If Democrats want to send a budget to Gov. Bruce Rauner, they might have to do so without the votes of some suburban party members in the Illinois Senate
Some Senate Democrats are balking at the idea of approving a budget that would spend $3 billion more than the state is set to take in next year as party leaders prepare to send the spending plan to Rauner.
“I’m not going to be supporting an unbalanced budget,” said state Sen. Mike Noland, an Elgin Democrat.
State Sen. Tom Cullerton, a Villa Park Democrat, said he’d also not vote for a plan that has a deficit that big. Democratic state Sens. Julie Morrison of Deerfield and Melinda Bush of Grayslake say they’re undecided.
“That (deficit spending) is kind of how we got here,” Morrison said.
* From the governor’s office…
ICYMI: The Daily Herald
SPRINGFIELD – The Daily Herald reports suburban Democrats do not back the proposed unbalanced budget by Speaker Madigan, which currently has a hole of $4 billion. If covering this story, please attribute the following statement to Lance Trover, Director of Communications.
“There is now bipartisan opposition to Speaker Madigan’s plan to double down on a broken system and avoid critical reforms needed to turnaround Illinois. Now is the time for all members of the General Assembly to make clear whether they stand with taxpayers and for reform or will continue to be controlled by Speaker Madigan.”
OK, first of all, Noland and Cullerton are both considering congressional bids. Bush and Morrison are targets. Targets and congressional candidates rarely vote for budgets.
But this does show the rapidly rising hostility between Rauner and the Speaker. And it probably tips us to the subject matter of the coming TV ad campaign.
Whew, man, it’s gonna be a long, hot summer.
*** UPDATE *** Speaker Madigan’s spokesman just said that perhaps the governor’s press secretary should “slow down his typing.”
Why would he want to do that? Because, Brownie said, there was nothing in what those Democratic Senators said to indicate that they favored the governor’s “non-budget items.”
[ *** End Of Update *** ]
* But Madigan’s proposal is being supported by at least one group. From a press release…
News Release: TAP Supports Madigan Budget Proposal
State leaders of The Autism Program of Illinois (TAP) today called on Illinois elected officials to adopt a state budget that meets the needs of Illinois’ most vulnerable citizens. Russell J. Bonanno, state director of the TAP network, called on legislators and Governor Rauner to avoid exposing Illinois families to months of uncertainty that will accompany an ongoing political stalemate over the FY 2016 budget.
“It has become clear that Illinois’ fiscal crisis cannot be solved simply by attempting to cut our way out of it,” Bonanno said. “It is both unfair and unreasonable to balance the state budget on the backs of those dependent on state human services programs – including the families of more than 45,000 children with an autism spectrum disorder. It is incumbent upon our leaders to fulfill one of the pre-eminent duties of government: to accomplish for our most vulnerable citizens those things which they cannot accomplish for themselves.”
Total funding for TAP, amounting to $4.3 million, was eliminated from the state budget for the coming fiscal year in the budget presented to the General Assembly on February 18. If TAP funding is not restored to the budget, more than 15,000 Illinois families would have nowhere to turn for critically needed services. Most autism services are not covered by the state Medicaid program, and TAP network partners have stated that most of the program’s 19 locations in Illinois would simply close their doors if funding is not continued. A number of families served by TAP have indicated they would seriously consider relocation to another state if AP funding is not continued. An effort to discontinue TAP funding for the remainder of the current fiscal year was averted when FY 2015 revenues came in at a higher-than-expected rate in April.
“While our state faces significant fiscal challenges, we want to make our position clear,” Bonanno said. “We support any budget proposal which preserves funding for critical human services programs, including TAP. At the present time, House Bill 4165, advanced by Speaker Madigan, is the only budget proposal under consideration that restores TAP funding. As the Speaker acknowledged, his budget proposal requires additional revenue to balance the budget. We support the Speaker’s budget and urge our political leaders to work together to balance the budget by finding revenues to meet our needs.”
“The elimination of TAP from the FY 2016 state budget, as proposed in February, would be penny wise and pound foolish,” Bonanno concluded. “Many studies, including those cited by the Governor in his budget message, conclude that early and effective intervention for children with an autism spectrum disorder actually saves money over the long run by preventing the need for more costly services later in life.”
Cook County State’s Attorney Anita Alvarez has torn a gaping hole in pension reform legislation being pushed in Springfield by Cook County Board President Toni Preckwinkle.
In a move loaded with political implications, Alvarez’s office wrote a legal opinion declaring that the bill “is unconstitutional” because it would reduce benefits in the county’s current pension system without bargaining those changes with employee labor groups.
The bill represents “a unilateral imposition of changed terms, many of which diminish and impair existing retirement annuity benefits,” states the letter, which is signed by Daniel Gallagher, deputy state’s attorney and chief of the Civil Actions Bureau. Preckwinkle’s proposal cannot stand after a recent Illinois Supreme Court decision tossing out pension changes that reduced benefits for state employees, the opinion says.
Preckwinkle’s office had no immediate reaction to the May 21 letter, which is labeled a “confidential attorney client communication.” Crain’s obtained a copy from a source who declined to be named.
The opinion is potentially very bad news for Preckwinkle, whose bill already faced heavy head winds in Springfield, where legislators are caught up in a wider budget war.
* I got to the Summer Camp music festival later than expected Friday. It was the usual stuff. Flat tire on the camper, which had been in storage all winter, and no water hookups at the campground meant I had to go on an H2O search before I arrived, finally finding some at a horse farm a few miles from the festival site.
So, I had plenty of water, but the filter housing had shattered during the winter (totally my fault) and I ended up with water all over the bathroom floor when I turned on the pump. After what seemed like hours, my friend and I eventually figured out how to reroute the water around the busted filter but then I tightened something too tight and broke a piece of plastic and there was more water on the floor.
Ah, the heck with it, my friend said. Nobody’s showering here anyway. Let’s go listen to some music.
And did we ever.
Trampled by Turtles was our first stop. Solid, as always. Umphrey’s McGee put on some astounding shows on Friday, including a hugely entertaining set with Gene Ween. And then we closed out the night with a 12:30 show by one of my favorite bands, Trigger Hippy. Right up front, man. I was in heaven.
Saturday started with blueberry pancakes (I went off Atkins and indulged myself), hippie shopping and then a show by Kung Fu. I’d never seen them before, but I’d heard some of their music and was delighted by their performance.
* My friend had to leave after that show (family obligations) so I was on my own. I strolled through the massive grounds at 3 Sisters Park and eventually figured I needed a nap. Late night, early morning, etc. On my way back to the camper I heard a band playing and wandered over to a small side stage. I was really tired, though, and decided to leave after one song.
But then I stopped on my way out and said to myself, “Self, you’re not here to sleep, you’re here for the music.” Plus, the band was pretty good, so I turned around and walked back to the stage.
* If you’re lucky, there’s a moment during a break when you can feel your usual worries and urgencies dissipate, or even disappear. Despite all the fun I’d had at the previous sets, I had allowed life’s hassles to interfere just a bit. The Fergus Daly Band finally broke that spell…
* They’re local legends in Lafayette, Indiana, but don’t hold their home state against them. They’re some cool dudes. I ran into them at the Violent Femmes show later that evening and had a chance to hang out with them a while, passing around flasks and basking in the revelry of a hard-charging Wisconsin band which hasn’t seemed to lose a step in all those years.
I told the group about how I’d left their show then turned around and came back, and mandolin/banjo/vocalist Joe Kollman shouted “You’re the one!”
The band didn’t make much money on the gig, but they were all hoping that their set would turn on at least one person. Maybe that person would tell somebody else and maybe word would spread.
I told them about my website and we talked briefly about Indiana politics (a sore spot with the band members), and I promised them a post.
I cannot promise that they’ll do for you what they did for me. It was a special set of circumstances, after all, and a special place. But with our state government falling down around our ears right now, it most certainly can’t hurt, right?
Ending a costly court fight that City Hall blundered into, Mayor Rahm Emanuel’s administration has paid more than $62 million to settle a dispute with the private operators of four city-owned parking garages downtown, records show.
The payment last month ended City Hall’s long and unsuccessful legal fight against claims from investors in the four privately operated garages under Millennium Park and Grant Park.
The dispute dates back six years. That’s when aides to former Mayor Richard M. Daley mistakenly approved a parking garage in the new Aqua building at 225 N. Columbus Dr.
Under the 2006 privatization deal, the Daley administration received $563 million to lease the parking garages for 99 years. As part of the deal, the city wasn’t supposed to allow any new competitors in a vast area surrounding the garages.
But less than three years after the Chicago City Council approved the deal, the Daley administration allowed the Aqua garage to open to the public just a block from the nearest of the privatized lots.
It was an alley fight of epic proportions, with taxpayers ending up with a costly fat lip.
Cook County taxpayers ended up being out $44.1 million as the result of a decade-long dispute that began when the county’s sewage-treatment agency blocked access to an alley next to its Near North Side headquarters, using a gate, dumpsters and parked cars to hinder construction of the luxury high-rise condo building next door at Michigan and Erie.
It ended with a fizzle, when the Illinois Supreme Court said last Sept. 24 that it was refusing to hear an appeal from the Metropolitan Water Reclamation District of Greater Chicago, which had been ordered to pay millions of dollars in damages to the condo building’s developers.
The district finally paid up on Oct. 2, writing a $39,495,017 check to the developers, NM Project Company LLC, to cover the cost of construction delays on the Ritz-Carlton Residences caused by the obstacles placed in the alley, newly obtained records show.
The district finished settling up its legal bills in December. Its total legal tab for the alley fight: $4,642,766.
Owners of the Casino Queen say they would like to buy Fairmount Park, contingent upon a deal to allow slot machine gaming at horse tracks being passed by the Illinois Legislature< The move also would also require regulatory approval by the Illinois Gaming Board.
The casino, located in East St. Lous, and the horse track, located in Collinsville, are longtime competitors for area gambling dollars and have been at odds over previous proposals in the General Assembly to allow slot machines at tracks. [...]
“This agreement recognizes a two-step process,” [Casino Queen President Jeff Watson] said. “The first step was reaching an agreement and the second step is working with our legislators to craft a gaming bill that ensures the success of both companies while generating much-needed tax revenue for the state of Illinois and local communities.” [...]
State Sen. James Clayborne, D-Belleville, said he is hopeful legislation can be passed to complete the deal.
The last gaming bill floated in 2014 cut Fairmount Park out of the slots at tracks provision after demands from the Queen.
Despite overwhelming support from voters at last fall’s general election, an increase in the minimum wage appears to be dead in the spring session of the Illinois General Assembly.
Demonstrators were still rallying for it in the Capitol as recently as last week, and Sen. Kimberly Lightford’s Senate Bill 11 passed that chamber 35-18 in February. The Maywood Democrat’s bill would increase the hourly minimum wage from $8.25 to $9 everywhere in the state except Chicago, which is moving toward a wage of at least $13 per hour. But three months later, Lightford’s proposal has yet to move in the House.
SB 11 would take effected July 1, and each year on that date there would be an increase of 50 cents until the state’s minimum wage reached $11 in 2019. Chicago Democratic Rep. Art Turner is chief sponsor of the legislation in the House. With some legislators focused on dodging deep program cuts and eliminations, Turner says the minimum wage bump may end up sidelined — for now.
* From a newspaper column I wrote last December about the minimum wage hike…
Speaker Madigan himself shares in the blame here. Yes, he’s not all-powerful, but he probably could’ve passed a minimum wage bill during the spring session. Instead, he didn’t want to rile up business groups before an election and believed he could use the issue to fire up his party’s base and the unions in the November election.
As Champaign News-Gazette columnist Jim Dey wrote not long ago, former Senate President Phil Rock’s autobiography contains a story which explains Madigan to a “T.”
Rock wrote in his book “Nobody Calls Just to Say Hello.” that he wanted to pass a bill guaranteeing women unpaid maternity leave. Rock told Madigan and another House Democrat that he’d like to get the issue off the table by passing it. The Senate President believed Madigan was stalling.
“We jousted back and forth, and one of the House members said to me, ‘You know, I’m getting a little tired of you trying to do what’s right all the time. We’ve got a great political issue here,’” Rock wrote.
So, the answer is it’ll pop back up whenever Madigan thinks it’ll be useful against the governor. And it’s probably safe to say it’ll be designed to be vetoed. Madigan is closely allied to the Retail Merchants Association, which vehemently opposes a minimum wage hike.
* Speaker Madigan on Gov. Rauner tying his Turnaround Agenda to the state budget…
“I’m not going to say that the gentleman went wrong, I’m not going to say that,” Madigan says. “What he’s attempting to do is mix apples and oranges. He’s attempting to bring these non-budget issues into the budget making. That’s where there’ a pretty serious difference of opinion between he and I and other members of the legislature.”
Gov. Edgar used to try and keep the budget separate from other issues (partly because of Madigan’s asks), but Madigan occasionally negotiated dozens of side deals unrelated to budgets, but tied directly to the budget outcome under Gov. Rod Blagojevich.
Now, I want you to put your Rauner hate and your Madigan hate out of your collective minds and forget about this year’s fight for just one moment…
* The Question: In general, do you think that budget deals should be negotiated on their own, or do you think governors and legislative leaders should be able to make side deals a prerequisite for passing budgets? Take the poll and then explain your answer in comments, please.
Tuesday, May 26, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
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Illinois businesses are poised to take advantage of investment crowdfunding in the wake of legislation that passed out of the Illinois Senate in unanimous fashion on May 20. House Bill 3429, which also passed unanimously in the Illinois House of Representatives, will now move to Gov. Bruce Rauner’s desk.
With the governor’s signature, Illinois will become home to the most competitive crowdfunding regulations in the nation. […]
The JOBS Act dictated that investment crowdfunding could be done by creating intrastate exemptions – meaning Illinois businesses could only raise money from Illinois residents – and put the onus on state lawmakers to develop crowdfunding exemptions for their states before constituents could use this type of financing. Pending the governor’s approval, Illinois will become the 19th state to pass a crowdfunding exemption.
The bill will give Illinoisans the highest investment limits of any regulatory framework for crowdfunding in the country. It would also allow an especially broad pool of eligible investors while ensuring flexibility from the Secretary of State’s office to help with customizing the rules in order to avoid stumbling blocks appearing in other states. The rules of the game for crowdfunding in Illinois include:
* Companies with audited financials can raise up to $4 million per year
* Companies with unaudited financials can raise up to $1 million per year
* Accredited investors can invest as much as they want in each offering
* Unaccredited investors can invest up to $5,000 per year in each offering
This innovative form of funding is described by economist John Berlau as “finance of the people, by the people, for the people.” For this reason, as well as crowdfunding’s explosive potential for economic growth in a state with a moribund business climate, investment crowdfunding has been a key element of the Illinois Policy Institute’s legislative agenda for entrepreneurs, which was developed in September 2014.
Under state law, local governments in Illinois don’t have the power to make necessary reforms to their pension systems. Even in the most extreme cases of fiscal instability, bankruptcy is not an option. This leaves local officials with few options, and often leaves taxpayers stuck paying higher taxes and fees when local governments don’t make spending cuts.
Local governments should have more control over how they operate. That means having the option to file for bankruptcy and it also means having the ability to reform local pension systems. A recent piece of legislation filed by state Rep. Ron Sandack, R-Downers Grove, would address the former.
Sandack’s proposal would give Illinois municipalities the option to file for bankruptcy. “I know what difficulty it is being in charge of a municipality … with ever-increasing police and fire pensions and very little in the form of power to do anything about it,” Sandack said. The goal of the proposal is simply to give towns in Illinois an additional tool that may be used to help control local finances.
As Sandack correctly points out, pensions are a driving factor in the conversation over municipal bankruptcy in Illinois. Municipalities across the state are struggling under the weight of rapidly increasing pension costs. Just between 2000 and 2010, the aggregate unfunded pension liabilities for local pension systems in Illinois grew to more than $12 billion from $1 billion.
We’ve seen time and again that municipal bankruptcies tend to give bondholders a haircut and barely touch pension payments. In these uncertain times, when the governor is pushing to slash half of local governments’ revenue sharing and freeze local property taxes and with no pension solution in sight, if you want to tank just about every municipal credit rating in this state, then go ahead and pass that bill.
Since the November election, Mr. Rauner’s campaign committee has raised more than $21 million, with nearly all of the money coming from Mr. Rauner, Mr. Griffin and Richard Uihlein, chief executive of a Wisconsin-based packaging company.
The committee on its own appears to be outpacing the combined total raised by more than 30 governors starting four-year terms in 2011, according to state-level data aggregated by the National Institute on Money in State Politics. Similar data isn’t yet available for governors elected in 2014 because of state-by-state filing requirements.
In addition to his campaign committee, Mr. Rauner has a newly formed political-action committee that has raised $4.25 million in recent weeks from Mr. Zell and him.
A committee formed by Democrats with ties to the business community also has entered the budget fray, frustrated with the current party leadership. So far it has taken in $8.5 million from five individuals, including Sam Zell’s wife, Helen, and Texas billionaire John Arnold, according to state campaign finance records.
“It creates a very different environment where you have a small number of wealthy individuals who come in—and in a very short time—create a huge presence,” said Kent Redfield, a professor emeritus of political studies at the University of Illinois at Springfield.
[h/t: Wordslinger]
Rauner would say he’s just trying to break the stranglehold of the special interests, and that ain’t gonna be cheap. But that assumes Rauner and his wealthy pals are on the right path for Illinois.
Whether the money will be effective in helping to move Mr. Rauner’s agenda is an open question. The governor last year poured millions of dollars into the Illinois Republican Party, local committees and legislative races, and the GOP didn’t make a dent in the Democratic majority even as Republicans gained in states nationwide.
And Mr. Schwarzenegger’s series of ballot initiatives all failed despite an infusion of millions from his personal coffers.
Already there are concerns that the recent fundraising concentrates influence over public policy in the hands of a small group of wealthy individuals.
“I’m certainly not going to claim under the old system the average Joe got fairly represented. What I’m saying is this may be an even more unfair system,” said David Melton, executive director of Illinois Campaign for Political Reform.
Tuesday, May 26, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
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The Rauner Administration is pushing for sweeping changes to the AFSCME Master Contract. With dozens of proposed changes to contract language, pay and benefits on the table, they are aiming to drastically diminish the rights of employees, weaken the role of the union, and drive down the standard of living of our families.
Rauner has said that if we don’t agree to his terms, he’ll force a strike and shut down state government until we do. Those kind of threats don’t serve the bargaining process or the citizens of our state well. The services we provide are essential to Illinois citizens. And there’s no way that ‘replacement workers’ could perform the complex and challenging jobs that we do. That’s why our union is doing everything possible to reach a fair settlement at the bargaining table.
And that’s why it’s essential that we stand up and stand together now to say “NO WAY” to Rauner’s demands. We know that times are tough and we’re prepared to do our part, but we won’t go backwards or back down when it comes to our rights, our jobs, or our economic security.
On June 9-11, AFSCME local unions will hold rallies at worksites all across the state. Our message is clear: “State workers deserve a fair contract. Illinois citizens deserve quality services.” Contact your local union for the date, time and location of the rally nearest you.
And be sure to reach out to your local community. With the AFSCME “Friends and Family” cards or with yard signs or window signs, ask local businesses, elected officials, other labor unions, to stand with state workers. Remind them of the vital services that we provide and on which citizens depend.
Your AFSCME Bargaining Committee is back at the table with the Administration this week—and again next week. The Committee is working intensively to reach an agreement, but Management is showing little signs of moving off its hard-line demands.
The current union contract will expire on June 30. If no agreement is reached by then, normally the parties would agree to a contract extension that keeps the terms of the current contract in place. But there’s no way to know at this point whether the Rauner Administration will agree to such an extension.
Whatever may come, we can withstand the storm if we continue to build on the commitment and unity that are the hallmarks of our union.
• No wage increases.
• Freeze all step increases.
• Eliminate longevity pay (including for all those currently receiving it).
• Eliminate almost all semi‐automatic promotions.
• Eliminate maximum security pay.
• Reduce call‐back pay and stand‐by pay.
• Restructure the group health plan to drastically shift costs to employees—with employees paying 40% of the premium cost PLUS 40% of the cost of medical care, paid through much higher co‐pays, deductibles, and co‐insurance. Employees’ costs would increase by thousands of dollars.
• Increase dental premiums by more than 100%.
• Increase retiree health insurance costs.
• Increase “out‐of‐pocket” maximums, likely to the highest allowable under federal law.
• Require all employees hired before July 1, 2011 to “voluntarily” agree to reduce their pension benefits to the Tier 2 level.
• Eliminate the Upward Mobility Program in its entirety, as well as all other forms of tuition reimbursement, continuing education, and licensure reimbursement.
• Calculate overtime pay based on over 40 hours worked in a full week (and excludes benefit time).
• Reduce amount of holidays and vacation time.
• “Management Rights” clause would not be limited by the terms of the Union contract.
• Allow Management to suspend the contract if it determines an “emergency” exists.
• Redefine grievances to refer only to violations of the “express provisions” of the contract.
• Refuse to allow union dues, PEOPLE contributions, or Fair Share fees to be deducted from employees’ paychecks.
• Delete all language that restricts subcontracting or personal service contracts—allowing Management to privatize any state services‐‐replacing bargaining unit employees with vendor employees‐‐at any time without any notice, justification or review.
• Void the Memorandum of Understanding that places limits on mandatory overtime, allowing Management to mandate overtime without any restrictions.
• Eliminate most seniority rights during the layoff process including eliminating all bumping rights.
• Require employees to use their own time for grievance meetings.
• Require Union stewards to use their own time to represent employees.
• Completely eliminate requirement to bargain about changes in working conditions.
I had heard rumblings about that push to force union members to “voluntarily” give up their Tier 1 pension benefits, but found it hard to believe.
…Adding… This was sent to me by a reader…
I was told by a union rep that the governor is attempting to tie the Tier 2 option with the new contract. If you vote for yes for the new contract, the state employee is voting yes for the Tier 2 option. If the employee wants to vote against the Tier 2 option, they automatically vote against the contract.
“The House Democrats affirmed today that they don’t want to pass reforms that will fix a broken state government, but only want to raise taxes. Instead of working with Republicans in a bi-partisan manner to fix the deep financial crisis that they caused, Democrats insist on continuing down the path of crafting and passing unbalanced budgets that spend billions more than we can afford.”
* Senate Republican Leader Christine Radogno…
“This is a replay of how legislative Democrats have run Illinois for the past decade. Game playing, a complete disregard for balancing the budget and a burden on the taxpayers who pay the bills. We’ve spent weeks trying to negotiate sound public policy that would stop the bleeding, help create jobs and positively impact our budget. They’ve spent that time crafting another phony budget and a plan for more Democrat tax increases.”
Discuss.
*** UPDATE *** From the ILGOP…
Statement by Nick Klitzing, Executive Director, Illinois Republican Party:
“It’s like déjà vu, all over again. Speaker Mike Madigan and the politicians who blindly follow him are playing games in Springfield like they’ve done for decades. Madigan and his cronies refuse to make any tough decisions and honestly confront a crisis of their own making. Madigan did it last year. He’s done it year in and year out since he took control in 1983.
Governor Bruce Rauner has proposed bold reforms to change business-as-usual in Springfield. He’s eagerly searching for a partner who is willing to work with him and compromise to reform the state. Unfortunately, Speaker Mike Madigan has shown yet again that he cares more about his political fiefdom than solving the state’s crisis.”
” House Speaker Michael Madigan opened his press conference today by recalling that he labeled Gov. Bruce Rauner’s original budget a “reckless spending plan” because he used $2.2 billion in phantom anticipated pension savings to fund his budget.
Madigan used today’s press conference to unveil the Democratic budget plan. The proposal “will be consistent with our view of what the State of Illinois should do for Illinoisans who need the government will be helpful for them.” He admitted that there will be a revenue “shortfall” with the budget, but committed to working with the governor to find a solution.
Madigan said he’ll need “a little over $3 billion” in revenues to make the budget balance. “We’ve built cuts into our spending plan,” he added, including human services, higher education and general services. There will be increases for pension payments, Department of Corrections and K-12 education.
“The most important thing for the governor and the Legislature to do right now is to prepare a spending plan,” Madigan said, adding that he didn’t think it was “appropriate” to attach non-spending demands to the appropriations process, and pointed to the governor’s press release today as an example of non-budget issues that aren’t appropriate for the budget-making process.
“I would just disagree with his method,” Madigan said. “Several of those non-budget issues have been rejected [in the House]. They’ve lost. And now it’s time to move onto a spending plan.”
“They will say what they want to say, and it would be unfortunate if they took the focus off the budget making and engaged in a bunch of political rhetoric.”
Asked about the governor’s reported plans for post-session TV ads, Madigan said Rauner will do what he was going to do after the session ended and said the Democrats would do what they were going to do. “I’m going to continue to do my work,” he said.
Asked about Rauner’s contention that some of his Turnaround Agenda could save the state money, Madigan said: “That’s pretty much of a David Stockton theory. Do you remember David Stockton?” Stockman was Ronald Reagan’s supply-side budget director.
“He has his views about what should be done by the government,” Madigan stressed about Rauner, saying others have different views. He then reiterated his demand that non-budget issues should be off the table during a budget process.”
“Issuing threats is really not helpful to this process,” Madigan concluded.
* House Speaker Michael Madigan is set to hold a media availability today. Watch it here. But the governor’s office “responded” before Madigan’s press conference even began…
Statement attributable to Lance Trover, Director of Communications, Office of the Governor
“Speaker Madigan and the politicians he controls are walking away from the negotiating table and refusing to compromise on critical reforms needed to Turnaround Illinois. Instead, they appear ready to end the regular session with yet another broken budget or massive tax hike -and no structural reforms. The Speaker and his allies in the legislature are sorely mistaken if they believe the people of Illinois will accept doubling down on a broken system that has failed Illinois over the last dozen years.”
Whew.
Stay tuned for updates from MJM’s presser, which, as of 3:50 has not yet begun. Rauner’s statement was sent at 3:30.
When Gov. Bruce Rauner and state legislators were faced with filling a $1.6 billion hole in the state’s current budget, they turned to the same pot of money that’s been used in the past.
They decided a major part of the solution would be to take $1.3 billion out of the hundreds of special funds that are part of the state’s financial structure.
It was the first time Rauner used the technique of sweeping special state funds to help pay for other state operations. His office did not respond to questions about whether the governor might use the technique in the future.
However, Rauner did show a willingness to dip into special state funds again this spring to restore cuts made to human services programs known as the “Good Friday cuts.” The cuts later were restored when regular state revenues came in higher than expected.
When lawmakers decided to sweep $1.3 billion from special state funds to plug a hole in this year’s state budget, funds that pay for road construction took a hit.
Three funds provided $350 million of the total. The state’s road fund was hit up for $250 million, the most taken from any fund.
“We are always opposed to diversions,” said Michael Sturino, president and CEO of the Illinois Road and Transportation Builders Association.
The Illinois Department of Transportation said the fund sweeps would not affect road projects in the current year. But as Sturino pointed out, the money is not going to be repaid to the funds which means that much less that will be available in the future.
* The Question: Your thoughts on fund sweeps? Take the poll and then explain your answer in comments, please.
During his six years in Congress, Rep. Aaron Schock could count on commodity trader Darren Frye and his wife, Becky, for campaign cash, transportation and use of an upscale condominium in Chicago, according to records and sources.
But now that Schock has resigned from Congress and is under federal investigation, his dealings with donors such as the Fryes could prove far from beneficial to him.
Schock’s use of the Fryes’ condo and travel services may run afoul of campaign laws and House ethics rules, according to legal experts.
In addition, some of the Fryes’ campaign contributions have raised questions about possible “donor swapping,” a practice that falls into a gray area in the law and can allow political candidates to effectively collect more from a single donor than is legal.
Keep in mind that the Frye’s haven’t been accused of wrongdoing, but go read it all.
As state lawmakers find themselves in their typical late May posture of trying to pass a budget, a new political dynamic hovers over the proceedings: more than $34 million in campaign cash under the control of Republican Gov. Bruce Rauner and his allies.
Rauner already has sprinkled a total of $400,000 in contributions to every Republican legislator as he talks about the need for the GOP to “stay unified” at the end of session. Democrats have made those campaign donations an issue, citing what they say are the bad optics of Rauner doling out money at the same time he’s asking Republicans to take tough votes for what he calls his “Turnaround Agenda.”
But Rauner has plenty of money left to unholster against the Democratic-controlled General Assembly should the session go into overtime and stretch into the summer. The implied threat is that incumbents not supportive of the governor could face a barrage of TV and radio attack ads and negative mailings, if not find opponents fielded against them in next year’s legislative races.
Already, an advertising agency that handled Rauner’s multi-million dollar campaign commercials last year has been inquiring about buying broadcast air time, said one media representative who was not authorized to speak publicly. The ad agency declined to comment.
I spent the better part of last Wednesday asking folks around the Statehouse if they had anything positive to tell me. I went looking for anything that might indicate a silver lining to this increasingly nasty spring legislative session.
Mostly, people just laughed at me.
Other than some individual personal developments, there just wasn’t much positivity around. The governor’s chief of staff Mike Zolnierowicz and his incomparable wife Barret were about to have a new baby. They’re great people and that’s wonderful news, but it also means that “Z” was not going to be able to work on solving the problems for a few days.
A gaming expansion bill appeared to be progressing. But I’m told the governor is in no mood to sign it as long as his “Turnaround Agenda” is being ignored by the majority Democrats.
The Senate Democrats, meanwhile, were expected to move legislation to help Chicago out of its horrific fiscal mess, but there’s still the problem with the governor’s refusal to do anything for the Democrats until he gets what he wants.
So, I came up with nothing.
The governor’s list of demands had been whittled down, but he still wasn’t backing off his insistence that the General Assembly give him at least some anti-union “right to work” local zones. He wanted a “causation” standard for workers’ compensation and a property tax freeze, which in even watered-down forms continued to be a nonstarter.
The list of demands went on and on, but in exchange, the governor was willing to support $3.5 billion in new revenues, which doesn’t sound too bad until you realize that he also wanted the Democrats to agree to $3 billion in spending cuts. The governor’s folks thought they were being generous by offering more revenues than cuts, but the Democrats pointed out that getting their people to vote for both tax hikes and huge spending cuts was pretty much impossible.
Instead, the Dems talked last week about sending the governor an unbalanced budget, telling him to cut as much as he could and then they’d come back and help provide the revenue to make the monster balance. They wanted to put the cuts on Rauner’s head, and his head only.
But it was more likely that Rauner would just simply veto the budget bill in its entirety and harangue the Democrats via a massive TV ad campaign for once again producing an “irresponsibly unbalanced budget.” And I’m hearing that when the clock strikes June 1st, the governor’s list of 80 demands and concessions goes out the window and he will put his entire agenda back on the table and withdraw all the concessions, including (and especially) much-needed new revenues.
So, in an admittedly desperate attempt to find something positive to write about, I maneuvered two people, one from each side, to a table last Wednesday night to see if they could hash out one little thing.
Take it from me, these guys are all talking past each other. They just don’t understand each other, and really don’t even comprehend one another, although it did appear that the governor’s people were slightly more willing to cut a deal and they appeared to “get” the Democrats at least a bit more than the Dems appeared to “get” the governor.
The Rauner folks know, at least somewhere deep down, that attacking unions is an existential issue for the Democratic Party. The Dems ain’t gonna move a millimeter on that one. But the Rauner folks have been pointing out that raising taxes is also a potentially existential issue for Rauner and the GOP. He can’t just break his promise to reform government and the economy and then hand the majority party a gigantic tax hike. He’ll get slaughtered for that. Maybe the Dems know that and want to force him to cut his own political throat, or, being Democrats, they just don’t comprehend how tax-averse he is. But as long as he’s willing to go part way on revenues, they’re going to try and push him to go the full boat.
And then I got home Wednesday night and read Gov. Rauner’s op-ed in the State Journal-Register. “If legislators are willing to reform how we do business, they will find me an eager partner,” the governor wrote. “If they are not, then they should expect a very long extra session because I will keep fighting for major reforms.”
Like I said, I got pretty much nothing in the way of good news. Sorry.
Let’s start with what, surprisingly, is the easier part: money. Right now, Illinois has a roughly $6.6 billion hole in that budget, and the only ways to solve it are to raise taxes, cut spending or do some of both.
Rauner has offered to put anywhere from $3.2 billion to $3.5 billion in tax increases on the table (the figure depends on whom you believe). That number could be pushed somewhat higher. That depends on whether the governor is willing—in addition to partially restoring the income tax hike—to add some of the $2.2 billion in potential service-tax revenues that two civic groups proposed recently. Look for Rauner to move a bit more.
On the cut side, Democrats reportedly are willing to part with $1 billion in spending. That, too, likely is an initial bargaining position. No one yet is detailing who would lose, but insiders suggest that the University of Illinois will take a hit, reimbursement rates for physicians participating in Medicaid will drop and local municipalities will lose a portion of what they get from the state’s income tax (though not as much as Rauner originally proposed). Toss in some sweeps of “excess” revenues from special state funds, and the two sides are a mere billion or so away from a balanced budget. Shazam!
Pensions, too, aren’t where the real divisions lie now thanks to the Illinois Supreme Court, which pretty much gave the state one option: Pay up. Lawmakers could try a variation on the “consideration” plan pushed by Senate President John Cullerton, in which some benefits go up and others fall. But the savings will be modest and can’t be counted now.
Agreements on a couple of other issues are needed to give this big, end-of-session deal lift-off velocity. Lawmakers need to pass Cook County Board President Toni Preckwinkle’s pension reform plan, which pairs benefit cuts with more money from the county, and let the courts deal with it. Mayor Rahm Emanuel really does need a casino to pay police and fire pensions. And the fiscal cliff that will require the city to pay a whopping $550 million more a year in pension contributions starting Jan. 1 needs to be smoothed down. Does it really matter whether the retirement systems are fully funded in 2040 or 2050?
Then throw in a capital spending bill to give everyone some ribbons to cut. Funding source: possibly an increase in the gas tax.
But, as Greg points out, there’s still that Turnaround Agenda problem. And it’s a big one.
* I just rolled in from a weekend at the Summer Camp music festival in Chillicothe. Wow. I’ll tell you more about it some other time because I gotta get the Fax out to subscribers ASAP. But for now, here’s a live version of a Trigger Hippy song I’ve posted before. “Rise up Singing”…
* The House and Senate are convening Monday afternoon, so I expect to be back online just before then. I hope everyone has a great weekend. Sorry to shut ‘er down so soon, but I’m totally outta here, man…
* If Arlington Park wants table games, all the other tracks will want them as well. The gaming expansion bill could get much bigger…
Arlington Park officials want to add table games to the gambling options at the track in addition to the slot machines they’ve sought for years, a suburban lawmaker said.
Previous proposals called for the addition to 1,200 slot machines at the Arlington Heights horse racing track. State Sen. Matt Murphy, a Palatine Republican, said adding table games is being discussed.
“It’s on the table,” Murphy said.
As video gambling machines in bars and restaurants become more common, the track might need table games to keep up with the competition, Murphy said.
What they essentially want are full-blown casinos at the tracks.
* Who’s more to blame for the current Statehouse gridlock and pending overtime session? Take the poll and then explain your answer in comments, please.
Donald Stolworthy, acting director of the Illinois Department of Corrections, submitted his resignation to the Republican governor this week, but will remain on the state payroll while a search for a replacement is underway.
“We have accepted the resignation of Acting Director Stolworthy. At our request, he has agreed to help during the transition period to continue our transformation of the Department of Corrections while we identify the leader that will succeed him,” Rauner spokeswoman Catherine Kelly said in an email Friday.
Stolworthy was named to the $150,200 post on March 8 after serving as an official in the U.S. State Department’s prison bureau. The 54-year-old Arlington, Virginia resident replaced S.A. “Tony” Godinez, who had overseen the agency since 2011.
The governor’s office provided no reason for Stolworthy’s pending departure.
* Senate President Pro Tempore Don Harmon responds to Gov. Rauner’s SJ-R op-ed, in which the governor threatened a long overtime session unless Democrats agree to support his reforms…
After reading Governor Bruce Rauner’s opinion piece I agree with the governor on some of the problems the state faces: Our pensions need to be funded and our property taxes are too high.
Unfortunately, we don’t begin to agree on solutions.
Let’s start with pensions. I voted for a major reform two years ago. The Supreme Court just struck it down, ruling that once someone is hired by the state, pension benefits cannot be diminished.
Yet the governor continues to call for diminished benefits “going forward.” We need pension reform, but we’ll never get there with a governor who ignores the Constitution, the Supreme Court and reality.
Yes, property taxes are too high. They’re also extremely unfair to hard-working families who end up getting hit much harder than the wealthy.
I’m working on a solution to provide tax fairness for the middle class.
My solution is a fair income tax, one where higher rates would apply to higher incomes and lower rates would apply to lower incomes. It’s logical and allows middle class families to keep more of their hard-earned money. Nearly every state that borders Illinois already has such a system.
What solutions does the governor offer? None that work for the working families.
He slashes funding for our communities and freezes property taxes. That results in fewer firefighters and police officers, slow snow removal and more pesky potholes.
Illinois deserves better.
It’s clear who Governor Rauner is looking out for and it’s not regular families.
Rauner’s looking out for his Wall Street friends, the corporate millionaires and billionaires who don’t want to pay their fair share.
More alarming is that the governor refuses to move forward on a balanced budget until we approve his agenda. He’s holding the entire state hostage until he gets what he wants, and in the meantime he’s putting real families and real programs in jeopardy. This isn’t leadership. This is bullying.
His plan cripples unions and lowers the wages and benefits of working families.
He wants to make it easier for employers to refuse to pay injured workers.
He wants to make it harder to collect unemployment if your company lays you off.
He wants to keep the minimum wage lower than the cost of living.
That’s class warfare, aimed squarely at the middle class. The only people who benefit from Governor Rauner’s agenda are his corporate pals.
I’m willing to work with the governor to balance the budget.
What I won’t do is dismantle the middle class, no matter what the governor threatens.
The middle class is not a “special interest.” The middle class is the key to a healthy, thriving Illinois.
“Are you stoned or just stupid?” freshman State Rep. Chad Hays (R-Danville) asked Democrat colleague State Rep. Jay Hoffman (D-Belleville) on the House floor Friday morning, when Hoffman presented one piece of legislation after another concerning workers compensation reform, for which he then urged a “No” vote.
“I didn’t put these proposals forward, the governor did - these are your proposals, not ours,” Hoffman said. “You can’t handle the truth. The governor hasn’t put a proposal forward, and we’re not working on the budget. Rome is burning.”
Friday morning, Hoffman proposed changes to the workers’ compensation system that would require the company to be at least 50 percent the cause for injuries, that American Medical Association’s injury guidelines to be used, and other proposals that had been discussed in legislative working groups.
But he asked that his colleagues vote no on each reform. Every one of the amendments the lawmaker proposed failed, just as he asked.
* Things are most definitely getting hairy…
When a long time Dem State Rep screams "Rome is Burning" about IL, he might want to self-report, not as mere fiddler but an arsonist. #Cmon
* Speaker Madigan coined a new phrase after his millionaire’s tax proposal was defeated yesterday…
All Republicans voting on the proposed amendment voted against it. Three Democrats also voted against the measure: Jack Franks of Marengo, Ken Dunkin of Chicago and Scott Drury of Highwood.
Even though three Democrats voted against his proposed amendment, House Speaker Michael Madigan, D-Chicago, blamed members of Gov. Bruce Rauner’s party for its defeat.
“The passage of this was in the hands of the Rauner Republicans,” Madigan said. “The roll call was very clear. The Rauner Republicans voted against the resolution. They don’t even want to give the voters of the state the opportunity to vote on this question. It’s very regrettable.”
“As an individual, when I earn more I accept that I will pay more,” state Rep. Carol Sente, a Vernon Hills Democrat, said. “The approximate $1 billion per year in additional revenue is direly needed by our state to fund education.”
* But the Republicans got in some solid licks yesterday…
Rep. Ron Sandack, R-Downers Grove, took the opportunity Thursday to quiz Madigan about past votes by lawmakers that added to the state’s poor financial shape, including decisions to borrow money to make pension payments or skip payments altogether.
“Now, essentially the problem makers wish to be the problem solvers by asking taxpayers to come out of their pockets yet again without doing the real work necessary to solve our state’s financial problems,” said Sandack, who argued the tax would encourage high earners to leave the state.
Madigan said he had “no reason to disagree with your version of history” but said he was offering voters the chance to raise more money for local schools, which districts could use to ease their pension obligations.
* Under current state law, if you have any THC in your system and you’re involved in a car crash, you can be sent to prison - even if you hadn’t ingested any THC in weeks. The new marijuana decrim bill amends that ridiculous statute…
One little-reported provision of the measure would change the state’s zero-tolerance law for driving with marijuana in one’s system.
Marijuana remains in the body much longer than alcohol, after the effects of pot’s psychoactive component, THC, have worn off. So instead of drivers being deemed intoxicated with any amount of pot in their systems, the new limit, if the bill becomes law, would be 15 nanograms of THC per milliliter of blood, or 25 nanograms per milliliter of saliva.
Cassidy said the standard is based on federal studies that looked at when impairment occurs.
Police would still be able to use field sobriety tests to establish impairment regardless of blood levels, just as with alcohol.
Democrats have begun to craft their own budget without Rauner’s input. They’re looking to spend $36 billion on government operations next year, according to a Democratic source with knowledge of budget talks. That figure is the same amount lawmakers signed off on last year, which Rauner’s office has said was $1.6 billion out of whack. That shortfall will only grow next year after the January rollback of portions of an income tax increase, and questions remain about where the state will get the money to cover that level of spending.
While Democrats have made no secret of their desire to raise taxes to avoid deep cuts, they say a conversation on how to bring in more revenue likely won’t happen before the May 31 budget deadline.
There will be some “natural” revenue growth next fiscal year, but there’s no doubt that the Democrats’ budget will be way out of whack. Subscribers know even more about that gaping hole.
Gov. Bruce Rauner spent his first months in office fixing the phony budget his predecessor signed.
He’s made it absolutely clear he won’t play that game. If anyone needed a reminder, Rauner offered it Thursday in an oped in the Springfield Journal-Register. “I might be new around here, but I understand what I was sent to do. It was not to accept the dismal failure that our state government has become.”
Last year’s budget deal was, indeed, phony. It took $1.6 billion in patches to make it balance this fiscal year.
$1.6 billion is a big hole.
But compare that to Gov. Rauner’s proposed state budget, which built in a $2.2 billion hole with a completely phony pension savings, well over $700 million in phantom employee heath insurance cost savings, and around $100 million in illusory savings from human services.
Madigan and Senate President John Cullerton complain that budget negotiations with Rauner have been fruitless.
From what we hear, it’s because they won’t give. On anything. Behind closed doors, Rauner has taken his most controversial proposals off the table. He’s pushing for workers’ compensation reform, term limits, an honest effort at restructuring state government. He will be flexible on their wishes, which would include more spending than he proposed in his budget.
The Democrats haven’t budged. That’s true. It’s their usual play.
But Rauner has most definitely not taken all of his “most controversial proposals off the table.” Subscribers know more about this. He has moved some, but, man, there are still a whole lot of things that Democrats cannot and will not agree to.
This is not a cartoon, even though some (*cough*Tribune*cough*) would like to portray it as such. And I’m sure we can expect more editorials like this as the summer progresses.
With just 10 days remaining in the spring legislative session, Gov. Bruce Rauner has finally put large parts of his so-called Turnaround Agenda into bill form, a move that follows months of criticism by Democrats who argued there was no way to vet his plans.
Rauner aides shared copies of five pieces of legislation with reporters late Thursday, including measures that would make changes to workers’ compensation insurance for employees hurt on the job, overhaul the system for awarding judgments in civil cases and freeze local property taxes. Also drafted were two constitutional amendments that would set term limits for lawmakers and statewide officials and change the way legislative boundaries are drawn.
Administration officials say the legislation will be formally filed Friday, but would not say who they’ve recruited to sponsor the measures. The governor’s office said it decided to release the information after Democrats walked away from the bargaining table.
* The administration won’t be filing a “right to work” zones bill, however…
Not included in the stack of new bills is legislation to create right-to-work zones where union membership would be voluntary — a proposal that has drawn heavy protests from organized labor and that House lawmakers soundly defeated during a symbolic vote last week.
But the legislation will include measures to allow some local governments to opt out of collective bargaining with public-employee unions and prevailing wage agreements, which set a minimum level of salary and benefits for work on government projects. Rauner has said the agreements drive up the cost of public construction projects.
A spokesman for Rauner declined to comment on the proposals Thursday. But Rep. Ed Sullivan, a member of House Republican leadership, said the package represents Rauner’s attempts to compromise with Democrats who control the Legislature following weeks of closed-door, bipartisan meetings. […]
Democrats, who hold supermajorities in both chambers, said they would review the bills, but offered no guarantees they would advance.
It’ll be interesting to see what the Dems do with the term limits and redistricting proposals. No way does MJM want to deal with term limits on the floor. Everything else could likely be killed off without much worry.
Sources say the move by Rauner’s administration is to respond to complaints by Democrats that the governor has failed to give them specific language he wants included in reform measures he’s pushing.
“Democrats have all but abandoned his working groups,” one source with knowledge of the proposals told the Sun-Times. “This is his response to the Democrats’ failure to cooperate and meaningfully find common ground on his agenda items.” […]
One Republican said the six so-called “vehicle bills” to be filed Friday should at least get an airing on the committee level.
“I welcome that opportunity. Look, from a minority perspective in the House, we’re fighting off bad bills and fighting off bad bills brought ostensibly in the name of the governor. They were examples of political theater only,” said state Rep. Ron Sandack, R-Downers Grove. “I’d like to have a real debate. I think the issues are important enough to have a serious discussion.”
If they want committee hearings, though, maybe the Dems will oblige.
* Meanwhile, House Speaker Michael Madigan has filed a package of amendments dealing with workers’ comp. A vote on tort reforms had been planned today, but that’s being pushed off until next week.
The business community is asking for “Present” votes from members…
Illinois job creators have consistently called for comprehensive and meaningful reform of the Workers’ Compensation Act that will significantly reduce costs for employers – private and public sector - while protecting the rights of legitimately injured workers and ensuring their access to quality health care. Despite the 2011 reforms, Illinois still has the 7th highest cost of workers’ compensation in the United States and it is consistently cited as one of the primary reasons that companies move out of state or choose not to invest capital and grow jobs in Illinois.
“At this time, we are asking all House lawmakers to vote present on the workers’ compensation amendments filed yesterday until our elected officials have reached comprehensive agreement on reform. Illinois employers stand ready to work with leaders on both sides of the aisle.”
Chicagoland Chamber of Commerce
Illinois Chamber of Commerce
Illinois Manufacturers’ Association
Illinois Retail Merchants Association
National Federation of Independent Business
Associated Builders & Contractors
Home Builders Association of Illinois
Illinois Self-Insurers Association
Mid-West Equipment Dealers Association
Mid-West Truckers Association
Technology & Manufacturing Association
Friday, May 22, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Credit unions are dedicated to fulfilling the daily financial needs of their membership and serving the needs of their communities. The movement’s “People Helping People” philosophy also motivates credit unions to participate in meaningful and important local activities, such as honoring our veterans.
As a thank you for their ultimate sacrifice to our country, credit unions from across the state unite to sponsor wreaths to decorate the gravesites of veterans from each branch of the military during the holidays. This past year, through member donations collected at their branches and with funds directly provided by the credit unions themselves, nearly 570 gravesites were decorated with wreaths sponsored by Illinois credit unions at the Abraham Lincoln National Cemetery, as well as at Arlington National Cemetery in Washington, D.C. True to their mission, groups of volunteers from Illinois credit unions also participate in the ceremonial act of placing wreaths at the gravesites.
As not-for-profit financial cooperatives with a mantra of “People Before Profits”, credit unions are a highly valued resource by nearly 3 million Illinois consumers — and remembered for their efforts in serving their communities this Memorial holiday and every day.
* Nothing so far from the governor’s office or the AFL-CIO, but The Tribune has a long story today about how the governor is pushing local governments to pass resolutions supporting his “right to work” agenda and other issues.
Only a fraction of the village and county boards across the state even took up the symbolic resolution of support that Rauner aides drafted. Most of the places that approved it are small, and the resolution sometimes ran into problems in larger locales that outright rejected, set aside or altered the measure to strip out the anti-union language. […]
Of the three dozen or so that have approved it, most have populations under 10,000 or are counties with less than 50,000 people. Rockford, Illinois’ third-largest city, adopted the resolution, as did McHenry County. And a few medium-sized suburbs have passed the measure, including Elk Grove Village and Round Lake Beach.. […]
Naperville isn’t known as a Democratic stronghold, but hundreds packed into the municipal center in late April when the council planned to vote on a modified version of Rauner’s resolution that contained softer language about collective bargaining. Dozens spoke against it during an extended public comment period that led the council to put off the matter.
Some council members said they had received personal phone calls from the governor on the eve of the vote, but were confused by the resolution and felt rushed to support something they didn’t fully understand. The Naperville situation highlighted what Democrats including Madigan say has been a flaw in the governor’s approach: His delay in putting out legislation detailing out how his proposals would work.
