* From the US Attorney…
FORMER SPEAKER OF THE UNITED STATES HOUSE OF REPRESENTATIVES CHARGED WITH STRUCTURING CASH WITHDRAWALS TO EVADE
CURRENCY TRANSACTION REPORTING REQUIREMENTS
AND MAKING FALSE STATEMENT TO THE FBI
CHICAGO — The former Speaker of the United States House of Representatives was charged today with structuring the withdrawal of $952,000 in cash in order to evade the requirement that banks report cash transactions over $10,000, and lying to the Federal Bureau of Investigation about his withdrawals. The defendant, JOHN DENNIS HASTERT, 73, of Plano, Illinois, was charged with one count each of structuring currency transactions to evade Currency Transaction Reports and making a false statement to the FBI in an indictment returned by a federal Grand Jury. He will be ordered to appear for arraignment on a later date in U.S. District Court.
According to the indictment, in 2010, Hastert agreed to provide Individual A $3.5 million in order to compensate for and conceal his prior misconduct against Individual A. From 2010 to 2014, Hastert withdrew a total of approximately $1.7 million in cash from various bank accounts and provided it to Individual A. Beginning in approximately July 2012, Hastert started structuring his cash withdrawals in increments of less than $10,000 to evade the filing of Currency Transaction Reports (“CTRs”), which banks are required to file for cash withdrawals in excess of $10,000. In December of 2014, when questioned by the FBI regarding his structuring of cash withdrawals, Hastert falsely stated that he was keeping the cash.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Stephen Boyd, Acting Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
Each count of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Steven Block and Carrie Hamilton.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
* The complete indictment is here…
1. At times material to this indictment:
a. From approximately 1965 to 1981, defendant JOHN DENNIS HASTERT was a high school teacher and coach in Yorkville, Illinois. From approximately 1981 to 2007, defendant JOHN DENNIS HASTERT was an elected public official, including eight years as Speaker of the United States House of Representatives. From approximately 2008 to the present, defendant JOHN DENNIS HASTERT has worked as a lobbyist in Washington, D.C.
b. Individual A has been a resident of Yorkville, Illinois and has known defendant JOHN DENNIS HASTERT most of Individual A’s life.
c. In or about 2010, Individual A met with defendant JOHN DENNIS HASTERT multiple times. During at least one of the meetings, Individual A and defendant discussed past misconduct by defendant against Individual A that had occurred years earlier.
d. During the 2010 meetings and subsequent discussions, defendant JOHN DENNIS HASTERT agreed to provide Individual A $3.5 million in order to compensate for and conceal his prior misconduct against Individual A.
e. Shortly thereafter, defendant began providing Individual A cash payments.
Oh, man, this doesn’t look good at all.
*** UPDATE *** Yeah, this does not look good…
Although the indictment specifies neither the “bad acts” nor the victims, sources said they could be from before Hastert, who is now a lobbyist in Washington, entered politics in 1980. [Emphasis added.]
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*** UPDATED x1 *** Question of the day
Thursday, May 28, 2015 - Posted by Rich Miller
* Sun-Times…
In March, Rauner tapped Beth Purvis, a former charter school director, as his education secretary at an annual salary of $250,000. […]
But her contract, signed March 13, indicates that she’s being paid out of the Department of Human Services, even as it indicates she will “report directly to the governor’s chief of staff or designee.”
Three weeks after Purvis’ contract was signed, the governor’s office announced that the Department of Human Services was strapped for cash, and sliced $26 million in services including for autism, epilepsy and burials for the indigent. The cuts, later known as “the Good Friday Massacre,” caused some programs to completely shut down. The cuts caused a furor, prompting House Speaker Michael Madigan, D-Chicago, to call a public hearing on why it happened after Democrats said they believed a budget deal with the governor protected such services.
* But check this out…
Reached by phone while at a conference in California on Wednesday, Purvis declined comment
Um, wait.
It’s May 28th, three days before the May 31st end of session deadline and she’s in California?
* Ms. Purvis…
* The Question: Caption?
And keep it clean, people.
*** UPDATE *** Sun-Times…
llinois House Democrats are asking Gov. Bruce Rauner to appear before a House committee to explain why the governor’s office arranged to have his $250,000-a-year education czar paid out of money meant for “the frailest and most vulnerable populations in the state.” […]
In a letter to Rauner, obtained by the Sun-Times, state Rep. Greg Harris, D-Ill., questions testimony by then-Acting DHS Secretary Gregory Bassi and then-interim secretary James Dimas “that the lack of available funding was responsible for the decision to eliminate or reduce funding for these vitally needed programs. These programs serve many of the frailest and most vulnerable populations in the state.”
“I invite you to appear before the House Human Services Appropriations Committee to explain the decision-making process that led to this situation. We are also interested to know if there are other department heads whose compensation is buried within the budgets of departments other than those that they lead,” wrote Harris, chairman of the committee.
The full letter is here.
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On the bright side…
Thursday, May 28, 2015 - Posted by Rich Miller
* This thing looks like it’s rolling forward…
State lawmakers believe they’ve reached a deal on a police reform package that includes guidelines for body cameras.
Legislators said at the beginning of the year that police reform was going to be a key issue this session. Senate Bill 1304 aims to address several areas besides body cameras, including officer-related homicide investigations and additional training. It also includes $6 million in funding for crime labs at the request of House Speaker Michael Madigan, D-Chicago. […]
The package contains provisions for police body cameras but does not mandate them. The bill would change the current eavesdropping laws requiring two-party consent to allow officers to record without permission.
Police who decide to wear the cameras could only turn them off when talking with a witness or victim or during personal and strategic conversations. All interactions with the public would have to be recorded.
* More…
The package, negotiated by state Rep. Elgie Sims, D-Chicago, calls for adding a $5 fee to traffic tickets, with a portion going to pay for cameras.
It also sets out rules for how officer-involved incidents are investigated, including a requirement that officers from outside of a department are called in to investigate.
“What we wanted are objective eyes on an incident,” Sims said.
The proposal also outlines how reports are to be made public in order to ensure there is no secrecy.
* And no Republican opposition means there’s no current Rauner brick. Good news, for a change…
The Illinois House on Wednesday overwhelming pushed through a sweeping measure aimed at curbing heroin use and preventing overdose deaths by expanding specialized drug courts that focus on treatment.
The measure also would require police departments and fire houses to stock opioid antidotes that could be used to counteract heroin overdoses. In addition, the state’s Medicaid health care program for the poor would have to cover the cost of drug treatment programs. […]
The House approved the measure 114-0, though Republicans expressed concern about the possible costs of the bill, which originally were estimated to be as high as $25 million a year. […]
The measure also attempts to strengthen the state Department of Human Services’ prescription monitoring program to help doctors and pharmacies detect “doctor shoppers,” a practice in which drug addicts obtain various prescriptions from several doctors. It also establishes drug education programs for schools and reforms drug court programs to keep users out of jail and in rehabilitation programs.
Despite all the other implosions, some serious progress is truly being made on crime issues this year.
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“Always bet on nothing”
Thursday, May 28, 2015 - Posted by Rich Miller
* WUIS…
Since it opened a decade ago, the Lincoln museum has been under the control of the Illinois Historic Preservation Agency. The museum has its own advisory board, but House Majority Leader Barbara Flynn Currie says those advisors were frustrated. […]
Under Currie’s proposal, the two will operate independently.
Gov. Bruce Rauner had wanted Historic Preservation to adopt a tourism focus and be merged with the state’s economic development agency. But that idea was dropped over concerns Historic Preservation would lose its focus on, well, historic preservation.
* But unless both chambers pass it and can override a veto, this ain’t happening…
“My understanding from our staff is (the Rauner administration is) copacetic with these changes in the structure of HPA on the one hand and ALPLM on the other,” Currie said.
She said details are still being worked out on the idea of creating a public-private partnership for some of DCEO’s economic development activities.
However, Rauner spokeswoman Catherine Kelly disputed Currie’s statement.
“We do not support this legislation,” Kelly said.
* And until the war dies down, this probably ain’t happening, either…
ayor Rahm Emanuel is trying to solve his police and fire pension problem by paying less upfront, taking longer to pay off the debt and getting some of the money to cover what the city owes from a Chicago casino.
The approach is designed to soften a massive financial hit expected next year, when the city is required to increase its payments into the two pension funds by $549 million as required by a 2010 state law. That’s equal to nearly one-sixth of the city’s yearly operating budget and accounts for the bulk of a 2016 budget shortfall now pegged at nearly $1 billion.
Emanuel, however, wants to hit the reset button. Instead of paying the additional $549 million next year, the city would spend significantly less than that. Then the city would start to increase how much it puts into the police and fire pension systems over a number of years while also spreading out its payments over a longer period of time.
The mayor’s plan comes three years after he first traveled to Springfield to declare that the city’s financial day of reckoning was fast approaching. Emanuel is now trying to persuade lawmakers to act on a specific proposal, but he’s doing so as they remain embroiled in their own stalemate over state budget woes.
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More on strike preparedness
Thursday, May 28, 2015 - Posted by Rich Miller
* Amanda followed up on my post yesterday about the strike Contingency Preparation Form sent to agency heads…
Rauner’s spokesman ignored repeated inquiries about the origin of the leaked document; instead he said only that “we continue to negotiate in good faith.”
I can’t tell you where and how I got it, of course, but I can say the form was most definitely not leaked by the governor’s office.
* More…
AFSCME’s spokesman says there’s never been a strike in the 40 years Illinois has had collective bargaining. But he says after six months of contract negotiations, the two sides remain far apart. The union spokesman went on to call the Contingency Preparation Form a “troubling sign” that Rauner’s pushing for a confrontation that’d disrupt important state services.
I still think it’s just reasonable management to have preparations at the ready in case a strike does happen.
* More…
The governor was asked in mid-May if state employees should be concerned about layoffs or a strike. “Hopefully not,” he said. “We’ve got to make some big changes. Changes are hard. And there’s going to be a lot of resistant to change.” Rauner went on to say he wants to be able to pay employees more, based on productivity - not just seniority, “so we’re going to have some tough discussions. But I want everybody who works in government to have a great career. I want them to be well compensated. I want them to have a great retirement. But we need a system that’s affordable, and also incentives everybody to save taxpayer money because the tax burden on our citizens is too high already.” […]
“I may have to … take a strike and shut the government down for a few weeks … that’s a possibility,” [Rauner said in March of 2013]. “I don’t know many politicians who would be willing to do that. I won’t be happy doing it, but I will do it proudly because it’s the right thing to do.”
Which Rauner will emerge?
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Workers’ comp reforms go down in flames
Thursday, May 28, 2015 - Posted by Rich Miller
* From BusinessInsurance.com…
Stephen Schneider, Midwest region vice president at the American Insurance Association in Deerfield, Illinois, said the insurance community is optimistic that Illinois lawmakers will have continued discussions during the current session about workers comp reforms, including some ideas the AIA would like to see proposed.
Those include controls on physician dispensing of medication to workers comp claimants and tying the state’s workers comp medical fee schedule to a percentage of Medicare pricing for similar services.
“It’s going to be day-by-day through the end of session and perhaps longer,” Mr. Schneider said of the chances of action on comp-related legislation.
PCI’s Mr. Junkas agreed that workers comp reforms may still be on the table for Illinois, saying many political experts expect the legislative session to extend beyond its scheduled May 31 adjournment.
“There’s going to be continual discussions ongoing, and I think workers compensation’s going to remain in that mix,” Mr. Junkas said.
* I agree that workers’ comp reform needs to be on the table and could actually be resolved eventually. But, man, things aren’t going all that well these days. From yesterday’s Senate hearing on workers’ comp reform…
Greg Baise of the Illinois Manufacturers Association said workers’ compensation costs hang “like an anvil around the necks of job creators in Illinois. We’ve seen the loss of 300,000 manufacturing jobs since the turn of the century, and reforming workers’ compensation is the first step in making our state more attractive.”
Several times during the debate tempers became short, particularly when Barickman said that the decisions of other states could be “used as a template” for Illinois lawmakers. He cited changes in Florida, Oregon and Indiana.
“Where is your proposal for us to consider?” Barickman asked of committee chairman Kwame Raoul, D-Chicago.
“Mine was a 2011 package that we negotiated with employers at the table, the right way,” Raoul responded, his voice rising in anger. “As far as these working groups, senator, I brought up the same points that I’m bringing up today. They were not addressed, senator.”
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Ask the Insurance Industry “Where’s the money?”
Thursday, May 28, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Two recent studies published by NPR/Pro Publica and the federal Occupational Safety and Health Administration (OSHA) show that nationwide, insurance companies have kept any cost savings from recent workers’ compensation “reforms” for themselves, with profits climbing to 18 percent in 2013 – while middle and lower-income families and taxpayers are paying the price.
In 2011 Illinois enacted its own workers’ compensation “reform” package aimed at lowering costs for businesses. Workers gave up longstanding rights and in return, insurance companies were to be transparent with pricing and pass savings along to employers. As it turns out, only the workers kept up their end of the bargain.
The National Council on Compensation Insurance (NCCI) is an independent, non-partisan agency comprised of insurance professionals licensed by the Illinois Department of Insurance to assess workers’ compensation in Illinois and make premium rate recommendations to insurers. Since 2011, NCCI has recommended insurance premium reductions totaling nearly 20 percent.
The 2011 reforms were projected to save insured employers nearly $1 billion assuming the insurance industry would fully adopt the NCCI recommendations.
The insurance industry’s failure to fully implement NCCI recommended rate reductions has prevented Illinois insured employers from realizing any meaningful savings.
No matter how many benefits are cut, medical reimbursements are lowered, and claims are denied, the state’s businesses won’t see corresponding savings without our leaders addressing the promises previously broken by the insurance industry.
For more about workers’ compensation, click here.
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Today’s quotable
Thursday, May 28, 2015 - Posted by Rich Miller
* Sen. Chapin Rose (R-Mahomet)…
“Once again, it looks like Speaker (Mike) Madigan is going to preside over another round of long overtime summer sessions under his third or fourth governor now. What’s the common denominator in all of this? Madigan.”
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An ever-widening war
Thursday, May 28, 2015 - Posted by Rich Miller
* Greg Hinz…
As Springfield battles over Gov. Bruce Rauner’s pro-business “turnaround” agenda, you’d think he’d want the top business group in the state’s economic center at his side. And you’d think that group would be fully engaged.
In fact, the Chicagoland Chamber of Commerce is being snubbed by the governor after it appeared to snub him—frozen out of key negotiations over business-oriented legislation put before the General Assembly.
Though both sides are trying to play down any dispute, there’s bad blood between the GOP governor and the state’s largest business group. And the topic of why the chamber is being dissed is sparking all kinds of chatter among other business groups. It certainly reveals a few things about how power works in Chicago and Illinois, as well as the obstacles Rauner faces in getting approval for his ideas on workers’ compensation and unemployment insurance reform, limits on unions, an end to the prevailing wage and other changes. […]
“They’re the largest business organization in the state, and they have to get updates from others because they’re not at the table,” another source said. “It comes directly from the governor’s office. No question about it.”
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Back to the future?
Thursday, May 28, 2015 - Posted by Rich Miller
* Remember this one?…
We raised a bunch of money for charity with those slogans and more on mouse pads, t-shirts, polo shirts, coffee mugs, even (by special request) underwear.
We may be revisiting that idea.
Thanks to Dave Comerford for the post, by the way.
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Why Illinois Needs The Low Carbon Portfolio Standard
Thursday, May 28, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
The Low Carbon Portfolio Standard (LCPS) is good for Illinois consumers, our economy, our environment, and the reliability of our electric system. The LCPS is a WIN-WIN for all of Illinois’ low carbon sources of energy, which include wind, solar and existing nuclear facilities.
Unfortunately, energy policies of the past have failed to properly value Illinois’ nuclear facilities for the economic, reliability and environmental benefits they provide, and as a result, some nuclear facilities may close. If that happens, the consequences of consumers and communities all across the state of Illinois would be catastrophic:
• $1.8 billion every year in lost economic activity
• Nearly 8,000 jobs lost, many of which are highly skilled, good paying jobs
• Up to $500 million annually in higher energy costs statewide, according to a PJM analysis
• $1.1 billion per year due to increases in carbon and other pollutants
• Hundreds of millions of dollars to construct new transmission lines
In fact, the cost to Illinois of allowing nuclear plants to prematurely retire are as much as 12 times greater than the maximum cost of the LCPS, when fully considering increased wholesale power prices, transmission costs, adverse economic impacts, and adverse environmental impacts, according to a State of Illinois report.
Members of the General Assembly: Vote YES on the
Low Carbon Portfolio Standard (HB 3293 & SB 1585)
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Keep calm and… Oh, nevermind
Thursday, May 28, 2015 - Posted by Rich Miller
* AP…
Democrats have abandoned Gov. Bruce Rauner’s idea to privatize the state’s business-development agency but are moving ahead with Speaker Michael Madigan’s plan to make the state’s shrine to Abraham Lincoln a separate agency. […]
Democrats proceeded with their agenda, [Speaker Madigan’s spokesman Steve Brown] said, because Rauner’s press operation has been churning out anti-Madigan statements over disagreement on a budget plan and Rauner’s business reforms in the closing days of the spring session.
“We were trying to put together a plan in cooperation with the governor that had a lot of transparency,” Brown said. “But I guess I’d have to say right now it’s under review while the governor calms down.”
* Needless to say, the governor ain’t calming down. From a press release issued early this morning…
Will Legislators “Continue to be part of the Madigan-Cullerton problem, or will they stand up for the people of Illinois?”
On the heels of rejecting compromise worker’s compensation reforms to grow the economy, legislators controlled by Speaker Madigan will consider compromise lawsuit reform and property tax freeze legislation today.
Belleville News Democrat - Editorial: Same sad story for Illinois
“We had hoped that this time it would be different, but no. Illinois lawmakers seem ready to wrap up their spring legislative session and once again kick the budget can down the road. No solutions? No problem. Guess no one really should be surprised that Democratic leaders Michael Madigan and John Cullerton are choosing not to work with Republican Gov. Bruce Rauner. The new governor wants to reform the way Illinois does business but the two grizzled veteran leaders have no desire to change. Illinois may be dysfunctional, but it’s a system that works just fine for them and political insiders. It’s so incestuous…
It’s so blatant it’s breathtaking, and Republican lawmakers alone can’t stop them. They would need help from rank-and-file Democrats who are also fed up with refusing to address the state’s fiscal problems. What will our local Democratic lawmakers do? Will they continue to be part of the Madigan-Cullerton problem, or will they stand up for the people of Illinois?”
Rockford Register Star – Editorial: Who will right Illinois’ fiscal ship?
“’You just can’t spend like a bunch of drunken sailors all the time.’
No, that wasn’t Illinois Gov. Bruce Rauner or one of his Republican allies who said that, although it certainly would have been appropriate after Democrats passed a budget that would have the state spend $3 billion or $4 billion more than it expects to take in.
It was the state’s former treasurer and comptroller, Judy Baar Topinka, who died late last year. Topinka’s remark came after Gov. George Ryan’s 2002 budget address. Needless to say things have not gotten better in Illinois the past 13 years…
…The governor wants reforms and Madigan has shot down those reforms. The governor asks for responsible spending and Madigan and his friends pass a budget that has a huge hole in it.
Reform and budget negotiations should not be separated, as Madigan wants. There’s no better time to discuss one because it affects the other. When politics works, it’s a give-and-take process.
You don’t have to buy into everything Rauner wants to acknowledge that Illinois must change to have a competitive economy in the 21st century…”
* The governor’s press shop also just sent reporters the Senate committee testimony this morning of Deputy Chief of Staff for Legislative Affairs Richard Goldberg. The following sentences were the ones specifically highlighted by the governor’s staff…
Unfortunately, no compromise is ever good enough for those who stand in the way of reform.
In short, while Governor Rauner says Yes to reform and Yes to compromise, the legislators in control of the General Assembly say No to reform, No to compromise, Yes to unbalanced budgets and Yes to higher taxes without reform.
Taxpayers are fed up pouring their hard-earned money into a broke and broken system. This morning, this Committee and those in control of the Senate have an opportunity to change course.
The bill before you is a critical reform we need to Turnaround Illinois – to make Illinois more competitive, to grow our economy and to create jobs. The bill before you represents compromise and reform.
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* AP…
Gov. Bruce Rauner’s office has revised its plan to change state hiring to allay concerns of Democrats and unions.
* Um, well, maybe. Check out the Rauner press release…
Refusing to Reform: Democrats Also Walking Away from Fixing Illegal Political Hiring
“By protecting illegal political hires, Democrats are proving to the people of Illinois that they don’t care at all about reforming anything that’s broken in state government.”
– Lance Trover, Director of Communications
After walking away from compromise reforms to turn around Illinois’ economy, Democrats appear to now be blocking compromise reforms that will fix illegal political hiring in state government.
After Senator McConnaughay filed reform legislation last month, the Governor’s Office met regularly and frequently with leadership staff from each of the four legislative caucuses. As detailed below, the legislation has been significantly revised to provide a clearer, more tailored framework.
The Governor’s Office and the legislative caucuses also met with representatives of AFSCME, Teamsters, and Laborers. While there is general agreement that reforms are needed, labor organizations will not agree to reforms that impact positions already in the bargaining unit. Unfortunately, as evidenced in the conflict between the two pending lawsuits, the State must resolve the status of current employees too. Nonetheless, the legislation has been narrowed to minimize the adverse impact on labor organizations.
An amendment to the original bill has now been filed, which represents compromises that were negotiated. Despite this, Democrats are now refusing to support the reform bill.
I’ve asked various folks for comment. I’ll let you know.
*** UPDATE *** Statement from Michael T. Carrigan, President, Illinois AFL-CIO…
“Yet again, Gov. Rauner seems to be using the cloak of so-called ‘reform’ to attack union members. Our unions strongly oppose political influence in the hiring process and would support a good bill to eliminate it. But this legislation is a Trojan Horse the Rauner Administration is trying to use to limit all workers’ right to bargain collectively. He is intentionally using an ax for legislation that calls for a scalpel.
“We remain ready to work toward legislation that addresses the real problem—political influence in hiring—which has no relation to collective bargaining rights.”
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Priorities, please
Wednesday, May 27, 2015 - Posted by Rich Miller
* I don’t in any way condone or excuse this behavior. No way. No how. It’s stupid and cruel.
‘
But, seriously, how many people were shot in Chicago last weekend? You’d think the police and the state’s attorney would have better things to do with their time…
A West Side man whose video of himself smoking marijuana with his pet chameleon went viral and led to a misdemeanor animal cruelty charge was acquitted Wednesday by a Cook County judge who found his behavior immature but not criminal.
Bruce Blunt said he sometimes blew smoke into the mouth of his chameleon, Binna, because it seemed to calm the sometimes aggressive reptile. […]
Chicago police arrested Blunt near his mother’s home after conducting brief surveillance to find him over several days, according to trial testimony. […]
Prosecutors said the video proved Blunt had criminally mistreated his pet.
“It’s just a little guy,” said Assistant State’s Attorney Mike Bagnowski, speculating what effect the marijuana smoke would have on Blunt’s attorney before withdrawing the remark. “He blew smoke not once but twice into its mouth.” [Emphasis added.]
There are people literally rotting in Cook County Jail waiting on misdemeanor trial dates and they’re clogging the courts with this stuff?
Sheesh.
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The Senate Dems fully join the fight
Wednesday, May 27, 2015 - Posted by Rich Miller
* From a press release…
Illinois Senate to Vote on Governor Rauner’s Cuts
The Governor Rauner budget cuts will be voted on today.
HB 200 –
50 percent cut to Local Government Distributive Fund
SB2038 –
A1: Human Services. Cuts to autism, child care, early intervention, teen reach and breast and cervical cancer screenings
A2: Higher education. 31 percent state funding cut to state universities
A3: TRS: Eliminates state support for Teachers’ Retirement Insurance Program, College Insurance Program.
A4: Medicaid: $1.5 billion cut to Medicaid services.
Watch our live session coverage post for updates.
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Rauner asks agencies for strike plans, impacts
Wednesday, May 27, 2015 - Posted by Rich Miller
* I’m not yet convinced that AFSCME will strike. I figure they’ll wait for a lockout attempt. But one never knows, so this “Contingency Preparation Assessment” form sent out to agencies asking them for their plans for and the potential impact of a public employee strike seems like a prudent administrative move.
Click the pic for a larger image…
Notice that temp workers will apparently be hired.
* Something that got cut off from my screen grab above…
Only peace officers, security officers, firefighters and fire protection district paramedics can be automatically enjoined due to their job category.
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Caption contest!
Wednesday, May 27, 2015 - Posted by Rich Miller
* From a few days ago…
Illinois community college and university presidents are enjoying a “fantasy world of lavish perks” — including housing allowances, cars, club memberships and generous bonuses — as part of sometimes secret deals that show disregard for taxpayers, according to a new report from state legislators.
The perks include a $32,000 housing allowance for the president of Harper College, a $450,000 retention bonus for a former University of Illinois at Chicago chancellor and $30,000 toward two retirement plans in addition to state pension contributions for the Elgin Community College president. […]
Though the report blasts the Glen Ellyn-based college for its recent scandals, it also chastises public universities and community colleges statewide for providing “excessive fringe benefits” and lucrative exit deals for top administrators, including a $480,418 severance package to the former Illinois State University president after less than a year on the job. […]
In addition to highlighting the compensation packages, the report also takes aim at the “skyrocketing” number of administrators at the public schools as tuition and fees have increased.
At public universities in Illinois, full-time administrative staff increased 31.1 percent from 2004 to 2010, according to the report, while there was only a 1.8 percent increase in full-time faculty and a 2.3 percent increase in students.
* As noted below, university presidents/chairmen/chancellors were in Springfield yesterday and posed for a photo in front of the Statehouse…
Pictured, left to right are: front row, University of Illinois President Timothy L. Killeen, Northeastern Illinois University President Sharon Hahs and Governors State University President Elaine P. Maimon; middle row, University of Illinois at Springfield Chancellor Susan Koch, Illinois State University President Larry H. Dietz and Chicago State University President Wayne Watson; back row, Southern Illinois University President Randy J. Dunn, Eastern Illinois University Acting President Blair Lord, Western Illinois University Board of Trustees Chair Cathy E. Early and Northern Illinois University Board of Trustees Chair Dr. John R. Butler.
* The pic…
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Question of the day
Wednesday, May 27, 2015 - Posted by Rich Miller
* The press release…
Don’t miss the Traveling World of Reptiles Show, Touch-a-Truck exhibit, interactive safety demonstrations and more at this year’s Children’s Safety Expo hosted by State Sen. Christine Radogno (R-Lemont) and State Representatives Jim Durkin (R- Western Springs) and Ron Sandack (R- Downers Grove) on Saturday, June 6 from 9:00a.m. to Noon at Lakeview Junior High School, 701 Plainfield Rd. in Downers Grove. […]
Admission is free. There will also be free giveaways at the event, and the first 300 children will receive a FREE lunch bag! Demonstrations at this year’s expo include: True Balance Karate class, the Traveling World of Reptiles Show and the Darien Police K-9 Unit. Also, the LIFESTAR Chicago medical helicopter will be there from 9:30am - 11:30am.
* The Question: Suggestions for next year’s event?
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Illinois switches marketing gears
Wednesday, May 27, 2015 - Posted by Rich Miller
* From DCEO’s “Why Illinois” website…
Highly Educated Workforce
In Illinois, our workforce is one of our biggest competitive advantages. According to the last census, 34 percent of Illinoisans have a bachelor’s degree or better. 11 percent have an advanced degree. TechAmerica says that our workforce is in the Top 10 for hi-tech workforces. That means that you will have an easier time finding the talent you need to make your business grow. And since two of the nation’s top engineering schools and top business schools are located in Illinois, you can rest assured that talented personnel will be available for a long time to come.
* There’s a reason for that emphasis…
This year, for the first time since CNBC began keeping track in 2007, workforce is the attribute most frequently cited by states in their efforts to attract business. […]
It’s a sentiment echoed by members of the CNBC Global CFO Council, which includes chief financial officers from a broad array of public and private companies. Asked to rank 10 factors in deciding where to locate or expand facilities, 53 percent of the respondents ranked workforce No. 1. No other factor came close. […]
“We’ve undermarketed ourselves,” [DCEO Director Jim Schultz] said, noting that 56 percent of Illinois’ population has more than a high school diploma. “We think the opportunity is to locate business where the best skill sets reside.”
* But there are two big problems…
Roughly two-thirds of our CFO Council respondents consider so-called “right to work” laws banning mandatory union dues an important or very important factor in deciding where to locate.
Ugh.
* And…
As for Illinois, if last year’s rankings are any guide, it may need to do some catching up to its new workforce sales pitch. Illinois’ workforce finished 32nd last year, contributing to the state’s overall 27th place ranking.
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December’s quotable
Wednesday, May 27, 2015 - Posted by Rich Miller
* I mentioned this to subscribers the other day, so I went back today and watched part of my December 17, 2014 City Club speech to pull the quotes. It was a warning I often mentioned to the governor’s people in subsequent weeks…
The Speaker’s being really nice to the governor-elect right now.
[Steve Brown] disagrees with this analysis, which I brought up to him last night.
Madigan is siding with [Bruce Rauner] on everything, just about.
Um…
I would be wary of that.
I mean, you dig? The man ain’t nice to anybody, except his children and his wife.
Man, I’ve never seen him be this nice to a governor-elect.
And, it’s like, wow, he’s gonna have a big ask, man.
“Oh, yeah, I did this for you. Now, let’s go over the list. I did this. I did this. I did this, you didn’t even ask.
“You’ll just have to figure out what I want.”
By the way, I’m working on dates with the City Club for this December’s annual “Christmas with Rich Miller.” I’ll let you know when tickets go on sale.
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Pot, meet kettle
Wednesday, May 27, 2015 - Posted by Rich Miller
* A good point by Madeleine Doubek …
1. Madigan reminded all within earshot that when Rauner first gave his state budget address, which did indeed include more than $2 billion in pension savings that were unlikely to be achieved, that the Speaker called it “reckless” then and has been calling it “reckless” since.
2. Then the Speaker proceeded to tell reporters that he consistently has said Illinois needs a balanced approach of both spending cuts and new revenue. Therefore, he said, House and Senate Democrats will work this week to pass a budget for next year that spends more than $3 billion more than the state takes from taxpayers.
3. So, you might logically ask, if Rauner’s budget with $2 billion in phantom savings was “reckless,” what does that make Madigan’s admittedly out-of-whack $3 billion-plus budget? Extremely reckless? (Actually, it appears to be closer to a $4 billion hole.)
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Sign of the times?
Wednesday, May 27, 2015 - Posted by Rich Miller
* From a press release…
Presidents and Board of Trustee chairs representing each of Illinois’ nine public universities met face-to-face with top legislative leaders Tuesday to urge support for higher education funding in the state’s fiscal 2016 budget.
University of Illinois President Timothy L. Killeen arranged the afternoon of meetings to make the case that proposed funding reductions for public universities would damage a key engine for the state’s economic growth and competitiveness.
“We understand the difficult decisions that legislators face this spring to put Illinois on the road to recovery,” Killeen said. “But investing in public universities is an investment in solutions – and in the future of our state.”
Public universities are large-scale incubators of the human capital that is essential to drive progress, presidents and board chairs said during a series of meetings with House Speaker Michael Madigan; Senate President John Cullerton; House Republican Leader Jim Durkin; Senate Republican Leader Christine Radogno; Michael Zolnierowicz, Gov. Bruce Rauner’s chief of staff; and Beth Purvis, the governor’s chief education advisor.
Notice anybody missing?
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Exelon backs off closure threats for now
Wednesday, May 27, 2015 - Posted by Rich Miller
* No surprise here. The plug has been pulled on all the big energy-related bills this session…
“I think what will end up happening is, we’ll compromise. we’ll get everybody to the table and we’ll compromise on one omnibus bill,” House Energy Chairwoman Linda Chapa LaVia says.”So I’m pretty excited, but it’s definitely going to take a little bit longer than May 31.”
Chapa LaVia says she’s also watching and waiting for action on the federal level that could have big effects in Illinois. That’s when its expected rules will be finalized on President Barack Obama’s Clean Power Plan. There’s also a PJM capacity auction scheduled for July, which could have repercussions for Exelon’s fleet.
In a statement, Exelon spokesman Paul Elsberg recently said the company continues to believe its so-called Low Carbon Portfolio Standard is needed, and says “we remain open to participating in any and all discussions designed to enact a legislative package. The session is still in progress, and we will consider next steps after it has concluded.”
Elsberg did not directly respond to a question about whether the failure to pass Exelon’s legislation will result in a shutting of nuclear plants, nor did he say when a decision on their future will be made.
* Crain’s…
[Steve Brown, spokesman for House Speaker Michael Madigan] cited concerns lawmakers have about where electricity rates are heading, in particular after recent news that rates are spiking downstate beginning next month. That’s thanks to the surprise results of an annual auction held by MISO, the regional grid operator for downstate Illinois and all or part of 14 other states, to set the price of reserving capacity at power plants for when demand spikes during the year. […]
That puts Exelon on the spot. Without legislative action, executives have issued various threats that they will have to close as many as three Illinois nukes they say are losing money. At times, they’ve laid out May 31 as their deadline; at others, they’ve signaled they might be willing to wait a few more months if they thought progress was being made.
In an interview in April, Exelon Executive Vice President Joseph Dominguez said the company wouldn’t agree to wait until the fall veto session in November for an answer.
For this story, the company declined to reiterate that warning. Instead, in a statement, Exelon said, “We remain open to participating in any and all discussions designed to enact a legislative package. The session is still in progress, and we will consider next steps after it has concluded.”
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Credit Unions – Cooperative in structure, valued in service
Wednesday, May 27, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Credit unions are committed to several cooperative principles, including social responsibility. At First Illinois Credit Union in Danville, reaching out to area school children as part of their financial literacy program is a top priority.
For over 20 years, the credit union has partnered with area schools, educated students in the classroom and has invited them to open savings accounts. Scholarships are awarded to graduating eighth graders. Members that are high school graduates are also granted scholarships. By giving out scholarships at school-wide functions, it affords the credit union the opportunity to provide financial education to hundreds of students in the audience.
Educating children is just one facet of the credit union’s extensive outreach, which also includes breakfast meals for low income families, financial education for seniors during Money Smart Week, volunteering as a buddy at baseball games for children with disabilities, and many more local clubs and organizations. For all their efforts, First Illinois Credit Union has been recognized by their members and the community as a top financial institution.
At the heart of the credit union philosophy is the principle of people before profits – and another reason why members are so fiercely loyal.
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Having it both ways
Wednesday, May 27, 2015 - Posted by Rich Miller
* House GOP Leader Jim Durkin during floor debate over the Democrats’ budget proposals…
“Why in the world are we sending for the second year in a row an unbalanced budget to the governor?” Durkin said. “We’ve all seen this Greek tragedy before.”
Durkin even raised the old saying about repeating the same action and expecting a different outcome being the definition of insanity.
“If we pass these budgets and send $36 billion of budgets to the governor, this is insanity,” Durkin said. “You’re insane, and history will look upon you unkindly.”
All Republicans voted against all the approp bills. Most, but not all, Democrats voted for them.
* But Leader Durkin and several other House Republicans voted for this bill yesterday, which was sponsored by a GOP lawmaker…
Provides that on and after the effective date of this amendatory Act of the 99th General Assembly, every insurer that amends, delivers, issues, or renews a group or individual major medical policy of accident and health insurance in this State providing coverage for hospital or medical treatment shall provide coverage for hepatitis C screening and confirmatory testing consistent with reasonable medical standards. Makes conforming changes in the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Health Maintenance Organization Act, the Voluntary Health Services Plans Act, and the Illinois Public Aid Code.
* From the fiscal impact notes…
Balanced Budget Note (Office of Management and Budget)
This bill will likely have a significant fiscal impact to the State’s Medicaid and Group Health Insurance programs due to increased screening and treatment of Hepatitis C. The anticipated costs are not available at this time. Passage of this bill without an accompanying source of revenue will result in an unbalanced budget.
Fiscal Note (Dept. of Healthcare & Family Services)
For purposes of this analysis, it is assumed that primary care providers are offering and/or recommending testing to at-risk populations based on sound medical reasoning. However, there may be an indirect impact to the Department from the publicity of hepatitis C legislation and the new hepatitis C drugs. Increased awareness of those in an at-risk population coupled with a mandate is likely to increase testing utilization. In FY14 and FY15, the Department did and is estimated to spend about $1.5 million for testing. A 10% increase in FY16 testing utilization would increase liability by $150,000 thousand. Additional testing would potentially double the population receiving treatment. This would result in an added pharmaceutical cost of $8.5 million annualized.
Emphasis added.
Look, this is a very worthy bill. Hep C has to be stopped. And $8.5 million is a teensy, tiny drop in the budgetary bucket.
But, if you’re gonna argue that nothing should be appropriated without a bipartisan budget deal (and that’s a reasonable argument to make, especially considering the Illinois Constitution: “Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year”), you shouldn’t then vote for bills like these.
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No surprise, Trib is fully on board
Wednesday, May 27, 2015 - Posted by Rich Miller
* Tribune editorial…
House Speaker Michael Madigan joined the Illinois legislature 44 years and four months ago. Senate President John Cullerton arrived 36 years and four months ago. During their nearly 81 years, the Chicago Democrats engineered, sponsored and voted for pension giveaways, chronic overspending and tax laws that broke Illinois
No argument there, except maybe for how the tax laws “broke” Illinois and the general tone.
* Continuing…
And Gov. Bruce Rauner, the guy Madigan and Cullerton are always vilifying? He got to Springfield just four months ago. Having played no role in creating the devastated Illinois of Madigan and Cullerton, Rauner has had to trim spending to correct the diabolically unbalanced budget that Madigan and Cullerton passed last spring for the fiscal year that ends June 30. Headline writers keep using the phrase “Rauner budget cuts” not because it tells the story, but because it’s more economical than: “Budget cuts you can blame on Mike Madigan and John Cullerton, who tried to placate angry voters before the 2014 election by appropriating gazillions of tax dollars that they knew Illinois never, ever, would collect.”
Those dollars would’ve been appropriated had Pat Quinn been reelected, but again, they’re mostly right about Rauner, except he demanded that the GA not pass a bill extending the tax hike, which would’ve avoided almost all the FY 15 problem. And he made $26 million in cuts that didn’t have to be made and which were quickly rescinded. Those are on him.
* Onward…
The Democrats’ evident strategy [for Fiscal Year 2016] is to hand Rauner a massively unbalanced budget, force him to make billions in unpopular spending cuts and coerce him to accept a big tax increase.
It’s not so much the cuts, it’s what’ll happen if they don’t get a budget deal and the government falls apart and lots of schools don’t re-open. But, whatevs.
* Downward…
Huh? We know voters aren’t dumb enough to be misled about budget slash 2.0 precisely because those voters weren’t dumb enough to be misled by budget slash 1.0. This isn’t some low-information yesteryear that Madigan and Cullerton fondly recall; Illinoisans understand that they have a financial crisis and a $100 billion-plus unfunded pension liability because their politicians played this game of trying to spend nonexistent money.
Um, didn’t they just say that the spending cuts would be “unpopular”?
* In conclusion, the editorial board notes approvingly that Rauner’s $34 million campaign warchest (ten times larger than the money Madigan and Cullerton have on hand) will help him explain these problems to the voters.
I’m assuming they wouldn’t be so thrilled if such a giant pile of cash was spent on the other side, however.
But, hey, to each his own.
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* From the governor’s office…
A Time for Choosing
State Senators Will Either Choose Reform or Side with Mike Madigan to Block it
SPRINGFIELD – With House Speaker Mike Madigan refusing to compromise and doubling down on a broken system, the state Senate is scheduled today to hold hearings on parts of Governor Rauner’s Turnaround Legislation.
Senate committees will conduct hearings on worker’s compensation reform, lawsuit reform and property tax freeze legislation that were filed last Friday. The Senate, however, is refusing to consider Term Limits and Redistricting Reform measures that were also introduced.
“Governor Rauner has made it clear that we cannot ask taxpayers to put more money into a broken system. The legislation being considered today represents some compromise reforms that are critical to turning Illinois around,” Rauner spokesman Lance Trover said. “Speaker Madigan and the politicians he controls in the House have made it clear all they want to do is raise taxes. Today, the Senate will begin to make clear whether they support reform or will side with Mike Madigan to block it.”
* From the Senate Republicans…
Senate Republican Leader Christine Radogno’s legislation that embodies portions of Governor Rauner’s Turnaround agenda will be considered in committee [today], Wednesday.
Senate Bill 884 (Lawsuit Reform) and SB994 (Workers’ Comp Reform) would have a dramatic impact on the state’s economic health and jobs climate. The bills will be considered in Senate Judiciary Committee, 10am Wednesday. The committee has moved to Room 212 of the Capitol.
Senate 1046 which would enact a statewide property tax freeze and empower local governments to lower their costs is posted for the Senate Executive Committee on Wednesday at 2pm, Room 212.
The Senate Democrats have bottled up the Constitutional Amendments which would allow term limits (SJRCA14) and redistricting reform (SJRCA15) on the ballot. Sen. Radogno’s letter to Senate President Cullerton calling for those amendments to be assigned to committee is attached.
Sen. Radogno’s letter says, in part:
“In response to the public argument made on your behalf that Constitutional Amendments are only considered in even-numbered years, I remind you of House Joint Resolution Constitutional Amendment 31, introduced on May 27, 2009 and adopted by both houses that same year. The chief Senate sponsor was Sen. Michael Noland.
HJRCA31 – establishing a gubernatorial recall process — was adopted after Governor Rod Blagojevich was impeached, convicted and removed from office by the General Assembly. The argument can be made that was an extraordinary time in Illinois history.
I argue this is no less extraordinary. People in this state fundamentally understand our system is corrupt and broken. It’s time to change it.”
Her full letter is here.
* Meanwhile AFSCME Council 31 is also getting into the act…
TO: All Local Union Executive Board Members – Local Government and School District Locals
FR: Roberta Lynch, Executive Director
Mike Newman, Deputy Director
RE: Rauner Bill to Wipe Out Bargaining Rights
Many of you have been involved in the highly successful labor campaign to beat back Bruce Rauner’s “Turnaround Agenda” resolutions in local governmental bodies all across Illinois. Given how little progress he’s made there, Rauner is now taking his anti-union schemes directly to the Illinois General Assembly.
In the final days of the legislative session, he’s suddenly introduced a bill aimed squarely at employees of local governments and schools districts—taking away your rights to bargain over wages, benefits and other key conditions of employment. In a characteristically sneaky move, he’s packaged this ferocious attack on collective bargaining rights in the same bill as a freeze on property taxes. He’s trying to scare legislators into voting to obliterate union rights for fear that they’ll be painted as being in favor of higher property taxes if they don’t.
We’ve got to act immediately to block this legislation. In addition to harming every employee of local governments and school districts, it would also hurt every building trades employee in your area by barring local governments from paying the prevailing wage on construction projects.
SB 1046, SA #1 (Radogno) – Removes the ability of employees to collectively bargain with school districts and local governments over:
o Privatization of services;
o Pay increases;
o Health insurance;
o Use of employee time for union business
o Levels of staffing;
o Personnel evaluations
Prevailing wage would not be applicable to work done on projects performed on behalf of a local government or school.
SB 1046, SA #1 will be heard in Senate Executive Committee on Wednesday, May 27th. Please try to generate as many calls as you can from your members IMMEDIATELY. Choose the senators whose districts you are most likely to have members in.
…Adding… Press release…
Statement by Nick Klitzing, Executive Director, Illinois Republican Party
“Illinoisans are experiencing déjà vu this year because they’ve seen Speaker Mike Madigan’s political games time and time again. Instead of reforming a system that Madigan uses to reward those blindly loyal to him, he will pass a budget with a $4 billion hole and admit that the state doesn’t have the money to pay for it. For Madigan, kicking the can down the road is a lot easier than making tough choices and upsetting the status quo in state government that he has controlled for decades.”
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