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*** UPDATED x3 *** Sun-Times: Tax deal reached

Thursday, Jan 6, 2011 - Posted by Rich Miller

* As subscribers already know, the tax hike deal may be a bit higher than this, but details are still somewhat sketchy at the moment. Sun-Times

Gov. Quinn and the Democratic legislative leaders have struck an agreement to raise the income tax on individuals from 3 percent to 5 ¼-percent and raise the state tax on cigarettes by $1 a pack, sources said.

The moves, if they pass the House and Senate before next Wednesday, could erase the state’s expected $15 billion deficit, generate a $700-million-plus windfall for schools and grant property tax relief, sources said. […]

What the governor has laid on the table — we’ve talked to the Senate black caucus; we’ve talked to the House black caucus — and we are pretty much in consensus that our two main points are being fulfilled, education funding and property tax relief. We’re OK with the mechanisms to get there,” said Rep. Will Davis (D-Homewood).

Davis said Quinn described the tax plan as an “agreement” he had reached with Madigan and Cullerton.

I’ve confirmed that Speaker Madigan, the governor and the Senate President are on board with this plan.

Discuss.

* UPDATE: I just checked again and as far as I know the tax hike plan at the moment is 2.5 points, as I reported to subscribers earlier.

* UPDATE 2: Apparently, there is now a difference of opinion on what was agreed to. So for now I’ll say 2.25 unless this gets straightened out.

* UPDATE 3: Will Davis talked to reporters right after session ended for the day…


  76 Comments      


Medical Marijuana fails by four in House

Thursday, Jan 6, 2011 - Posted by Rich Miller

Posted by Barton Lorimor

5:32 p.m. Leader Lou Lang’s bill to legalize medical marijuana failed in the House by four votes. Here’s the board…


This was final passage, so the bill is dead. It was put on Postponed Consideration earlier in the session.

  11 Comments      


Protected: *** UPDATED x2 *** SUBSCRIBERS ONLY… New tax plan presented

Thursday, Jan 6, 2011 - Posted by Rich Miller

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*** UPDATED 2x - HOUSE PASSES REPEAL ON SECOND VOTE *** Death penalty repeal fails by one vote

Thursday, Jan 6, 2011 - Posted by Rich Miller

Posted by Barton Lorimor

4:53 p.m. Efforts to repeal Illinois’ death penalty failed in the House by one vote. The issue has been placed on postponed consideration.

Pro-repeal lobbyists said immediately after the vote that Rep. Patrick Verschoore was supposed to vote in favor of the measure. Rep. Rosemary Mulligan was the only representative not to cast a vote. She is reportedly out of town due to an illness. [Adding: Rep. Mulligan denies proponents’ claims that she would’ve voted Yes.]

Video of the vote board…


6:23 p.m. The House has taken another vote on this bill and is going through a verification. Roll call shows it has the 60 it needs to advance.

6:25 p.m.The death penalty repeal has passed the House 60-54-0. Verification confirmed the roll call.

  23 Comments      


Bill Daley gets Emanuel’s old job

Thursday, Jan 6, 2011 - Posted by Rich Miller

* I’ve been extremely reticent to post anything on this topic because people get all kwazy when it comes to national politics. But Bill Daley is a local guy and he just got a very big job, so away we go. From the Sun-Times

“I am proud to announce the appointment of an experienced public servant, a devoted patriot, my friend, fellow Chicagoan Bill Daley, to serve as my chief of staff,” Obama said in the same White House East Room where in October then chief of staff Rahm Emanuel got a big send-off to run for mayor of Chicago.

“Few Americans can boast the breadth of experience that Bill brings to this job,” Obama said, noting his service in the administration of former President Bill Clinton.

“. . . He’s led major corporations. He possesses a deep understanding of how jobs are created and how to grow our economy. And, needless to say, Bill also has a smidgen of awareness of how our system of government and politics works. You might say it is a genetic trait.’’

Obama added, “But most of all, I know Bill to be somebody who cares deeply about this country, believes in its promise, and considers no calling higher and more important than serving the American people. He will bring his tremendous experience, his strong values and forward-looking vision, to this White House. ”

I’d like to hear your thoughts on this. I don’t, however, want to see an over the top discussion about your eccentric views on national politics. Keep it civil, please, and keep the bumper sticker slogans and DC talking points out of this. Commenters have been getting a bit weird on me this week. Try taking a deep breath before posting, whether you like this appointment or not.

Thanks.

  59 Comments      


No decision yet

Thursday, Jan 6, 2011 - Posted by Rich Miller

* 1:20 pm - From the Senate Democrats…

Leaders’ Meetings:
We continue to see progress in meetings with the Governor and the Speaker but discussions are ongoing. Therefore we do not intend to release details [about] revenue options. The Senate President will be avaliable for availabilities and interviews once a clear and viable proposal emerges.

Today’s leaders’ meeting has ended. We haven’t scheduled a follow-up meeting at this time.

Schedule:
Tomorrow is not a pre-scheduled session day for the Senate. That was the original schedule, and so far it hasn’t changed.

They’re running out of time here. If the Senate goes home today without an agreement with the governor, the chamber won’t be back until Tuesday, unless they change the schedule.

* The House Democrats say the governor wanted time to meet with members face to face and the leaders thought that this was a prudent thing to do.

Reading between the lines here, things aren’t looking great. The governor should’ve just told the two leaders to pass what they could and he’d sign it. And he should’ve done that two months ago. Here we are ten days into the post-election session and nothing’s been decided yet.

Oy.

* 2:11 pm - From the SJ-R

House Speaker Michael Madigan, D-Chicago, left a three-hour closed door meeting with Gov. Pat Quinn and Senate President John Cullerton, D-Chicago, indicating they had focused on a proposal that will be presented to rank-and-file lawmakers soon.

“We have a more specific plan,” Madigan said. “We’ll see what they say and then if they have reactions, then we’ll go back and make adjustments.”

Madigan would not talk about specifics.

  39 Comments      


Question of the day

Thursday, Jan 6, 2011 - Posted by Rich Miller

* Rockford Register Star executive editor Linda Grist Cunningham and the paper’s senior editor Chuck Sweeny both took a swing at the upcoming inauguration festivities. Cunningham

How about a simple swearing in, like we do for mayors, council, school and county board members? How about no tux and tails, no champagne, no ballroom dancing? How about every nickel of public and private cash going toward the inauguration instead be routed to deficit reduction — or at least paying a couple bills to a handful of social services?

Sweeny

If I were the governor, or his ghostwriter, here’s what I’d say: My fellow Illinoisans, this is no time for celebration. This is time for those in whom the people have placed their trust, to earn that trust. That’s why I’ve ordered that no inaugural celebrations take place. For there’s no getting around it. Our great, prairie state of Illinois is in a fiscal catastrophe.

* The Inaugural Ball will be held at Springfield’s Prairie Capital Convention Center. The SJ-R has the menu

Among the orders: 5,000 mini-burgers, 14,000 shrimp, 42-inch-high white and dark-chocolate fountains, three ice carvings, beef, a pasta bar, a salad bar, a taco bar, Bananas Foster and a variety of sauces.

* Corporate sponsors

Illinois Association of Realtors, The Merchandise Mart, Chicago-Copywriter.com, Pepsico, Mayer-Brown, Illinois Hospital Association, Archer Daniels Midland Co., Commonwealth Edison, Exelon Energy, All-Circo Inc., Union Pacific, BNSF Railway, Motorola, Office Depot, SEIU-Healthcare of Illinois-Indiana, Office Depot, Comcast, Micosoft, Ariel Investments, Associated Beer Distributors of Illinois, Globetrotters Engineering Corp., Baker Inc., Illinois Manufacturer’s Association, Ullico, Wirtz Corp., and U.S. Equities Realty, Mid-West Truckers Association, Walmart, and Illinois Road and Transportation Builders Association.

* The Question: Should the Inaugural Ball be scaled back or even canceled? Explain.

And, yes, I know we’ve talked a bit about this before, but now we have some details.

  94 Comments      


Herding cats

Thursday, Jan 6, 2011 - Posted by Rich Miller

* It’s never easy to do anything big in a legislature. This tax hike plan is no exception. The Republicans hate it, some conservative and/or politically vulnerable Democrats despise it, and even some liberals have found a way to diss it

Leading black lawmakers, including former Chicago mayoral candidate James Meeks, vowed Wednesday to oppose any increase in the state income tax if it does not explicitly set aside money for schools and property tax relief.

Gov. Quinn, Senate President John Cullerton (D-Chicago) and House Speaker Michael Madigan (D-Chicago), who were expected to reconvene on more tax talks Wednesday afternoon, have discussed several tax-increase scenarios — though none appear to have the tax-swap features that Meeks helped pass through the Senate in May 2009.

That plan raised the individual income tax rate from 3 to 5 percent, increased exemptions for property taxes and imposed sales taxes for the first time on services like haircuts, auto repairs and dry cleaning.

“I cannot support anything that does not put money toward property tax relief and education. For eight years, I’ve carried a school funding bill, and its main essentials were money for education and money for property tax relief,” Meeks said.

“All of a sudden, the proposal we’re hearing about now does not have either of the two,” said Meeks, who made his position known during a closed-door Senate Democratic caucus earlier Wednesday.

* But Senate President John Cullerton told reporters yesterday that spending won’t go up

Senate President John Cullerton told reporters tonight that raising the rate 2 percentage points is probably the most legislators can accept.

“Hopefully, that’ll be the last meeting because we have to have an agreement or we’ll run out of time,” Cullerton said of Thursday’s planned meeting.

Cullerton said spending in the next budget cannot go up.

“We have such a great loss in federal revenue dollars that we know that the spending can’t go up,” he said. “This is all premised on the fact that there will be no spending increases, moratorium on new programs and what we’re trying to avoid is deficit spending. That’s really what the fight’s about.”

* And watch Cullerton’s interview to see that he predicts property tax relief will be included in the final package


* Meanwhile, the Senate passed a Medicaid reform bill yesterday that even Republicans praised

State Sen. Dale Righter, R-Mattoon, said the proposal will return the “struggling” program to a safety net for the poor, instead of a catch-all for the potentially ineligible.

“It’s struggling for the people who need it the worst,” he said. “We’re talking about the people who are on the lowest rungs of the economic ladder, the people for whom access is a truly critical issue. The people who aren’t mobile. People who can’t drive two hours and take a day off because it’s not a big deal to make sure that their child can get to a medical provider.”

* But even though the Republicans had demanded Medicaid reform before considering a tax hike, Sen. Righter yesterday said that idea was now a non-starter

“This (Medicaid) is an issue unto itself,” Righter said. “This is not a trading card in other areas of public policy.”

See what I mean about nothing being easy?

* The SJ-R has a good list of bullet points

*Requires that 50 percent of Medicaid recipients be in managed care programs by 2015.

*Sets the income level for participation in the All Kids program to 300 percent of the federal poverty level, or about $66,000 per family.

*Ends the practice of automatically re-enrolling participants once they are part of Medicaid. They will be required to annually prove they are still eligible.

*Places a two-year moratorium on expanding eligibility for participation.

*Allows pharmacies to provide 90-day supplies of some maintenance drugs.

*Creates civil penalties for Medicaid fraud.

*Phases out the practice of paying Medicaid bills from one budget year with revenue from the following budget year.

* And in other news, the Senate-approved gaming bill has been altered in the House

“[The new additions] provide that our race tracks in Cook County may relocate within three miles of their current location, under certain conditions. It provides a $2-million renovation tax credit to be utilized by all riverboats in the state of Illinois,” Lang said.

“The [legislation] provides that all of the [casinos] authorized under this bill might build temporary facilities. Because we know that it may take up to two years to build a new [casino]. We want to get the money flowing, we want to get people hired, we want to bring in this money.”

But those temporary sites would have to wait for Illinois’ other gambling expansion to get up and running first. Lang’s legislation requires that 2,000 video poker positions be opened before new casinos are established.

Existing casinos also would see a tax sweetener under Lang’s legislation. The nine current riverboats and the one casino being built in Des Plaines would receive a decade-long, 5-percent credit to help offset any losses to the new casinos.

The bill moved out of committee yesterday.

* Roundup…

* Madigan visits state Senate floor to press for tax hike: “This is Madigan’s, certainly his way of telling you that, ’something has to be done, and I’m going to be the one to do it,’” said Sen. Lou Viverito, D- Burbank, a longtime Madigan ally who spoke to the speaker for several minutes.

* Income tax hike moving forward

* Madigan Refuses to Be Pinned Down on Tax Increase Amount: Republican Minority Leader State Sen. Christine Radogno said she met with Gov. Quinn on Wednesday to talk about spending cuts. “He said they’ve already cut spending by $3 billion, but what they’ve done is not pay bills,” Radogno said.

* As income tax talks heat up, some suburban lawmakers remain cool to it

* Ill. lawmakers move closer to income-tax increase: But outgoing Rep. Elizabeth Coulson, R-Glenview, Ill., will not budge. “I am not going to all of a sudden change my mind where my district comes from and say, ‘take the money and run with it,’” Coulson said.

* State government between rock and a hard place on tax hike

* Joe Calomino: Will state GOP have courage to nix tax increase?

* Reform — or eyewash?

* Senate approves Medicaid reform package

* New version of gaming expansion headed to House floor

* House committee approves massive gambling expansion

* Gambling bill moves to full House

* VIDEO: House Rep. Lou Lang discusses gaming changes

* Sweeping teacher tenure, strike bill pushed in Springfield

* State Senate rejects Taylorville Energy Center clean-coal project: The loss came a day after state Sen. Kyle McCarter, R-Lebanon, announced he would vote against the project because of the high cost of electricity to commercial and industrial consumers. McCarter, who represents a district adjacent to where the plant will be located, had campaigned throughout the fall saying he supported the plant.

* Tenaska bill falls short in Senate: Sponsoring Sen. Deanna Demuzio, D-Carlinville, used a parliamentary maneuver to keep the bill alive for another possible vote, but time is literally running out for the General Assembly to act.

* No state sanctions for late military ballots

* VIDEO: St. Clair County Clerk Bob Delaney testifies in Springfield about his county’s late military and overseas ballots.

* Navy Pier to be leased, run by not-for-profit: Reilly said McPier will provide seed money for renovations and deferred maintenance at the pier. He estimated about $50 million might be available.

* Lawsuit Loan Shark bill to be heard in committee Thursday

* Backroom deal on the Lawsuit Loan Shark bill?

* It can’t be fixed: Lawmakers have had 10 years to reflect — and act — on the failures of a system that sent at least 20 innocent men to death row. Illinois hasn’t executed an inmate since 1999, the year before then-Gov. George Ryan declared a moratorium that continues to this day.

  26 Comments      


Too painful to watch

Thursday, Jan 6, 2011 - Posted by Rich Miller

* I’ve said in the past that the law, not emotions, should decide whether George Ryan is released from prison. But it’s darned difficult to watch Lura Lynn Ryan’s possibly imminent death play out in front of my face without thinking that the former governor ought to be let out for a few hours to be by her side

An attorney for imprisoned former Illinois Gov. George Ryan says his wife, Lura Lynn Ryan, is hospitalized in intensive care, and doctors say she may have only hours to live.

Ryan attorney, former Gov. James Thompson, said that Ryan’s family has been called to Lura Lynn’s side.

“She was taken to the hospital this morning, placed in Intensive Care and she has developed sepsis, which is massive inflammation of the blood system that is sometimes the result of chemotherapy or radiation in treating cancer. She has multiple cancers and she was undergoing both radiation and chemotherapy despite her age and physical condition in sort of a desperate attempt to see her husband one more time,” Thompson told NBC Chicago.

He says an emergency motion has been filed in federal court to allow George Ryan to be released from prison so he can join his wife of 50 years.

Thompson said attorneys have also appealed to prison authorities to release Ryan under a program that enables inmates temporary leave to visit gravely ill family members.

More

A spokeswoman for the Bureau of Prisons said the prison warden in Terre Haute, Ind., where the former governor is being held, has the discretion to approve his release.

According to its website, bureau policy allows inmates to win a temporary release for several reasons, including a family member’s illness: “The bureau may authorize staff-escorted trips for purposes such as visiting a critically ill family member; attending a funeral; receiving medical treatment or participating in educational, religious, or work-related functions.”

“An inmate can make a bedside request to a warden,” said Traci Billingsley, a Bureau of Prisons spokeswoman.

Whether the warden approves or disapproves a request would not be made public, she said.

I don’t think it’s unreasonable to ask for a brief escorted visit to Mrs. Ryan’s bedside. We’re not talking about a permanent release here.

  55 Comments      


Can’t anybody play this game?

Thursday, Jan 6, 2011 - Posted by Rich Miller

* For reasons unknown to mere mortals, Carol Moseley Braun extended the media coverage of her initial refusal to release her tax returns by dribbling out a bit more information yesterday. And she actually plans to keep the story alive by releasing more information sometime today

Carol Moseley Braun on Wednesday released longer versions of her 2008 and 2009 tax returns, expanding on the two-page summaries she put online the day before.

Her disclosure brought her closer to matching two of her mayoral challengers: Rahm Emanuel and Gery Chico, each of whom has released five years’ worth of tax returns. Braun’s campaign indicated she plans to make her 2005, 2006 and 2007 returns available as soon as today.

This is just pure torture. Why would anybody operate this way?

* And then there was this

Newly released pages of her 2008 return show she claimed a loss of more than $120,000 for a public speaking business, CMB One Corp., even though she indicated a day earlier that her financial troubles stemmed from her organic food company. […]

The newly released documents indicated that $122,000 of those 2008 losses came from CMB One, her speaking enterprise, but a tax schedule that could offer more details was not provided by the campaign. […]

In the 2009 Schedule C disclosure about income related to “public speaking,” Braun reports income of $10,556 but a net loss of $6,322 after factoring in expenses that included more than $8,000 for use of her home.

However, in another part of the tax return, under Schedule E, she reports that CMB One, which she has listed in other public documents as her public speaking firm, actually lost $17,505. The return notes that the $17,000 loss is described in yet another document, Schedule K-1, but Braun did not release that document Wednesday.

So, she raised more questions than she answered with yesterday’s document dump. The mind boggles.

* Meanwhile, Braun held a press conference yesterday at the still bloody scene of a shooting and appeared to botch that as well

As to this particular shooting, however, Braun’s information was a bit suspect.

According to police, two boys were shot at the location, not three, and more importantly, nobody had died as a result, although one of them was said to be critically wounded. The medical examiner’s office confirmed it had not been notified of a death, so either Braun is really on the cutting edge of this murder statistic cover-up by police, or she got her facts wrong.

Her campaign never responded to my request for clarification as to the identity of the victim, which is one reason I strongly believe the latter explanation.

Mistakes happen. Even without a death, the blood alone was enough to convince anyone this was the scene of a serious crime.

What’s less easy to overlook is Braun’s reckless suggestion that crime statistics showing murder to be down are misleading.

* Oy

Everyone was in place at Carol Moseley Braun’s Jan. 4 LGBT meet-and-greet at Downtown Bar & Lounge ( including media figures from the print and television worlds ) —except the mayoral candidate herself.

However, she did make an appearance, of sorts. After some patrons waited more than two hours, event organizer Marc Loveless let attendees know that Braun would be unable to personally make the event ( apparently because of double-booking ) —but that he had her on the phone. He then put the phone up to the mic; unfortunately, the volume output was so low that only those closest to Loveless could hear what she said.

* I’m not sure I’ve ever heard a candidate bragging about being the “poorest candidate” before, but at least he had some spin

City Clerk Miguel del Valle today said he has raised about $150,000 in his run for Chicago mayor and argued that those who are raising more money are doing it by using political connections.

“I will be the poorest candidate. I want to announce that today,” del Valle said at an event where he was talking about helping small businesses grow if he’s elected mayor. “I will be the poorest candidate with the most to offer.”

Gery Chico, a former chief of staff to outgoing Mayor Richard Daley and ex-president of the Chicago Board of Education, earlier this week announced he had raised $2.5 million. Former White House Chief of Staff Rahm Emanuel is expected to announce later this month that he raised millions through the end of the year.

Del Valle took aim at the two, and Chico by name, saying they used their government connections to help themselves personally and with their fundraising. Chico’s recently released income tax returns show he’s made millions from his law firm that lobbies City Hall, while Emanuel made millions of dollars after leaving the Clinton White House.

* In other news, Rahm Emanuel’s latest idea looks quite familiar to somebody else

When city clerk hopeful Susana Mendoza heard Tuesday about mayoral candidate Rahm Emanuel‘s recent announcement, she said she was stunned and exclaimed: “Hey, that’s my idea.”

Barely two weeks after Mendoza proposed raising money for the cash-strapped city by selling ads on city vehicle stickers, Emanuel announced Tuesday he would raise money for after-school programs with “new ads on the city’s vehicle stickers, on garbage trucks and an other public venues, like farmers’ markets.”

Asked if she felt that Emanuel had stolen her idea, Mendoza replied, “That’s maybe how some folks would see it. I was surprised to see it in the paper as his idea.”

* And a bigtime Chicago concern is backing Emanuel

CBOE Holdings Inc., parent of the Chicago Board Options Exchange, is supporting Rahm Emanuel for mayor, said CEO Bill Brodsky, who also is personally supporting the candidate.

Mr. Emanuel was Chicago-based CBOE’s go-to member when he served in the House of Representatives and he understands the exchange’s business, Mr. Brodsky said at an annual lunch with reporters.

“I think there’s a real substantive basis for our support,” Mr. Brodsky said.

CBOE will provide unspecified financial support to Mr. Emanuel, as it has in the past for Mayor Daley, Mr. Brodsky said.

* Emanuel also has a new TV ad


* He’s up to $1.7 million so far

The campaign is shelling out about $700,000 on cable and broadcast spots that began airing Tuesday and will appear through at least Jan. 16. The commercial is the third in two months.

Emanuel spent about $800,000 on his first ad, which aired only on broadcast TV for one week in November. In December, his ads were only on cable, costing almost $200,000.

* Related…

* Face of City Has Changed Dramatically, Census Estimates Show: The city’s black population fell by about 11 percent between 2000 and 2009, a pattern reflected in many neighborhoods across the South and West Sides. Twenty-four of the 25 city-designated community areas with the largest black populations in 2000 saw declines, according to the analysis of the five-year population estimates for 2005-9… Estimates of the city’s overall white population increased only modestly because of large declines in their numbers on the Northwest and Southwest Sides. Meanwhile, Hispanics continued to supplant whites in the bungalow belt.

* Supporters not fazed by Braun money woes

* Emanuel residency case appealed

* What’s Next For The Festival Outsourcing Pitch

* Will politics kill Chicago’s TIF golden goose?

* Patricia Watkins TV Ad

* Better Government Association sues Chicago Police Department: The BGA, a not-for-profit corporation, claims the Chicago police refuses to release documents about the protection and transportation of Burke (14th) as requested in an Aug. 24, 2010, Freedom of Information Act request, according to the complaint filed in Cook County Circuit Court.

* Suit alleges police hold back info on alderman’s protection: The Chicago Police Department also said in its letter to the Better Government Association that it does not keep expense or travel records related to the security detail and referred the group to the alderman’s office for that information.

  24 Comments      


Protected: SUBSCRIBERS ONLY - Supplement to today’s edition

Thursday, Jan 6, 2011 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Thursday, Jan 6, 2011 - Posted by Rich Miller

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Today’s lessons

Wednesday, Jan 5, 2011 - Posted by Rich Miller

* The House Elections & Campaign Reform Committee held a hearing today to discuss the blowup this past fall over some county clerks mailing military absentee ballots late.

So, now seems to be a good time to publish an e-mail which was sent by Warren County Clerk Tina Conard in reply to a State Board of Elections e-mail in October notifying county clerks throughout the state that the Department of Justice and the attorney general’s office were investigating the matter and urging them to provide all information that they could.

Unfortunately for Clerk Conard, she hit “reply all,” so it’s been preserved for posterity…

We complied so I’m not too worried. But I would sure like to think that the DOJ has more important things to worry about than whether a soldier gets a ballot or not. But there’s one thing I think needs more attention if they are so hell bent on military getting ballots. GET US THE ADDRESS to send the ballot to!!! We had FVAOs from 2008 that we were told to use. Well in 4 years they could have moved on. Why is it my job to track these soldiers down?

I am sick and tired of catering to voters. Be a responsible adult to know: get us the information we will comply, know when to vote, how to vote and where to vote. Election officials shouldn’t have to have the DOJ or the AG breathing down our necks. If they’ve go that much time on their hands, then get out there and educate the voters.

Um, wow.

“I was probably just angry and venting,” Clerk Conard said when I called her today. “I apologize. I truly believe everybody has the right to vote. I wish every citizen would get out and vote.”

Soldiers, she said, “move so often that we don’t know where to send their ballots to. So I just think that there needs to be a better way to get a correct and current address to us.”

She also added: “I’ve not done one election since 2002 the same way because they keep changing the laws… Every election, it changes.”

The lesson: Take a deep breath and maybe a few moments before hitting the “send” button.

* The Champaign News Gazette’s latest editorial criticizes House Speaker Madigan’s proposed constitutional amendment to cap annual state spending increases to the average level of per capita income increases over the past five years

Then, there is the matter of how the amendment is drafted. Does it really do what it purports to do?

Not according to the Illinois Policy Institute, a market-oriented political think tank.

Has she been allowed to testify at a Monday hearing, the IPI’s Karen Rasmussen would have pointed out that the amendment, even if passed in fall 2012, would not take effect until 2014, creating a four-year window in which spending could rise significantly.

Further, she said, the amendment would exempt $4 billion in mandated spending on public employee pension programs, creating another hole for more spending. Then, there is a provision allowing the governor, the comptroller, treasurer and state legislators to declare an emergency that would allow them to ignore the amendment’s requirements.

“(The amendment) is more akin to a blank check,” said Rasmussen.

Oh, please. Look, there are some loopholes in this thing. Special funds, for instance, don’t appear to be capped. And Ms. Rasmussen definitely should’ve been allowed to testify. But the editorial is just hokum on many levels.

The reason the effective date is the beginning of Fiscal Year 2014 is because FY14 is the first full fiscal year after the 2012 election, when the proposal would be voted on by the electorate. So, no great conspiracy there. Sheesh.

Pensions aren’t included because, I’m assuming, there’s another constitutional provision requiring the state to fulfill its contractual pension obligations. If you included pensions in the cap, their annual increases could force huge cuts to other programs. This is definitely a debatable point, but I wonder if the paper would agree to cuts in the U of I’s funding in order to make pension payments.

And that work-around provision derided by the IPI and the News-Gazette isn’t really a loophole. The governor declares an emergency. Then, both the comptroller and the treasurer have to agree there is an emergency. Then both chambers of the General Assembly can increase spending above the cap, but only with a three-fifths super-majority in each chamber. That ain’t really a loophole. And it’s certainly no “blank check.”

Also, this is from the IPI itself

Had this limit been in place from fiscal years 1997 to 2009, Illinois would have saved a cumulative $29.4 billion over actual general spending.

It would save billions, we’d be almost $2 billion in the black right now if it had been in place, yet this proposal is, according to the IPI, a sham. Yeah. OK. What a crock.

The lesson: The IPI has essentially become an arm of the Illinois House Republican caucus, which has an interest in undermining anything the majority party proposes. Be wary of quoting them.

* A bill seemingly being fast-tracked by the Illinois General Assembly would add a new tax

Beginning July 1, 2011, a retailer having a contract with a person located in this State under which the person, for a commission or other consideration based upon the sale of tangible personal property by the retailer, directly or indirectly refers potential customers to the retailer by a link on the person’s Internet website.

This is widely known as the Amazon Tax. Supporters include the state’s retail merchants. They claim it will raise $150 million a year in revenues. But the Tax Foundation begs to differ

Word is that Illinois legislators are considering click-through nexus, also known as an “Amazon tax,” pushed by revenue officials who claim that it would raise $150 million a year in revenue. Such laws, nicknamed after their most visible target, require retailers that have contracts with “affiliates”-independent persons within the state who post a link to an out-of-state business on their website and get a share of revenues from the out-of-state business-to collect the state’s sales tax. They exist in New York, Rhode Island, North Carolina, and Colorado. […]

Illinois’s version is a traditional first-generation “Amazon” tax that targets affiliates. Contrary to the claims of supporters, Amazon taxes do not provide easy revenue. In fact, the nation’s first few Amazon taxes have not produced any revenue at all, and there is some evidence of lost revenue. For instance, Rhode Island has seen no additional sales tax revenue from its Amazon tax, and because Amazon reacted by discontinuing its affiliate program, Rhode Islanders are earning less income and paying less income tax. There’s no reason why Illinois wouldn’t suffer the same fate.

The lesson: Don’t count your chickens, etc.

…Adding… The Better Government Association is throwing an “election watch” party next month. The shindig is being held at the Chicago offices of the Jenner & Block law firm. The firm lobbies the Statehouse for Midwest Gaming & Entertainment, LLC, which owns the Des Plaines casino.

The lesson: There’s nothing wrong with this at all. The firm has a solid reputation. But reformers are often quick to point out these one degree of separation appearances of conflicts of interest, so a quick background check is usually in order.

  32 Comments      


Vote YES on SB 2485 and the Taylorville Energy Center

Wednesday, Jan 5, 2011 - Posted by Capitol Fax Blog Advertising Department

[The following is a paid advertisement.]

“We hope lawmakers see through the hyperbolic spin against this project and vote to bring jobs to central Illinois and put Illinois among the leaders in clean-coal technology.”

Taylorville means jobs

    • Nearly 10 million labor hours needed to build plant - resulting in almost 2,500 construction jobs at peak
    • TEC will create 16,000 direct and indirect jobs during each of the four years of construction and 1,215 direct and indirect permanent jobs - U of I / Illinois Chamber study
    • “Clean coal development produces significant energy, jobs, economic development and significant, long-term positive economic impact on the state” - U of I / Illinois Chamber study

Taylorville protects ratepayers

    • Residential and small business customer rate impact capped at 2.015%
    • No cost to ratepayers before 2015, when TEC comes online
    • 2/3 of possible cost overruns paid for by project developer

Taylorville safeguards the environment

    • Emissions comparable to natural gas generation
    • Net reduction of nearly 2 million tons of CO2, and 11,600 tons of SO2 and NOX annually leading to $181 million – $437 million in annual health care savings
    • Dry cooling design cuts water needed by 70% - no fresh water used for cooling

Taylorville supported by leading consumer advocates and working people

    • Attorney General Madigan
    • Citizens Utility Board (CUB)
    • Illinois Power Agency
    • AFL-CIO

Learn the facts: cleancoalillinois.com

  Comments Off      


Question of the day

Wednesday, Jan 5, 2011 - Posted by Rich Miller

* From a press release…

Governor Pat Quinn [yesterday] announced that Mica Matsoff will join the Governor’s Office as the new director of communications. She will work closely with the Governor and senior-level staff as the Quinn Administration begins a new term of office. […]

As director of communications, Matsoff will be a key advisor to Governor Quinn, planning and overseeing the execution of the administration’s internal and external communications. She will work closely with senior members of the Governor’s staff and cabinet as they develop policies that impact the people of Illinois. […]

Previously Matsoff worked as the director of communications at Quinn for Illinois where she managed all press operations. She also served as the director of public relations for Chicago 2016, Chicago’s Olympic and Paralympic Games bid. She returns to state government after previously working as a spokesperson for the Departments of Commerce and Economic Opportunity (DCEO) and Employment Security. Prior to that, she spent several years at the public relations firm Edelman.

Matsoff replaces Ashley Cross, who is moving over to Illinois Department of Juvenile Justice as its new chief of staff.

* The Question: Advice for Mica?

Snark is OK, but try not to be mean. Thanks.

  32 Comments      


Braun apparently needs a steady job

Wednesday, Jan 5, 2011 - Posted by Rich Miller

* Mark Brown put it best

Now that former Sen. Carol Moseley Braun has changed her mind and released her federal income tax returns Tuesday, we not only have a clearer understanding of why she wanted to put it off until after the mayoral election but also what may have motivated her to come out of political retirement in the first place.

Simply put, it looks like she needs a job, and these tax returns aren’t going to help her get one on the 5th Floor of City Hall.

Following in the footsteps of Bill Brady and Alexi Giannoulias, Braun neither paid nor owed any federal income taxes for either 2008 or 2009, her returns show.

* The details are scant, but the numbers ain’t good

Braun did not release schedules or statements to go along with her 1040 forms, so it is difficult to discern many details about her financial situation.

But her 2008 federal income tax return shows she lost more than $225,000 that year, including more than $200,000 in what she called a “net operating loss,” though the source of the loss was not identified. Braun, a former U.S. Senator, state legislator and county recorder of deeds, claimed no wages in 2009.

The $15,954 she claimed as net income in 2009 appeared to be derived largely from public pensions from her former public positions.

* And the campaign wasn’t providing a whole lot of answers

Braun aides referred questions about her taxes to attorney Louis Vitullo, a Braun friend and campaign volunteer.

Vitullo said he wasn’t prepared to answer many questions posed by the Chicago Sun-Times — including how Braun was able to borrow money in 2008 in the face of apparent financial distress — but said he would seek answers in the coming days.

“We’re pursuing any questions you have,” Vitullo said.

* I’ve heard that CMB writes some of her own press releases, which could explain the typo

In her news release, Braun portrayed herself as an everyday Chicagoan fighting to keep her business afloat and took a shot at two of her opponents, former White House Chief of Staff Rahm Emanuel and former Chicago School Board President Gery Chico.

“The reality is that unlike Mr. Emmanuel [sic] and Mr. Chico, who traded on their government relations for vast riches when they left office, I did not,” Braun said. “My tax returns are one measure of the fight I have waged to keep my business running. It is not unlike what many small business owners and regular Chicago families are going through.”

* Back to Mark Brown for this pithy remark about Braun’s blast at her rivals

That’s a fair point for her to make, except there is some question in my mind about how much influence on which she had to trade.

Heh.

* This isn’t the first time that Braun has found herself in hot water over her income taxes. Eric Zorn has posted an extensive archive. Go check it out

October 15, 1992: Democratic U.S. Senate nominee Carol Moseley Braun has refused to release copies of her 1988 income tax return, seven weeks after saying she would do so to prove that she was not paid for work as a lobbyist. Braun had promised to divulge her income sources for 1988 after denying an assertion by her Republican opponent, Richard Williamson, that she did lobbying work while in public office….”I have never lobbied for anybody, and my tax returns will show that I never earned $40,000 a year for any clients outside of” those she listed, Braun told reporters on Sept. 2. She said then that she would provide copies of her tax returns for 1988 and 1989. But Tuesday, Braun said a copy of the 1988 return would not be forthcoming. She previously released copies of what she said were her income tax returns for 1989 through 1991. “You’ve got more of mine than you do of my opponent’s. That’s all you’re going to get,” Braun said. Williamson, however, has released copies of what he said were his returns for 1988 through 1991.(Tribune)

* Meanwhile, Gery Chico’s rhetoric appears sound, but his plan is a bit on the thin side

Calling City Hall the “number one impediment to job growth,” mayoral challenger Gery Chico unveiled a comprehensive plan Tuesday to “break down the bureaucratic wall” and attract the businesses and jobs Chicago so desperately needs.

The cornerstone of Chico’s plan is the appointment of a deputy mayor for business development and job creation who would preside over a “jobs cabinet” comprised of business, labor and academic leaders.

The deputy mayor would be singularly responsible for developing short- and long-term strategies for creating jobs, restructuring city departments and reducing taxes, fees and paperwork that serve as a disincentive to business. It would start with repeal of the $4-a-month-per-employee head tax despised by business.

“I’ve heard from way too many businesses that have tried to locate or expand in the city. All they tell you is their frustrating stories of having to deal with the maze of costly rules and regulations. In many cases, they simply don’t go forward. That means we lose jobs,” said Chico, whose first city job was in the Department of Planning.

No argument about the city being too much in the face of business, but how about coming up with a quick list of the problematic rules, paperwork, etc. that he wants to get rid of?

* And Carol Marin wondered aloud today about an attorney working for Burt Odelson, who is attempting to kick Rahm Emanuel off the ballot

Even more interesting, though, was one of the attorneys assisting Odelson. His name is Tom Jaconetty, a $135,000 top aide to recently elected Cook County Assessor Joe Berrios.

Berrios also happens to be the chairman of the Cook County Democratic Party.

So should we assume that Berrios and the party are against Emanuel? That might be a good guess, since Berrios believes Emanuel was quietly backing his November opponent, Forrest Claypool. […]

Who is paying Jaconetty’s fee to dump Emanuel? “We haven’t really discussed it,” responded Jaconetty with a smile.

Weird, that. Madigan’s guy Mike Kasper is working for Emanuel and Berrios’ guy is working for Odelson.

* Related…

* No accounting for Braun’s bungling on the issue of her tax returns

* Lone bid for Taste of Chicago not going down well

* Alderman calls for hearings on $20 Taste of Chicago admission fee

* Report questions spending by former school board chiefs

* Man Gets Ticketed While Paying For Parking

* Preckwinkle removes Turner as head of job training program

  31 Comments      


Battle intensifies over abolishing death penalty

Wednesday, Jan 5, 2011 - Posted by Rich Miller

* A group of state’s attorneys and victims’ families held a press conference yesterday to plead with the General Assembly not to abolish the death penalty. A vote could be taken today or tomorrow in the House

Sheldon Sobol, Grundy County state’s attorney and president of the Illinois State’s Attorneys Association, said that the legislation was rushed through committee and that victims didn’t get a chance to be heard by lawmakers.

“When this bill is taken by the Legislature, they have not heard from the most important people that are impacted by this decision,” said Sobol.

Jamie Boyd, Kankakee County state’s attorney, who also has served on an Illinois Supreme Court committee on capital cases, said legislators have based their decision on saving money as the state faces a budget deficit of at least $13 billion.

“[Let’s] talk about the cost of the 18 murders that don’t occur every time someone is executed because we have the death penalty. Those are costs we’re saving,” said Boyd.

More

Steve Ferguson, Coles County state’s attorney, said certain heinous crimes “cry out” for the death penalty.

“I’ve had any other number of other murder cases that I’ve tried that I’ve not sought the death penalty,” he said. “They did not cry out for it. There are certain offenses that are just beyond the pale that the death penalty is the right verdict to pursue and the right verdict to render.”

More

The ban on executions remains in place today, though defendants are still being tried and sentenced to death. With the slow pace of capital cases in the system, just 15 men are awaiting execution in Illinois today, with no certainty about when or whether those sentences will be carried out.

Among them is Daniel Ramsey, who killed two girls in 1996, including the 12-year-old sister of his girlfriend. He shot her as she lay on a couch, begging for her life.

“Does he deserve to live? Not in my opinion,” said the victim’s father, Bill Sloop, 56, of Ferris, Ill. “The only true justice in this case is his death.”

Sloop and his wife, Barb, joined a coalition of state’s attorneys, prosecutors and victims’ families in the state Capitol Tuesday to plead for the General Assembly to slow down. Death-penalty proponents maintain that it’s unclear whether the death penalty creates a financial drain on the state because of the extra time and legal costs involved, as anti-death-penalty activists claim, and that some studies suggest it does in fact deter crime.

* The Senate sponsor responded

State Sen. Kwame Raoul, D-Chicago, Senate sponsor of the bill, disagreed that the debate had been rushed. “The committees and the studies have been taking place over the last 10 years,” he said.

He also expressed concern about the possibility of wrongful convictions.

“Law enforcement departments and prosecutors’ offices are made up of human beings, and human beings make errors, especially when there’s immense pressure on them to solve a crime,” Raoul said.

Raoul added

Critics of the push to abolish the death penalty argue the effort is being rushed.

But Sen. Kwame Raoul, a Chicago Democrat, said supporters of ending the death penalty have to act when they have the support.

“I think when you have momentum, you need to seize that momentum,” Raoul said.

Others spoke up as well

Jeremy Schroeder, executive director of the Illinois Coalition to Abolish the Death Penalty, said not all victims feel the same way.

“There’s no wrong way to feel when a family experiences tragedy, such as these families have,” Schroeder said.

More

“The state shouldn’t be in the business of killing its citizens. I mean they just absolutely, positively should not be doing that,” said Rep. Karen Yarbrough, D-Proviso Township, Ill.

Thoughts?

  43 Comments      


Tax hike outline emerges - Madigan lashes out at critics

Wednesday, Jan 5, 2011 - Posted by Rich Miller

* Keep in mind that nothing is set in stone yet. Here’s the Sun-Times’ take on what’s going on

Gov. Quinn and the two Democratic legislative leaders honed in on a potential tax-hike deal Tuesday that could raise the state’s share of workers’ paychecks to as much as 5 percent, a 66 percent jump.

Multiple options remained on the table and nothing had been finalized, but Quinn administration sources held out hope a tax-increase pact with House Speaker Michael Madigan (D-Chicago) and Senate President John Cullerton (D-Chicago) could be struck as soon as today.

Among the proposals discussed during two rounds of closed-door meetings between the three Democrats were increasing the individual income tax rate from 3 percent to 5 percent or increasing it by as little as one half of a percentage point. In both cases, the leaders were contemplating making at least part of the increases temporary, sources said.

Publicly, no one in the talks would divulge specifics on a tax plan, though Cullerton late Tuesday characterized both tax-hike scenarios as “pretty accurate.”

* And that’s not all

The governor also is floating the idea of borrowing approximately $14 billion, to be repaid over 14 years, largely to catch up on a backlog of unpaid bills, fully fund state worker pensions this budget year and help pay the costs for next year, a key lawmaker said. The borrowing would be repaid by raising the income tax rate by a quarter- or half-percentage point, above any other tax hike lawmakers might approve.

* Tribune

But internal polling of Madigan’s House Democrats showed significant support for a temporary 1-percentage-point increase in the state’s 3 percent personal income tax rate, with some arguing the hike would be too small to fix Illinois’ long-term budget imbalance, said a source familiar with the vote-counting effort who was not authorized to speak publicly. […]

One factor that could hurt Democratic support is Quinn’s reluctance to agree to limit state spending at current-year levels or lower. A spending cap has been a condition for some downstate Democrats to back an income tax hike.

It’s not an argument, it’s true. If they don’t make big cuts, a one-point hike ain’t enough.

* Rep. Joe Lyons hit the nail on the head

“It’s political suicide for a lot of people, and we all know that, but the right thing has to be done here,” Lyons said. “Being popular isn’t always right. Being right isn’t always popular. The old cliche is so applicable toward this thing. It’s sad.”

* Meanwhile, House Speaker Michael Madigan advanced his latest constitutional amendment yesterday

A state constitutional amendment aimed at making it harder to sweeten public employee pensions moved to the floor of the Illinois House Tuesday, but its sponsor, House Speaker Michael Madigan, couldn’t answer key questions about the measure.

If approved by voters, the amendment would require three-fifths votes by legislators to increase pension benefits for employees of state and local governments and school districts. Such changes now take only majority approval.

The bill passed out of the House Personnel and Pensions Committee on a 7-3, party-line vote with all Republicans, including Reps. Raymond Poe, R-Springfield, and Rich Brauer, R-Petersburg, voting “no.”

The two Republicans listed, it should be noted, have a whole lot of state employees in their districts.

* Madigan also took a shot at interest group types who oppose what he’s been doing lately

Lawmakers last spring and last month approved slimmed-down pension benefits for new teachers, state university employees, state workers, judges, legislators, firefighters and police officers. But Madigan said he’s worked on his proposal for the past two years so the sins of the past aren’t repeated – especially after he’s left the Legislature.

“Certain representatives of those organizations have been telling people in casual conversations ‘We’re just going to wait it out until Madigan’ s out of there, and then we’re going to run bills to repeal all of it.’ That’s their attitude, and that’s what you’re looking at going forward,” he said. “And so this is designed to raise the bar. And simply say, ‘Look we now know, given the fiscal condition of the state pension systems and the local systems, that this is an extraordinary situation. This is not something that should be handled in the ordinary course. There ought to be a high bar to move these bills.”

* Madigan video


* Roundup…

* Charlie Wheeler: Lawmakers had a productive two-year session

* Hynes will lead consulting office after he exits as comptroller - Firm offers guidance on public pensions, health benefit plans

* Redistricting tweaks head to the governor

* State lawmakers sign off on redistricting roadmap

* 10-year redistricting plan heads to Ill. governor

* Democrats crafting tax increase proposal that includes spending restraints; GOP not impressed so far

* Dem leaders talk tax hike

* Lame-duck lawmakers will help decide key issues

* State considers upping cigarette tax $1 a pack to raise $377 million

* Pension borrowing a step closer to a reality

* Casino Could Become Reality in Rockford

* More gambling not the answer to state’s financial woes

* State law gives Evanston officials more time to pay pension debt

  48 Comments      


State launches investigation of shocking Menard prison claims

Wednesday, Jan 5, 2011 - Posted by Rich Miller

* State insurance fraud investigators are now looking at Menard Correctional Center, where over half the state prison’s employees have filed workers compensation claims since January 1, 2008. The Belleville News-Democrat broke this astonishing story, and here’s their latest installment

The investigation by the Illinois Department of Insurance follows news articles in the Belleville News-Democrat, which reported that since Jan. 1, 2008, at least $10 million in awards and payment for medical leave has been made in about 225 settled cases.

A total of 389 guards and other workers have filed more than 500 claims, including about 290 still pending. About 230 of these claimed injury for the underlying cause of “repetitive trauma,” including carpal tunnel syndrome, an injury of the wrist. The prison employs about 760 workers, of which 567 are guards.

230 cases of carpal tunnel syndrome? That’s crazy. And check this out

Fairview Heights attorney Thomas Rich, whose office has handled a majority of the prison’s compensation claims since 2008, said that a check of his own records showed that an overwhelming proportion of repetitive trauma claims by state workers were approved without opposition.

A cynic might say word got around that the state was handing out free money and everybody jumped in line. It’s just crazy that the attorney general’s office allowed this to happen. But the gravy train appears to be over

However, Rich said the approval rate has reversed since the legislature held recent hearings on reforming the workers’ compensation law and since the New-Democrat’s articles about repetitive trauma claims from Menard began this month.

“Now that the legislature has gone into session to ostensibly change the workers’ comp law, and now that the articles have appeared in the paper, ” he said, “The people who have been approving 19 out of 20 of these claims are having people look over their work and are now denying all repetitive (state worker) trauma claims … Now all anyone can do is go before a judge (arbitrator) and let it rip.”

* The cost

* $5.9 million was awarded in settled claims where a prison employee, usually a guard, claimed injury due to repetitive trauma due to working manual locking systems and keys or other repetitive duties.

* $2.2 million was awarded because of accidents like falling and injuries due to overexertion.

* $1.6 million was paid to workers recuperating from injury.

* The paper’s recent editorial also made a good point

Another factor is the “not our problem” attitude at the Department of Corrections. More than half of a prison’s workers are claiming work-related injuries, and the department’s response is that it doesn’t process the workers’ comp claims. Well, it does supervise these workers. With so many of them claiming work-related injuries, shouldn’t there be a review of working conditions? The spokeswoman said she wasn’t aware of any such plans.

Amazing.

  29 Comments      


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Wednesday, Jan 5, 2011 - Posted by Rich Miller

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