[Comments have now been opened.]
* First Jim Edgar, and now the governor’s very own hand-picked comptroller…
Gov. Bruce Rauner should give up his attacks on unions to help agree on a budget with Democratic lawmakers and end the spiraling crisis in Springfield, Illinois Comptroller Leslie Munger said Friday. […]
Asked if Gov. Rauner should stop targeting unions during a news conference in Moline Friday, Ms. Munger, said, “I don’t think it’s productive, I think we’ve got to work together, personally.
“I don’t think it helps to pit people against one another, to be completely honest,” she said. “I believe we need to be all working together to solve the problems in Illinois.” […]
She said the solution to the crisis was to cut spending and raise revenue. Both sides need to compromise, although there’s no sign of that happening at the moment, Ms. Munger said.
Although Ms. Munger said Gov. Rauner should stop attacking unions, she voiced support for the governor’s proposed reforms to tort laws and workers compensation. The goal in both areas is to reduce costs for businesses, she said.
* And speaking of Jim Edgar, Bernie caught up with him late yesterday…
The lack of a budget four months into the fiscal year has destabilized state government, and Republican Gov. Bruce Rauner should quit holding a state spending plan hostage to a list of demands because permanent damage is being done, former Gov. Jim Edgar said Friday.
“State government’s probably in the worst state it’s been in the 47 years that I’ve been around (it),” Edgar, a fellow Republican, told The State Journal-Register in an interview from his Springfield home. “You’ve got dozens and dozens of programs that aren’t being funded, agencies that are having trouble doing their mission, and I just think it’s very unfortunate.”
“We need a budget,” he added. “These other issues, they’re important, some of them I think more important than others, but you don’t hold the budget hostage to get those. … It has been very destabilizing for state government. I think a lot of people have suffered.” […]
“An unstable state government — and that’s what we have right now, very unstable — is a detriment to economic growth,” he said. “I mean, folks aren’t going to come to this state and make an investment if they think state government’s dysfunctional.” […]
“One of the strengths this state’s had for years is … a great higher education system,” he said. “I think that is in jeopardy now.”
There’s lots more, so go read the whole thing.
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* From a press release…
Governor Bruce Rauner today accepted the resignation of Abraham Lincoln Presidential Library and Museum Director Eileen Mackevich. Rauner appointed current ALPMA Chief of Staff Nadine O’Leary as Acting Director. A national search for a permanent replacement is underway.
I’ve known Nadine for longer than I can remember. She’ll keep it together while they look for a replacement.
* Illinois Times…
Mackevich resigned today after a meeting with top aides to Gov. Bruce Rauner.
“I resigned as of today,” Mackevich said. “I resigned for multiple reasons.”
Asked if she was asked to resign, Mackevich responded: “I can honestly say that it was a discussion that we had, and I chose to resign.”
Mackevich, who was the ALPLM’s longest-sitting director, indicated that there may have been differences of opinion with the governor.
Good riddance.
* Meanwhile, sources close to the administration say they anticipate Illinois Historic Preservation Agency Director Amy Martin will be terminated at the next IHPA meeting on Nov 2nd.
Again, good riddance. She and Mackevich fought constantly and, in my opinion, neither one was doing what should have been done to make that museum great.
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Company says it has a 19-year lease at JRTC
Friday, Oct 16, 2015 - Posted by Rich Miller
* Problems with the Thompson Center sale? Uh-oh…
Boston-based Winthrop Realty Trust and Marc Realty of Chicago, commercial real estate investors that own the rights to about 70,000 square feet of retail space in the glassy, 16-story state office building in the Loop… which controls the food court from which Rauner made the Oct. 13 announcement, says it owns rights to lease out the space to retail tenants for at least another 19 years. Winthrop and Marc represent a significant obstacle to the state’s plan to level the Helmut Jahn-designed structure and sell the prime development land.
“We have not been contacted by the state at all,” Winthrop Chairman and CEO Michael Ashner said today in an interview. “We’ve received no notification. We understand there’s enabling legislation needed to make this (Rauner plan) happen. Up until now, we were assuming it’s business as usual, which is why we’ve invested substantial funds in the property.”
Ashner said Winthrop and Marc have 19 years remaining on a lease with the state, in which the venture pays the state rent and in turn leases out the space to restaurants and retail tenants, Ashner said. At the end of the lease, there’s a 10-year extension option that the state could decline “if they were going to do a major redevelopment,” Ashner said.
You have a lease-holder and you never talked to the company before deciding to sell?
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Question of the day
Friday, Oct 16, 2015 - Posted by Rich Miller
* I have a bunch of errands that I absolutely have to run this afternoon, so I’m gonna be gone for a bit.
We’ve got a bunch of policy stuff on the blog today, so instead of a question, how about we talk baseball?
And, by the way, I hate the Mets, but that still doesn’t mean I’m rooting for the Cubs.
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Credit Unions – Individual service, united in focus
Friday, Oct 16, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
As locally-owned not-for-profit financial cooperatives, credit unions hold a strong belief in giving back to their communities. Twenty-three chapters across Illinois unite 303 credit unions and are integral to fulfilling the financial need for nearly three million consumer members.
The Rockford Area Chapter alone serves 11 credit unions and their 88,000 members in a four county area. Similar to other credit union chapters, Rockford strongly believes in supporting their communities and collaborates on a year-round marketing campaign to facilitate making a difference.
With October designated as National Breast Cancer Awareness Month, the chapter’s latest community effort will be to sponsor the 4th Annual Pink Party/Bra Auction. This event raises money for Pink Heals of Winnebago County, a local non-profit organization that helps families dealing with cancer. All of the money donated to Pink Heals will stay local, just like credit unions. The chapter’s sponsorship can also be seen in a Rockford firefighter calendar sale, with 100 percent of the proceeds donated to Pink Heals.
Giving back to their members, causes and the communities they serve – this is the credit union difference.
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* Today’s must-listen is from the Illinois Radio Network’s John Gregory…
“Government is failing,” by going this far into the fiscal year without a budget, former Gov. Jim Edgar was quoted as saying during a lecture to political science students at the University of Illinois-Chicago.
* Edgar continued…
“We can’t hold the budget hostage for other issues. The governor talks about economic turnaround, I think some of his proposals are good. But I think we have to set priorities, and the priority, I believe, is the budget.”
Edgar also said he was worried about widespread rumors that the budget won’t be worked out until the Fiscal Year 2017 budget is about to be introduced. That, Edgar said, would be “a disaster.”
* The written story is a quite a bit more tame…
“One of the things I’ve learned as governor, you can’t do everything you want to do at one time,” Edgar said. “You’ve got to set priorities and you’ve got to wait for the ripe opportunity, and I think the priority right now has to be to get a budget.”
Edgar labeled the current stalemate as perhaps worst “mess” he’s seen in his years following state government, and he guessed that if there was ever trust between Rauner and Democratic lawmakers, it “pretty well got wiped out” by the TV ads run by Rauner’s campaign committee in June.
When asked if he had any specific recommendations for Rauner, Edgar said he’s advised the governor to focus on the budget several times, but to no avail.
Former governors rarely criticize current governors, particularly those in their same party. This is not your usual story.
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“I’ve got $400 million at risk in our city”
Friday, Oct 16, 2015 - Posted by Rich Miller
* Shia Kapos…
Chicago hotelier Laurence Geller is agitated and disappointed by the Illinois budget morass, and he’s taking political leaders to task for it.
“Please, everyone, will you just grow up? I’ve got $400 million at risk in our city,” he says, referring to the value of his two Chicago hotels, the Waldorf Astoria and soon-to-open Conrad.
Particularly galling, he says, are budget cuts at Choose Chicago, the tourism promotion group that operates, in part, with taxes collected from hotel bookings. Unlike the vast majority of the state budget, in which spending either is automatic (bond payments) or mandated by court order (some social services), funds designated for tourism promotion have been frozen while the state operates without an approved budget.
That’s correct. And the hotel tax is not GRF, so it’s yet another hostage.
* Back to the story…
“I stay away from politics,” Geller says. “But now, whether it’s the mayor, the governor or the (House) speaker, I say, ‘Please, can we have money for tourism?’ The city needs taxes. The state needs taxes. But tourism gives you taxes.” […]
Geller says “the constant series of crises every year” makes it difficult to do business and that political leaders should know better.
If our leaders in this state listen to anybody, it’s the very rich. CME thinking of moving? Give ‘em a tax break law. Giant conventions upset about costs? Whack organized labor and override a veto to do it. A group of wealthy people want education reform? Give it to them on a silver platter.
Geller maxed out to Rauner’s campaign in 2013. So, maybe if some of Geller’s wealthy pals also speak up, things will start moving.
In other words, more like this, please.
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Point taken x2
Friday, Oct 16, 2015 - Posted by Rich Miller
* At first, I was just going to update an earlier post with this e-mail from Emily Miller at Voices for Illinois Children. But then I figured it was probably worth its own post…
“Continuing to sell lottery tickets with no plan to pay winners short of saying ‘we’ll owe you’ is not only another embarrassment for Illinois, it’s a threat to the state’s overall financial health,” Franks said. “The lottery funds a number of important services and generates economic activity in every corner of our state, and that will all disappear if the lottery looks more like a shell game than an honest wager.”
This is not new with the lottery.
Does Franks know that social service providers were told to continue services at last year’s levels, but they should not expect payment unless or until there is a budget?
We’ve been operating the main functions of the state with a string of IOUs since July 1st, asking non-profits to continue providing services and make payroll with only the vaguest of assurances that they will get paid someday.
Yeah, it’s embarrassing to not be able to pay lottery winners. But it’s more embarrassing to ask non-profits to go get loans and exhaust their lines of credit and reserves so that lawmakers and the Governor can buy a little more time to make each other look bad.
How about some outrage about that?
Point taken.
* Also, somebody else pointed out to me via text that, aside from the lottery money, those other special state funds in Rep. Moylan’s bill could be swept to help close the big hole in the GRF budget.
Point taken on that, too.
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Was, not is
Friday, Oct 16, 2015 - Posted by Rich Miller
* The Illinois Policy Institute via the Belleville News-Democrat…
Illinois collects more in taxes per person than every neighboring state, according to new research from the nonpartisan Tax Foundation.
But Illinois Senate President John Cullerton, D-Chicago, thinks otherwise. “Our taxes are dramatically lower than all the states around us,” Cullerton said on WTTW’s Chicago Tonight on Sept. 28.
Cullerton couldn’t be more wrong. Illinois collects $3,008 in state-tax revenue per Illinoisan, nearly $200 more per person than the highest-taxing neighboring state, Wisconsin. Only 13 other states in the country take in more tax revenue per person than Illinois.
Notice the tense of the words “collects” and “take in” within that report, which was published yesterday.
* OK, now look at the accompanying chart…
* Notice the year studied? Fiscal Year 2014.
Do you know what Illinois’ personal income tax rate was in FY 14? 5 percent. What is it now? 3.75 percent.
I don’t know how Illinois ranks now with its lower rate, but “collected” and “took in” would’ve been a far more accurate way to describe the comparison from two fiscal years ago. New study, yes. New numbers, no. But, hey, that’s just me.
Cullerton is wrong about where we currently stand on taxes, however. Indiana’s personal income tax rate is 3.4 percent.
* Look, I happen to agree strongly with the Illinois Policy Institute that we have some huge problems here and we most certainly need some economic reforms. I wouldn’t go as far as them, but I concede the overall point.
And mistakes do happen. I make them a lot myself and I try to correct them when I do. But, dishonesty is just not acceptable.
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Release some hostages, please
Friday, Oct 16, 2015 - Posted by Rich Miller
* From the synopsis of HB4305…
Makes appropriations to the Department of Transportation from the Motor Fuel Tax Fund for specified payments to local governments. Makes appropriations to the Illinois Gaming Board from the State Gaming Fund for distributions to local governments for admissions and wager tax, including prior year costs. Makes appropriations to the Department of the Lottery from the State Lottery Fund for payment of prizes to holders of winning lottery tickets or shares, including prizes related to Multi-State Lottery games, and payment of promotional or incentive prizes associated with the sale of lottery tickets. Makes appropriations from the Wireless Service Emergency Fund and the Statewide 9-1-1 Fund to the Department of State Police for the Statewide 911 Administrator Program and for costs pursuant to the Emergency Telephone System Act, respectively. Makes appropriations from the Wireless Service Emergency Fund to the Illinois Commerce Commission for specified emergency telecommunications purposes. Effective immediately.
Those are all special funds. Not a GRF dollar in there.
You’d think this would be a bipartisan effort. So far, it’s not. The Democrats need to do a better job of bringing the Republicans in, and the Republicans need to get on board this or a similar bill.
* From a press release…
State Rep. Jack Franks, D-Marengo, is calling on legislative leaders to hold a vote on a measure he is backing to restore funding for the state lottery and release funds promised to local cities and villages in order to prevent massive property tax increases as a result of Gov. Bruce Rauner’s budget veto.
“Continuing to sell lottery tickets with no plan to pay winners short of saying ‘we’ll owe you’ is not only another embarrassment for Illinois, it’s a threat to the state’s overall financial health,” Franks said. “The lottery funds a number of important services and generates economic activity in every corner of our state, and that will all disappear if the lottery looks more like a shell game than an honest wager.”
Working to correct a situation that has generated numerous national media stories and a lawsuit against the state brought by lottery winners, Franks is calling on legislative leaders to hold a vote on House Bill 4305 when the House meets on Tuesday, Oct. 20. The legislation provides appropriation authority necessary to allow the lottery to continue paying prizewinners. Lottery winnings are paid from a dedicated State Lottery Fund, funded through ticket sales, but the governor’s veto of the state budget negated the lottery’s authority to pay the prizes owed.
The Franks-backed measure would also release dollars that municipalities receive from gaming operations and other funds collected by the state that, by law, must be shared with local governments to help repair roads, maintain public safety and provide essential services to the elderly. While the state continues to collect these funds, the governor’s veto of the state budget is preventing them from being distributed as promised. Franks is fighting to release these funds before local governments are forced to raise taxes and eliminate essential services.
“Our towns and villages build their annual budgets in part on the promise that the state will share these funds, and when the state fails to keep that promise, taxpayers are going to pay the price in the form of higher taxes,”Franks said. “Muddling through a budget crisis is no excuse for Illinois to break promises. We need to pass this bill immediately and to protect our taxpayers and the integrity of our state.”
Lots of hyperbole in that release, of course. But, in the end, he’s not wrong.
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Busting an internet troll
Friday, Oct 16, 2015 - Posted by Rich Miller
* I just don’t know what these internet trolls are thinking. Can they not edit themselves? Do they have no idea that other people are reading their words and that their stupidity will reflect on themselves? Are they just complete morons? This guy was no civil service hire. He was a political appointee who contributed money to his future boss’ campaigns. And yet he just apparently loved spewing goofiness…
The same day Cook County State’s Attorney Anita Alvarez released an Internet ad formally launching her reelection bid, word came that one of her top deputies resigned over his Internet activity – crass Facebook comments he made about Michelle Obama, Hillary Clinton, the Rev. Al Sharpton and others.
Daniel Gallagher, the $153,000-a-year chief of the state’s attorney’s civil actions bureau until he quit over the weekend following questions from the Better Government Association and FOX Chicago, posted a Facebook comment on a photo of the First Lady meeting Pope Francis in September. Referring to her weight and appearance, Gallagher wrote, “I think Moosechelle was hiding a secret service agent in the seat of her dress.”
Commenting on an article that accompanied a photo of Clinton, who is running for president, Gallagher wrote on Facebook, “As Eddie Murphy would say, ‘Da ***** ugly!’”
Some of Gallagher’s posts were time stamped during regular work hours, but Alvarez press secretary Sally Daly said she didn’t know whether he was on the clock. […]
Reached by the BGA/FOX, Gallagher confirmed the Facebook posts were his and, on occasion, that he’s been on the social media site while on the clock for county government. He said he regretted some of his words, saying of the Michelle Obama remark, “I probably shouldn’t have done that.”
But he also emphasized he had a right to free speech.
* Gallagher most certainly has a right to free speech. But with rights come responsibilities and he definitely doesn’t have a right to a job. And he lost it.
But, perhaps you disagree.
And not to point out the obvious here, but what’s a guy like that doing on the payroll of the state’s attorney? Also, it’s more than a bit ironic that his job title was “chief of the state’s attorney’s civil actions bureau.” Those posts weren’t exactly civil.
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Your translation?
Friday, Oct 16, 2015 - Posted by Rich Miller
* Geiger…
The governor on Thursday said Chicago’s financial problems will push a budget deal in Springfield.
“I’m cautiously optimistic that we’re going to get (a budget) in the next 60 to 90 days, frankly, if for no other reason than Chicago needs help and I said I’m willing — I’m not going to do a bailout, but I’ll help Chicago solve its own problems by giving them the power to do it, but only if Chicago is helping us get reforms at the state. This is a two-way partnership … and Chicago needs help in December and January, big, big help,” Rauner said during an appearance in Quincy.
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Biss still a fundraising juggernaut
Friday, Oct 16, 2015 - Posted by Rich Miller
* Tribune…
Comptroller Leslie Munger, who faces a special election in November 2016, reported raising about $54,000 for the quarter and had $131,000 or so left.
On the Democratic side of that race, state Sen. Daniel Biss reported raising $268,000 in Q3 and had $1.44 million on hand. Chicago Clerk Susana Mendoza reported $204,000 raised in the quarter and $496,000 left.
So, Biss again raised more than both of his opponents combined.
Gov. Rauner appointed Comptroller Munger, and he’s expected to put whatever it takes into her race to win it. Even so.
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Today’s number: $270 million
Friday, Oct 16, 2015 - Posted by Rich Miller
* Bloomberg…
Chicago’s attempt to clean up a legacy of wrong-way bets on interest rates is costing taxpayers at least $270 million since Moody’s Investors Service cut its rating to junk in May, city documents show.
The payouts to Wall Street banks, which come as the Windy City considers a record tax increase to cover pension costs, are more than the city spends a year to collect garbage at 613,000 homes, and could cover the cost of hiring more than 2,000 police officers. The pain isn’t over yet as officials plan another round of debt restructuring that could cost $110 million to unwind derivatives on its water debt early next year. […]
Chicago and other municipal borrowers in the past decade made bets on the future direction of interest rates through agreements with banks to swap interest payments. But when rates fell under the Federal Reserve’s attempt to stimulate the economy after the financial crisis, many issuers ended up on the wrong side of the bets. Since then issuers have paid at least $5 billion to unwind the agreements.
The city is selling $439 million of bonds Wednesday, part of which will cover $70.2 million to end an interest-rate swaps tied to variable-rate debt for the city’s sewer system. That’s on top of $185 million paid to unwind swaps on general- obligation and sales debt since May. The estimated $270 million total also includes the cost to banks and other professionals to restructure, according to data Bloomberg compiled from city documents. Chicago owed as much as $396 million to banks in March, before the city started terminating the swap agreements, according to market values at the time. Chicago paid less than mark-to-market valuations, said Molly Poppe, a city spokeswoman.
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Another hostage
Friday, Oct 16, 2015 - Posted by Rich Miller
* The worst thing about developments like this one is that we’re not talking GRF money here. This fund is an innocent bystander…
On Oct. 31, the Southern Illinois Criminal Justice Training Program will run out of cash, said Director Mike Norrington. Seventy-five percent of the funding for the Carbondale-based training program comes from surcharges on traffic tickets. Like so many other funding streams, the cash isn’t available without a budget.
The Criminal Justice program provides much-needed training and certification – often state mandated – to 163 agencies within a 27-county swath, officials said.
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McCann primary opponent drops out
Friday, Oct 16, 2015 - Posted by Rich Miller
* Republican state Sen. Sam McCann is on the wrong side of his party caucus leader and his party’s governor, so I don’t know yet if this means the big dogs have another candidate in mind or if McCann is getting a pass because this release arrived in my in-box only moments ago…
—Sangamon County Assistant State’s Attorney Steve McClure has decided that he will not run for the 50th District Illinois Senate seat in 2016. McClure, a Republican, created an exploratory committee on September 16th, and recently concluded a 30-day listening tour across the district.
“I want to thank all of the incredible people that I had the chance to meet over the last few weeks,” said McClure. “I know that many people are going to be disappointed that I will not be a candidate in 2016. It recently became clear to the members of my committee, and to me, that winning a primary race against an incumbent Republican is a task that takes more than five months. If I were to begin a campaign in mid-October, it would already be too late. I did not want to have wonderful people volunteering their time, donating their money, and working hard on my behalf if I knew in my heart that, for the campaign to be successful, it should have been launched much earlier.”
McClure will be returning to the Sangamon County State’s Attorney’s Office to continue fighting hard to prosecute felony offenses, protect victims, and help clean up the streets. He will remain actively involved in the Republican Party, and will continue to attend Republican events, support Republican candidates, and fight for the conservative principles and government reforms that are necessary to turn Illinois around.
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