Rate the tourism ad
Thursday, Oct 3, 2013 - Posted by Rich Miller
* AdWeek…
You have to hand it to the Illinois Office of Tourism and JWT Chicago. They’re not being overly precious with the image of Abraham Lincoln.
The Land of Lincoln rolled out a new tourism spot this fall starring “Mini Abe,” a tiny plastic version of the 16th president who is seen grunting, groaning and shrieking his way around the state—enjoying everything it has to offer, from riverboats and county fairs to the Willis Tower and Route 66.
“Be more spontaneous this fall,” says the on-screen copy line at the end, along with the enjoyIllinois.com URL and #MiniAbe hashtag.
The humor is undeniably odd, but it may be working. A spokeswoman for the tourism office tells the Chicago Business Journal that tourism inquiries made through enjoyIllinois.com are up 57 percent over a year ago.
* The ad…
It made me chuckle. You?
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US Supremes take Illinois unionization case
Thursday, Oct 3, 2013 - Posted by Rich Miller
* The US Supreme Court agreed to hear an Illinois government-related case this week that went mostly unnoticed in the Illinois media. From Jurist.org…
In Harris v. Quinn [docket; cert. petition, PDF] the court will determine whether a state can “compel personal care providers to accept and financially support a private organization as their exclusive representative to petition the state for greater reimbursements from its Medicaid programs.”
The US Court of Appeals for the Seventh Circuit held [opinion] that “a collective bargaining agreement that requires Medicaid home-care personal assistants to pay a fee to a union representative [does not] violate the First Amendment.” The court also ruled, “we lack jurisdiction to consider the claims of plaintiffs who have opted not to be in the union. Because they are not presently subject to mandatory fair share fees, their claims are not ripe.”
* This is from the Pacific Legal Foundation’s blog…
An Illinois executive order and law declares all personal home assistants to be public employees, for the sole purpose of being represented by a collective bargaining unit of the Service Employees International Union (SEIU) that seeks to lobby for greater government spending (Medicaid) on home healthcare. Several personal home attendants, represented by the National Right to Work Legal Defense Foundation, sued, but the district court and Seventh Circuit upheld the order and law.
PLF joined the Center for Constitutional Jurisprudence in an amicus brief written by Tom Caso, urging the U.S. Supreme Court to answer that question, and today the Court agreed to do so. PLF will continue working with CCJ on the merits brief, arguing that compelling personal care providers to be deemed public employees for the purpose of being represented by a union violates the First Amendment guarantee that Americans cannot be compelled to speak or associate, or petition the government, against their wishes. Moreover, we will argue that lobbying is not a legitimate “collective bargaining” function.
* I checked the indispensable SCOTUS Blog and they have one link to a Law Professors Blog Network post by Steven D. Schwinn…
Because the Supreme Court has long allowed this kind of mandatory fee, the Seventh Circuit upheld the fee in Harris. (There was just one twist: personal assistants look a little like state employees and a little like personal employees of the patients they serve, or state contractors. The Seventh Circuit ruled that they were state employees.)
The Court now will review that ruling. But it doesn’t start from scratch. That’s because the Court ruled in Knox in 2012–after the Seventh Circuit handed down Harris–that a public union couldn’t use an opt-out procedure for special assessment fees for non-members for non-union activities; instead, the Court said it had to use an opt-in procedure. In other words, the Court ruled that the state couldn’t require non-members to pay the special assessment for non-activities but opt out; instead, the state could only allow non-members to opt in. […]
the Knox opinion (penned by Justice Alito) included strong language suggesting that the broader Abood rule violated free speech and free association. That is, Knox comes very close to saying that states can’t require non-members to pay even for union activities–even though that question wasn’t before the Court.
In other words, the Court in Knox sounded like it was just waiting for a case to give it a chance to overturn the Abood rule that non-members can be assessed fees for union activities.
Harris might just be that case. If so, Harris could represent a big blow to public union power. Indeed, depending on how the Court might rule, it could mark the beginning of the end of public unions (if the beginning hasn’t already happened). […]
The Court could rule differently, though–on Abood’s application to independent contractors and even to the private sector–and that’s where the facts matter. Remember that the Seventh Circuit said that personal assistants were state employees, but that they also look a little like private employees. Abood applies to public employees, and the Seventh Circuit was clear that “we do not consider whether Abood would still control if the personal assistants were properly labeled independent contractors rather than employees.” “And we certainly do not consider whether and how a state might force union representation for other health care providers who are not state employees, as the plaintiffs fear.” Op. at 15. This kind of ruling could represent a significant blow to union power, too.
More details here.
* From the CATO Institute, which filed an amicus brief urging the USSCt to accept the case…
We argue that the forcible unionization of home healthcare workers serves none of the compelling purposes for public-sector unionization that have been articulated by the Supreme Court. Because the Court has long recognized that unionization impinges certain constitutional rights, it has limited public-sector collective bargaining to those situations which advance the aims of promoting “labor peace” and eliminating “free riders.”
Labor peace is promoted by limiting competing workplace interests from bargaining over the conditions of employment — for example, two unions at the same workplace representing different colleagues.
Free riders are non-union employees who enjoy the benefits of union-achieved gains without paying into the union’s war chest. But neither aim is promoted by a system, such as Illinois’s, in which employees work in different locations and in which the customer — the disabled person paying the homecare worker through a Medicaid disbursal — still controls every crucial aspect of the employment relationship, including hiring and firing. This last fact is most telling: the Illinois law only allows collective bargaining for higher wages and more generous benefits.
That is, the law is only about speech — petitioning the government for higher wages and benefits — and does not address workplace conditions at all.
As more and more states push to unionize more workers who indirectly receive government money — campaigns that, in face of dwindling private-sector union membership, have been called “labor’s biggest victory in over sixty years” — it is vital that the Supreme Court articulate a limiting principle on this practice. Otherwise, more and more of us will be forced to interact with our representatives only through government — appointed bodies.
* From SEIU…
We’re confident that the Supreme Court will honor its own precedent and reaffirm that unions are entitled to collect reduced fees from non-members to cover the costs of negotiating wage increases and other benefits on their behalf.
There is a long legacy of previous Supreme Court decisions finding that “fair share fees” – reduced fees that unions charge to non-members to represent them in collective bargaining – are fully constitutional.
If the Supreme Court rules any differently in the Harris case, it will abandon a position it has established and reinforced repeatedly. That is why we’re anticipating that the Supreme Court will uphold the rulings of both the federal and district courts in the Harris case, each of which rejected the effort to invalidate fair share fees paid by non-union home care personal assistants in Illinois. […]
So far two federal courts have firmly rejected efforts to void fair share fees and all the benefits it has generated for Illinois home care workers and their consumers. We’re confident the Supreme Court will make the same decision.
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Question of the day
Thursday, Oct 3, 2013 - Posted by Rich Miller
* As the Illinois Family Institute correctly points out today, the gay marriage bill offers no protection for business owners who do not want to provide services for gay marriages.
The IFI continues…
[Rep. Greg Harris] cited the Illinois Human Rights Act as his justification for not protecting the rights of people of faith to refuse to use their labor and goods in the service of an event that violates their deeply held religious beliefs. Well, the Illinois Human Rights Act also prohibits discrimination based on religion; hence the conflict of which Chai Feldblum spoke. Harris finds discriminating based on religion tolerable and justifiable but not discrimination based on sexual predilection.
By the way, choosing not to participate in a same-sex “wedding” does not reflect discrimination against persons. It reflects discriminating among types of events.
The elderly florist who is being sued by the state of Washington for her refusal to provide flowers for a same-sex “wedding” did not discriminate against a person. She made a judgment about an event. She had previously sold flowers to one of the homosexual partners. She served all people regardless of their sexual predilections, beliefs, sexual activities, or relationships. She just wouldn’t participate in an eventthat she (rightly) believes the God she serves abhors.
It’s an interesting point. After all, the Catholic Church and lots of other denominations are denouncing gay marriage, which puts their religious adherents in a bind if asked to “participate” in an event (by selling products or services for that event) that they deeply oppose.
No business, by longstanding law, is allowed to refuse to provide services to a gay person because that person is gay, but asking businesses to provide services for an event is another concept. ADDING: Judging from some comments, there is a disagreement over whether it actually is a separate concept. OK, I can see that side as well. But even if I fully concede the point, the question remains.
* The Question: Should Illinois business owners be required under law to provide services and products for gay marriages, regardless of the owners’ religious beliefs? Take the poll and then explain your answer in comments, please.
surveys
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Fun with numbers
Thursday, Oct 3, 2013 - Posted by Rich Miller
* Sen. Kirk Dillard talked about the economy during an Elmhurst College event this week…
Dillard reminded the audience of his previous work as Chief of Staff to former Illinois governor Jim Edgar in the early 1990s.
“I know what a state that runs on all cylinders looks like,” Dillard said.
Not quite.
* As I told you earlier today, the U of I Flash Index currently has Illinois at 106.5. A rating above 100 signifies growth, below 100 means contraction.
If you check the Flash Index archives, you’ll see that the index was above 100 for just two months during Dillard’s 1991-1992 tenure as chief of staff. The highest it ever got was 102.5. The lowest was 92.2.
At the end of December, 1992, the state’s unemployment rate was 7.2 percent, down from a high of 8.5 percent earlier that year. That’s lower than it is now, and the economy was obviously growing by the time Dillard left the governor’s office for a Senate seat, but the economy was hardly firing on all cylinders.
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Rahm and Rauner: Montana vacation buddies?
Thursday, Oct 3, 2013 - Posted by Rich Miller
* Bruce Rauner is already taking a bit of heat from his Republican gubernatorial rivals over his very close ties to Mayor Rahm Emanuel...
It’s Rauner, after all, who advised Rahm in the late ‘90s to make his fortune as an investment banker and who hired him to represent GTCR in the purchase of a home-security company from SBC Communications. Proceeds from that deal, among others, put the Clinton operative, who had no prior business experience or education, on the fast track to earning $18 million in under 3 years. Fortune in place, Rahm sprinted down the road to elective office.
Rauner’s genuine chumminess with Rahm will not help the venture capitalist in the Republican primary, and neither will Rauner’s contributions to Rahm’s campaigns.
* Carol Felsenthal digs up another…
On April 17, 2012, before Rauner announced his exploratory committee for governor, the American Jewish Committee, at a dinner at the Ritz Carlton Chicago, honored Rauner with its Civic Leadership Award. More than 400 people attended, a AJC record. Mayor Emanuel introduced/roasted Rauner and presented him with the award.
Two people who were there that night told me that Rahm was extremely funny and that he mentioned that he and his family vacation at Rauner’s ranch in Montana.
That would be a nice little advantage for Rauner next fall, but, needless to say, not so much during the primary.
* Also, I did a quick Google search for the two men and found this speech by then-Congressman Rahm Emanuel in the Congressional Record on June 1, 2004…
Mr. Speaker, I rise today to congratulate my good friend Bruce V. Rauner of Chicago and the Rauner Family Foundation for being honored by the American Red Cross of Greater Chicago, which is awarding Bruce with its prestigious Humanitarian Award at the Second Annual Hometown Heroes Awards breakfast. […]
Mr. Speaker, on behalf of the people of the Fifth Congressional District of Illinois and indeed all of Chicago, I am privileged to congratulate Bruce V. Rauner and the Rauner Family Foundation for this impressive honor, and I applaud the American Red Cross of Greater Chicago for bestowing this celebrated award on such deserving recipients.
It’s just the usual congressional boilerplate stuff, but the glowing language praising Rauner might not look so good when it’s referenced in a negative TV ad - that is, if anybody ever runs one.
…Adding… Frank Zappa’s “Montana” has been in my head since I wrote this post. I forgot how great the guitar solo is…
Gonna be a dental floss tycoon
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Yet another twist in legislative salary case
Thursday, Oct 3, 2013 - Posted by Rich Miller
* Gov. Pat Quinn asked the Illinois Supreme Court to hear a direct appeal of Judge Neil Cohen’s decision that killed off his veto of legislative salaries…
Cohen’s decision to back House Speaker Michael Madigan (D-Chicago) and Senate President John Cullerton (D-Chicago), who opposed Quinn’s move, revolved around constitutional language that prohibits legislators’ salaries from “changes” during their existing terms in office.
But on Wednesday, Quinn argued that Cohen ignored the governor’s constitutional right to veto appropriations bills and statements by delegates to the state’s 1970 constitutional convention that intended for the term “changes” to apply to increases in pay.
Quinn pointed to at least seven instances in which legislators voted to reduce their pay, dating back to the 92nd session of the General Assembly between 2001 and 2002.
That’s an interesting twist because legislative furloughs have been approved time and time again. I made an argument in today’s Capitol Fax that Quinn might’ve looked at the wrong angle.
But there’s something else that I didn’t mention because I didn’t realize it at the time. Lawyers for Cullerton and Madigan argued earlier in the case that the furlough laws were, plain and simply, unconstitutional. They’ve remained on the books because nobody has ever challenged the constitutionality of the furlough laws.
So, there’s an interesting argument from the two legislative leaders. “So what? We passed unconstitutional bills. So sue us.”
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Not enough growth
Thursday, Oct 3, 2013 - Posted by Rich Miller
* This doesn’t look too bad…
The University of Illinois flash index jumped from 106.5 in August to 107 in September — its highest level in more than six years.
The index is considered a barometer of the Illinois economy. The last time it was this high was April 2007, when the index stood at 107.4.
Generally, readings above 100 indicate the economy is growing, while readings below 100 show the economy is shrinking.
The index is a weighted average of Illinois growth rates in corporate earnings, consumer spending and personal income.
To reflect those, economist J. Fred Giertz looks at Illinois corporate income tax receipts, retail sales tax receipts and individual income tax receipts.
In September, all three components were up, when adjusted for inflation, from September 2012.
* There’s a catch, of course…
However, a disconnect remains between the unemployment rate and other measures of economic activity such as the Flash Index and GDP. The national unemployment rate has fallen over the past year, but remains well above 7 percent, which is high in comparison to past recoveries.
“Unemployment in Illinois is even more dire than the national rate,” said economist J. Fred Giertz, who compiles the index for the university’s Institute of Government and Public Affairs. “The state rate is 9.2 percent. This is the same as one year ago, and the second highest in the nation; only Nevada’s rate is higher.”
The expanding Illinois economy has not experienced sufficient growth to reabsorb the unemployed while creating jobs for new workforce entrants.
* Economic growth for the past three years has been steady, but it’s not strong enough…
* To put this into some more perspective, the highest Flash Index rating since 1981 was a robust 120.3, way back in January of 1985. The lowest was an anemic 85.9 in April of 1983.
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Cullerton backs conference committee ideas
Thursday, Oct 3, 2013 - Posted by Rich Miller
* Senate President John Cullerton told the SJ-R editorial board basically what he told me a couple of weeks ago. He backs the proposal being worked on by the pension reform conference committee. Bernie…
Elements of the compromise include having what is now a 3 percent compounded cost of living adjustment added to pension payments changed to half of the Consumer Price Index. Cullerton said the COLA couldn’t drop below 1 percent.
“It has a ceiling of 4 percent,” he added, “which is important because if there is inflation, there could be an actual opportunity for people to … get more than they’re getting now.”
Estimates are that the proposal would have state pension funds fully funded by 2043.
The proposal would also decrease active employee contributions by 1 percentage point.
“It’s not that much money in the big picture in terms of the savings,” Cullerton said of that drop in employee contributions.
The combination of reduced employee contributions and “inflation protection” afforded by allowing the COLA to potentially rise to 4 percent, Cullerton said, could solidify the argument that the plan meets requirements of the state constitution, which doesn’t allow pension benefits to be diminished.
The Senate President said he hoped to find 18 votes for the conference committee report, meaning Republicans would have to come up with 12.
* Cullerton also said he figures the unions will sue to block the bill on constitutional grounds…
“That’s fine with me, because if it were to pass and be ruled unconstitutional, “we go right back to the bill we passed that the unions supported, tweak it some more, get some more savings — that’s my opinion — and then pass that.”
Maybe. Or maybe a new governor comes in (Rauner, for example) and decides to dump defined benefits going forward altogether.
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Learning from the past?
Thursday, Oct 3, 2013 - Posted by Rich Miller
* Congressional Republicans got royally hammered when they shut down the government during Bill Clinton’s presidency. This time around, they appear to have learned from at least some of their mistakes. An NRCC press release…
Rep. Bill Enyart today voted against providing immediate government funding for the National Institutes of Health (NIH), the nation’s medical research agency tasked with making important medical discoveries and treating patients with the worst diseases. Recent media reports have said the NIH will have to turn away hundreds of patients, including children with cancer, due to President Obama’s government shutdown.
“How can Bill Enyart live with himself when he voted to keep Obama’s government shutdown and voted against funding for cancer patients?” said NRCC Communications Director Andrea Bozek. “Bill Enyart’s inexplicable decision to put Obama’s government shutdown ahead of cancer treatment for kids shows how wildly out of touch he is with everyone else in America.”
* They’ve successfully catapulted this issue into the mainstream. CNN…
Senate Majority Leader Harry Reid fired off over a question about whether the Democratic-controlled Senate would vote to restore funding for children undergoing clinical trials at the National Institutes of Health.
Asked by CNN Chief Congressional Correspondent Dana Bash if the Senate would follow the House’s plans to vote for a bill to fund the NIH during the shutdown, Reid blasted the GOP-controlled House and insulted Bash.
“What right do they have to pick and choose which part of government is going to be funded? It’s obvious what’s going on here. You talk about reckless and irresponsible, wow,” he said. (
* Meanwhile, freshman Republican Rodney Davis is still struggling with his effort to placate both sides…
A Davis constituent tells The Huffington Post that a Davis aide told him Wednesday, “Congressman Davis is prepared to vote ‘yes’ on a clean [Continuing Resolution that funds Obamacare along with the rest of the government].” Asked for comment, Davis spokesman Andrew Flach told HuffPost that Davis isn’t “going to speculate” on what bills may come up in the House and “will continue to vote for proposals brought to the floor that will fund the federal government.”
…Adding… From opposition research specialist Will Caskey in comments…
Rich, just FYI, Rodney Davis voted against a full/clean CR yesterday. Democrats brought it up in a motion to recommit on the latest mini-CR. It was ruled out of order, which can be overruled by a simple majority.
Davis along with every Republican voted to table the motion: http://clerk.house.gov/evs/2013/roll512.xml
So if he is saying he’s prepared to vote for a clean CR he’s lying.
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Rough waters ahead?
Thursday, Oct 3, 2013 - Posted by Rich Miller
* Greg Hinz takes a look at the ADM subsidy bill, which would provide the company with about $1.2 million a year in EDGE tax receipts for 15-20 years…
At a hearing yesterday of the House Revenue Committee, the proposal caught immediate fire from House Majority Leader Barbara Flynn Currie and others, who asked whether the cash-strapped state should be giving special help to one particular company. But the company and its new attorney — Mike Kasper, a close associate of House Speaker Michael Madigan — responded by withdrawing the request for the utility-tax break, and suggesting that the firm really likes Illinois.
But even if Mr. Madigan signs on to the bill — Revenue Committee Chairman John Bradley says he has “no idea” when and if the bill might come up for a vote — the measure now is opposed by [Sen. Andy Manar]. He’s former chief of staff to Senate President John Cullerton, whose chamber is more liberal and has been more resistant to corporate handouts than the House.
Specifically, Mr. Manar said he’ll oppose the bill unless ADM effectively replaces the headquarters jobs by adding 100 slots elsewhere in Decatur.
“I don’t think we can ignore the fact that Decatur has the highest unemployment level in the state,” as high as 25 percent in some neighborhoods, Mr. Manar said — particularly when the company wants a subsidy to move jobs within Illinois.
ADM’s spokeswoman said the company “is negotiating” with Mr. Manar and will not comment on those talks right now.
* And Bernie reports that Cullerton is standing with Manar…
Cullerton said he would like to see the corporate headquarters of Archer Daniels Midland Co. stay in Illinois. […]
“Whether we should incentivize them is another question,” Cullerton said, noting Decatur’s high unemployment rate. He said any tax incentive should be tied to doing something to “make up for that loss of jobs in Decatur.”
* Back to Hinz…
Meanwhile, neither Mr. Quinn’s office nor the state’s Department of Commerce and Economic Opportunity had a comment on where he stands on the matter. That’s likely an indication that a governor who doesn’t much like corporate subsidies in the best of circumstances doesn’t want to expend any political capital on a bill that’s in trouble.
Actually, the governor appears to love these subsidies. It was a last-minute EDGE credit to Ford that resulted in lots more jobs which helped save Quinn’s behind in the 2012 Democratic primary.
However, there is word from inside that the governor isn’t all that enthusiastic about this specific ADM proposal as-is. The fact that he has refused comment so far is, indeed, telling.
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