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Protected: SUBSCRIBERS ONLY - Speaker Madigan on tax hikes, GOP critics of the rate deal, recusing himself from property tax discussions; the governor’s health insurance plan, education funding prospects in the Senate and Stroger Hospital

Wednesday, Jul 25, 2007 - Posted by Rich Miller

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This just in… *** Important updates in “red” *** Panel passes cig tax hike *** Committee approves health insurance plan ***

Wednesday, Jul 25, 2007 - Posted by Rich Miller

[Bumped to the top because of breaking news.]

* 10:58 am - Chicago TV stations 2, 5 and 7 have all sent crews to Springfield. The Chicago TV people think something is about to happen. They’re gonna be sorely disappointed [or maybe not - see the next post]. Still, they did manage to get interviews with the governor yesterday, so the trip hasn’t been a total loss. Perhaps that’s why there was no leaders meeting yesterday. The guv may have been just too busy with the TV guys.

* 11:37 am -
The Senate just waived posting requirements so that the cigarette tax hike bill (HB 556, SA 1) could be heard in the Senate Revenue Committee at 12:45.
Also, Senate Public Health Committee will meet at 1:15 today to take up the governor’s retooled health insurance bill.

The Senate Dems will hold a caucus later today on the health insurance bill, followed by session. If they have the votes, we could see some action today. I’ll bet that will be a pretty rough caucus meeting.

* 11:50 am -
LOL. No wonder the governor’s campaign spokesman didn’t return a message I left about this item…

Only days after Antoin “Tony” Rezko was indicted on federal corruption charges last fall, Gov. Rod Blagojevich’s campaign moved quickly to try to limit the fallout and gave to charity political donations directly linked to one of the governor’s former top advisers and fundraisers.

But one charity eventually turned down the tainted money and sent the Blagojevich campaign a check back in March for $44,846.03, according to state-mandated campaign disclosure reports the governor recently filed.

Officials for the Texas-based Susan G. Komen Breast Cancer Foundation, now known as Susan G. Komen for the Cure, said they returned the money because they do not accept political funds. […]

Despite the Komen foundation’s explanation, state campaign disclosure records for the past seven years show the foundation and its Illinois affiliates previously accepted $2,110 in politician’s cash, ranging from an ad in a program book to fundraising tickets to outright donations.


* 11:56 am -
The IL GOP has a new blog. What do you think?

* 12:25 pm -
The governor has already said (to me, at least) that he will back a cigarette tax increase. The Tribune just got his spokesman on record as well…

“Yes. We support it,” said Rebecca Rausch, Blagojevich’s spokeswoman. “We’d like to see the money raised from the cigarette tax go to something like education or perhaps even health care.”


* 12:31 pm -
The indispensible Billy Dennis, aka Peoria Pundit, is having serious computer problems and could use some help. If you have a few extra bucks, drop it in his tip jar. Thanks.

* 12:39 pm - What he said.

* 1:26 pm - There will be no leaders meeting today. They haven’t had one of those in awhile.

* 1:39 pm - Not exactly a huge surprise…

Cook County Commissioner Roberto Maldonado Announces his Candidacy for Congress

“During my twelve years as a Cook County Commissioner of the 8th District (which includes nearly half of the 4th Congressional District), I have championed legislation that brought homeowners tax relief, won workers a living wage, and passed numerous initiatives, including a mail order prescription drug program, that have opened the public health system for uninsured and underinsured families and seniors. I have successfully secured passage of several measures supporting immigration reform, and, recently, I claimed victory in declaring Cook County a “Fair and Equal County for Immigrants.”

*** 2:06 pm *** The Senate Revenue Committee just approved the cigarette tax hike 6-3 on a straight party line vote. One Republican (Sen. Murphy) was absent.

The governor’s revamped health insurance plan is up next in the Public Health Committee, which is meeting in the same room.

* 2:35 pm - The Illinois Republicans have posted the video from last night’s “Chicago Tonight” episode featuring House Republican Leader Tom Cross and Senate GOP Leader Frank Watson…


* 3:00 pm - Paul had this scoop the other day and I didn’t have room for it. Sorry, buddy…

With the formal announcement last week by Chicago attorney Jim Capparelli that he was throwing his hat into the ring, it appears Cong. Dan Lipinski (D-3rd) will have two opponents in the Democratic primary race set for Feb. 5, 2008.

About 250 people turned out to hear Capparelli make his official declaration of candidacy at a party held last Thursday evening at the Argo-Summit American Legion Post, 6050 S. Harlem Ave.

Western Springs resident Mark Pera, a Cook County assistant state’s attorney, had already declared his candidacy in the district, which takes in many of Chicago’s southwest suburbs, including Burbank, Bridgeview and Oak Lawn, in addition to several neighborhoods on Chicago’s Southwest Side.

* 3:20 pm - From the SJ-R

Republicans on the committee opposed the bill. They were skeptical about the revenue estimates, especially since studies show higher cigarette taxes prompt people to quit smoking.

Bill Fleischli of the Illinois Association of Convenience Stores said higher cigarette taxes in Illinois will cause more people to stock up in neighboring states.

*** 3:42 pm *** The Senate Public Health Committee is still taking testimony on the governor’s revamped health insurance proposal, but some Senators had to leave so they took a roll call. It passed, along party lines, 7-4.

* 3:48 pm There’s a bit of a tussle at the committee hearing now because the vote was taken before opponents had a chance to testify. Not that it would’ve mattered.

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Protected: SUBSCRIBERS ONLY - Immigration; Crespo; Loans; Ackerman (Use all caps in password)

Wednesday, Jul 25, 2007 - Posted by Rich Miller

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Question of the day

Wednesday, Jul 25, 2007 - Posted by Rich Miller

Yesterday, I asked what you thought was the most corrupt organization or entity in the state.

Today, I’d like to know what you think is the least corrupt (or even most honest, if you’d go that far) entity in Illinois. Like yesterday, it doesn’t have to be a political or governmental entity.

  59 Comments      


We’re Number One!!!

Wednesday, Jul 25, 2007 - Posted by Rich Miller

* Oy

Illinois legislators are set to make history on Wednesday, but it is nothing to celebrate.

When they convene to try to end the budget stalemate, they will break the record for the state’s longest legislative overtime session – 55 days.

* History

In 2004, it took lawmakers until July 24 to approve a budget for the fiscal year that started July 1.

* Sigh

“I don’t think we’re anywhere closer than we were a week or two or three or four months ago. We’re in suspended animation. We’re going nowhere fast,” said House Minority Leader Tom Cross, R-Oswego.

* Stuck

‘’I think the problems that exist with the budget still exist,'’ said state Rep. Gary Hannig, a Litchfield Democrat who serves as point man on budget issues for House Speaker Michael Madigan.

* Understatement

“Holding the record for the longest overtime session in Illinois history is not one we should be proud of,” said Sen. Martin Sandoval, D-Chicago.

* Deadline looms

Illinois Comptroller Dan Hynes says the state could keep operating for at least another week after the state’s spending authority expires on August 1.

But, Hynes insists he needs a budget outline by August 8 in order to send out the first round of school aid payments. After that, the comptroller said he needs money to pay state workers by August 9.

* But the deadline may help

“We are in suspended animation,” said House Minority Leader Tom Cross, R-Oswego. “The only way we’re going to get something done is to find ourselves in a crisis situation. There’s no pressure to get anything done.”

Legislators are human beings, and humans don’t usually take big actions unless some sort of deadline is hanging over their heads.

* Spin

“We’re going to break a record in terms of having the longest overtime session here in Illinois and I take pride in that because I’m not interested in settling for any old budget that doesn’t do anything for people,” Blagojevich said Tuesday. “Whether we finish tomorrow, next week or next month or however long, at the end of the day it’s what we do for people that matters.””

* Red herring

The governor had scorn for general assembly Democrats who have speculated that Blagojevich might eventually go along with the income tax increase being pushed by House Speaker Michael Madigan.

“I’ll veto anything that they pass along those lines, and if they were to somehow override a veto, I’d keep them in special session to undo that,” Blagojevich said.

No Democrats are saying that the governor would go along with an income tax hike. I don’t know where that question came from. And the governor has no power to compel members to attend a special session. All it takes is two people in each chamber to convene the specials and adjourn them sine die.

* Good advice

“They need to all sit down, put all their personalities aside and play nice in the sandbox,” [Senate Majority Leader Debbie Halvorson] said.

  37 Comments      


Cigarette tax hike update

Wednesday, Jul 25, 2007 - Posted by Rich Miller

* I thought I had a scoop this morning about the cigarette tax proposal, but the Tribune also got the story…

- The state’s cigarette tax would increase by 75 cents under a measure Senate Democrats are pushing as Gov. Rod Blagojevich and the General Assembly struggle to find a way out of the overtime standoff that enters a record 55th day on Wednesday.

The proposed cigarette-tax hike represented the latest move in an elusive search for new revenue that could grease a budget deal, but it would not be enough on its own to satisfy some demands for spending.

A 75-cent-a-pack increase on cigarettes would place Illinois among the highest in the nation for state tobacco taxes. The move comes on the heels of the success of the anti-smoking advocates who this week saw their longtime push to have a smoking ban in Illinois signed into law.

Sen. John Cullerton (D-Chicago), sponsor of the measure going before the Senate Revenue Committee on Wednesday, said the tax would produce about $304 million a year but provide benefits far beyond dollars.

The Senate Democrats as a caucus are not “pushing” the tax hike yet, as subscribers know. But we could see a vote on this bill in today’s Senate Revenue Committee.

* Speaker Madigan said last weekend on WBBM Radio’s “At Issue” program that he could support a cigarette tax hike to fund healthcare expansions, so the idea is definitely alive and well.

* More from the Trib story…

House Majority Leader Barbara Flynn Currie (D-Chicago) said a cigarette tax increase would find a receptive audience in the House because some lawmakers already are talking about raising cigarette or liquor taxes as a source for more money.

That liquor tax idea has been floating around for several days. When the Legislture is looking for more money in an overtime session, nobody is safe from higher taxation.

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Are consumers getting hosed, or are they just greedy or ignorant of the facts?

Wednesday, Jul 25, 2007 - Posted by Rich Miller

* The reaction to the electric rate deal is pretty interesting. The deal provides substantial relief this year to people, but only as a percentage of their bills. Some see the lowball dollar figures bandied about by Republicans and others and believe they’re getting the shaft

“I think there’s some concerns about it,” House GOP Leader Tom Cross of Oswego said Tuesday. “In some areas, we’re talking about (relief worth) $7 a month. I think people are expecting these great big relief packages, and I don’t think they’re going to happen.”

“It sounds like a lot of money,” he added. “But when you break it down, it’s not that much money.”

* All the hype in the media about the rate hikes helped fuel expectations of big dollar rebates. But, in reality, ComEd’s increases weren’t all that spectacular

But typical ComEd customers saw their power bills increase roughly $15 a month, company officials said. The latest deal would provide $7 monthly credits and customers would get a lump-sum credit of nearly $50 on their September bills to cover January through July.

* It all depends how you look at it. A 50 percent or more reduction in the increase sounds like a lot of cash, and it’s complicated for the mathematically challenged who think this means a 50 percent reduction in their actual rates. This goes to show that people don’t really know how much they’re paying every month…

The result, Ameren Illinois President Scott Cisel said Tuesday, will be electric bills this year that for most customers are higher than last year’s by 10 percent to 30 percent — but are below the 40 percent or 50 percent hike or more that was common in recent months.

* The push for a rate freeze, particularly Downstate, probably raised expectations way too high. And since coverage always follows conflict, the greatest nay-sayers are the ones who will get the most press

State Rep. Bill Black (R-Danville) mocked the relief package, which was crafted by Democrats.

“This isn’t any rate reduction. This isn’t any solid money in their pocket,” Black said.

* And here’s something else that the press isn’t covering. Since the new bill does away with the disastrous and stupid reverse power auction crafted by the goofs at the ICC, consumers will be spared from yet another huge rate hike next year, when the second reverse auction was scheduled to take place.

* All that being said, there are still legit concerns about this proposal, the biggest being that eventually the rates start going back up again and the relief lasts just four years. After that, everybody will be paying what they were paying up until now, unless this Illinois Power Authority can negotiate better rates. I think it might be able to do that, considering how skewed the reverse auction turned out to be. For proof of how bad the auction was, consider that the utilities and Exelon are giving back a billion dollars to the consumers. They had to be pretty flush with cash to afford something like that. Everybody on that Commerce Commisson who voted for the auction should resign in disgrace.

* More details

— The average Ameren customer, who has seen an annual increase of $250 total on electric bills in 2007, will get refunds this year totaling $130.

— A typical Ameren electric-heat customer, who has seen an annual increase of $750 on electric bills in 2007, will get refunds this year totaling $400.

— About three-fourths of the dollar amount of those refunds will come in lump sums by September, to retroactively offset the increases on 2007 monthly bills so far. Ameren will cut checks to customers who are caught up on their bills, and will credit the accounts of those who are 60 days or more late on their bills.

— Remaining rebates for this year — as well as in 2008 and 2009 — will be applied as credits on monthly bills. The future credits will be smaller, with a net result of bills rising by less than 10 percent each year, as the full rate hikes are phased back in.

— The agreement also will set up a new state power agency to oversee the process of how wholesale electricity is bought and priced, a central issue of the controversy this year.

* And finally, much is being made of Exelon’s role in funding the reductions in the rate increases…

Chicago-based utility giant Exelon will pay the overwhelming share of a more than $1 billion rebate plan designed to ensure every household’s power bill goes down this year.

Exelon is the parent company of ComEd but also generates electricity that’s used elsewhere. Under the terms of the deal, Exelon will pony up $747 million and ComEd will contribute $53 million. Downstate energy companies cover the rest.

* But Exelon ain’t exactly hurting

Exelon Corporation’s second quarter 2007 consolidated earnings prepared in accordance with GAAP were $702 million, or $1.03 per diluted share, compared with earnings of $644 million, or $0.95 per diluted share, in the second quarter of 2006.

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Protected: SUBSCRIBERS ONLY - Today’s issue of Capitol Fax (Use all caps in password)

Wednesday, Jul 25, 2007 - Posted by Rich Miller

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Morning Shorts

Wednesday, Jul 25, 2007 - Posted by Paul Richardson

* Russ Stewart’s 7-25-07 newspaper column

* Opinion: More government control not the health-care answer

There’s absolutely no mystery why our greatest complaints are in the arena of government-delivered services and the fewest in market-delivered services. In the market, there are the ruthless forces of profit, loss and bankruptcy that make producers accountable to us. In the arena of government-delivered services, there’s no such accountability. For example, government schools can go for decades delivering low-quality services, and what’s the result? The people who manage it earn higher pay. It’s nearly impossible to fire the incompetents. And taxpayers, who support the service, are given higher tax bills.

* State working on rules for smoking ban

* Expect up to 15,000 at AFL-CIO Democratic presidential forum

* Editorial: A better way for Illinois teens

Diverting troubled teens away from correctional facilities and into programs that address their underlying problems is a compassionate idea — and also a smart one. The average annual cost to house a juvenile offender in an Illinois correctional facility in fiscal year 2005 was $70,827. Even worse, almost half of the teens discharged from a juvenile prison in 2002 returned within three years.

* Improving access adds profits

* More pollution in Lake Michigan irks Blagojevich

* Illinois politicians pressure Indiana governor to yank BP permit

* How safe is Illinois Beach state park?

* Editorial: Law would toughen rules, penalties for sex offenders

* Animal Farm: Henry Hyde heart surgery

* McLean Co. Pundit: Hastert not running

* Next Cook Co. budget fight begins with hope for early finish

* Stroger closer to empowering board inspector

* Watchdog for Cook County corruption OK’d

* Aldermen move to strip Burge of his city pension; more here and here

* U of I to vote on online funds

Chet Gardner, who is leading the online initiative, said Tuesday that he expects U. of I. will need to invest about $13 million into the project before it becomes profitable in 2010.

The virtual campus has had a rocky start, with board action delayed for months and faculty opposition to the initial concept of it operating as a for-profit business. It will instead operate as any other academic unit.

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This just in…

Tuesday, Jul 24, 2007 - Posted by Rich Miller

* 3:58 pm - Yikes. It looks like Assessor Houlihan’s good buddy at PTAB is trying to stir the pot

Illinois Attorney General Lisa Madigan has been asked to rule on whether House Speaker Michael Madigan, her father, has a legal conflict of interest in dealing with a key property-tax cap bill that’s now pending before the General Assembly.

In an official — and politically explosive — letter, the Illinois Property Tax Appeals Board requested that Ms. Madigan issue a formal opinion on whether her father’s second job as a property-tax appeals lawyer disqualifies him from taking a leadership role in a huge ongoing debate over whether to extend or cut an existing 7% annual limit on tax hikes on residential property in Cook County.

Ms. Madigan so far has not responded to the July 3 letter, which comes as the Illinois Senate is preparing to vote on a proposal by Mr. Madigan to effectively phase out the 7% cap for hundreds for thousands of Cook County residents.

A spokesman for Mr. Madigan said his legal clients actually oppose the proposed bill.


* 4:02 pm -
No leaders meeting today. I just hope those Chicago-area ministers who were promised an invite by the guv’s chief of staff didn’t bother sticking around.

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Caption Contest!

Tuesday, Jul 24, 2007 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Health insurance bill; McPier; CTA; Fritchey; Chapa LaVia (Use all caps in password)

Tuesday, Jul 24, 2007 - Posted by Rich Miller

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Question of the day

Tuesday, Jul 24, 2007 - Posted by Rich Miller

What, in your opinion, is the most corrupt institution in Illinois? It doesn’t have to be a political or governmental entity, either. Explain, but try to leave personal names out of it, please. Thanks.

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Tax and spend

Tuesday, Jul 24, 2007 - Posted by Rich Miller

* Last week, the Illinois Press Association sent out an urgent alert to its newspaper publisher members warning them that the governor was pushing a $42 million “newsprint tax” as one of his ideas for closing corporate loopholes. Newsprint is not currently taxed, and neither is ink or advertising. The IPA also included Sen. Bill Brady’s press release about the loophole ideas.

“The Governor seems to be addicted to the idea of these stealth tax increases on Illinois citizens – first a multi-billion dollar gross receipts tax that was soundly rejected by Republicans and Democrats, and now nearly another billion dollars in corporate tax increases that will harm every area of Illinois,” Brady wrote.

Yesterday, the Pantagraph penned a scathing editorial about the loophole ideas…

Illinois’ business climate already has a bad reputation. Gov. Rod Blagojevich isn’t helping matters with his hit list of “loopholes” he wants to close.

Don’t be fooled by any claims that he is going after “big business.” The impact of the governor’s proposal — if approved in its entirety — would go far beyond what most would consider “big business.”

The impact will be felt by costs being passed along to consumers.

The impact will be felt by small businesses for the work they do collecting taxes for the state.

The impact will be felt by businesses postponing or canceling purchases in Illinois.

The impact will be felt by jobs being eliminated or expansion being scaled back.

The impact would also be felt by newspapers, but that was never mentioned, of course. Instead, a whole host of other industries were discussed.

* Meanwhile, Sneed walks back her story from last week…

As per Sneed’s tip last week, will House Speaker Michael Madigan proceed today to pull off the legislative coup of the decade?

Budget analysts are poised to see whether Madigan has a deal to pass a budget acceptable to the House and Senate, and has mustered enough votes to pass a veto-proof package.

It ain’t gonna happen today. There may be some progress, but don’t expect a sudden coup.

* And Bethany Carson has a ministerial roundup

“We’ve had the governor to our churches on several occasions, singing, what’s his favorite song, ‘Precious Lord, take my hand,’” Rev. Roosevelt Watkins of Bethlehem Star Church in Chicago said. “I think that if there’s no budget, absolutely, he’ll get a different reception. Not only him, but we’ll have Emil Jones, who we have a lot of lines with. All of them, they all will get a different reception.”

* More end of session stuff from Paul…

* AFSCME: Another 1-month budget measure needed

* Chicago Public Radio: state budget still deadlocked

* Editorial: Health care downsized

* Opinion: It’s health insurance premium day

* Ministers march on Capitol to call for more school funds

* Ministers seek more money for education

  11 Comments      


Hot rhetoric, but the bill will probably pass anyway

Tuesday, Jul 24, 2007 - Posted by Rich Miller

* 49 aldermen signed a letter criticizing House Speaker Michael Madigan’s property tax assessment cap legislation. And Mayor Daley, who until now has said he supported Madigan’s plan, was giving off conflicting signals yesterday afternoon.

The Tribune

Mayor Richard Daley has signed on to the House version because he wants to ensure “we can provide our residents with good relief as opposed to nothing,” spokeswoman Jodi Kawada said.

The Sun-Times

Deputy mayoral press secretary Jodi Kawada said Daley signed on to Madigan’s plan only after Houlihan’s version was overwhelmingly defeated.

But…

Now that the General Assembly is in overtime, a super-majority vote is an even longer-shot, [Kowada] said.

“The reality of this legislative session is that we are at risk of ending up with no relief for homeowners,” she said.

* 49 aldermen don’t sign something unless the mayor is quietly encouraging it. But despite the hot rhetoric…

Chicago homeowners could see their property tax bills rise by 40 percent over the next three years if the Illinois General Assembly follows House Speaker Michael Madigan’s lead and phases out a 7 percent cap on annual assessment increases, a dozen aldermen warned Monday.

“They’re really going to get clobbered in years two and three. . . . People are going to be forced out of our neighborhoods — and God knows where they’re going to end up,” said Ald. Eugene Schulter (47th).

…It’s likely to pass and be signed into law…

A key Senate sponsor said Monday that lawmakers would compromise in favor of a bill pushed by House Speaker Michael Madigan of Chicago, even as a group of Chicago aldermen complained it was not good enough. […]

Gov. Rod Blagojevich shares the aldermen’s concerns and hopes lawmakers will amend the bill, but it’s unlikely he would veto the House version if that’s what lands on his desk, spokeswoman Abby Ottenhoff said.

Sen. Terry Link (D-Waukegan), the chief sponsor of the Senate version, said he expects the Senate will approve the exemption provisions passed by the House. But he said the bill will include a requirement for a review next year to possibly increase the exemption for 2008 and 2009.

* And Assessor Houlihan, who’s been leading the fight against Madigan’s bill, took a whack at Madigan and his alderman yesterday, the only one who didn’t sign the letter…

Cook County Assessor Jim Houlihan called out Ald. Frank Olivo (13th) in a news release Monday. Houlihan said Olivo is only supporting the pending property tax relief bill because of his close ties to Illinois House Speaker Mike Madigan, who is pushing the bill.

“We’re just pointing out that 49 out of 50 aldermen sign it and the one alderman that doesn’t is Madigan’s,” said Houlihan spokesman Lucio Guerrero. “And (Madigan) has been consistently against long-term relief for homeowners.”

Thoughts?

  20 Comments      


Rate relief deal praised, panned, analyzed *** Updated x1 ***

Tuesday, Jul 24, 2007 - Posted by Rich Miller

*** UPDATE - 2:28 pm *** Rep. Art Turner just announced that the House will vote on the electric rate bill on Thursday. The bill isn’t even drafted yet. Committee hearing tomorrow.

————————————————————————

* Phil Kadner takes a close look at the electric rate deal and likes most of what he sees. Here’s one example…

The attorney general insisted on the creation of a new government body, the Illinois Power Agency, which will negotiate the price of electricity in the future with generating companies.

This agency also will have the authority to create state-owned power plants in the future. The reverse auction, which occurred last year and created the huge spike in electric rates, is dead. Instead, the Illinois Power Agency would have the ability to solicit sealed bids for power and then negotiate for an even lower price than the lowest bid if it chooses, according to Lisa Madigan’s office.

“What this means is that ComEd would no longer be accepting bids from its parent company, Exelon, to purchase power, which I think is a very good idea,” Scully said.

Will the Illinois Power Agency have greater credibility than the Illinois Commerce Commission, which regulates the electric utility industry? The attorney general’s office claims that conflict-of-interest measures and other oversights built into the legislation will make it less likely that the power authority would be compromised. In addition, its scope will be limited to soliciting bids for electricity and operating power plants.

* The Daily Herald has some legislative reaction, pro and con…

For many lawmakers, however, this proposal was the first sign of progress in months for what has been a contentious issue.

“I’m extremely pleased that we were able to provide assistance and actually a long-term plan for purchasing electricity, hopefully at a lower, more reasonable rate. I think this is good news for every customer in Illinois,” said state Sen. Susan Garrett, a Lake Forest Democrat.

But many lawmakers remain wary of any power deal until its on their desks ready for a vote.

State Sen. John Millner, a Carol Stream Republican, questioned if ComEd wasn’t paying too much toward a pool of money that’s ultimately go to downstate Ameren customers.

Actually, that money is coming from Exelon, and Chicago-area legislators now have something they can hold over their Downstate colleagues (think mass transit).

* More from the Daily Herald…

However, if this deal holds, it could clear the way for resolution of numerous other issues, most notably the state budget, which remains stalled. A temporary budget approved last month to keep the state open expires at the end of this month. If there’s not another short-term budget, or a full year budget by then, it would threaten state support of local schools in addition to shuttering state offices and parks.

Downstate lawmakers previously held up other budget plans, saying they’d block any such spending until action was taken on electric rates. One of the leading downstate Democrats on the issue said Monday that he’d not relent until the House and Senate had approved a power bill relief plan.

* Consumers remain skeptical

Like other consumers interviewed by the Sun-Times, Chicago retiree Sheldon Landy was skeptical the deal provided enough relief.

The former railroad executive, who is 76, also said he was soured by Jones’ insistence that consumers should not be granted a rate freeze because of its ramifications on ComEd’s bottom line.

“His constituents probably can ill afford any kind of increase, and yet his main concern throughout all of this was ComEd going bankrupt. That was pure nonsense,” Landy said. “If Commonwealth Edison and their counterpart Downstate were willing to give up $1 billion, that’s just a start.”

* But there was a different mood in New York…

Shares of ComEd’s parent company, Exelon Corp., rose by almost 2 percent Monday, closing at $80.37.

* The bill hasn’t been filed yet, but when it does, it will probably be attached to this piece of legislation.

* More rate stories, compiled by Paul…

* Rate relief deal could help end budget impasse

* Rate relief package outlined, Madigan & Jones predict passage

* Utility rate relief: refunds, rate cuts, reform

* Democrat’s power bill could roll back 45% of rate increase

* Leaders pull off $1 billion rate deal

* Rate relief a reasonable outcome

Thoughts?

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Protected: SUBSCRIBERS ONLY - Today’s issue of Capitol Fax (Use all caps in password)

Tuesday, Jul 24, 2007 - Posted by Rich Miller

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Morning Shorts

Tuesday, Jul 24, 2007 - Posted by Paul Richardson

* Lawmakers continue to push smoking exemptions for casinos

* Governor signs smoking ban bill

* No public puffing? Now it’s personal

* Smoking ban going statewide

* Illinois bans smoking in public

* State posts no smoking sign

* Richard Roeper: Shocking that smoking ban is still needed

* Editorial: Statewide smoking ban will save lives

* Report says disparity persists in Illinois traffic stops

* Tribune Editorial: No more driving drunk

This spring, the legislature approved a bill to require interlock devices for all DUI offenders. The bill, which awaits Gov. Rod Blagojevich’s signature, would issue all convicted drunken drivers, including first-time offenders, restricted licenses to drive only vehicles equipped with the devices. If offenders refused to install interlock devices, their licenses would be suspended and all driving privileges would be revoked.

* Sun-Times Editorial: Chicago State University president should resign

* State may limit teachers’ ability to strike

Strikes are illegal in New York City, Philadelphia, Boston and Miami. Just 15 states allow strikes, and when they do, they often require a cooling off, “fact-finding” process first. This requires an independent party to evaluate the issues and recommend a contract settlement. After that, teachers can strike.

This is what business leaders want for Illinois. The influential Civic Committee of the Commercial Club of Chicago, with the backing of Chicago school officials, floated the idea in May. Legislators are now mulling it over.

* Gaming board OKs plan to move Rock Island casino inland

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Protected: SUBSCRIBERS ONLY - Audio and photos from today’s protest (Use all caps in password)

Monday, Jul 23, 2007 - Posted by Rich Miller

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This just in… *** Important updates in “red” *** Details released on rate agreement *** Ministers arrive at Statehouse *** Protest a dud ***

Monday, Jul 23, 2007 - Posted by Rich Miller

* 10:50 am - Remember this story about how a group of ministers planned to come to the Statehouse today and take over the House chambers?

More than 100 religious leaders from the Chicago area are threatening to take over the Illinois legislature if lawmakers fail to pass a state budget in the next week. The potential protestors say they will storm the capitol and occupy every seat in the Illinois House. […]

[The ministers] threatened to take over the Illinois House in Springfield next Monday, sit in the lawmakers chairs and vote on a symbolic budget with more money for education, health care and mass transit if Governor Blagojevich and the other elected officials can’t agree on a real budget by then.

Well, they’re on their way

Gov. Blagojevich and state lawmakers are going to get an earful today from dozens of Chicago ministers who are traveling to Springfield on their own budget mission. […]

The ministers gathered outside Fellowship Missionary Baptist Church on 45th and Princeton and boarded four tour buses. They rolled out about 7:15 this morning.

Paul is headed to the Statehouse now. Check back for updates.

* 11:00 am - Paul reports that security seems to be heightened outside the House chambers. A half dozen or so guards are present. The ministers haven’t yet arrived.

* 11:26 am - Some details of the new electric rate agreement were announced today. Here’s the press release from Jones, Madigan and Madigan. And here’s a one-page explanation of the package.

* 11:59 am - The rate details are also posted in pdf format at the House Democrats’ website.

* 12:39 pm - The ministers aren’t at the Statehouse yet, so while you’re waiting, House Speaker Michael Madigan’s appearance on WBBM Radio’s “At Issue” program can be heard here.

* 12:50 pm - The ministers have finally arrived. Stay tuned.

* 1:13 pm - The ministers have broken up into smaller groups and some are meeting with individual legislators. A couple of dozen are in front of Speaker Madigan’s office, just milling about.

* 1:17 pm - The ministers are planning a press conference in the Blue Room in 20 minutes or so. Any action on the House will come after that - if at all. Paul reports that they don’t seem to be very organized.

* 1:24 pm -Krol has the round-up of the governor’s media availability after he signed the smoking ban bill…

On the prospect of a budget deal: more of the same, he’s “cautiously optimistic” something will happen in the next week. No specifics. […]

Were you invited on the electric rate fly-around? Ask the staff, although he knew he was signing the smoking ban today.

What if no budget by the end of the month? It “makes no sense to have it quick and fast” if budget shortchanges education and health care. […]

Given the focus on public policy today (electric rates, smoking ban, budget, tax increase), one reporter just pointed out that no one asked about Blagojevich’s $600 make-up job.

* 1:34 pm - The ministers’ press conference is beginning. We’ll let you know their plans, if any, as soon as they say something. It would be nice if we could get the Blue Room feed put on the Intertubes.

* 1:36 pm - No leaders meeting today.

* 1:45 pm - The one alderman who sided with Madigan was The Speaker’s own Frank Olivo…

The Chicago City Council is jumping into a bitter Springfield political war over property taxes, siding with Cook County Assessor Jim Houlihan and Illinois Senate President Emil Jones against Speaker Michael Madigan and Mayor Richard M. Daley on the question of how much tax relief should be offered to whom.

At a Monday morning press conference, aldermen released a letter signed by 49 of the 50 council members alleging that tens of thousands of homeowners in their wards will suffer under the “weak” relief plan being pushed by Mr. Madigan. The speaker’s bill “is nothing more than a disingenuous attempt at property tax relief and will result in most homeowners seeing increases as great as 40%” the letter states.

But a spokesman for the speaker suggested that the aldermen “are not fully aware of the facts” and that “rich people” do not need property tax relief.

* 2:08 pm - The ministers said they were planning to enter both chambers. First target is the House. Four security guards are in front of the House, four in front of the Senate. Three guards on the second floor.

* 2:10 pm - The ministers asked to enter the House floor, and were denied. They’re now praying.

* 2:12 pm - Apparently, the ministers have abandoned plans to enter the House floor, and are now walking across the hall, singing loudly, and heading for the Senate.

* 2:15 pm - Rejected entrance to the Senate floor, the ministers have begun praying again.

* 2:17 pm - The ministers are now heading downstairs to the governor’s office. Some have bristled at the implication that they are acting as an agent of Blagojevich today.

* 2:18 pm - Four security guards are in front of the main entrance to the governor’s office. Loud singing now as some are marching arm in arm towards the guards.

* 2:20 pm - Predictably, the ministers were once again denied entrance.

* 2:22 pm - The governor’s chief of staff has now emerged to shake hands and talk with the protesters. He invited as many as can fit into his office to talk to them.

* 2:25 pm - The chief of staff went back into his office without any of the ministers. He invited the ministers to tomorrow’s leaders meeting.

* 2:30 pm - A small group of ministers will reportedly meet with CoS John Harris soon. The rest are heading back to the busses. So, it looks like the fun is over. No civil disobedience, no real controversy. Just a loud, relatively small protest (the crowd shrank every time they were denied access, apparently).

If you say you’re gonna take over the House, then walk away meekly without argument or resistance, what’s the point?

* 2:56 pm -
Press release from Henry Bayer, executive director of the American Federation of State, County and Municipal Employees (AFSCME) Council 31…

[I]f a full-year budget cannot be agreed upon and passed in the very near future, another one-month budget must be approved,” Bayer concluded. “State employees and the citizens who rely on their services should not be held hostage to the ongoing budget impasse. Under no circumstances should that impasse be allowed to shut down state government.”


* 3:00 pm -
WDWS’ podcast this week is State Senator Bill Brady, who “discusses who’s to blame for the state budget impasse and his political future.” Click here to listen to the audio from the WDWS site.

* 3:59 pm -
Pay particular attention to the last line in this AP story…

Dozens of Chicago ministers visited the Capitol to demand that state officials stop squabbling and pass a budget that gives more money to schools.

The ministers stopped short of calling for a tax increase. But they say the governor and lawmakers must find ways of pumping more money into the state treasury. […]

The Reverend Marshall Hatch says it’s time for officials to “grow up and be responsible.”

Governor Rod Blagojevich’s call for a major new health care program has been a key sticking point. The ministers say that’s important but shouldn’t hold up education funding.

I’ll have more on this in tomorrow’s Capitol Fax.

  90 Comments      


Question of the day

Monday, Jul 23, 2007 - Posted by Rich Miller

First, the setup

The Illinois Republican Party’s top brass came to visit at a town hall meeting last week, only to be peppered with questions about the uncertain future for the fractured party.

A lot of older faces and a few younger ones greeted their party leaders with questions on all sorts of topics — the budget, medical malpractice, tort reform, elections, voter turnout, taxes, and more. In a nondescript room Thursday at the Gateway Convention Center, Illinois GOP Chairman Andy McKenna and state Sen. Frank Watson, the minority leader and Greenville Republican, and other area officials were grilled over the party’s performance in past elections.

“We recognize we’ve not done well in recent years,” McKenna said after the meeting. “We admit that.”

No one needed reminding that in 2002 the GOP gave up the governor’s mansion after a generation and that former Gov. George Ryan was indicted on corruption charges a year later. In 2004, Jack Ryan, the Republican candidate for U.S. Senate, bowed out early amid a divorce scandal; his replacement, ultraconservative Alan Keyes was trounced. And 2006, when Republicans finally lost every statewide office, “was a great disappointment,” McKenna said.

But McKenna and others see a new opportunity, one they are desperate to seize. With a gleam in his eye, McKenna talks about the infighting and bickering among Democrats in Springfield.


Now, the question
: Can the Republican Party be salvaged in Illinois? More importantly: How?

Adding… The article also claims that the state Republican Party is now supporting a statewide referendum asking whether voters want gay marriage banned. So, here’s a late bonus question: Is that wise?

  86 Comments      


The confusing mess continues

Monday, Jul 23, 2007 - Posted by Rich Miller

* My syndicated column this week takes a look at a curious event that happened last week…

So what the heck was House Speaker Michael Madigan up to last week when he finally came out in support of an income tax increase and urged the governor to drop his opposition to the idea?

Madigan has always been coy about whether he really supports an income tax hike. Most people thought he probably did and that he might somehow be maneuvering the legislative session in that direction. So when he finally announced that he supported the increase, the whole Statehouse took notice.

On one level, it was a response to a letter sent by Gov. Rod Blagojevich earlier in the week demanding that Madigan and the two Republican legislative leaders come up with an alternative revenue stream to fund education. It also was undoubtedly designed to get tongues wagging and freak out the governor, a staunch opponent of a tax hike.

It certainly did both of those. While the Statehouse buzzed with talk of Madigan’s remarks, Gov. Blagojevich reportedly ranted about the income tax idea during a meeting of the legislative leaders, loudly taunting Madigan and others who attended, “Go ahead and pass it,” over and over again. Blagojevich was concerned enough about earlier revelations that Jones and Madigan had been privately talking about the budget and about Jones’ agreement during that days’ leaders meeting that he would work with Madigan to craft a new budget that he kept Jones in his office for several minutes after the other leaders had left.

Please read the whole thing before commenting. Thanks.

* Meanwhile, Team Blagojevich managed to tick off a US Senator

He released a letter Friday signed by seven members of the U.S. Congress declaring, “It is important that the General Assembly … provide coverage for the working uninsured.”

When CBS 2 told Sen. Dick Durbin his apparent signature was on it, he was surprised.

“Well, that’s a very good question,” Durbin said. “When did we send the letter?”

Durbin said he was confused because the letter was not what the governor’s staff claimed in a press release. Durbin said he was endorsing expanded health care, but not the Blagojevich proposal.

“Well, I think some people either misread what I sent to them, or tried to take advantage of the moment,” Durbin said. “I think the people in Illinois are just fed up with this bickering that has gone on for so darn long.”

* Finke had this interesting tidbit. Senate President Jones, as you may know, is taking all the credit for the electric rate agreement and is participating in a fly-around today to tout the deal with Speaker Madigan and Attorney General Madigan..

Senate President EMIL JONES, D-Chicago, was asked last week if he regretted the way he dealt with an electric rate freeze bill sponsored by Sen. GARY FORBY, D-Benton.
If you remember back a few weeks, the Senate approved the bill, which would have rolled back electric rates to last year’s levels and then frozen them. However, Sen. RICKEY HENDON, D-Chicago, a top Jones lieutenant, used a parliamentary maneuver to nullify the vote, leaving Forby stunned. Jones last week implied he wasn’t involved.

“I’m just the presiding officer,” Jones said.

Um, yeah, and House Speaker MICHAEL MADIGAN, D-Chicago, is just a state representative from Chicago.

* More overtime stories, compiled by Paul and myself…

* What if there’s no budget by August? - State probably would have to set strict priorities

* Legislators rework health-care proposal - New plan would be funded by employer tax

* Pantagraph: Although there is still no budget, not everyone left the Statehouse empty-handed. Blagojevich, a big fan of Elvis Presley, exited the building Friday holding a couple of PEZ candy dispensers of the King.

* * Tribune Editorial: Is there will to help schools?

* Still time before Aug. 1st budget meltdown

* Bernie Schoenburg: Governor’s jogging route takes him past hostile signs

* Settlement will cut rate hike nearly in half

  10 Comments      


The fine print

Monday, Jul 23, 2007 - Posted by Rich Miller

* Campaign contribution stories are almost always uniformly negative. For instance

With no statewide elections to fund this year, Illinois campaign contributors nonetheless managed to donate, loan and transfer more than $54 million worth of political money in the first six months of 2007, according to newly filed records.

As usual, industries with high-stakes policy fights pending before the Legislature were among those pumping money into the state’s no-limit political contribution system, according to campaign disclosure reports that were required to be filed by midnight Friday.

Between Jan. 1 and June 30, the records show: […]

Ameren and ComEd utilities, currently close to a deal with legislators that will prevent an electric rate freeze, contributed more than $100,000 to those same legislators as the talks were progressing, including thousands of dollars individually to key legislative negotiators.

Not noted anywhere in the story was that several legislators refused to cash their ComEd checks. According to ComEd’s latest political action committee filing, a dozen legislators never cashed their ComEd PAC checks, for a total of $28,700. One would think that might be considered news. But that would be “good” news, so you probably won’t see it anywhere.

And, here’s something odd. Last week, Lee Newspapers reported this

…utility records show ComEd gave state Rep. John Bradley, D-Marion, and state Sen. Gary Forby, D-Benton, $300 each.

But those contributions don’t show up on ComEd’s PAC report or on either of the two legislators’ disclosure reports. Strange, that.

Also, Exelon and ComEd have always maintained that they are two distinct entities, but Exelon contributed well over half the money that ComEd’s PAC raised during the filing period.

ComEd, through its PR front group CORE, spent way more on advertising this year than it gave to political campaigns. No mention of that anywhere.

* Also, the Illinois Campaign for Political Reform is trying to paint a falsely ominous portrait of Act Blue, a national pass-through PAC which allows Internet users to contribute to Democratic campaigns online. The users themselves (not Act Blue) completely direct their own contributions to individual candidates or committees, but this is how ICPR described the PAC…

It looks like it’s taking a page from U.S. Senator Barack Obama and others who have focused on Internet fundraising on a national scale; but this one seeks to funnel that money into state legislative races.

All ICPR had to do was go to the group’s directory and see that people can choose which state to focus on, and then contribute to any Democratic candidate in those states. And it’s not just legislative candidates, it’s all candidates for every state office, plus Congressional offices and presidential.

* Related stories, compiled by Paul…

* Campaign finance reports reveal politicians interests

* Blagojevich campaign fund pays $1.1 million to law firm

* Exchanges good to Daley, but they don’t need his help

* Tribune: Service Employees International Union, gave more than $2.7 million in campaign cash and services to council candidates, records show.

  12 Comments      


Morning Shorts

Monday, Jul 23, 2007 - Posted by Paul Richardson

* Provena wins ruling to restore tax-exempt status

* Business groups praise former lawsuit haven Madison County

* Editorial: Timing of alleged scheme from Ryan’s term quite galling

* Governor expected to sign state smoking ban bill on Monday

* Editorial: BP’s lake dumping plan unacceptable

* Chicago Public Radio: BP dumping fight heads to Congress

* Dropouts could lose licenses

Under the measure, students who have more than 18 unexcused absences, are expelled or drop out, can have their licenses revoked until they turn 18. The licenses and learner’s permits can be reinstated if the students return to school. Students in Illinois must attend school until they are 17.

* Traffic stops study raises questions

* PrairieStateBlue: Illinois Dems, Gov, scrutinized at Green national meeting

* Failure to read fine print costs county $330K

* Exchanges hike Daley donations

* Opinion: As city gentrified, black professionals squeezed in the middle

  13 Comments      


« NEWER POSTS PREVIOUS POSTS »
* Rep. Canty says she is ‘disturbed’ by LIG’s conduct
* Illinois becomes 19th state to beat back DOJ on voter database seizure attempt
* Reader comments closed for the weekend
* Isabel’s afternoon roundup
* Rep. Kelly Cassidy: Speaker Welch has issued a 'series of excuses, victim blaming, and a failure to publicly acknowledge shortcomings'
* LIG initially recommended no expulsion proceeding against Benton - One complainant claimed 'inaccuracies' in the report
* Speaker Welch statement (Updated x2 with Pritzker statement)
* LIG report released
* Legislative Ethics Commission still fine-tuning Benton report (Updated)
* Pritzker says he looks forward to seeing Welch's CPS funding plan
* Sean Grayson denied early medical release from prison
* Turning Promise Into Progress For Illinois Students
* Color me highly doubtful
* Governor Pritzker, Fight For Us.
* Today's must-read
* Isabel’s morning briefing
* Good morning!
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