Fitch downgrades Illinois
Monday, Oct 19, 2015 - Posted by Rich Miller
* Reuters…
Illinois’ credit standing took another hit on Monday as Fitch Ratings downgraded the state’s rating for the first time on Governor Bruce Rauner’s watch, citing the deterioration of state finances during its four-month budget impasse.
The downgrade is the most potent sign yet that the stalemate between Republican Rauner and Democrats who run the legislature - which has taken a bite out of state services - is making Illinois’ already-precarious standing on Wall Street worse.
The one-notch downgrade from A-minus to BBB-plus, affecting $26.8 billion of general obligation bonds, leaves Illinois as the only U.S. state with a rating in the low investment grade triple-B level. Fitch has previously dropped only California to that level in 2003 and 2009, according to Karen Krop, a Fitch analyst.
* The AP’s she-said, she-said…
Catherine Kelly is spokeswoman for Republican Gov. Bruce Rauner. She says Rauner is fighting to “put the state on the path to fiscal health,” but the Democrat-led Legislature is standing in his way.
Rikeesha Phelon is spokeswoman for Democratic Senate President John Cullerton. She says Illinois can’t afford for Rauner “to prioritize his corporate class agenda over basic budget math and governing.”
* Full statement from Speaker Madigan…
“As I’ve been telling Governor Rauner for several months, the number one problem facing Illinois is the state budget. The lack of a resolution on the state budget and today’s downgrade are direct results of the governor’s continued focus on issues other than solving our budget crisis. It’s time we put aside the governor’s list of issues that Democrats and Republicans believe will hurt middle-class families and instead focus on a budget that helps all Illinoisans.
“Fitch Ratings agrees with my view. Nowhere in Fitch’s statement does it suggest that the state needs to follow the governor’s agenda by weakening collective bargaining rights, reducing workers’ wages and hurting the middle class.
“I continue telling the governor we need to take a balanced approach to the state’s financial challenges, one that includes some cuts, like those included in the budget passed by the Legislature in May, and new revenue. Today’s news is another reminder to the governor that it’s time to focus on our budget.”
* From Fitch…
Fitch Ratings has downgraded the rating on $26.8 billion in outstanding Illinois general obligation (GO) bonds to ‘BBB+’ from ‘A-’.
In addition, the ratings on bonds related to the state based on its appropriation have been downgraded to ‘BBB’ from ‘BBB+’ as detailed at the end of this release.
The Rating Outlook has been revised to Stable from Negative.
SECURITY
Direct general obligation, full faith and credit of the state of Illinois
KEY RATING DRIVERS
REDUCED FLEXIBILITY: The downgrade reflects the continued deterioration of the state’s financial flexibility during its extended budget impasse. Illinois’s inability to balance its operations, eliminate accumulated liabilities, and grow reserves during a period of economic expansion leaves it far more vulnerable to the next economic downturn.
ONGOING BUDGET GAPS: After four years of nominally balanced operations that benefitted from temporary tax increases, the fiscal 2015 budget was only balanced through extensive one-time action and a budget has not been enacted for fiscal 2016, which began on July 1. The state continues to spend in most areas at the fiscal 2015 rate, which is expected to lead to a sizeable deficit. As was the case during the most recent recession, this deficit spending is likely to be addressed by deferring state payments and increasing accumulated liabilities.
LONG TERM LIABILITIES HIGH: The state’s debt burden is above average and unfunded pension liabilities are exceptionally high. The state has limited flexibility with regard to pension obligations following the May 2015 Illinois Supreme Court decision that found the 2013 pension reform unconstitutional. Pensions remain an acute pressure on the state’s fiscal operations.
ECONOMY A CREDIT STRENGTH BUT RECOVERY WEAK: The state benefits from a large, diverse economy centered on the Chicago metropolitan area, which is the nation’s third largest and is a nationally important business and transportation center. Economic growth through the current expansion has lagged that of the U.S. as a whole.
RATING SENSITIVITIES
The Stable Outlook incorporates the expectation that the state of Illinois will use one-time solutions to nominally balance the fiscal 2016 budget, but will not achieve more permanent, structural solutions in a time frame that will have a significant impact on fiscal 2016.
Failure to enact measures that lead to ongoing budget balance beyond fiscal 2016 could lead to negative rating action.
Successful implementation of measures to enact a structurally balanced budget and reduce accumulated budget liabilities may lead to positive rating action.
CREDIT PROFILE
The downgrade on the GO bonds of the state of Illinois to ‘BBB+’ from ‘A-’ reflects the deterioration of the state’s financial flexibility as its budget stalemate continues deep into the current fiscal year. With the national economic expansion now extending into a sixth year, Illinois has failed to capitalize on economic growth to restore flexibility utilized during the last recession or to find a solution to its chronic mismatch of revenues and expenditures. Once again, the state has displayed an unwillingness to address numerous fiscal challenges, which are now again increasing in magnitude as a result.
Temporary increases in personal and corporate income tax rates in place for four years, from January 1, 2011 through December 31, 2014, closed or partially closed the budget gap across five fiscal years. However, with their expiration, and the failure to enact a spending plan within expected revenues, the budget gap has ballooned. As a result, the state finds itself with a current operating deficit, structural budget deficit, cash crunch that is now causing a delay in pension system contributions, and accumulation of accounts payable that approaches its highest level at the depth of the recession. As the fiscal year progresses, fewer options remain for closing the gap on a current year basis, pushing the potential solutions into fiscal 2017.
ONE-TIME SOLUTIONS CLOSED 2015 GAP
The current budget stalemate follows a fiscal 2015 when a significant gap was closed primarily through the use of one-time fund sweeps rather than on-going spending or revenue action. The enacted budget for fiscal 2015 relied on approximately $2 billion in one-time revenues to achieve balance, given the anticipated expiration of the temporary taxes half-way through the fiscal year. These included interfund borrowing, use of prior year surplus to prepay fiscal 2015 Medicaid expenses, underfunding of specific budget line-items, and an increase in anticipated accounts payable.
Upon taking office in January 2015, and finding a budget gap that was larger than expected, the current administration proposed, and the legislature enacted, an additional $1.3 billion in fund sweeps and approximately $300 million in budget reductions. However, the lack of a structural solution in fiscal 2015 left the state in a weak fiscal position in developing the fiscal 2016 budget.
FISCAL 2016 SPENDING SUBSTANTIALLY ABOVE EXPECTED REVENUES
The governor and state legislature have not come to agreement on a spending and revenue plan for the current fiscal year, which began July 1, 2015, for which there is a large projected deficit that reflects the full-year impact of the temporary tax expirations.
Despite the absence of an enacted budget, due to continuing and permanent appropriations, court orders and consent decrees, and an enacted appropriation for schools, the state is spending approximately 85% of its budget at the fiscal 2015 enacted rate during the budget impasse. Continuing to spend at this rate, without further appropriations or other changes, is forecast to lead to an annual operating deficit of approximately $2.1 billion, or 6.8% of forecast revenues. This deficit would most likely be addressed by an increase to the accumulated accounts payable balance.
Fitch believes that this deficit figure is likely to be higher, as it incorporates the state withholding $5.9 billion in spending for universities, the group health insurance program, and a variety of other programs, some of which would ultimately have to be covered with state revenue. The state notes that it has already taken approximately $1 billion in actions to reduce spending and reallocate funds to the general fund.
Emphasis added.
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Question of the day
Monday, Oct 19, 2015 - Posted by Rich Miller
* AP…
The Illinois Gaming Board plans to seek a legal opinion on whether daily fantasy sports websites like those ordered shut down in Nevada violate state law.
Spokesman Gene O’Shea said Friday the board believes sites like DraftKings and FanDuel are illegal in Illinois. He says the board will likely send a letter next week asking Attorney General Lisa Madigan for an opinion because it doesn’t have authority to take action.
Nevada regulators on Thursday ordered the sites to shut down, saying they can’t operate in the state without a gambling license.
The sites insist they’re skill-based — not chance-based — wagers and therefore not subject to gambling regulations.
* The Question: Should those ubiquitous fantasy sports betting sites be banned in Illinois? Take the poll and then explain your answer in comments, please.
picture polls
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* Reboot…
In its Oct. 19 Credit Outlook report, Moody’s focuses on last week’s announcement by Comptroller Leslie Geissler Munger that cash flow problems due to the state budget impasse will force the state to delay its scheduled November payment to the state’s five public pension systems. Moody’s deems that action as a “credit negative” — meaning it could negatively affect the state’s credit rating if not corrected.
“The delay, which was made because the state’s cash on hand is insufficient to meet all of its payment obligations, reflects Illinois’ outsize unfunded pension obligations, the lapse of an existing tax package that would have yielded roughly $5 billion in the current fiscal year, and the continued failure of the state’s political leadership to enact a fiscal 2016 budget. The underpayment also ensures the continued deterioration of Illinois’ pension plans’ funding status,” says Moody’s spokesman David Jacobson. […]
In its Oct. 19 Credit Outlook report, Moody’s focuses on last week’s announcement by Comptroller Leslie Geissler Munger that cash flow problems due to the state budget impasse will force the state to delay its scheduled November payment to the state’s five public pension systems. Moody’s deems that action as a “credit negative” — meaning it could negatively affect the state’s credit rating if not corrected.
“The delay, which was made because the state’s cash on hand is insufficient to meet all of its payment obligations, reflects Illinois’ outsize unfunded pension obligations, the lapse of an existing tax package that would have yielded roughly $5 billion in the current fiscal year, and the continued failure of the state’s political leadership to enact a fiscal 2016 budget. The underpayment also ensures the continued deterioration of Illinois’ pension plans’ funding status,” says Moody’s spokesman David Jacobson. […]
“The state’s $6.7 billion pension contribution for the fiscal year that ended June 2014 was more than 10% of its total governmental revenues, but still short of the $7.8 billion that would have met its actuarial required contribution, a minimum standard needed to achieve full funding. The underpayment ensures the continued deterioration of Illinois’ pension plans’ funding status. Furthermore, the gap between the state’s statutory contribution and the amount that would reasonably amortize its pension liability is only a portion of the state’s structural imbalance, which has resulted in repeated and large payable balances at fiscal year-ends.”
* Gov. Rauner has a new plan, according to the Illinois Policy Institute’s news service…
During a town hall meeting in Decatur, Illinois’ Governor repeated his call for structural reforms and a balanced budget and also laid out a few details about how he wants to reform pensions. Governor Bruce Rauner said there must be changes to the pension system and said he has a constitutional fix. His idea includes a new deal moving forward.
“People can keep their old deal if they want but then their salary increases don’t go into the pension. Or they can have their salary increases count towards their pension if they get into a new deal.”
To encourage workers to enter a potential new tier, the Governor said there would be incentives offered. If the plan is passed by the General Assembly and implemented, Rauner said there would be big savings.
“And if we do that we can save $2 billion for you as taxpayers.”
The Governor said his administration has researched the proposal and said it is constitutional.
It’s not exactly a new idea, but whatevs.
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* Press release…
Chicago business and labor leaders have joined United Way of Metropolitan Chicago in calling for an end to the months-long state budget impasse.
In a press event on October 19, Paul La Schiazza, President of AT&T Illinois and Jorge Ramirez, President of the Chicago Federation of Labor, joined United Way President and CEO, Wendy DuBoe, in calling for a resolution to the now 4-month long budget stalemate. New results from a survey of more than 500 human service agencies conducted by United Way of Illinois show the further deterioration of the human services sector and the citizens it serves. The event was held at Access Living, one of the many human service agencies in the region that has been impacted as a result of the state budget impasse.
“These survey results highlight the impact of the budget stalemate on children, families and entire communities,” said Wendy DuBoe, President and CEO of United Way of Metropolitan Chicago, “As the largest private funder of human services in the region, United Way of Metropolitan Chicago has a responsibility to bring people from across sectors together to urge Illinois lawmakers to come to a resolution.”
Key findings from the survey show that children, low-income families and the mentally ill continue to suffer the effects of inaction in Springfield.
• 84% of respondents have cut the number of clients they serve (up from 34% in July)
• 79% of respondents have cut programs, most impacting children and working adults
“The labor movement works every day through organizations like the United Way and its partners to help those in need, but it’s no substitute for the safety net our government is morally obligated to provide through the social contract,” said Jorge Ramirez, President of the Chicago Federation of Labor, “The delay in resolving the state budget marginalizes the most vulnerable segment of our society. Irreparable harm is being done to programs that support adult education and employment. It threatens our state’s economic viability and is counterproductive to the state’s economic interests.”
Survey findings also highlight the measures that human service agencies reported taking to maintain operations and serve clients during the stalemate.
• 31% of respondents have one month or less of cash reserves
o 8% of agencies have already utilized their full cash reserves
• 25% of agencies have tapped into lines of credit, and of those, 58% are more than $50,000 in debt as a result of the impasse
• 22% of agencies have been forced to layoff staff
“Without a budget resolution, human service organizations are tapping into cash reserves, exhausting their reserves in some cases and finding it necessary to take out lines of credit. Further, the impasse is forcing them to layoff staff and reduce hours,” said Paul La Schiazza, president, AT&T Illinois, “I’m not picking sides or casting any blame. However, to help people and families in need – and the human service agencies that are struggling to support them—Illinois needs a state budget resolution soon.”
This is the second survey conducted by United Way of Illinois on the state budget stalemate. The survey was conducted September 28-October 2 2015, and responses were received from 544 human services agencies across every county in Illinois. Survey respondents represented a range of service categories including youth development, early childhood education, mental health, emergency housing, senior services and employment training, and varied in budget size from less than $500,000 to more than $15 million.
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* As if that building isn’t in bad enough shape…
* From CMS…
Notice Type: Emergency Procurement
Published: 10/19/2015
Notice Expiration Date: 10/30/2015
Emergency Justification: The current vendor chose to stop working under the current contract becase a lack of payment from the State. The emergency contract is necessary until a competitive bid can be completed
Accordance with Admin Rule: Minimize serious disruption to critical state services that affect health, safety, or collection of substantial state revenues, Protect against further damage to state property
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The waiting game
Monday, Oct 19, 2015 - Posted by Rich Miller
* I’m not sure that Rep. Sandack understood what Rep. Zed was saying here…
To my eyes, anyway, Zed was saying, “Hey, Ron, you may think we’re dying to vote for a tax hike and to bail out the City, but we’re not really crazy about doing it, so maybe we should try something else besides this Turnaround Agenda.”
Rep. Sandack, however, is apparently of the belief that the City’s problems will force Statehouse action to his guy’s favor. He could be right. It’s gonna get pretty darned awful.
* Rep. Sandack is not alone. Tribune editorial board…
Rauner has tried to compromise. He put the option of new taxes on the table to help balance the budget. He is asking for common-sense reforms, including giving voters a greater voice in their government — the chance to vote for term limits and redistricting reform — and labor-rule changes that would attract employers.
But Madigan and Cullerton refuse to meet him halfway. On anything.
In September we urged Rauner to set a deadline for a budget deal. Enough with the nonsense. Declare that after a certain date, the offer of higher taxes vanishes: “If there’s no deal by a date certain — how about Nov. 1? — then set the rest of your agenda aside for another day, another year. But make it clear to Democrats that their failure to reach a deal with you by that date locks in how much money Illinois will have to spend.”
Nov. 1 is two weeks from Sunday.
Taking taxes off the table would disappoint those who think state government is well-run and can’t economize.
I would love to see the governor finally introduce a balanced budget without gigantic pension gimmicks and tax hikes. Really, I would. Do it, man.
* And speaking of Chicago…
Determined to bite the bullet and get it over with, aldermen on Monday questioned why Mayor Rahm Emanuel is not proposing an even bigger property tax increase instead of assuming that Gov. Bruce Rauner will sign a bill that gives Chicago more time to shore up police and fire pensions.
“What I’m detecting here is an appetite to get this over with one way or the other and not keep coming back and doing it again and again,” said Ald. Edward Burke (14th), chairman of the City Council’s Finance Committee.
In proposing a four-year, $543 million increase for police and fire pensions, Emanuel is making a rosy and risky assumption that, if he’s wrong, would make the financial hit absorbed by Chicago taxpayers significantly worse.
The mayor is assuming that Gov. Bruce Rauner will sign legislation — approved by the Illinois House and Senate, but not yet on the governor’s desk — giving Chicago 15 more years to ramp up to 90 percent funding level for the police and fire pension funds. […]
“Would it not be more intelligent to levy at that amount — $220 million or whatever it is — and then abate … when the governor signs it?” Burke said.
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Kirk lauded by gun control group
Monday, Oct 19, 2015 - Posted by Rich Miller
* Illinois Review…
Those that are promoting stringent federal and state gun control will be honored Monday by the Illinois Council Against Handgun Violence, their website says.
Among those receiving awards from the group are Republican U.S. Senator Mark Kirk, Democrat state Representative Kelly Cassidy and former Illinois Council Against Handgun Violence executive director, Democrat former State Senator Dan Kotowski.
Senator Kirk is the only Republican in the U.S. Senate that received an “F” from the National Rifle Association and an “F-” from the Gun Owners for his support of gun control measures.
* According to Kirk’s office, he’s the first GOP Senator to ever get the award…
Kirk Is First Republican Senator to Receive Illinois Coalition Against Handgun Violence Lincoln Award for Leadership in Confronting Gun Violence
Kirk, Gillibrand Introduced S.1760 to Make Gun Trafficking a Federal Crime
Sixty Percent of Illegal Guns in Chicago Come From Out of State
CHICAGO – U.S. Senator Mark Kirk (R-Ill.) today received the Abraham Lincoln Award from the Illinois Coalition Against Handgun Violence (ICHV) in recognition of his leadership on legislation to make gun trafficking a federal crime and strengthen background checks. Senator Kirk is the first Republican U.S. Senator to receive the award.
“Illinois families shouldn’t have to live in fear of armed gangs and criminals,” Senator Kirk said. “The Gillibrand-Kirk bill would make it illegal to bring guns used for criminal activity into Chicago - where Indiana, Wisconsin and Mississippi alone are responsible for 30 percent of guns at crime scenes.”
“Senator Kirk was there for us when we needed him most, and crossed party lines to support universal background checks. His courage and leadership truly symbolize the purpose of the Lincoln Award,” said ICHV Executive Director Colleen Daley. “As much as we fight at the local level for common sense gun laws, the fact remains that more than 60 percent of all crime guns in Chicago are illegally trafficked from states with weaker gun laws, like Indiana and Mississippi. The Senator’s support on this issue is critical to public safety, and we are incredibly grateful to him.”
The Illinois Council Against Handgun Violence is a statewide, non-profit organization that works to reduce death and injury caused by guns. Previous winners of the Lincoln Award include New York Mayor Michael Bloomberg, President Bill Clinton, Chicago Mayor Rahm Emanuel, U.S. Senators Dick Durbin (D-Ill.) and Dianne Feinstein (D-Calif.), and Education Secretary Arne Duncan.
Illinois’ last Republican US Senator, Peter Fitzgerald, was no fan of the NRA, but Kirk has taken it further.
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Putting human faces on rule changes
Monday, Oct 19, 2015 - Posted by Rich Miller
* Erickson…
A hearing Tuesday will focus on the Rauner administration’s attempt to roll back an increase in the personal allowances received by developmentally disabled residents.
In 2014, the Legislature boosted the allowance to $60 per month. It returned to its previous levels of $30 and $50 on July 1.
After reading about the upcoming hearing, Barbara Thomas of Charleston got in touch.
Here’s what she wrote:
“Whether it’s $30 or $60, it’s not enough to cover personal expenses of anyone, whether the person has a disability or not. That so-called allowance is supposed to pay for much more than snacks, toiletries and entertainment. Individuals with disabilities must pay for clothing, dental care, podiatry, medication co-pays, psychiatric visits, and if there is money left (seriously), they will have money for snacks and entertainment.
“I have a son receiving residential services… I pay for my son’s dental care, give him spending money, buy his clothing, buy his bedding, etc. I do it willingly and with love. He is my son and deserves a quality of life that is more than ‘eats and sheets.’ The real question is what happens to the individuals who don’t have anyone to subsidize their care.”
* From a press release…
Gov. Rauner is making it official: His administration is amending the Illinois Administrative Code to slash the personal needs allowance for persons in developmental disability group homes from $60 a month to $50. A hearing is scheduled Tuesday.
Disability consultant Ed McManus today called the move “outrageous” and issued a plea to families, provider agencies and the public to oppose it.
“Is this what we have come to?” said McManus. “Our people with intellectual and developmental disabilities have no money of their own to take care of their personal needs. We’re talking here about shampoo, deodorant, a haircut, a movie, a cup of coffee. So the state for years has at least been allotting them $50 a month; in intermediate care facilities it has only been $30.
“Last year, the legislature increased the allotment to $60 for both group homes and intermediate care facilities; the statutory increase was for Fiscal Year 2015 only, with the expectation that the Administrative Code would be amended. And in March, Rauner’s Department of Healthcare and Family Services did just that—they revised the code to make the increase permanent—or so we thought. The increase had a cost of only $3 million a year out of a $30-billion-plus state budget. The allowance goes to 16,000 people.
“In late June, the Division of Developmental Disabilities issued an information bulletin stating that the allowance was being rolled back to the previous levels, effective June 30, the end of the fiscal year. This was clearly illegal, in view of the increases enacted in March. Now, four months later, the administration is finally at least following proper procedure for proposing an amendment to the code.
“Unfortunately, the governor and his staff have provided no coherent explanation for why they don’t think people with disabilities deserve the extra few dollars. Frankly, I didn’t think they’d stoop this low.”
The public hearing on the proposal will be held at 1 p.m. Tuesday at the Prescott E. Bloom Bldg., 1st floor conference room, Springfield.
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Today’s number: $57.5 million
Monday, Oct 19, 2015 - Posted by Rich Miller
* Friday afternoon press release…
Governor Bruce Rauner released his 2014 federal and state 1040’s, reflecting income and tax rates, while detailing the Rauner family’s charitable and community giving last year.
Last year, the Rauners paid more than $18 million in federal and state taxes on income of $58.3 million for a total effective tax rate on income of more than 31%. Their federal effective tax rate on income exceeded 26%.
In addition, the Rauners and their family foundation made charitable contributions totaling more than $3.3 million.
Rauner 2014 Tax Summary:
Income on Federal Return: $58.3 million
Adjusted Gross Income on Federal Return: $57.5 million
Federal Income Taxes Paid: $15.2 million
Federal Effective Tax Rate on Income: 26.1%
Federal Effective Tax Rate on Adjusted Gross Income: 26.4%
Illinois Net Income on State Return: $58.7 million
Illinois Income Taxes Paid: $2.8 million
If you’re keeping track, he paid a 26.4 percent effective federal rate on his income last year. That’s well below the 39.6 percent top federal rate that quite a few folks with much, much smaller incomes pay, but that’s because much of his income is from capital gains.
* Tribune…
Even so, a bare-bones version of such information can be gleaned from the 1040s. It shows, as it has in prior years for Rauner, that the bulk of his income comes from revenue categories that qualify for tax rates discounted well below the 39.6 percent top federal tax bracket for high earners. As such, the $15.2 million in federal taxes paid by Rauner were equivalent to just 26 percent of his income.
More than 60 percent of Rauner’s income — $35.4 million — was listed as coming from capital gains, a preferential tax category on which he would owe a 20 percent rate. At the same time, Rauner reported more than $7.6 million in losses in a different business related income category where the top 39.6 percent tax rate would apply if had reported making money.
He also reported paying $151 in the tax imposed on the self-employed as a substitute for Medicare and Social Security taxes. For most wage earners, those taxes are deducted routinely from their paychecks.
Rauner also released the cover sheets for his Illinois tax return. They showed he paid $2.8 million in state taxes in 2014, the last year for which the flat state income tax rate stood at 5 percent.
The tax returns are here.
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Symbolism rampant in Thompson Center sale
Monday, Oct 19, 2015 - Posted by Rich Miller
* My weekly syndicated newspaper column…
Last week, Governor Bruce Rauner said that he had spoken with both Senate President John Cullerton and House Speaker Michael Madigan about his proposed sale of the state’s Thompson Center building in Chicago, and that both men were “forward leaning and positive” about the plan.
So I checked in with the legislative leaders, and that’s not exactly what I heard.
“The governor and President Cullerton spoke,” said the Senate President’s spokesperson Rikeesha Phelon. Okay, so far so good. At least these weren’t “phantom” phone conversations like the ones Governor-elect Rauner claimed he had with those two on election night last November, but didn’t.
“We will take a look at the specifics of the plan in light of state statutes regarding property control and facility closures,” Phelon continued.
Um, wait. That doesn’t sound all too “forward leaning and positive.” I asked Phelon: Is Cullerton positive about this at all?
“I would say the word is ‘open,’ but under review,” she replied.
Speaker Madigan’s spokesman Steve Brown said afterward that he’d allow Phelon’s comments to stand for his guy.
So what’s going on? I’m not totally sure, but the governor now has yet another new “ask” for the Democratic leaders, and as we’ve seen during this excruciatingly long state-government impasse, they’re not in much of a giving mood – and he isn’t either.
The Thompson Center has become a symbol for much that has gone wrong with this state. The skyscraper was a grandiose design with numerous flaws. Its construction heralded the beginning of the move of much of the state’s governmental business from Springfield to Chicago.
Despite its architect’s claim last week that it was designed to represent the “openness and transparency” of state government, it was harshly criticized from the start for including a “private elevator” for the governor’s personal use. Like seemingly everything else in this state, the building was then allowed to deteriorate over the years. It’s infested with cockroaches and had to be sprayed for bed bugs not long ago.
Architecture often involves clashes over ideals, and this proposed Thompson Center sale feels like one more attempt at a dramatic break with the past.
The building’s legendary namesake, 14-year Governor James R. Thompson, actively sought organized labor’s political support – including from the state government union AFSCME – and was the most memorable purveyor of this state’s “Republicrat” politics that our current anti-union governor is now attempting to demolish along with his building.
It’s also fitting that Rauner’s move would get caught up in the current gridlock.
Check out the joint statement released last week by the House and Senate Republican leaders regarding the proposed sale.
“We filed House Bill 4313 and Senate Bill 2187 at the request of Governor Rauner. The James R. Thompson Center is in complete disarray due to years of neglect by previous administrations and better utilizing this asset would benefit Illinois taxpayers tremendously. It has become a white elephant for the State of Illinois. This legislation will enable us to review all of our options to maximize the overall value of the property and secure the greatest savings for taxpayers.”
Notice anything missing? How about a pledge to work cooperatively with others in the General Assembly to achieve the governor’s goal?
For their part, the Democrats are reluctant partly because they see this as a media-motivated sideshow – a way for the governor to show he’s making progress when the government is in reality mired in stagnation.
However, the Democrats have produced more than their share of sideshows this year, with the endless committees of the whole and the staged votes on bills designed to go nowhere.
Governor Rauner also stopped in Quincy last week and claimed he was “negotiating” with the Speaker and the Senate president and making some progress on ending the months-long stalemate.
But I’m told he met personally with the Senate President a couple of weeks earlier and it apparently went nowhere. The governor reportedly brushed off legal questions about the Thompson Center sale during a subsequent phone call with Cullerton as a pesky matter for the lawyers to figure out. Then, of course, Rauner had two bills introduced without asking for assistance.
Governor Thompson had his faults, and he didn’t always get his way. But he never would’ve let a political stalemate hurt this state like we’re seeing now.
I never much cared for the Thompson Center, but in my mind it’s become a sad, dilapidated symbol of a government that, like the man the building was named after, used to work.
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* My Crain’s Chicago Business column…
Former Chicago Public Schools CEO Barbara Byrd-Bennett and her indicted pals apparently were quite a group of grifters.
If the U.S. attorney’s office is right, they successfully concealed their graft from some pretty important and powerful people, including a mayor, a financial titan, a future governor and a future U.S. Senate candidate.
How could so many well-educated, successful people drop the ball so badly?
Mayor Rahm Emanuel, former investment banker and chief of staff to President Barack Obama, flat out denies knowing anything about Byrd-Bennett’s nefarious activities. The Northwestern University alum says he never met her alleged benefactor, Gary Solomon, a high-flying education consultant who allegedly promised to pay “B-3,” as Emanuel affectionately called her, hundreds of thousands of dollars under the table for feeding him school contracts. Emanuel’s denials came after the Chicago Sun-Times reported that Solomon was involved in the hiring of both B-3 and her predecessor, Jean-Claude Brizard, by the mayor’s handpicked school board.
Solomon’s infamous Supes Academy training program for principals was started at CPS with seed money from the Chicago Public Education Fund, which has been heavily financed and even at one time was chaired by former private-equity investor Bruce Rauner. Rauner, who received his MBA from Harvard University and helped make Emanuel a millionaire, denied to the Chicago Tribune in April that the fund had a role in getting Supes the schools contract, saying that the fund was merely a “facilitator for what the mayor or the schools or the leadership wanted to do.”
Click here to read the rest before commenting, please. Thanks.
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An evolving statement
Monday, Oct 19, 2015 - Posted by Rich Miller
* Gov. Rauner was in Quincy last Thursday around noon…
The governor on Thursday said Chicago’s financial problems will push a budget deal in Springfield.
“I’m cautiously optimistic that we’re going to get (a budget) in the next 60 to 90 days, frankly, if for no other reason than Chicago needs help and I said I’m willing — I’m not going to do a bailout, but I’ll help Chicago solve its own problems by giving them the power to do it, but only if Chicago is helping us get reforms at the state. This is a two-way partnership … and Chicago needs help in December and January, big, big help,” Rauner said during an appearance in Quincy.
* Rauner spoke in Decatur at 11 o’clock Friday morning…
An opening in the state budget stalemate may come in the form of financial problems for the city of Chicago.
Speaking a town hall-style meeting in Decatur, Rauner hinted he may be able to use Chicago’s demands of the General Assembly—including $480 million in pension assistance needed by the beginning of 2016 to avoid large teacher layoffs at Chicago Public Schools—to get Democratic support on some of his own proposals.
“I’m cautiously optimistic because of Chicago’s financial challenges,” Rauner said. “They need some help in December. Maybe in December or January, maybe they’ll be enough incentive to compromise and we’ll be able to get something done, but I don’t know, it could be longer.”
* And the governor spoke in Springfield Friday afternoon at 1 o’clock…
Pressed on Friday whether [his Quincy remarks] meant Emanuel had promised to push his agenda in Springfield, Rauner was more cautious.
“I don’t want to over-commit on the time frame, we should have had a budget in May,” Rauner told reporters gathered in his Capitol office for an announcement on a Springfield high-speed rail issue. “I believe that there’s a lot of pressure, a lot of incentive to get something done given Chicago’s issues, in December. That’s true.
“Will we get it done in December or early January? I hope that it’s before then. But it could well last a lot longer,” he said. […]
“As I’ve said before to the governor, I’m not going to agree to right-to-work, I fundamentally, on principle, don’t agree with that, so I won’t support you,” Emanuel said in Chicago. “Having supported workers’ comp before, in 2011 when we passed the last major reform of workers’ comp, there’s a place I’ll work with you. And I want to see a municipal part of that because, as one of the largest employers in the state, we have a vested interest in reform to workers’ comp.”
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“He might want to”
Monday, Oct 19, 2015 - Posted by Rich Miller
* Former Gov. Jim Edgar on Gov. Bruce Rauner...
“He does not come from government,” Edgar said of the governor, who was a venture capitalist. “He doesn’t even really come from mainstream business. He comes from (being an) entrepreneur where you buy a business, you tear it apart and you sell it. … I don’t think you’re going to tear apart the state and sell it. He might want to, but you can’t do that.”
Oof.
* More…
If Rauner thinks Democrats will “cave” under pressure, Edgar added, “I don’t know if they are. … There’s some basic things that he’s trying to get that I’m not sure they will ever give up.”
Rauner ran television ads against Madigan in June. He also told reporters that month that he thought Madigan and Cullerton had a “conflict of interest with taxpayers” because they work for law firms that handle property tax appeals.
“I don’t think those comments help,” Edgar said. He said he doesn’t think the ads “softened up the Democrats any. I think, if anything, they probably got a little more dug in.”
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[Comments have now been opened.]
* First Jim Edgar, and now the governor’s very own hand-picked comptroller…
Gov. Bruce Rauner should give up his attacks on unions to help agree on a budget with Democratic lawmakers and end the spiraling crisis in Springfield, Illinois Comptroller Leslie Munger said Friday. […]
Asked if Gov. Rauner should stop targeting unions during a news conference in Moline Friday, Ms. Munger, said, “I don’t think it’s productive, I think we’ve got to work together, personally.
“I don’t think it helps to pit people against one another, to be completely honest,” she said. “I believe we need to be all working together to solve the problems in Illinois.” […]
She said the solution to the crisis was to cut spending and raise revenue. Both sides need to compromise, although there’s no sign of that happening at the moment, Ms. Munger said.
Although Ms. Munger said Gov. Rauner should stop attacking unions, she voiced support for the governor’s proposed reforms to tort laws and workers compensation. The goal in both areas is to reduce costs for businesses, she said.
* And speaking of Jim Edgar, Bernie caught up with him late yesterday…
The lack of a budget four months into the fiscal year has destabilized state government, and Republican Gov. Bruce Rauner should quit holding a state spending plan hostage to a list of demands because permanent damage is being done, former Gov. Jim Edgar said Friday.
“State government’s probably in the worst state it’s been in the 47 years that I’ve been around (it),” Edgar, a fellow Republican, told The State Journal-Register in an interview from his Springfield home. “You’ve got dozens and dozens of programs that aren’t being funded, agencies that are having trouble doing their mission, and I just think it’s very unfortunate.”
“We need a budget,” he added. “These other issues, they’re important, some of them I think more important than others, but you don’t hold the budget hostage to get those. … It has been very destabilizing for state government. I think a lot of people have suffered.” […]
“An unstable state government — and that’s what we have right now, very unstable — is a detriment to economic growth,” he said. “I mean, folks aren’t going to come to this state and make an investment if they think state government’s dysfunctional.” […]
“One of the strengths this state’s had for years is … a great higher education system,” he said. “I think that is in jeopardy now.”
There’s lots more, so go read the whole thing.
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* From a press release…
Governor Bruce Rauner today accepted the resignation of Abraham Lincoln Presidential Library and Museum Director Eileen Mackevich. Rauner appointed current ALPMA Chief of Staff Nadine O’Leary as Acting Director. A national search for a permanent replacement is underway.
I’ve known Nadine for longer than I can remember. She’ll keep it together while they look for a replacement.
* Illinois Times…
Mackevich resigned today after a meeting with top aides to Gov. Bruce Rauner.
“I resigned as of today,” Mackevich said. “I resigned for multiple reasons.”
Asked if she was asked to resign, Mackevich responded: “I can honestly say that it was a discussion that we had, and I chose to resign.”
Mackevich, who was the ALPLM’s longest-sitting director, indicated that there may have been differences of opinion with the governor.
Good riddance.
* Meanwhile, sources close to the administration say they anticipate Illinois Historic Preservation Agency Director Amy Martin will be terminated at the next IHPA meeting on Nov 2nd.
Again, good riddance. She and Mackevich fought constantly and, in my opinion, neither one was doing what should have been done to make that museum great.
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Company says it has a 19-year lease at JRTC
Friday, Oct 16, 2015 - Posted by Rich Miller
* Problems with the Thompson Center sale? Uh-oh…
Boston-based Winthrop Realty Trust and Marc Realty of Chicago, commercial real estate investors that own the rights to about 70,000 square feet of retail space in the glassy, 16-story state office building in the Loop… which controls the food court from which Rauner made the Oct. 13 announcement, says it owns rights to lease out the space to retail tenants for at least another 19 years. Winthrop and Marc represent a significant obstacle to the state’s plan to level the Helmut Jahn-designed structure and sell the prime development land.
“We have not been contacted by the state at all,” Winthrop Chairman and CEO Michael Ashner said today in an interview. “We’ve received no notification. We understand there’s enabling legislation needed to make this (Rauner plan) happen. Up until now, we were assuming it’s business as usual, which is why we’ve invested substantial funds in the property.”
Ashner said Winthrop and Marc have 19 years remaining on a lease with the state, in which the venture pays the state rent and in turn leases out the space to restaurants and retail tenants, Ashner said. At the end of the lease, there’s a 10-year extension option that the state could decline “if they were going to do a major redevelopment,” Ashner said.
You have a lease-holder and you never talked to the company before deciding to sell?
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Question of the day
Friday, Oct 16, 2015 - Posted by Rich Miller
* I have a bunch of errands that I absolutely have to run this afternoon, so I’m gonna be gone for a bit.
We’ve got a bunch of policy stuff on the blog today, so instead of a question, how about we talk baseball?
And, by the way, I hate the Mets, but that still doesn’t mean I’m rooting for the Cubs.
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Credit Unions – Individual service, united in focus
Friday, Oct 16, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
As locally-owned not-for-profit financial cooperatives, credit unions hold a strong belief in giving back to their communities. Twenty-three chapters across Illinois unite 303 credit unions and are integral to fulfilling the financial need for nearly three million consumer members.
The Rockford Area Chapter alone serves 11 credit unions and their 88,000 members in a four county area. Similar to other credit union chapters, Rockford strongly believes in supporting their communities and collaborates on a year-round marketing campaign to facilitate making a difference.
With October designated as National Breast Cancer Awareness Month, the chapter’s latest community effort will be to sponsor the 4th Annual Pink Party/Bra Auction. This event raises money for Pink Heals of Winnebago County, a local non-profit organization that helps families dealing with cancer. All of the money donated to Pink Heals will stay local, just like credit unions. The chapter’s sponsorship can also be seen in a Rockford firefighter calendar sale, with 100 percent of the proceeds donated to Pink Heals.
Giving back to their members, causes and the communities they serve – this is the credit union difference.
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* Today’s must-listen is from the Illinois Radio Network’s John Gregory…
“Government is failing,” by going this far into the fiscal year without a budget, former Gov. Jim Edgar was quoted as saying during a lecture to political science students at the University of Illinois-Chicago.
* Edgar continued…
“We can’t hold the budget hostage for other issues. The governor talks about economic turnaround, I think some of his proposals are good. But I think we have to set priorities, and the priority, I believe, is the budget.”
Edgar also said he was worried about widespread rumors that the budget won’t be worked out until the Fiscal Year 2017 budget is about to be introduced. That, Edgar said, would be “a disaster.”
* The written story is a quite a bit more tame…
“One of the things I’ve learned as governor, you can’t do everything you want to do at one time,” Edgar said. “You’ve got to set priorities and you’ve got to wait for the ripe opportunity, and I think the priority right now has to be to get a budget.”
Edgar labeled the current stalemate as perhaps worst “mess” he’s seen in his years following state government, and he guessed that if there was ever trust between Rauner and Democratic lawmakers, it “pretty well got wiped out” by the TV ads run by Rauner’s campaign committee in June.
When asked if he had any specific recommendations for Rauner, Edgar said he’s advised the governor to focus on the budget several times, but to no avail.
Former governors rarely criticize current governors, particularly those in their same party. This is not your usual story.
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“I’ve got $400 million at risk in our city”
Friday, Oct 16, 2015 - Posted by Rich Miller
* Shia Kapos…
Chicago hotelier Laurence Geller is agitated and disappointed by the Illinois budget morass, and he’s taking political leaders to task for it.
“Please, everyone, will you just grow up? I’ve got $400 million at risk in our city,” he says, referring to the value of his two Chicago hotels, the Waldorf Astoria and soon-to-open Conrad.
Particularly galling, he says, are budget cuts at Choose Chicago, the tourism promotion group that operates, in part, with taxes collected from hotel bookings. Unlike the vast majority of the state budget, in which spending either is automatic (bond payments) or mandated by court order (some social services), funds designated for tourism promotion have been frozen while the state operates without an approved budget.
That’s correct. And the hotel tax is not GRF, so it’s yet another hostage.
* Back to the story…
“I stay away from politics,” Geller says. “But now, whether it’s the mayor, the governor or the (House) speaker, I say, ‘Please, can we have money for tourism?’ The city needs taxes. The state needs taxes. But tourism gives you taxes.” […]
Geller says “the constant series of crises every year” makes it difficult to do business and that political leaders should know better.
If our leaders in this state listen to anybody, it’s the very rich. CME thinking of moving? Give ‘em a tax break law. Giant conventions upset about costs? Whack organized labor and override a veto to do it. A group of wealthy people want education reform? Give it to them on a silver platter.
Geller maxed out to Rauner’s campaign in 2013. So, maybe if some of Geller’s wealthy pals also speak up, things will start moving.
In other words, more like this, please.
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Point taken x2
Friday, Oct 16, 2015 - Posted by Rich Miller
* At first, I was just going to update an earlier post with this e-mail from Emily Miller at Voices for Illinois Children. But then I figured it was probably worth its own post…
“Continuing to sell lottery tickets with no plan to pay winners short of saying ‘we’ll owe you’ is not only another embarrassment for Illinois, it’s a threat to the state’s overall financial health,” Franks said. “The lottery funds a number of important services and generates economic activity in every corner of our state, and that will all disappear if the lottery looks more like a shell game than an honest wager.”
This is not new with the lottery.
Does Franks know that social service providers were told to continue services at last year’s levels, but they should not expect payment unless or until there is a budget?
We’ve been operating the main functions of the state with a string of IOUs since July 1st, asking non-profits to continue providing services and make payroll with only the vaguest of assurances that they will get paid someday.
Yeah, it’s embarrassing to not be able to pay lottery winners. But it’s more embarrassing to ask non-profits to go get loans and exhaust their lines of credit and reserves so that lawmakers and the Governor can buy a little more time to make each other look bad.
How about some outrage about that?
Point taken.
* Also, somebody else pointed out to me via text that, aside from the lottery money, those other special state funds in Rep. Moylan’s bill could be swept to help close the big hole in the GRF budget.
Point taken on that, too.
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Was, not is
Friday, Oct 16, 2015 - Posted by Rich Miller
* The Illinois Policy Institute via the Belleville News-Democrat…
Illinois collects more in taxes per person than every neighboring state, according to new research from the nonpartisan Tax Foundation.
But Illinois Senate President John Cullerton, D-Chicago, thinks otherwise. “Our taxes are dramatically lower than all the states around us,” Cullerton said on WTTW’s Chicago Tonight on Sept. 28.
Cullerton couldn’t be more wrong. Illinois collects $3,008 in state-tax revenue per Illinoisan, nearly $200 more per person than the highest-taxing neighboring state, Wisconsin. Only 13 other states in the country take in more tax revenue per person than Illinois.
Notice the tense of the words “collects” and “take in” within that report, which was published yesterday.
* OK, now look at the accompanying chart…
* Notice the year studied? Fiscal Year 2014.
Do you know what Illinois’ personal income tax rate was in FY 14? 5 percent. What is it now? 3.75 percent.
I don’t know how Illinois ranks now with its lower rate, but “collected” and “took in” would’ve been a far more accurate way to describe the comparison from two fiscal years ago. New study, yes. New numbers, no. But, hey, that’s just me.
Cullerton is wrong about where we currently stand on taxes, however. Indiana’s personal income tax rate is 3.4 percent.
* Look, I happen to agree strongly with the Illinois Policy Institute that we have some huge problems here and we most certainly need some economic reforms. I wouldn’t go as far as them, but I concede the overall point.
And mistakes do happen. I make them a lot myself and I try to correct them when I do. But, dishonesty is just not acceptable.
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Release some hostages, please
Friday, Oct 16, 2015 - Posted by Rich Miller
* From the synopsis of HB4305…
Makes appropriations to the Department of Transportation from the Motor Fuel Tax Fund for specified payments to local governments. Makes appropriations to the Illinois Gaming Board from the State Gaming Fund for distributions to local governments for admissions and wager tax, including prior year costs. Makes appropriations to the Department of the Lottery from the State Lottery Fund for payment of prizes to holders of winning lottery tickets or shares, including prizes related to Multi-State Lottery games, and payment of promotional or incentive prizes associated with the sale of lottery tickets. Makes appropriations from the Wireless Service Emergency Fund and the Statewide 9-1-1 Fund to the Department of State Police for the Statewide 911 Administrator Program and for costs pursuant to the Emergency Telephone System Act, respectively. Makes appropriations from the Wireless Service Emergency Fund to the Illinois Commerce Commission for specified emergency telecommunications purposes. Effective immediately.
Those are all special funds. Not a GRF dollar in there.
You’d think this would be a bipartisan effort. So far, it’s not. The Democrats need to do a better job of bringing the Republicans in, and the Republicans need to get on board this or a similar bill.
* From a press release…
State Rep. Jack Franks, D-Marengo, is calling on legislative leaders to hold a vote on a measure he is backing to restore funding for the state lottery and release funds promised to local cities and villages in order to prevent massive property tax increases as a result of Gov. Bruce Rauner’s budget veto.
“Continuing to sell lottery tickets with no plan to pay winners short of saying ‘we’ll owe you’ is not only another embarrassment for Illinois, it’s a threat to the state’s overall financial health,” Franks said. “The lottery funds a number of important services and generates economic activity in every corner of our state, and that will all disappear if the lottery looks more like a shell game than an honest wager.”
Working to correct a situation that has generated numerous national media stories and a lawsuit against the state brought by lottery winners, Franks is calling on legislative leaders to hold a vote on House Bill 4305 when the House meets on Tuesday, Oct. 20. The legislation provides appropriation authority necessary to allow the lottery to continue paying prizewinners. Lottery winnings are paid from a dedicated State Lottery Fund, funded through ticket sales, but the governor’s veto of the state budget negated the lottery’s authority to pay the prizes owed.
The Franks-backed measure would also release dollars that municipalities receive from gaming operations and other funds collected by the state that, by law, must be shared with local governments to help repair roads, maintain public safety and provide essential services to the elderly. While the state continues to collect these funds, the governor’s veto of the state budget is preventing them from being distributed as promised. Franks is fighting to release these funds before local governments are forced to raise taxes and eliminate essential services.
“Our towns and villages build their annual budgets in part on the promise that the state will share these funds, and when the state fails to keep that promise, taxpayers are going to pay the price in the form of higher taxes,”Franks said. “Muddling through a budget crisis is no excuse for Illinois to break promises. We need to pass this bill immediately and to protect our taxpayers and the integrity of our state.”
Lots of hyperbole in that release, of course. But, in the end, he’s not wrong.
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Busting an internet troll
Friday, Oct 16, 2015 - Posted by Rich Miller
* I just don’t know what these internet trolls are thinking. Can they not edit themselves? Do they have no idea that other people are reading their words and that their stupidity will reflect on themselves? Are they just complete morons? This guy was no civil service hire. He was a political appointee who contributed money to his future boss’ campaigns. And yet he just apparently loved spewing goofiness…
The same day Cook County State’s Attorney Anita Alvarez released an Internet ad formally launching her reelection bid, word came that one of her top deputies resigned over his Internet activity – crass Facebook comments he made about Michelle Obama, Hillary Clinton, the Rev. Al Sharpton and others.
Daniel Gallagher, the $153,000-a-year chief of the state’s attorney’s civil actions bureau until he quit over the weekend following questions from the Better Government Association and FOX Chicago, posted a Facebook comment on a photo of the First Lady meeting Pope Francis in September. Referring to her weight and appearance, Gallagher wrote, “I think Moosechelle was hiding a secret service agent in the seat of her dress.”
Commenting on an article that accompanied a photo of Clinton, who is running for president, Gallagher wrote on Facebook, “As Eddie Murphy would say, ‘Da ***** ugly!’”
Some of Gallagher’s posts were time stamped during regular work hours, but Alvarez press secretary Sally Daly said she didn’t know whether he was on the clock. […]
Reached by the BGA/FOX, Gallagher confirmed the Facebook posts were his and, on occasion, that he’s been on the social media site while on the clock for county government. He said he regretted some of his words, saying of the Michelle Obama remark, “I probably shouldn’t have done that.”
But he also emphasized he had a right to free speech.
* Gallagher most certainly has a right to free speech. But with rights come responsibilities and he definitely doesn’t have a right to a job. And he lost it.
But, perhaps you disagree.
And not to point out the obvious here, but what’s a guy like that doing on the payroll of the state’s attorney? Also, it’s more than a bit ironic that his job title was “chief of the state’s attorney’s civil actions bureau.” Those posts weren’t exactly civil.
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Your translation?
Friday, Oct 16, 2015 - Posted by Rich Miller
* Geiger…
The governor on Thursday said Chicago’s financial problems will push a budget deal in Springfield.
“I’m cautiously optimistic that we’re going to get (a budget) in the next 60 to 90 days, frankly, if for no other reason than Chicago needs help and I said I’m willing — I’m not going to do a bailout, but I’ll help Chicago solve its own problems by giving them the power to do it, but only if Chicago is helping us get reforms at the state. This is a two-way partnership … and Chicago needs help in December and January, big, big help,” Rauner said during an appearance in Quincy.
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Biss still a fundraising juggernaut
Friday, Oct 16, 2015 - Posted by Rich Miller
* Tribune…
Comptroller Leslie Munger, who faces a special election in November 2016, reported raising about $54,000 for the quarter and had $131,000 or so left.
On the Democratic side of that race, state Sen. Daniel Biss reported raising $268,000 in Q3 and had $1.44 million on hand. Chicago Clerk Susana Mendoza reported $204,000 raised in the quarter and $496,000 left.
So, Biss again raised more than both of his opponents combined.
Gov. Rauner appointed Comptroller Munger, and he’s expected to put whatever it takes into her race to win it. Even so.
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Today’s number: $270 million
Friday, Oct 16, 2015 - Posted by Rich Miller
* Bloomberg…
Chicago’s attempt to clean up a legacy of wrong-way bets on interest rates is costing taxpayers at least $270 million since Moody’s Investors Service cut its rating to junk in May, city documents show.
The payouts to Wall Street banks, which come as the Windy City considers a record tax increase to cover pension costs, are more than the city spends a year to collect garbage at 613,000 homes, and could cover the cost of hiring more than 2,000 police officers. The pain isn’t over yet as officials plan another round of debt restructuring that could cost $110 million to unwind derivatives on its water debt early next year. […]
Chicago and other municipal borrowers in the past decade made bets on the future direction of interest rates through agreements with banks to swap interest payments. But when rates fell under the Federal Reserve’s attempt to stimulate the economy after the financial crisis, many issuers ended up on the wrong side of the bets. Since then issuers have paid at least $5 billion to unwind the agreements.
The city is selling $439 million of bonds Wednesday, part of which will cover $70.2 million to end an interest-rate swaps tied to variable-rate debt for the city’s sewer system. That’s on top of $185 million paid to unwind swaps on general- obligation and sales debt since May. The estimated $270 million total also includes the cost to banks and other professionals to restructure, according to data Bloomberg compiled from city documents. Chicago owed as much as $396 million to banks in March, before the city started terminating the swap agreements, according to market values at the time. Chicago paid less than mark-to-market valuations, said Molly Poppe, a city spokeswoman.
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Another hostage
Friday, Oct 16, 2015 - Posted by Rich Miller
* The worst thing about developments like this one is that we’re not talking GRF money here. This fund is an innocent bystander…
On Oct. 31, the Southern Illinois Criminal Justice Training Program will run out of cash, said Director Mike Norrington. Seventy-five percent of the funding for the Carbondale-based training program comes from surcharges on traffic tickets. Like so many other funding streams, the cash isn’t available without a budget.
The Criminal Justice program provides much-needed training and certification – often state mandated – to 163 agencies within a 27-county swath, officials said.
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McCann primary opponent drops out
Friday, Oct 16, 2015 - Posted by Rich Miller
* Republican state Sen. Sam McCann is on the wrong side of his party caucus leader and his party’s governor, so I don’t know yet if this means the big dogs have another candidate in mind or if McCann is getting a pass because this release arrived in my in-box only moments ago…
—Sangamon County Assistant State’s Attorney Steve McClure has decided that he will not run for the 50th District Illinois Senate seat in 2016. McClure, a Republican, created an exploratory committee on September 16th, and recently concluded a 30-day listening tour across the district.
“I want to thank all of the incredible people that I had the chance to meet over the last few weeks,” said McClure. “I know that many people are going to be disappointed that I will not be a candidate in 2016. It recently became clear to the members of my committee, and to me, that winning a primary race against an incumbent Republican is a task that takes more than five months. If I were to begin a campaign in mid-October, it would already be too late. I did not want to have wonderful people volunteering their time, donating their money, and working hard on my behalf if I knew in my heart that, for the campaign to be successful, it should have been launched much earlier.”
McClure will be returning to the Sangamon County State’s Attorney’s Office to continue fighting hard to prosecute felony offenses, protect victims, and help clean up the streets. He will remain actively involved in the Republican Party, and will continue to attend Republican events, support Republican candidates, and fight for the conservative principles and government reforms that are necessary to turn Illinois around.
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It’s still a pipe dream
Thursday, Oct 15, 2015 - Posted by Rich Miller
* Greg Hinz…
Cook County Assessor Joe Berrios is weighing in on a dispute over a key element of Mayor Rahm Emanuel’s proposed 2016 budget, and while City Hall is trying to pump up the news, it is, in fact, quite mixed for the mayor.
In a phone interview today, Berrios said that “personally, I believe” it is technically possible to reprogram aging county computers to implement the expanded homestead exemption that Emanuel wants. “This is the 21st century,” even if the county’s mainframe computer is programmed in the outmoded COBOL language, he said.
Mayoral aides applauded that, because yesterday, Cook County Board President Toni Preckwinkle said a technical tweak is not possible, and County Treasurer Maria Pappas said it “might” be possible only if outside computer experts came up with what could be an expensive solution.
However, Berrios added a lot of strings that definitely qualified his backing for the mayor’s position.
For one, any reprogramming or other technical computer fix would have to be in place before the end of the year, “probably by around Dec. 1,” Berrios said. Any delay beyond that could postpone the issuance of next year’s tax bills, forcing local governments to borrow money to tide them over. “I’m not going to be responsible for that.” Berrios said.
Everybody who thinks that the General Assembly will pass this bill and the governor will sign it into law in advance of that December 1st date, please raise your hands.
If the mayor wants this done, he’s gonna have to figure out a way to break the Springfield gridlock.
Good luck with that, dude.
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More like this, please
Thursday, Oct 15, 2015 - Posted by Rich Miller
* Riopell…
As the most powerful politicians in the land feud over Illinois’ budget — now for more than 100 days — a suburban mayor has set a summit next week to try to save his city’s nonprofits that the state isn’t paying.
Elgin Mayor David Kaptain says Illinois Comptroller Leslie Munger is planning to attend a meeting Tuesday aimed at finding out more about how Elgin agencies are suffering and whether the city can provide bridge loans to help them keep operating.
The move seems to be a relatively unique in Illinois, but Kaptain says the problems aren’t.
“I think a lot of larger cities are having the same problems,” Kaptain said. “It’s more than the city of Elgin.”
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Question of the day
Thursday, Oct 15, 2015 - Posted by Rich Miller
* From the Ottawa Times…
Many lawmakers in this part of Illinois were originally appointed to their offices and later won election in their own right. State Sen. Sue Rezin, R-Morris, was appointed in 2010 after Gary Dahl resigned, saying he wanted to spend more time with his family and trucking business.
John Anthony, R-Plainfield, was appointed as a state representative in 2013 after his predecessor, Pam Roth, announced her resignation because she was moving to Texas as the result of her husband’s transfer.
Sen. Tim Bivins, R-Dixon, was appointed in 2008 after Todd Sieben became an ethanol lobbyist.
In 2013, Rep. Brian Stewart, R-Freeport, was chosen to replace Jim Sacia, who resigned.
Mautino himself was appointed in 1991 after his father, Richard Mautino, died.
They missed one. Rep. Roth was appointed to the House after then-Representative-elect Sue Rezin was appointed to the Senate.
* The Question: Should Illinois hold special elections when vacancies occur instead of appointments - perhaps depending on how much time is left in the terms? Take the poll and then explain your answer in comments, please.
polls
And, yes, I know there are rules about holding state Senate elections after vacancies happen, but there are still interim appointments. This question is about abolishing most appointments in favor of quick special elections.
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The Kasich lesson
Thursday, Oct 15, 2015 - Posted by Rich Miller
* Press release…
ENDORSEMENT: ILLINOIS SENATE REPUBLICAN LEADER CHRISTINE RADOGNO HEADS KASICH FOR AMERICA’S ILLINOIS TEAM
Leader Radogno to serve as Illinois State Chairman
Dan Cronin, Dave Syverson, Ed Sullivan, Ron Sandack, Tom Demmer, David Harris, Randy Frese, Jim Schultz, Pat Brady and Sean Morrison to serve as State Co-Chairs
Team includes seven sitting IL legislators, the former Chairman of the Illinois Republican Party, three county party chairmen
Today the Kasich for America campaign announced that Illinois State Senate Republican Leader Christine Radogno will chair the Illinois presidential campaign for Ohio Governor John Kasich. In all, eighteen officeholders and party officials announced their endorsement of Kasich today, including seven current state legislators, the former Chairman of the Illinois Republican Party, three county party chairmen, and current and former public officials from across the state. […]
Said Leader Radogno, “As governor, John Kasich took over a state that was dying. Before he took office, Ohio had lost more than 350,000 private sector jobs, faced an $8 billion projected budget hole, and businesses were fleeing to other states. In four short years, he helped turn his state around, and under his watch, Ohio has created 347,000 private sector jobs, amassed a $2 billion surplus, and by cutting taxes by more than $5 billion, Ohio became business-friendly again. As a leader in a state very similar to Ohio, I understand the significance of his accomplishments. Kasich’s record of success serves as a model for other Midwestern states, and it is little wonder that 62% of Ohioans approve of the job he’s doing.”
* Let’s look at some Kasich history via an October, 2011 story in the very conservative National Review…
Kasich’s reforms, like Gov. Scott Walker’s in Wisconsin, have rattled government workers, who for decades have enjoyed cushy retirement and health-care benefits. Senate Bill 5 “is all about fairness,” asking state employees to contribute 10 percent of their salaries toward their guaranteed pensions and pay 15 percent of their health-care costs, Kasich says.
The bill also outlaws public-sector strikes, bans binding arbitration, and gives cities and school boards bargaining flexibility. Schoolteachers will be given merit pay, not guaranteed automatic pay increases. Ohio’s 360,000 government workers, like their peers in Wisconsin, have revolted. Thousands of them stormed the capitol when the legislation was passed by the GOP-controlled legislature in March — a sea of bright union T-shirts.
Those winter rallies were only the beginning. Once Kasich signed the bill, progressives pounced. Activists canvassed the state, petitioning for repeal. We Are Ohio, a potpourri of lefty-types, led the months-long campaign. According to state law, if 230,000 signatures were collected and certified by the secretary of state, a referendum would be triggered. By mid-July, over 1.3 million Ohioans had signed. Senate Bill 5 was suspended. And “Issue 2,” a question of whether to keep the legislation, was added to the ballot.
Senate Bill 5’s midsummer stall was a blow to Kasich. His approval rating at the time, according to a Quinnipiac University poll, sunk to 35 percent. Still, Kasich was buoyed that same month by the passage of his budget, which closed the state’s $8 billion budget gap without raising taxes. But Kasich knew that beyond the budget, his entire economic agenda remained jeopardized by “Issue 2.”And with Quinnipiac’s July survey showing 56 percent of Ohioans favoring repeal, disaster loomed.
A month later, Kasich threw a curveball to the unions, which have long portrayed him as the bogeyman of Ohio politics. In a press conference at the capitol, he softened his approach and invited union leaders to “come to the table” and “talk” about potential “ways to reach an agreement.” Sensing Kasich’s political vulnerability, union brass ignored the offer, telling Republicans almost immediately that full repeal of Senate Bill 5 would be a prerequisite to any negotiations. Kasich, undeterred, decided to make his case across the state.
* The unpopular Kasich got his clock cleaned…
Ohio voters on Tuesday overwhelmingly rejected the law limiting the bargaining abilities of more than 350,000 teachers, firefighters, police officers and other public workers. More than 61 percent voted against the measure promoted by Republican Gov. John Kasich. Turnout was the highest ever for an off-year election in Ohio and poll numbers show voters rejected the law by wide margins in nearly every part of the state.
* So, what did Kasich do? Well, for one, he wised up and extended an olive branch to the trade unions…
Standing with a crowd of carpenters to accept their endorsement, Ohio Governor John Kasich acknowledged that it wasn’t easy for union members to back a Republican.
“But we’ve gotten to know each other over time,” Kasich said in Columbus, two weeks before winning re-election in November [of 2014]. “For too long, there’s been a disconnect between people like me and organized labor.” […]
After the repudiation of the Ohio law, he said that “the people have spoken” and took a less confrontational approach. His support for development initiatives, including $1.5 billion in debt backed by Ohio Turnpike tolls for infrastructure, won some union support for his re-election.
Those initiatives will mean billions in wages and benefits in coming years, said Matthew Szollosi, executive director of the 91,000-member Affiliated Construction Trades Ohio union.
“He’s listened,” Szollosi said. “He’s learned a lot about us. Our leaders have learned a lot about him. And I think the relationship has grown close.”
Resentment remains over the bargaining law: The Ohio AFL-CIO backed Kasich’s Democratic opponent last year. Yet Szollosi’s group gave the governor’s campaign the maximum $12,156 in 2013, and Kasich also won the endorsement of engineers and carpenters unions, as well as the Ohio Laborers’ District Council.
And people wonder why I’ve been shaking my head at Gov. Rauner’s refusal to propose a capital bill.
Sheesh, man, this ain’t rocket science.
* Kasich is still not exactly a friend to public employee unions…
However, just before this Memorial Day weekend, the Governor issued an executive order stripping away union rights from nearly 10,000 independent home health-care and in-home child-care workers. The move undoes a law implemented by former Democratic Governor Ted Strickland that extended the ability to bargain with the state to those overlooked and underpaid sectors. Unions that used to represent those workers in Ohio, including the AFSCME and the SEIU are calling it a “war on caregivers,” warning that it will discourage people from pursuing those careers.
Somewhat ironically, Kasich credited the success of the President’s Affordable Care Act — which he opposes and wants repealed — as part of his rationale for repealing those union rights. He said would have repealed his predecessor’s law earlier, but held off out of concern that those independent workers would lose the health insurance provided by their unions. But “since that time,” he wrote, “health insurance has become widely available through other means, such as the federal health insurance exchanges.”
But keep in mind that the trade unions are historically more conservative than public employee unions, and smart, moderate Republicans try to work with those unions.
Gov. Rauner has so far refused to do this.
I suppose you could say that Rauner learned a little when he stopped calling for so-called “right-to-work” laws, but he’s still demanding that collective bargaining rights should be gutted and he wants repeal of the state’s prevailing wage laws.
* “Right-to-work” is popular if you word polling questions just so, as a recent poll of southern Illinoisans by the Paul Simon Public Policy Institute shows…
Some states have passed right-to-work or open shop laws that say workers have the right to hold their jobs in a unionized workplace, whether they join the labor union or not. If you were asked to vote on such a law, would you vote for it or against it? (If undecided the interviewer probed “which way are you leaning?”)
Response
Percent (n=401)
Vote for 53.4%
Lean for 2.0%
Lean against 1.7%
Vote against 36.2%
Undecided (not read) 3.5%
Other/don’t know (not read) 3.2%
Meh.
The point is, Rauner withdrew it for good reason. It wasn’t going to pass and it probably wouldn’t have been backed by the public once it was explained.
Now if he would only take more steps in that direction.
* Oh, and by the way, the Tribune had a little brief on another one of Kasich’s Illinois backers today…
DuPage County Board Chairman Dan Cronin reported a $25,000 contribution from the national fund of the plumbers/pipefitters union.
Cronin leads his county so well because he is so inclusive. Same for Kasich in Ohio.
* For crying out loud, learn, man. Instead of constantly beating on all the unions, how about focusing on obtainable, doable reforms, and focus like a laser on solving this budget mess? Kasich did that and he eliminated his state’s deficit.
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The Getty model?
Thursday, Oct 15, 2015 - Posted by Rich Miller
* Riopell…
In remarks [last] week, Gov. Bruce Rauner publicly raised the idea that the outcome of Illinois not having a budget could be even more severe.
“Universities and community colleges will not receive state funding, causing some to wonder whether they will be open for the second semester. Outrageous. Should not happen,” Rauner said.
Sigh.
He’s such a helpless victim.
* But, at least in the suburbs, it’s not true…
No local community colleges are talking publicly about drastic action, and how individual colleges will fare as the state budget impasse drags on could “vary widely,” Berry said. Community colleges get a large share of their income from property taxes, and suburban districts tend to have higher property values than colleges elsewhere in the state. So the effects might be less serious in the suburbs.
Oakton Community College spokesman Paul Palian said he doesn’t know of any class-cutting plans, but he said schools are “preparing to tighten our belts even further.”
* Wordslinger has been saying in comments for months that the governor is using a “hostage-taking” model. For instance…
The governor feels entitled to certain things he can’t achieve through traditional and conventional means (public support, legislative majorities, in this case), so he takes hostages and threatens great harm to them unless his demands are met.
In an attempt to demonstrate purity of motives and avoid a backlash of public opinion, some hostages are released (K-12, public employee salaries).
In hostage situations we’re all familiar with from the past, the released are usually those who could be perceived as innocent - poor women, children, the old, sick or infirm.
Universities and colleges aren’t quite on the list yet, although some will most certainly be harmed in the coming months.
* James Krohe recently wrote a particularly gruesome take on the same subject…
Rauner basically kidnapped state government last November, and, determined to show he means businesses, started cutting off his prisoners’ ears and fingers and sending them to the General Assembly with his ransom notes.
But kidnapping only works if the threat of death alarms more people than the victim.
The museum closing stirred a furor in Springfield, and to a lesser extent in Fulton County, but outside these places the shutdown has had less impact than would closing a fish census station.
Rauner finds himself in the situation of the Italian thugs who kidnapped oil heir J. Paul Getty III in 1964; they demanded $17 million from his family but his rich grandfather thought the kid was worth only $2.2 million. In the end, the gang got paid only $2.9 million, and that only because dad took out a loan.
* That brings us to House Speaker Madigan’s spokesman Steve Brown, who told the Illinois Policy Institute’s news service this week that his party doesn’t trust the governor to make a budget deal…
“The Governor is ultimately the person who spends the money regardless of the legislative actions, so there would have to be some ironclad understandings of how that money is gonna be spent.”
Apparently, the idea here is to do what most did with the Illinois State Museum and simply ignore the hostages altogether until the ransom price is drastically reduced.
You gotta wonder how long that can last.
Your thoughts?
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Gridlock spreads
Thursday, Oct 15, 2015 - Posted by Rich Miller
* Gov. Rauner on the sale of the Thompson Center…
The Republican governor, embroiled in a political dispute with the Democrat-led General Assembly, said his proposal was unrelated to what he has dubbed his “Turnaround Agenda” that includes seeking pro-business, union-weakening legislation in exchange for a state budget.
OK, well, it’s good to know that he won’t hold up a budget in exchange for legislative approval of the building sale.
* But the other party is another matter. Kurt Erickson writes about HB4313, which was introduced yesterday by House GOP Leader Jim Durkin regarding the proposed sale…
Durkin’s plan would apparently bypass a lengthy public hearing process imposed by the General Assembly to keep governors from moving too quickly in shutting down state facilities.
Durkin’s proposal calls for establishing a base price for the 16-story building through an appraisal process. It would then allow officials to either auction off the building for no less than the highest appraisal price or sell it through a sealed bidding process.
In the latter case, the proposal would allow the building to be sold for less than its appraised value. […]
Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said Rauner offered few details about the sale in an announcement Tuesday, including where current workers would be moved and how other services done at the building would be affected.
“That will all have to be examined,” Brown said. “I’m not sure rushing is a good idea. Usually when you rush things, that’s when you make mistakes.”
On the bright side, using Brownie’s logic, by January of next year we ought to get one incredibly fantastic state budget.
/snark
…Adding… Mayor Emanuel, however, supports the sale, saying it could add $20 million a year to tax coffers.
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Credit Unions – Individual service, united in focus
Thursday, Oct 15, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
As locally-owned not-for-profit financial cooperatives, credit unions hold a strong belief in giving back to their communities. Twenty-three chapters across Illinois unite 303 credit unions and are integral to fulfilling the financial need for nearly three million consumer members.
The Rockford Area Chapter alone serves 11 credit unions and their 88,000 members in a four county area. Similar to other credit union chapters, Rockford strongly believes in supporting their communities and collaborates on a year-round marketing campaign to facilitate making a difference.
With October designated as National Breast Cancer Awareness Month, the chapter’s latest community effort will be to sponsor the 4th Annual Pink Party/Bra Auction. This event raises money for Pink Heals of Winnebago County, a local non-profit organization that helps families dealing with cancer. All of the money donated to Pink Heals will stay local, just like credit unions. The chapter’s sponsorship can also be seen in a Rockford firefighter calendar sale, with 100 percent of the proceeds donated to Pink Heals.
Giving back to their members, causes and the communities they serve – this is the credit union difference.
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Rethinking George
Thursday, Oct 15, 2015 - Posted by Rich Miller
* Former Gov. George Ryan spoke recently to Waukegan Township’s Coalition to Reduce Recidivism…
Ryan was given standing ovations at both the start and end of his speech, during which he focused primarily on his transformation from a death-penalty advocate to an opponent who first imposed a moratorium on executions and then commuted all capital punishment sentences in the state before the end of his term. […]
“I want to make this very clear: Gov. Ryan, we miss you,” [State Sen. Terry Link, a Waukegan Democrat] said, drawing applause. “(Ryan) knew how to get something done that would affect every person in this room and every person in the state of Illinois in a positive manner, and that’s what we lack in Springfield today.”
At one point, Ryan showed that he hadn’t lost the politician’s touch for engaging an audience when he remarked on an introduction that detailed his entire career.
“Thank you for that wonderful introduction,” he said. “You know more about me than the FBI.”
* Ryan’s hometown paper effused praise…
Now, there are those who will have no use for Ryan’s remarks, and their opposition is based on one of two factors, if not both.
Some will dismiss them because they believe anyone who commits a crime serious enough to draw a felony conviction should carry that label forever. And there are millions of ardent death penalty supporters out there, those who believe the punishment fits the crime.
Others will oppose Ryan’s beliefs because he is a convicted criminal himself, and as such, his message doesn’t carry as much weight as it would otherwise.
But, remember this. He served his debt to society, and amid the actions that got him sent to jail, he accomplished much to help this state. […]
Ultimately, those efforts [to reduce recidivism, abolish the death penalty, etc.] might get something done, which is more than you can say for what is happening in the state’s current political climate.
* A good friend of mine and I drove to Kankakee this summer to have lunch with the former governor. It was off the record, but I can tell you that he remembered almost everything negative I ever wrote about him. Even so, we talked for four hours.
I’ve always been torn about George Ryan, and vice versa. I was born in Kankakee. My family used his pharmacy on Court Street. I never knew him growing up, but my grandfather and his Kankakee mayor brother were pals (although I never knew Tom either). Because I was a K3 guy, George always treated me well. At the same time, because I was a K3 guy, I was supposed to be on “the team,” which I never was, and that irritated him to no end because I whacked him but good on many an occasion.
* But, it is undeniably true that he was the last governor who could actually get big things done on a consistent basis. Rod Blagojevich passed some major bills and so did Pat Quinn, as has our current governor (check out the amazing progress this year on criminal justice reform if you doubt me). But none of them had or has the deft touch of George Ryan. Part of that was because the Republicans controlled the Senate at the time (although Pate Philip and Ryan had many a go-around), but a lot of it was because he was a former House Speaker and knew how to pull the levers and the strings. His successors have had trouble even finding those levers and strings.
I remember sitting in Blagojevich’s office one day and he asked me what I thought of a major bill of his that was stuck in limbo. His chief Senate sponsor was a disaster and the bill was going down hard. I told him his only hope was to call President Bush and ask him to pardon George Ryan and then put him on the payroll because he was the only man on Earth who could pass that turkey.
* Yeah, he made some mistakes, both criminally and governmentally. But, man, could he ever get stuff done. And even if you disagree with what he did accomplish, you have to admit that he was a success in at least that regard.
I’ve often said over the years that if we could just elect a governor who was both competent and not in danger of going to prison this state could do great things.
I somehow managed to convince myself toward the end of last year’s campaign that Bruce Rauner could be that guy - that he had the skill set to be almost as good at governing as Ryan without the legal, um, downsides.
Instead, I’m still waiting.
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* From the Simon Institute…
More than a third of southern Illinois voters (37.4 percent) say either they or someone in their immediate families have been affected by the current Illinois budget stalemate, according to a poll by the Paul Simon Public Policy Institute at Southern Illinois University Carbondale.
Another 56.6 percent said they have not been touched by it.
Among all southern Illinois voters, the largest group (10.0 percent) said they had experienced a job loss or threatened job loss from the budget impasse. The next largest group of responses were from those who said they had been affected by healthcare and health insurance cuts (3.7 percent). Also, there were 3.2 percent who said they had experienced social service cuts; 2.7 percent who said their city governments had experienced cuts; 2.5 percent who said they had experienced changes in child care costs or services, and 2.0 percent who said their impact had been through higher education cuts.
The remainder of the impacts of the budget conflict included a range of volunteered responses, which included impacts on the local economy (1.2 percent), cuts to utility assistance programs (1.0 percent), and mental health care (0.7 percent).
The poll of registered voters in 18 counties south of Interstate 64 was taken September 22-October 2. The survey was based on a random sample of 401 registered voters who responded to telephone interviews. It has a margin of error of plus or minus 4.9 percentage points. Thirty percent of the sample were cell phone users.
In the open-ended comments, respondents volunteered such specific answers as their family had to relocate because of loss of a state job, their health care had been adversely affected, respondent’s husband was on disability and now can’t get it, loss of meals for shut-ins, delayed payments on dental services, doctors want their payments up front now, proposed closing of the Hardin County Work Camp, and other generalized negative consequences.
“These responses show clearly that what’s happening—or not happening—in Springfield is having a direct impact on a lot of people’s lives in southern Illinois” noted John S. Jackson, a visiting professor at the Paul Simon Institute and one of the designers of this poll. “Decision-makers need to consider that their inaction is causing very specific harm, which people notice, and the negative effects are accelerating as time goes by” Jackson added.
But David Yepsen, director of the Institute, said “maybe one reason nothing’s happening in Springfield is that a lot of voters don’t feel the effect of this stalemate. Most people don’t work for a government. Most people don’t rely on safety net programs like day care or health care. If they did, perhaps the logjam would break because political leaders would be feeling more heat.”
“It’s also true some people might not feel it because the state is still spending money without a budget,” Yepsen said. “Schools, for example, did get an appropriation. Other spending is directed by court-orders.”
* The accompanying chart…
There’s more to this poll and we’ll get to it in a bit.
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Lottery ends payouts over $600
Thursday, Oct 15, 2015 - Posted by Rich Miller
* I told you this was coming last week. From a press release…
Due to the ongoing budget stalemate in Springfield, the Illinois Lottery is announcing a change in winner payment policy. All winners over $600 will experience a delay in payments. Previously, this policy only applied to those winnings over $25,000. Once a budget is passed in Springfield, all outstanding claims will be paid.
Since July 1, 2015, Illinois Lottery winners over $25,000 have experienced payment delays, since the Illinois Comptroller has not had the legal authority to disburse their winnings. Those players who have won under $25,000 have continued to receive their winnings, as they were paid at Illinois Lottery claim centers.
Beginning on October 15, 2015, the Illinois Lottery anticipates its check writing account will be exhausted, as there is no legal authority to replenish it with funds. Players who win $600 and below can continue to receive their winnings at any of the Lottery’s 8,000 retail locations statewide.
* More from the Tribune…
Two lottery winners whose payments were delayed last month filed a federal lawsuit against the Illinois Lottery, acting director B.R. Lane, its private management company Northstar Lottery Group and the Illinois Lottery Control Board. The suit is attempting to force the lottery to release prizes over $25,000 with interest and prevent the lottery from paying administrative and operational costs until winnings are released. The suit would prevent the sale of tickets for prizes over $25,000 until the money can be paid without delay.
“If I was the one selling raffle tickets and I didn’t pay, I would be sued or in jail or both,” Rhonda Rasche, one of the winners who filed the suit, previously told the Tribune.
Emphasis added because that seems to be a bit much.
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Report: Dorothy Brown’s home raided by feds
Thursday, Oct 15, 2015 - Posted by Rich Miller
* This has been a hot rumor for days…
FBI agents paid an early morning visit to the home of onetime mayoral candidate and longtime Circuit Court clerk Dorothy Brown, seizing her government-issued cell phone, sources told POLITICO.
The visit, which happened last week, is the clearest sign yet that a probe that initially scrutinized Brown’s husband, Benton Cook III, has expanded to include Brown herself.
One source said the phone seizure was intended to allow investigators to review text messages on the device.
Sources with knowledge of the investigation tell POLITICO that clerk office employees have received federal subpoenas from the Chicago U.S. attorney’s office.
Sources say one line of inquiry centers on Brown’s relationship with employees, their contributions to her political fund and whether those who donated were rewarded.
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