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Question of the day

Tuesday, Feb 21, 2012 - Posted by Rich Miller

* My weekly syndicated newspaper column

The pro-choice group Personal PAC has filed suit to kill off Illinois’ campaign contribution limits to certain political action committees. If the group succeeds, some candidates may start justifiably quivering.

Currently in Illinois, contributions to state political action committees are capped at $10,000 for individuals and $20,000 for corporations, groups and unions.

Personal PAC’s lawsuit wants those caps wiped out, arguing that the controversial “Citizens United” U.S. Supreme Court case and the “Wisconsin Right to Life” U.S. Appeals Court case mean the caps are unconstitutional. The two rulings declared that spending and contribution limits on federal and state PACs that are engaged in independent expenditures are unconstitutional.

Personal PAC claims it has missed out on $100,000 in contributions since the state caps were put into place last year. Nobody will be holding a tag sale for the group any time soon, however. At the end of December, Personal PAC had more than $1.4 million in the bank. It raised close to $700,000 last year alone, after the contribution caps first kicked in.

Four years ago at this time, the group had $770,000 in the bank after raising $997,000 the previous 12 months. The state’s year-old campaign contribution caps haven’t appeared to hurt the group much, if at all, but it wants more freedom to raise even more cash.

Personal PAC long has been one of Illinois’ top-performing political action committees. It raises and spends tons of money every election cycle and has one of the better track records in Illinois politics.

But because of the new caps, it wants to set up a separate entity to make uncoordinated, independent expenditures on behalf of candidates. That means the group won’t give money directly to candidates but will spend the cash to help them without coordinating with the candidates’ campaigns.

In the past, Personal PAC usually designed its direct mail and radio and TV commercials and reported them as what are called “in kind” contributions to the campaigns it was supporting. The group could coordinate directly with the candidates it supported, but Personal PAC usually tightly controlled its message, regardless of what the candidates wanted it to do.

That independence created some friction over the years. The group is heavily funded by liberal Democrats, but Personal PAC has backed several pro-choice Republicans against Democrats. A few years ago, some Democrats attempted to start a contribution boycott, but the group was just too strong to stop.

Back when the law limiting contributions to groups such as Personal PAC was passed, I wrote that the proposal was a direct shot at the group itself.

Personal PAC can’t set up one of those newfangled, independent-expenditure committees because Illinois law also forbids groups from establishing more than one campaign account at a time. This provision also is aimed at Personal PAC and groups like it. Since the Wisconsin case, which was decided by a Chicago-based federal appeals court, allowed PACs with independent-expenditure committees to raise money without limit, Personal PAC wants the court to stop Illinois from interfering.

It looks like Personal PAC has a pretty good case here.

The U.S. Supreme Court has ruled that limiting independent expenditures won’t rein in corruption, and the original legal rationale for campaign contribution caps was to stop corruption. So, now it’s Katie bar the door.

If this contribution cap is lifted, Personal PAC and other groups will be free to raise as much money as they can from large contributions. But candidates still will be operating under strict campaign finance limits. Personal PAC and other groups, like labor unions, corporations, etc., will be able to raise and spend money freely to go after candidates who can do neither.

In other words, Illinois’ campaign finance reforms, combined with the U.S. Supreme Court’s logic, have the real potential to transfer power from the political class to the monied class.

If Personal PAC wins, the legislative effort to stifle and limit the group’s voice will have backfired badly on the control-minded politicians.

* The Question: Do you agree with the US Supreme Court that limiting independent expenditures will not rein in corruption? Take the poll and then explain your answer in comments please. Thanks.


  28 Comments      


*** LIVE SESSION COVERAGE *** Quinn to close 14 facilities

Tuesday, Feb 21, 2012 - Posted by Rich Miller

* AP reporter Chris Wills just Tweeted that Gov. Pat Quinn will propose closing 14 state facilities in his budget address tomorrow. You’ll probably see more stories like this on our live feed today as we gear up for the budget address. Also, check back in the evening because reporters will be given a briefing, and some may update from the room.

The Senate’s not in session today, but the House is and you can watch or listen here. Blackberry users click here, everybody else kick back and watch the show…

  20 Comments      


Madigan is going all out against an opponent who won’t give up

Tuesday, Feb 21, 2012 - Posted by Rich Miller

* Sun-Times reporter Abdon Pallasch went to House Speaker Michael Madigan’s district and reports that Madigan’s signs are everywhere

Driving through the 22nd district confirms the outward show of Madigan support. Nearly every lawn on some blocks has the rectangular white signs, positioned perfectly perpendicular to the homes, looking almost in military formation like the tight political organization Madigan runs.

On the 3800 block of West 68th Street, nearly every house has a Madigan sign except two. Those are the homes of Olivia Trejo and Mike Rodriguez, the other two candidates in the Democratic primary with Madigan and Piszczor.

One of the two homes between Trejo’s and Rodriguez’ has a Madigan sign. There are no signs on Trejo’s or Rodriguez’s lawns or windows. No one answered the door at either home, though the television went off at the Rodriguez home after the Sun-Times rang the bell.

Photo

* Madigan also hosted a job fair

Attendees of the DeVry University Job Boot Camp hosted by state Rep. Michael Madigan, D-Chicago (pictured below addressing the crowd at the 13th Ward Office), Alderman Marty Quinn (13th Ward) and state Sen. Martin Sandoval (D-Chicago) learned new ways to improve skills for gaining employment. Topics of the workshop included resume preparation, job interview skill development, job search strategies, social media assistance and professional networking.

“We want to provide people with the tools they need to be prepared for finding good paying jobs,” said Rep. Michael Madigan.

Photo from the event…

Caption?

* So, why is Madigan putting himself through the full program? The man never takes chances and he has a feisty opponent who continues to generate media coverage

If there are really five candidates in this race for state representative on the Southwest Side, why does only one of them have his own campaign sign on his front lawn?

Candidate Michele Piszczor, 25, says it’s because the only real candidates in the race are herself and Speaker of the House Michael Madigan.

And when Madigan heard she’d be running against him, he drew her neighborhood out of the district, so there’s no point in posting a sign on her lawn — her neighbors can’t vote for her, she said.

“They’re not real candidates,” Piszczor said of the others. “I’m the only legitimate candidate standing up to Mike Madigan,” whom she calls “the most powerful … man in this state.”

* Piszczor sent me this press release over the weekend…

Michele Piszczor, a Hispanic/Polish woman running against Michael Madigan in House District 22 democrat primary race was ambushed at a press conference led by Joshua Hoyt, Chief Strategic Executive of the Illinois Coalition for Immigrant and Refugee Rights (ICIRR), on Friday February 10th, 2012 in Chicago. “Mr. Hoyt made several derogatory comments and character assassinations to the media about Jack Roeser, who has not even contributed to my campaign. Hoyt’s group also tried to convince me to donate the few campaign contributions I have received to charity. Hoyt’s group stated that my contributors are ‘dark people’ and ‘spreading hate’ within our community” said Piszczor.

“The ICIRR is attacking people who have a history of providing good jobs to our community”, said Piszczor. ICIRR’s mission is to promote the rights of immigrants and refugees. They provide many free services, which are very temporary. “Some of the people interested in my campaign are people who have great respect for and provide considerable jobs for Hispanics. That is very lasting and empowering for my community” said Piszczor.

* Piszczor posted a video of her confrontation with the Illinois Coalition for Immigrant and Refugee Rights

* Back to Piszczor’s press release…

Since the video of the press conference has gone viral on the internet Piszczor is getting emails from all over the state. “There are people from all over Illinois - including Republican groups - who are contacting my campaign all of a sudden and want to contribute. Hundreds of Democrats have told me that they can not openly support me and of course that I will not get help from the Democrat Party, since Madigan is the chairman. I believe the anti-Madigan sentiment is rising. Joshua Hoyt’s unscrupulous press conference and obvious pro-Madigan strategy has gotten my campaign rolling full steam ahead,” according to Pizczor.

“For those groups of people, such as Hoyt’s, who think I should donate the contributions I have received in my campaign to charity – I will. However, in order for there to be a level playing field you must get Madigan to donate the 4 million dollars in his campaign chest to charity as well. Madigan goes first. (Hoyt should look at the many contributions Madigan gets from Republicans as well).

Madigan has name recognition, huge amounts of cash, is chairman of the Democrat party and almost NO ONE KNOWS HIM IN THE 22ND DISTRICT. I’m a young Hispanic/Polish female with little money, no name recognition and a huge desire to represent the people of the 22nd district with honor and integrity. There are other so-called candidates in the race. Why didn’t Hoyt get the other candidates to the press conference/ambush? It is because they are fake candidates meant to confuse the voters. It is really pathetic and just another reason why Madigan will go to his deathbed one day with an enormous amount of guilt. With Madigan’s wide-ranging corrupt power and money, why is he (or Hoyt) worried about a little Hispanic/Polish girl anyway?” stated Piszczor.

They may not know him, but they all have his signs in their yards. Just sayin…

* Anyway, Piszczor told me via e-mail this weekend that Jack Roeser will henceforth be backing her campaign. Piszczor reported $5,000 in total contributions yesterday from a Barrington company and a Wheeling CEO.

  39 Comments      


*** UPDATED x1 - Poll Shows Big Kinzinger Lead *** Today’s videos

Tuesday, Feb 21, 2012 - Posted by Rich Miller

* Last fall, state Senate candidate Tom Pliura (R-Ellsworth) went a bit off track during a tea party forum

Pliura said he was “disappointed” to see the passage of a civil-unions law in Illinois earlier this year, saying it “wasn’t necessary” and “wasn’t appropriate.”

The LeRoy physician and attorney said he was “strongly opposed to gay marriage.”

“I don’t think society ought to be condoning that anymore than, quite frankly, if a guy wants to get married with a donkey,” he said. “If you want to have relations with your donkey, that’s fine. Just don’t ask me to say, ‘OK, now that we have a civil union here, my donkey can get health care benefits.’”

And now somebody has posted a mocking video of Pliura’s moment

Oy.

I called Dr. Pliura today and asked if he would do anything different if he had to do it over again. Pliura said he was talking in the forum about how his late brother was gay and how he was personally opposed to civil unions, but did admit “I probably should have just stopped right there.”

No kidding.

“I’m learning very quickly,” Pliura added. “I’m a newbie to this.”

* This TV ad isn’t so humorous. As subscribers already know, Rep. Randy Ramey was whacked for his DUI

* Congressman Don Manzullo goes after Congressman Adam Kinzinger on government spending

…Adding… Congressman Kinzinger also has a TV ad up

*** UPDATE *** We Ask America’s latest poll has Kinzinger up by 13 points

From the pollster

A deeper look into where the responses to this poll came from reveals that Manzullo continues to lead comfortably in the areas he represented prior to the re-map, while young Adam Kinzinger is cleaning up in both his former area and the areas that are new to both candidates. As we always like to point out: a single poll in a given district should never be taken as a prediction of the inevitable. But the internal numbers–especially WHERE the responses came from–point to Kinzinger as the clear leader for now.

  19 Comments      


Here come the cuts

Tuesday, Feb 21, 2012 - Posted by Rich Miller

* This is a classic media overstatement about a legislative proposal

Taxing junk food and cigarettes could save Illinois much-needed money, according to the Illinois Hospital Association.

On the line are 19,000 jobs that could be eliminated as Illinois Governor Pat Quinn tries to cut back on Medicaid costs.

“They’ve shown a link between these sugary beverages and obesity and thus diabetes,” said Jeni Tackett, a registered dietician with Trinity-Bettendorf.

Tackett says taxing sodas and energy drinks would force people to think differently about what they’re putting into their bodies.

A penny per ounce tax would generate maybe $13 million a year in tax revenues. Gov. Quinn is talking about $2.7 billion in Medicaid cuts. This is just one tiny aspect of the Illinois Hospital Association’s proposal to forestall those cuts

The hospital association will “vigorously” fight any cuts to Medicaid payments to hospitals, she said. Such payment cuts could result in the closure of struggling hospitals, leaving Illinois with more “health care deserts,” such as in East St. Louis, which already lost its only hospital.

“This is not a haircut; $2 billion is a scalp,” [Illinois Hospital Association chief Maryjane Wurth] said.

More on what the IHA wants

Hospitals would pay a tax on outpatient gross revenues, which would generate a $240 million federal match per year. That would result in $480 million a year to Medicaid providers, including hospitals, nursing homes and providers of services for people with developmental disabilities. […]

Q. You also propose increasing revenues for Medicaid by raising cigarette taxes from the current 98 cents a pack, adding a tax on junk food and increasing the sales tax on soft drinks.

The cigarette tax hike would bring in $377 million. All all that up and you’re talking real money. But still not enough to forestall all those cuts. And “tax” is now a four-letter word in Illinois since the income tax was raised. It’s a tough road.

* And speaking of cuts, this is gonna be a very grim year

Women’s health advocates fear that waiting lists for a state-funded screening program will grow if Illinois officials cut even more from the program in the next fiscal year.

Waiting lists that have developed in recent months for uninsured women seeking medical tests and examinations through the Illinois Breast and Cervical Cancer Program may not be eliminated despite $1.4 million in supplemental grants sent out this week, program director Jean Becker said Friday.

Advocates are concerned that Gov. Pat Quinn, in his fiscal 2013 budget address Wednesday, may propose even deeper cuts for the Breast and Cervical Cancer Program.

“I’m very worried about it,” said Anne Marie Murphy, executive director of the Metropolitan Chicago Breast Cancer Task Force. “The funding for this year’s program was woefully inadequate.”

* And here’s a grim budget roundup…

* Quinn wants all state offices, agencies to cut budgets by 9 percent

* Quinn wants major Medicaid cuts

* Unions may have to choose between salaries, pensions: As Gov. Pat Quinn prepares his budget address for Wednesday, the president of the Illinois Senate says state workers might have to compromise between salary increases and pension benefits… “AFSCME’s at the table. They know that. How can they ask for a pay raise for their salaries when they know all of the extra money the state will be bringing in this year as a result of normal growth will go to pensions?” he said.

* Quinn to call for spending cuts, action on bills: But it’s not clear whether Quinn will present detailed proposals for solving those problems when he speaks Wednesday. Quinn aides said he will “lay out all the options” and “put the options out there.” Anderson did say Quinn is not counting on cutting pension costs in the upcoming budget and that the state will make its full contribution to the retirement systems for government employees.

* Quinn plans to cut state budget to 2008 levels

* Quinn Proposes $50 Million For Illinois Scholarship Program: Governor Quinn says he will close facilities and make cuts to other departments to cover the costs of the educational investments. St. Sen. Mike Jacobs says he wants to know where the cuts will fall, before he gives the governor his support. “If he’s going to make some additional dollars spent toward education, I want to know exactly what he’s going to cut,” said Jacobs.

* Editorial: You’ll know Quinn is serious if …

* Editorial: What Illinoisans need to hear in budget talk

* 8 things to look for in Quinn’s budget address

* Illinois Gov. Quinn Outlines State’s Budget Priorities

* Quinn’s budget speech could set stage for ‘ugly year’: “I can’t imagine he’s going to go down the road of closing correctional facilities because we are overcrowded,” said Sen. Larry Bomke, R-Springfield. “I felt that was an empty threat last fall.”

* Quinn’s No. 2 calls for cuts to her own budget

* Governor Pat Quinn to Announce Budget Plan: Senator Dave Syverson (R-Rockford) said, “If the talk is only about making the deep cuts and we never get around to really addressing the core problems, then I think we’re just going to continue to just exist as opposed to flourish like we really should be doing.”

* Frerichs expects Quinn to propose cutting regional superintendents

* Commission may decide fate of regional superintendents: “Nobody is aware of who we are and what we do. We constantly have to educate people about who we are and what we do.”

* Ill. treasurer suggests 5-year plan for facilities

* llinois school officials concerned about talk of shifting pension costs: Whatever costs Quinn wants passed along to the school district would sting. The Quincy School Board met last week to seek ways to eliminate $2.2 million in carried-over deficit in its Education Fund.

* Lottery retailers say online sales will be bad for business

  35 Comments      


Actually, it could be a whole lot worse

Tuesday, Feb 21, 2012 - Posted by Rich Miller

* Illinois Chamber President Doug Whitley gave Gov. Pat Quinn a C to a C+ grade for job creation policies so far. The governor took umbrage

Quinn responded that he believed the United Auto Workers would give him an A thanks to his role in convincing Chrysler to bring 1,800 jobs to its Belvidere plant.

Point taken, but considering that Illinois is almost always portrayed as the worst state in the entire freaking universe, an average to slightly above average grade from the state Chamber leader is comparatively positive.

* What Whitley wants

To that end, Whitley said that ahead of Gov. Pat Quinn’s budget address Wednesday, the Chamber of Commerce is highlighting five areas where the state needs to focus on making serious improvements. They include restoring fiscal integrity, reducing the cost of doing business, improving education and work force skills, investing in infrastructure and improving confidence in the state’s judiciary.

Thus far on making the necessary improvements, the Chamber’s leader gave Quinn a grade of ‘C,’ mainly because he said the jury is still out on the changes the governor has implemented. Yet he acknowledged Quinn has improved our situation in the last three years.

Whitley took a favorable view of reports that Quinn plans to call for a 9 percent cut in state spending over the coming year.

“I would think that would be significant,” he said. “If that’s what comes through, that would set the right tone.”

* But this is a recommendation too far

Whitley did praise the governor for identifying economic development as a priority, and especially for putting renewed focus on generating more trade between Illinois and the rest of the world. But he says Quinn “gets a really low grade on fiscal policy.”

“The situation is not terribly different in Illinois than the situation in (debt-crippled) Greece,” Whitley said. “We are going to have to do things that aren’t terribly popular — but it’s the only way to turn this state around.”

Um, Doug, the Greek unemployment rate rose to almost 21 percent in November following months of severe austerity measures, according to the latest reports. Spanish unemployment is almost 23 percent after huge budget cuts. If Greece and Spain have taught the world anything, it’s that you can’t slash your way to prosperity.

Granted, cutting the Illinois budget by a similar amount would have a lesser impact on the economy than slashing a federal budget. But it’s still gonna hurt, and it’s a bit unseemly to be so glib about the coming cuts (which we’ll discuss in another post).

  41 Comments      


Protected: *** UPDATED x1 *** SUBSCRIBERS ONLY - Supplement to today’s edition and a big campaign roundup

Tuesday, Feb 21, 2012 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Tuesday, Feb 21, 2012 - Posted by Rich Miller

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Reader comments closed for the holiday weekend

Friday, Feb 17, 2012 - Posted by Rich Miller

* Eilen Jewell is playing at next Friday’s Bedrock 66 show in Springfield. I’ll be there. So, go buy your tickets now before they’re all sold out because I hear they’re starting to go fast. Jewell has a silky smooth voice and songwriting skills that will give you chills, man. I swear

No one ever said it would always be good
And if they did they were just wrong

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More progress reported in Sen. Kirk health update

Friday, Feb 17, 2012 - Posted by Rich Miller

* From the Rehab Institute of Chicago…

Dr. Richard L. Harvey, Medical Director of the Rehabilitation Institute of Chicago (RIC) Center for Stroke Rehabilitation today provided the following update on Senator Kirk’s condition:

“Senator Kirk is adapting well to the rehabilitation program. This week he started walking exercises on a treadmill and is performing an increasing number of routine tasks independently. We are pleased with his progress.”

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LG Simon, Sen. Hutchinson to hold “pole tax” press conference

Friday, Feb 17, 2012 - Posted by Rich Miller

* Sen. Toi Hutchinson’s proposal to tax admission fees to strip clubs will get even more visibility today when Hutchinson and Lt. Gov. Sheila Simon hold a joint press conference in Chicago. The embedded video below will begin around 1:45 pm, brought to us by our good friends at BlueRoomStream.com

…Adding… If you have any problems with the embedded live video, click here.

…Adding More… Raw audio of the newser…

…Adding Still More... Video of the presser, courtesy of BlueRoomStream.com…

* Here’s some background while you wait

Alfred Ronan, who lobbies on behalf of the Illinois Club Owners Association, said the group opposes the legislation.

“What do the clubs have to do with abused women?” Ronan said. “I don’t want to make light of it, but we just don’t get the connection.”

Illinois is not the first state to look at exotic dance outlets as a source of revenue.

A law similar to the Illinois legislation was upheld by the Texas Supreme Court last year. Officials there say the new tax could bring in as much as $44 million.

A number of cities also have discussed imposing a pole tax, including Minneapolis and Phoenix.

It also isn’t the first time Illinois has considered taxing adult-related products. In 1997, former House Speaker Lee Daniels, R-Elmhurst, floated the prospect of a special tax on pornographic magazines to raise money for schools. The measure went nowhere.

  15 Comments      


Protected: SUBSCRIBERS ONLY - Campaign news and a roundup

Friday, Feb 17, 2012 - Posted by Rich Miller

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*** UPDATED x1 *** Question of the day

Friday, Feb 17, 2012 - Posted by Rich Miller

* If Gov. Pat Quinn wanted to stir up all the bad memories of the income tax hike again, he’s done a terrific job by nominating former Rep. Bob Flider to run the Department of Agriculture. From the Tribune

Of course, to think this pattern is anything but payback, you need to be (1) terminally gullible and (2) convinced that Illinois’ gene pool of citizens fit for cushy public jobs is dominated by lame duck Democrats who awakened that fateful 1/11/11 just itching to flip-flop on a monumental tax vote.

Our hearts go out to the Quinn spokespeople who have no choice but to keep saying that the tax vote had nothing to do with the governor’s appointments, and that all these Democrats are uniquely qualified to again be public payrollers. You’re supposed to think these are just Quinncidences.

The curious pattern started three days after the tax vote when Quinn appointed ex-lawmaker Careen Gordon to a seat on the state Prisoner Review Board. Gordon — like Flider, she had campaigned against Quinn’s tax hike proposal — also lost her re-election bid in November 2010. She soon approached Quinn about the board job, they talked again in December, she delivered for the governor in January and, well, you know. […]

We hope Senate President John Cullerton — even after his members get past the March 20 primary — tells Quinn he won’t be party to using taxpayer money, raised by a tax hike, to reward Democrats who voted for that tax hike.

If Careen Gordon was too hot for the Senate to handle, so is Flider.

Think, senators, about how complicit you want to be in this.

*** UPDATE *** I hadn’t seen Senate GOP Leader Christine Radogno weigh in on this yet. So I asked her spokesperson for a comment…

It’s a disturbing pattern that once again looks like a payoff for an income tax vote. It’s actually insulting to the taxpayers to think that they would forget about it just because a few months have passed.

[ *** End Of Update *** ]

* The Question: Should Gov. Quinn withdraw Bob Flider’s nomination? Take the poll and then explain your answer in comments. Thanks.


  44 Comments      


Some Schnorf love

Friday, Feb 17, 2012 - Posted by Rich Miller

* Earlier this week, Gov. Pat Quinn’s budget director testified to the Budgeting for Results Commission. According to Jamey Dunn at Illinois Issues, David Vaught told the commission that state revenues would grow faster than earlier believed

Vaught did not give specifics on how the numbers would change before Quinn’s budget speech, which is scheduled to take place in a week, but he said revenues are “trending up.”

* But our old friend Steve Schnorf is on the commission and he had some words of caution for Vaught

Steve Schnorf, a member of the Budgeting for Results Commission and a former director of the Bureau of the Budget under former Gov. George Ryan, warned against a repeat of the fight over revenue estimates that happened last spring as lawmakers started the budgeting process for the current fiscal year. The House created a smaller estimate that the Senate and Quinn disagreed with, but that was what the budget was ultimately based upon. “Starting with an agreed upon revenue number … creates buy-in from all the players,” Schnorf said. “I think that buy-in is important.”

* Vaught’s excuse was a bit weak

Vaught said that the three-year projection created last year was done hastily and that his office was “a little uncertain” about the revenues that the then newly passed income tax increase would bring in. He said the estimate this year is much more certain.

* Even so, Schnorf is fairly optimistic about the new commission he sits on

Schnorf said that plans like Budgeting for Results aren’t new. “Most administrations have an initiative of some sort like this,” he said. “You go back through the last 30 years of press clippings and you would find initiatives like this announced by administrations.” But Schnorf said he thinks Quinn and lawmakers are committed to make the program work, and he predicted it would not become “sizzle rather than steak.”

* But he also warned that if lawmakers want to reward results, they would most likely have to penalize the failure of otherwise popular programs

Schnorf warned lawmakers that if they focus only on tangible goals when making decisions and have an eye for programs that are measured as successful, they might not like the budgeting outcomes. He said that public schools, for example, may not rate as high performers and asked lawmakers: “Does that mean we should take the money away from them and invest the money somewhere else that has a better return on investment?”

* And always bear this in mind

“In a time of scarcity, the only way you can reward someone for performing well is by punishing someone else,” Schnorf said. “Every dollar you spend is a dollar you don’t have. You have to take it from somewhere else.”

We need lots more people like Steve Schnorf either in or advising this government. He’s a state treasure. And he’s absolutely right about this budgeting for results stuff during a time of scarce state resources. Difficult choices are ahead.

I usually try not to get too close to Statehouse types. Yeah, it can be lots of fun hanging out with them after hours whilst I troll for stories at the various watering holes. But Schnorf is one of the only people in this business who I’ve allowed to come to my home for gatherings of my non-political friends. He’s brilliant, has a wealth of life experience, can converse on multiple topics, knows more about music than most and my friends just love the guy. I don’t blame them. So do I.

…Adding… Related…

* Medicaid in Crisis Even Before Cuts: The Illinois Hospital Association and Illinois State Medical Society oppose Quinn’s plan to cut the rates doctors are paid. The state’s per-service payments already fail to cover the full cost of providing treatment. In dental care, for example, private insurance might pay about $75 for filling a cavity. For a Medicaid patient, the dentist receives about $30 from the state after waiting, sometimes for up to six months, for reimbursement. The result is a shrinking pool of doctors willing to treat Medicaid patients.

* Chicago teachers asking for 30% raises over next 2 years: Documents obtained by the Tribune show that in the face of Mayor Rahm Emanuel’s expansion of the school day, the union has led with an offer seeking a 24 percent raise in the 2012-13 school year and a 5 percent increase the following year, the net effect being 30 percent.

* State high court sides with CPS in dispute over teacher layoffs

* College Illinois! could get shot of taxpayer cash

* Sugar-drink tax to get Chicagoans, budget in shape?

* Illinois voters tend to agree with Obama’s mix of higher taxes, spending cuts - Tribune/WGN-TV poll also shows two-thirds support minimum 30% rate on highest earners

  25 Comments      


The Sears HQ layoffs are painful, but were inevitable

Friday, Feb 17, 2012 - Posted by Rich Miller

* OK, so Sears is run by a guy who has no real ties to Illinois and owns a hedge fund. People with those two characteristics should not generally be trusted for their geographic loyalty. So, when the company threatened to leave, it had to be taken seriously. If it had left after 160 years in Illinois, more than 6,000 direct headquarters jobs would’ve vanished and the resulting furor would’ve created some of the worst international publicity this state’s economic climate has ever experienced.

Sears is a company in trouble. It is downsizing, closing stores and cutting other jobs. The Hoffman Estates headquarters operation was never supposed to be immune from those cost-cutting moves, nor should it have been. When the state government starts micromanaging corporate operations… well, let’s just say we’ve got our own problems and they’ve got theirs.

Why was it obvious that Sears planned to cut HQ jobs? Because the formal agreement with the state in exchange for its incentive package required Sears to keep 4,250 at the headquarters - almost two thousand fewer than the 6,200 employed there right now.

* So, while I definitely feel for the 100 people who are about to lose their jobs at the Sears HQ, this was an inevitable move by a company struggling to get back on its feet and anybody who tries to tell you differently just doesn’t know what he or she is talking about

University of Illinois economist Fred Giertz said the layoffs were an embarrassment for the governor, though he said the company’s recent woes made them necessary.

“I’m sure they don’t like it and I’m sure the governor doesn’t like it, but it has to be,” Giertz said.

Even with the extra incentives help, Brathwaite said the job cuts were needed.

“These decisions are never easy, but they are necessary as part of our efforts to transform the company,” he said.

The choice facing state negotiators was simple: Lose some HQ jobs or all of them. The cost-benefit ratio of losing some of those jobs was already figured into the equation.

And keep in mind that if the company does go under, or employment levels fall below the mandated minimum, the state tax incentive money will be shut off.

  34 Comments      


Morning video

Friday, Feb 17, 2012 - Posted by Rich Miller

* It’s Friday before yet another three-day weekend. My back hurts for the first time in years. [Pain now gone.] Gov. Pat Quinn is in California, so we won’t have much news from him. The Chicago Tribune editorial page hat-tipped me this morning and I’ve got mixed emotions about it. Plus, I overslept and I have something in my eye that I can’t seem to rinse out.

But Nicky Hopkins’ piano work and Charlie Watts’ magnificent drumming on this tune can cheer any mood

I’m the man that brings you roses when you ain’t got none

Needless to say, we’re gonna have a light posting schedule today. I’ll have something of substance up in a bit. Until then, consider this a Friday open thread.

  30 Comments      


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* Selected react to budget reconciliation bill passage (Updated x3)
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* SUBSCRIBERS ONLY - Some fiscal news
* Isabel’s afternoon roundup (Updated)
* RETAIL: Strengthening Communities Across Illinois
* Groups warn about plan that doesn't appear to be in the works
* SB 328: Separating Lies From Truth
* Campaign news: Big Raja money; Benton over-shares; Rashid's large cash pile; Jeffries to speak at IDCCA brunch
* Rep. Hoan Huynh jumps into packed race for Schakowsky’s seat (Updated)
* Roundup: Pritzker taps Christian Mitchell for LG
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition (Updated)
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Selected press releases (Live updates)
* Live coverage
* Trump admin freezes $240 million in grants for Illinois K-12 schools
* Yesterday's stories

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