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Wednesday, Oct 16, 2013 - Posted by Rich Miller

* 4:06 pm - The Illinois Supreme Court has ruled that it will accept a direct appeal of the circuit court ruling on the lawsuit against Gov. Pat Quinn’s legislative salary veto. The ruling can be seen by clicking here.

* It’s gonna be a while before they get around to it, though…


Tybor is the Supreme Court spokesman.

  15 Comments      


Fact check

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* The other day, Sheila Simon’s campaign sent out an e-mail asking people to check out her brand new website. So I did. And I found this

The comptroller’s office plays an important role in the oversight of finances for local governments. Thousands of units of local government across Illinois are required to file annual reports with the comptroller. The current comptroller’s office has stated they are “just a repository” for this information, nothing more.

In addition, many of these units of local government are several years delinquent in filing their financial reports. Sheila will work to shine a light on delinquent local government and provide real analysis of the financial reports they submit to the comptroller. Sheila believes this type of oversight can help prevent the type of local corruption seen in places like Dixon, Washington Park, and Moro Township. [Emphasis added.]

* Many are still several years delinquent? Well that’s not good.

So, I checked with Comptroller Topinka’s spokesman and asked how many local governments were at least two years behind. I figured since Simon claimed “several years” I’d make sure it was more than one. Here is the response…

There are 5,200 local governments that file Annual Financial Reports with the Comptroller’s Office.

When Comptroller Topinka took office in 2011, there were 101 local governments that were more than two years delinquent with their filings. Today there are 28. Comptroller’s staff is in regular contact with those governments to bring them into compliance.

It is also worth noting that the Comptroller successfully pushed for legislation last year to fine local governments for late reports. The fining started on May 1 and we believe that it will encourage even greater compliance moving forward.

That works out to about a half percentage point delinquency rate. Not exactly a scandal, or even “many.”

  26 Comments      


This Is Illinois (Part 3,648)

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* AP

A key figure in last summer’s Metra transit scandal is now working for the state of Illinois in a recrafted job after a referral from Illinois House Speaker Michael Madigan.

Documents obtained by The Associated Press show that Patrick Ward was hired by Gov. Pat Quinn’s administration for a $70,000 post that was redefined after he was interviewed. His supervisory position currently has no one to supervise because of vacancies.

Officials say Ward received no special treatment and that his background qualified him for the job. But they exempted the post from normal hiring rules so he didn’t have to compete against other candidates. [Emphasis added]

Sigh.

* But, really, should this be any sort of surprise? I mean, the Speaker is more than just “adept” at patronage. He’s a master.

Remember this nifty little move from 2011?

The Regional Transportation Authority has come up with an interesting solution of sorts to its continuing Springfield woes. It’s hired the son-in-law of Illinois House Speaker Mike Madigan for a $130,000-a-year job. […]

The RTA’s spokeswoman says there is “no relationship” between the hiring and the fact that RTA Chairman John Gates has had a rocky relationship with Mr. Madigan, with continual talk that the speaker might even run a bill to abolish the agency.

Yeah, no relationship whatsoever.

  31 Comments      


City council backs drastically watered down gun proposal

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* Mayor Emanuel had real trouble today passing a resolution that everybody thought called for support of state legislation requiring mandatory minimum sentences on many first time gun possession violators. Opposition came mostly from African-American aldermen. DriXander was there



* And then somebody read the actual resolution…


Oops.

* Read the resolution by clicking here. It says nothing at all about endorsing the mandatory minimum aspect of the legislation that Emanuel has been touting for days…

WHEREAS, Illinois should strengthen its sentencing laws so that people who commit crimes with firearms face tougher sentencing requirements; now, therefore,

BE IT RESOLVED, That we, the Mayor and Members of the City Council of the City of Chicago, do hereby urge the Illinois General Assembly to take action, in the interest of public safety, by passing legislation that strengthens our sentencing laws for those crimes committed with a firearm, requiring that 85 percent of each sentence be served regardless of the “bodily harm” inflicted

Maybe Emanuel is finally listening. Whatever the case, how do you pass a mandatory minimum bill in Springfield when the Chicago freaking city council won’t even back it?

  9 Comments      


Question of the day

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* Sen. Michael Frerichs threw some political jabs at Rep. Tom Cross the other day. The two men are running for state treasurer. From the Champaign News-Gazette

Cross, [Frerichs] said, is a “Springfield insider” who had “contributed to many of the most hazardous fiscal decisions leading to our current financial crisis.” Cross wants to “cut to the core the very programs that working families” depend on and is specifically aiming at public education and seniors.

Frerichs said he has been trying during his tenure in the Senate, and so far failing, “to clean up the mess Leader Cross helped to create over the past 20 years.”

The CN-G didn’t like the hometown guy’s rhetoric

To have power in Springfield, you have to be a Democrat. Cross is a Republican, and he’s spent most of his time in Springfield trying to wipe away the sand kicked into his eyes by Democrats.

Here’s a little history lesson Frerichs hopes people don’t remember. Illinois is a solid Democratic state. Democrats control the governor’s office, both houses of the Legislature with veto-proof majorities, and the Supreme Court.

Republicans last controlled both houses of the Legislature in 1994. They last controlled one legislative chamber, the Senate, in 2003. They last had a Republican governor — George Ryan — in 2003. They’re out of power and out of luck, hoping somehow to win back public confidence and begin playing a significant role in the formulation of public policy.

But they’re not there yet. In fact, they’re not even close. That’s why Frerichs’ characterization of Cross is preposterous.

* The Question: Do agree with Frerichs or the News-Gazette? Take the poll and then explain your answer in comments, please.


polls

  43 Comments      


*** UPDATED x1 *** A big hole in Rauner’s pension plan

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* We discussed Bruce Rauner’s pension idea yesterday….

He favors capping pensions that have already been earned and moving government employees to a defined benefit, 401(k)-type of retirement plan.

As I told you before, this idea is laid out in a bill sponsored by Rep. Tom Morrison

Amends the Illinois Pension Code. With respect to the 5 State-funded retirement systems: Provides a new funding formula for State contributions, with a 100% funding goal and amortization calculated on a level dollar amount.

Provides that no additional service credit may be accrued and no automatic increase in a retirement annuity shall be received. Provides that the pensionable salary of an active participant may not exceed that individual’s pensionable salary as of the effective date.

Provides that State-funded retirement systems shall establish self-directed retirement plans for all active participants and all employees hired on or after the effective date. Provides that all active participants shall have the option of participating in a self-directed retirement plan. Provides that these changes are controlling over any other law. Effective immediately.

* Rep. Morrison explained in an e-mail that this would not require Social Security payments…

No, SS payments would not be required because the total percentage contribution by teachers and their school districts (8% from teachers and 7% from school districts) exceeds the threshold that the SSA requires.

* i asked Aviva Bowen of the IFT for a response to the proposal…

Representative Morrison’s proposal would put teachers and other workers into risky waters without a raft. If the market crashes and our retirement security ship springs a major leak, private sector employees can stay afloat because they have Social Security benefits. Teachers don’t get Social Security and would drown, though Wall Street insiders like Bruce Rauner could make a killing by charging higher fees than the systems currently pay, all at taxpayers’ expense.

We also can’t forget that in our current fiscal situation, there are two ways for districts to pay this added cost: raising property taxes or slashing already slim school budgets.

That last point was quite interesting.

* Back to Rep. Morrison…

[The bill] would cost school districts 7% of their personnel costs.

* So, is this another version of the much-hated Democratic-sponsored “cost shift”? Morrison says it could be absorbed by a majority of districts…

(P)er their respective contracts, a majority of school districts already pick up some or all of the employee contribution to TRS, so a 7% contribution to a 401K type plan is very doable.

I agree it’s doable for those districts, but it would cost other districts more. A lot more.

* So, I asked Rauner’s campaign to comment on the very real probability that his pension reform plan would lead to local property tax hikes and/or local school budget cuts. I haven’t yet heard back, but I’ll let you know if they ever respond.

*** UPDATE *** I asked Teachers Retirement System spokesman Dave Urbanek if the Morrison bill would activate Social Security payments. His reply…

Rich:

The ultimate decision would be up to the Social Security Administration. The bill, as I read it, does not require teachers to be in Social Security, but state statutes would not be the last word in the discussion. It’s a federal decision.

It is our understanding that a major determining factor in that kind of decision is not the contributions made by the employee and the employer to a separate government-run retirement plan, but the ultimate benefit that the employee would receive in retirement from that government-sponsored plan. For working people who are not in Social Security, the SSA sets a “safe harbor” threshold that corresponds to the benefit that its members receive. We are told by our actuaries that if the benefit from a government-run plan for someone who is not in Social Security falls below the Social Security safe harbor threshold, then the SSA steps in and places those members into Social Security so they do meet the safe harbor.

That is the situation that we’re facing with Tier II members. This is something that has been publicized for more than a year. The TRS actuaries tell us that because the Tier II benefit grows at a slower pace than the Tier I benefit and the Social Security benefit, that in about a decade the Tier II benefit will fall below the safe harbor threshold and that the SSA will compel TRS members into Social Security. What we’re not sure of is how that happens, and whether the SSA would compel all TRS members into Social Security, or just the affected Tier II members. The actuaries never mentioned that the decision had anything to do with contributions paid by members. Tier II members right now pay the same 9.4 percent of payroll to TRS that Tier I members pay, but on an apples-apples comparison with payroll, the Tier II benefit is 6 percent of payroll, so the Tier II members are paying for their entire benefit. The Tier I benefit is 17.29 percent of payroll, so Tier I members are paying a little more than half of their benefit. The extra 3.4 percent contribution being paid by Tier II members right now automatically goes to subsidize Tier I benefits.

So, as a general rule of thumb, if the pension code is changed in any way to reduce benefits and because of those changes retiree benefits will someday fall below the safe harbor threshold, then when that happens the SSA will act to bring everyone into the safe harbor.

I hope this helps.

Dave

  44 Comments      


Quinn attends huge anti-Rahm rally

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* According to the Tribune, thousands of union members and other activists gathered yesterday to “take back Chicago” from Mayor Rahm Emanuel and his “corporate, greedy, elitist friends”

Speakers at the rally had their own ideas, like having the Chicago Public Schools board elected, rather than appointed by the mayor. The crowd cheered video footage of last year’s Chicago Teachers Union strike. Also singled out for criticism was the mayor’s closing of six mental health clinics as part of a broader privatization effort.

* Among those in attendance was none other than Gov. Pat Quinn

The populist themes are familiar to the re-election-seeking Quinn, who repeated his vow to raise the state’s minimum wage and recounted his days as an organizer, when he founded the Citizens Utility Board, a consumer watchdog group.

“You don’t get changes from the big shots on top of the power heap,” Quinn said. “It bubbles up from grass-roots community leaders, everyday people banding together for a cause they believe in.”

* If you watch the raw video, this was a blatantly anti-Rahm rally

Lots of loud and angry yelling. Quinn’s remarks begin at around the 1:42:30 mark. He didn’t really say all that much, but his presence at that rally likely won’t go unnoticed by the 5th Floor.

* And speaking of anger, SEIU Local One’s Jerry Morrison sent a text message to reporters last night…

I thought folks might be interested in a Chicago jobs update.

First things first, it has been five days since Dominick’s announced they were closing their 72 Chicago area stores and Mayor Rahm Emanuel has not yet uttered the word Dominick’s. I will keep everyone abreast of that number much like Nightline did during the Iran Hostage crisis.

It may ease your mind to know that Mayor Emanuel did find time to go on a Divy bike ride of Logan Square though.

Also, our preliminary research shows that over the last 18 months the City of Chicago has lost well over 11,000 good paying union jobs.

That is a combination of the CPS layoffs, other various public sector layoffs, WARN Act announced layoffs, and just 4,000 of the recently announced Dominick’s layoffs.

I should note this is an extremely conservative estimate and does not include the mass layoffs at Hostess earlier this year. We will
have a more detailed report of job loss under Mayor Emanuel soon. In the mean time could someone just ask Rahm why $16 million for a Whole Foods in Englewood and nothing to save the more than 6,000 jobs at Dominick’s?

  39 Comments      


You gotta be kidding me

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* October 1st Sun-Times story

Dillard said on Tuesday that he expected to have about half a million dollars on hand by the end of the filing period.

* October 15th Sun-Times story

State Sen. Kirk Dillard (R-Hinsdale) did better than Brady in his overall take, reporting $313,372 in overall contributions between his two political funds. He spent a combined $251,415 and had the least amount of any of the major candidates for governor left in the bank: $205,722.

So, Dillard had less than half the cash on hand that he bragged about two weeks ago.

Sheesh.

* And speaking of pathetic campaign finance reports, GOP congressional candidate Erika Harold actually did worse in the third quarter than she did in the second quarter

She reported $72,619 in receipts in July, August and September. She had reported $78,285 in contributions between May 31 and June 30.

Her excuse in the second quarter was that she was just getting started and needed time to put together a fundraising operation. Well, she’s had plenty of time to do that and she hasn’t come through.

* But she did outraise Bill Brady

Brady raised only a combined $66,178 and spent a combined $73,851 during the period.

Oy.

* Gov. Pat Quinn, on the other hand, is raising and stockpiling big bucks

Quinn reported having $2.93 million in the bank. He raised $813,077 and spent $199,640 during the quarter, according to his filing with the State Board of Elections.

  61 Comments      


Get to the table and get a deal

Wednesday, Oct 16, 2013 - Posted by Rich Miller

* I asked the NRA’s Todd Vandermyde last week about Mayor Rahm Emanuel’s proposal to slap mandatory minimum sentences on some repeat and first time offenses. Here’s his e-mailed response…

Still looks problematic as they want 3 years on any first offense. We just had a guy spend 14 months in Cook County for having an out of state carry permit.

We have a 17 year old sitting in Cook for bringing a gun to school because he was scared and they want to wreck his life for it.

What about out of staters who don’t get that their permit is no good here? What about the out of staters who the State Police won’t let apply?

[Cook County State’s Attorney Anita Alvarez] had to drop the charges of over 100 people. What makes anyone think she won’t over charge carry permit violations with [Aggravated Unlawful Use of a Weapon] because she hates guns?

Most of it, are things we have said, but at some point, I think their possession by a streetgang member is going to run afoul of freedom of association issues when no criminal record exists.

Vandermyde opposed the mandatory minimum bill during the spring session, but told a Chicago City Council committee not long ago: “Yes, we can support a mandatory minimum… if they’re not prohibited from not owning a gun generally we can support mandatory minimums especially for repeat offenders:

Listen…

* Vandermyde also had this to say to the Sun-Times

He presented the hypothetical situation of a man with a concealed-carry permit leaving a gun in his vehicle because he and his wife are going into a place where guns are banned.

“Your wife leaves without you, takes the car and gets pulled over,” he said. “Now she is jammed up with a mandatory minimum.”

* The problem now, as I see it, is that the NRA is chafing at Chicago’s insistence on running a bill their way, so Vandermyde is pushing back

Todd Vandermyde, a lobbyist for the NRA, said the group disagrees with the three-year minimums for first-time offenders. He blasted Emanuel for not doing enough to combat city violence.

“The mayor is looking for a public relations solution to a crime problem that he can’t get his hands around,” he said.

* But the Illinois Association of Chiefs of Police, which backed concealed carry, wants the bill passed…

While we support and enforce the rights of law-abiding citizens to possess and maintain firearms, the reality is that these rights are undermined every day by illegal gun violence and arbitrary sentencing. Illegal possession of a loaded gun is a violent crime and the laws should reflect that reality.

This bill will help reduce violent crime in Chicago and the entire state because it is narrowly targeted to reach the most violent offenders. According to a 2011 University of Chicago Crime Lab analysis of all felons sentenced to probation, offenders convicted of aggravated unlawful use of a weapon were 4 times more likely to be re-arrested for homicide and nearly 9 times more likely to be re-arrested for a shooting than other felons. Certain laws must be put in place to keep our streets safe, deter violent criminals and protect the rights of honest citizens.

Gun offenders put our officers and our families at risk. Last month in a mass shooting , 13 individuals including a 3-year boy were shot in Cornell Square Park. One of the accused shooters, Byron Champ was convicted of felony possession of a weapon in 2012 and could still be serving his prison sentence. You may also recall that Hadiya Pendleton was allegedly shot by Michael Ward, a prior gun offender who should have been in prison for his violent crime but was instead out on the streets.

* Hadiya Pendleton’s mother has stepped forward, which only increases the emotionalism behind the legislation

Nine months after her murdered, 15-year-old daughter became the nationwide face of Chicago’s epidemic of gun violence, Cleopatra Pendleton can’t help but wonder, “What if?”

What if the Illinois Legislature had already approved a mandatory minimum, three-year sentence for gun crimes before Jan. 29, the day Hadiya Pendleton was gunned down while hanging out with friends at a park a few blocks from King College Prep?

“Learning that my daughter’s alleged murderer had been in jail for another gun crime was devastating. It was like rubbing salt in an open wound. It was like losing her all over again,” Pendleton said Tuesday.

“Every day, I wake up with a reminder that I’m in a world without her — without her life without her laughter, without her love. I wonder if a larger mandatory minimum had been in place if the person [who] allegedly shot and killed my daughter would have been in jail and Hadiya would still be alive.”

* Everyone can empathize with the Pendleton family of course, but the business of lawmaking requires compromise, and the simple fact is that the NRA has a lot of allies in the General Assembly and it has to be dealt with. Besides, not everyone on the liberal end of the equation is fully on board, either

Sen. Kwame Raoul, a South Side Democrat who negotiated the concealed carry measure on behalf of gun control advocates, said he was torn by the mayor’s “desire and sense of urgency to do something about” gun violence and fears that an “unintended defendant would more likely be a person of color.” […]

Democratic Gov. Pat Quinn has said he would review Emanuel’s proposal. A spokeswoman said Tuesday the governor believes the most effective concept of reducing violence is to come up with “a comprehensive approach.”

Perhaps the most telling prospect signaling the fate of Emanuel’s legislation came from a spokeswoman for Senate President John Cullerton, the Chicago Democrat who is one of the mayor’s closest allies in the legislature.

Cullerton “shares the mayor’s goal of reducing gun violence in the city,” spokeswoman Rikeesha Phelon wrote in an email. “However, we are still reviewing the proposal, implementation concerns and cost estimates with the caucus and other stakeholders.”

So, rather than the usual Chicago bluster, which almost always results in nothing being done, how about they try to work out a deal before the personality conflicts make that impossible?

  55 Comments      


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Wednesday, Oct 16, 2013 - Posted by Rich Miller

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