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Peoria announced as GOP convention host
Friday, Jul 10, 2015 - Posted by Rich Miller
* The quadrennial convention will be held in Peoria…
The Illinois Republican Party has chosen Peoria as the site of its 2016 state convention.
The Peoria County Republican Central Committee will be the local host of the event May 20-22, 2016. It will be at the Peoria Civic Center and Peoria Marriott Pere Marquette. […]
Besides Peoria, finalists were Bloomington-Normal, Champaign-Urbana, Collinsville and Springfield.
Next year’s theme?
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Madigan: Subpoenas would be “extreme”
Friday, Jul 10, 2015 - Posted by Rich Miller
* Yesterday, House Speaker Michael Madigan handed out a list of seven instances when the Rauner administration refused to testify before a House committee, which he deemed unprecedented and said that if the Obama administration had done the same thing in DC it would be a huge controversy.
Click here to see the list.
* A reporter followed up about whether he might issue subpoenas…
Illinois House Speaker Mike Madigan, D-Chicago, told reporters that Rauner’s office had so severely flouted past practice of gubernatorial transparency that he considered issuing subpoenas to get the administration to appear before committees.
“But we haven’t done it, because we want to be reasonable, and we want to function in moderation,” Madigan said, repeating the talking points that have become his mantra.
“We’re not interested in taking extreme actions.” […]
“We’re going to continue to provide an opportunity to the Rauner administration to participate in our three-part government here in Illinois, which means that they interact with the Legislature. … It’s rather routine in the history of Illinois that gubernatorial administrations participate in legislative hearings,” Madigan said.
Most of the committee hearings were repeats, and they may have all been political traps. Nevertheless, when the Revenue Committee is looking into gubernatorial office spending, that’s still legit, even if it is mainly designed as a gotcha or to make the chairman (a Tier One target) look strong to the folks back home.
Your thoughts?
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Question of the day
Friday, Jul 10, 2015 - Posted by Rich Miller
* Earlier today, we talked about Speaker Madigan’s advice to Gov. Rauner.
* The Question: What should Gov. Rauner’s advice be to Speaker Madigan?
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* Oy…
Hazardous-materials teams from the Springfield Fire Department and other agencies are investigating a powdery substance that was sent in an envelope to an Illinois attorney general’s office at 3000 Montvale Drive. […]
Employees are being asked to stay inside their offices while Springfield firefighters conduct on-site testing of the substance. No employees are experiencing any medical problems, authorities said.
Police do have information about the person who sent the package. The FBI has been called in to assist in the investigation.
*** UPDATE 1 *** The AG’s office just told me that the police department has given employees the “all clear” sign.
Whew.
*** UPDATE 2 *** The package, I’m told, was from a prisoner addressed to a lawyer.
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By special request…
Friday, Jul 10, 2015 - Posted by Rich Miller
* An e-mail exchange…
From: Steve Brown
To: Rich Miller
Re: Doin’ Somethin’ Useful
From: Rich Miller
To: Steve Brown
Re: Re: Doin’ Somethin’ Useful
From: Steve Brown
To: Rich Miller
Re: Re: Re: Doin’ Somethin’ Useful
But your fans would love it and you could prove your clout….KC nearly had the whole AL team before the media spanked them, now they partner with the Cards for the last two spots. I think all those tech savvy folks that follow you would be very impressed with your efforts.
From: Rich Miller
To: Steve Brown
Re: Re: Re: Re: Doin’ Somethin’ Useful
Only if you let me use your emails in the post.
From: Steve Brown
To: Rich Miller
Re: Re: Re: Re: Re: Doin’ Somethin’ Useful
They don’t call him the Press Secretary General for nothin’.
Click here and vote.
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Dem Senator says Rauner is like Madigan
Friday, Jul 10, 2015 - Posted by Rich Miller
* From Suburban Life…
[State Sen. Jennifer Bertino-Tarrant, D-Shorewood] was a guest Wednesday during the monthly Plainfield Coffee with the Mayor. She commented on the state budget impasse and answered questions about the local impact.
“I am not alone in saying this is a very, very unusual year,” Bertino-Tarrant said about her third year in Springfield. “Down there, it’s becoming more partisan. We have a very wealthy governor not afraid to say, ‘It’s my way or I’m coming after you.’ ”
Bertino-Tarrant compared Gov. Bruce Rauner as the Illinois Republicans’ version of House Speaker Michael Madigan, who has been known to have a far-reaching influence on state Democrats.
“Government is a service, not a business, as much as we’d like to think otherwise,” Bertino-Tarrant said.
* I asked reporter Vikaas Shanker for the Senator’s actual quote about Rauner being another version of Madigan. Here it is…
“Over the years people have talked about Madigan having a thumb on his people. Well, unfortunately, our Republican friends are seeing the same thing now. … I don’t work with Madigan, so I say they’re getting a little bit of Madigan on their own side.”
…Adding… This is becoming a familiar theme. From yesterday’s floor debate…
State Rep. Lou Lang, D-Skokie, called GOP lawmakers “minions” and “enablers” of the Republican chief executive. […]
“I don’t think anybody on this side of the aisle is a minion,” answered state Rep. Dwight Kay, R-Glen Carbon. “We’re state representatives and we’re here to balance the budget. The derogatory tone is not a good sign.”
State Rep. Dan Brady, R-Bloomington, said the display was “political theater.”
“It’s definitely becoming more intense,” Brady said.
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Today’s quotable
Friday, Jul 10, 2015 - Posted by Rich Miller
* Bloomberg…
Allstate does not hold any general-obligation bonds of Illinois, where the insurer is based, as politicians haggle over a budget for the fiscal year that started July 1, CEO Thomas Wilson said.
“If you don’t like the income statement, the balance sheet or the governance, why would you loan them money just because they never defaulted before?” Wilson said yesterday at Bloomberg’s New York headquarters. “We have a philosophy that we’re not trying to take credit risk in the muni-bond world.”
The largest publicly traded U.S. home and auto insurer, whose ads say, “You’re in good hands with Allstate,” held $8.7 billion of municipal bonds as of March 31, down from about $25 billion in 2007. Wilson said in 2010 that borrowing by U.S. states “is way out of control.”
Wilson, who works at Allstate headquarters in Northbrook, said he’s told state lawmakers: “How’re you going to go broke? Gradually, then suddenly.”
* Wilson then added…
He said he’s been involved with “Illinois is Broke,” a statewide campaign about fiscal issues created by the Civic Committee of the Commercial Club of Chicago.
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Tone it down, avoid u-turns
Friday, Jul 10, 2015 - Posted by Rich Miller
* Tribune…
Mayor Rahm Emanuel on Thursday said he’s encouraged by facets of Gov. Bruce Rauner’s proposed pension bill, but cautioned the Republican to tone down his political rhetoric against House Speaker Michael Madigan if he wants to strike a deal to overhaul the state’s pension woes and end a budget standoff with Democrats.
The remarks illustrated the role Emanuel is playing during the state stalemate — publicly trying to bring Rauner and Madigan together while continuing to negotiate in private on the city’s interests. […]
At an unrelated CTA event Thursday, Emanuel applauded Rauner for trying to address pension funding problems for the state, Cook County, Chicago, Chicago Public Schools and downstate law enforcement in a single package. But the mayor, who has a fiery political reputation, offered Rauner an “unsolicited piece of advice.”
“There’s merit to having one pension bill where all the interests are addressed, but I don’t think it’s a good idea to have your politics get in the way of your policy. What I mean by that is, by personalizing somehow that the speaker is the holdup doesn’t help advance the proposal that at least deserves merit, a discussion, and is a way of addressing a serious problem that both Chicago, suburban and downstate communities and the county all face together in one way or another,” Emanuel said. “I constantly want to urge to lower the personal temperature, keep the conversation and dialogue and trust-building exercise so serious issues like a pension proposal can be heard without the politics getting in the way of progress.”
* There was another warning discerned by the Sun-Times, however…
Between the lines, Emanuel seems to be saying that Rauner has backed himself into a political corner. Now that the governor is on record as supporting Chicago’s ambitious wish-list, he can’t renege without looking like he’s flip-flopping and turning his back on the city.
“The governor now is in favor of the police and fire pension [reforms]. That is a good thing. The governor is now in favor, publicly, of a Chicago-based casino to pay a portion of police and fire pensions,” Emanuel said.
“The governor is now in favor of things we have talked about for decades about equity on teachers’ pensions so students and teachers in Downstate and suburbs are not treated better than teachers and students here in Chicago. He’s supportive of some of the things we’ve proposed for Chicago Public Schools … and also the notion that the rest of the state has a role to play in creating fairness and equity across the system where Chicago taxpayers are not responsible for paying for everybody else’s teachers pension and our pensions.”
* Now that the mayor has mentioned it, the governor needs to watch out for that flip-flopping meme. From Madigan’s press conference…
“He said he wouldn’t sign the appropriation for elementary and secondary education either, and if you follow the governor’s actions day by day there’s a lot of u-turns, a lot of u-turns in a row,” says Madigan.
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* Tammy Duckworth got a big boost yesterday when she was endorsed by the Democratic Senate Campaign Committee…
Senator Jon Tester, Chair of the DSCC, issued the following statement announcing the Committee’s support of Congresswoman Tammy Duckworth in Illinois:
“Tammy Duckworth has spent her life serving this nation and the state of Illinois, and she has a proven record of advocating for veterans, women and working families. Tammy’s incredible story reflects her persistence and tenacity, even when the odds are stacked against her, and she brings that same determination to her work on behalf of her constituents every single day. We are excited to support Tammy and we are confident that she will be an outstanding Senator for the State of Illinois.”
* But her fellow Democratic candidate Andrea Zopp was not pleased. Tribune…
In a statement, Zopp said she was “saddened and shocked that the DSCC would issue an endorsement without even interviewing me” and accused the group of displaying “total insensitivity to Chicago, African-American women and the democratic process.”
* Her full statement is posted on her website…
“Frankly I’m saddened and shocked that the DSCC would issue an endorsement without even interviewing me. I don’t know if it comes from their fear of me having raised in only two weeks nearly ¾ of what their candidate raised in two months…or their total insensitivity to Chicago, African American women and the democratic process,” said Andrea Zopp.
While Zopp has not yet formally announced, over the past three weeks during which she has explored the viability of running, she has raised nearly $700,000 and broad-based support.
Long-time political activist Leon Finney, who has been part of Zopp’s exploratory committee, added his comments.
“Actually we found the DSCC endorsement a sign of weakness and by the way not a little insensitive,” said Finney. “ The fact that the DSCC would make an endorsement while totally ignoring, interviewing or even reaching out to an exceptional, experienced, self-made African-American female candidate who in just over two weeks has raised two-thirds as much as their ‘chosen one’ demonstrates how totally out of touch Washington-centered politics are with the nation.
Having lived in Illinois since she completed Harvard Law School, Ms. Zopp has served as the first female, First Assistant State’s Attorney, General Counsel for some of the nation’s leading corporations, Executive Director of the Chicago Urban League and served on wide variety of boards and commissions. Ms. Zopp is married and has one daughter.
I received at least four urgent e-mails from Republicans pointing to her statement, by the way.
But, just for clarity, a “wide variety of boards” would include Chicago’s school board. And “some of the nation’s leading corporations” includes Exelon.
Just saying…
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“Good solid advice”
Friday, Jul 10, 2015 - Posted by Rich Miller
* Speaker Madigan held a press conference yesterday and talked about a meeting he’d had with the governor earlier in the day…
“I had a frank discussion with the governor,” Madigan said. “And I gave him what I consider to be good solid advice.”
He later added with a hint of a smile: “I felt good when I walked out of that meeting.”
Any guesses about what that advice was?
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This just in…
Thursday, Jul 9, 2015 - Posted by Rich Miller
* I’m told by the attorney general’s office that a St. Clair County judge just issued a verbal order authorizing the comptroller to begin processing employee payroll.
So, now we have two possibly conflicting judicial orders [ADDING: I’m not sure if they actually conflict because of how the appellate court ruled today, but I’m checking] and a bill that the governor is apparently vowing to veto.
Loving that clarity.
…Adding… The attorney general’s office says it will appeal.
…Adding More… Because the appellate court this morning declined to rule on paying state workers their full pay, the comptroller’s office believes it has to follow the St. Clair County judge’s ruling and will being processing payroll.
…Adding Still More… Despite the fact that unions filed the suit based on their collective bargaining contracts, the judge applied his ruling to all state employees, according to the comptroller’s office.
Quite the overreach.
The way I’m hearing it, the judge issued the verbal TRO and then the comptroller’s office jumped up and said it had no way of figuring out who was union and who wasn’t. So the judge said the union members have to be paid, and if you can’t figure it out, then pay everyone.
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Meanwhile, in Opposite Land
Thursday, Jul 9, 2015 - Posted by Rich Miller
* NW Indiana Times…
An Indiana Vision 2025 Report Card produced by the Chamber shows Indiana is No. 1 in the nation when it comes to regulatory freedom but ranked 47th when it comes to entrepreneurial activity. […]
The state ranks 45th in the proportion of its citizens attaining two-year associate degrees and 42nd in those attaining four-year bachelor’s degrees.
To be fair, the state isn’t all bad. Click here.
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* A Democratic House amendment was filed to the one-month budget today. HA 1 funds state employee salaries through Fiscal Year 2016 at FY 15 levels [ADDING: The sponsor is now declaring that this amendment will, along with the underlying bill, expire on August 1 - so, it’s a one-month deal for workers]. Click here to read it.
Hat tip: Monique.
As always, check for updates on our live coverage post.
…Adding… Awaiting a response from the governor’s office. This is an appropriations bill, so the governor could use his line-item veto to get rid of the part he doesn’t want - the one-month budget.
Either way, it puts him and particularly the House Republicans on the spot. What do they do now?
…Adding More… There’s another little poison pill in the bill. It funds employee group healthcare at FY15 levels. Rauner wanted to cut spending on that area by taking it out of the collective bargaining process. The Dems shorted the fund by the same amount Rauner did.
*** UPDATE *** GOP state Rep. CD Davidsmeyer just said on the House floor: “We’ve clarified, he’s going to veto this bill.”
Still no response from the governor’s office.
*** UPDATE *** Lance Trover…
“Voting to spend money the state doesn’t have is the cause of Illinois’ financial crisis. Today, Speaker Madigan and the legislators he controls irresponsibly voted for yet another unbalanced budget plan.
“We saw today that Speaker Madigan can force 70 legislators to join him in voting for an unconstitutional budget. We also saw the Speaker’s unwillingness to hold a vote on a tax increase that, absent reform, would suffer bipartisan defeat.
“The Speaker’s failure to take up an accompanying revenue plan is a clear signal that rank-and-file members of the General Assembly understand that reform is necessary. It’s time to end the status quo and get serious about fixing our state.”
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Not as bad as it once looked
Thursday, Jul 9, 2015 - Posted by Rich Miller
* I’m sure this will come as a relief to the employees, but all this for a million bucks?…
The proposed closure of a Southern Illinois prison work camp will not result in any of the workers losing their jobs, a new report says.
In a letter outlining Gov. Bruce Rauner’s plan to shutter the 35-year-old Hardin County Work Camp, state prison officials say there are enough vacancies at the Shawnee and Vienna prisons to accommodate the 61 employees currently working at the camp. […]
In June, Rauner announced the closure of the 280-inmate work camp and the Illinois State Museum as part of a cost-cutting move after lawmakers sent him a spending plan that was more than $3 billion short of revenue. […]
According to the report, the closure will save an estimated $1 million annually. The state also can avoid having to spend as much as $9.8 million in construction upgrades, including a new kitchen, electrical work and water treatment improvements.
* Meanwhile…
Gov. Bruce Rauner has quietly signed a measure to spend another $5.5 million on the proposed Illiana expressway, raising questions about whether he’s seeking to keep the project on financial life support.
Several weeks ago, Rauner shelved the controversial south suburban toll road with a flourish:
“In light of the state’s current fiscal crisis and a lack of sufficient capital resources, the Illiana will not move forward at this time,” his office said then in a statement. “It is the determination of the Illinois Department of Transportation that the project costs exceed currently available resources. The department will begin the process of suspending all existing project contracts and procurements.” Rauner also ordered the road removed from the state’s five-year road program.
But on June 30, Rauner signed a bill that includes$5,491,724 for the Illiana, even as he knocked out money for other projects, such as land acquisition for the proposed south suburban airport at Peotone. The bill said the money would “enable the Illiana Expressway to be developed, financed, constructed or operated.” […]
With talk persisting in Springfield that Rauner wants to keep the project alive as trade bait with south suburban officials, this subject is worth keeping a close eye on.
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They’ll get paid when it’s over
Thursday, Jul 9, 2015 - Posted by Rich Miller
* Some folks have been wondering in comments and in e-mails what happens to state employee paychecks after a budget is finally implemented.
Some are ominously pointing to that back pay legislation which has been sitting idle for years and fear the same thing will happen once a budget is passed.
* So, I asked the attorney general’s office about it today. I was told that employees would not have to file with the Court of Claims or otherwise wait extended periods for their unpaid salaries. The paychecks will be forthcoming as soon as they’re processed by agencies and the comptroller.
The difference with that back pay bill was the GA didn’t appropriate enough money to fund salaries. As long as the new budget contains adequate appropriations, everything will be fine… eventually.
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Not a dry eye in the House
Thursday, Jul 9, 2015 - Posted by Rich Miller
* This Sun-Times piece was read on the House floor earlier today…
On tougher days, a friend or colleague would get him there.
Other times, he’d try to make it, but by the time his chemotherapy treatment had ended, he’d be too late for the day’s session.
Over the last roughly six months that state Rep. Frank Mautino, D-Spring Valley, has battled esophageal cancer, he’s missed at most three days of legislative session, he says.
This week, in the midst of preparing for surgery later this month related to his illness, Mautino said Democrats could again count on him driving the 150 miles to the state Capitol to cast what’s likely to be a critical vote.
They’ll need him.
“Absolutely, I will be there,” Mautino said on Tuesday. “I’m looking forward to it. I hope that we pass it. I hope that the governor chooses to sign it.”
* After a rousing ovation, Rep. Mautino rose to speak. It’s today’s must-watch video…
Stay strong, Frankie.
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*** UPDATED x1 *** Question of the day
Thursday, Jul 9, 2015 - Posted by Rich Miller
*** UPDATE *** This question may soon be moot. Click here to see an important development.
[ *** End Of Update *** ]
* House Bill 4245’s synopsis…
For FY16, provides a continuing appropriation for each State agency to meet personnel expenditures for each payroll period during which appropriations for personnel expenditures have not been made available to that State agency. Defines “State agency” to include all State agencies, the office of any constitutional officer, State universities, community colleges, and any agency, board, commission, or other instrumentality of State government to which an appropriation for personnel expenditures was made from a State fund in FY15. Defines “personnel expenditure” and “applicable State fund”. Effective immediately.
The bill was introduced yesterday by Rep. CD Davidsmeyer. It is supported by the governor and has yet to be assigned to a committee.
* The Question: Since the courts have not yet ruled that state employees can be paid without a budget, should the General Assembly pass this bill? Take the poll and then explain your answer in comments, please.
surveys & polls
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Credit Unions – 100 Million Strong
Thursday, Jul 9, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
For the past year, credit unions across the country have been engaging a movement-wide celebration – the achievement of 100 million members. Leading up to this watershed moment, credit unions added a total of 2.85 million additional memberships over the previous year — the largest reported increase in more than a quarter century. From a national perspective, this means one in three Americans now belong to a credit union.
So why is there a clearly growing recognition for credit unions among consumers? It’s because they know credit unions place their interests above all else. As not-for-profit, democratically led and cooperatively owned financial institutions, credit unions return their earnings to members in the forms of lower rates on loans and higher returns on savings. Nationally, consumers benefit to the tune of $6.6 billion annually because credit unions are tax-exempt. Here in Illinois, credit unions annually provide nearly $205 million in direct financial benefits to almost three million members.
It’s the structure of credit unions — cooperatives owned by their members — that allows them to maintain their focus on returning financial benefits to members. By doing so, credit unions have earned the satisfaction and trust of consumers, 100 million times over.
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* Press release…
Interest-free loans will be available to state workers if the budget impasse means payroll checks will not be issued beginning July 15, Illinois Treasurer Michael Frerichs said today.
The loans will be issued through participating credit unions with money made available through the Treasurer’s Office linked-deposit program. Linked deposits provide financial institutions money for specific loan programs.
“The Treasurer’s Office uses tools to help our residents achieve more, such as saving for college, investing in a business, or planning for retirement,” Frerichs said. “This linked-deposit program is a tool that provides short-term loans for workers while the Governor and General Assembly resolve their differences.”
The state’s fiscal year ended June 30. The absence of a budget agreement means the state does not have the authority to pay certain bills, such as wages to some state employees.
An estimated 60,000 state workers might qualify for the loan program. Participating credit unions will decide eligibility. Loans cannot exceed 50 percent of pay. Loans are interest-free until 30 days after payroll resumes. A 9.9 percent interest rate will be charged beginning the 31st day. Frerichs’ office negotiated the rate down from 12 percent and it remains half of the typical credit card rate. The Treasurer’s Office will charge credit unions 0.01 percent interest.
As much as $50 million will be made available for the loans. The Illinois Credit Union League and Credit Union 1 were instrumental in creating this linked-deposit effort and recruiting other credit unions to participate. Their recruitment efforts continue and the Treasurer’s Office expects other credit unions to join the effort.
$50 million sounds like a lot of money, but if all 60,000 qualified workers applied, there’d be just $833.33 available to each of them.
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Real campaigns vs. not so real campaigns
Thursday, Jul 9, 2015 - Posted by Rich Miller
* Bernie writes about Darin LaHood’s congressional primary win…
LaHood was not an incumbent, but with his well-known name and the backing in the primary of county Republican chairmen in 18 of the 19 counties in the 18th Congressional District, it was clearly his race to lose. The 19th county, McLean, has a GOP that doesn’t endorse in primaries, and Republican County Chairman CHUCK ERICKSON said that with LaHood’s primary win, the organization is now “fully, 100 percent, without reservation” backing LaHood in the Sept. 10 special general election.
LaHood’s toughest GOP opponent, MIKE FLYNN, accused LaHood of being “to the manor born” because of his family legacy. Flynn, a co-founder of biggovernment.com with the late ANDREW BREITBART, turns a good phrase. He also berated the GOP establishment for getting behind LaHood so early.
But LaHood met the challenge.
When he appeared at Sangamon County GOP headquarters the afternoon before the election, it was his fifth city visited that day. He said keys to winning were “hard work, taking nothing for granted and finishing strong.”
Working that hard and using his ample funding to maintain an advertising presence certainly overcame the competition. LaHood got 69 percent of the vote to 28 percent for Flynn and 3 percent for DONALD RIENTS of Benson.
LaHood was indeed a hard worker. He cleared the field of anybody who was anybody, raised a goodly amount of cash and ran a smooth operation.
* Flynn also seemed unclear on certain concepts at times…
What’s missing?
People.
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It could be a while
Thursday, Jul 9, 2015 - Posted by Rich Miller
* Tribune…
Republican Gov. Bruce Rauner tried to isolate House Speaker Michael Madigan on Wednesday, suggesting the veteran legislative leader was “in charge” and should wrangle Democrats into passing a $4 billion tax hike on their own or strike a deal with the governor to support his economic agenda and put an end to a budget impasse.
As part of his latest move against Madigan, Rauner unveiled a mammoth, cost-cutting pension bill he said was aimed at solving government worker retirement system funding problems from the Capitol to City Hall to Downstate and suburban village halls. The plan, Rauner said, incorporated ideas from Mayor Rahm Emanuel, Cook County Board President Toni Preckwinkle and Senate President John Cullerton — like Madigan, all Democrats.
* OK, now let’s revisit my Crain’s Chicago Business column from Monday…
After a cooling-off period of about a week, the Senate president went back to working out a deal. But he wasn’t willing to do to Madigan what Madigan did to him on the 2015 budget. When the speaker wouldn’t sign off on a key component of Cullerton’s plan, the president backed off. The Rauner folks were foiled again.
Mayor Rahm Emanuel also has refused to put Madigan on the spot, even after Rauner offered his school district some much-needed cash to help with its $634 million pension payment. Emanuel instead borrowed a bunch of money and made the pension payment. He also announced mass layoffs and other big cuts, a property tax hike of up to $250 million. He also requested a $500 million loan from the Chicago Teachers’ Pension Fund.
Chicago Public Schools still faces the very real threat of insolvency, however, which means Emanuel’s in an extremely vulnerable position.
The question now becomes whether Rauner can use these fiscal calamities to pressure Emanuel into using all his powers to force Madigan, the most powerful Democrat in Illinois, to find some common ground with the governor’s “turnaround agenda” before Chicago implodes.
In watching Madigan for 25 years, I think that guy is willing to wait this thing out. He wants to test Rauner’s mettle and force him to finally get out of campaign mode.
It could take a while.
* Back to the Tribune piece…
But the governor’s attempt to spotlight Madigan as the reason for the dysfunction did little to disrupt the united front put forth by Democrats, who dismissed the governor’s latest plans as an insincere effort that didn’t offer much toward reaching a middle ground.
* Sun-Times…
Madigan spokesman Steve Brown didn’t give Rauner’s isolation tactics much credence, reflecting on the governor’s claims dating back to the November election. Then, Rauner in his victory speech made it seem as if he had just gotten off the phone with Madigan and Cullerton. It was later revealed he had not personally spoken to either.
“It’s sort of like Election Day phone calls. You don’t know who he’s actually talking to. Not much new there,” Brown said. “It’s amazing that he doesn’t recognize he’s been unpersuasive on a statewide basis with all these ideas. He ignores the fact that he’s totally responsible at this juncture that employees weren’t paid on time. He is singularly responsible. He held that power.”
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The mother of all poison pills
Thursday, Jul 9, 2015 - Posted by Rich Miller
* From Gov. Bruce Rauner’s pension reform bill…
Prohibited subjects of bargaining.
(a) A public employer and a labor organization may not bargain over, and no collective bargaining agreement entered into, renewed, or extended on or after the effective date of
this amendatory Act of the 99th General Assembly may include,
provisions related to the following prohibited subjects of collective bargaining:
(1) Employee pensions, including the impact or
implementation of changes to employee pensions, including
the Employee Consideration Pension Transition Program as
set forth in Section 30 of the Personnel Code.
(2) Wages, including any form of compensation including salaries, overtime compensation, vacations,
holidays, and any fringe benefits, including the impact or
implementation of changes to the same; except nothing in
this Section 7.6 will prohibit the employer from electing
to bargain collectively over employer-provided health insurance.
(3) Hours of work, including work schedules, shift
schedules, overtime hours, compensatory time, and lunch periods, including the impact or implementation of changes
to the same.
(4) Matters of employee tenure, including the impact of
employee tenure or time in service on the employer’s
exercise of authority including, but not limited to, any
consideration the employer must give to the tenure of
employees adversely affected by the employer’s exercise of management’s right to conduct a layoff.
Sheesh.
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* From a press release…
State Rep. Jay Hoffman called a Wednesday hearing on reforms to Illinois’ workers’ compensation system and expected to hear from an official in Gov. Bruce Rauner’s administration about the status of the system - an issue Rauner has stated is a priority. Instead, the public got the cold shoulder from Rauner, who again rejected transparency and an airing of issues the governor himself considers important.
“The ongoing secrecy from the governor and his administration has got to stop. It’s unfair to the taxpayers and constituents we serve who deserve a public discussion on issues that affect so many families,” Hoffman said. “We asked the governor’s administration to give us details of a report it issued on Illinois’ workers’ compensation system, but nobody showed. The governor has specifically said this issue must be addressed to his satisfaction before he will even discuss the budget. For no one to show up to discuss the issue is unacceptable.”
“The governor is using individuals who rely on the state, including the elderly, victims of child abuse and the developmentally disabled, to pass his extreme agenda. Then his administration does not even show up to discuss part of his agenda,” Hoffman added.
Hoffman, chair of the House Labor and Commerce Committee, invited Illinois Workers’ Compensation Commission chair Joann Fratianni to a hearing to discuss the agency’s Fiscal Year 2014 report, issued on June 16. Neither Fratianni nor a designee from her office attended the hearing.
In the commission report’s opening letter, Fratianni informs Rauner that workers’ compensation costs in Illinois are declining, with insurers reporting a 19 percent decrease in benefit payments over the last four years. The letter also cites a study noting Illinois saw the largest savings on workers’ compensation insurance and the largest decrease in medical payments per claim.
“It baffles me why we can’t get cooperation from the governor or his administration and discuss a public report,” Hoffman said. “Studies seem to show that Illinois is making important strides toward reducing workers’ compensation costs, yet employers tell us they have yet to realize savings. We need to know why. I agree that we must reduce costs for employers, but any plan that has the potential effect of ruining workers’ lives and leaving them with little or nothing to get by when they are unable to work would only worsen Illinois’ economic challenges and endanger middle-class families.”
Wednesday’s hearing marked the seventh time in the last month Rauner or administration officials have failed to provide information to the public on a number of issues, including salaries given to highly paid administration staff.
* Kurt Erickson has more…
In a letter to Hoffman, Illinois Workers’ Compensation Commission Chairmwoman Joann Fratianni said she was too busy at work to take time to attend the hearing.
Perhaps, then, she could’ve sent an aide?
If they continue ignoring these committees, we might get to the point where subpoenas are issued. But we don’t seem to be nearing that juncture quite yet.
* More…
A Rauner spokeswoman did not respond to a request for comment.
That’s what they normally do. You call, send an e-mail or text and you hear nothing back when they don’t want to comment.
* More…
Republican lawmakers say businesses haven’t seen the estimated $500 million that was supposed to be saved by the 2011 overhaul.
“There is still lots more room for improvement,” said state Rep. Dan Brady, R-Bloomington.
There is, indeed, room for improvement here.
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And the award goes to…
Thursday, Jul 9, 2015 - Posted by Rich Miller
* From one of the best-written Tribune stories I’ve read in a while…
And so the Springfield stalemate continues. Rauner is using the budget to gain leverage for his pro-business, union-weakening “turnaround agenda,” but Madigan has refused to engage the governor’s push for what the speaker has called “nonbudget” items. […]
Rauner wants to amend state law to remove wages and hours as issues that can be bargained and explicitly prohibit bargaining on pensions, salaries, overtime compensation and several other items.
Unions were not amused.
Heh.
More…
The Republican governor’s legislation also would require Chicago Public Schools to stop paying most of teachers’ required contribution to the pension fund — an idea the Chicago Teachers Union already has rejected — and only provide Emanuel with the pension relief he wants for the next two years.
“It’s a repackaging of lots of blatantly unconstitutional ideas, all of which are cuts,” CTU Vice President Jesse Sharkey said. “Really, he’s saying ‘I’ll either hit you with a rock, or I’ll hit you with a stick.’”
Go read the whole thing. Lots of harsh, snarky quotes and crisp writing.
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Special stipend for state school chief
Thursday, Jul 9, 2015 - Posted by Rich Miller
* The Chicago Tribune has uncovered a unique stipend for state school Superintendent Tony Smith…
Smith, a recent transplant from California who was Rauner’s choice for state school superintendent, by law was placed in the Tier II [state pension] plan, just like most educators hired after Jan. 1, 2011.
State Board of Education spokesman Matt Vanover said Smith’s exact stipend has not been calculated, but it is intended to match retirement benefits provided to his predecessor, who was a member of the more generous Tier I plan of the Teachers’ Retirement System of the State of Illinois, known as TRS.
“The board … decided to structure the contract so that the payment to Dr. Smith would be the same amount as if he were a Tier 1 employee,” Vanover said in an email to the Tribune.
Such a stipend came as a surprise to Steve Grossman, president of the Skokie-based North Suburban Teachers Union as well as a member of the state’s Teacher Recruiting and Retention Task Force, which is examining the Tier II plan and its effects on the education workforce.
Already, Tier II educators “feel like they’re being treated as second class citizens,” Grossman said.
Discuss.
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Cullerton: No
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* This is why today was more press pop than governance…
“What we tried to do is incorporate the ideas of all the various leaders to create an opportunity for significant cost-savings in the pension systems throughout the state of Illinois,” Rauner said. […]
“President Cullerton recognizes that the governor is accepting of many of the principles he’s outlined but the specifics that the governor is advancing is faraway from policies that Cullerton could support,” said Cullerton spokeswoman Rikeesha Phelon. “To simply co-opt language that the Senate President has used and call that negotiation, really does change the definition of negotiation and compromise. You can’t simply co-opt language and pay lip service to someone’s leadership and call that a negotiation.”
Frank Shuftan, spokesman for Preckwinkle, said she has received a copy of the proposal and is analyzing it. But she, too, didn’t have “any direct input into formulation of this particular proposal,” Shuftan said.
Preckwinkle is standing by her bill, which is “designed to resolve the county’s actuarial shortfall and put the pension fund on a road to long-term sustainable solvency,” Shuftan said.
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Needless insinuations
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* The AP has a story up entitled “Connected marijuana lobbyist to push for program’s future”…
A new group has formed to push for policies in Springfield favorable to the medical marijuana industry with a well-connected former Illinois Department of Agriculture employee as its top lobbyist.
Bresha Brewer stopped being a state worker just ahead of new ethics rules imposed by Gov. Bruce Rauner that would have prevented her from immediately going into lobbying and becoming part of a “revolving door” of former state employees who leave to become lobbyists. Brewer is now executive director of the Medical Cannabis Alliance of Illinois, which launched this week. […]
The alliance represents 39 companies — the bulk of the businesses that hold state permits to grow and sell marijuana in a pilot program that expires after 2017. Extending the program’s end date, or preferably achieving its permanence, will be one of Brewer’s most urgent objectives.
As executive director, she brings fresh insider knowledge, nearly 15 years of state government experience and a long list of connections. Brewer has worked for several state agencies as a legislative liaison, most recently for the agriculture department, which regulates marijuana growers.
Who knew that Bresha was so “connected”?
Plus, conveniently not mentioned anywhere in the AP story is that the Inspector General’s office had to sign off on her new job. It’s not like she just walked out the door and walked over to the pot industry. Also not mentioned is the governor’s edict that all lobbyists must first ask Rauner’s policy office for permission to talk to anybody at a state agency.
I’ve known Bresha for years. She knows just about everybody, but “connected” is not a word I would use to describe her.
And ain’t it a good thing that the marijuana folks chose somebody who knows what the heck they’re doing in Springfield?
This could’ve been a much better story without all the slimy insinuations. And the reporter even missed the fact that the group’s spokesperson is the wife of a Republican state legislator. Oh, such opportunities lost!
…Adding… I forgot that Bresha was a Golden Horseshoe Award winner back in 2012…
It seems like Bresha has been a liaison for just about every agency. She’s easy to work with, has great connections and a good sense of humor.
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“Core beliefs”
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* House Speaker Michael Madigan has often said that many parts of Gov. Bruce Rauner’s “Turnaround Agenda” go against the “core beliefs” of Democratic and many Republican legislators.
Rauner finally addressed this today. It’s something I’ve written about before, but it needed to be said…
“I don’t like taxes, period, I don’t like to ever raise taxes. I’m willing to do it as part of reform,” Rauner said. “I’m willing to do something that goes against my core beliefs, I can ask the folks on the other side of the aisle to vote for some things they’d rather not.”
That makes sense. But it doesn’t likely get us closer to a deal, mainly because of this line…
“Speaker Madigan needs to make a decision,” Rauner said. “(Are you) going to support reforms or support a tax hike? It’s one or the other.”
Yep. It has become one or the other. Madigan chose a tax hike. And therein lies the fundamental problem.
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Dueling infographics
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* From the Illinois Senate GOP Facebook page…
Many people have questions about what they can expect as the state begins the new fiscal year without a budget. We’ve put together this infographic explaining which state operations will continue with or without a state budget in place.
Their infographic…
* From Emily Miller at Voices for Illinois Children…
The IL Senate GOP created a fairly misleading infographic about the budget crisis and posted it to Facebook yesterday.
It downplays the very clear impact this crisis is already having, and is about to have, on middle class Illinois families.
Here’s our response.
Their infographic…
Thoughts?
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*** UPDATED x3 *** Winning the cycle
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* Sun-Times…
Gov. Bruce Rauner on Wednesday announced his administration was making public a massive pension reform bill that encompasses issues involving the City of Chicago and Cook County as well as Downstate.
The reform proposal, he said, could save the City of Chicago billions of dollars every year.
Rauner said the more than 500-page pension reform bill includes changes to Chicago’s fire and police pension plans as well as to the Chicago Teachers pension. He said it also included suggestions from Senate President John Cullerton about cost of living increases as well as suggestions from Cook County President Toni Preckwinkle.
Rauner said he’s worked with Mayor Rahm Emanuel, Cullerton and Preckwinkle to come up with the legislative language. He said Preckwinkle told him that she wouldn’t need to raise taxes in Cook County if Springfield steps up on pension reform. […]
“The Senate President has spent time with the Governor discussing a constitutional model for comprehensive pension reform,” said Cullerton spokeswoman Rikeesha Phelon. “The governor’s recognition of the Cullerton model is encouraging, but we will have to review the details of the Governor’s new proposal.”
OK, wait. He plopped down a 500-page bill in front of reporters before discussing the details with the Senate President or his top staff?
That’s not how you win passage of legislation, it’s how you win the daily news cycle.
There are similarities between governing and campaigning, but there are also big differences.
The next general election is over a year away. Less worrying about the next campaign, please, and lots more governing instead.
*** UPDATE 1 *** Riopell has a few deets…
Rauner’s proposal incorporates the benefit-cutting plan offered by Cook County Board President Toni Preckwinkle, which she says could help save the county enough money to avoid a sales tax hike.
Rauner’s newest plan would also nod toward suburban mayors, who have called for pension changes for years to help reduce retirement costs for police officers and firefighters. Under Rauner’s plan, they would have to choose between two options: Smaller yearly pension increases in retirement or basing their eventual pension payout on today’s salary rather than on future raises.
Teachers would be offered the same deal under Rauner’s plan. In the past, Illinois Senate President John Cullerton has argued it would be constitutional to change employees’ pension benefits if they were offered something in return.
Union leaders aren’t likely to agree with the latest proposal.
The courts might not agree with it either.
*** UPDATE 2 *** Click here to read a summary.
*** UPDATE 3 *** Reuters…
The bill would also give Illinois’ local governments a route to Chapter 9 municipal bankruptcy following an evaluation by a third party or the declaration of a fiscal emergency.
Crain’s…
Says mayoral spokeswoman Kelley Quinn in a statement: “While we are encouraged that the governor has incorporated elements of both the city and Chicago Public Schools agenda, some of these items have already been adopted by the General Assembly, including pensions for both police and fire.”
Translation: Kindly don’t hold our police/fire pension bill hostage to this other stuff governor. Kindly sign the bill now on your desk.
Sun-Times…
Chicago taxpayers would still be on the hook for $619 million in payments to the two funds next year — more than double the current payment. But that’s still $219 million less than the city would have been forced to pay and an $843 million break over the next five years.
Rauner’s offer also includes the elusive, city-owned Chicago casino with all of the revenues devoted exclusively to shoring up police and fire pensions. That could minimize the need for a massive, post-election property tax increase in Chicago.
One week after Emanuel used a toxic mix of borrowing and budget cuts to make a $634 million payment to the Chicago Teachers Pension Fund, Rauner is offering a partial solution to the $9.5 billion teacher pension crisis.
He’s offering to pick up the “normal cost” of teacher pensions and help CPS with the hefty price tag for “defraying health insurance contributions,” but only for fiscal years 2016 and 2017.
The deal is contingent on Chicago teachers accepting the equivalent of a 7 percent pay cut by absorbing the “pension pick-up” that CPS agreed to make years ago in lieu of a pay raise. Teachers currently contribute just 2 percent to their own pensions.
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* After promising yet again that state employees would be paid during the shutdown, the governor was asked today why he didn’t just use his line item veto powers on the appropriations bills and spare employee salaries in the first place. Here’s his reply…
That budget was $4 billion in the hole. And, and, to, to go through … we need major changes in that budget, um, and to go through line item veto doesn’t make sense.
He then said it would be “very easy right now” to pass a continuing appropriation for state employee pay.
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* Press release…
In the first full quarter since announcing her campaign for U.S. Senate, Democrat Tammy Duckworth raised over $1.2 million. This amount exceeds Senator Mark Kirk’s first full quarter of 2016; in April, Kirk announced he had raised just over $1 million in the first quarter. Duckworth announced her campaign for Senate at the end of March, and thus far has raised more than $1.7 million this cycle. The campaign has $2.2 million on hand.
“Tammy’s vision for a stronger Illinois that looks after its citizens and honors the service and sacrifice of everyday heroes — be they Veterans, working moms, or middle-class families looking to get ahead — is clearly resonating,” Tammy for Illinois campaign manager Kaitlin Fahey said. “It’s especially gratifying to see how many grassroots contributions and repeating small-dollar contributions we’ve received. This is a campaign that will be powered by the everyday Illinoisans Tammy aims to serve.”
Some key highlights from the report, which will be filed with the Senate Office of Public Records and Federal Elections Commission within a week:
The campaign received over 12,700 individual contributions
Of those contributions, 94.7 percent were $100 or less, and the median individual contribution was $25
More than 90 percent of the campaign’s $2.2 million cash-on-hand balance can be spent at any time, at the campaign’s discretion. In other words, the campaign has more than $2 million at its disposal to spend toward a primary or general election.
The Illinois Senate race is consistently ranked as the top race in the country, and Senator Kirk is routinely listed as the most vulnerable Senate incumbent. Nevertheless, Kirk’s $1 million raised during the first quarter ranked last among the five most vulnerable Republican incumbents: Sens. Portman (OH), $2.3 million; Toomey (PA), $2 million; Johnson (WI), $1.3 million; and Ayotte (NH), $1.2 million.
*** UPDATE *** From the Kirk campaign…
Kirk raised $1.35 million this quarter with $3.2 million cash-on-hand. This is Senator Kirk’s single largest fundraising quarter since being elected to the Senate.
Duckworth is finishing last right now among Senate Democrat candidates
Russ Feingold (WI) raised $2 million.
Fellow Rep. Chris Van Hollen (MD) raised $1.5 million
Fellow Rep. Patrick Murphy (FL) raised $1.4 million
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Not yet
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* From the twittersphere…
Greece’s government debt as a percentage of GDP: 175.1 percent
Puerto Rico’s government debt as a percentage of GDP: 150 percent
* OK, now take the absolute worst case bookkeeping scenario on Illinois’ debts…
(T)he unfunded pension liability, which totaled $275 billion on a guaranteed basis, plus a further $33 billion in bonded indebtedness and $34 billion in unfunded other postemployment benefits (OPEB)
That “guaranteed basis” will have to be paid in full only if there are very low capital gains on pension fund investments. Some ultra-conservatives have been leading the way on this particular pension debt measure and there is a very hot debate over whether their forecasts are accurate.
But, even though I disagree with that estimate, add it all up anyway and you wind up with a worst case scenario of $342 billion in total debt.
Illinois’ GDP for last year was $745.9 billion.
So, worst case scenario, Illinois’ debt is 46 percent of GDP.
That’s really bad. But not Grecian bad.
But it’s exactly why we need some economic growth, folks. Disagree with how he wants to get us there if you will, but the governor’s absolutely right that we have to try to grow out of this problem.
And we sure as heck won’t get there with extremist austerity measures. We’ve all seen what that did to Greece.
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*** UPDATED x1 *** Things heat up in Port Byron
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* From last month…
Illinois law requires each municipality to pass annual prevailing wage ordinances setting out the union pay rate for the area, as established by the department of labor, which will be the base rate for work contracted out for many projects.
At Monday’s village council meeting trustees in Port Byron(Quad Cities) said no and voted down their prevailing wage ordinance.
More…
“If we don’t pass it, what then?” trustee Brian Bitler asked.
Mayor Kevin Klute said he wasn’t sure. […]
An audience member said the village may soon see protesters, which Mr. Bitler said would amount to “union bullying.”
“I can’t just let that pass,” Mr. Wells said in response. “People do have the right to make a living wage.”
* A union protest of sorts did happen. From Illinois Review…
Some union thugs over the long Independence Day weekend decided to pass out flyers in downtown Port Byron,IL that threatened and sought to intimidate local businesses all because the Port Byron city council voted against a prevailing wage resolution last month. […]
Quad Cities area union members said in the flyer that they wanted, “Alltradespeople, our friends and business partners to not patronize Port Byron businesses.” Because the council voted against a prevailing wage resolution. Prevailing wage forces governmental units to pay the prevailing, i.e union wage, for construction, road and other projects thus needlessly driving up the cost of projects.
The union flyer also says that it is “disgraceful” that Port Byron’s elected officials, “Do not recognize the economic value that construction trades and their families bring to your community.”
More…
“I find it despicable for them to go into town and threaten to take money out of the pockets of our local businesses so they can further an agenda,” Klute told News 8.
“Maybe you have a conversation with us first before we start handing pamphlets in downtown Port Byron threatening to take the livelihood from our businesses,” Klute added.
OK, but maybe the other side of the coin is you should talk to your union residents before you refuse to approve your local prevailing wage rate.
Votes have consequences.
The flier is here.
*** UPDATE *** The pressure apparently worked. With a grateful hat tip to a commenter…
Village board members Monday passed the state-mandated prevailing wage agreement, but added a statement of protest seeking local control of labor costs.
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Somebody needs to pick up the darned phone
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* My jaw dropped when I read this quote from Sheriff Tom Dart the other day in Crain’s…
Since late May, Dart says his office has been sending as many as 150 uniformed personnel a day into high-crime city neighborhoods, concentrating on the 11th and 15th districts on the West Side and the 7th District on the South Side. A fair amount of the routine stuff is involved, but the bigger idea is to create “a heightened police presence,” Dart says.
The office made a similar effort the past two years, Dart says, for instance seizing 112 guns, making 522 arrests and doing 862 home-monitoring checks last year. Last summer’s effort ran six weeks and involved no more than 100 officers at a time. But, the sheriff told me, “This sort of concerted operation is different. It’s the kind of thing we do in Harvey,” a south suburb known for high crime and little ability to do anything about it. Street patrols “absolutely” are part of what his folks are doing, Dart says.
Did the sheriff first vet his idea with Mayor Rahm Emanuel or CPD Superintendent Garry McCarthy?
“We probably haven’t spoken for four years,” Dart answered, referring to Emanuel, who he seriously considered running against for mayor in 2011. And he and McCarthy don’t talk much either. So, “We run the numbers and then call the (CPD district) commander in the area, and my commander meets with him. . . . The whole intention is suppressing crime.”
* The Sun-Times editorial board was equally floored…
Cook County’s top law enforcement official and Chicago’s powerful mayor, though they both likely wake up every morning and ask themselves what can be done to curb gun violence, haven’t talked about it in years. […]
Chicago needs the help. Just Tuesday afternoon, a man was shot and critically wounded in South Shore, near where after another person was shot and killed Tuesday morning and near where one teen was shot and killed and another teen was seriously wounded Monday. Over the Fourth of July weekend, shootings left 10 dead and 53 injured.
But if our elected leaders are serious about ending the bloodshed, it might help if they worked together, closely and for real.
Gun runners don’t stop at municipal and county boundaries. Neither should county sheriffs and mayors.
This is just a ridiculously stupid situation. The city should be doing everything it can to work with Dart. Stop with the turf wars and the political grudges, already.
Sheesh.
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I’m just not buying the conspiracy theories
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* Mark Brown…
“This entire situation has been caused by the failure of the Governor and the Legislature to enact a budget,” [Attorney General Lisa Madigan] said in a written statement that emphasized she “absolutely” wants state employees to be paid.
She’s absolutely correct about that, although it’s hard to believably play the role of the neutral third party when your father is the leader of the party Rauner says is responsible for Springfield’s dysfunction.
It is somewhat curious Madigan took a different position in 2007 when a full house of Democratic officials was responsible for that year’s budget standoff, with the attorney general agreeing to allow then-comptroller Dan Hynes to keep paying state employees.
Madigan’s lawyers argued the difference is that all parties were very close to a budget agreement that year, while there’s no deal in sight this time. Hmmm, usually close doesn’t count.
* WUIS…
Republican Rep. Raymond Poe, whose district covers Springfield, the seat of state government, says he’s wary of the Cook County judge’s decision. Poe goes back to 2007, when Illinois had a Democratic governor and Illinois was without a budget. A court then allowed all state employees to be paid.
“Seems like we got a different governor, so seems like we don’t want to do that for him,” Poe says. “I hate to say it, but almost sounds like politics, doesn’t it?”
* She did, indeed, take a different position in 2007. But the judge told her that his order did not set a precedent and warned her never to come back again.
So, in 2009 when unions filed a lawsuit to force payment of their wages during yet another protracted budget battle, AG Madigan opposed them with pretty much the very same arguments she’s using now.
And then in 2012, when AFSCME sued because the General Assembly didn’t appropriate enough money to fund payroll, AG Madigan again used the same arguments that she’s using now.
There will always be grand conspiracy notions when it comes to the Madigan family business. But, in this case, the simplest explanation seems to be the most fitting. After having been rebuked by that county judge in 2007, she’s been pretty consistent.
…Adding… Here’s an edited version of something I posted in comments that may help explain this more fully…
In 2007, Speaker Madigan was in an overtime battle to the death with Rod Blagojevich. AG Madigan sided with the governor on a one-time, one-off deal because the state didn’t have its act together on the Fair Labor Standards Act requirements. It would’ve taken months to get that paperwork done, and with a budget agreement in sight, a one-off dealio seemed appropriate.
In 2009, CMS and the comptroller still didn’t have their acts together on FLSA and she said that’s your problem now and opposed paying state workers.
In 2015, CMS and the comptroller still don’t have their act together on FLSA and are making the very same arguments about how it’ll just take too long.
Remove your tinfoil hats.
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What’s covered by the court case?
Wednesday, Jul 8, 2015 - Posted by Rich Miller
* If you click here and scroll down to the last page, you’ll see a long list of consent decrees covered yesterday under Cook County Judge Dianne Larsen’s ruling that bars the state from paying employees, but allows it to pay other bills.
There’s a whole lot of stuff on there, from the Child Care Assistance Program to a program for adults with developmental disabilities, to the Department on Aging’s Community Care Program.
Greg Hinz wanted to know just how big this was, and whether the one-month “essentials” budget was really needed…
[Speaker Madigan’s spokesman Steve Brown] acknowledged that there is some overlap between the essentials budget and programs that already are protected under the consent decrees Judge Larsen mentioned. But how many?
According to Judith Gethner, executive director of Illinois Partners, a trade group for social-services providers, perhaps only a third or so of her members are covered and will get paid on time. Some clearly are not covered, she said, such as after-school programs. The state “still needs” either a full or a short-term budget, she said.
* Also, check this out…
Gethner also told me that another cut announced by Rauner—an increase in eligibility standards for some senior and disabled programs—will require federal approval. But paperwork seeking permission hasn’t even been filed yet.
That particular cut was announced during one of the governor’s two rounds of $400 million budget slashes - which Rauner never actually put into line item vetoes.
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* Attorney General Lisa Madigan’s motion to dismiss the lawsuit filed by AFSCME and several other unions in St. Clair County is worth a look. The unions claim their collective bargaining agreements require that employees be paid.
First, she argues that there are lots of precedents for moving this case to the Court of Claims, where she says it rightfully belongs…
Pursuant to § 2-619(a)(1) (735 ILCS 5/2-619(a)(1) (2012)), plaintiffs’ complaint should be dismissed because their claim founded upon their contracts with the State is barred by sovereign immunity and therefore this Court lacks jurisdiction over that claim.
You can read her memorandum of law, which contains all the details and precedents, by clicking here.
* There is, Madigan says, another reason for kicking this case out the door: There’s another case being heard in Cook County…
Pursuant to § 2-619(a)(3) (735 ILCS 5/2-619(a)(3) (2012)), plaintiffs’ complaint should be dismissed because there is a prior-filed action pending in the Circuit Court of Cook County, case no. 15 CH 10243, which raises the issue of whether the Comptroller may authorize payment of state employees in the absence of a budget. The public labor unions intervened in that lawsuit before they filed the instant action.
* This one’s a bit more complicated…
Pursuant to § 2-615 (735 ILCS 5/2-615 (2012)), plaintiffs’ complaint should be dismissed for failure to state a claim because an impairment of contracts claim under the Illinois Constitution requires a legislative enactment, but here plaintiffs complain only of the legislature’s failure to pass a budget. Additionally, an impairment of contracts claim may not be used as a substitute for a breach of contract action, but a breach of contract is all plaintiffs assert.
* Let’s turn to the memorandum of law to explain that last point a bit more. Madigan cites fairly recent precedent, among others…
(T)he court has “rejected the notion that a breach of contract alone is enough to constitute a constitutional impairment of a contractual obligation.” Council 31, AFSCME v. Quinn, 680 F.3d 875, 885 (7th Cir. 2012).
In Quinn, the court rejected the argument that the legislature unconstitutionally impairs the obligations of a contract when it fails to appropriate funds sufficient to the State to meet its contractual obligations to its employees. Id. at 885-86. Because plaintiffs cannot turn their ordinary breach-of- contract claim into a constitutional claim, their complaint should be dismissed pursuant to § 2-615.
Boom.
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