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Liability drops, costs to rise

Monday, Nov 4, 2013 - Posted by Rich Miller

* A tiny bit of good news

According to a new report out today by Moody’s Investors Service, the “adjusted net pension liability” in the state’s five retirement systems dropped 9 percent, or $16.5 billion, to “only” $173 billion, in the year ended June 30. Adjusted net pension liability is a form of unfunded liability. Moody’s defines this differently than other ratings agencies, reflecting what it views as overly optimistic assumptions by pension fund managers.

The New York bond rater attributed the 9 percent decline to two factors: The pension funds earned 12.9 percent on their investments, exceeding their assumed 7.9 percent annual return, and interest rates rose, narrowing the spread between what the state expects to earn on pension investments in the future and what Moody’s believes will be earned.

* But, of course, this being Illinois there’s always bad news

On a three-year average basis, Illinois’ adjusted net pension liability actually rose 7.2 percent, to $165.8 billion, Moody’s said. And Illinois still has a ratio of pension liabilities to revenues of 241 percent, compared with a 50-state median of 45 percent.

As a result, without reform the share of the state’s general (operating) funds that will have to go to pay pension costs will rise from 22 percent in fiscal 2013 to 24 percent in 2014 and potentially 26 percent in 2015, it said.

That 26 percent figure is based on the partial expiration of the tax hike midway through FY 2015.

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Protected: *** UPDATED x4 *** SUBSCRIBERS ONLY - Tonight’s events

Monday, Nov 4, 2013 - Posted by Rich Miller

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Question of the day

Monday, Nov 4, 2013 - Posted by Rich Miller

* Sen. Bill Brady talked about his lackluster fundraising with WJBC

Brady raised about $66,000 during the three-month period that ended Sept. 30 and had about $273,000 on hand based on filings with the Illinois State Board of Elections.

Brady says he has grassroots support, which he says is more important than money.

“We really haven’t been as aggressive as we would like to have been in terms of raising money, I need a little more distance. When you’ve asked people and you’ve raised $20 million just two or three years ago, you need a little distance,” Brady said.

Brady says after a costly campaign for governor three years ago, some donors are a bit fatigued and need time before they’ll give again.

“I raised $20 million in the last election for governor. I think there are a lot of people whose pocketbook was fatigued when giving to Bill Brady, but they are coming along. We will raise enough money, we’ve always been outspent though,” Brady said.

* The Question: Is donor fatigue a plausible explanation for Bill Brady’s lack of campaign funds? Take the poll and then make sure to explain your answer in comments, please.


survey solutions

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*** UPDATED x1 *** Topinka aide says Andrzejewski attempting to “soak the taxpayers”

Monday, Nov 4, 2013 - Posted by Rich Miller

* Adam Andrzejewski’s “Open the Books” organization sent out an e-mail this morning entitled “We Sued. Taxpayers Won”…

This is a watershed moment in our fight for transparent government. In a Cook County court room, during ten months of legal wrangling, we’ve shown:

    1. Citizens own the State of Illinois checkbook spending information;
    2. The Comptroller has a constitutional duty to provide this data on request;
    3. The Comptroller has a duty under Freedom of Information Act to fulfill requests;
    4. Citizens can request the state checkbook from the Comptroller, from 1996 forward.

For the first time in state history, all public State of Illinois checkbook payments since 1996 will soon be online at OpenTheBooks.com. Turns out, “three days of work” wasn’t an “undue burden.”

Our suit forced the IL Comptroller to finally comply with the law. It shouldn’t have taken 18 months and a lawsuit. At OpenTheBooks.com, 40 of the 50 state checkbooks are already posted online.

“We aren’t asking the Comptroller to lead the charge on openness and accountability - only to follow the law.” January 8, 2013 Press Conference

Illinois Freedom of Information law has an enforcement provision that allows for return of reasonable legal fees. Through our attorney, Michael Lotus of Howard Law Firm, our demand for return of our $45,000 (so far) in legal costs is not negotiable. Non-payment would have a chilling effect on future citizen lawsuits of equal importance to rectify instances of trampled rights.

In these hyper-partisan times, Comptroller Judy Baar-Topinka (R) and Attorney General Lisa Madigan (D) found common ground attempting to hide the state checkbook from taxpayers- a position that pitted them against us all.

The taxpayer’s won. Pay up, Judy- and let’s move on. [Emphasis in original]

But, wait. Didn’t Andrzejewski’s group get this info months ago?

* So, I followed up with Andrzejewski. His reply…

We took our time in broadcasting the latest to give the Comptroller opportunity to settle this case. Topinka didn’t seize the opportunity to wrap it up. We are still assessing whether she’s turned over all public information and didn’t withhold or redact too much.

We are serious about driving a judgment and fully enforcing FOIA with return of our legal fees.

Ah, legal fees.

* The comptroller’s spokesman responded…

That “news release” is from left field.

He has the same information that he’s had all along and we haven’t lost a single motion in Court.

I’m not sure how that’s a victory for him, but if it means he is dropping his frivolous lawsuit, so be it.

It sounds like now all that’s left is his absurd attempt to soak taxpayers for his legal fees.

*** UPDATE *** Andrzejewski’s full response to Comptroller Topinka…

We were disappointed to see the response by the Comptroller to our announcement today. Here are some details to set the record straight.

Eighteen months ago we requested the State’s checkbook for 2011 under the Freedom of Information Act. How the taxpayers’ money is spent is a matter of the highest possible public interest. The Comptroller has a duty to the public to make that information available.

The Comptroller responded that it would take “three days” of work to produce these records, and that this was “an undue burden.” After repeated further requests, we were finally forced to bring a lawsuit to get the State’s checkbook. Here’s our complaint: http://forthegoodofillinois.org/wp-content/uploads/20130104-Complaint-by-For-The-Good-Of-Illinois.pdf

The Comptroller, represented by the Attorney General’s office, filed a motion to dismiss our complaint. They argued, among other things, that the State’s outdated computer systems couldn’t remove confidential information from the public spending record. Our response to the Comptroller’s motion is here: http://forthegoodofillinois.org/wp-content/uploads/20130408-Plaintiffs-Motion-For-Relief-Pursuant-To-IL-Rule-191b-1.pdf

We also filed a motion to take discovery, to get information to respond to the Comptroller’s motion to dismiss. The Court granted that motion, and we served written requests for information on the Comptroller. To be clear, we won that motion and the Comptroller lost it.

When the Comptroller saw our detailed, written requests for information, their office finally agreed to provide the information it should have given us from the beginning. The information we forced the Comptroller to disclose was not previously available to the public. For example, we now have itemized payments, which the Comptroller had not produced before.

The Comptroller also stated that it had now written computer code that will allow it to remove confidential information and produce its other spending records. The Comptroller can no longer refuse to produce its entire checkbook by claiming that there are confidential records in it. Our effort in this case has conferred a benefit on everyone who wants to know where the public’s money is going in Illinois.

The Freedom of Information Act provides for attorney’s fees. There is a good reason for this. Citizens of Illinois should not have to fight a legal battle, and spend their own money, to get public records showing how their tax money is spent. Otherwise, the State could withhold public information with little chance that ordinary citizens could ever force that information to be disclosed. This is an important case which we brought on behalf of all Illinois citizens. Seeking our fees is exactly what the Freedom of Information Act provides for.

We are proud of the success we have already had in this case, on behalf of the citizens of Illinois, and we look forward to bringing this case to a conclusion.

  37 Comments      


Checkbook cred

Monday, Nov 4, 2013 - Posted by Rich Miller

* Bruce Rauner talks about his conservative credentials

“I’ve been a passionate free market conservative my whole life. I believe in limited government, low taxes and individual liberty, personal responsibility. The reason we are the most prosperous nation in the world in history is because of free market capitalism. I’ve built dozens of successful companies. I’m all about economic freedom as well as economic liberty.

“I’m a huge donor to the Americans for Prosperity, this group, but also Cato Institute, Club for Growth, Illinois Policy Institute, Heartland Institute.”

He didn’t mention his “huge” contributions to Democrats, but I suppose that wouldn’t add to his conservative cred.

* Meanwhile, Rauner’s name popped up
in a rather odd story a new book about the 2012 presidential campaign

On May 10, 2012, a woman dropped by the Evanston office of Pete Giangreco, a Democratic strategist advising the Obama campaign. The anonymous brunette passed along to one of Giangreco’s staffers a GOP consultant’s proposal to resurrect Jeremiah Wright as a campaign issue—remarkably just hours after it was pitched during a meeting at the Wilmette home of Todd Ricketts, whose SuperPac was poised to spend millions to defeat President Barack Obama.

Giangreco read the presentation and that same day raced the proposal over to the Obama re-election headquarters in the Prudential Building, handing it over to Obama campaign manager Jim Messina. Messina quickly put together a conference call which included Obama strategist David Axelrod. They wanted to leak the proposal about Obama’s former pastor to the press. And on May 17, The New York Times trumpeted the scoop on the front page. […]

After the meeting at Todd Ricketts home was finished, Fred Davis, the GOP consultant pushing to revive Wright, headed over to Evanston for lunch with Bruce Rauner, at the time mulling a GOP bid for Illinois governor and now in the 2014 contest. That lunch was a block from Giangreco’s office. […]

Todd and his brother Pete were at the meeting along with Brian Baker, the Ending Spending President. Joe Ricketts was not there, according to the book. Baker “thought the singular focus on Wright was a big mistake.” Tom Ricketts “was negotiating with City Hall for financial help in rebuilding Wrigley Field. ‘This will cause a massive problem for your brother, and for the team, Baker said. This will not go over well in Chicago.”

Baker—who drove Davis to Evanston for his lunch date with Rauner—said to Davis in the car “he was nervous about what the Romney camp would think of a Wright-centric super-Pac effort.”

Elements on the far right really wanted to use the Wright stuff against Obama again last year. They tend to lean toward the tinfoil hat spectrum, so I can only imagine what they’ll make of this.

  38 Comments      


The grownup is not behaving like one

Monday, Nov 4, 2013 - Posted by Rich Miller

* My weekly syndicated newspaper column

The rich irony of Illinois House Speaker Michael Madigan denouncing somebody else for attempting to be a “kingmaker” is so obvious and laughable that I can’t help but wonder why a guy who’s been a take no prisoners kingmaker himself for so long in this state would ever think of saying such a thing.
 
You may already know the story. The Better Government Association and the Chicago Sun-Times took a look at some of Madigan’s campaign petition passers to see if they had government jobs. 

What they found wasn’t surprising at all.  Seventeen of thirty people who passed Madigan’s nominating petitions worked for the government. Another 12 had at one time worked for the government.

Power tends to feed off itself.  The longer you’re around, the more power you tend to have, and the more power you have, the more you can get. And Madigan has been around Illinois and Chicago politics forever. He is at the top of the heap as far as state government power goes. 

Ideologically, Madigan has moved with the times.  He favors both medical marijuana and gay marriage, for example. 
 
Politically, the man is anything but post-modern.  He’s the 13th Ward Democratic Committeeman, and he runs his ward like it’s been run for a century or more. 

Running an old-time organization, however, requires old-style patronage, and Madigan is a master at finding jobs for his precinct workers.

A good case in point is Patrick Ward, a Madigan precinct worker.  Ward was already drawing a public pension while working at Metra, but he wanted a raise and hadn’t received one, so he asked his sponsor for help.  Madigan made a couple of calls, then backed off when the man who ran Metra objected to political interference.  That guy eventually resigned with a golden parachute and a vow of silence.  But when the media got wind of it all heck broke loose and all fingers pointed to Madigan.

The Sun-Times and the Better Government Association’s investigation team took a look at Madigan’s most recent nominating petitions, noticed Ward was a circulator then took a look at the other names.

The BGA sent people door to door to talk to the other circulators and see if they were the same folks who popped up on their government employee searches.  Some of those precinct workers alleged that they and their families were harassed, and Madigan got angry.

So, Madigan unleashed a diatribe against the BGA and its leader Andy Shaw for being on “an unrelenting journey to become a kingmaker in Illinois politics.”

Madigan is fiercely protective of the loyal members of his 13th Ward organization, who are almost like family to him.

A statement simply denouncing the BGA’s tactics would’ve been reasonable, although still ironic considering how personally aggressive and “unrelenting” Madigan’s House campaigns can be.

And some of the BGA’s political motivations and top contributors are also fair game.  The group preaches political cleanliness, yet it doesn’t always associate with the cleanest of the clean.

But all Madigan did with that “kingmaker” comment was turn the BGA’s Shaw into a folk hero and help Shaw raise lots more money. You’d think Madigan would comprehend the public consequences of such an over the top claim.

Word going around is that Madigan may also be trying to head off another ongoing BGA probe.  But all he may have done was whet the group’s appetite.

The Speaker has really been off his game the past several months. He literally ran away and hid from Chicago reporter Chuck Goudie a few months ago, which resulted in a humiliating story on the Chicago media market’s most-watched TV station.

He publicly tossed his own daughter under the bus after she blamed his resistance to retirement for her decision not to run for governor.

And Madigan insulted Senate President Cullerton last May by telling a Sun-Times reporter that Cullerton displayed a “lack of leadership” on pension reform.

Partly due to his daughter’s aborted gubernatorial bid and partly due to the Metra “scandal,” polling has shown that the public’s awareness of Madigan has grown this year. And the public definitely doesn’t like the guy. So, he’s only hurting himself and his members with stunts like this BGA attack.

Madigan is valued at the Statehouse for being the most grown up of the grownups. But he’s simply not acting that way of late.
 

Thoughts?

  34 Comments      


Leaders make pension “progress,” but no vote yet

Monday, Nov 4, 2013 - Posted by Rich Miller

* I told subscribers about this last week, on Friday and filled them in on some details today. Gatehouse had a story up today which was essentially the same stuff I told subscribers last week. The four legislative leaders have been meeting to discuss pension reform and are making progress. But that doesn’t mean a vote will happen this week

“I’ve been directed to say there is good progress,” Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said afterward. “There are some different elements of a reform bill that the leaders agreed to send off to the pension systems to score.”

Brown would not elaborate. […]

“He has been engaged in constructive conversations with all legislative leaders over the last week,” said Cullerton spokeswoman Rikeesha Phelon. “It’s clear that the other leaders consider $138 billion to be the baseline for saving. With that in mind, Cullerton is working with the leaders to identify a fair way to increase those savings. The progress is good, but new ideas are still being considered and scored.”

In the past, it has taken more than a week for actuaries to review, or “score,” pension reform proposals and verify the savings that can be expected. Asked if that would preclude a vote on pension reform next week, Phelon said, “I think that’s a safe assumption. The numbers need to work.” […]

“Discussions have been good, and progress is being made,” [Vicki Crawford, spokeswoman for House Republican Leader Jim Durkin] said. “We need to wait for scoring to come back from the systems, so it is highly unlikely there will be a vote next week. […]

“Leader Radogno believes good progress is being made. As they continue to talk, they will look at the numbers and make sure it all works,” said spokeswoman Patty Schuh. “The numbers have to work. To go without numbers is not a very credible position for the state of Illinois.”

Discuss.

  48 Comments      


$1.4 Billion Economic Benefit and 6,294 Illinois jobs at risk…

Monday, Nov 4, 2013 - Posted by Advertising Department

[The following is a paid advertisement.]

That’s why a coalition of thousands of Central and Southern Illinois workers, families, local union organizations, mayors and 28 members of the Illinois General Assembly support Dynegy’s efforts to acquire the Ameren Energy Resources (AER) energy centers located in Joppa, Newton, Bartonville, Canton and Coffeen. Together these centers:

    * Create an annual statewide economic benefit of $1.4+ billion
    * Provide $338+ million in annual household earnings
    * Support a total of 6,294 Illinois jobs
    * Deliver $13.3 million annually to cash-strapped schools and local governments

“Dynegy has stepped up to help support much-needed union jobs and economic activity in Illinois,” said Michael T. Carrigan, president of the Illinois AFL-CIO. “We support Dynegy’s efforts to ensure reduced emissions while protecting the economic livelihoods of Illinois families and local communities, especially in hard-hit Central and Southern Illinois.”

AER and Dynegy are strongly committed to reducing air emissions from their Illinois energy centers which operate in accordance with EPA regulations:

    * Dynegy has spent approximately $1 billion on environmental controls in Illinois
    * AER has contributed more than $1 billion in pollution control equipment
    * Dynegy reduced SO2 emissions levels at its facilities by more than 90% since 1998

With the future addition of AER, Dynegy plans to double its operations and investment in Illinois – providing certainty to the employees and communities in Central and Southern Illinois that count on the continued operation of the AER energy centers.

“Approximately 50% of my community’s property tax revenue comes from the Newton Energy Center,” Newton Mayor Mark Bolander said. “If the Newton Energy Center shuts down, so will our schools, the City of Newton and Jasper County. The economic impact will be insurmountable, and the ripple from this devastation will affect not only Jasper County, but also surrounding counties.” LEARN MORE: www.DynegyInIllinois.com.

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Coming clean

Monday, Nov 4, 2013 - Posted by Rich Miller

* Ron Gidwitz finally comes clean to the Tribune about how he tried to convince state Sen. Jim Oberweis to run for US Senate

Chicago businessman Ron Gidwitz, a social moderate who also unsuccessfully sought the 2006 GOP nomination for governor, acknowledged he “sort of did suggest very strongly on a number of occasions” that Oberweis consider a U.S. Senate bid in 2014.

Sheesh. Was that so difficult?

* Meanwhile, the two GOP legislative leaders ain’t all that enthusiastic about an Oberweis bid

“Jim, while he may no longer believe some of the things he said in the past, it will come back,” said Illinois Senate Republican leader Christine Radogno of Lemont, who has discouraged an Oberweis bid. “I don’t think that will help the ticket. I encouraged him to think long and hard.” […]

Rep. Jim Durkin of Western Springs, the new Illinois House Republican leader, said Oberweis should do some “soul searching.” Durkin, who defeated Oberweis for the 2002 GOP U.S. Senate nomination, said Oberweis needs to be aware that a litany of controversial statements “don’t wash away after the election” but “will continue on as long as you’re in the public eye.”

Good advice.

* And here’s a recent photo of Sen. Oberweis with one of his “new” Democratic friends, Sen. Martin Sandoval…

Caption?

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Protected: SUBSCRIBERS ONLY - Supplement to today’s edition

Monday, Nov 4, 2013 - Posted by Rich Miller

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

Monday, Nov 4, 2013 - Posted by Rich Miller

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Reader comments closed for the weekend

Friday, Nov 1, 2013 - Posted by Rich Miller

* Several bands performed Lou Reed songs in concert this week. Click here for some videos.

My personal favorite tribute, though, was Neil Young, Elvis Costello, My Morning Jacket, Jenny Lewis and more performing “Oh! Sweet Nuthin’” on Wednesday night

Say a word for Pearly Mae
She can’t tell the night from the day
They threw her out in the street
Just like a cat she landed on her feet

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Twitter as GPS

Friday, Nov 1, 2013 - Posted by Rich Miller

* The AP matched up Treasurer Dan Rutherford’s Tweets to his official public schedule and his state travel invoices

“Just arriving to the DuPage Township Republicans Sunday Brunch fundraiser where I will be the guest speaker,” Rutherford tweeted one Sunday last fall. Hours later, he posted that he was speaking at a Joe Neal for Illinois Senate event and at a fundraiser for U.S. Rep. Bobby Schilling.

Those fundraisers came during his stay in the Chicago suburbs to promote the I-Cash program, which reconnects Illinois residents with financial property they misplaced. While the costs were hardly exorbitant — he stayed at a Red Roof Inn for $70 a night — the reports that Rutherford filed with the state don’t mention the political events but justify the expenses for “performing duties as state treasurer.” […]

The AP found more than 20 such mixed purpose trips by Rutherford over an 18-month period through a review of his social media posts, expense reports and official schedule. Half a dozen were in Chicago, where the treasurer has an office, but the others were in smaller towns across the state tied to the unclaimed property events. […]

Rutherford, of Chenoa, said his office’s I-Cash events are the important “anchor” his political schedule is based around while traveling. He said he doesn’t claim per diems, and he regularly turns down a security detail. And he said his campaign committee and other party funds pay for lodging, including when he was Illinois chairman for the Mitt Romney presidential campaign in 2012.

This is a common practice. You schedule campaign business around state business. Fly down south to cut a ribbon, then stick around for a fundraiser. However, neither of his two predecessors used the I-Cash program to justify extensive political travel.

What makes this story interesting is that Rutherford has made it so easy to track his movements.

  18 Comments      


Question of the day

Friday, Nov 1, 2013 - Posted by Rich Miller

* The Republicans on the pension reform conference committee have been demanding an optional 401(k) retirement plan. Public employees would be able to leave the pension system and start their own retirement accounts with a bit of matching state cash kicked in.

This is not a “cash-out” plan. It doesn’t allow employees to withdraw all the money they’ve put into the system to date. It allows them to exit the system and start their own retirement accounts moving forward. They’d still get the pension benefits they’d already earned up until that point.

Democrats have so far resisted it, partly out of fear that allowing such an optional plan could open the door to the end of a defined benefit plan down the road, as proposed by Bruce Rauner and others

Republican gubernatorial candidate Bruce Rauner said Thursday he believes his proposed cap on earning additional pension benefits can pass constitutional muster.

Rauner said putting state workers into a 401(k)-style plan while saving pension benefits they have already earned will be sufficient to withstand a court challenge.

“We are not taking away anything historically accrued at all by that move,” Rauner said when asked if his plan was constitutional. […]

Asked later if he agreed with Rauner’s position on pension reform, [Republican attorney general candidate Paul Schimpf] said no.

“I would disagree with that,” he said. “I would have to see his actual plan before I decide to throw a flag on it. I do think a pension is a promise that needs to be kept. It is a contract under contract law.”

* There’s also worry about the loss of employee contributions into the current system (Speaker Madigan, for instance, mentioned this concern to me last week) with the optional plan. But once workers opt out of the mandated benefits system, the state’s overall financial burden would be lower because the government would no longer be on the hook for the employees’ mandated benefits from the day of the opt out forward. Moving every active duty teacher out of the TRS system and into a defined contribution plan, for example, would save at least $71.4 billion in state contributions through FY 2045.

Whatever the case, it’s doubtful that more than a handful of public employees would take advantage of such an option. There’s just no way that they would be financially better off, despite the rhetoric of some that workers should have the right to “control” their own retirement accounts. But some might do it anyway.

The one guarantee here is that the unions will freak out if this is approved. They’ll undoubtedly see this as a slippery slope to Raunerism.

…Adding… Something I meant to mention, but forgot while I was distracted by something else, is that SURS already has a defined contribution plan. Many thanks to a commenter for reminding me.

* The Question: Do you support giving public employees the option to exit the state pension system and set up their own individual retirement accounts with limited state matching contributions? Take the poll and then explain your answer in comments, please.


panel management

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Protected: *** UPDATED x4 *** Durkin, Madigan, Cullerton, Radogno response - SUBSCRIBERS ONLY: This just in…

Friday, Nov 1, 2013 - Posted by Rich Miller

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Dynegy Doesn’t Deserve Permission to Pollute Illinois Communities

Friday, Nov 1, 2013 - Posted by Advertising Department

[The following is a paid advertisement.]

After years of dangerous pollution from Ameren’s E.D. Edwards coal-fired power plant in Bartonville, Ill., local community members are not willing to let Texas-based energy giant Dynegy walk into town asking for a free pass to pollute their community.

A new air modeling study released by the Central Illinois Healthy Community Alliance found that the E.D. Edwards coal plant is allowed to emit toxic sulfur dioxide (SO2) pollution at up to 7.5 times above the limit the Environmental Protection Agency (EPA) says is required to protect public health.

Exposure to sulfur dioxide pollution for even five minutes can make it hard for a person to breathe and high levels of exposure to sulfur dioxide can send people to the emergency room

The decades-old, uncontrolled E.D. Edwards coal plant is part of Ameren’s no-cash sale of five Illinois coal plants to Dynegy. Peoria residents are extremely concerned that Dynegy lacks a plan to clean up the plant.

Dynegy, working locally as the unfunded Illinois Power Holdings subsidiary, has requested a variance from the Illinois Pollution Control Board (IPCB) to have until 2020 to comply with the Illinois State Multi-Pollutant Standard, a law established in 2006. The company is a willing buyer of Ameren’s coal plants, but falsely claims undue financial hardship as the reason it cannot comply with Illinois’ commonsense clean air standard. Dynegy is hinging the final sale agreement with Ameren on the IPCB’s variance decision.

Peoria residents know that they deserve more than Dynegy’s risky bet on coal in Illinois and years of more pollution. For the sake of Illinois’ future, Dynegy’s request for more time to pollute Illinois air must be denied.

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Numbers for hard times

Friday, Nov 1, 2013 - Posted by Rich Miller

* Huge

The shutdown of as many as 68 Dominick’s grocery stores next month could produce the biggest layoff in metro Chicago in years, with upward of 6,600 employees at risk of losing their jobs. […]

According to executive search firm Challenger Gray & Christmas Inc., employers in Illinois cut a total of 2,202 jobs in Chicago in September — only about a third of the Dominick’s jobs at stake. The Bureau of Labor Statistics, meanwhile, reports that 5,513 people in the Chicago area reported losing a job associated with a mass layoff in the first three months of 2013. Again, that number is significantly below Dominick’s employee headcount.

* Crain’s

A closely watched indicator of Chicago business activity surged last month as companies ignored the federal government shutdown and scrambled to ramp up production.

The Chicago Business Barometer hit 65.9 in October, up 10.2 points from September, its biggest one-month gain in 30 years.

But

Employment was up 4.5 points to 57.7, the highest level since June but far below the pace set by new orders and production.

“Purchasers say the increase was due to callbacks from layoffs, temporary workers and using interns to fill in the gap,” she added. “There wasn’t any really new hiring.”

* On to the newspaper industry

Newspaper circulations in Chicago continued to drop this year as readers shifted to digital channels, while the companies that print the papers kept up efforts to charge for online products.

Average print circulation for the city’s biggest newspaper, Tribune Co.’s Chicago Tribune, declined 8 percent to 677,348 on Sundays and 12 percent to 413,655 on Wednesdays during the six months that ended with September, compared with the same six-month average for 2012, according to the Alliance for Audited Media.

At the Chicago Sun-Times, the average Sunday circulation fell 11 percent to 165,404 and the Wednesday circulation slid 13 percent to 167,493.

* We had several comments yesterday like this one about today’s cut to the food stamp program

SNAP isn’t supposed to be easy or convenient, folks. Its supposed to be just enough to get by until you can improve your own situation. Anything more invites a cycle of poverty.

Some numbers

The Illinois Hunger Coalition says about 349,000 seniors and 886,000 children statewide will be affected.

  40 Comments      


Is momentum building?

Friday, Nov 1, 2013 - Posted by Rich Miller

* David Ormsby

State Rep. Greg Harris (D-Chicago), the measure’s chief House sponsor, strongly hinted on Wednesday night that he plans to call the bill for a vote during the last week of the fall veto session which begins on Tuesday, November 5.

“I think my colleagues should be prepared next week to make history on marriage equality,” Harris told The Illinois Observer during his fall fundraiser in Chicago’s Uptown neighborhood.

“I spent the day making calls on marriage,” Harris said. “I’m very happy.”

Another Democratic lawmaker contacted by The Illinois Observer echoed Harris.

“Greg says he’s calling the bill next week and that’s he got the votes,” said the legislator. “I don’t know who he has flipped.” […]

“I understand the Speaker has renewed interest in the marriage bill,” a top Democratic lawmaker told The Illinois Observer.

That last sentence is probably the most important one.

* The AP also sees momentum building

One legislator who firmed up his support is Rep. Al Riley, an Olympia Fields Democrat who’s been hesitant to discuss his position publicly. He told The Associated Press he’s now a “yes.”

“I’m not in the business of discriminating against people,” he said. The road to “good public policy is that you don’t talk about it all the damn time.”

Riley was always leaning hard in that direction, but it is important for supporters to come out and say so.

* The other side

Bishop Larry Trotter of Sweet Holy Spirit Church and his coalition of African American pastors around the Chicago area have spoken out against same-sex marriage with aggressive robocall and radio ads. He said the group, which argues marriage should remain between a man and a woman, has started lining up challengers, though he declined to name any. Candidates who want to run for office face an early December petition deadline.

“We have some very serious candidates who are going to run in several of these districts,” Trotter said. “They can’t come to church with our support and then go and vote (against our interests) in Springfield.”

  19 Comments      


Report: Sun-Times to endorse candidates

Friday, Nov 1, 2013 - Posted by Rich Miller

* A source tells Crain’s that the Sun-Times will dump its “no endorsements” policy in the next few weeks

In January 2012, the newspaper announced in an editorial that it was no longer going to endorse candidates, saying, “We have come to doubt the value of candidate endorsements by this newspaper or any newspaper, especially in a day when a multitude of information sources allow even a casual voter to be better informed than ever before.” The paper went on to state that “research on the matter suggests that editorial endorsements don’t change many votes.”

At that time, Bruce Rauner, former chairman of Chicago-based private-equity firm GTCR LLC, was an investor in Wrapports. He’s since sold his 10 percent stake and is a Republican candidate for governor.

The decision to pull back from endorsements came soon after the Sun-Times was purchased by Wrapports, whose chairman is Michael Ferro. It was clearly made by upper management at the firm, as the paper’s top editor, Jim Kirk, who is now also the paper’s publisher, expressed disagreement with the move.

* More

The source said the turnaround came after much discussion with editorial managers and Mr. Ferro. (Through a spokeswoman, Mr. Kirk declined to comment today.)

Another voice pushing for endorsements? Chicago’s cabbies.

In casual discussions with taxi drivers, Wrapports executives came to realize that it’s easy for a voter to research the background and positions of a gubernatorial or U.S. Senate candidate, the source said. But it’s often more difficult to do that for judges, state representatives and other down-ballot candidates.

Cabbies?

  16 Comments      


Murphy, Raoul, Zalewski believe a pension bill will be called next week

Friday, Nov 1, 2013 - Posted by Rich Miller

* Four of the ten pension reform conference committee members were on “Chicago Tonight” this week. Right up front, they were asked whether they thought a bill would be voted on during next week’s veto session. Sen. Matt Murphy (R-Palatine) said he thought it would happen, as did two Democrats, Sen. Kwame Raoul and Rep. Mike Zalewski.

Rep. Darlene Senger (R-Naperville), however, said “I’m not sure.”

Senger said she believed they were “not far off” from an agreement, but said she’d like to see more savings.

But her comments about not being sure appear to jibe with her caucus leader’s recent statement that he would rather wait for a good pension reform bill than rush into something next week.

* Watch

  19 Comments      


Talking points

Friday, Nov 1, 2013 - Posted by Rich Miller

* Sometimes, trying too hard to stay on message can complicate matters when reporters want to ask about different stuff

Rauner earlier this week said on a Chicago radio show that high-speed rail is not a priority for Illinois. Asked about high-speed rail Thursday, Rauner initially avoided the questions.

“I have not studied high-speed rail issues,” he said. “I cannot comment on that.”

Reminded of his comments on the radio, Rauner said, “There are many priorities. I don’t think that’s one of the top few.”

He said the state needs to invest in all of its infrastructure to remain competitive.

So, he said he doesn’t like high-speed rail, but he hasn’t studied it so he can’t comment on it, but the state needs to invest in infrastructure to remain competitive.

Got all that?

* He also indicated that maybe he wasn’t as eager to “bulldoze Springfield” as his ads suggest

He has been staking out the position of being an “outsider” who is going to “shake up Springfield.” After remarks to a Springfield Republican luncheon Thursday, he was more conciliatory toward one of the other thirds of state government.

“I’m excited to transform the government. I need to work with the legislature. I need to understand them. I’ve spent a lot of time getting to know the legislative leaders over the last couple of years,” Rauner said. “I’m going to get to know every member of the legislature,” he continued. “I am going to find ways to get legislation passed.”

Discuss.

  35 Comments      


Caption contest!

Friday, Nov 1, 2013 - Posted by Rich Miller

* The BGA’s caption

Better Government Association President and CEO Andy Shaw and John Tillman of the Illinois Policy Institute discussed the State’s pension crisis and “corruption-as-usual culture” at the Union League Club of Chicago on Wednesday, October 30.

I’m sure you can do better than that.

* The photo…

Remember, this is all in fun.

  52 Comments      


More Lou

Friday, Nov 1, 2013 - Posted by Rich Miller

* Usually, I post a video at the end of the week when comments are turned off. But we’re gonna do something a little different today. I didn’t post many of Lou Reed’s “hits” earlier this week, and that may have disappointed some folks. So let’s start with the Velvet Underground’s “Rock & Roll”

Jenny said when she was just about five years old
You know my parents are gonna be the death of us all
Two TV sets and two Cadillac cars
But you know, ain’t gonna help me at all

* “Sweet Jane”

And there’s even some evil mothers
Well they’re gonna tell you that everything is just dirt

* “Perfect Day”

I thought I was
someone else, someone good

* And, of course

Plucked her eyebrows on the way

  9 Comments      


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Friday, Nov 1, 2013 - Posted by Rich Miller

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