issue of material fact that the statutes are facially unconstitutional.”

Valderrama seemed to leave unresolved the question about whether the comptroller should be ordered to pay the money owed. A status hearing has been set for August.

* From Comptroller Mendoza…

In a complex and unfortunate ruling this week, a judge said former Senator Mike Noland can proceed with his disgraceful and selfish attempt to vacuum up taxpayer money he voted repeatedly not to accept.

I strongly oppose Noland’s shameless money-grab and will fight it, either through an appeal, or in this court as the remaining counts proceed. We will work with Attorney General Kwame Raoul’s office to review this week’s ruling and our legal options.

Noland’s case perfectly illustrates why voters don’t trust politicians. His legislative pension, combined with his new judicial salary and pension, should more than suffice. This is another sad week for Illinois taxpayers.

…Adding… Tribune

Noland originally filed the lawsuit in 2017, seeking back pay for himself and “all others impacted” by the eight bills lawmakers passed to give up the annual cost-of-living raises they are automatically granted under state law. The lawsuit, which Clayborne joined as a plaintiff last year, also takes issue with unpaid furlough days lawmakers approved for themselves each year from 2009 through 2013.

The judge did not order Mendoza to issue checks to anyone, and he scheduled another hearing in the case for Aug. 7.

Noland, a Kane County judge who served in the state Senate from 2007 through 2017, and Clayborne, an attorney who served from 1995 until this year, issued a written statement Thursday saying they were pleased with the outcome.

“Just as Illinois courts held that the Illinois Constitution prohibits using the salaries of judges and legislators as a political football by the Governor and Comptroller to advance a political agenda, members of the General Assembly cannot cut their own salaries on a mid-term basis to curry favor with voters,” the statement said. “It is our hope that the Circuit Court decision will be followed and the impacted legislators will be paid what they are due.”

Thoughts?

  56 Comments      


Not everyone is on the same page

Monday, Jul 8, 2019 - Posted by Rich Miller

* Better Government Association president David Greising in Crain’s

At the end of the redistricting process, Pritzker will be the one politician in the state who actually could prevent a gerry-Madiganed map from becoming Illinois law. Sometime in 2021, Pritzker alone will have the power to refuse to sign the bill proposing the new electoral districts. […]

Pritzker so far has talked a good game. He has promised to veto an “unfair” map. But what exactly does the governor mean by this pledge? In his eyes, what are the characteristics of a “fair” map? And what specific shortcomings might prevent him from approving one drawn by the state Legislature?

So far, Pritzker has refused to say. And his spokeswoman declines to provide any comment in response to my request for further information.

A “gerry-Madiganed map”? Clever, but Senate President John Cullerton might take umbrage at that. He loves him some map-making.

Also, as I’ve pointed out several times before, I asked all candidates last year if they would veto a map drawn by the General Assembly. Pritzker said he would. The definitions are in my question and Pritzker added some more details in his response. Click here to read it for yourself.

* What I haven’t pointed out since the primary is Chris Kennedy’s response

Our campaign is proud to have Ra Joy, a prominent independent maps advocate, on our ticket. With that in mind, no, it would be irresponsible to take an absolute pledge like this because it fails to take into account the situation which may exist at a time of passage.

Kennedy’s campaign devised that response in consultation with running mate Ra Joy, who ran Change Illinois, a good government group that pushed hard for remap reform. I talked to Ra after Kennedy submitted his response, and he was adamant about not making any veto pledges.

* Daniel Biss, also a noted reformer, refused to sign on to a veto pledge as well

Instead of pledging to veto — which is self-defeating and shows how inexperienced candidates would back themselves into a corner because they are unable to advance an agenda constructively — as governor, I would advocate for a true independent redistricting process.

At the time I created the candidate question, I thought for sure that the often-cautious Pritzker would refuse to take a solid stand and Kennedy and Biss would most certainly sign on to the veto pledge. In my own mind, I was deliberately setting a trap for Pritzker. Boy, was I ever wrong.

We’ll see how this all shakes out.

And it’s the job of reformers to complain. I get that. But I also think it’s important to note that not everybody agrees on what is and what isn’t a proper reform.

* Meanwhile, on another topic, Chris Mooney does a pretty good job of outlining both sides of this argument

University of Illinois Chicago politics professor Chris Mooney said he doesn’t expect the appointment process to change.

“It advantages those who are inside and if they’re the only ones paying attention, who has the incentive to change? No one,” Mooney said. “And there are reasonable counter-arguments to make.”

One reason to keep the appointment process in place is the high cost of special elections, Mooney said.

“You want to run a special election for a state representative district that’s going to serve out a year when nobody really knows who these people are anyway? That would be a hard sell,” Mooney said.

  8 Comments      


Emptying my in-box

Monday, Jul 8, 2019 - Posted by Rich Miller

* I was talking with someone about this very point over the holiday. These big infrastructure bills usually take weeks, even months, to sort out. But the new bill was put together in record time and lots of projects were lump-summed, which gives the governor enormous influence

State Rep .Mike Unes (R-East Peoria) said he is displeased with the way the capital bill quickly took shape. […]

“There was thousands of pages of bills introduced in a matter of hours that spent over $40 billion that we were supposed to vote on without anybody reading it. That’s bad form,” he said.

The Republican legislator said lawmakers were asked to vote on doubling the state motor fuel tax without getting a chance to actually know which projects would benefit.

In his district, Unes said a project to upgrade Court Street (Illinois Route 9) in Pekin was left out of the bill, and expenses for the widening of U.S. Route 24 in Peoria and Fulton Counties from two to four lanes didn’t have itemized expenses, but was instead funded by a lump sum amount.

* Rep. Andrade has become a Facebook Live pro, partly because of this studio

An Illinois state lawmaker who spent $20,000 from his campaign coffers to build a video and podcast studio in his Springfield office plans to use the power of social media to share his work and bring his message to more people, something lawmakers throughout the state are trying and testing.

State lawmakers are using social media more and more to reach their constituents and beyond. They share graphics, facts, figures and other information along with videos, either live or produced via Facebook, Twitter, Instagram and other social media platforms. It comes from their state offices or their campaigns.

He showed up for a press conference with the governor last month and wandered around the podium before the VIPs came out. He told his Facebook followers about the upcoming presser and even read aloud from some of the notes on the podium.

* Tom Kacich

State Treasurer Mike Frerichs of Champaign was at Gov. J.B. Pritzker’s Rebuild Illinois announcement last week at the Illini Union and got a shoutout from the pudgy chief executive.

“You always say you stand tall for Illinois,” Pritzker said to the 6-foot, 8-inch Frerichs. “It’s funny. I know and I stand short and squatty for Illinois.”

Um, OK.

  7 Comments      


Question of the day

Monday, Jul 8, 2019 - Posted by Rich Miller

* The governor says this a lot

Pritzker also said improving the state’s infrastructure could also save money on repairs for drivers.

“By resurfacing roads, people’s cars are going to get less damage,” he said. “When you blow out a tire, you often have to replace two tires. that can cost $300, and so the expense of paying for the roads and the upgrades of our bridges and life safety is worth it.

* The governor may be referencing this study

Drive down a major road or highway in Illinois and you’ll likely feel the bump of potholes. A report from TRIP, a Washington, D.C.-based research group, put a number on what it costs drivers to travel these roads — $18.3 billion. That includes additional car repairs, time lost in traffic, and crashes caused by poor road conditions.

The group is funded by road-builders, unions and “organizations concerned with an efficient and safe surface transportation network that promotes economic development and quality of life.”

That doesn’t make their numbers wrong, but it does make me wonder.

* The Question: Have your household or work cars been damaged in the past few years by poor Illinois roads, bridges, etc.? If so, how often? Make sure to explain your answer. Thanks.

  47 Comments      


*** UPDATED x1 - Bailey announces *** Minister who delivered controversial House prayer to run for House

Monday, Jul 8, 2019 - Posted by Rich Miller

* Effingham news radio

He might be in his first term in the Illinois House, but Darren Bailey is already looking to move up.

The Xenia farmer is scheduled to announce today that he will be a candidate for 55th District State Senator. Bailey is looking to succeed Republican Dale Righter of Mattoon, who earlier announced he will not seek re-election in 2020.

I told subscribers about the GOP primary shaping up to replace Sen. Righter several days ago. Rep. Chris Miller’s (R-Oakland) wife Mary is also considering a bid for the seat.

* Bailey, you will recall, is an Eastern Bloc member who has promoted anti-vaxxer myths, among other things, including inviting Pastor Corey Musgrave of the New Beginnings church to Springfield to lead the daily House prayer, during which Musgrave said

I ask you to rise up, oh God, and judge Illinois for the sanctioned destruction of the innocent unborn. For when Your judgements are in this state, the inhabitants of Illinois learn righteousness. In this House I pray for justice to roll down like water and righteousness like a mighty river. In Your judgement I pray that You would remember mercy for we know that You, oh God, do not want anyone to be destroyed.

* Guess who just announced a bid for Rep. Bailey’s seat? Pastor Corey Musgrave


Posted by Cory Musgrave for State Representative 109th District on Friday, July 5, 2019

A pal of mine who helps with the Eastern Bloc’s PR passed that House prayer video along to me in May. I now can’t help but wonder if Bailey was setting up his friend to run for his House seat with some sure-fired publicity over a controversial prayer.

*** UPDATE *** Press release…

Darren Bailey, who currently serves as a State Representative in the 109th District, is today announcing his intentions to run for the Illinois State Senate in the 55th District.

“I did not make this decision lightly,” Bailey said. “My wife and I have spent a lot of time praying and talking to people I know and trust. I was overwhelmed with encouragement I received from these individuals. My sincere desire in running for office has always been to be a strong advocate for our values in Springfield. I believe the best way I can continue to serve and champion the values we share is to run for the Illinois Senate.”

Bailey said the office he is seeking may be changing but his core beliefs remain the same.

“Some people go to Springfield and let the political culture there change them,” Bailey said. “If anything, my experience in Springfield so far has only motivated me more to work for the changes we need. I am pro-life, pro-2nd amendment and pro-spending reforms. I will bring common-sense conservative values to the Illinois Senate.”

This spring, Bailey voted against late-term abortions, the tax increase on motor fuel, the progressive income tax Constitutional Amendment, legalization of recreational marijuana, the $15 per hour minimum wage increase and other harmful legislation. Bailey’s voting record is one of the most conservative during the recently concluded legislative session.

“Illinois is going in the wrong direction,” Bailey said. “The Democrats passed some of the most extreme abortion legislation in the country. They approved recreational marijuana and raised taxes. As State Senator in the 55th District, I will stand firm in opposing the radical agenda the Democrat leaders in the Illinois House and Senate are pushing.

Darren Bailey is the owner of Bailey Family Farm. He is a graduate of North Clay High School in Louisville and he received his A.A.S. in Agricultural Production from Lake Land College. Bailey attends Effingham Assemblies of God Church. He is a member of the Illinois Farm Bureau, Louisville Rotary Club, NRA, Illinois State Rifle Association, the Gideons International, Fellowship of Christian Farmers, National and State Corn Growers Association, National and State Soybean Association, Illinois Wheat association, Rolling Thunder Chapter 3, and the Illinois Independent Business Federation. He and his wife Cindy established Full Armor Christian Academy in Louisville. They have four married children and eight grandchildren.

The Primary Election is March 17, 2020. For more information, log onto
www.baileyforillinois.com.

  36 Comments      


Legal filing called a “crank lawsuit”

Monday, Jul 8, 2019 - Posted by Rich Miller

* Background is here if you need it. Yvette Shields at the Bond Buyer

Municipal market analysts are brushing off the efforts of a New York hedge fund and conservative think-tank to invalidate $14.3 billion of outstanding Illinois debt as a legal long shot that even if successful would likely draw state support to make bondholders whole.

“We will limit our discussion to the justification behind this lawsuit and quite frankly, we do not think there is any,” Citi’s Vikram Rai and Jack Muller wrote of the legal arguments in a “Global Municipals Flash” report after the firm was “inundated” with calls from clients worried about the impact of the litigation filed Monday. […]

Illinois Policy Institute head John Tillman, acting as a taxpayer, and Warlander Asset Management LP, which holds $25 million of Illinois debt, filed the taxpayer/bondholder litigation Monday. They are asking the court to allow them to file a taxpayer lawsuit against the state to halt further repayment of 2003 and 2017 bonds they argue violate the state constitution. […]

Market participants appear skeptical of the legal arguments given the broad powers and limited rules guiding state issuance and the multiple layers of legal review.

“From all appearances it’s just a crank lawsuit,” said Matt Fabian, partner at Municipal Market Analytics. “Even if these guys do win, which seems unlikely, the state is going to do right by bondholders. Concerns over invalidation are really only a problem when it’s the borrower making the claim. It’s very unlikely to change demand for state bonds.” […]

“Some clients have openly questioned the ethical motivation behind the lawsuit and wondered if the recent surprise ruling by the First Circuit Court of Appeals [about Puerto Rico’s debt] has incentivized opportunistic investors to try their luck in the courts challenging other varieties of debt,” Citi wrote in its report.

  18 Comments      


Pritzker reverses Rauner vaccination change

Monday, Jul 8, 2019 - Posted by Rich Miller

* May 8

The Illinois Department of Public Health owes the federal government an estimated $24 million for debt that piled up from a complicated state program to vaccinate low-income kids, WBEZ has learned.

The revelation adds another layer to Illinois’ byzantine effort to get vaccines for roughly 130,000 low-income children. The state had been using free vaccines from the federal government for kids in the Children’s Health Insurance Program, known as CHIP.

But then the feds called for states including Illinois to pay for those doses. So former Republican Gov. Bruce Rauner stopped the financial bleeding with a major policy shift that led some doctors to stop vaccinating low-income children. Dozens of physicians have told Illinois public health officials this “could lead to a public health crisis with disastrous consequences” in light of the nationwide measles outbreak.

* July 3

Democratic Illinois Gov. JB Pritzker’s administration has reversed a controversial state policy that made it harder for low-income children to get vaccinated, WBEZ has learned.

The change is likely to affect some of the roughly 130,000 Illinois kids who are in the Children’s Health Insurance Program, known as CHIP. WBEZ first reported in April that getting vaccines to those children got more difficult following a state rule change made by former Republican Gov. Bruce Rauner.

Pritzker’s administration quietly reversed the rule on Monday, according to a memo obtained by WBEZ. Physicians and pediatric organizations cheered the policy shift on Wednesday.

“We know that families want to get their shots at their medical home,” said Jennie Pinkwater, executive director of the Illinois chapter of the American Academy of Pediatrics. “They want to see their doctor, get those things taken care of in a place where they feel comfortable and have built a relationship with a physician or provider. We’re really excited to see this barrier removed to that.” […]

The rule change will likely mean more costs for the state because more doctors might start once again vaccinating patients on CHIP insurance. But it’s unclear how much.

* Press release

The newly rejoined program will allow providers to obtain vaccines for CHIP children via the VFC program without having to buy vaccines from private sources at market cost and be reimbursed later. As more physician practices, Federally Qualified Health Centers, health department and other providers across the state transition into the newly rejoined program, children covered by CHIP will also be able to get their CDC-recommended vaccines via their medical provider, IDPH said.

  15 Comments      


Gaming expansion roundup

Monday, Jul 8, 2019 - Posted by Rich Miller

* Joe Bustos at the Belleville News-Democrats has the most thorough deep-dives into the new gaming laws that I have yet seen

Just because Gov. J.B. Pritzker has signed a massive gaming expansion into law, it doesn’t mean people can wager on St. Louis Cardinals games right away.

The Illinois’ gaming expansion is one of the ways the state will help pay for the $45 billion Rebuild Illinois capital bill and is planned to go toward projects at state facilities. The gaming expansion legalized sports betting, authorized up to six new casinos, including one in Williamson County, casino-like gaming at horse racetracks, and more video gaming in restaurants, taverns, fraternal organizations and truck stops.

But the gaming board still needs to set up rules for sports betting, review the eventual applications for gaming licenses for the six new casinos and racinos, and oversee the addition of more video gaming terminals.

When the state legalized video gaming terminals as part of the 2009 Illinois Jobs Now! capital plan, it took three years for the machines to get up and running.

Read the whole thing if this topic interests you.

* Metropolis’ casino just plugs away without much notice. The Danville Commercial-News talks with that town’s mayor to see what might be ahead for its own area

Having casino revenue flow into the city has been a big impact on the southern Illinois City of Metropolis for the past few decades. Danville officials hope to see the same thing here with a casino within a couple years.

When a casino first came to Metropolis in the 1990s, the city of about 7,000 people received about $7 million annually in revenue.

“It was a big deal,” Mayor Billy McDaniel said.

“We were able to do a lot of infrastructure and things like that that we actually paid in cash. We built a new fire station and police station, remodeled our library, redid a substation …,” McDaniel said, adding that they also paved and widened roadways, paved alleys and completed several other projects over the years. They also had scholarships for local high school students.

McDaniel said he’s not criticizing past use of the money, but he said some also was spent foolishly.

* Allowing racetracks to create “racinos” has been a goal for years, but Crain’s looks at whether Arlington Racecourse will be much of a player

With the looming super-saturation of the Chicago-area casino business, one theory is that Churchill Downs will opt to focus on its Rivers Casino stake, a pure-play gambling option, and one that comes with Rivers co-founder and Chicago real estate magnate Neil Bluhm, whom Carstanjen, 51, has said he values for his local political savvy.

Under the lawyer and GE Commercial Finance alum, Churchill Downs has morphed into a casino company with 11,000 slots and “video lottery terminals,” 200 gaming tables and, yes, a few racetracks. Its stock has quadrupled from a five-year low.

Rivers Casino alone generated $442 million in revenue last year—50 percent more than racing did for Churchill. Less than 30 percent of Churchill Downs’ 2018 revenue of $1.01 billion was directly related to racing, compared with more than 40 percent attributable to casino operations. (The remainder was largely due to online betting.)

Meanwhile, Arlington’s revenue declined $2.2 million last year, to $61.7 million, a sample of horse-racing industry challenges. While casinos cut into the betting “handle”—down nearly 40 percent, to $11 billion industrywide, since 2002—a surge in on-track fatalities threatens an existential crisis.

* The new law imposed an ambitious schedule on cities like Rockford

The city of Rockford released a Request for Proposals regarding casino expansion on Wednesday.

The document​ offers details on the city’s background, potential project sites and a timetable for casino completion. […]

    July 25: Last day for interested proposers to submit written questions
    August 1: Responses to questions distributed via addendum and on the City’s website
    Aug. 16: Request for Proposals responses due by 2 p.m.
    Aug. 19-Sept. 13: City follow-up questions to proposers, evaluation
    September 16: Evaluation team submits recommendations to City Council
    Sept. 23: Public Hearing
    By Sept. 30: City Council certifies proposers
    Before Oct. 25: Applications filed with Illinois Gaming Board

The RFP is here.

* Waukegan coverage

Waukegan’s request for proposals asks potential developers to detail their ideas for where the new casino could go and what it would be like, requiring such details as the number and types of gaming positions, the plan for including sports betting, the physical layout of the space, parking plans, and a description of associated facilities like restaurants, hotel, convention center, and retail or entertainment options.

Applicants were given a deadline of 3 p.m. on July 22 to submit their concepts.

Cunningham has repeatedly pointed to a site at the Fountain Square shopping complex off routes 43 and 120 as a future home for a casino, the documentation released Wednesday also identifies other city-owned sites in the downtown or near the lakefront.

* The schedule is also tight for Chicago

The Illinois Gaming Board has been given until Monday to hire a private consultant to conduct a casino feasibility study. The consultant then has just 45 days to come back with study results. Then the city has just 90 days to propose any necessary changes in the law through a “trailer” bill in Springfield.

* Related…

* Surge expected by Illinois gambling addiction program

* Governor visits Walker’s Bluff to talk about gambling expansion

* Gambling Bill Approval Gets Southern Illinois a New $300m Casino Resort: The projections for the development cost of the casino resort appear to be in the region of $300m. The project will see 330 rooms built and hundreds of new jobs created. Governor Pritzker is confident that the new legislation will be a massive help to the state

* Moran: Waukegan’s request for casino bids includes different location concepts, possible ‘temporary’ facility

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Monday, Jul 8, 2019 - Posted by Rich Miller

* My weekly newspaper column

One point Gov. J.B. Pritzker has made since Mayor Lori Lightfoot began using the news media to ask for a multi-billion-dollar state pension bailout is that other parts of Illinois are having the same problems as the state’s largest city.

Rockford is one of them, as the governor noted last week. Its first responder pension funds are in horrible shape for pretty much the same reason as so many others are: The state didn’t require local governments to fully fund those particular pension funds, so a large number of locals just didn’t do it.

Sufficient local contributions have long been required by state law to the Illinois Municipal Retirement Fund, the unified statewide pension system for almost all other local government retirees. Consequently, the IMRF has always ranked among the best-funded systems in Illinois.

Locals are now required to do the same for police and fire pensions and the squeeze is real. In typical top-down Statehouse fashion, local governments were simply ordered to fix their first responder pension deficits without any sort of help from the state.

Rockford Mayor Tom McNamara claimed not long ago that by 2025 pension payments will consume an eye-popping 60 percent of his city’s annual budget.

Last November, Peoria’s city council voted to eliminate 22 firefighter and 16 police positions to help close a $6 million budget hole. Carterville, in southern Illinois, raised its property taxes by 30 percent last year to help cover the hole created by the state mandate. The list is almost endless.

The governor has flatly ruled out any sort of state assumption of local pension liability. He explained, with strong evidence, that doing so could quickly hurtle the state’s bond rating into junk territory. Pritzker talked about some pension fund consolidation, but only for administrative functions and investments, which would save some money, but only on the edges and mainly for smaller funds. Full consolidation of liabilities would probably not go over well with local governments which have healthy pension funds.

Something clearly needs to be done about this mess. Pritzker himself has repeatedly admitted that high property taxes are driving businesses out of state.

But, unlike his two immediate predecessors, Pritzker will not support pension benefit reductions (which would be unconstitutional anyway without changing the state’s constitution, which is politically not possible and might only be doable for new hires even if it could be accomplished, which it can’t). And, unlike the man he defeated last year, Bruce Rauner, Pritzker won’t favor allowing local governments to cut their operating costs by unilaterally slashing benefits earned through the collective bargaining process.

That leaves revenue. But Pritzker won’t support a politically unpopular tax on retirement income that Lightfoot foolishly floated. Anyone paying even the slightest bit of attention to last year’s Democratic gubernatorial primary could see Pritzker’s aversion to that tax and how he used the issue to successfully bludgeon his top two opponents. I have no idea what she was thinking, but she ought to fire whoever came up with the idea. And if it was her idea, she needs to learn from that blunder, or she’s got a very rocky road ahead of her.

What this rookie mayor doesn’t yet seem to quite grasp is that if she wants state help for her city then she has to make friends and allies. And you obviously don’t do that by allowing the state’s leaders to be blindsided by a tax proposal which has zero chance of being considered, let alone passed.

You also don’t make friends by setting up the governor and the General Assembly to take the blame for your own failure. They aren’t the City Council, which can be pressured into standing at the new mayor’s command during an inauguration ceremony. Just ask Bruce Rauner how that sort of governing style worked in Springfield. Actually, don’t ask him because he probably still thinks he did everything right.

Mayor Lightfoot has a governor and two Democratic legislative leaders with super-majorities who live in her city and want her to succeed. But, as important as her city is, it is not an island. The mayor needs to make common cause with Downstate and suburban mayors to push for realistic solutions.

A local service tax option, which the mayor said she now supports as an alternative to that retirement income tax, might possibly be one way to do it. But it most certainly won’t happen unilaterally. Nothing will.

* Related…

* Gov. Pritzker still looking at pension fix: “Our goal is to have the work of the task force, at least the initial work with an initial recommendation sometime this summer so that in the event there is action needed in the veto session we’re ready to do that,” Hynes said.

* Will Illinois Help Its Cities With Pension Problems?

  36 Comments      


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Monday, Jul 8, 2019 - Posted by Rich Miller

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