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“Courtesy titles” out at Crain’s

Monday, Dec 8, 2014 - Posted by Rich Miller

* Robert Feder writes about the new Crain’s Chicago Business website

The folks at Crain’s Chicago Business unveiled a beautifully redesigned website this week — and now they want everyone to see it.

So they’re holding an “open house” on the site, dropping their usually strict paywall and inviting non-subscribers to sample everything online for one week (including the just-released “40 under 40” list for 2014). The free peek runs through December 12 at chicagobusiness.com.

He adds

One other change longtime readers may notice: Crain’s no longer includes those quaint courtesy titles on second reference to subjects in its stories. So it’s no more “Mr. Smith” or “Ms. Jones.” Now it’s just plain “Smith” and “Jones.”

* Zorn rejoices

The New York Times still clings to this custom, though not in sports stories, even in referencing non-sports figures.

I chafed at the courtesy titles when I first started writing for Crain’s, but one of the most common reactions to my moving over to the magazine were the comments about how my column was now “classier,” although nobody could put their finger on why. I think that had to do more with the courtesy titles than anything else.

So, now, believe it or not, I kinda miss ‘em.

  18 Comments      


Rauner talks taxes… kinda

Monday, Dec 8, 2014 - Posted by Rich Miller

* Bruce Rauner denied today that his post-election warnings about the sorry fiscal state of Illinois’ budget are designed to lay the groundwork for a tax hike

“I’m not saying that at all. I think it’s important for voters to understand exactly what’s going on,” Rauner said. “Our politicians have been making short-term borrowing to fill budget gaps. We are going to have honest budgets going forward.”

* But when asked if the 3.75 percent tax rate as of January 1st might be increased, Rauner didn’t say “No”

“As I’ve said, we want to roll the income tax hike all the way back down to where it was in 2010. We’ll work that over time and right now the law is 3.75 and that’s what we’re going to manage with.”

When asked if that meant he was committed to 3.75 tax, Rauner hedged, saying “nothing will be off the table.”

“Well, 3.75 is the law. But I will also say this: everything will be assessed as an opportunity to getting our economy growing again. Everything will be assessed as a way to get back into a healthy, fiscal position. Nothing will be off the table,” Rauner said. “But 3.75 is the law. I’m going to implement the law, we have to plan for that. And the critical thing is over time we get the income tax burden reasonable and the real challenge and the real answer for revenue in the future is to become a growth state again. We got into this mess by only thinking short term. Let’s talk about short term but let’s also talk about long-term competitiveness.”

* But as Steve Schnorf said the other day about a Voices for Illinois Children budgetary study which predicted cuts of up to 33 percent if the tax hike partially expires on schedule

This analysis, while almost certainly mathematically correct given whom it was done by, simply ignores the fact that the GA isn’t going to pass a budget that contains 25-33% cuts in all those programs. So, on to plans B,C, etc.

Exactly.

* More from Rauner

“We don’t have the time to mess around, we are in deep, deep trouble financially,” Rauner told a meeting of the Illinois Farm Bureau at a downtown Chicago hotel. “The next 24 months are going to be rough. And I apologize. I ain’t going to be Mr. Popularity for a little while. That’s OK. Four years from now I think though, everybody will appreciate what we did.”

Also

He did offer at least one hint Monday on how he’d govern, saying it’s possible some government agencies may be consolidated while numerous boards and commissions could be abolished. That’s a common move when a new Illinois governor takes over.

Consolidation rarely saves much, if any, money.

  27 Comments      


Another view

Monday, Dec 8, 2014 - Posted by Rich Miller

* Joe Cahill wonders if the Illinois Supreme Court might just surprise everyone

Professor Mark Rosen of IIT Chicago-Kent College of Law says “there’s ample leeway” for the court to uphold the pension law if it accepts the principle that even constitutional rights can be limited when necessary to serve an overarching state interest. I suppose the justices could dismiss the argument as airily as Belz did, but a deeper analysis could lead to a different outcome.

Plenty of courts have ruled over the years that important state interests can justify limiting constitutional rights. In fact, the Illinois Supreme Court acknowledged the principle in a 1985 case involving a change in the computation of judicial pensions that left some judges with lower benefits. The constitution “does not immunize contractual obligations from every conceivable kind of impairment or from the effect of a reasonable exercise by the states of their police power,” the court said in Felt v. Board of Trustees. The court invalidated the law because the state failed to show it was necessary to advance an important state interest.

A similar line of analysis in the pension case would lead justices to consider whether the reforms serve an important state interest. In the Felt case, the court said, “The state has an undeniable interest and responsibility in ensuring the adequate funding of state pension systems.”

The pension reforms are intended to advance the same state interest. But are they “reasonable”?

Professor Ann Lousin of John Marshall Law School says it depends on what other options legislators might have used that would have less impact on the constitutionally protected benefits. Lousin thinks this is where the state’s argument breaks down, noting legislators could raise money to pay full pension benefits by hiking taxes and/or cutting spending (however politically distasteful that may be to lawmakers).

  38 Comments      


Rauner again vows support for capital bill

Monday, Dec 8, 2014 - Posted by Rich Miller

* As I’ve written before, a big capital bill could help Gov. Rauner smooth out a whole lot of Statehouse problems. Rauner reiterated his support for an infrastructure bill while at the White House the other day

He said he also met Thursday with Illinois Republican Ray LaHood, transportation chief during Obama’s first term, and on Friday with current Transportation Secretary Anthony Foxx and several other key administration officials.

“We have got to find ways to invest in our infrastructure, upgrade our infrastructure and expand it so it’s world class,” Rauner told reporters. “Illinois is the crossroads of America. We’re the heart of the transportation network for the United States. We need to invest in our infrastructure in Illinois.”

He said he and Pritzker talked about ways to improve economic opportunity and achieve more rapid growth. Illinois, he said, was “suffering with low job-creation rates and a difficult economic climate.”

* From my post-election Crain’s column

Members of the General Assembly, for the most part, love capital bills. Projects help their districts and help boost their own images back home when they cut those ribbons.

The Republican governor-elect will need to heal some of the wounds he inflicted during a very bitter, brutish campaign. He also will need to ease the partisan panic of Democrats, who hold supermajorities in both chambers and have controlled just about every major state institution for the past 12 years. Aside from jobs and contracts, there’s almost no better way to do that than by giving out gifts in the form of fixed roads and bridges, new public buildings, etc.

Mr. Rauner also will face a tricky problem with GOP legislators, who have been shut out of power for so long that they’ve grown accustomed to opposing every budget and bashing almost every major piece of legislation the Democrats propose.

By my count, a grand total of 13 Republican legislators who previously have served under a GOP governor will be members of next year’s Legislature. The 54 other GOP members have no idea what it’s like to vote for unpopular stuff to help their party’s governor cut a deal with the other side.

The legislative tradition is that members of the governor’s party sponsor all budget bills. So, not only will many have to vote yes on a state budget for the first time ever, but some will have to actually sponsor the monsters and accept full responsibility.

Mr. Rauner has implied that after the income tax rate automatically rolls back to 3.75 percent in January, he may want to temporarily jack that rate up closer to the current 5 percent before stepping it back down. If so, that will require Republican sponsors and lots of Republican votes.

Pleas for partisan unity and arm-twisting go only so far with legislators. You must offer them some carrots to go with the big stick. Those capital projects can be parceled out judiciously to grease the squeaky wheels.

  16 Comments      


*** UPDATED x2 *** Quinn to muscle through appointment over Rauner objections

Monday, Dec 8, 2014 - Posted by Rich Miller

* I’m told the governor now has the votes to make this happen

Gov. Pat Quinn’s former campaign manager has decided to pursue overtures to become executive director of the Illinois Sports Facilities Authority, setting the stage for a lame-duck maneuver that could rankle Mayor Rahm Emanuel and tie the hands of Gov.-elect Bruce Rauner.

Aides to the governor had insisted Friday that Lou Bertuca was not interested in replacing Kelly Kraft as head of the state agency that built U.S. Cellular Field and rebuilt Soldier Field.

They confirmed a report by Chicago Sun-Times columnist Michael Sneed that Bertuca had been approached about the job by the governor’s appointees to the board. But, the sources insisted that Bertuca was not interested.

Over the weekend, Bertuca apparently had a change of heart and decided to interview for the job. Unless one of Quinn’s four appointees to the seven-member board jumps ship, Bertuca is likely to have the votes to win the coveted job.

* Gov.-elect Bruce Rauner was not pleased

Asked if there was anything he could do to reverse the move once he was in office, Rauner said: “I hope so.”

I don’t think there’s much he can do.

*** UPDATE 1 *** It’s now a done deal

Gov. Pat Quinn’s former campaign manager was hired as executive director of the Illinois Sports Facilities Authority on Monday.

In a 4-3 vote during a meeting at U.S. Cellular Field, the board gave a two-year contract to Lou Bertuca.

*** UPDATE 2 *** It didn’t go well

The decision drew outrage from the three ISFA board members appointed by Mayor Rahm Emanuel. They blasted board Chairman Emil Jones for hiring Bertuca without a search process.

“We think the taxpayers of the state of Illinois are due a transparent process in how we select the executive director,” board member Jim Reynolds, Loop Capital CEO, said at the meeting. “That’s not what happened today.” […]

Jones argued that the board’s statute does not require a national search for a candidate, but Mesirow Financial Holdings Chairman Richard Price and longtime bank executive Norm Bobins joined Reynolds in staunch opposition to the way the hiring was done.

“Whether the law says you do a national search or not, I think just going with the government’s assistant isn’t much of a search,” Bobins said during the meeting.

Oof.

  63 Comments      


Question of the day - Golden Horseshoe Awards

Monday, Dec 8, 2014 - Posted by Rich Miller

* The 2014 Golden Horseshoe Award for Best Campaign Staffer - Illinois House Democrats goes to Eric Lane

He may not have the title of campaign manager but he oversaw 5 staffers who did.

Regionals never get the accolades they deserve. Eric had to juggle five races including Scherer and Sente in an environment that proved to be very hostile to incumbents. He not only kept his cool but kept his candidates and staffs focused.

Eric is the man behind the scenes pulling the strings…for not one but five campaigns this season. If that doesn’t deserve this award I don’t know what does.

And the fact that nobody really knows him means he does his job and does it really well - much like an offensive lineman in football. You only know their name when they do something wrong.

I think the fact that Eric has been a regional in both primary and general elections since 2010 and is mostly anonymous speaks volumes to his skills.

There were a lot of very strong nominations in that category, but Eric’s stood out above the rest.

* The 2014 Golden Horseshoe Award for Best Campaign Staffer - Illinois House Republicans goes to Chris Guy

[Chris] oversaw Dwight kay and Terri Bryant. Nearly everyone was counting Dwight Kay out a year ago, but he won going away, as did Bryant.

Guy was Joe Woodward’s right-hand man in the Downstate region. Downstate was the only real bright spot for the HGOP’s, so that was the tipping point for me.

* OK, let’s move along to today’s categories, with last year’s winners in parentheses…

* Best campaign staffer - Senate Democrats (Dovile Soblinskas)

* Best campaign staffer - Senate Republicans (Pat Barry)

As always, please explain your nominations or they won’t count, and please make sure to nominate in both categories. Thanks.

  23 Comments      


Illinois’ Existing Nuclear Plants: Creating Reliable, Carbon-Free Energy that Supports Jobs and Our State’s Economy

Monday, Dec 8, 2014 - Posted by Advertising Department

[The following is a paid advertisement.]

48 percent – nearly half – of our state’s electricity is generated by Illinois’ six state-of-the-art nuclear energy facilities. These plants operate 24/7 and help ensure the reliability of our electric system.

Constantly upgraded with the latest technology, these plants supply enough power to meet the needs of 7 million residents – three times the population of Chicago. They also boast 18 to 24 months of continuous operation and set the world standard for performance during all seasons and weather conditions, including last winter’s polar vortex when other sources of energy experienced problems.

Illinois’ nuclear energy facilities contribute nearly $8.9 billion into the state’s economy and $290 million in state and local employee taxes. Illinois’ nuclear fleet also provides nearly 28,000 jobs, directly and indirectly, for the state.

As nuclear energy is carbon-free, these facilities also generate over 90 percent of our state’s zero emission power. This prevents more than 80 million tons of carbon dioxide emissions annually.

Join our campaign and learn more about the benefits of Illinois’ nuclear plants by visiting www.NuclearPowersIllinois.com, or find us on Facebook at facebook.com/NuclearPowersIL and Twitter at @NuclearPowersIL.

  Comments Off      


Another aspect of eavesdropping bill criticized, defended

Monday, Dec 8, 2014 - Posted by Rich Miller

* From the AP

[The American Civil Liberties Union of Illinois] objected to an expansion of the kinds of investigations in which police may eavesdrop without a warrant — at least initially. The bill allows police — with only permission from the state’s attorney — to surreptitiously record conversations for 24 hours when investigating such serious crimes as murder, the most heinous sexual assaults, kidnapping, human trafficking and others.

That, ACLU of Illinois spokesman Ed Yohnka said, is “the kind of unchecked police authority that we’ve always resisted in this country.” When citizens allow such intrusion, it’s typically been only after approval by an impartial judge.

Previous law allowed emergency eavesdropping in a hostage situation or undercover drug buy. The new exemptions don’t comprise a “danger situation” said Steve Clark, legislative liaison for the Cook County public defender’s office, who fears additional crimes will be added.

Nekritz acknowledged the eligible-crime expansion was a trade-off for eavesdropping protections, but prosecutors regard it similarly — they’d prefer so-called “one-party” overhear consent, like in federal law and 38 states.

“The best evidence of the crime itself … is that recording,” said Matt Jones, associate director of the State’s Attorneys Appellate Prosecutor. “The defendants may have to defend what their actual words are, but they don’t have to defend against what a cop writes in his report.”

  18 Comments      


Two towns fell through the cracks

Monday, Dec 8, 2014 - Posted by Rich Miller

* According to the BGA, there have been 660 Chapter 9 filings nationwide since 1937. Chapter 9 is a form of bankruptcy for local governments. Illinois doesn’t allow local governments to file Chapter 9 unless they successfully navigate a lengthy and complicated procedure (and even then, no towns over 25,000 are allowed into that procedure), but two small towns somehow got away with it

The village of Brooklyn, a town of 750 people across the Mississippi River from St. Louis, filed in 2003, in part to help restructure payments related to lawsuits alleging police misconduct and financial mismanagement.

In the wake of an embezzlement scheme, the town, in a cost-cutting move, dropped its insurance coverage, leaving it unable to afford mounting legal costs, according to court filings.

In 2005, the nearby village of Alorton, population 1,960, filed for bankruptcy around the time a police shooting victim obtained a $978,000 judgment against one of the town’s officers. The victim was one of Alorton’s largest creditors, court filings show.

“I’ll be honest, I just got away with it,” says Belleville attorney Stephen Clark, who filed Chapter 9 petitions on behalf of both towns. “Everybody either didn’t know [about the authorization requirement] or they knew and felt it was better to approve the plan.”

The village of Washington Park, another Clark client, wasn’t as fortunate.

A federal judge dismissed the town’s bankruptcy petition in 2010 because state officials didn’t authorize the move. Washington Park also filed in 2004 but later withdrew, Clark says.

A 2014 analysis by the law firm of Heyl Royster concluded that the bankruptcy proceedings “apparently survived because no one objected to the filing of the petition or raised this issue.”

Chapter 9 access has become a major issue for the Illinois Municipal League of late.

  19 Comments      


Uber service coming to Springfield?

Monday, Dec 8, 2014 - Posted by Rich Miller

* According to a LinkedIn help-wanted ad forwarded to me by a former intern, yep.

  40 Comments      


A look ahead

Monday, Dec 8, 2014 - Posted by Rich Miller

* From last week

Attorney General Lisa Madigan’s office has asked the Illinois Supreme Court for an expedited hearing of her appeal of a lower court’s declaration the state’s pension overhaul is unconstitutional.

Madigan announced the motion Thursday. It says issues raised are of “widespread public importance'’ to state government and seeks a ruling in advance of lawmakers’ May 31 budget approval deadline.

Madigan’s office had already filed the appeal concerning the 2013 law designed to reduce roughly $100 billion in unfunded liability.

Court spokesman Joe Tybor says the court must first decide whether to expedite the motion before setting a schedule on the appeal.

Madigan’s motion is here.

* Kurt Erickson looks at what happens if Madigan’s motion fails to persuade the Supremes

Madigan suggested the court schedule oral arguments for as early as Jan. 22, or no later than mid-March.

Attorneys for the retirees have until Tuesday to file their objections.

Without the expedited schedule, the deadline for filing the first significant set of records in the case wouldn’t occur until the final week of January.

After that, the typical court schedule calls for both sides to trade paperwork for nearly three months. Once that is completed, the high court would schedule oral arguments.

Under that scenario, the court could hear the case as early as May. If they miss the May docket, the next time the judges are scheduled to hear oral arguments is September.

Following the argument phase, the court could take months to issue a ruling.

  39 Comments      


Plenty of blame to go around

Monday, Dec 8, 2014 - Posted by Rich Miller

* My weekly syndicated newspaper column

Pretty much every Statehouse finger of blame was pointing North toward Chicago for the minimum wage hike bill’s failure during the legislative veto session which ended last week.

Chicago Mayor Rahm Emanuel does indeed have a lot of explaining to do. His decision to move up a vote to pass a $13 an hour minimum wage for his city completely undercut Springfield’s efforts to pass a statewide minimum wage capped everywhere at $11 an hour.

Months ago, Emanuel scheduled a vote on raising Chicago’s minimum wage for the week after the General Assembly’s annual fall veto session. After the election, though, retailers, restaurant owners and other business groups agreed to an eventual $11 an hour statewide minimum wage, but only if Chicago and other home rule municipalities were not allowed to raise their own local wages above that amount. Proponents say they were within two votes of House passage before the second and final week of veto session when Emanuel quietly filed paperwork calling for a special hearing on his own minimum wage proposal before the second week kicked off in Springfield.

There was just no way that House Speaker Michael Madigan would publicly rebuke his city’s mayor by reversing that ordinance via state law. It’s just not in his nature to go up against a mayor like that. Besides, Madigan lost of ton of votes from Chicago legislators who could not or would not risk supporting legislation which “cut” their constituents’ pay.

Even so, 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.

That’s Mike Madigan: Use an issue for political advantage rather than pass it into law. And he’ll likely use the minimum wage issue again next year, perhaps by passing a bill that he knows will be vetoed by a Gov. Rauner. He can also use the issue to keep organized labor focused on that topic and away from other stuff that Madigan might oppose (like an electronic trading transaction tax, for instance). Business groups will also be frozen in place in opposition to a minimum wage threat.

But the blame doesn’t end there, of course. As I told you months ago, Gov. Pat Quinn and US Sen. Dick Durbin didn’t want Chicago to pass a $13 an hour minimum wage ordinance before the election, believing it would undermine their attempt to gin up the city’s vote for the statewide $10 an hour minimum wage referendum. Politically, this made some sense at the time. Why would any Chicagoan bother to vote for a $10 an hour minimum wage when it had already been raised to $13?

In reality, though, the minimum wage referendum didn’t work as planned. And instead of a statewide attempt to partially catch up with Chicago’s minimum wage during veto session, the whole effort fizzled.

The governor announced plans to make the minimum wage hike his final legacy, but he didn’t bother to make sure his ducks were in a row before saying so. And that is Pat Quinn in a nutshell. He’s good at press conferences, not so spectacular at governing.

And, of course, Gov.-elect Bruce Rauner’s demand that the General Assembly not pass a minimum wage bill in the veto session can also be blamed for the measure’s failure this week. He’ll have to wear that jacket unless and until he can come up with a plan to actually put something in place.

This was, in the end, a failure of policy, of politics and of governance all around. Low-wage workers deserved better.

Madigan’s spokesman said this morning that there is “no actual recollection on the Madigan side of the ball about the Rock story.” He also suggested that the Republicans and the business community deserve more blame for “stonewalling.”

Your thoughts?

  93 Comments      


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