* I suppose this happens when the President travels, but, man, the lack of any information about his speech this week has been frustrating…
Five days ahead of President Barack Obama’s visit to Springfield, residents were awaiting to hear details of when exactly he’ll address the Illinois General Assembly and what else he might do during his stop in the capital city. […]
The only activity [White House Press Secretary Josh Earnest] listed for Wednesday is the appearance before the legislature in Springfield.
“Now in the final year of his second term, the president looks forward to addressing the Illinois General Assembly about what we can do together to build a better politics, one that reflects our better selves,” Earnest said.
On Wednesday evening, Obama is scheduled to fly to the San Jose, California, area, where he’ll spend the night.
* I was able to get some information this afternoon, however.
The Capitol Building will be closed from 7:30 am until 10 am. But don’t even think about trying to get in early. They want an empty building.
The tunnels in the Capitol Complex will be closed from 7:30 until President Obama leaves.
The President will speak in the House chambers. There’s word that Obama might - might - do some sort of thing in the Senate afterward.
*** UPDATE *** The House Speaker’s office just sent out some more information…
* The Illinois State Museum closed last fall. The GA passed a bill to reopen it, but didn’t provide revenue. The governor rewrote the bill and announced he was all for it opening, but with private funding.
Press release…
Governor Bruce Rauner issued an amendatory veto today on SB 317 to reopen the Illinois State Museum while developing a model for funding that does not rely solely on state support.
The current bill as written is an unfunded mandate with no appropriations to support the Museum or its branch sites. The Governor’s amendatory veto instructs the Museum to partner with public and private third-parties to invest in the Museum’s mission.
In addition, the Governor’s changes to the bill authorizes the Director of Illinois Department of Natural Resources to establish entrance fees. Many of Illinois’ neighboring states charge admission at their respective museums.
I hereby return Senate Bill 317 with specific recommendations for change to develop a sustainable fiscal model for the continued operation of the Illinois State Museum.
The Illinois State Museum preserves and showcases the proud history of Illinois. The Museum helps educate Illinoisans of all ages on their unique heritage. As a research institution, the Museum is a leader in the advancement of not only Illinois, but U.S. and natural history. I support Senate Bill 317’s fundamental purpose of opening the Museum to the public again.
However, despite the good the Museum does, its operations are not fiscally sustainable. The State invests more than $6 million per year, despite attendance of only 200,000 visitors per year. When the General Assembly failed to pass a balanced budget for Fiscal Year 2016, our Administration was required by the Illinois Constitution and our responsibility to taxpayers to take whatever steps we could to cut non-essential costs. While the State is in the midst of a crisis caused by decades of fiscal mismanagement, as long as this bill fails to offer any plan to help the Museum become self-supporting, it is just an empty and broken promise to the taxpayers of Illinois.
But there is a path to sustainability. I propose not merely re-opening the Museum while continuing its status quo, but re-energizing its operations and partnering it with other public and private entities to make it truly self-supporting and to relieve the fiscal burden to taxpayers.
* Decades of fiscal neglect did far more damage than Gov. Rauner did, but his comments sure didn’t help…
The Chicago Public Schools paid more to borrow less because of Gov. Rauner’s continued talk of bankruptcy — and if that was the governor’s intention, it’s “shameful,” Mayor Rahm Emanuel said Friday.
“The governor is well-versed in finance, coming out of private equity and the financial world. His comments weren’t helpful. … It affected certain things. … If it was intentional, it’s shameful. Only he can answer whether that was the purpose,” Emanuel said, two days after CPS was forced to pay an 8.5 percent interest rate. […]
“The state under his leadership … is now up to $7 billion in unpaid bills and growing. That’s not exactly who you would turn to for financial stewardship and leadership,” Emanuel said of the governor’s threat to take over Chicago Public Schools.
Emanuel defended the costly borrowing — and the $100 million in budget cuts that helped reassure skittish investors — as essential to keeping the school doors open until the state school aid formula can be rewritten, as state Senate President John Cullerton (D-Chicago) has promised to do with Rauner’s help.
* Meanwhile, in related news, I received this e-mail the other day…
Rich, hope you’re well. Wanted to run something by you that might be of interest for the blog. We were researching some of Sheriff Dart’s advocacy during his days in the General Assembly and stumbled upon his floor speech from the 1995 CPS battle, which of course resulted in reforms that many believe to be responsible for today’s CPS fiscal crisis.
Starting on Page 89, it was interesting to see how prophetic Dart was about the ramifications about the bill. Looks like a few others had similar messages as well. But below are a few choice quotes from him during the floor debate. We found it particularly interesting since history is sort of repeating itself, with Republican legislators outside of Cook County introducing a sweeping bill meant to “save” CPS.
“That is one of the hollowest, lamest definitions of collaboration I have ever heard in my life. This is what was…should be called was foisted on people. There was not one, absolutely one, not one elected official from the City of Chicago invited to one of these closed door meetings. Not one. Our children are at stake here, not yours.”
“You’ve set up a system that’s going to fail and you know it.”
“I am so terribly touched by all of your concerns. This is outrageous. You know it, I know it. You are forcing this on the people of the City of Chicago so you know, what do we have here? We have a plan, a very flawed one, that was drafted by you, not us. Drafted by Republicans. There was not one Chicago elected official invited or present during any of these meetings, This was drafted behind closed doors.”
“I have been so sick and tired of hearing you and your garbage over there about the Chicago public schools. Well guess what, the years of that are over. The years of hearing about the dropout rate and the reading scores, they aren’t our problem anymore. The years of hearing people making such irresponsible statements about this being a sewer are over because guess what Representative, it’s your sewer now. You’re the one that drafted this plan. This is your plan, not ours and so the problems are sitting at your doorstep, not ours, so get used to it. We are giving you time, you’ll have your four years, but don’t come to us and complain about our schools now because this is your plan and your sewer as you like to call it. So enjoy living in it.”
Spread the word. Folks should refuse to take this phony poll. Below is a sample of a phone call received from a Local 31 member:
Call from a local leader re phone survey she believed came from the Governor’s Office:
just received a call from I believe Rauners office asking me about the union informing me about contract negotiations. He wanted to know my stance on paying dues, am I for unions and will I strike. He wanted to know how do I feel abou medical & merit comp. He asked a lot of personal questions and wanted to know my name which he already knew and asked to speak to me by my full name.
He asked me how much of my salary was I willing to go without.
It is recommended that you do not answer these questions.
In Solidarity
Lori Gladson
President, Local 51
* A reader forwarded me that e-mail and said he had also received the call. I asked for details…
Received a call at 6:13 pm yesterday from a [redacted] number. I’m in [redacted], so I answered. They confirmed my name, that I was a state employee, and represented by AFSCME. I assumed it was a poll commissioned by AFSCME, since they had all this information. I agreed to answer their questions believing it was an AFSCME poll (dumb, I know). The first few questions regarded opinion of the Governor (very unfavorable), opinion of AFSCME (favorable), opinion of state finances (very dire), etc. They then asked about my willingness to strike (refused to answer), how much money I would be willing to give up for a strike (refused to answer), how often do I hear updates from the union (once a week), do I believe the union is representing me well (yes). They then confirmed my name, which I found odd because they stated my name at the beginning of the call. They asked my “position”.
When I started getting suspicious (around the time of the strike questions), I asked who the poll was for. The poller stated that he didn’t even know who it was for. I confirmed that my name would not be used with my answers, and he agreed. The call lasted 9 minutes. Needless to say, I became more and more uncomfortable as the night wore on and wish I had refused to answer any of the questions.
I convinced myself that the Governor’s office wouldn’t share my personal information (phone number) with a polling agency for political reasons. Now I’m not so sure.
Shortly after receiving the call, I started going through the comments on yesterday’s AFSCME posts on the blog looking for anybody mentioning something similar, but found none.
Then I received the forwarded email this morning. Crap… Hopefully we’re just paranoid….
PHONY POLL: Company tied to the Raunerites is using a phony “poll” to pressure state employees to make negative statements about our union. YOU DO NOT HAVE TO TAKE THIS CALL. If you get it, you can just hang up immediately.
Anyone else get this call?
*** UPDATE *** From the governor’s office…
Hi, Rich:
The administration is not aware of this survey and has nothing to do with it.
Best,
ck
* From a reader…
Rich-
This may or may not be a coincidence. I am a county official, and received this FOIA request at the end of January.
The e-mail…
From: Research Policy [mailto:research@illinoispolicy.org]
Sent: Wednesday, January 27, 2016 3:19 PM
Subject: Illinois Policy FOIA 1.27.2016
To whom it may concern,
This is a request for information under the Illinois Freedom of Information Act (5 ILCS 140).
I am seeking documents related to the number of and names of (redacted) employees who are union members with the name of their affiliated union and residential zip codes.
As I am a researcher acting in the public interest, I ask that you waive any fees. Please notify me by telephone at 217.528.8800 or by email if you have any questions regarding my request. If possible, please forward the requested document(s) by e-mail.
I will expect to receive your response within five business days, as required by the statute (5 ILCS 140/3(d)).
Thank you very much for your assistance.
Chris Andriesen
Illinois Policy Institute
I’ve asked the Illinois Policy Institute about this. Stay tuned.
After delaying the sale when some investors balked, the district issued 7 percent debt for as little as 84 cents on the dollar, signaling that investors have doubts they’ll be repaid in full. No municipal borrower — not even cash-strapped Puerto Rico — has had to offer such a steep discount on a bond deal of that magnitude since at least the 2008 financial crisis, data compiled by Bloomberg show.
“The only time you’re going to see this big of a discount is when it’s a distressed situation,” said Burt Mulford, a manager of tax-exempt funds in St. Petersburg, Florida, at Eagle Asset Management, which oversees $2.5 billion of munis. He said he didn’t buy the bonds. “The ultimate buyers want to minimize the pain if it stops paying interest, so if they have the bonds at a discount, that would help offset that.” […]
The discounted price on the securities increased the yields — which measure the return after interest payments based on the full face value — to as much as 8.5 percent, about 5.8 percentage points more than top-rated securities. That gap was half a percentage point more than Puerto Rico paid in March 2014, when it sold $3.5 billion of bonds in a last-ditch attempt to stave off insolvency. The island’s bonds have since slipped from 93 cents on the dollar to about 70 cents as it edges closer toward defaulting on the government-guaranteed debt.
With distressed debt, buyers tend to focus more prices because of the risk that interest or principal payments won’t be made.
Juliana Stratton, who’s challenging state Rep. Ken Dunkin of Chicago in the Democratic primary, announced support from Secretary of State Jesse White, Cook County Board President Toni Preckwinkle and Karen Lewis, president of the Chicago Teachers Union.
Stratton is the union-backed challenger to Dunkin, who has created controversy by siding with Republican Gov. Bruce Rauner on several initiatives that have denied Democrats their 71-member veto-proof majority in the House.
Allies of Rauner are helping to fund Dunkin’s re-election. But Democratic opposition to Dunkin is coalescing. Stratton also is getting the backing of several aldermen, including Brian Hopkins, 2nd; Pat Dowell, 3rd; Leslie Hairston, 5th; Rod Sawyer, 6th; Michelle Harris, 8th; and Brendan Reilly, 42nd. The Rev. Michael Pfleger of St. Sabina Catholic Church also is backing Stratton.
Subcribers have video of the event as well as other stuff.
In announcing his support for Stratton, White said Dunkin has failed to represent his district by opting not to vote for a bill to restore funding for childcare for low-income families. […]
“I always say when you take on a job, you take on the responsibility for everybody,” White said. “In the case of Ken Dunkin, he has been a big disappointment to me and to his constituents, to the people of the state of Illinois and to the people of the 5th District. The message is they can no longer afford Ken Dunkin.” […]
“When Juliana saw Rep. Ken Dunkin continuously side with Republican Bruce Rauner, she knew she had to stand up to speak for all of us,” [Cook County Board President Toni Preckwinkle] said.
Others questioned whether Dunkin is still a Democrat: “We did not elect Ken to go and represent the Republicans,” said Ald. Michelle Harris, the 8th Ward alderman who is running for Cook County Circuit Court Clerk. “Now if he wants to wear the shirt, I think he needs to change his seat.”
Others at the event to endorse Stratton included Ald. Leslie Hairston (5th), Ald. Brian Hopkins (2nd), the Rev. Father Pfleger and representatives from AFSCME Local Council 31 and SEIU Healthcare.
Today, I watched one of my political patrons join the political mob to lynch one of his own political children to make Madigan happy. The same Madigan that ran a Republican (McCarthy) against him when he first ran for office. Funny how time flies, but I guess with time and age we start to forget things.
So for all the years that I never said anything about the fact that there is not one Black contractor at the Secretary of State’s office, for all the years I wondered why a Black person could never get a supervisor’s job on the 5th floor besides being clerical, for all the years I defended him in the Black community from people who attacked him…
To see him stand up and participate in this attempted lynching one of our own, one that he raised, one that was a loyal member of the organization, one that helped put his kids through school! I am thoroughly disappointed and heartbroken. Whether he agreed or disagreed to allow Madigan to make you stick a knife in the back of one of our own organization members in unconscionable! And then he won’t even stand with you!
Did the Speaker ever say anything bad about John Bills? Then why you running to the front?
The State’s first-ever Employee Engagement Survey was a huge success, with 19,386 employees responding. State workers not only evaluated the State’s performance on workplace issues, but also provided suggestions on how we might improve training opportunities, the work environment, and other areas.
The Department of Financial and Professional Regulation had the highest response rate, with 73% of their employees providing input.
Over the next few weeks and months, we will be reviewing those ideas and implementing them where feasible. It is our hope that the results of this first survey will provide a baseline that we can improve upon in future years.
Thank you to all participating employees for making our first survey a resounding success.
The Tribune gives Ferro a bigger base from which to build the digital platform that would allow content creators to make more money for their efforts, something he’s long talked about, and tried, without success, to create at the Sun-Times.
But nearly everyone else wonders whether Ferro’s 16.5 percent stake in Tribune lays the groundwork for a final chapter in the consolidation of the daily newspaper market that has occurred elsewhere but left Chicago among a handful of two-paper towns.
“My hunch is these (papers) are soon to be consolidated—it’s just a matter of time,” says Chris Geier, partner-in-charge of Chicago-based Sikich Investment Banking. “They always tell everyone they’re going to operate autonomously. At the end of the day, though, they’ve got to capture the economies.”
– A costly newspaper app was ordered up that for months sucked time and talent into its making. It was quickly dismantled once it was discovered it couldn’t make money.
– Launched Grid, a business publication, insisting it was produced in print format as well as online. It was quickly dismantled.
– In a soul-crushing move, the entire photo staff was suddenly fired with management citing budgetary issues and movement into a new era of digital content. Small but talented video staff remained on board.
– Small but talented video staff laid off.
– Suddenly reversed a policy of no political endorsements in the middle of the gubernatorial campaign to endorse just one person in one race — a former investor.
– Sun-Times launched Early & Often, a political website which had sponsors, new ad content, sold-out political events and … it was dismantled. New sports and breaking news portals were also dismantled just weeks after cost was put into their development.
Ferro said the Sun-Times is in a “very healthy position now,” and discounted the idea that his dual ownership signaled Chicago would soon be a one-newspaper town.
“They’re different products,” Ferro said. “I see both products being around for a very long time.”
“As nutty and crazy as he is, Ferro has kept the Sun-Times alive,” said a source close to both companies. “You have to give him credit for that.”
* And Neil Steinberg is very upbeat about the future after meeting his company’s new top dog…
In the wake of Sun-Times owner Michael Ferro’s purchase of the largest single share of the Chicago Tribune’s parent company for $44.4 million, the Sun-Times’ staff gathered in the lunchroom and met the new chairman of our board, Bruce Sagan, who explained what the purchase means for us.
“The people involved in the last Sun-Times purchase believe in two newspapers,” he said. “There it is, a second voice.” […]
The Tribune is $400 million in debt, Sagan said. The Sun-Times has no debt.
“They took the deal because they needed the money,” said Sagan, the longtime publisher of the Hyde Park Herald, who used the money he made there to invest in the Financial Times, the New York Times, where he started the Chicago News Cooperative, and the Sun-Times. “If you are going to bet on something, better bet on us. They’re in disarray. He left us a growing institution.” […]
Someone asked about our web site. Sagan said it was terrible. Publisher Jim Kirk said it would be fixed soon. Someone asked about the Sun-Times’ future.
“If I have my way you’ll be here forever,” Sagan said.
Thank goodness that somebody over there has finally admitted the CS-T website is an abomination. Yes, it’s gotten a bit easier to navigate, but if you’re a content provider and you only display a few stories on each page, you’re not providing content. Stuff just disappears into the ether on that site. And years of stories are no longer available.
Addressing Tribune Publishing employees during a webcast Thursday, Ferro gushed over his new investment and outlined his vision for helping Tribune Publishing reverse years of industrywide revenue declines.
“It’s not as simple as one may think,” Ferro said. “It’s not about digital subscribers or print. Some of the biggest companies in the world are using our data and making billions of dollars on it, and we need to find a way how we tap into that so that our journalism remains stronger than ever.
Democratic lawmakers and Springfield insiders try to spread the blame for the state’s condition. Complacent Republicans are to blame. The Great Recession that ended in June 2009 is to blame. Rauner is to blame. It’s not the longtime speaker’s fault, they say.
But that’s malarkey. It’s in writing.
I don’t know any Democratic lawmakers or insiders who say the Speaker is not at fault and bears zero blame for any of this state’s past or current problems.
OK, except maybe Steve Brown.
Are Democrats defensive these days? Heck, yes they are. Do they not blame Madigan enough? Some do, but many are so angry at the governor right now that they’ve retreated to a very tight partisan corner and aren’t thinking clearly. Not making excuses, just passing along observations. I don’t at all think they’re right, I’m just sayin’.
* I have heard other folks try to blame everything on Madigan, and those same people do not want to admit that the governor has some fault here, too.
He’s been governor over a year, after all. He’s the state’s top elected official, not just some innocent bystander. And he made no bones about what he planned to do years before he was elected - and what we see all around us right now is pretty much what he said he was going to do.
It’s also been my experience that if you counter their “Blame it all on Madigan” argument with some basic facts you’re accused of somehow holding Madigan blameless, which is completely ridiculous and if it wasn’t such a childish retort would almost be McCarthyesque.
* Also, y’all really need to tone down the personal stuff in comments, particularly when it comes to the author of the above piece. You can disagree without being so darned disagreeable. Stick to the issues and the facts, please. Thanks!
The Illinois Republican Party is releasing a TV ad to support Rep. Avery Bourne. The ad will begin to air tomorrow morning, so feel free to post in on the blog.
The ad is attached.
Thanks,
Nick Klitzing
Executive Director
Illinois Republican Party
* Expect lots and lots and lots of lines like this in the coming months…
“She’s fighting to bust Mike Madigan’s Chicago machine and hold Springfield accountable.”
* Bourne is up against two GOP candidates, the former Libertarian Christopher Hicks and union backed candidate Dennis Scobbie, whose only reported contribution so far is $53,900 from the IEA.
The Board of Trustees at Chicago State University took steps at a special meeting today to officially declare financial exigency and prepare the University to continue operating in the absence of state funding. Like all public universities, CSU enters its eighth month with no funding due to the historic state budget impasse.
“The actions taken by the Board today are meant to give the administration of the University some additional flexibility as it works through this unprecedented situation,” Anthony Young, Chairman of the Board of Trustees said. “Over the past year, this University has made significant cuts to personnel and spending but has reached a tipping point where the ability to function is threatened. I want to be very clear, this action may help the administration manage this crisis in the short term, but exigency is by no means a solution to our budget woes. The only real solution is for the Governor and the leaders to come together and provide the necessary funding to avoid further damage to our universities.”
In declaring financial exigency, the Board is officially recognizing that the unforeseen fiscal situation compels CSU to reevaluate all programs, services and organizational structures in order to fulfill its core mission and to complete the current semester. In addition to declaring exigency, the Board established a Management Action Committee, which is chaired by the President of the University and includes senior members of the administration, who will continue the ongoing task of thoroughly reviewing all aspects of University spending and make recommendations on where additional cost saving measurers can be found. Lastly, the Board created an Advisory Committee, which will have faculty, staff and student representation and will give input to the Management Action Committee.
“We find ourselves in this unprecedented situation because, while the state has not honored its commitment to our students, we still intend to do so,” Thomas Calhoun Jr., CSU President said. “We are committed to finishing this semester and to graduating our seniors, and in order to accomplish that goal in the absence of state dollars or MAP grant funding, we are forced to take these extraordinary measures. I would hope the necessary but unfortunate steps we are taking here today will help all elected officials who represent public universities and care about higher education recognize that this is not just a Chicago State problem, it can and will affect the entire public university system. On behalf of our students who have bravely and proudly stood at the front lines of this crisis and fought for their university, I once again call on the Governor and the leaders of Illinois to put aside your political differences and take necessary action to prevent students from being the victims of this catastrophe.”
* Meanwhile…
February 4, 2016
To: The Honorable Governor Rauner
Senate President Cullerton
Senate Minority Leader Radogno
House Speaker Madigan
House Minority Leader Durkin
Members of the General Assembly
I am writing on behalf of the Higher Learning Commission (HLC), the regional accrediting agency for nineteen states, including Illinois. HLC is recognized by the United States Department of Education to assure quality in higher education and to serve as the gatekeeper to federal financial aid for students in our region.
As your role in Illinois includes consequential decisions regarding the governance and funding for colleges and universities, I am notifying you of the potential accreditation outcomes that may result from not approving a budget that will provide funding to Illinois colleges and universities and their students.
A criterion for accreditation is demonstration of the availability of financial, physical, and human resources necessary to provide quality higher education. HLC is aware that the colleges and universities in Illinois may need to suspend operations because financial resources from the state are not available. HLC is obligated to move swiftly to protect Illinois students and to ensure the quality of the colleges and universities they attend.
Following federal regulations, HLC has notified all Illinois colleges and universities that if they believe they will have to suspend operations or close in the next several months, they must provide HLC with a plan for how students can continue at another college or university to avoid eliminating their access to higher education. For students to continue at another institution, it could mean having to transfer to private universities or leave the state. It is also probable some students may drop out of college. The plan also must explain how students will be informed about this urgent situation, including how they access transcripts if operations have been suspended due to lack of state funding.
HLC’s analysis of that plan about the college or university’s viability in the weeks ahead could result in 1) a review of the college or university’s compliance with HLC’s Criteria for Accreditation, 2) a sanction – in which the college or university would have two years or fewer to demonstrate corrective action, or 3) withdrawal of accreditation. After such a withdrawal, there is a multi-year process for institutions to regain status with an accrediting agency. Students attending institutions that do not have status with an accrediting agency recognized by the federal government cannot access federal financial aid.
I served as a college president at two institutions in Ohio and know it is critical for state leadership to have every fact and potential outcome available. The lack of state funding is putting Illinois colleges and universities at serious risk and jeopardizing the future of students. I recognize the pain of budget shortfalls, especially in our home state of Illinois. The economic challenges the state faces are significant, and difficult decisions undoubtedly must be made. I am writing because I believe it is important for you to have all the relevant information before making the tough decisions that fall to your positions.
As you struggle with these difficult and life-changing decisions, if you have questions about the role of accreditation, please contact me.
Sincerely,
Barbara Gellman-Danley, Ph.D.
President, Higher Learning Commission
Emphasis in original.
…Adding… From the IBHE…
Statement from Dr. James Applegate, Executive Director
“The IBHE has been informed by Chicago State University that the Board of Trustees have declared financial exigency. They are taking steps to mitigate the financial situation on their campus in order to address the needs of their students, faculty, and staff.
The Board of Higher Education is keenly aware of the uncertainty the lack of a Fiscal Year 2016 budget is creating for Illinois college students, professors and staff at all of Illinois’ 48 community colleges and twelve public universities.
While IBHE has no direct role or authority in overseeing the actions of the CSU Trustees, we extend our support to the campus leaders as they seek to minimize the impact on their students’ academic progress.”
* Jonathan Kaye is a Republican candidate for the Illinois House running against incumbent GOP Rep. Reggie Phillips. Kaye hammered Phillips the other day for missing a vote on higher education funding, but that’s not what this post is about.
What I’d like you to do is read something that Kaye wrote about himself. Yes, it’s long, but it’s utterly fascinating. Kaye has lived a remarkably interesting life. And he wrote his story at a time when he was apparently being attacked by Rep. Phillips for his arrest record, which he explains as well.
I doubt that he has much of a shot in this campaign. He hasn’t raised much money. And he’s up against a super-conservative incumbent in a super-conservative area.
* Earlier this week, Democratic state Sen. Daniel Biss wrote an op-ed for Crain’s…
We need to look to economically successful states—Massachusetts, Minnesota and others—that have similar values and political traditions as ours in Illinois… If we sit down, work together and study these examples, I am confident the General Assembly and Gov. Rauner can come together to craft a reform agenda that puts Illinois on a path to fiscal stability and enhanced economic vitality.
I found these words very enlightening, as the governor and Republicans in Illinois agree with Massachusetts and the reforms they have made. I am left wondering why Democrats in Illinois cannot agree with Democrats in Massachusetts.
In 2011, Massachusetts Gov. Deval Patrick signed legislation that gave cities in his state greater collective bargaining flexibility in crafting more affordable health insurance packages for government workers. More than $200 million has been saved by this act—an act taken by a Democratic governor in a Democratic state.
Gov. Bruce Rauner’s proposal seeks to also give units of local government in Illinois the same abilities that Democrats in Massachusetts gave to their towns. Republicans in the General Assembly agree; Democrats in the General Assembly refuse to consider it.
Massachusetts property owners currently pay half the taxes that Illinois property owners pay. The governor’s proposal to deliver a property tax freeze with tools to control costs at the local level will help bend the curve toward lower property taxes across the state. Republicans in the General Assembly agree; Democrats refuse to consider it.
Finally, Massachusetts has the fourth lowest workers’ compensation costs in the nation. Even in such a liberal state, their workers’ compensation system is more competitive—in part because they have adopted reforms that ensure employers don’t have to pay for injuries that aren’t primarily work related. Gov. Rauner has proposed similar reforms in his workers’ compensation proposals. Republicans in the General Assembly agree; Democrats refuse to consider it.
Sen. Biss and members of his party refuse to negotiate on reforms that could save Illinois taxpayers hundreds of millions of dollars a year. Yet they continue to defend the failed status quo that has held Illinois back from making the same achievements that deep blue Massachusetts has achieved. As you read this, do you know what the Democrats’ plan is to turn Illinois around, other than raising taxes again?
The part about collective bargaining at the local level is only a fraction of what Gov. Rauner is pushing. If it was the only thing, it might’ve had a chance.
Also, we looked at the Massachusetts workers’ comp system yesterday.
The Rauner Administration’s latest misleading missive is full of falsehoods and clearly intended to divide and distract state employees at the same time the members of AFSCME’s rank-and-file bargaining committee are holding informational meetings with their co-workers statewide. Already thousands of union members have attended those meetings to get the true facts from their representatives on the bargaining committee, not Bruce Rauner’s political spin.
A year later, the governor is still demanding that public-service workers in state government such as child protection investigators, disability caregivers and emergency responders get zero pay increase for four years while paying double their current costs to keep their health care. No other union has agreed to these demands for both a pay freeze and a huge hike in employee health costs.
Rauner’s also pushing a program of selective bonuses where bosses could reward a chosen few employees based on unknown criteria, opening the door to cronyism and favoritism. He wants a blank check to contract out public services for private profit, insisting on eliminating basic safeguards that prevent irresponsible privatization. And rather than do the hard work of finding compromise, he’s walked away from the table and asked for the power to impose his own demands. That’s a recipe for the kind of conflict that candidate Rauner boasted he would cause.
State workers want a compromise that’s fair to all, and we believe that’s what the people of Illinois deserve—not a governor unwilling to modify his my-way-or-no-way demands.
* From an e-mail that was forwarded to me by a labor lobbyist…
Wanted to make sure everyone has this as we prepare to testify in the capitol and speak before other groups this year. Governor Rauner and his friends like to say that businesses are leaving Illinois.
I ran this report from the Bureau of Labor Statistics web site. It tracks the number of employers (both public and private sector) in Illinois. As you can see, the number of employers in Illinois has grown in every quarter since the first quarter of 2003.
Thank you.
Jason Keller
Illinois AFL-CIO
Legislative Director
That’s a 33 percent increase in employers since the first quarter of 2003.
* But what about other states? I asked the lobster to see if he could get Keller to run more numbers and was forwarded this e-mail today…
After I sent the email yesterday regarding the number of employers in Illinois, I was asked by several people how Illinois compares to other states in terms of growth of businesses. I updated the chart (see attached) with the number of business establishments in every state from 2001-2015. Since the first quarter of 2003, when Governor Blagojevich took office and Senate President Emil Jones, Jr. gained control of the State Senate (which is when we first heard the complaint that Illinois was a bad place to do business). I specifically looked at growth in each quarter. This is what I found:
Illinois has seen growth in the number of businesses in the state for approximately 49 consecutive quarters (and hopefully will still continue to increase). 2003-2015. NO OTHER STATE CAN MATCH THAT STEADY AND SUSTAINED GROWTH. None. This means that since 2003, Illinois has not lost one net business (contrary to what we hear from Republicans). Other people may play with the numbers and see other states have a larger percentage growth, but no one can point to such a long term sustained growth of businesses. Illinois weathered the Great Recession without losing growth. North Dakota and Texas come close with the oil and fracking growth – but they still saw a drop in businesses in several quarters. As a reminder, during these years, Illinois labor was successful in passing:
· Minimum wage increases that became effective in 2004, 2007, 2008, 2009, and 2010 – and still businesses grew.
· Numerous times prevailing wage laws were strengthened – and still businesses grew.
· Effective in 2008, employee misclassification law was passed – and still businesses grew.
· Three times in the past 11 years, the workers’ compensation law has been changed – and businesses grew.
· The unemployment insurance law was changed multiple times, through the agreed bill process – and businesses grew.
· Card check for public employees organizing passed in 2003 (PA 93-444) – and businesses still grew.
· Equal Pay Act passed in 2003 (PA 93-0006) – and businesses grew.
· Corporate Accountability passed (PA 93-552) – and businesses still grew.
There were other laws passed, but this gives you a snap shot.
For background, I spoke with an economist at the Bureau of Labor Statistics – the measure of “number of establishments” is the most accurate way to count the number of businesses in the state.
Thank you.
Jason Keller
Illinois AFL-CIO
Legislative Director
The number of Texas business establishments grew by about 27 percent since that first quarter of 2003. Indiana’s grew by just 4 percent.
* Keep in mind that these numbers include both public and private sector establishments. Even so, it’s something that deserves more attention and investigation.
*** UPDATE *** From the Illinois Policy Institute…
Rich,
We took a quick look at the same survey (QCEW) and same timeline (Q1 2003 - Q2 2015) as in the study you posted. Attached are the rankings.
For 2003-2015 growth, Illinois’ growth ranks 4th for establishments, 43rd for jobs, and 42nd for average weekly wage (AWW).
It’s important to note that the combined weak jobs growth and weak average weekly wage growth is a double whammy. Imagine adding 500,000 new jobs, all paying at the average weekly wage. Great news, right? That would bump up the jobs number and even though it wouldn’t bump up the wage number, we’d all cheer it.
In Illinois’ case, both job growth and average wage growth were bad. So not only is job growth weak, the average wage has grown slowly on that slow-growing job base.
The 2003-2015 timeline included the recession right in the middle. So we also looked at the same data set on the recession recovery timeline, starting from Q1 2010 when everyone had basically bottomed out (after various degrees of collapse, Illinois’ fall ranked among the worst).
For growth over that recovery time period, Illinois’ ranked 4th for establishments, 32nd for jobs, and 45th for average weekly wage (AWW).
* The Tribune writes about Gov. Rauner’s executive order yesterday forming a new privatized economic development agency. Rauner opposed legislation last year which would’ve sunsetted his agency in three years…
“The biggest difference is this isn’t going to die in three years,” Rauner said. “It can’t be subject to the political games the legislature is attempting to play with this.”
That’s not necessarily true. Because Rauner established the arrangement by executive order, the next governor could reverse it. Rauner is up for re-election in 2018.
* The governor also claimed that the executive order made sure the agency would be subjected to FOIA…
In his remarks, Rauner said ILBEDC would be subject to same Freedom of Information Act requirements to turn over documents and records when requested. But DCEO director Jim Schultz seemed to contradict Rauner’s statements after the speech.
“The executive order does not require that,” Schultz said when asked if the corporation was subject to FOIA requests. “We’re going to post all of our board minutes. Any grants or tax incentives that we negotiate will be posted online. So effectively, addressing the FOIA would be subject to audit. We’re going to post all the…donations and what they’ve made to corporations, so it’s effectively going to be the equivalent of FOIA without the requirements of FOIA.”
Transparency with this kind of public-private partnership has been an issue with Democratic state lawmakers.
“Our main concern has been that public accountability follow public dollars,” said John Patterson, spokesman for Senate President John Cullerton. “We hope the governor shares that as a priority if he is moving forward on his own.”
“President Obama has come out strongly in favor of both term limits and redistricting reform,” Rauner said, seemingly without equivocation — which raised some eyebrows. […]
But back to Rauner’s claim that he and President Barack Obama are of like mind when it comes to redistricting. It’s not like Obama endorsed the governor’s plan. Still, the President’s sentiment on the topic, at least, was pretty clear.
When though, I wondered, did Obama talk about term limits? Nothing came to mind, and a Google search didn’t easily come up with anything definitive. […]
[The governor’s press staff] pointed me to a speech the President gave last June, before a conference of African nations.
Rauner’s office points out that during it, Obama said “nobody should be president for life,” and “your country is better off if you have new blood and new ideas. I’m still a pretty young man, but I know that somebody with new energy and new insights will be good for my country. It will be good for yours, too, in some cases.
“Yes, in our world, old thinking can be a stubborn thing,” Obama said before the African Union. “That’s one of the reasons why we need term limits — old people think old ways.” […]
Say what you will about Madigan’s power, he’s no dictator. Obama was speaking about the need for presidential term limits in a continent whose people have suffered under brutal dictatorships — regimes ruled by blood and war.
* The News-Gazette editorializes about President Obama’s upcoming address to the General Assembly…
In his recent State of the Union address, Obama called for an end to partisan map-drawing in congressional races. Why not the same prescription for legislative races in his home state?
Rauner has been pushing legislators for redistricting reform. But Democratic House Speaker Michael Madigan is adamantly opposed so the proposal is a nonstarter in the Legislature.
Still, Obama’s support could boost efforts by groups that are working to put the independent maps issue on the November 2016 ballot in the form of a state constitutional amendment.
The presidential bully pulpit is an imposing platform. Obama should use it to, among other things, help restore electoral energy to the state’s now-fraudulent process of electing the people’s representatives to the General Assembly.
* The Question: What should President Obama say during his speech?
This is a serous question, so no snark and keep your drive-by national political talking points to yourself. Thanks.
* Look past Rep. Kelly Cassidy’s rhetoric here for the actual news…
Nearly five months ago, House Leadership provided members with a survey asking for us to prioritize items that remain unfunded. I released a survey reflecting the choices, and set the rankings to reflect the responses. Since then, we have passed a handful of bills funding portions of programs but have made no progress towards a comprehensive solution. We have seen numerous non-profit organizations go under, and services for tens of thousands have ended. The unfunded line items represent hostages in this budget standoff, and they are beginning to fall. Meanwhile, in spite of making significant progress on unpaid bills since 2012, from $6.8 billion to $4.3 billion, we are now seeing that pile of bills growing to record levels, projected to reach $10-$12 billion.
We have once again been asked to identify priorities for unfunded items, choosing 10 out of a total of 58, many of which are matters of life and death. Pitting critically needed services and programs against each other in a budgetary “hunger games” is repulsive.
There is only one rational and moral choice: getting the revenue needed to stabilize government and provide services that are fundamental to the well being of tens of thousands of Illinoisans. There is no correct order of priorities, because there are life and death consequences. Any choice but appropriate revenue is morally reprehensible and will continue to lead to suffering.
I reject the notion that we can only prioritize a small number of these programs, and instead invite my colleagues to join me in demanding we stop talking about what essential line items to fund, and instead talk about how we are going to fund them.
The fact that we are having this discussion represents the utter lack of morality of our budget situation. Putting aside the fact that our outlined priorities may very well not be funded in the near future, the choices given are hardly choices at all. How does one decide which order to prioritize funding for sexual assault victim services or the developmentally disabled? All sides of the budget standoff agree that revenue is an absolutely necessary part of the solution. With billions of dollars in unpaid bills and the collapse of our social safety net, the harm is unacceptable. I strongly support returning the tax rate to the previous levels, and working towards a progressive income tax. Until then, we are tasked with trying to prioritize a few of the many services that impact the lives of tens of thousands in in our state.
That said, if there is to be another stopgap funding initiative in the near future, there is an opportunity to offer input. Once again, I am asking my constituents to share their priorities, and their experiences, to help drive us towards a more comprehensive solution. I recognize that, like me, many of you will choose to rank revenue as priorities 1-10. For those of you specifically impacted by program cuts, please use the narrative area of the survey to share your story so that I can better illustrate the real world impact of this impasse. I have met with and spoken to so many people either already feeling the loss of services or living in fear of losing their independence as a result of looming cuts. Know that I will continue to push forward towards a solution that protects working families and the most vulnerable people we serve.
Due to the timeframe given by leadership, we need your responses by 3pm on Friday, February 5th.
I saw that you posted the newest priority ranking list given to members. It is notable that there are items left off the list, as one commenter said.
More notable, though, is how much this list has changed and grown from previous member polls.
Items like Teen Reach (which the Governor completely eliminated in his budget proposal last year) were not even included in previous member polls. But children, families and communities have made it so clear how vital afterschool programs are that it has emerged as a priority.
Programs don’t show up on a list by accident. These are obviously issues members across the state are hearing a lot about from constituents, advocates and the local press. It goes to reason that, in turn, the Governor’s office is getting a fair amount of grief from lawmakers who know the anger present in their communities, and want to be able to deliver some good news ASAP.
We’ll see in a few weeks during his budget address if, given the clear support these services have from families across Illinois, the governor will directly address how he’d like to see these services get funded now and in the future.
Emily Miller
Policy and Advocacy Director, Voices for Illinois Children
Co-Coordinator, Responsible Budget Coalition
* As we’ve already discussed, Gov. Bruce Rauner’s Turnaround Illinois PAC transferred $1.818 million to Dan Proft’s Liberty Princples PAC last month. Proft then spent hundreds of thousands on TV ads to bolster Sen. Sam McCann’s Republican primary opponent. McCann voted against Rauner on AFSCME’s “no strike” bill and even contemplated running for governor against Rauner as an independent in 2014.
Anyway, Bernie writes today about an endorsement of McCann’s GOP opponent Bryce Benton by the staunchly pro-life Family PAC…
McCann is also very conservative on social issues, including abortion. Caprio, in his group’s full endorsement statement, commended McCann for such views, but added that “we are deeply concerned with the extensive support which he is receiving from many public employee unions” that are “standing in the way of true reform in Illinois state government.”
Caprio’s Family PAC had less than $1,400 on hand as Dec. 31. It did catch my eye that RICHARD UIHLEIN of Lake Forest donated $10,000 to the committee on Jan. 13. Uihlein has also contributed more than $2.6 million to Rauner and more than $5 million to Chicago radio personality DAN PROFT’s Liberty Principles PAC since 2012, and Proft’s group is backing Benton with TV ads and other help all worth more than $325,000 so far.
Caprio said Uihlein has been a consistent support of Family PAC, and the recent donation had nothing to do with the group’s decision to back Benton. A quick check showed the Uihlein did give the group more than $10,000 each of the past two Februaries.
Bourne’s campaign manager is CASEY CONSTANT, 25, of Sherman, who worked on the Rauner campaign and is on leave from his $70,000 state job as intergovernmental affairs manager for the governor. His state job was paid for by the Department of Children and Family Services.
* Adding highway lanes doesn’t usually reduce congestion. Instead, adding capacity tends to attract more traffic, but that’s good for creating business opportunities, especially in a congested trucking corridor like this one.
Press release…
Gov. Bruce Rauner today was joined by legislative leaders and local elected officials to announce a legislative resolution that would allow the Illinois Department of Transportation (IDOT) to pursue adding managed lanes to Interstate 55 under a private-public partnership. By seeking out a P3 agreement, the state could deliver the project benefits more quickly and at a reduced cost.
“By using existing resources to leverage private investment, we can build the type of infrastructure that allows Illinois to better compete in the 21st century,” Gov. Rauner said. “This is an innovative project that will create jobs, improve the region’s quality of life and show that Illinois is open for business.”
The I-55 managed lanes project would add at least one lane in each direction to a critical travel corridor between Interstate 355 (Veterans Memorial Tollway) and Interstate 90/94 (Dan Ryan Expressway). The 25-mile section accommodates 170,000 vehicles a day, but suffers from long, unreliable travel times, resulting in frustrating commutes for workers and increased costs for the delivery of goods and services.
Options for the additional lanes currently being explored include tolled and untolled carpool lanes and express tolling lanes. The state will complete the federal environmental studies later this year to identify the preferred option.
A 2011 state law allows IDOT to build, finance, operate, and maintain highway projects using public-private partnerships, as long as the General Assembly adopts a resolution in support of the project. That law is modeled on best practices from across the country and includes opportunities for public hearings and input. The resolution introduced today would allow IDOT to further explore a P3 for the I-55 project and commence the procurement process. While managed lanes have been successful in other states as P3s, the I-55 project would be a first for Illinois.
“Managed lanes are truly an expressway within an expressway – one more option that will make travel more convenient for everyone who uses I-55,” said Illinois Transportation Secretary Randy Blankenhorn. “This project signals a new way of doing business at IDOT and a model for improvements throughout our system.”
“Regardless of the time of day, there is congestion along the Stevenson Expressway. Not only is it a source of regular frustration for drivers, including myself, it can be a dangerous situation for both motorist and passengers,” said House Republican Leader Jim Durkin. “What we are proposing today would give IDOT leeway to further explore the possibility of using private funds to keep the I-55 Congestion Relief Project alive and moving forward.”
“Relieving the congestion on this stretch of I-55 must be a priority for the state of Illinois,” said Senate Republican Leader Christine Radogno. “However, we must also recognize the state must be creative in addressing our transportation challenges. This is an innovative approach that has been successful in other states and should be explored here.”
“This region has seen explosive growth in the past decade, but that has increased traffic on the Stevenson,” said Sen. Martin Sandoval, Chairman of the Senate Transportation Committee. “Allowing IDOT to explore a public-private partnership will be a win for taxpayers and drivers. I stand with Governor Rauner to find new ways to relieve congestion on this important corridor for Illinois.”
Using a P3 on this project could save taxpayers an estimated $425 million in construction costs. Possible toll revenues from the project and P3 financing sources would be available to pay for construction, operation, and maintenance costs. Construction could start as early as next year and wrap up in 2019.
It’s good to see the governor holding a bipartisan press conference for a change. And one of Sen. Sandoval’s two House members is none other than House Speaker Michael Madigan. Hopefully, that’s a positive sign.
Last July, Munger’s office had estimated that without a budget, the spending deficit would reach about $5 billion by the end of fiscal year 2016. But spending at the state Department of Human Services and the Department of Healthcare and Family Services — controlled, in the absence of a budget, by court orders and consent decrees — is now expected to add an additional $1.2 billion to the projected $5 billion deficit. […]
And as the backlog continues to grow and bills go unpaid, everything from social service agencies to state universities and colleges suffer, Munger said, echoing a familiar refrain.
Munger said the state could raise taxes, but suggested doing that alone would be political suicide.
“If we solve this problem on revenue alone, we will be looking at raising our tax rate in Illinois 3.75 percent up to somewhere between 7 and 8 percent,” Munger said. “I don’t know any legislator who would vote for that and I don’t know many businesses that would stay in Illinois for that.”
That’s true. But the huge tax hike she’s talking about assumes the state will attempt to get out of this hole all at once.
It’s not going to happen that way because, as Munger herself said, who could possibly vote for it?
* Instead, once taxes are raised, the government could very well pay down that backlog over time, just like Pat Quinn did after he and the Democratic GA raised taxes. The state dragged a mountain of debt behind it for years, gradually whittling it away until most of the tax hike expired. Such a strategy could very be used again.
There are two other options that could be in the mix as well, however.
1) The government could do massive “sweeps” from special state funds to pay down the backlog. Quinn only wanted to borrow from special funds, but Rauner is fine with just taking the money.
But unless you dip into the Road Fund and municipal revenue sharing (sacrosanct funds, but where the real money is), you can’t solve that problem. Taking money from the munis means harming Chicago, so that’s out. They swept the Road Fund last year to patch the FY15 hole, and the road builders (who backed Rauner) went kinda nuts. As a result, the latest GOP fund sweep plan specifically protects the Road Fund from being dinged.
2) Since state bankruptcy is not an option, the government could require businesses and not-for-profit groups to forgive part or even all of the debt owed by the state in exchange for new contracts. That would be the “businessman” way out of this deep hole, but it could do serious damage to some businesses and not-for-profits or even put them entirely out of commission.
Imagine being told by the state: “Yeah, we owe you $6 million, but if you don’t forgive that debt we’re not giving you any more contracts and that’ll put you out of business.”
* Related…
* Children, families, providers sort through ‘devastating’ cuts in autism-related services: Families of Illinois children with autism are reporting declines in their children’s communication skills and heightened anxiety after the ongoing lack of a state budget prompted drastic reductions in services statewide… Beginning last summer and fall, Autism Program providers began cutting back on services to people without insurance coverage or those who couldn’t pay the full price. Medicaid doesn’t pay for many autism-related services or reimburses providers at low rates.
* Sangamon County’s Habitat home-building program on indefinite hold: Habitat for Humanity of Sangamon County has suspended its affordable-housing construction program indefinitely as a result of a sharp drop in donations that organization leaders say is linked to the state budget deadlock… Stone said longtime donors of money and materials have described their own cash crunch as a result of delayed state payments and lost contracts. She added that she believes state workers have turned cautious out of concern for their jobs as Illinois enters its eighth month without a budget… “The companies that are so generous, the ones that depend on state funding, they don’t have the cash,” said Stone, “or they don’t have new (state) contracts. There are very generous companies in Springfield, but we were getting the same pushback from most of them.
* He did such a great job owning the Sun-Times that his can’t-miss business acumen is now in dire need at the Tribune…
Michael W. Ferro Jr., the majority owner of the Chicago Sun-Times’ parent company, has significantly expanded his media holdings without straying far from home.
In an unusual transaction, a company led by Ferro has bought a 19.9 percent stake in Sun-Times’ rival Tribune Publishing for $44.4 million, a move that will make his firm Tribune’s single-largest shareholder and shift his office out of the Sun-Times building.
Ferro, 49, will become non-executive chairman of Tribune, the publicly traded company whose publications include the Chicago Tribune, Los Angeles Times and nine other daily newspapers. […]
Ferro will retain his majority investment stake in Wrapports, the Sun-Times’ parent company. But he will step down as Wrapports’ chairman and cede all control of the Sun-Times and affiliated companies, including the Chicago Reader and Aggrego, a national network of online-only publications. The Chicago Tribune and Sun-Times will continue to operate independently.
Good news for Sun-Times employees, not so great for Tribune workers.
House Speaker Michael J. Madigan, D-Chicago, issued the following statement Thursday announcing hearings to be held by the bipartisan Education Funding Task Force throughout the spring to help craft a legislative plan to equitably fund education throughout Illinois:
“Senate President Cullerton has shown strong leadership on the issue of fair and equitable education funding, which is so important to every community across our state. The President’s commitment to fairly funding our schools and helping all students meet their full potential is one that I share, and I plan to work with him to achieve this goal while making sure that voices from across our state are heard and that all schools and programs are protected throughout this process.
“Beginning February 16 and continuing throughout the spring, House Majority Leader Barbara Flynn Currie will lead hearings of the bipartisan Education Funding Task Force. The House Democratic members of the task force, who represent Chicago, suburban areas and downstate, bring to the discussion the views and concerns of residents from all across Illinois to help ensure a comprehensive approach to any changes in how our schools are funded. The task force will hear input from educators and advocates from throughout the state, and will work with all interested parties to craft legislation aimed at ensuring all students in Illinois receive the excellent education they deserve.”
The Education Funding Task Force will convene Tuesday, Feb. 16 at 10:30 a.m. in Room 114 of the State Capitol.
Rough translation: Thanks, John, but I’ll take it from here.
Several suburban Democrats aren’t exactly thrilled with the direction this topic has been going. As Senate GOP Leader Radogno pointed out the other day, the suburbs are mainly responsible for paying for the funding shift to lower-income schools as it stands right now.
The president’s commitment to fairly funding our schools and helping all students meet their full potential is one that I share, and I plan to work with him to achieve this goal while making sure that voices from across our state are heard and that all schools and programs are protected,” Madigan added. […]
Steve Brown, Madigan’s spokesman, suggested in a follow-up conversation that protecting “all schools and programs” means that no district would get less than they do now.
“You’re very unlikely to pass a bill that will cost districts money,” Brown said. That means the state would have to come up with potentially hundreds of millions of dollars a year more, and, “You need a source. . . .You don’t know the price tag now.”
* It’s easy to believe that the “conventional wisdom” about the Chicago Teachers Union expressed through the mainstream media (and here) accurately reflects the prevailing thought in the city.
But when you pit the CTU against Mayor Rahm Emanuel, Chicagoans have been picking the union’s side for years. It’s a very big reason why Mayor Daley tried to avoid confrontations with the teachers. It’s why Emanuel “lost” the teachers strike. It’s also something that Gov. Rauner has never really understood, going back decades.
Three times as many Chicagoans side with the teachers union as with Mayor Rahm Emanuel on how to improve public schools at a time when the two sides remain locked in contentious contract negotiations, a Chicago Tribune poll has found.
In households with CPS students, 73 percent supported the teachers union while 14 percent backed Emanuel. In homes without CPS students, 57 percent sided with the CTU compared with 22 percent with Emanuel. […]
The poll also found that support for the teachers union declined the higher the income of the poll respondent. Teachers received support from 70 percent of those who made less than $50,000, but that support dropped to 50 percent among those with incomes over $100,000. Still, only 29 percent of those with the higher incomes supported Emanuel. […]
A higher percentage of white voters backed Emanuel, 35 percent, but more of them still sided with the teachers union, 42 percent. Among Hispanics, 66 percent favored the teachers union and 13 percent supported Emanuel.
* The governor again called out Downstate and suburban Democratic legislators yesterday. Sun-Times…
Rauner argued that a bill allowing the state to take over CPS is not “dead on arrival” in Springfield simply because it would need approval from a Legislature dominated by Democrats.
“When the time comes, many Democratic legislators are not from Chicago, they’re from the suburbs . . . and you know what, when their voters understand what’s been going on and the subsidies that state taxpayers around Illinois have been funding CPS and now we can protect them from the mayor trying force off a half a billion dollars in liabilities on them, you watch,” Rauner said. “You’re going to see that that bill is not dead on arrival like some are trying to claim.”
* An e-mail from Rep. Stephanie Kifowit (D-Oswego)…
Hi Rich,
Just a quick followup. I caught the Governor’s press talk about CPS when he mentioned downstate and suburban legislators would be for the takeover of CPS. I’m not sure where he gets that from because as soon as he made mention, I have heard from residents the opposite. They don’t want the state to take over CPS, but they do want school funding change. Not sure where he gets that idea from.
Thanks,
Stephanie
We’ll see what happens if Rauner follows through with voter communication, warning people that their Democratic legislators are planning a half-billion-dollar Chicago schools “bailout.” Speaker Madigan, you may recall, used that exact same word last week to describe the governor’s takeover plan (even though Rauner’s plan bars more state money for the city). Rauner, however, has the cash to mail heavily to all districts, not just targets.
The city claims its schools are being shortchanged by the state. Others, particularly Senate Republican Leader Christine Radogno, have long argued that the numbers prove otherwise.
The crises at CPS would be manageable if Emanuel had only listened to him last year when he offered the mayor some advice, said Rauner, who is overseeing a financial crisis on the state level.
“The mayor rejected it, he said no to any structural reform. He said, ‘What I want you to do is just send half a billion cash and leave me alone.’ That’s not going to happen,” Rauner said.
Gov. Bruce Rauner on Monday repackaged a set of reforms he’s pushed since he took office in January, linking them — and an offer of help — to the financial crisis facing Chicago Public Schools.
The Republican’s attempt to rebrand his “reform agenda” was quickly shot down as “unacceptable” by Senate President John Cullerton, whom Rauner had singled out as a Democrat who has worked to compromise.
The proposal would freeze property taxes for two years and boost state funding to high-poverty school districts by $74 million. As part of the offering, Rauner said Illinois could immediately give $200 million in state aid to offset Chicago Public Schools’ pension costs but only as part of a comprehensive school reform package that includes allowing the city and local towns to opt out of collective-bargaining requirements.
According to a city spokeswoman, $665 million in [CPS] bonds maturing in 2044 were sold at a price of 8.5 percent, and $60 million in 2026 maturity securities at 7.75 percent.
The interest cost of borrowing that $665 million would be a tad under $1.081 billion, while the cost of borrowing that $60 million would be $26.41 million.
These are approximate numbers because I don’t have the exact number of months.
…Adding… The governor’s complete contract offer can be read by clicking here.
* The war of words continues…
Dear Colleagues,
As you know, on three separate occasions our CMS labor relations team negotiated and signed a Tolling Agreement with AFSCME leadership. The Tolling Agreement provided for a process, agreed to by AFSCME, that allows the parties to either agree that impasse in negotiations has been reached or, in the event one party does not agree, allows either party to ask the Illinois Labor Relations Board to decide if the parties are at an impasse-that is, the Labor Board would decide whether further negotiations between the parties would be worthwhile. On January 15, 2016, after weeks of no meaningful progress at the bargaining table, the Governor asked the Illinois Labor Relations Board to determine whether we are at an impasse in collective bargaining negotiations with AFSCME. In the weeks since, work in the State of Illinois has continued as usual. The Governor and the labor relations team at CMS are committed to respecting the Labor Board process, and we appreciate that members of AFSCME want to do the same.
There has, however, been a great deal of incorrect information circulated about our negotiation and proposals. We know that, in recent days, AFSCME has been conducting “informational sessions,” but we question how productive those sessions can be if AFSCME does not provide accurate information.
We cannot sit idly by without correcting the incorrect information being provided to AFSCME bargaining unit employees and the public. We have asked AFSCME to let you vote on our proposals, but we believe you must have accurate information to make a fully informed decision. As the State’s lead negotiator who sat across the table from Roberta Lynch and Mike Newman for the past year and explained the State’s proposals, I would like to take this opportunity to correct numerous incorrect statements. That information is enclosed.
Further, I believe that employees should not be satisfied with summaries and that they deserve a full picture. It is my understanding that AFSCME has failed to provide you with the State’s full proposal. I believe that is counter-productive. You should be able to read the State’s proposal in full, and determine for yourselves whether the State’s offer, which is substantially similar to those accepted by seventeen other unions, is fair and reasonable, particularly in light of the State’s fiscal condition. I am enclosing with this letter the actual language of the 2015-2019 collective bargaining agreement as proposed by the State in its last, best and final offer. That document shows all the changes proposed by the State from the contract that expired on June 30, 2015. You can now evaluate for yourselves the State’s complete proposal.
We have asked AFSCME to let you vote this proposal up or down. We hope you will ask AFSCME’s leadership to allow you to take such a vote. Seventeen other unions ratified similar terms and conditions by wide margins-often over 80% of state employees in those unions approved-and we think if provided a fair vote, this proposal will be approved as well. Thank you for giving it your consideration.
John Terranova
Deputy Director
CMS Office of Labor Relations
* And here’s his fact check…
Fact Check - Correcting Misinformation
Myth: The State’s proposal would give Illinois state workers the worst health insurance coverage in the nation.
Fact: False. In fact, we’re not even close. With retiree coverage included, Illinois pays nearly 3/4 of the total cost of coverage for its workers. In comparison, Indiana pays less than 45% of the total cost of coverage. Paying 100% of retiree premiums is a huge benefit to our workers-if current employees were responsible for those retiree healthcare premiums, they would need to be putting away $947/month now to cover that future benefit! Even if we only look at coverage for active employees-where the State is proposing to pay 60% of costs-the State’s proposal is still better than many other States and on par with the private sector.
Myth: The State’s current healthcare plans aren’t actually Platinum or luxury.
Fact: The average actuarial plan value (what federal regulations and insurance companies use to assess how rich a health plan is) for the State’s current plans is 92%. This means that out of every dollar in healthcare expenses, the insurance plan covers 92 cents and the employee pays 8 cents in deductibles, co-pays, and other such expenses. “Platinum” under the Affordable Care Act is defined as plans that are between 88 % and 92%. Platinum is the highest level under the Affordable Care Act-above Gold, Silver, and Bronze. And as mentioned, the State’s average plan value is 92%-the high end of Platinum.
Moreover, to be clear: under the State’s proposal, employees will have the option to continue this rich coverage at higher premiums, should they so choose. Alternatively, employees would have the option to have less-rich coverage and maintain current premiums. Employees will not have to both pay higher premiums and receive less-rich coverage.
Myth: The State’s proposal would wipe out all job security rights.
Fact: The State’s offer does not eliminate these rights. Layoffs would still happen in reverse seniority order. Employees would still have the opportunity to “bump” less senior individuals in the same position and qualifications. Employees would also still have the opportunity to transfer to other vacancies for which they are qualified.
Myth: If I have a major medical issue under the new insurance, there is no limit on what I could pay. I could go bankrupt!
Fact: The Affordable Care Act has an annual out-of-pocket maximum of $6,850 for an individual. While that’s a lot of money, it prevents people from being financially ruined due to a medical issue. You can go here to fact-check this for yourself: http://obamacarefacts.com/
health-insurance/out-of-pocket-maximum. The bottom line is no matter what coverage level employees select, there will be strict limits on how much each employee is going to be asked to pay in any given year.
Myth: Merit pay is just political pay.
Fact: Politics has nothing to do with it. In fact, the State would prohibit any Governor’s staff and appointees from being eligible for performance bonuses. The State has also proposed working with all unions to find fair, objective standards to measure performance. The program that’s now in place for Teamsters will give half of all their members a bonus. While we guaranteed that a minimum of 25% of members would receive a performance bonus (the same guarantee that we made in the Teamsters contract), that percentage is the floor, not the ceiling. In developing the program, the number could go up, just as it did for the Teamsters. And the total bonus payout would remain the same regardless of how many people receive a bonus, so the State doesn’t gain anything financially by giving it to fewer employees.
Myth: The Labor Board is biased in favor of the Administration.
Fact: A majority of the Labor Board was originally appointed by Governor Pat Quinn. Governor Rauner reappointed two individuals Governor Quinn had previously appointed or re-appointed. Significantly, all members of the Labor Board appointed or re-appointed since 2015 were confirmed by a supermajority-Democrat Senate. Furthermore, the Chairman of the Board is, hardly an “enemy” of AFSCME. For many years he was responsible for negotiating collective bargaining agreements on behalf of the State, including many of the prior state contracts that AFSCME now praises. Most importantly, both AFSCME and the Administration voluntarily signed a legally binding tolling agreement providing for the Labor Board to resolve any dispute over whether the parties are at impasse. For AFSCME to preemptively impugn the integrity of the Labor Board is puzzling.
AFSCME complains that “in a recent case regarding an issue related to contract negotiations, the Board hastily rushed a decision and completely upheld the Administration’s position.” Although AFSCME did not identify the case, we believe it must be referring to an FAQ on the State’s website, which can be found at http://www.illinois.gov/EmployeeFAQs. In that FAQ, the State responded that, during a strike, the State can charge striking workers the full cost of their health insurance. AFSCME filed an unfair labor practice charge. After carefully considering the parties’ written submissions, the Board’s Executive Director dismissed the complaint and acknowledged the State’s longstanding policy to charge striking workers for the full cost of their insurance. The well-reasoned decision was upheld on appeal to the full Board. That AFSCME brought and lost a baseless charge is no reason to doubt that the Board gives a fair consideration to every case before it. For AFSCME to suggest otherwise is regrettable, let alone begging the question why AFSCME would voluntarily enter into an agreement to submit the impasse dispute to such a tribunal.
Myth: The Governor is “now seeking to impose on state employees” his contract.
Fact: Under the terms of the tolling agreement, it is up to the Labor Board’s to decide if the parties are at an impasse and whether the State may implement its last, best and final offer. It is critical to mention that the last offer made by the State to AFSCME is substantially similar to the agreements signed by 17 other unions. These agreements were ratified in many cases by over 80% of state employees in those unions. This is not a radical or extreme contract as AFSCME has portrayed, but one that is fair, reasonable, and overwhelming accepted by several thousand State employees already.
By submitting this dispute to the Labor Board, the Governor did nothing more than invoke the very process to which both parties voluntarily agreed.
What the Governor is seeking, and AFSCME is refusing, is for AFSCME to submit the Governor’s actual proposal to employees for a vote. What better way is there to determine whether the proposal is deemed fair and reasonable by the very people whose work will be governed by that proposed contract?
Myth: The Teamsters’ agreements provide “far more generous health insurance terms.”
Fact: Comparing Teamsters’ health insurance to AFSCME’s is like comparing apples and platypuses. AFSCME employees’ health insurance is provided by the State, where the State charges premiums. Teamsters’ health insurance is provided by Teamsters’ own health and welfare funds. The State contributes to those funds but does not get to decide the level of coverage or premiums. It is entirely out of the State’s control. Teamsters can provide the bare minimum coverage under the Affordable Care Act or they can provide more. Either way, the State plays no role.
The most that can be said in comparing Teamsters and AFSCME for health insurance is that, unlike AFSCME’s demand for a guarantee of Platinum coverage at Silver prices, Teamsters received no such guarantee from the State. What Teamsters get is entirely up to Teamsters’ own funds. This is similar to the point AFSCME makes about the trade unions with whom the Governor signed twelve separate collective bargaining agreements. AFSCME claims the distinguishing feature is that the trades’ agreements do not include a wage freeze. But what AFSCME fails to mention is the trades get compensated on a wholly different metric, known as the prevailing wage. That wage is determined through a certification process administered by the Department of Labor and is not guaranteed to increase during the course of the contract. In fact, the prevailing wage could go down over the life of the contract. So, there too, while AFSCME is demanding guaranteed wage increases through general and step increases every year of the contract, other unions have received no such guarantees.
As against seventeen other unions that have ratified the State’s offer by wide margins, AFSCME stands alone in demanding guaranteed wage increases and luxury health insurance coverage at what could be characterized as garage sale prices.
Myth: Only union workers are being asked to sacrifice due to the financial circumstances in the State.
Fact: Everyone is making sacrifices. Non-union employees are also on the State’s health insurance and will be subject to any premium increases or plan changes. This includes the Governor’s staff and the labor relations people who made this proposal. It’s also worth noting that non-union employees haven’t received an across-the-board wage increase in ten years. Cherry-picking salaries of some in the Governor’s office-without noting that the Governor’s office payroll is less now than it was during his predecessor-is as uninformative as focusing on the compensation of AFSCME’s top executives.
Fact is, our employees tell us all the time, as Teamsters and other unions told us during bargaining, that they are ready to be part of the solution, not the problem. They recognize that state employees in Illinois make more than their counterparts in other Midwestern States. For example, Illinois state workers made, on average, over $20,000 more per year in 2014 than state workers in Indiana or Missouri. In absolute dollars, Illinois state worker pay was third-highest. The two higher-paying States, California and New Jersey, have significantly higher costs of living. After adjusting for cost of living, Illinois workers are the highest paid in the country. The Governor is proud of our state workers and has never proposed to cut their salaries. He only asked for true shared sacrifice as we, all of us, together right our State’s fiscal ship.
Myth: The Administration does not accurately report what is said at the bargaining table.
Fact: Here’s what AFSCME’s Executive Director Roberta Lynch said during bargaining: “People who came up with this [merit pay proposal] ought to go to f**king prison . . . fact that you want to give measly 25% to some who are doing the job already . . . 75% of people not doing their best - that’s a f**king lie. I think it’s an insult to every single person who works for the State of Illinois.”
Here’s how AFSCME interprets the above quote: “it wasn’t fair to leave out 75% of employees from getting a bonus, given the difficult jobs that employees do-and that whoever came up with that idea should try going and actually working in a prison so they’d know how hard the job is.”
We appreciate that AFSCME’s Executive Director regrets her choice of words when she reads those words on paper. Nonetheless, she does not get to rewrite the history of negotiations based on what she wishes she has said.
Myth: SB1229, the arbitration bill that AFSCME unsuccessfully lobbied last summer and fall, was an opportunity to resolve outstanding contract disputes in a fair and rational manner.
Fact: Make no mistake about it, SB1229 was AFSCME’s attempt to rewrite the State’s labor laws as they have existed for over thirty years to saddle the State’s taxpayers with a multi-billion dollar cost of AFSCME’s unreasonable contract proposal that it knew, under the existing laws, it could never get the State to agree to at the bargaining table. Outstanding contract disputes-like the current dispute between the parties as to whether they are at an impasse-already have a fair and rational forum, which is the Labor Board, a process to which both sides voluntarily agreed. SB1229, or the new HB580–another version of the same failed bill, which would strip the Governor of his constitutional authority–is as unaffordable and damaging now as it was then. Several other Unions have already negotiated agreements with the State under the existing labor laws. Why must the rules be rewritten to give AFSCME what it wants and the State’s taxpayers cannot afford?
We now know that AFSCME is urging its members to support HB580, to once more ask to strip this Governor-and only this Governor-of his authority to negotiate with employees. This is as clear a signal as any that AFSCME is not interested in negotiating. AFSCME is not interested in defending its unaffordable proposals. AFSCME is only interested in imposing its will through an unelected, unaccountable arbitrator. This is bad faith in spades, and why the matter is now before the Labor Board.
