Capitol Fax.com - Your Illinois News Radar

Thursday, Mar 1, 2012 - Posted by Rich Miller

* From the Department of Employment Security…

Illinois added 3,800 jobs in January and the unemployment rate fell -0.3 to 9.4 percent, according to preliminary data released today by the U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security (IDES). This is the fifth consecutive monthly decline and the largest decline since September 1992. The data is seasonally adjusted.

“January adds another month in the long-term trend of putting people back to work,” IDES Director Jay Rowell said. “Adding private sector jobs in 21 of the past 25 months and recording the largest monthly decrease in the unemployment rate in nearly 20 years is progress that people can see.”

Illinois has added +122,900 private sector jobs since January 2010 when job growth returned to Illinois after 23 consecutive months of declines. Since January 2010, leading growth sectors in Illinois are Professional and Business Services (+66,400); Educational and Health Services (+29,700); Manufacturing (+26,000); and Trade, Transportation and Utilities (+17,800). Government has lost the most jobs since January 2010, down -24,700.

Historically, the national unemployment rate is lower than the state rate. Only seven times since January 2000 has the state rate been lower than the nation’s. That period includes times of economic expansion and contraction. In January 2012, the number of unemployed individuals was down for the fifth consecutive month, decreasing -18,100 (-2.8 percent) to 620,300. Total unemployed has declined ‑132,500 (-17.6 percent) since January 2010 when the state unemployment rate peaked at 11.4 percent. The rate identifies those who are out of work and seeking employment. A person who exhausts benefits, or is ineligible, still will be reflected in the unemployment rate if they actively seek work.

Educational and health services led the January declines with 5,800 job losses, followed by 3,200 in the “Trade, Transportation, & Utilities” segment. Government jobs fell by 1,900. Top gainers last month were professional and business services (7,700), leisure and hospitality (3,600), financial activities (3,500) and manufacturing (2,700).

* In related news, despite passing a major workers’ compensation reform package last year, House Speaker Michael Madigan thinks a more radical approach may be warranted: A possible privatization of the workers’ comp system…

“I was given the number of state workers that had filed workers’ compensation claims and it was an extraordinary number. A very large percentage of the total workforce had filed workers compensation claims,” Madigan said. ”If that is the case then it would be far more efficient to bring in an outside person, and take it out of the hands of the people doing it for the state today.”

Madigan didn’t call his privatization legislation for a vote yesterday, but he and his staff are taking a close look at the idea…

State employees’ claims of on-the-job injuries have grabbed headlines, like Menard prison guards getting millions of dollars for wrist injuries. There’s an ongoing federal probe into that. But Madigan’s staff did a study of its own. They compiled claims filed by state workers in prisons, veterans’ homes, and facilities for the mentally ill and developmentally disabled. Then compared it with the percentage of claims filed by employees of private nursing homes and hospitals.

According to the Speaker’s top legislative aide, the gap between the two was substantial.

“My concern is that there’s just a culture or an environment among some, some state workers, that would encourage work comp claims when they’re really not warranted,” Madigan said.

* And Gov. Pat Quinn crowed about an improved business ranking by the state today via press release…

Governor Pat Quinn today announced that the state of Illinois and Chicago have been named among the top 10 locations for new and expanded corporate facilities. Illinois ranked seventh among states, an improvement over last year’s eighth place ranking, and Chicago second in the metropolitan areas category in the annual analysis by Site Selection magazine, one of the nation’s premier corporate real estate and economic development publications. […]

In 2011, Illinois had 216 corporate facilities locate or expand in the state. Illinois joins Ohio, Texas, Pennsylvania, North Carolina and Georgia on the list of the top ten states with the most locations and expansions. With 167 projects, the Chicago-Naperville-Joliet metro area ranked second on the list of cities in the tier one, top ten metropolitan areas list. Illinois companies that have relocated or seen significant expansions this year include Ford, Motorola Mobility, Continental, FedEx, Chrysler and Mitsubishi, among others.

From the magazine…

Site Selection’s Governor’s Cup ranks the 50 states according to their success in attracting capital investment projects that meet one or more of these three criteria: a minimum investment of US$1 million, creation of 50 or more new jobs and new facility construction or floor space of at least 20,000 sq. ft. (1,860 sq. m.). The magazine does not count equipment upgrades or additions nor construction jobs in its final numbers.

Despite the 7th place finish, Ohio, Texas and Pennsylvania’s new projects were more than double Illinois’.

The Chicago area, however, finished second in the nation for large metropolitan regions, behind Houston and ahead of Pittsburgh.

* Related…

* ADDED: Legislation aimed at Cellini management deals

* ADDED: Proposal would get abandoned houses back on market quicker

* Quinn lifts hold on Illinois hospital tax rulings: Illinois Gov. Pat Quinn is sticking to his deadline and authorizing the Department of Revenue to resume decisions that could strip some nonprofit hospitals of valuable tax exemptions. At least 17 Illinois hospitals and health systems are awaiting decisions on the tax-exempt status of property.

* Gov. Quinn lifts moratorium on state review of hospital property taxes: Gov. Pat Quinn on Thursday drew a hard line on negotiations with the state’s hospitals over how much free care they must provide to qualify for tax breaks, lifting a moratorium on the Department of Revenue’s review of hospitals seeking charity-care exemptions on their property taxes… “While the department expects to move promptly on pending applications, it will continue to support the governor’s efforts to work with hospitals, patient and community advocates and local governments to find a long-term meaningful solution that meets Illinois’ Constitutional mandate,” the statement said.

* Statement from President Preckwinkle on Governor Quinn’s decision to resume the decision-making process regarding hospitals seeking property tax exemptions based on charity care: “I want to commend the Governor’s decision today. This is an important public health issue that impacts many of our most vulnerable citizens. I look forward to continuing to work on a negotiated bill on Charity Care and hospital tax exemptions with all interested parties.”

* Peotone airport group decides to have some fun, but remains hopeful: On the agenda of the Abraham Lincoln National Airport Commission board session: a resolution to name the first passenger terminal after late Northwest suburban Congressman Henry Hyde and the proposed airport’s entrance after Bensenville’s former mayor, the late John Geils, and Elk Grove Village Mayor Craig Johnson.

* Rahm’s jobs plan is real; but is it big enough?

* City’s NATO/G8 chief has some advice: Chill out, already

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Cassidy in the spotlight… Again

Thursday, Mar 1, 2012 - Posted by Rich Miller

* One of the most active state legislators so far this spring is Rep. Kelly Cassidy, who is involved in a high-dollar Democratic primary race against Paula Basta. Rep. Cassidy has mastered the art of getting publicity for liberal legislation this year, which will definitely help her with her campaign. Her district is quite liberal and staunchly Democratic, so this stuff is red meat for her constituents…

All purchases of firearms ammunition in the state would be subject to a new 2 percent sales tax to help fund trauma centers under a bill (HB 5167) passed by a House committee Wednesday.

A lobbyist for the Illinois State Rifle Association called the measure “an unconstitutional poll tax.”

The bill passed on a party-line vote in a committee dominated by Chicago Democrats.

The new tax would raise an estimated $800,000 to $1.2 million annually, according to sponsor Rep. Kelly Cassidy, D-Chicago, “for the fight against gun violence.” Money would be deposited in a new High Crime Trauma Center Grant Fund.

The Executive Committee approves bills like these just to get them to the floor. But it’s really not important whether this bill passes, it’s important that it gets noticed by the folks back home. Cassidy has also pushed a gay marriage bill this spring and is behind several other high-profile bills like the one we debated yesterday.

I’ve teased Cassidy about her slew of bill sponsorships in person, and she insists that she fully supports the policies. That’s undoubtedly true. She’s not pushing bills she opposes. But she is focusing on some of the highest profile legislation in the House right now, so there’s really no way to deny that this isn’t also political. She’s simply working the tried and true program for anyone in a tough race, and doing it better than many.

Some of Cassidy’s other gun bills are detailed here.

* And speaking of guns…

Handguns would have to be registered and a new tax would be imposed on ammunition sales under bills approved Wednesday by the Illinois House Executive Committee.

With Democrats voting “yes” and Republicans “no,” the committee approved House Bill 5831, which requires handgun owners to register their weapons with the state. The bill is an initiative of Chicago Mayor Rahm Emanual. […]

Felicia Davis, Emanuel’s first deputy chief of staff, said most guns used in crimes in Chicago come from Illinois, but outside of the city. A handgun registry will help law enforcement trace guns used in those crimes, she said.

“The city of Chicago already has a handgun registry, but with a majority of illegal handguns arriving from elsewhere in the state, Chicago’s gun laws are only as good as those for the rest of the state,” Davis said. “This is not about restricting the rights of law-abiding gun owners.” […]

“Criminals don’t care if they register guns,” said Rep. Mike Tyron, R-Crystal Lake.

* Related…

* Gun-rights groups decry proposed surtax on Illinois ammo sales

* Illinois Politicans Debating New Ammo Tax: National Rifle Association lobbyist Todd Vandermyde likened the proposal to a poll tax, and a Republican on the committee, State Rep. Ed Sullivan (R-Mundelein), said since you cannot purchase ammunition in Chicago anyway, Cassidy is just trying to tax the suburbs and Downstate to help trauma centers in Chicago. Cassidy denied the centers would necessarily be in Chicago, but Sullivan responded, “That’s the reality of the state of Illinois.”

* Texting-on-a-bike bill irrelevant Downstate, says some lawmakers: State Representative Kelly Cassidy of Chicago is a supporter of the bill. She says while parts of the state don’t have the traffic like Chicago does it’s still a good precaution.

58 Comments

Some budgetary red herrings

Thursday, Mar 1, 2012 - Posted by Rich Miller

* The uproar over the legislative scholarship issue has many members on the defensive. And, so, we get proposals like this one…

Children of public university employees would no longer receive breaks on their college tuitions under a bill approved Wednesday by the Illinois House Executive Committee.

Children of university employees get a 50 percent break on their tuition if their parents work seven or more years for a state university, under current law. […]

[Rep. Luis Arroyo, D-Chicago, sponsor of House Bill 5531] said the practice costs the state about $387 million a year. That money could be used to cover other state expenses, he said. […]

“We consider this an earned employee benefit,” said Dave Steelman, representing Western Illinois University. “The program is mainly used by employees who need it the most. More than 60 percent of the waivers are for lower paid civil service and clerical employees.”

Waivers usually are not actually funded. The universities just eat the cost. And while this bill is generally reactive in nature, the point is well-taken that universities are giving out a heckuva lot of these waivers.

* The other day in comments, some predicted that legislators would line up to issue press releases denouncing Gov. Pat Quinn’s budget for funding pay hikes for legislators, statewides and top administration officials. The commenters were right, of course. Here’s just one of them…

With Governor Pat Quinn’s proposed 2012 budget calling for more than $250,000 in pay increases for state leaders, State Representative Kent Gaffney (R-Wauconda) says he is working on legislation to reverse the maneuver.

Word of the pay raises comes on the heels of Quinn announcing deep cuts to state programs, facilities and jobs that total hundreds of millions of dollars.

“I vehemently oppose any proposal that would allow our State Legislature and other constitutional offices to receive a pay increase this year,” said Gaffney. “While we are a long way from May and a final budget, pay raises for lawmakers must be taken off of the table immediately. To address this I am currently drafting legislation to ensure that Quinn’s proposed pay raises will not be implemented.”

* Meanwhile, in more important budget news…

Members of the mental health community claim Gov. Pat Quinn’s proposed $53 million spending cut will cost the state in the long run, but Quinn and others say the cuts are needed to balance the budget.

Quinn’s cuts targeted services not covered by Medicaid, the state-federal health insurance program
for low-income individuals, and are not eligible for state and federal funding matches, said Kelly Kraft, Quinn’s budget spokeswoman.

Community “centers are able to use the remaining funds to maximize their purchase of Medicaid matchable care,” Kraft said.

But state Sen. Mattie Hunter, D-Chicago, said local providers are tapped out.

“It’s devastating,” said Hunter, chairwoman of the state Senate Human Services Committee.

This is gonna be a painful year all around, I’m afraid.

* Related…

* Masticating Medicaid

* Editorial: Illinois right to tackle fraud in Medicaid

* Commission Schedules Second Forum to Discuss Closure of Tinley Mental Health Center

* Lawmakers question Dwight prison closure: “One of the things that (the Quinn administration) has used in the past, and this appears to be another example of this, is to try to leverage support from people who know that Quinn’s fiscal policies are wrecking the state by essentially blackmailing their communities,” he said.

* Faculty and staff question Poshard about pension reforms

41 Comments

Question of the day

Thursday, Mar 1, 2012 - Posted by Rich Miller

* The setup…

llinois lawmakers would have a big role in labor negotiations with public employee unions if legislation sponsored by state Sen. Bill Brady, R-Bloomington, becomes law.

Senate Bill 3777 would require legislative approval of any contract or labor agreement reached between the state and a union. If the legislature rejects the agreement, the agency and the union would go back to the negotiating table.

Brady said Illinois has been burned by unilateral negotiations between the governor and labor unions.

“We need to bring transparency in an agreement so the General Assembly knows what it’s being bound to,” Brady said.

The law would sunset after Gov. Pat Quinn’s term ends. House Speaker Michael Madigan has introduced a resolution to cap state employee wage hikes.

* The Question: Do you support the concept of giving the General Assembly veto power over public employee labor contracts? Take the poll and then explain your answer in comments, please. Thanks.

Online Surveys & Market Research

56 Comments

On the ground in Harrisburg

Thursday, Mar 1, 2012 - Posted by Rich Miller

* Our old friend Jak Tichenor traveled to the devastated southern Illinois town of Harrisburg yesterday and left this comment on the blog last night…

Just got back from Harrisburg a few minutes ago. It’s a terrible mess on the city’s south-side. The storm tore a 200-yard path through residential neighborhoods and a strip-shopping center just before 5:00 this morning.

The shopping center was leveled like many of the houses nearby. The sirens sounded but I’m afraid a lot of folks were still caught by surprise in the dark and had no safe place to go. Incredible, heart-breaking scenes of destruction for blocks on end. I’ve seen these things before, but I am stunned by the ferocity of the winds and how utterly complete the destruction is in some places. Some of the houses I saw were just pulverized and their contents were strewn everywhere.

NWS initial estimates say it was an EF-4 with winds of 170-mph. The effort by first-responders from neighboring towns and cities has been terrific. There were dozens of ambulances and emergency vehicles from 30-to-60-miles away. Very heartening to see how people are pitching in everywhere to help their neighbors and friends. Red Cross and other relief agencies are on the scene offering assistance.

Gov. Quinn signed a state disaster declaration in Harrisburg this afternoon and has been in contact with the White House since this morning. We’ll have to wait until a more complete damage assessment is done before we’ll know if there will be a federal disaster declaration.

This was a bad one, folks. Please keep these people in your thoughts and prayers tonight.

* I’ll post some more photos from my brother Devin and some stories from across the country in our special ScribbleLive feed…

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*** LIVE SESSION COVERAGE ***

Thursday, Mar 1, 2012 - Posted by Rich Miller

* Blackberry users click here, everybody else can just kick back and watch…

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Thursday, Mar 1, 2012 - Posted by Rich Miller

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