* I told subscribers about this development earlier today…
Gov. Bruce Rauner’s office has instructed state agencies to begin diverting “fair share” fees from nonunion members’ paychecks away from unions.
A memo obtained by The Associated Press directs departments to create two sets of books to do it. […]
The money now will go to agency accounts rather than unions. The American Federation of State, County and Municipal Employees union calls it a “legally questionable scheme.”
Rauner spokeswoman Catherine Kelly says the administration is “confident in the process laid out.”
The governor issued the executive order to seize the fair share fees more than two months ago.
Unless the AP or another outlet fleshes this out a bit, you’ll have to subscribe to learn more.
*** UPDATE *** The AP has now posted a longer story. From that piece…
The [Rauner legal] memo said Republican Comptroller Leslie Munger, who earlier refused to go along with Rauner’s proposed escrow account, “provided the method” for the plan, which a Munger spokesman said is not correct.
These guys are really something else.
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Senate overwhelmingly backs Meeks appointment
Thursday, Mar 19, 2015 - Posted by Rich Miller
* Just one Senator voted against the confirmation of former state Sen. James Meeks today. Equality Illinois isn’t happy…
Equality Illinois today denounced Rev. James Meeks’ confirmation as Chair of the Illinois State Board of Education, expressing frustration at his refusal to repudiate his discriminatory positions prior to his confirmation by the Illinois Senate.
Meeks has a long record of making hateful public comments about the LGBT community, and his active attempts to deny our families the freedom to marry are well known, as are his demeaning comments about women and members of the Latino, Asian and Jewish communities.
“We had hoped and expected Rev. Meeks to use the more than two months since his appointment to reflect on and make amends with the LGBT community and other groups for his hurtful and destructive actions,” said Bernard Cherkasov, CEO of Equality Illinois, the state’s oldest and largest advocacy organization representing lesbian, gay, bisexual and transgender Illinoisans.
“Instead, we’ve seen nothing tangible from him. We are obligated by our responsibility to LGBT Illinoisans, the other groups whom he offended and our allies to denounce his statements and his unwillingness and refusal to recognize them for the hate language that they are.
“Without a pledge from Meeks that he would abide by the state’s nondiscrimination and anti-bullying laws or a commitment to affirmatively challenge discriminatory actions in the schools, we are not assured that he will look out for all of Illinois’ school children,” Cherkasov said. “It is now up to the Rauner Administration, the General Assembly and the other members of the State Board of Education to ensure that Meeks’ wrong-headed views about the diversity of Illinois do not seep into education policy. Equality Illinois and our partners will remain vigilant, and we will work with our allies to ensure equal treatment for all Illinoisans.”
Thoughts?
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Utilitypalooza!
Thursday, Mar 19, 2015 - Posted by Rich Miller
* AT&T has a big Telecom Act rewrite in the hopper, Exelon has its hands out to keep its nuke plants open, the alt energy folks have a bill and now ComEd is getting into the act…
ComEd’s bill, to be introduced by Sen. Kimberly Lightford, D-Maywood, and Rep. Bob Rita, D-Blue Island, is designed to foster growth in clean energy like solar power for households and micro-grids providing greater reliability and resiliency to sensitive facilities like the Federal Aviation Administration’s air-traffic control center in Aurora.
ComEd also proposes a $100 million program to build 5,000 Chicago-area charging stations to increase demand for electric vehicles.
The bill would boost ComEd’s bottom line in the future as decreased customer demand for power hits its revenues by permitting the utility to profit on its state-authorized energy efficiency program. Currently, ComEd only charges ratepayers to reimburse it for its costs in running the program. […]
In addition, the bill would overhaul how ComEd’s power-delivery rates are set. Currently, customers pay delivery rates mainly based on how much power they consume in a month. Beginning in 2018, they would pay based on how much electricity they consume during the highest-demand days of the year. Some customers would benefit and some would pay more under the new system, but ComEd hasn’t yet determined how it would affect individual types of households. But it would help ComEd by making its cash flow more predictable, executives said.
As Dave Kolata at Cub said, that’s a whole lot of asks.
* From the Environmental Law & Policy Center…
“Illinois consumers are poised to gain the job creation, environmental quality and economic benefits of competing new clean energy technologies and suppliers.
“Unfortunately, Exelon’s and ComEd’s legislative proposals would raise utility bills for most consumers, create barriers to competition, and constrain energy efficiency and diverse solar energy development for the future. ComEd’s legislative proposal forecloses flexibility that Illinois needs to transition to a cleaner energy future and locks out competitors.”
“The Illinois Clean Jobs Bill brings Illinois into a more positive energy future. Illinois policymakers should move forward promoting new innovative technologies, instead of Exelon’s and ComEd’s old monopoly approach that raises consumer’s electricity bills and imposes regulatory barriers that create more problems than positive solutions.”
* From ComEd’s lengthy press release…
The legislative package features a proposal to construct microgrids, which are small power grids that can connect to the main grid or operate independently, reinforcing reliability and resiliency during extreme weather or other events. HB3328/SB1879 would enable ComEd to invest $300 million in six microgrids that will service public facilities and infrastructure that are integral to healthcare, homeland security, transportation and water services. The microgrid program would also create at least 300 full-time equivalent jobs. […]
While current Illinois law allows homeowners to generate their own solar power and sell excess power back to the grid, apartment dwellers and others without suitable space or those who can’t afford the investment cannot enjoy the benefits of owning renewable generation. ComEd’s legislative proposal would expand access to solar power to all types of homeowners from all income levels by encouraging development of community solar projects. It would require utilities to offer Meter Aggregation, which makes use of digital smart meter technology to create a “pool” of community-based solar power that can be shared by multiple customers. To ensure the equitable sharing of grid costs, utilities would recover residential delivery costs through a combination of charges, including a demand charge, that better reflect how the grid is used and makes sure low-income customers aren’t subsidizing those who can more easily afford solar energy and other new grid uses.
Etc.
* The problem for all these bills is that the legislative system is very top-down. Leaders and staff can only do so much, and they aren’t willing to farm out important stuff like these to committee chairmen. And since the budget crisis will consume much of their time, they’re going to be spread pretty thin.
But, hey, who knows? Exelon doesn’t have anywhere near the political juice possessed by ComEd, so its alt energy ideas might start winning the day over the other one currently on the table.
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AFP going “aggressive” this spring
Thursday, Mar 19, 2015 - Posted by Rich Miller
* Riopell…
Americans for Prosperity, a national conservative organization with an Illinois arm, plans an “aggressive” advertising and mail push this spring to try to influence suburban Democrats, in particular.
Illinois Director David From says the campaign will likely focus on budget and tax issues largely in support of Republican Gov. Bruce Rauner’s proposals. The ads likely will urge voters to contact their representatives to push those views.
“We want to really be kind of aggressive,” From said. […]
The effort will be statewide, but From said he thinks about 75 percent of resources will focus on the Chicago area. That’s because the suburbs are home to the state’s largest number of swing legislative districts, where Republicans need to make inroads in 2016 if they want to cut Democrats’ majorities in Springfield.
We’ll see how aggressive they get, but keep in mind that Gov. Rauner won a lot of suburban and Downstate Democratic districts last year.
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Real Costs
Thursday, Mar 19, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Recently, ads on Capitol Fax have distorted the facts about the Illinois Low Carbon Portfolio Standard (LCPS) (HB 3293/SB 1585). Let’s set the record straight.
Myth: “This LCPS will cost consumers $1.5 billion over five years. Just let the plants close.”
Fact: The cost to Illinois consumers will be TWELVE TIMES as expensive if Illinois’ nuclear plants close.
The closure of three of Illinois’ six nuclear facilities could cost the state:
• $1.8 billion every year in lost economic activity
• Nearly 8,000 highly skilled jobs.
• More than $300 million every year in higher energy costs statewide
• $1.1 billion per year due to increases in carbon and other pollutants
• Hundreds of millions of dollars to construct new transmission lines
Illinois consumers and communities cannot afford these catastrophic losses and added costs. The Illinois Low Carbon Portfolio Standard (HB 3293 / SB 1585) is a market-based “all of the above” energy plan for our state that would help preserve Illinois’ nuclear facilities.
Illinois nuclear energy facilities are essential low-carbon, economic engines for our state, providing the following benefits:
• 90 percent of Illinois’ carbon free power
• 28,000 jobs across the state (directly and indirectly)
• Nearly $9 billion into the Illinois economy annually
The Low Carbon Portfolio Standard is good for Illinois consumers, our economy and our environment. Members of the Illinois General Assembly:
VOTE YES ON HB 3293 / SB 1585
Learn more at www.NuclearPowersIllinois.com
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Editorial: “Don’t fall for Exelon bailout”
Thursday, Mar 19, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Editorial boards are sounding the alarm about the Exelon bailout bill.
Crain’s Chicago Business: “THIS ‘MARKET SOLUTION’ ONLY BENEFITS EXELON”
You know you’ve got a good thing going when profitability is only a bailout away…
Bailouts for profitable enterprises? That’s not the kind of juice that ratepayers should be shelling out for.
Chicago Sun-Times: “EXELON MUST MAKE CASE FOR BAILOUT”
Not so long ago, Exelon…was extolling the merits of an open market for power as its profits rolled in. Now, with power prices plunging, Exelon has lost enthusiasm for the open markets it championed in the 1990s and wants the Legislature to devise a new formula that will protect its profits, quite likely driving up utility bills for homeowners and businesses.
If Exelon is hard up, they can show us. The company should open its books to show how its nuclear fleet is performing.
What’s good for Exelon doesn’t much matter if it’s bad for the rest of Illinois.
Belleville News Democrat: “DON’T FALL FOR EXELON BAILOUT”
Good old Exelon. The company has come up with legislation to subsidize its nuclear reactors, get electric users throughout the state to pay for it and claim it’s in the interest of clean energy.
State lawmakers need to see this bill for the dirty trick it is and kill it.
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Question of the day
Thursday, Mar 19, 2015 - Posted by Rich Miller
* I stopped by House Speaker Michael Madigan spokesman Steve Brown’s office yesterday and he asked if I would promote his annual SIU sports party, which has been renamed to honor the late Gene Callahan…
I wasn’t sure if I could, but said I’d think about it.
* We changed the subject to Aaron Schock’s political demise. Brown related a funny story about how he’d approached Sen. Darin LaHood in the Rotunda and told the congressional hopeful that he also lived in Schock’s district, has voted Republican in the last two primaries (there are no Dems to vote for in his local primaries) so he was thinking about running - as a Republican.
What did LaHood do? I asked.
He got a funny look on his face.
* And then a friend of Brownie’s, former House staffer and current lobster extraordinaire Liz Brown, sent me this today…
They’re not really cousins, but it’s a funny inside joke.
* The Question: Are you down for Brown? Take the poll and then explain your answer in comments, please.
survey hosting
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Ask the Insurance Industry “Where’s the money?”
Thursday, Mar 19, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Two recent studies published by NPR/Pro Publica and the federal Occupational Safety and Health Administration (OSHA) show that nationwide, insurance companies have kept any cost savings from recent workers’ compensation “reforms” for themselves, with profits climbing to 18 percent in 2013 – while middle and lower-income families and taxpayers are paying the price.
In 2011 Illinois enacted its own workers’ compensation “reform” package aimed at lowering costs for businesses. Workers gave up longstanding rights and in return, insurance companies were to be transparent with pricing and pass savings along to employers. As it turns out, only the workers kept up their end of the bargain.
The National Council on Compensation Insurance (NCCI) is an independent, non-partisan agency comprised of insurance professionals licensed by the Illinois Department of Insurance to assess workers’ compensation in Illinois and make premium rate recommendations to insurers. Since 2011, NCCI has recommended insurance premium reductions totaling nearly 20 percent.
The 2011 reforms were projected to save insured employers nearly $1 billion assuming the insurance industry would fully adopt the NCCI recommendations.
The insurance industry’s failure to fully implement NCCI recommended rate reductions has prevented Illinois insured employers from realizing any meaningful savings.
No matter how many benefits are cut, medical reimbursements are lowered, and claims are denied, the state’s businesses won’t see corresponding savings without our leaders addressing the promises previously broken by the insurance industry.
For more about workers’ compensation, click here.
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Schock’s father speaks again
Thursday, Mar 19, 2015 - Posted by Rich Miller
* The AP’s Kerry Lester caught up with Congressman Schock’s dad yesterday…
Illinois Congressman Aaron Schock’s father says the facts will “convict or exonerate” his son.
Richard Schock is a Peoria doctor. He told The Associated Press Wednesday that recent investigative reports on the 33-year-old congressman’s lavish spending and improper expense reporting were “untrue” and “absolutely ridiculous.”
You can also watch ABC7’s complete interview with Schock’s father by clicking here. And make sure to watch the whole thing. It’s very raw and occasionally heartbreaking. I feel bad for the guy. The son? He’s on his own now.
* Meanwhile…
At the close of the last reporting period on Dec. 31, the Peoria Republican, whose district includes part of Springfield, had more than $3 million in the various funds he controls, from his actual campaign account to his political action committees.
The majority of that, nearly $3.3 million, is in his official Schock for Congress campaign fund. Far smaller amounts adding up to about $60,000 are in his GOP Generation Y and Schock Victory Fund accounts. […]
If Schock chooses to continue the inquiry into any of his campaign spending and whether past reports need to be adjusted to account for some of the expenditures on trips or other matters that have come up in the last six weeks, he can continue to pay the individuals he hired with his campaign cash to work on that as well.
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Farnham gets 96 months
Thursday, Mar 19, 2015 - Posted by Rich Miller
* Farnham asked to die peacefully at home. That won’t happen. From a US Attorney’s office press release…
FORMER ILLINOIS STATE REPRESENTATIVE KEITH FARNHAM SENTENCED TO NINETY SIX MONTHS FOR TRANSPORTING CHILD PORNOGRAPHY
Former Illinois State Rep. KEITH FARNHAM was sentenced to ninety six months in prison today by U.S. District Court Judge Edmond E. Chang as a result of his conviction of transporting child pornography via computers in his office and residence in Elgin last year. Farnham resigned his seat in the Illinois General Assembly in March 2014, less than a week after federal agents seized computers from his home and office.
Farnham, 67, of Elgin, was also ordered to pay a $30,000 fine. Farnham was ordered by Judge Chang to report to prison on May 19, 2015. Farnham will remain on a bond that restricts him to his home and requires around-the-clock electronic monitoring. “This is a despicable crime.” said District Court Judge Chang while imposing sentence. “The sex assaults of children in each of the 2700 images represent their own nightmare.”
Farnham pled guilty in December 2014, admitting that on November 25, 2013, he sent an email from a computer in his Elgin office with the following message: “do you trade. This is what I lik.” Farnham attached two files to the email that he knew contained child pornography. In addition, he possessed images and videos depicting child pornography on computers and electronic storage devices in his residence, car, and offices.
During the course of the investigation, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed federal search warrants at Farnham’s state office and residence in Elgin and seized computers and electronic storage devices. On the day the warrant was executed in March 2014, Farnham possessed no fewer than 2,765 images of real minors engaged in sexually explicit acts, including sexual intercourse, with prepubescent children. Some of the images involved sadistic or masochistic conduct and depictions of violence, according to Farnham’s guilty plea. According to the court documents, HSI agents were investigating information received from the HSI Cyber Crimes Center that an email address, later linked to Farnham, was being used to trade child pornography on the Internet.
“The defendant’s criminal conduct extends far beyond simply viewing sexually explicit photographs online. The defendant actively traded and bartered images and videos depicting child pornography, bragged to others about his own hands-on sexual abuse and exploitation of a six-year-old girl, and actively hid his tracks from law enforcement in order to continue his criminal conduct,” the government stated in its sentencing memorandum. “As an elected official, the defendant held himself out as being concerned about ‘protecting your children on the internet’ at the same time, however, he led another life, surfing the internet and message boards for sexually explicit images and further victimizing children of sexual abuse and exploitation.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago.
The government was represented by Assistant U.S. Attorneys Timothy Storino and Michelle Petersen.
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* Jim Muir writing in the Southern Illinoisan…
The Illinois Policy Institute, a non-partisan and well-respected organization, recently completed an exhaustive study about the five major public employees unions in Illinois. It’s titled: “Anatomy of Influence: Government Unions in Illinois.” The numbers are eye-opening to say the least.
Since 2002, public employee unions in Illinois have contributed $46 million in direct political contributions. Obviously, unions are not dropping that kind of cash on politicians because they have a pleasant personality. Clearly, it’s an investment and when you consider that Illinois taxpayers have made millionaires out of many, many public union employees, it was a good investment. Bad for taxpayers, but good for unions.
Interestingly, during that same time frame, from 2002 through 2014, Democrats controlled the House, the Senate and the governor’s mansion and, according to the report, 85 percent of that $46 million went to … you guessed it … Democrats.
Let me say again, I’m pro-union. But the system I’ve detailed today has nothing to do with anti-union or anti-labor. It has to do with a system that is badly broken and borders on veiled corruption. It’s a system that has to be fixed, period.
Discuss.
*** UPDATE *** From our old pal Kent Redfield…
Hi Rich,
A little perspective on the IPI Public Sector Union Contributions story.
Since 1/1/2002 Rauner ($40 million) Griffin ($17.1 million) and Uihlein ($7.8 million) have made $64.9 million contributions (not all to statewide and legislative races, but most of it, and most of it to Republicans).
It has been a couple of cycles since I looked at an overall break down of money coming into Illinois politics by source, but historically for contributions you can classify the split has been 60% business, 25% unions and 15 professional (doctor, lawyers, CPA, etc.). These are broad categories, but they give you a sense of what is going on. Because of the large amount of money from Rauner, Griffin and Uihlein in 2013-2014, the overall percentage from business is probably up, even with the counter surge from labor in independent expenditures.
Take care, Kent
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Take a chill pill, dudes
Thursday, Mar 19, 2015 - Posted by Rich Miller
* The acute fearful paranoia of some concealed carry enthusiasts has always troubled me…
Gun proponents convened for their annual Illinois Gun Owners Lobby Day and cited personal protection as a reason for expanding concealed carry.
“Predators look for places people are unarmed,” said Dawn Waters, a Lombard resident.
If there are signs outlawing concealed weapons in certain areas, residents without guns become open targets for predators, said Waters, who said she is a firearms instructor.
“Everyone there using public transportation, going to forest preserves, they’re in trouble. They are sitting ducks,” Waters said.
I’ve reported in Iraq and Kosovo and occasionally felt like a sitting duck. But never in Lombard.
* And the over the top “Sky is falling!” rhetoric by the anti-gun crowd is almost as silly…
“They’re not going to stop until they have virtually everyone carrying guns virtually everywhere in the United States,” said Brian Malte, National Policy Director for the Brady Campaign to Prevent Gun Violence.
Oh, for crying out loud. What a goofy thing to say.
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Ah, how times change
Thursday, Mar 19, 2015 - Posted by Rich Miller
* From a September 3, 2010 letter sent by then House GOP Leader Tom Cross and Senate Republican Leader Christine Radogno …
Dear Governor Quinn:
We want to express our staunch opposition to any attempt to tap into the Motor Fuel Tax Fund or the Road Fund as part of your plan to inter-fund borrow $1 billion to cover state operating expenses. As you recall, we opposed SB 3660, the legislation that grants you the authority to transfer funds out of dedicated funds to pay for normal government operations. We continue to believe that the diversion of road funds from their intended purposes is not good public policy and is, in fact, counterproductive.
To release a portion of the local road component funding from the capital bill, and then subsequently sweep a similar amount of cash from the Motor Fuel Tax Fund or the Road Fund, would seem to negate the benefits of the capital bill funding.
As you know, we worked cooperatively with all members of the legislature and your Administration in a bipartisan fashion to pass the capital bill in order to enhance Illinois’ infrastructure, to create jobs and foster economic development. Maintaining and improving this state’s roads and bridges is a vital component of achieving those goals.
The Motor Fuel Tax Fund has not been swept since FY 04 and to restart this practice during these challenging economic times does not make for good policy. There was a strong understanding as part of the creation of the capital bill to stop the practice of diverting road funds for other purposes. We believe that sweeping the Road Fund or the Motor Fuel Tax Fund would violate that commitment.
We believe that road funds should be used to patch holes on roads and bridges, not to patch holes in the state’s operating budget.
* At the time, the Road Fund contained nearly $480 million - which is about the projection for the fiscal year ending fund balance this year. The governor’s office back then said Quinn had no plans to raid it. Mainly because Downstaters were particularly concerned…
Tapping into the road fund is particularly controversial downstate because a majority of the money has gone to communities outside the six-county Chicago area. From 1999 to 2007, road fund expenditures downstate ranged between 56 percent and 68 percent, according to a May 2009 Legislative Research Unit report. […]
State Sen. Larry Bomke, R-Springfield, said if the funds were raided to shore up the general revenue fund, downstate would lose.
“The bulk of that money (the general revenue fund) is going to support things in the upper part of the state,” Bomke said. “Most people believe when they buy a gallon of gas they know so much of it is going to federal or state road fund, and they expect that money to be used for roads, not general purposes.”
And, keep in mind that Quinn only wanted to borrow from the Road Fund, not permanently sweep the cash.
* OK, let’s fast-forward to today. I also told subscribers this morning about this part of the proposed Fiscal Year 2015 fix (plus other stuff). Kurt Erickson…
Under one provision of a still-developing package to fix the current state budget, lawmakers would give Gov. Bruce Rauner the power to use as much as $250 million of the road fund for general state purposes.
The Republican leaders now support that permanent sweep.
* So, what changed?…
“I think people realize we’ve got to do something and we’ve got to do it quickly. Extraordinary times require extraordinary measures,” Radogno said. “We are in unprecedented times and we’ve got to do something to stem the bleeding.”
Asked what has changed in five years, Radogno suggested that a Republican victory in the governor’s race last November is playing a big factor.
“What’s different now is that there is confidence now that we’re going to do a really tough but a one-time fix here and get on the road to solvency,” Radogno said.
Just as a reminder, five years ago the state’s coffers were in absolutely horrible shape. Those were pre tax hike times and pension payments were rising fast.
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* Ogden & Fry, conducted a 1-question poll this past Friday, March 13. “Do you approve or disapprove of the way Bruce Rauner is handling his job as Governor?”…
* From the pollster…
Between 30 and 60 days, Rauner’s combined approval rating only dropped three points, but his combined disapproval rating increased from 26% to 37%.
More here.
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Not this week
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* This is just an upbeat way of saying, as I told subscribers earlier today, that no Fiscal Year 15 solution will likely be found this week…
Gov. Bruce Rauner said Wednesday that a plan to fix this year’s state budget could be introduced in the next few days. […]
A child care program for low-income parents needs $300 million to make it through the end of the year. The Illinois Department of Corrections says it will begin running out of money to pay guards in mid-April. And, funds to pay court reporters are running dry, potentially resulting in a stoppage of court activity.
Although Senate Democrats said the school cuts are a “sticking point,” Rauner said he thinks the stalemate may be nearing an end.
“We’ve been very close to a resolution for about five weeks,” Rauner said. “I’m hopeful in the coming few days we’re actually going to have a bill introduced.”
The House and Senate are both leaving town tomorrow, so unless a solution is found today or early morning at the latest, nothing will be done until next week. But it might be helpful if the governor was at the Statehouse today instead of heading up north to bash unions for the umpteenth time this week…
Daily Public Schedule: Wednesday, March 18, 2015
What: Governor Discusses Turnaround Agenda with Illinois Chamber of Commerce & Springfield Area Chambers of Commerce
Where: Hoogland Center for the Arts – Club Room
420 S. 6th St., Springfield
Date: Wednesday, March 18, 2015
Time: 10:30 a.m.
What: Governor Attends National Ag Day in Illinois
Where: Brandt Consolidated
2935 South Koke Mill Road, Springfield
Date: Wednesday March 18, 2015
Time: 11:30 a.m.
Note: No Additional Media Availability.
What: Governor Discusses Turnaround Agenda with National Federation of Independent Business
Where: Kegel Harley-Davidson
7125 Harrison Ave., Rockford
Date: Wednesday, March 18, 2015
Time: 3:45 p.m.
What: Governor Attends African-American Contractors Association Reception
Where: South Shore Cultural Center
7059 South Shore Dr., Chicago
Date: Wednesday, March 18, 2015
Time: 6:45 p.m.
Note: No Additional Media Availability.
* And since next week is the last week of legislative activity before the two-week spring break, there will be no more mulligans.
As we’ve all seen many times before, legislators work best when their backs are against a wall. But this is the same governor who promised during the campaign that he’d be attending committee hearings and haunting the House and Senate floors. He also told the Chamber this morning that he had dinner every night with up to a dozen legislators during session days. That obviously won’t happen tonight.
Constant speechifyin’ on session days ain’t governin’.
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Go easy or get tough?
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* The news broke about Aaron Schock resigning at around 1 o’clock yesterday afternoon. It wasn’t until 7 o’clock last night that US Sen. Mark Kirk finally commented, and it was via Twitter…
* I also found this statement interesting…
Schock’s departure also means there will be one less Republican in Congress who openly backs comprehensive immigration reform.
“I am so sad that he is resigning,” said Rep. Luis Gutiérrez (D-Ill.), a vocal proponent of immigration reform and a fellow Illinoisan. “I am very grateful to him for his wonderful warm friendship, and his support for a bipartisan way to fix our broken immigration system.”
* There was some debate in comments yesterday about whether politicians should be wishing Schock well right now. As one commenter wrote (paraphrasing), if they really were his friends they should’ve applied a little tough love before his life fell apart.
But, hey, he is at least their political friend and it’s understandable that they don’t want to kick a man when he’s down.
Then again, shouldn’t they be denouncing this guy?
On the other hand, he hasn’t been convicted of anything, or even charged.
* We already have a QOTD posted today, so let’s just call this one a “poll”…
customer survey
Make sure to explain yourself in comments.
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Question of the day
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* From a press release…
The Illinois Tollway wants its customers to have their say on safety by suggesting eye-catching messages for electronic roadway signs that discourage dangerous driving.
Beginning today, customers will have a chance to see their message up in lights by submitting concise, creative slogans that warn against impaired driving, distracted driving and not wearing seatbelts.
* The Question: What message(s) would you put on electronic roadside signs at Illinois’ borders?
Snark is heavily encouraged.
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Piccioli files suit over pension
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* Tribune…
A union lobbyist who qualified for a teacher pension windfall by subbing at a school for one day is now suing a state retirement board because his benefits were scaled back once his sweet deal was exposed.
Retired Illinois Federation of Teachers lobbyist David Piccioli, 65, is arguing that lawmakers violated the state constitutional provision that says a pension cannot be “diminished or impaired” once it is set.
Piccioli is already collecting $31,485 from the Teachers Retirement System. If he wins his case, his teacher pension could increase by more than $36,000, the Tribune estimated — more than doubling what he gets now.
Piccioli also gets a second state pension worth just over $30,000 that covers time he served as a legislative aide. Both pensions are based on an average of his six-figure salaries as a union lobbyist. […]
If Piccioli’s lawsuit succeeds, the outcome may suggest to lawmakers that they cannot reduce pension benefits under any circumstances.
The lawsuit is here.
* From Piccioli’s press release…
Since the 1980s, the IFT has been one of 800 authorized employers for TRS, enabling its staff to earn teacher pension credits for their work on behalf of public education. Employees are required to pay all TRS contributions, both individual employee and employer shares so there is no taxpayer cost to the system.
In 2007, Mr. Piccioli obeyed all laws to enroll in TRS on his first day as a classroom instructor. His enrollment was identical to 300,000 other members who joined the teacher retirement system after their first day of teaching. He earned TRS service credits going forward for IFT employment from 2007 until retirement Dec. 31, 2012. He paid all contributions with personal funds from an IFT retirement annuity.
Separate from his lawful enrollment in TRS, the General Assembly adopted PA 94-1111 in 2007. The law offered an opportunity for scores of people to upgrade their service credit in public pension systems. Piccioli joined them in upgrading his service with nine years of credits for IFT employment from December, 1997 through May, 2007. He paid all TRS contributions with personal funds out of pocket.
In total, Piccioli contributed $365,000 out-of-pocket to TRS to cover the full “normal costs” of his pension. As required by law, he paid all contributions for both the individual employee and employer. Those contributions, including interest compounded at 8.5%, equaled 20% of his salary.
Because he paid both sides of pension contributions–both employee and employer shares—plus compounded interest, a legislative fiscal analysis for PA 94-1111 said taxpayer costs for his pension are “expected to be minor.”
Pension language in PA 94-1111 (SB 36) was not controversial at the time. It passed the Illinois House 109-6-0 and the state Senate 55-0-1.
Pension upgrades with past service credit are a common practice in the Illinois pension code. Statutes have enabled thousands of individuals to purchase pension credit in all public systems for work in military service, private school teaching, education-related associations and other employment.
* Here’s my problem, though. The IFT endorsed Rod Blagojevich in 2006 after obtaining from him a solemn oath that he would not rule out an income tax hike. He flip-flopped on them within a day or so. Instead of dumping him for lying, the union continued backing Blagojevich, giving him hundreds of thousands of dollars. RRB signed that above pension bill into law in February, 2007.
That timeline has never been adjudicated, however, so proving any sort of quid pro quo will be very difficult if not impossible. Therefore, Pitch probably has a decent case.
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*** UPDATED x2 *** Careful what you wish for
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* From a press release…
On Friday, March 20, State Representative Ron Sandack (R-Downers Grove) will formally present his House Bill 298, which would allow Illinois municipal governments to seek bankruptcy protections under Article 9 of the Federal Bankruptcy Code. The hearing will be “subject matter only,” and take place before the House Judiciary-Civil Law Committee. The media is invited and encouraged to attend.
* Reuters…
The southern California city of San Bernardino has defaulted on nearly $10 million in payments on its privately placed pension bond debt since it declared bankruptcy in 2012, according to documents seen by Reuters.
In addition, the city has not negotiated with its bondholders since September, according to a person familiar with the stalled negotiations.
The missed payments illustrate the trend among cities in bankruptcy to favor payments to pension funds over bondholder obligations, which has increased the hostility between creditors and municipalities.
San Bernardino declared last year that it intends under its bankruptcy exit plan to fully pay Calpers, its biggest creditor and America’s largest public pension fund with assets of $300 billion.
The city continues to pay its monthly dues to Calpers in full, but has paid nothing to its bondholders for nearly three years, according to the interest payment schedule on roughly $50 million of pension obligation bonds issued by San Bernardino in 2005.
If Sandack’s bill passes, there’s a very good chance that municipal bond ratings will plummet throughout the state.
*** UPDATE 1 *** Rep. Sandack disputes my analysis…
Like other states, I’m proposing a statutory lien for bond holders. In sum they get secured creditor status.
*** UPDATE 2 *** Wordslinger makes a valid point in comments…
Sandack’s “statutory lien” means oogats to a federal bankruptcy judge.
You open the door, you’ll play by their rules.
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Election timeline and a look ahead
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* I posted much of this same info yesterday, but it may have been lost in the commotion…
Republican Gov. Bruce Rauner must call a special [election] within five days after Schock’s resignation becomes official on March 31, according to state law, and [the general election] must be held no later than 115 days from the call.
Rauner has leeway to decide the dates of the election within that time frame. In the last House special in Illinois, to replace Democrat Jesse Jackson Jr., the congressman resigned Nov. 21, 2012, the primaries were held three months later on Feb. 26 and Democrat Robin Kelly won the seat on April 9.
There are also federal laws about providing enough time for military mail-in ballots. I think that’s 45 days. So, they can’t piggyback the primary on the municipal elections. Both the primary and the general will be stand-alone, very low-turnout elections.
…Adding… The potential cost…
The special election to replace the Peoria Republican in the state’s 18th Congressional District could exceed $150,000, election officials said.
Peoria County Steve Sonnemaker estimated the cost for a primary and general election to be between $75,000 and $80,000.
“If Steve said it was $75,000 to $80,000 for the county’s part, I would say that the total cost is probably double that for both elections,” Tom Bride, the executive director of the Peoria Election Commission, told the Peoria Journal Star.
* DKos has the Romney numbers and is correct about the real action in this race…
Romney won this Downstate Illinois seat, which includes Quincy and parts of Peoria and Springfield, by a 61-37 margin, so all the action will be in the GOP primary.
Yep. And keep in mind that was a presidential year. Bruce Rauner undoubtedly won it by a whole lot more in his off-year race. And turnout will be even lower in a special. It’ll be a race to the right in the primary and a hopeless task for a Democrat.
Any talk or even idle speculation of an established Democrat running for this seat is just nuts. Either that, or the wannabe is nuts. Only a miracle could elect a Democrat in a special election in the strongest Republican district in the entire state. An established Democrat would lose a whole lot of credibility by being wiped out in the general.
* Getting back to the GOP primary, Sen. Darin LaHood appears to be gaining quite a bit of strength as others bow out. LaHood has reportedly been quietly plotting this move for a while now, figuring that Schock wouldn’t survive. He may need to raise a bunch of money in a big hurry to scare everyone else off, particularly former state Rep. and 2014 lt. governor candidate Jil Tracy of Quincy.
Tracy has serious family money that she can tap. She also has family in other parts of that district, including Springfield. And her 2014 statewide primary bid helped her develop contacts with party leaders.
If Tracy decides to take the plunge, she could give LaHood a real contest.
…Adding… From a prescient commenter…
Am I the only one who thinks, if played correctly by the right candidate, that the LaHood family connection to President Obama could be a factor in this race?
I’m guessing that to the kind of Republicans who will be voting in this race, Ray LaHood’s Cabinet duty for the Obama White House sticks much more prominently in their mind than his years of honorable service in Congress.
That commenter could well be right. If Tracy or whomever successfully somehow “reminds” hardcore Republican primary voters about the father’s close ties to Obama, it could definitely hurt the son.
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* Politico reports that Schock will reimburse the government… again…
On Monday evening, POLITICO began asking questions about tens of thousands of dollars of reimbursements he received from his campaign and federal government for mileage put on his personal car. Records show that Schock personally claimed reimbursement for roughly 170,000 miles driven from January 2010 to July 2014. But the only vehicle he owned during that time was sold with just 80,000 miles on the odometer.
Asked for his response to those findings, Schock announced his resignation. […]
Later that day, Schock’s office said he would pay back all of the mileage reimbursements he has received since coming to Congress in 2009. That would amount to tens of thousands of dollars — on top of the tens of thousands he’s already had to reimburse for a private flight and the cost of redecorating his office.
Schock’s associates — many of whom are afraid to speak for attribution, fearing potential legal action — say a combination of immaturity, sloppiness and an oversized ego led to his downfall. He came to Congress as an eager 27-year-old, raised a lot of money and spent it at a rapid clip.
Scrupulous accounting, it appeared, was not a priority. On one election filing, Schock labeled a private flight as a software purchase. He failed to disclose trips abroad, as well as the use of a private golf course for a fundraiser in 2014.
* Sloppiness and a lack of “scrupulous accounting” is one way to look at this. Deliberately hiding potential criminal conduct is another. And if he’s paying back tens of thousands of dollars, he may be all but admitting that he over-billed the taxpayers, even if he said the reimbursement decision was taken out of an “abundance of caution.”
If his lawyers didn’t negotiate some kind of deal with the G in exchange for his resignation, Schock could be in some very serious hot water…
Meredith McGehee, the policy director at the Campaign Legal Center, said Schock could face criminal charges if it’s proved that he filed a false reimbursement voucher.
* More…
Washington lawyer Kenneth Gross, formerly the associate general counsel at the Federal Election Commission, which handles civil enforcement of campaign-finance rules, said Tuesday that “a number of issues have been raised regarding (Schock’s) handling of campaign funds and office expenditures, but it’s hard to know what constituted a critical mass to cause him to resign.”
One campaign-finance lawyer, who spoke on condition of anonymity, said that as a general rule, the Justice Department, should it be taking a look at a lawmaker, would not be swayed one way or another by a resignation.
Schock had been under scrutiny in 2012 for allegedly soliciting a $25,000 contribution from a political action committee in excess of legal limits. But that case, before the House Ethics Committee, will go away once Schock’s resignation becomes official.
*** UPDATE *** Um, wow…
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* Greg Hinz and I were both given a heads up about this interesting new development yesterday. Subscribers have my take, here’s his…
A new Democratic business group is trying to muscle its way into the Springfield budget war, and it claims to be carrying a really big club: $20 million in promised contributions from donors interested in reaching a truce with Gov. Bruce Rauner.
In an announcement this morning, Illinoisans for Growth and Opportunity says that even though its founders are Democrats, the party has “lacked strong executive leadership.” As a result, it asserts, “special interests have had far too much influence in setting public policy. We’re organizing this effort to provide Democrats with the support they need to make the tough, but responsible, decisions to correct our state’s financial course, better serve our most vulnerable residents, and grow our economy.”
The new group is headed by Anthony K. Anderson, the former managing partner of Ernst & Young’s Midwest office, a member of the Exelon board of directors and, as he put it “a lifelong Democrat.” Also on the board are former Corn Products CEO Samuel C. Scott III and communications company owner Pat Pulido Sanchez. She’s married to Manuel “Manny” Sanchez, a top Democratic fund-raiser who broke with the party last year to endorse Rauner for governor.
In an interview, Anderson said the group will function as a 501 (c)4 issue advocacy organization. But it also will have an independent expenditure affiliate that can take positions for and against specific candidates. That affiliate is designed to help Democratic lawmakers who are under pressure from organized labor and other “special interests.”
“There are a bunch of Democrats who are fed up with the way things are going. We have a state that’s been run by Democrats for a long time. They put us in this mess,” Anderson said. The group wants to help those who “are not swayed by special interests. We want them to know we’ve got their backs.”
Go read the rest.
* The group’s complete press release…
Progressive Donors Launch Effort to Save Illinois
Illinoisans for Growth and Opportunity Launches with Millions on Hand to Support Budget Compromise
CHICAGO—Progressive donors launched an issue advocacy organization, Illinoisans for Growth and Opportunity (ILGO), Wednesday with more than $20 million in commitments from more than two dozen donors, to encourage legislative leaders and legislators to make the tough, but necessary, decisions to save Illinois from the financial crisis the state is currently facing.
ILGO’s Board of Directors includes life-long Democrats Anthony K. Anderson, Samuel C. Scott III and Pat Pulido-Sanchez. ILGO will work to support solutions to the massive budget shortfall in the current, FY2015 budget and begin to advocate for solutions to the structural budget deficits for fiscal year 2016 and beyond. As legislative leaders negotiate budget plans with the Governor, ILGO will work to defend lawmakers who support effective budget solutions.
“Illinois’ dire financial state is a result of the majority party’s failed leadership and we need to come together to protect progressive values and save our state,” said Anthony K. Anderson, chair, Illinoisans for Growth and Opportunity. “We believe government has a critical role to play in society, but it is only effective at achieving our goals if it is functioning properly. Illinois has lacked strong executive leadership and special interests have had far too much influence with legislative majorities in setting public policy. We’re organizing this effort to provide them with the support they need to make the tough, but responsible, decisions to correct our state’s financial course, better serve our most vulnerable residents, and grow our economy.”
The State of Illinois is facing a financial catastrophe:
· $1.5 billion in shortfall in the current budget year
· $6 billion projected budget shortfall in fiscal year 2016
· $111 billion pension deficit
These massive fiscal challenges are a drag on our economy and have negative consequences for working families:
· Only 9.8% of employment is based in Illinois manufacturing, while neighboring states average more than 13% and Indiana is nearly 17%1
Illinois was awarded the worst credit rating and worse government and fiscal policy2
· Bottom 1/2 of states for business climate3
· Bottom 1/3 of states for small businesses4
· 6.1% unemployment rate5
· As a result of slow growth in Illinois, a Chicago child raised in a family earning in the bottom fifth of all earners only has a 6.1% chance of ever earning an income in the top fifth6
Governor Quinn and the General Assembly passed a disastrous FY15 budget that is forcing dramatic cuts in important services and undermining public trust in the ability of our government to function. The Democratic-authored and passed budget did not fund critical programs for the entire year and effectively spent a full year’s worth of revenue in the first six to nine months, knowingly creating a crisis in 2015.
Democratic leaders passed a FY 2015 budget that they knew would create a financial crisis:
Pat Quinn: “The General Assembly didn’t get the job done on the budget…The General Assembly sent me an incomplete budget that does not pay down the bills but instead postpones the tough decisions.” (Governor’s Office Budget Statement, May 30, 2014)
Senate President John Cullerton: “However, the effect of budget is to delay doomsday by borrowing and increasing our backlog of bills,” Rikeesha Phelon, a spokeswoman for Senate President John Cullerton, said. “Admittedly, this budget reverses some of the progress that we have made in recent years.” (Reuters, 5/27/14)
Speaker Michael Madigan: “Speaker Michael Madigan acknowledged the budget proposal would leave unfinished business and vowed to spend the summer and fall working to get the income tax hike made permanent to provide more money to run state government.” (Chicago Tribune, 5/27/14)
State Sen. Heather Steans: “We are kicking the can down the road.” (Crain’s Chicago Business, 5/28/14)
This type of irresponsible leadership has resulted in many of the programs and initiatives progressive leaders advocate for everyday being either unfunded or underfunded, including:
· Eliminating child care for thousands of families
· Removing in-home caretakers for our seniors
· Leaving people with mental illnesses without the assistance they need
· Evicting hundreds of veterans from housing
· Imposing severe cuts to nursing home regulators
In the coming weeks and months, Illinoisans for Growth and Opportunity will be actively engaging and educating the public and supporting lawmakers who take the tough but necessary decisions to address our state’s dire financial situation.
Resolute Consulting has been engaged to manage the organization and Resolute CEO Greg Goldner will be leading the effort. KO Public Affairs will also serve in a general strategy and management role. Siegel Strategies will provide paid communications strategy. Stones Phones will provide voter outreach and phone solutions and Global Strategy Group will provide polling and research.
To join Illinoisans for Growth and Opportunity’s effort to change the dynamic in Springfield, visit IllinoisGO.org.
About Illinoisans for Growth and Opportunity
Illinoisans for Growth and Opportunity (ILGO) is as a 501(c)(4) organization that conducts education, issue advocacy and public policy analysis to identify and promote effective solutions to some of the most challenging issues confronting Illinois residents and taxpayers. Its purpose is to increase public awareness and engagement in critical public policy debates facing the state. ILGO is driven by a fundamental belief, grounded in progressive principals, that if government is to be an agent for change and equal opportunity, it must operate effectively and efficiently to maintain public trust and confidence. In Illinois, that trust and confidence has been eroded over the last 12 years.
ILGO will also establish an independent expenditure committee which will directly engage in political activity, including supporting or opposing candidates, legislation or ballot questions in the state of Illinois. The committee will defend Democratic lawmakers who have demonstrated support for the difficult, yet responsible, choices our state government needs and protect lawmakers from special interest attacks that may result. It will not engage in General Election contests.
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The 2.25 percent “solution”
Wednesday, Mar 18, 2015 - Posted by Rich Miller
* I’ve been telling subscribers about this across the board 2.25 percent cut since March 4th…
Under a framework designed to help Gov. Bruce Rauner manage the state through the end of the current fiscal year on June 30, state spending would undergo a 2.25 percent reduction.
The cut would free up money for the Republican governor to keep a child care program afloat, as well as pay prison guards and court reporters.
But the concept, floated by House Speaker Michael Madigan, D-Chicago, would mean less money for school districts as they head into the final months of the school year.
“Yes, that is a sticking point,” state Sen. Andy Manar, a Bunker Hill Democrat, said Tuesday. “An across-the-board cut will have a disproportionate effect on the poorer districts of the state.”
There is, indeed, a sticking point over the school funding idea. And there’s more to this not-yet-deal than that cut. Subscribers know more.
* The Rauner administration’s response to the above story…
We don’t believe in negotiating through the press.
You will recall that Rauner blasted Pat Quinn most of last year for allegedly cutting state funding for education, even though Quinn didn’t actually cut state school dollars. But there could be a loophole here if the 2.25 percent cut still leaves schools with more money than they received last fiscal year.
* Even if that’s true (and I think it is), cutting school budgets this late in their fiscal year is going to cause some real pain. Back to Erickson’s story…
“Obviously, you can’t make staffing adjustments now,” said Maroa-Forsyth Superintendent Michael Williams.
Statewide school organizations fear the state will simply not send out a final reimbursement check to districts for special education and transportation programs.
Yep. Budget making is so easy peasy.
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[This post has been updated and bumped up for visibility.]
* The News-Gazette leads with the former hometown guy, but the ones to really watch on this list are the two with by far the most name ID: Darin LaHood and Bill Brady…
State Sen. Jason Barickman, R-Bloomington, said he is interested in succeeding U.S. Rep. Aaron Schock, R-Peoria, who abruptly resigned Tuesday from his 18th Congressional District seat.
State Rep. Dan Brady, R-Bloomington, also said this afternoon that he’s “looking at” the seat. And a spokesman for state Sen. Bill Brady, R-Bloomington, said the former Republican gubernatorial candidate also is considering running for the west central Illinois congressional seat.
Also mentioned as potential Republican candidates in the overwhelmingly Republican district are state Sen. Darin LaHood of Dunlap and former state Rep. Jil Tracy of Quincy.
*** UPDATE 1 *** Sen. Bill Brady…
“I’m very flattered that many supporters and residents of Central Illinois have suggested I seek the seat in Congress representing the 18th Congressional District. I have decided, however, to remain in the Illinois Senate at the current time because of my business interests and my wish to help Governor Rauner resolve the many challenges Illinois faces.
“There may be other opportunities in which I could better serve the citizens of Illinois in the future. For now, I look forward to working with our Republican governor to forge meaningful solutions that will set Illinois right and encourage greater business investment in our state.
“I have several longtime friends who also have expressed interest in the seat – my colleagues in the Senate, Darin LaHood and Jason Barickman who both helped me in my campaign four years ago, my brother Ed Brady , and my Bloomington colleague in the House, Dan Brady. They, along with others, have great potential for serving Central and Western Illinois well in Washington. “
*** UPDATE 2 *** Sen. Darin LaHood…
STATE SENATOR DARIN LAHOOD ANNOUNCES RUN FOR CONGRESS
Forming Federal Campaign Committee Today
LaHood is a former 10-year state and federal prosecutor
State Senator Darin LaHood announced today his intent to run for Congress in the 18th District and will be forming a federal campaign committee with the Federal Election Commission (FEC) today.
LaHood will soon make a formal announcement in locales throughout the 18th Congressional District. The 18th District includes 19 counties in Central and Western Illinois.
LaHood is currently serving in his fifth year as a Republican State Senator, elected without opposition in his last election. He has served on the following committees: Judiciary, Criminal Law, Executive Appointments, Public Health, Human Services, Pensions & License Activities, Environment, Insurance, and Transportation.
Since taking office, Senator LaHood has achieved a strong record as a leading fiscal conservative in Springfield. He has been an outspoken advocate for creating a better business climate in Illinois to boost the state’s economy and create jobs for Illinoisans.
From 2001-2006 LaHood served in the U.S. Attorney’s Office in Las Vegas, Nevada, where he was the lead prosecutor for the Project Safe Neighborhoods Program and then the Chief Terrorism prosecutor. Additionally, he has worked in both the Cook County and Tazewell County State’s Attorney’s Offices. LaHood has also previously worked in the U.S. House of Representatives as a Legislative Assistant and then an Appropriations Committee Associate. He graduated from The John Marshall Law School and currently practices law with the Peoria law firm of Miller, Hall & Triggs.
Darin LaHood has been married to Kristen for 13 years and together they have three sons: McKay 12,Lucas 10, and Teddy who is 8 years old. The LaHood family resides in Dunlap which is in Peoria County.
Governor Rauner has until April 5th to set a date for a special election which must occur within 115 days.
*** UPDATE 3 *** Sen. Jason Barickman…
“I am grateful to hear from so many people across Central Illinois urging me to consider a candidacy in the 18th Congressional District. Yesterday, I spoke with many supporters, and discussed this potential opportunity to serve with my family. However, the needs of my young family and the desperate fiscal situation in Illinois state government are paramount. These issues demand my full attention and present significant opportunities for me to serve my community and make a difference for our great state.
After careful consideration, I have decided not to run for Congress in the 18th Congressional District.”
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