Gov. Bruce Rauner today issued an executive order declaring it impermissible for state legislators to represent clients before the Illinois Property Tax Appeal Board, which hears appeals of assessment decisions made in the state’s 102 counties.
Calling the practice a “clear conflict of interest that must end,” Rauner said the order, which is effective immediately, is a key step toward restoring public trust and motivating lawmakers to tackle meaningful property-tax reform.
“We have a deeply flawed and overly complicated property-tax system that recent investigations have shown results in inequitable, disproportionately high property-tax burdens on low-income residents — not to mention our property taxes overall are simply too high,” Rauner said. “For any legislator to profit from this system undercuts the public’s faith that they are in office to do what’s best for their constituents.
“Legislators who make money representing clients who are appealing their property-tax assessments have little incentive to do what’s right when it comes to property-tax reform,” Rauner continued. “Frankly, they have everything to gain from the status quo. The action I’m taking today marks the beginning of the end of a dubious era.”
The order:
Directs members of the Illinois Property Tax Appeal Board to prohibit state legislators from participating in appeals coming before them.
Directs the board to prohibit legislators from receiving any fee or compensation, directly or indirectly, through any interest in a partnership, limited liability corporation or other business entity representing clients before it.
Notes a State of Illinois Code of Personal Conduct requirement that government be conducted in a transparent, ethical, accountable and motivated manner.
Points out that state officials and employees “may not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with their official state duties and responsibilities,” according to the conduct code.
Directs the board to amend its rules and procedures to reflect the executive order.
The Illinois Property Tax Appeal Board hears about 30,000 appeals a year, approximately three-fourths of them from Cook County.
“Conflicts of interest clearly arise where legislators and regulators receive financial benefits by charging Illinois citizens and businesses through a morass of red tape those same officials created by passing complicated rules and establishing confusing and bureaucratic processes,” the executive order states.
Crippling taxes overall and an onerous property-tax system are eroding the state’s ability to thrive and driving homeowners and small businesses toward insolvency — and increasingly, toward the border.
While property taxes are cited frequently as a top reason for leaving Illinois, the state is duty-bound to take concrete steps to correct the system, Rauner said. He noted the state’s population declined by an estimated 33,700 in 2017, the greatest numeric population loss of any state, and the fourth year in a row that Illinois’ population dropped.
“Illinoisans are tired of a rigged system that allows lawmakers to profit at their expense,” Rauner said. “I’m here to fight on their behalf.”
* The gubernatorial candidates were asked today what rates they’d like to see on a progressive income tax. JB Pritzker dodged the question. Chris Kennedy answered…
I think that people are entitled to understand what the brackets might look like. I think we need to make it clear that Governor Rauner’s leadership and lack thereof make it very difficult to predict will we have a budget this year or will we not. Will he rack up more unpaid bills and how do we fund that? I don’t think the high end of the range of a progressive income tax should go above a number that starts with a five. That’s what I’d say. I think it has to be somewhere between five and six percent at the high end of the range.
But this is all for naught. I mean, truthfully, we’ll never move to a progressive income tax unless we ban elected officials from being property tax appeals lawyers.
I don’t know how you make that work. How do you provide real tax relief for some while still being able to balance the budget at a top rate of less than 6 percent?
But, hey, maybe he’ll explain it later.
Also, I’m not quite clear on how passing a progressive income tax will first require banning legislators from being property tax lawyers (or how that’s even legal), but that’s his schtick, so whatevs.
* Background is here. Chris Kennedy claims that his remarks at the Tribune editorial board today were taken out of context…
First, set aside the claim that Bruce Rauner publicly released those Blagojevich FBI surveillance tapes. The Chicago Tribune released them. Rauner just put the tapes into TV ads.
Craig Wall: Somebody said, he put it this way, that Bruce Rauner is almost becoming like a super PAC for you as he’s trying to undermine JB Pritzker.
Chris Kennedy: I think Bruce Rauner is trying to do what he thinks is best for the state of Illinois. Now we may disagree on what that is, but his willingness to speak truth to power, to take on the powers that have been strangling our economy for decades in this state is something that I think he should be applauded for.
* As noted below, Daniel Biss and the JB Pritzker campaign have both taken Kennedy to task. Biss tweeted that Rauner “should not be ‘applauded’ for the lasting damage and harm that he’s done to the state” and the Pritzker campaign released this statement…
“The Worst Republican Governor in America unleashed devastation across this state and is standing in silence as the lives of immigrant families and healthcare for children hang in the balance, but don’t worry, because according to Chris Kennedy, Bruce Rauner is just speaking ‘truth to power,’” said Pritzker communications director Galia Slayen. “Throwing bombs and creating crisis is not speaking truth to power, but it’s clear that Chris Kennedy has failed to understand that throughout this campaign.”
…Adding… Another Kennedy campaign statement…
I’ve always been honest about Bruce Rauner’s broken leadership in our state. Under Bruce Rauner’s administration, our state amassed $15 billion in unpaid bills. Under Bruce Rauner’s administration, our state went two years without a budget — the longest budget impasse in U.S. history. Under Bruce Rauner’s administration, 1 million people were cut off of social services.
I’m running because Bruce Rauner has left our state in shambles. He’s a failed governor and our state is desperate for radical change.
Taking my remarks out of context is a weak attempt from JB Pritzker to deflect from the pressure he’s under. JB is the poster child of play to pay politics in Illinois and the FBI wiretaps that feature him begging Rod Blagojevich for political favors prove it. He’s everything the Republicans want to run against.
I believe voters have a right to know what’s on those tapes and I agree that they should’ve been released.
* The Question: Fair hits or not? Take the poll and then explain your answer in comments, please.
“It’s important to recognize that if people who voted for Rod Blagojevich had known that he was engaging in the activities that he was, nobody would have voted for him, nobody would be supporting, nobody would have spoken with him, and hundreds of people did at the time,” Pritzker said.
“And I’ve not been accused of any wrongdoing. I have not done anything wrong. And I’ve been proud of the work I’ve done in public service for many, many years,” Pritzker added.
That prompted Biss to reply: “If that phone call is your definition of public service, you’re doing it wrong.”
After the forum, Kennedy backed Rauner’s ads highlighting the Pritkzer-Blagojevich recordings.
“I think Bruce Rauner is trying to do what he thinks is best for the state of Illinois,” he said. “And we may disagree on what that is, but his willingness to speak truth to power, to take on the powers that have been strangling our economy for decades in this state is something that I think he should be applauded for.”
They’ve officially merged.
* From the Rauner campaign…
During today’s Chicago Tribune editorial board meeting with Democratic candidates for governor, JB Pritzker claimed that he has “not done anything wrong” regarding his conversations with Blagojevich.
The wiretaps tell a different story, as Pritzker was caught making shady deals with Blagojevich, and even called just 6 days before Blagojevich’s ultimate arrest.
You be the judge as to whether JB Pritzker did anything wrong in his conversations with Blagojevich. The full wiretaps are available HERE.
Pritzker lobbied Blagojevich to be appointed to the Treasurer’s seat
Pritzker advised Blagojevich to engage in a ‘morally repugnant’ quid pro quo with Mike Madigan
Pritzker does not “rebuff” Blagojevich’s suggestion of an appointment to Attorney General
Despite claiming that “nobody knew the FBI was investigating the man” just last week, Pritzker acknowledges Blagojevich needing to “get the legal thing behind” him.
Governor Rauner summed it up best yesterday: “Anyone who would use an excuse and say, ‘Well, I did something immoral, unethical, disgusting and self-dealing but I didn’t go to jail, so it’s OK.’ Are you kidding me?”
* Text from a pal…
Team Rauner laser-focused on becoming Kennedy’s super PAC effectively. Anti-Rahm, Blago tape and MJM prop tax lawyer stuff
…Adding… Some Twitter react…
*** UPDATE 1 *** Kennedy campaign…
Chris has been calling out Rauner for ever. Chris thinks JB is the poster child for what is wrong in Illinois. He’s the poster child for everything Rauner wants to run again. And when he agrees with someone, he says it. He agrees that these tapes should be out. He agrees that voters should know how JB Pritzker really operates.
*** UPDATE 2 *** Pritzker campaign…
Did Chris Kennedy Just Endorse Bruce Rauner?
Following the Chicago Tribune Editorial board session Chris Kennedy said: “I think Bruce Rauner is trying to do what he thinks is best for the state of Illinois. And we may disagree on what that is, but his willingness to speak truth to power, to take on the powers that have been strangling our economy for decades in this state is something that I think he should be applauded for.”
As governor, Bruce Rauner is responsible for nearly 1 million people losing access to social services, vetoing a historic equitable school funding formula, holding funding for children and families hostage to his far-right, Koch brother funded agenda, standing by while Donald Trump attacks immigrant families in Illinois and health insurance for children and families, and just this week failing to call former KKK Grand Wizard David Duke a racist… or as Chris Kennedy sees it, speaking “truth to power.”
“The Worst Republican Governor in America unleashed devastation across this state and is standing in silence as the lives of immigrant families and healthcare for children hang in the balance, but don’t worry, because according to Chris Kennedy, Bruce Rauner is just speaking ‘truth to power,’” said Pritzker communications director Galia Slayen. “Throwing bombs and creating crisis is not speaking truth to power, but it’s clear that Chris Kennedy has failed to understand that throughout this campaign.”
* I told subscribers about this earlier today. I assume the press releases will start rolling in soon. The first is from Senate Republican Leader Bill Brady…
“While an aisle may have separated us politically, Sen. Donne Trotter and I shared a passion to serve the people of Illinois, and to make our state a better place. Throughout his tenure, Donne was always a voice of reason, which was befitting the stature of the august chamber that is the Illinois Senate. Now, as he closes this chapter on his Senate career, he will no doubt begin writing another that will undoubtedly make a difference in the lives of those he comes into contact with on a daily basis.”
I’ll update as necessary.
…Adding… Senate President John Cullerton…
Donne Trotter is a unique individual and he will be missed in the Illinois Senate.
I will miss his leadership, his counsel, his wisdom, his calm, his experience and to top it all, his fantastic sense of fashion. I wish him nothing but the best, and am honored to have worked with him and to consider him my friend.
* Mayor Rahm Emanuel…
“Senator Trotter’s vibrant personality and commitment to our state’s most pressing issues are matched only by his compassion for those he serves. Throughout his three decade career he has been a tireless advocate for the people of Chicago and the state of Illinois. From fighting to make quality care affordable and accessible to reforming a disproportionate and discriminatory state education funding formula, Senator Trotter has been voice for the vulnerable and a champion for hardworking families. His service in Springfield created a stronger city and state. I wish him the best in his well-deserved retirement.”
* Sen. Kwame Raoul…
“I was lucky enough to call Senator Trotter not just my colleague, but also my mentor, my roommate and my friend. He supported me in replacing Barack Obama in the Senate when it was not popular in Springfield to do so, and I have benefited from his advice and support ever since. His intelligence, dedication and compassion will be sorely missed in the Senate.”
Senate Assistant Majority Leader Donne E. Trotter (D-Chicago) released the following statement today:
“It was truly a pleasure to serve my constituents in Springfield over the last 25 years in the Senate and four years in the House.”
“I cannot say when the best time is, but I feel this is the right time to go forward and search out different opportunities, and to more importantly give others the chance to serve.”
“Throughout my career, I have tried to pass along the wisdom I’ve gained over my years of service. My own career was never my only focus; I also wanted to ensure the success of those who I knew would follow in my footsteps someday.”
“I’m comfortable with the people who are still serving in the Senate. They have the knowledge and the work ethic to lead our state in the right direction, and I’m not standing in their way.”
“I’m proud of being a strong voice on health care, education and budget issues, which are all of great importance to people of the 17th District.”
“It’s a very diverse district, including urban and rural areas. We haven’t been able to accomplish everything, but we’ve certainly made a measurable difference in our communities and statewide.”
“I had the great privilege of being able to sit at the table during all policy negotiations, especially the budget. I’m thankful for the voices back home who helped me to articulate the needs of our district and the state at large.”
Trotter has held his Senate seat since 1993. The district encompasses parts of the City of Chicago, Will County and Kankakee County.
Trotter has also served as assistant majority leader since 2013. His resignation is effective immediately. […]
Members of the Illinois Legislative Black Caucus released the following statement regarding Senator Donne Trotter’s resignation from the Illinois State Senate:
“Senator Donne Trotter has been the consummate example of dedication to not only the citizens of the 17th District, but to the great people of this entire state. His 30 years as a member of the General Assembly, and specifically his 25 years as a member of the Illinois Senate have shown the Senator’s passion for public service.
“The Caucus will miss the Senator’s wealth of institutional knowledge and dedication to ensuring all Illinois residents have access to quality health care, education and general life wellness.
“Senator Trotter has stood fair and firm throughout his illustrious career. The Illinois Legislative Black Caucus thanks him for his three decades of service, and wishes him nothing but the best during his retirement.”
Members of the caucus released individual statements below:
Senator Kimberly A. Lightford (D-Maywood): “It has a been an incredible journey working alongside my dear friend and colleague Leader Trotter for 20 of his 30 years of service. He was the seasoned appropriations chairman and public health enthusiast when I arrived and always showed me leadership, expertise and commitment. I will truly miss him, his support and his passion for serving people. He helped to lay the foundation for the Illinois Legislative Black Caucus and his legacy will continue on for generations to come.”
Senator Toi Hutchinson (D- Chicago Heights): “It is not easy to sum up a career in public service in just a few words. But my knowledge of the budget and revenue process was sharpened in a way that could have only happened with a teacher like Donne Trotter. From his impact on the National Conference of State Legislatures and the National Black Caucus of State Legislators to our statehouse, he challenged us to be better. And that means we as legislators are better for his service.”
Senator James F. Clayborne (D- Belleville): “Senator Trotter has been a public servant and champion of his community for his whole life. His knowledge of complex issues and ability to work across the aisle will be sorely missed.”
Senator Mattie Hunter (D- Chicago): “I knew Senator Trotter long before I became a legislator. When I worked for the Human Resources Development Institute he was our go-to guy for legislation and funding purposes. When I later became a colleague, Sen. Trotter and I worked together on many issues to address behavioral health and other social services. He was a great advisor and his institutional knowledge will be greatly missed.”
Senator Kwame Raoul (D- Chicago): “I was lucky enough to call Senator Trotter not just my colleague, but also my mentor, my roommate and my friend. He supported me in replacing Barack Obama in the Senate when it was not popular in Springfield to do so, and I have benefited from his advice and support ever since. His intelligence, dedication and compassion will be sorely missed in the Senate.”
Senator Jacqueline Y. Collins (D-Chicago): “I have had the honor and privilege of serving with Senator Trotter over the last 13 years. He’s a true gem and gentleman in the Illinois General Assembly. Donne is well-read, knowledgeable and a powerful advocate and voice for the children and families of the state. No one ever has to wonder what he’s thinking because his remarks can be both brilliant and biting. Sometimes a jester but always a drum major for justice. He’s a public servant with heart, who embodies character, courage, and compassion. Donne is a dapper man of distinction, dignity, and decency, and I will truly miss my colleague and friend.”
The Illinois Department of Employment Security (IDES) announced today that the unemployment rate decreased by 0.1 percentage point to 4.8 percent in December and nonfarm payrolls increased by +1,500 jobs over-the-month, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. November jobs were revised up to show a slight gain (+3,100 jobs) rather than a slight loss as initially reported (-1,100 jobs).
December’s monthly payroll gain kept over-the-year job growth well below the national average. While Illinois job growth has had its ups and downs since the beginning of the year, the 3-month trend shows average gains of +4,700 jobs per month from October to December. This reflects an improvement over the 3-month average gain of +1,500 from September to November.
“The unemployment rate dropped in December, even as the labor force increased in the final quarter of the year.” said IDES Director Jeff Mays. “Payrolls overall have now increased by about a half-percent over the year to date, which is an additional 29,600 jobs.”
“The fourth quarter trend is certainly promising,” said Illinois Department of Commerce and Economic Opportunity Director Sean McCarthy. “Illinois is beginning to see results from investments made in securing businesses by this administration.
In December, the three industry sectors with the largest gains in employment were: Government (+4,100); Other Services (+2,600); and Construction (+2,200). The three industry sectors with the largest payroll declines were: Professional and Business Services (-3,100); Financial Activities (-2,600) and Education and Health Services (-2,300).
Over-the-year, nonfarm payroll employment increased by +29,600 jobs with the largest gains in these industry sectors in December: Financial Activities (+8,700); Manufacturing (+7,700); and Education and Health Services (+6,600). The industry sectors with the largest over-the-year declines include: Government (-4,100); Trade, Transportation and Utilities (-2,900); Leisure and Hospitality (-1,400). Illinois nonfarm payrolls were up +0.5 percent over-the-year in sharp contrast to the nation’s +1.4 percent over-the-year gain in December.
The state’s unemployment rate is +0.7 percentage points higher than the national unemployment rate reported for December 2017, which held at 4.1 percent. The Illinois unemployment rate is down -0.9 percentage points from a year ago when it was 5.7 percent. The Illinois jobless rate last stood at 4.8 percent in July.
* Here’s a new Liberty Principles PAC ad on behalf of Mickey Straub, the GOP primary opponent of House Republican Leader Jim Durkin…
* ILGOP responds…
“Mickey Straub isn’t a ‘proud Republican’ as he says. He’s a phony Republican who makes Mike Madigan proud. After missing three consecutive Republican primaries, Straub is teaming up with Mike Madigan’s union allies in an attempt to hijack the Republican Party and keep Madigan in power. Madigan Mickey doesn’t share our Republican values and can’t be trusted.” - Illinois Republican Party Spokesman Aaron DeGroot
Mickey Straub says he’s “proud to be Republican,” but it’s all a ruse designed to trick voters and keep Mike Madigan in power.
This morning, Politico Illinois Playbook reported that Straub hasn’t voted in a single Republican primary since 2010 - not even one. There’ve been two consequential presidential primaries and a critical gubernatorial primary, yet “proud Republican” Mickey Straub was AWOL.
Now, an outside group backing Mickey Straub is running an ad featuring testimonials from “neighbors,” but their Republican credentials are just as spotty as Straub’s:
Jorie Peirce - voted in 2016 GOP primary, no other recent primary elections
Peter Smolka - voted in 2016 GOP primary, no other recent primary elections
Gail Demory - voted in 2012 GOP primary, no other recent primary elections (Liberty Principles PAC misspelled her name - Gail De Mory)
Keith Lutz - Chicago resident and voter (can’t vote for Straub); voted in 2010 and 2012 Dem primaries, 2014 and 2016 GOP primaries
That’s why it’s no surprise phony Republican Mickey Straub is teaming up with Mike Madigan’s union allies in an attempt to hijack the Republican Party. It’s all a coordinated effort to keep Madigan in power.
It’s clear - Madigan Mickey doesn’t share our Republican values and can’t be trusted.
A suburban community is taking on the Illinois Republican Party and state House Republican Leader Jim Durkin.
Campaign pieces on behalf of Durkin have been hitting mailboxes in Burr Ridge and other parts of the 82nd state House District, claiming that Burr Ridge has enacted “four unbalanced budgets,” “hiked property taxes 16 percent” and “raised fees to funnel money for a Chicago bailout.”
Burr Ridge has written a letter to the party and Durkin insisting that they “cease and desist from any further distribution of false information pertaining to the village of Burr Ridge and that you immediately provide a written correction and apology for false information.”
The village’s mayor, Mickey Straub, is challenging Durkin of Western Springs in the spring Republican Primary for his state House seat.
The mailers have linked House Speaker Michael Madigan, a Democrat, with Straub. The pieces have even pegged Straub as Mini-Me, the clone of Dr. Evil, Austin Powers’ nemesis, in the “Austin Powers” movies. Madigan is depicted as Dr. Evil in the mailers.
“I got sick over it,” Straub told the Chronicle, regarding the mailings that have been hitting southwest suburban homes for the past two months. “The lies about the village and me could not be further from the truth.”
* I asked the ILGOP for a response and this is from Aaron DeGroot…
Hi Rich,
Unfortunately the Cook County Chronicle did not reach out to the state party for comment. Contrary to what Mickey Straub told the reporter, a written and dated response was sent via email from the ILGOP’s general counsel to the Village of Burr Ridge this past Friday [letter attached], sufficiently rebutting the claims made in the Burr Ridge letter, which was written by taxpayer-funded village officials.
Sadly, but not surprisingly, the Burr Ridge letter is yet another example of Madigan Mickey using public resources for political purposes. Mickey Straub should not be authorizing the use of taxpayer resources to prosecute his own personal political grudges.
This isn’t the first time Mickey Straub has misused taxpayer resources. As you know, Village records show Straub previously used taxpayer funds to attend political events. You reached out to him three times on that topic. Has he ever gotten back to you? My guess is he hasn’t.
It’s clear that “Madigan Mickey” Straub is just another politician playing the ultimate Madigan insiders game.
…Kennedy basically said he’s not dropping out because he expects to win. That his polling shows when people are “fully informed,” they choose Kennedy far above his opponents. I didn’t have the heart to tell him that “fully informed” isn’t on the table. “Fully informed,” like “perfect vacuum,” is a physical impossibility, an ideal dreamworld that doesn’t apply here. He’d do better polling people who are completely uninformed, because that’s basically who’ll find their way to the voting booths in March.
A lawsuit against Illinois’ Department of Healthcare and Family Services claims the state illegally withholds medically necessary services from children with severe mental health disorders. The case was settled in federal court this week.
Federal Medicaid law requires intensive home- or community-based services for children who need it. A class action lawsuit filed in 2011 claims Illinois violates that law.
Robert Farley, Jr., is the attorney on the suit. He says some Illinois families are so desperate to get treatment for their children, they bring them to a psychiatric hospital — and never come back for them.
“DCFS will then take custody of the child and then basically place the child residentially,” Farley said. “So you get residential services, but then you’ve given up custody of your child, which is, you know, barbaric. You have to give up your child to get something necessary.”
Data from the state shows some 18,000 children in Illinois have severe emotional or behavioral disorders. But only about 200 receive intensive treatment.
Farley estimates the changes could cost the state upwards of $400 million.
* Collins-Mandeville at the Illinois Collaboration on Youth explains…
The settlement requires the State “to design and implement a systemic approach through which Class Members will be provided with reasonable promptness the Medicaid-authorized, medically necessary intensive home- and community-based services, including residential services, that are needed to correct or ameliorate their mental health or behavior disorders.”
Even though the state had to pay court-ordered Medicaid services during the impasse, this new consent decree will actually require revamping the children’s behavioral health system and building up much needed service capacity, not just maintaining the status quo of Medicaid service delivery. As we all know, maintaining the status quo today compared to a status quo of two years ago will already be more expensive since the impasse toppled the community-based service system infrastructure.
The N.B. class is much larger than a variety of other consent decrees. It covers all Medicaid-eligible children under the age of 21 in the State of Illinois:
(1) who have been diagnosed with a mental health or behavioral disorder; and
(2) for whom a licensed practitioner of the healing arts has recommended intensive home- and community-based services to correct or ameliorate their disorders.
This settlement also comes on the heels of the Feds issuing a letter about pending and future 1115 waiver requests — something the Administration was counting on to draw down federal funds for services like those needed under the new consent decree.
Additionally, it should be noted that:
The federal court has increased oversight in the DCFS case (B.H. v. Walker), which now requires monthly status updates. Class counsel also filed a motion to enforce that consent decree alleging DCFS’ noncompliance (with clear cut, convincing evidence).
In October, the plaintiffs in Rash v. Baldwin (DOC consent decree) filed a motion to enforce their settlement agreement for timely and consistent mental health services. (The Administration agreed to that agreement and the court approved it in May 2016.)
Today, the JB Pritzker campaign released a new ad responding to desperate attempts by failed governor Bruce Rauner to meddle in the Democratic primary.
The ad highlights the growing list of blunders, missteps and failures that the Worst Republican Governor in America struggles to address as he launches an attack strategy that was recently called “prematurely desperate.” Just this week, Rauner created school funding uncertainly, thousands of Illinoisans saw their healthcare disrupted, an auto plant chose to break ground in Alabama instead of Illinois, and Rauner was forced to distance himself from embattled Missouri Governor Eric Greitens and couldn’t answer a simple question about former KKK Grand Wizard David Duke being racist.
“After coming up short on accomplishments and creating constant crisis, it’s clear that Bruce Rauner now believes inserting himself in the Democratic primary is his only chance to win re-election,” said Pritzker campaign communications director Galia Slayen. “Rauner has reached a new low in his attempt to distract from the countless failures of his governorship, but Illinoisans won’t forget the damage they’ve been forced to live through for the past three years.”
WHY DOES BRUCE RAUNER CONTINUE TO ATTACK JB PRITZKER IN THE DEMOCRATIC PRIMARY?
“Some schools now facing funding uncertainly after Governor Bruce Rauner vetoed a school funding bill.”
“Mental healthcare providers say a state computer glitch is disrupting care for thousands of patients.”
“A Toyota Mazda plant that several communities here in our area were vying for is headed to Alabama.”
“Bruce Rauner may be trying to distance himself from Greitens. Governor Bruce Rauner was asked if David Duke was a racist. The governor did not answer directly, so Duke thanked the governor.”
* From the Illinois Policy Institute’s news service…
Gov. Bruce Rauner was joined by homeowners in south suburban Chicago Thursday as he took steps to end a property tax system he called immoral, unethical and something that should be illegal.
At the news conference, Rauner announced he signed an executive barring lawmakers from arguing cases in front of the Illinois State Tax Appeals Board. […]
In order to fight high property taxes under the current system, Rauner said homeowners have to hire politically connected law firms, like the one where longtime House Speaker Michael Madigan works.
“No one who sets tax policy, no one who has an influence to increase taxes on one hand should be in a position where they financially benefit from fighting about property taxes and try to get them reduced on the other hand,” Rauner said. […]
Rauner said the system to dispute high property taxes is rigged. In addition to signing the executive order barring lawmakers from arguing cases in front of the Illinois State Tax Appeals Board, he proposes a law to ban lawmakers from making money from property tax appeals.
“We also don’t let legislators argue cases in the Court of Claims. We should do the same thing for property tax appeals,” Rauner said. “It’s a conflict of interest. It’s unethical. It’s immoral. We should also make it illegal.”
OK, first of all, he didn’t sign an EO yesterday. He said he plans to sign one in the next few days. Secondly, not many regular homeowners are hiring politically connected property tax appeals attorneys. Thirdly, legislators have to specifically vote to appropriate money to fund Court of Claims rulings, so that would definitely be a direct conflict of interest. I’m not sure such a direct conflict exists with the state property tax appeals board.
The Property Tax Appeal Board shall consist of 5 members appointed by the Governor, with the advice and consent of the Senate. The Governor, with the advice and consent of the Senate, shall designate one of the members as Chairman. The Property Tax Appeal Board shall be totally independent of the Department [of Revenue].
That makes an EO pretty iffy.
* Meanwhile, the governor was asked yesterday about this recent analysis by the Illinois Campaign for Political Reform which suggests that the Department of Revenue has some unused powers over Cook County, but he didn’t have an answer…
In Illinois, the Department of Revenue (DOR) only contributes to the final calculation of property values through an equalization assessment, and does not serve in an oversight role, as in other states. Illinois state law gives the Department of Revenue the authority to provide more oversight to county assessors, but this practice is not currently in place. Specifically, the DOR does not conduct the same equity studies that occur in Florida and Arizona, or audits similar to those in California. […]
Conduct COD (Coefficient of Dispersion) studies on assessments, used to measure equity and uniformity, and publish summary reports for each tax cycle
Perform audits of county assessment procedures every three years, and publish reports of recommended changes
Take a more proactive role in requiring assessors to produce evidence of internal controls and fair assessment practices when reviewing tax rolls
The goal of these recommendations is to ensure a more transparent and accountable assessment process across the state, and encourage oversight for this important responsibility.
* Gov. Bruce Rauner and Mayor Rahm Emanuel talked about Chicago making the Amazon list yesterday…
Rauner referenced taxes and the perception of “a corrupt system” in the state. Speaking at an event in Country Club Hills to highlight property taxes in the south suburbs, Rauner said “The CEO of Amazon, Jeff Bezos, knows how bad taxes are, and … the state of Washington, where they’re coming from, does not have an income tax.”
“So what I think, we’ll have a better case to make to Amazon if we show that we’re disciplined about our own taxes, that we work to keep our taxes low and help bring our taxes down,” Rauner later added. “If we make progress on this, this will send a great message to Amazon that Illinois is not always just raising taxes with a corrupt system, that when they grow here and they bring their employees here and grow our economy. So I hope we can make these changes. It’ll help us bring Amazon here.” […]
Chicago Mayor Rahm Emanuel, told of the governor’s Amazon comments while speaking at a separate event Thursday, suggested “it would be helpful if the state was pulling with us.”
“The governor has some challenges, he has a campaign, he has a budget coming up,” Emanuel said. “But we have incredible strengths, and as I said, four years in a row the city of Chicago has been number one in both corporate relocations and direct foreign investment. And the only thing I would say to the governor is, we’ve done that in the face of pretty bad dysfunction in Springfield. Imagine if Springfield got its stuff together, how good it would be.”
Washington doesn’t have a state income tax, but it does have a corporate gross receipts tax.
The governor also pointed to Chicago’s “great universities,” and “great education system.” He just about decimated the state’s higher education system during the impasse and he once compared Chicago’s public schools to “crumbling prisons.”
Just hours after the city and state received the good news that Chicago has made the cut of 20 cities still in the running for its prized HQ2, sniping broke out between Mayor Rahm Emanuel and Gov. Bruce Rauner that can only imperil the city’s prospects. […]
Emanuel and Rauner had, until now, avoided just that kind of infighting, which a couple of years ago appeared to have been a factor in Chicago losing its bid to house the headquarters of GE. Their collective staffs were working well together, with World Business Chicago and Intersect Illinois in regular communication.
But today’s exchange may underline what outside experts have said is the weak point in Chicago’s bid: the perception that government here is more about quarreling and scoring points than getting things done.
In an email, Rauner communication director Patty Schuh rejected the mayor’s criticism.
“It’s BS,” she said. “It took bipartisan cooperation to make the bid. It will take bipartisan cooperation to get Amazon.”
Emanuel has known privately for weeks — through back-channel communication with Amazon — that Chicago would make the cut. What the mayor didn’t know was that Chicago would have so much company on that list.
“The range of cities in terms of where they are, what they are and their airport, transportation and higher ed capabilities, their cost of living, the size and depth of their workforce, their diversity is still so varied that it is hard to read too much into this list,” a mayoral confidant, who asked to remain anonymous, wrote in a text message to the Sun-Times.
“No city on the list is that surprising to see and nobody missing that you thought you were in real competition with,” the person continued. “They received over 200 applications. Had to spend time on all of them. The hard work begins now.”
Despite the heavy competition, Chicago “makes a ton of sense” for Amazon, Google, Apple or “any other fast-growing company looking for scale. … We will compete hard and show well. We are very strong when you dig deep into the data and analyze it,” the Emanuel confidant said.
…Adding… From the governor’s office…
Rich,
There was a lot more to what the Governor said yesterday. He specifically said that Illinois has a very compelling case to make that’s not purely about tax incentives. He talked about how we’ve got hardworking people here, a good location and transportation network, a great education system and other assets that make Illinois’ bid attractive.
But there’s a time and a place for everything. And this is not the first time Rauner has soiled a corporate location pitch with a simultaneous counterargument.
It happened a couple of years ago, when talks with GE about moving its headquarters here failed in part because the governor couldn’t stop himself from about talking about the need for changes in Springfield that he would be unable to deliver. And it happened just last year, when the governor plugged the state’s shortcomings even as Illinois was trying to land a big, next-generation Toyota-Mazda plant.
If Rauner had a new plan to get some of his agenda through Springfield, I might cut him a break. But if he has, he sure has kept it secret.
If Rauner had limited his comments to something along the lines of “Illinois has a great bid and I’m working hard to make it better,” I might let it pass.
Instead, though, he appears to have shot off his mouth, impatient that Speaker Mike Madigan has not rolled over and given him his heart’s desire. Or, worse, he’s decided his path to re-election is to make Illinois truly a basket case by sabotaging the Amazon bid.
The pity is, at the staff level, the mayor’s people and the governor’s people appear to be working well together on this one. If there’s any friction, they’ve kept it quiet. Too bad their bosses can’t do the same.
Republican Gov. Bruce Rauner is stepping up his efforts to influence the Democratic governor campaign, purchasing statewide TV time to air a 15-minute ad featuring secretly recorded FBI conversations between then-Gov. Rod Blagojevich and businessman J.B. Pritzker, who is now a leading Democratic governor candidate.
Despite the much-hyped nature of Rauner’s move, his campaign is spending only about $11,900 to run it on six TV stations this weekend, said a media analyst who was not authorized to speak publicly about political ad buys. That’s a pittance compared to the $1 million a week Rauner and Pritzker each have spent at times to run political commercials across Illinois.
Rauner, however, is getting plenty of bang for his buck through the media coverage his unorthodox strategy is attracting. It’s unusual in Illinois for a candidate in one party to go to such lengths to try to steer the direction of the other political party’s primary campaign, and it’s rare to air a 15-minute ad. But Rauner, a wealthy former private equity investor from Winnetka, has the money to do so.
Except during major sporting events or stuff like that, weekend TV ads are pretty cheap.
In response to the new ad, Pritzker campaign spokeswoman Galia Slayen said: “Hundreds of people spoke to the governor at the time and whether Bruce Rauner chooses to buy a 60-second or even a 14-minute negative ad, the fact is JB Pritzker was accused of no wrongdoing. Bruce Rauner is desperately trying to interfere in the Democratic primary because he can’t defend his failed record and because he doesn’t want to face JB Pritzker in November.”
Though it had been known that Pritzker was one of the people Blagojevich considered for the Senate vacancy, the wiretaps showed Pritzker asked Blagojevich to appoint him as state treasurer instead.
“What you will not hear,” the latest ad intones, “is Pritzker rule out an appointment.”
The recordings had been obtained by the Chicago Tribune, which didn’t say how it obtained them.
* From the RGA…
Illinois Democrat candidate for governor and heir to the Hyatt hotel fortune J.B. Pritzker is facing embarrassing coverage over his weak response to his conduct on FBI wiretaps of conversations between himself and disgraced ex-Governor Rod Blagojevich.
Pritzker was pressed hard by local media yesterday on his refusal to explain or even apologize for his actions on the tapes.
ABC 7 Chicago, Illinois’ most-watched television station, showed Pritzker’s weak response on camera last night, during which Pritzker would say that “Governor Blagojevich spoke with hundreds of people at that time, and bottom line is I was never accused of any wrongdoing.”
Governor Bruce Rauner blasted Pritzker’s response, “That shows how pathetic our system is, how broken. Anyone who would use an excuse, and say, well, I did something immoral, unethical, disgusting and self-dealing, but I didn’t go to jail. So it’s okay. Are you kidding me?”
Even fellow Democrats slammed Pritzker over the tapes. State Senator Daniel Biss called him a “flawed” candidate and declared that nominating him would be a “risk” for the Democrats. Chris Kennedy went further, saying that Pritzker is “the poster child for everything Republicans say is wrong about Democratic politicians.”
That J.B. Pritzker doesn’t seem to understand why engaging in pay-to-pay politics with the convicted Rod Blagojevich demonstrates exactly why he lacks the character and integrity to hold elected office.
* The Channel 7 piece was really rough. Here’s the video. Watch it all…
* ILGOP…
J.B. Pritzker is facing brutal press following yesterday’s Chicago Sun-Times editorial board forum after refusing to call for Mike Madigan’s resignation or show remorse for his conduct on the Blagojevich FBI wiretaps. Pritzker was given multiple opportunities to distance himself from both controversial politicians. Instead, he chose to dodge and hedge in a transparent attempt to avoid casting blame on his longtime political allies and take responsibility for his actions.
Following the forum, NBC Chicago reported that Pritzker “will not speak critically of Madigan or Cook County Assessor Joe Berrios.” Watch here.
Meanwhile, the Chicago Sun-Times write-up of the forum focused on Pritzker’s ties to disgraced Governor Rod Blaogjevich.
“Pritzker, a billionaire entrepreneur and philanthropist, has been hit hard as of late by Republican Gov. Bruce Rauner’s campaign over FBI wiretaps of Pritzker’s conversations with now imprisoned former Gov. Rod Blagojevich.”
Pritzker was asked at the forum whether he had “close ties” to Blagojevich. Pritzker dodged that question, instead only saying that he regretted “the tone of portions of that conversation.” Chicago Sun-Times columnist Mark Brown labeled Pritzker’s response a “limited” and “fuzzy defense,” calling the FBI tapes a “significant problem for Pritzker.”
“To the extent Pritzker ‘rebuffed’ Blagojevich, he did so rather gently, leading to the particularly unbecoming ‘I’d do it’ segment being used in the Rauner television commercials.”
J.B. Pritzker’s ties to Mike Madigan and Rod Blagojevich represent an existential threat to his candidacy.
…Adding… Rauner campaign…
Yesterday, Citizens for Rauner launched an extended television ad featuring the full, unedited FBI wiretap capturing the quid pro quo discussion between JB Pritzker and Rod Blagojevich. State and national media reported on the ad, describing it as “full throttle,” “taking off the gloves,” and “unprecedented.”
ABC 7: “Governor Bruce Rauner taking off the gloves in his attacks on chief Democratic rival, JB Pritzker. In fact, this weekend, the governor will be begin airing a 14-minute long commercial of a conversation between Pritzker and convicted former governor Rod Blagojevich.”
Chicago Sun-Times: “The latest ad — 14 minutes long — features what it says is the entire 11-minute chat Pritzker and Blagojevich had. This ad’s introduction notes that after the earlier commercial, ‘Pritzker didn’t deny the conversation — he complained what was released wasn’t the full conversation.’ In the latest volley, the campaign now is promising the ‘full, unedited, original wiretap recordings.’”
NBC 5: “This lengthy, unprecedented ad will play the FBI tapes of the phone call between JB Pritzker and disgraced former governor Rod Blagojevich. … Governor Rauner defends the ad as a chance for the voters to hear the unedited version for themselves.”
Politico: “Gov. Bruce Rauner’s campaign is dipping deep into the campaign warchest for this one. After billionaire Democratic gubernatorial candidate J.B. Pritzker complained that a new TV ad featured a “selectively edited” recording of a 2008 conversation between Pritzker and Rod Blagojevich, Rauner’s campaign decided to go full throttle. This weekend, the Rauner campaign bought airtime to play all 11 minutes of the FBI wiretap conversation between Pritzker and Blagojevich. The ad will appear in all major media markets in the state on Saturday and Sunday, according to the campaign.”
Associated Press: “Rauner’s campaign says the move is a response to Pritzker’s statements that an ad released last week was selectively edited. That ad included a portion of audio captured on FBI wiretaps in which Blagojevich and Pritzker discuss the possibility of Blagojevich appointing Pritzker attorney general. Pritzker is heard saying, ‘That’s a deal I would take.’ … ‘J.B. Pritzker is part of the corruption and cronyism that has plagued Illinois for decades,’ the Rauner campaign said in a statement. ‘The people of Illinois deserve better.’”
National Journal: “What to do with $55.6 million in the bank for your reelection bid? If you’re Illinois Governor @BruceRauner, you air a 14-MINUTE TV AD showing your likely Democratic opponent on an FBI wiretap with Blago.”
CBS 2: “Rauner, who seeks re-election and may face Pritzker in a general election, counters: ‘Anyone who would use an excuse and say, ‘Well, I did something immoral, unethical, disgusting and self-dealing but I didn’t go to jail, so it’s OK.’ Ae you kidding me?’ Pritzker tried to brush off the recorded wheeling and dealing.
‘At no time in that conversation did I do anything that is anything other than trying to do public service to make the state better,’ he says. Not so, say his Democratic opponents. ‘It just shows what a risk it would be for the Democratic Party to nominate a flawed candidate like J.B. Pritzker,’ Daniel Biss says. Chris Kennedy adds: ‘Who’s going to want to turn out, who’s going to want to work, who’s going to want to do the extra things needed to vote for somebody who’s playing footsie with Rod Blagojevich?’”
“Rauner’s campaign is dipping deep into the campaign warchest for this one.” Right. I think Rauner’s campaign is gonna pay a price for encouraging some reporters to write or convey such nonsense.
Access to quality, affordable health care is the most fundamental basis for quality of life. Chris Kennedy, Democratic candidate for governor, and his running mate, Ra Joy, released their health care plan today to put Illinois on a path to accessible, affordable health care.
“Illinois can play a major role in ensuring that every resident has access to health care and quality healthcare experiences at all stages of life,” Kennedy said. “No individual or family should suffer for lack of access to care, and no individual or family should suffer because they cannot afford health care.
“Our state thrives when our residents are healthy and able to contribute fully to society. We envision a state where high-quality health care is easily accessible, affordable, and delivered with compassion.”
The campaign’s plan highlights women’s healthcare. Protecting a woman’s right to chose, providing broader access to birth control, and standardizing the state’s sex education curriculum to be inclusive of women’s needs is imperative.
The standardization of the state’s sex education will include information about birth control, Plan B, abortion, sexual harassment, domestic violence, rape, and tools for survivors. The increase in information is vital to future of our state.
The campaign’s plan is inclusive and includes a path to a single-payer system that starts by creating a state-backed public option of large-scale, Illinois-based employers and pre-existing municipal insurance pools to allow them to aggregate together as one negotiating entity to drive down costs. This will reduce our reliance on costly, profit-driven insurance companies and provide modern, accessible, and just coverage to all.
The employer-backed option will be made available to anyone in the state—including undocumented immigrants—which will further drive down costs for plan holders and the overall healthcare market in Illinois.
The campaign’s healthcare plan also proposes a $15 minimum wage bill that will be a required base minimum pay for all caregivers and healthcare workers. License-exempt caregivers who are caring for our children—often the children of low-income families—should not be earning less than minimum wage. Some license-exempt providers are earning as little as $16.22 per day.
“This is unacceptable. No one who works a full-time job should be forced to live in poverty,” Kennedy said.
The plan also includes works a program to treat addiction. The opioid crisis is claiming lives across our state: in big cities like Chicago, which have long suffered from government indifference to issues of addiction—particularly in predominantly minority communities—and in rural areas, where addiction to opioids has exploded in recent years. A Kennedy/Joy administration will follow Vermont’s innovative lead by adopting a Hub and Spoke model to treat addiction.
On the Path to Single-Payer: A State-Backed Public Option
A Kennedy/Joy administration will put Illinois on a path to a single-payer system. We will start by creating a state-backed public option of large-scale, Illinois-based employers and pre-existing municipal insurance pools to allow them to aggregate together as one negotiating entity to drive down costs. This will reduce our reliance on costly, profit-driven insurance companies and provide modern, accessible, and just coverage to all.
These aggregated insurance pools will emerge as an economic and political force in the state with clout, leverage, and contacts to overcome the insurance lobby. By allowing the largest employers in the state to work together to negotiate the cost of health coverage and drug prices, existing insurance companies will become nothing more than benefits managers.
Once established, with a solid foundation of committed members and employers, the employer-backed option will be made available to anyone in the state—including undocumented immigrants—which will further drive down costs for plan holders and the overall health care market in Illinois. […]
Medicaid Buy-In Program
Every person in our state should have access to affordable, quality health insurance. However, for a family of four in Illinois, the federal government will only subsidize the cost of monthly premiums if that family’s net income is $98,400 or less. As premiums rise due to decisions by the republicans in Washington, but income levels stay the same, there will be a gap in coverage, a so-called “donut” of people, who do not qualify for Medicaid but whose premiums are too high to be affordable.
A Kennedy/Joy administration will create a Medicaid Buy-In Program to allow those families who cannot afford a plan on the Health Care Exchange but who also don’t qualify for Medicaid to pay a less expensive premium, based on their income, in order to receive Medicaid coverage.
The Governor’s Office is starting a new PolicyPOV blog intended to deliver points of view (POV) on policies, programs, issues and events of concern to Illinoisans. The first post addresses how the new federal tax reform act impacts Illinois families and businesses. The blog is being hosted at the governor’s website.
The inaugural post is pretty darned complimentary of the new federal tax law. Click here.
* From the Community Behavioral Healthcare Association of Illinois’ Marvin Lindsey…
The launch of a new state computer system designed to create a “more efficient system” of registering Medicaid recipients to receive mental health care and addiction treatment services has had the opposite effect, according to advocates.
The Illinois Department of Human Services (DHS) new “Integrated Eligibility System” has failed to function as intended and has disrupted care for “thousands” of individuals with mental illness. The glitch has also stalled payment to providers as processing patient registration has ballooned to a 90-day delay in many cases, leading to “chaos and delay”, says the Community Behavioral Healthcare Association of Illinois (CBHA), a statewide advocacy group.
“Since DHS’ new computer system went live in October 2017, we have been telling DHS that a computer glitch has unleashed chaos and delays for individuals in need of behavioral health services,” said CBHA CEO Marvin Lindsey. “Now we’re in January 2018, and the problem remains unresolved and thousands are being affected as a result.”
DHS’ top official, Secretary James Dimas, acknowledged in a December 18, 2017 letter to the advocacy group that his agency’s new computer system has been hit by delays.
“As with any new technology system this large and complex, as we adjust to this new system IDHS has experienced some delays in the assignment and processing of Recipient Identification Numbers (RINs) which are required for billing and receiving payment for rendered services,” Dimas wrote. “[…] At the current time the backlog is between 10 and 12 days …”
CBHA’s Lindsey fired back in his own letter hotly disputing Dimas’ 10 to 12-day backlog claim after hearing an uproar from his member agencies, saying it’s closer to 60 days and in other cases more than 90.
“I would like to make a correction to your statement that the current time the backlog is between 10 and 12 days,” Lindsey wrote. “We have members who are still waiting on e-RINs to be processed from as far back as September. Most of our members are reporting delays from 30-60 days.”
Lindsey also warned Dimas that DHS’ computer system dysfunction was blocking access to care for those with “behavioral health illness.”
“Some of our members are reporting up to 350 people awaiting e-RINs, which, again, means there are 350 people who could not access treatment,” Lindsey said in his letter. “While the 350 clients are on the high end and cover delays of about 60 days, many of our members are reporting delays from 30-45 days, but, more importantly, consumers seeking help for their behavioral health illness are not able to access treatment.”
Lindsey said that his group has been working with the state agency but the problem remains unresolved.
“The seriousness of the problem has yet to break through to the department officials,” Lindsey said. “We need a fix. And we need it last week.”
The breakdown of DHS’ behavioral health patient registration system is the latest debacle linked to the state’s new computer system. In December, more than 40,000 Illinois families lost their food stamp benefits because of a glitch in the state’s new technology platform.
Helping individuals access mental health services in the community is a top priority for IDHS and our staff work tirelessly to ensure that we are facilitating the process of receiving those services. We are aware that the processing of Recipient Identification Numbers (RINs), which are required for billing and receiving payment for services, is behind. We believe this issue to be related to a series of retirements in this unit which reduced staff by more than half. We have implemented a temporary staffing plan that will more than quadruple the current staff dedicated to this issue and would eliminate the backlog in 2-3 months.
Contrary to Mr. Lindsey’s note to the press, department officials take this issue very seriously. We have been working collaboratively with the Illinois Association of Behavioral Health to explore different options to expedite the process. We welcome CBHA to engage with us in a similar discussion.
COMPTROLLER MENDOZA CALLS FOR REVIEW OF RAUNER ADMINISTRATION’S $100,000-A-DAY TOLLWAY DEAL
Deloitte Consulting to receive additional $9 million for 90 days of ‘emergency’ help on costly statewide tech overhaul
Illinois Comptroller Susana A. Mendoza on Tuesday called for further review by independent procurement officials of an $8.9 million, 90-day ‘emergency’ contract between the Illinois Toll Highway Authority and Deloitte Consulting for the ‘continuation of implementation services’ for the State’s Enterprise Resource Program (ERP), a state Information Technology upgrade project that has ballooned in cost under the Rauner Administration.
In a document published online on Jan. 11, Tollway officials said the additional dollars are needed because the funds assigned to the project through the State’s Department of Innovation Technology (DOIT) are depleted.
“Failing to properly estimate cost and overspending is not an emergency - it’s poor project management. This is part of a pattern of cost overruns, missed deadlines and contract mismanagement by Governor Bruce Rauner and, once again, taxpayers are footing the bill,” Comptroller Mendoza said.
State procurement practices by the Illinois Department of Healthcare & Family Services were the topic of a series of recent hearings hosted by lawmakers. In December, the State’s Chief Procurement Officer determined the Rauner Administration had misapplied an exemption to award a $12 million consulting contract to McKinsey & Company. In an unprecedented step by the Chief Procurement Officer, the McKinsey contract with the Illinois Department of Healthcare & Family Services (HFS) was invalidated.
Mendoza pointed to a $67.5 million sole source contract with the state’s Department of Human Services (DHS) for additional work on another Deloitte project to provide food stamps and other benefits to Illinoisans as another recent example of contract mismanagement by the Rauner Administration. The cost of the Deloitte benefits contract has skyrocketed to $288 million—more than double the original $143 million budget approved in 2012.
The ‘emergency’ Tollway deal is not subject to competitive bidding or a public hearing. Unlike a sole source contract, there is no waiting period for it to take effect. It is not subject to review by the State’s independent Chief Procurement Officer or the State’s Procurement Policy Board. A contract bulletin posted last week provides no details as to how the $9 million will be spent.
Comptroller Mendoza has criticized the Rauner Administration for failing to publicly disclose information regarding ERP program goals, deadlines and costs. For nearly a year, DOIT has failed to answer basic questions from the Office of the Comptroller and lawmakers regarding the status of the ERP, program staffing and funding levels. Pending a response to repeated inquiries, the Office of the Comptroller has placed a hold on payment of certain ERP contracts, representing just two percent of the FY2017 DOIT budget.
Comptroller Mendoza said applying an emergency contract designation when it’s not merited sets an alarming precedent.
“Procurement rules should be a check on irresponsible spending. Those rules are being circumvented here and we would ask that the State’s independent procurement officials review the contract and determine if this is an appropriate use of an emergency contract. To me, the Tollway has failed to make a convincing case. This isn’t a broken water main that poses a danger to drivers on a state roadway. Before a cash-strapped state starts handing over $100,000 a day there should be vetting via an open and transparent process.” Comptroller Mendoza said.
By statute, the conditions under which emergency procurements can take place include a threat to public health or safety; protecting against further loss or damage to State property; preventing disruption in services that affect health, safety or the collection of substantial state revenues; or capitalizing on a discounted price to take advantage of cost savings.
…Adding… From the tollway…
Rich:
The Illinois Tollway followed the instructions of the independent Chief Procurement Office to use a 90-day emergency procurement to continue work necessary to ensure there is no disruption in our process of implementing the Enterprise Resource Program (ERP).
The procurement will fund work over the next 12 months to complete Phase 1 of the Tollway’s ERP, which is replacing an outdated, costly and obsolete system with a new platform that will streamline administrative operations, provide greater transparency and enhance automated reporting while reducing or preventing audit issues.
These improvements will enable the Tollway to operate more efficiently.
Thanks,
Dan Rozek
Sr. Manager of Communications
Illinois Tollway
Schools do better under current school funding formula than SB 444
Last year, Illinois lawmakers passed, and the Governor signed, historic school funding reform. Then, during the fall veto session, the General Assembly passed a trailer bill (Senate Bill 444) making two technical changes dealing with how Equalized Assessed Valuation (EAV) is calculated in the new school funding formula. The trailer bill advanced so the modeling done by the Illinois State Board of Education (ISBE) for the new formula matched up with the bill that was passed by the General Assembly and signed by the Governor.
This is unprecedented in terms of school funding; where typically lawmakers get a model of the bill as it was enacted, rather than changing the enacted bill to match the modeling. Unfortunately, ISBE pointed out the discrepancy too late. However, as it turns out, Illinois school districts fare much better under the state’s historic new funding reform law (passed last summer) than they would under SB 444. It is also worth noting ISBE has told staff that “implementation of the new funding law will occur regardless of SB 444” and they will “allocate tier funding based on the law as written.”
According to the Senate Republicans, Chicago Public Schools would receive $45.5 million more under the SB444 trailer bill, which was proposed by the ISBE.
The Tax Cuts and Jobs Act creates a new wrinkle for 529 college savings plans, which are tax advantaged. The bill would allow parents to use them for K-12 expenses, including private school choice, as well as postsecondary costs. The bill puts a $10,000 cap on the money people can set aside for K-12 in these plans.
U.S. Secretary of Education Betsy DeVos and others have applauded the move, although DeVos said Tuesday the move has limitations. But others argue it will mainly help wealthier parents who can afford to set money aside, and those already sending their children to private schools.
In a last-minute twist, the Senate parliamentarian on Tuesday ruled that the slice of this provision that allowed 529 plan dollars to be spent on home schooling violated the chamber’s rule. The Senate and then the House voted to approve the bill without this provision covering home schooling costs.
* But Treasurer Frerichs just sent out a warning…
Families that use their Bright Start or Bright Directions college savings accounts to pay for tuition, fees or other expenses at private or parochial schools, including Catholic schools, would violate Illinois’ tax code, Illinois State Treasurer Michael Frerichs cautioned today. Frerichs also emphasized that federal tax reform did not change any of the benefits for using Bright Start or Bright Directions to save or pay for higher education.
Illinois’ tax code specifically limits tax-free growth in Bright Start and Bright Directions accounts when used for qualified higher education expenses. As such, a distribution from a 529 plan for K-12 costs is not a qualified expense for Illinois tax purposes. Families who claim the deduction could face state tax penalties if caught by a state tax auditor.
“Our analysis concludes that families who use Bright Start or Bright Directions money on elementary or high school expenses and then cite those expenditures when seeking tax relief will be in conflict with state law and could incur tax penalties if audited by state authorities,” Frerichs said.
In Illinois, the 529 Bright Start and Bright Directions plans are managed by the state treasurer’s office. The recently passed federal tax package allows states to expand 529 programs to private and religious K‑12 tuition expenses in 2018 and beyond. The federal legislation took effect Jan. 1 and could affect tax filers in 2019.
Here is how the tax break works for Bright Start and Bright Directions college savers who are Illinois taxpayers: Contributions to the accounts reduce a taxpayer’s Illinois adjusted gross income up to $10,000 for individuals and $20,000 for married couples filing jointly. At the federal level, the earnings generated within Bright Start and Bright Directions are not subject to federal income taxes while they accumulate. Also, distributions from these plans are not subject to federal or state income taxes when used for qualified higher education costs such as tuition, mandatory fees, certain room and board, computers and required supplies.
When former Chicago City Council Inspector General Faisal Khan launched his not-for-profit anti-corruption group close to two years ago, he insisted it was independent and nonpartisan.
At the time, Khan refused to disclose who was funding the organization, which he called Project Six — a reference to the group of civic leaders who led the fight against Al Capone during Prohibition. […]
The most recent federal tax filing for the Illinois Policy Institute shows it gave $623,789 to Project Six in 2016 — 98 percent of the group’s first-year budget. The records don’t reveal — and Project Six officials haven’t said — where the rest of its money comes from.
The Illinois Policy Institute, in turn, has received extensive support from foundations tied to some of the country’s biggest Republican contributors, including the Koch, Mercer and Uihlein families, as well as Gov. Bruce Rauner and first lady Diana Rauner’s charitable foundation. […]
In the interviews, Khan offered shifting accounts of Project Six’s financial support. He initially denied the Illinois Policy Institute was among his group’s primary funding sources.
“We’re not getting the money from IPI,” he said. “We get money from all sorts of donors, but we don’t release their names because they fear reprisal from the city of Chicago.”
Gov. Bruce Rauner says there is potential for “superstar” talent to join the University of Illinois Board of Trustees.
The Republican governor is tasked with filling the seats for three trustee terms that expired this month. Rauner said he is interviewing a number of high-caliber candidates.
“If we could land one or two of the individuals we are talking with, it would be national or international headlines,” Rauner said while on a visit to Champaign’s Franklin Middle School on Wednesday. He indicated the candidates care about the UI and already have connections to the school.
As the board prepares to elect new officers Thursday in Chicago, Gov. Bruce Rauner has yet to choose an appointee for the ninth statewide seat vacated last January.
“Our administration is still in the process of considering candidates for this vacancy,” Rauner spokeswoman Rachel Bold said Tuesday.
Last January, three members’ terms expired: Democrats Patricia Brown-Holmes and Ricardo Estrada and Republican Karen Hasara. At the time, the governor said he hoped to fill those vacancies with “superstar” talent.
“If we could land one or two of the individuals we are talking with,” he said 11 months ago, “it would be national or international headlines.”
Bold did not respond to questions about whether those individuals were still in the mix.
It’s hard to dismiss the suspicion that Gov. Bruce Rauner has forgotten that he needs to make one more appointment to the University of Illinois Board of Trustees.
Rauner, obviously, has a lot on his mind these days.
His office is preparing a budget for the new fiscal year that begins July 1. He’s preparing for legislators to return to Springfield while running for re-election. So he’s clearly busy.
Nonetheless, it’s past time for him to fill the only vacancy on the nine-member University of Illinois Board of Trustees.
Amazon today announced that it has picked 20 metro areas “to move to the next phase of the process” as it looks for a home for a second headquarters. The 20 areas in alphabetical order:
Atlanta
Austin, Texas
Boston
Chicago
Columbus, Ohio
Dallas
Denver
Indianapolis
Los Angeles
Miami
Montgomery County, Md.
Nashville, Tenn.
Newark, N.J.
New York City
Northern Virginia
Philadelphia
Pittsburgh
Raleigh, N.C.
Toronto
Washington D.C.
The list is a broad mix of cities big and small, ranging from Columbus, Ohio, and Indianapolis to Los Angeles and New York. It includes many of the early favorites, including Austin, Denver, Boston, Toronto and Washington, D.C. Three of the 20 finalists are near the nation’s capital, where Amazon has 2,500 employees.
Chicago was seen as a likely contender, based on Amazon’s criteria of wanting to be in an urban area with more than 1 million people within 45 minutes of an international airport and preferably have direct access to mass transit.
“Today we are announcing the communities that will proceed to the next step in the HQ2 process. Getting from 238 to 20 was very tough — all the proposals showed tremendous enthusiasm and creativity,” Amazon tweeted.
On its website, Amazon said, “In the coming months, Amazon will work with each of the candidate locations to dive deeper into their proposals, request additional information as necessary, and evaluate the feasibility of a future partnership that can accommodate our hiring plans as well as benefit our employees and the local community. We expect to make a decision in 2018.”
Illinois, Chicago and Cook County teamed up to offer more than $2 billion in incentives to Amazon, and offered 10 proposed sites. They are Lincoln Yards, a development along the Chicago River near Lincoln Park and Bucktown; the Downtown Gateway District, which includes space in Willis Tower and redevelopment of the old main post office and Union Station; City Center Campus, a proposed redevelopment of the state-owned Thompson Center in the Loop; the River District, a 37-acre development along the river and Halsted Street; the Burnham Lakefront, a Bronzeville development that includes the Michael Reese Hospital site; the 78, a development planned on 62 acres along the river between the South Loop and Chinatown; Fulton Market district properties controlled by multiple owners; Illinois Medical District redevelopment; the soon-to-be-vacated, 145-acre McDonald’s campus in Oak Brook, which the company will leave for Fulton Market; and more than 260 acres available for development on the longtime Motorola Solutions campus in Schaumburg, where Zurich North America recently built a new headquarters.
…Adding… Mayor Emanuel’s office…
Today’s news makes clear that Amazon recognizes Chicago’s great strengths - access to talent, transportation, higher education, affordability and quality of life, which are the keys to growth and prosperity.
As companies including GE Healthcare, ConAgra and McDonalds have concluded, Chicago offers unparalleled opportunities, and we are going to continue to work as a region to make the case to Amazon that Chicago is the ideal location for HQ2. We are prepared to compete at the next level and the next level after that.
Today, Citizens for Rauner is launching an extended television ad featuring all 11 minutes of the FBI wiretap between JB Pritzker and disgraced former governor Rod Blagojevich. It will air in every major media market in Illinois on Saturday, January 20 and Sunday, January 21.
It is in response to JB Pritzker’s claim that last week’s ad featuring his conversation with Blagojevich, in which his insider dealings were exposed, was “selectively edited.” That ad highlighted 60 unedited seconds taken straight from the Chicago Tribune reporting of the FBI wiretaps.
JB Pritzker cannot simply dismiss his conversations with a convicted former governor in which he lobbied for his own appointment to statewide political office and encouraged him to engage in a quid pro quo — especially in light of their well-documented, decades-long, cozy political friendship. JB Pritzker is part of the corruption and cronyism that has plagued Illinois for decades. The people of Illinois deserve better.
As far as the Blagojevich tape making Pritzker unelectable, the evidence would indicate even Rauner doesn’t necessarily believe so.
If he did, why would he be trying so hard to blow up Pritzker’s candidacy at this early stage before Pritzker is even the Democratic nominee?
At the very least, though, the recording is a significant problem for Pritzker, one that he keeps trying to shrug off in the affable style that is nearly as responsible for his popularity with Democratic insiders as his very deep pockets.
In an otherwise strong presentation to the Sun-Times’ Editorial Board, Pritzker stuck to his usual talking points when asked about his relationship with Blagojevich.
“Gov. Blagojevich broke the trust with the people of the state of Illinois, and he’s in prison where he belongs,” Pritzker said. “Sadly, we have a government and once again a governor that’s focused on themselves and not on doing what’s right for the people of the state of Illinois. I’m proud about doing public service. Any conversations I had were about doing public service, and any suggestion by Gov. Blagojevich of any contribution I rebuffed.” […]
My own take is that it’s less damning in its entirety than portrayed, though hardly reassuring.
Today, Daniel Biss announced the endorsement of former United States Senator Adlai Stevenson III.
“Daniel is the only Democratic candidate for governor with legislative experience, having served with distinction in both the House and Senate,” said Adlai Stevenson. “He knows state government—its structure, its processes, and how to pass the policies he believes in. He’s a reformer and a unifier with unparalleled intelligence and integrity. He’s not a billionaire—but the people of Illinois want elections, not auctions. After years of following Daniel’s career, I know he’s the leader we need to get Illinois back on track, and that’s why I’m proud to endorse him today.”
“It’s an honor to receive Adlai’s endorsement,” said Daniel Biss. “A dedicated public servant, long-standing advocate of good government reforms, and expert on all things Illinois politics, Adlai is a trusted friend and advisor. I look forward to having him on our team and to drawing on his experience and ideas as we fight for our shared values in this election cycle and beyond.”
In endorsing Daniel Biss, Adlai Stevenson III joins other progressive leaders and organizations including U.S. Congresswoman Robin Kelly, former Lieutenant Governor Sheila Simon, State Representatives Kelly Cassidy, Carol Ammons and Will Guzzardi, and many more.
The November election race for Illinois governor cost $28 million just for the last three months of 2017.
Campaign finance disclosure reports filed this week show that $9 of every $10 was spent by two candidates — Republican Gov. Bruce Rauner and Democratic challenger J.B. Pritzker.
* The Question: Do you support public financing of campaigns? Why or why not?
Gov. Bruce Rauner says the spending plan he will present during his budget address next month will be balanced, but would include spending cuts.
Rauner, who spoke with reporters after meeting with small business owners at the Edwardsville Public Safety Building, said he would not give specifics about possible cuts in the 2018-19 budget. […]
The state House is scheduled to go back into session Jan. 23 and the state Senate on Jan. 30. Rauner’s State Of The State Address is scheduled for Jan. 31, and his budget address is scheduled for Feb. 14.
“I have proposed a balanced budget every year I’ve been governor,” Rauner said.
“Today we present you with a balanced budget that shows what is possible if we all come together on a comprehensive approach to state finances and job creation” the governor told lawmakers.
Yet, the budget book produced by the governor’s office of management and budget suggests the budget is balanced by “working together on a grand bargain.” A so-called grand bargain budget compromise, though, has not been achieved or enacted.
Illinois government finance experts agree Rauner’s proposal is not balanced.
In the heated primary for attorney general, Democrats tried to raise money quick after incumbent Lisa Madigan’s surprise decision not to seek re-election. State Sen. Kwame Raoul, D-Chicago, reported $781,825, spent about $109,000 and has $1.079 million on hand. He received $5,000 from Sen. Heather Steans, D-Chicago, and smaller contributions from other fellow Democratic lawmakers. And he took in $10,000 each from Top Tobacco, Top Tubes and Republic Tobacco, all contributions that have been criticized by some of his opponents.
Former Gov. Pat Quinn received about $79,000 in contributions for his bid for attorney general, including a $55,400 transfer from the Chicago Regional Council of Carpenters PAC. He spent $32,496.08 and has $278,714.04 on hand.
Former Civilian Office of Police Accountability chief Sharon Fairley received more than $195,000 in contributions, and reported a $300,000 loan from herself. She has $387,840 on hand. Former federal prosecutor Renato Mariotti took in $345,000 in contributions and spent about $146,000. He has a bit more than $198,000.
State Rep. Scott Drury, D-Highwood, took in $506,000 in contributions and spent about $72,100. He has $731,187.94 on hand.
Highland Park Mayor Nancy Rotering took in more than $452,000 in contributions and $178,000 in loans. She spent $146,000 and had $574,383 on hand.
Chicago Park Board President Jesse Ruiz took in about $449,000 in contributions and loaned himself $100,000. He spent $194,000 and had $355,147 on hand.
Attorney Aaron Goldstein reported nearly $18,000 in contributions and loaned himself $185,000. He spent nearly $30,000 and has $206,959 on hand.
Erika Harold opposed legalizing marijuana back in 2014 when she ran for Congress — but on Tuesday, the Republican attorney general candidate said she believes Illinois should start “exploring” legalization.
She noted that there is a push in Illinois to legalize pot, and the state should be ready.
“I want Illinois to prepared for that because I think that’s ultimately where we’re going to be,” Harold said. “And I think we want to be prepared to deal with it in a way that makes sense and that protects people as much as possible.” […]
While Harold — who lost a bid for Congress in 2014 to U.S. Rep. Rodney Davis — criticized outgoing attorney general Lisa Madigan for over-politicizing her post in fighting President Donald Trump’s policies, the Harvard-educated lawyer and former Miss America on Tuesday also took issue with U.S. Attorney General Jeff Sessions’ memo that rescinded a policy that discouraged federal prosecutors in most marijuana cases from bringing charges wherever the drug is legal under state laws. It essentially allows federal prosecutors to more aggressively prosecute marijuana laws.
Then there’s state Rep. Scott Drury of suburban Highwood. He’s the real black sheep of this august group, the bete noir of a party establishment led by Democratic state party chairman and all-powerful House Speaker Michael Madigan.
Madigan not only doesn’t want Drury to win the Democratic Party’s nomination to run for his daughter’s current job, he also doesn’t — make that didn’t — want Drury in the race at all.
That’s why powerful Democrats tried — and failed — to knock Drury off the ballot with a clever ploy to challenge the legality of his candidate filing.
Was Madigan behind the effort?
He’s too clever to leave his fingerprints behind. But Madigan’s chief of staff, Tim Mapes, obtained copies of Drury’s petitions, and Drury was the only candidate whose petitions were challenged by party regulars.
As I told subscribers weeks ago, Mapes pulled petitions for just about every candidate in just about every race throughout the state.
* Candidates for Illinois Attorney General discuss women’s issues, Trump: Chicago resident Milton Davis said he was impressed with the candidates’ qualifications and answers. Still, Davis said it was hard for a specific candidate to stand out in a crowded field with similar progressive views. “There was not any one,” Davis said. “I saw some of the same answers come from different people.”
Recent questions over Gov. Bruce Rauner’s Medicaid managed care overhaul have mostly focused on the program’s rising costs and secretive contracting processes. Much less attention has been paid to the potential human impact of the program, which will force more than 500,000 people to change their insurance plans, and touch roughly one quarter of all Illinois residents. While the goal of the program is to improve health and reduce costs, there will, in fact, be plenty of people harmed by the transition.
Among the most at-risk are children with chronic, severe medical conditions, also known as children who are medically fragile. For children who are medically fragile, managed care will be devastating. Cutting services and benefits is the only way for managed care organizations to reduce costs for this population.
Until her death in 2014, my daughter Karuna participated in a program called the Medically Fragile, Technology Dependent Medicaid Waiver, which allows children requiring ventilators, tracheostomies or central intravenous lines to live at home, thanks to home nursing provided by Illinois Medicaid. Traditionally, states have recognized that children like Karuna aren’t a good fit for managed care, because their needs are too specialized and extraordinary. Unfortunately, the Rauner administration chose to ignore this precedent, and plans on moving these children into managed care starting in July.
The few states that have moved individuals who are medically fragile into managed care have experienced unanticipated negative outcomes, including loss of home nursing care; elimination of therapy services, medication and service denials; hospitalizations; emergency visits; and even deaths. In Illinois, the situation would likely be even worse, since managed care organization contracts have no provisions that would ensure children who are medically fragile maintain access to their medical equipment suppliers, home nurses and pediatric subspecialists. These omissions will put the lives of children like Karuna at risk, and will also inevitably cost taxpayers, who will be forced to pay for hospitalizations when children can’t get the care they need at home.
* Related…
* Health Insurer Centene Is Sued Over Lack of Medical Coverage: People signed up for insurance and they “ discovered there were no doctors,” said Seth Lesser, a partner at the law firm of Klafter Olsen & Lesser who is representing some of the policyholders.
In a rare break of the usual tradition of House incumbents either backing each other or staying neutral in a primary, Illinois Democratic Reps. Jan Schakowsky and Luis Gutierrez on Wednesday are endorsing challenger Marie Newman over Rep. Dan Lipinski.
Newman winning the backing of Schakowsky and Gutierrez dramatizes the intra-party Democratic divide that is animating this contest for the third congressional district seat.
Lipinski is one of the most conservative Democrats in Congress. Newman’s views are allied with Schakowsky and Gutierrez, prominent members of the Democratic progressive wing.
Informing Newman’s bid: In the March 2016 presidential primary, in the third district, Sen. Bernie Sanders, the Vermont Independent, beat former Secretary of State Hillary Clinton. Clinton went on to defeat President Donald Trump in the district.
Governor Bruce Rauner reiterated yesterday that an ad, featuring embattled Governor Eric Greitens, was only taken down because of scheduling. Rauner said the campaign decision to take down the ad was “not related” to news that Greitens has been accused of blackmailing his mistress, or that Greitens is facing calls for his own resignation. Nope, Rauner was not making any grand statement with his decision.
Rauner’s put at least $1.3 million behind an ad featuring Governor Greitens, which has been running on and off since Rauner announced for reelection. When news broke last week that Greitens was accused of blackmailing his mistress, Rauner did not renounce Greitens’ endorsement and his campaign told reporters the ad was simply being shifted out of rotation. Rauner’s campaign even left up a Facebook post with the ad.
Yesterday, Rauner was asked if the ad came down because of accusations against Greitens – Rauner said that was not the case (watch here):
“Question: In regard to your past political support for Governor Greitens, maybe you can tell us why the ‘Thank You, Mike Madigan’ ad was pulled and do you think Governor Greitens should resign?
“Rauner: Ah, well, the charges that have been made, the allegations in that situation are very serious. There is an investigation underway. And I do hope they get to the truth in that situation very quickly.
“Question: So, you have not made any decision on whether he should resign?
“Rauner: I think the investigation is underway.
“Question: Why was the ad pulled, the ‘Thank You, Mike Madigan’ ad?
“Rauner: Ah, I don’t think those were related. I think there’s a plan in place that’s been going on for a while about messaging and that’s a separate issue.”
Back at home, members of his own party are calling for Greitens to step aside. But not Bruce Rauner, who has not ruled out running the ad again.
“Bruce Rauner is sticking by his political allies rather than doing what is right,” said DGA Illinois Communications Director Sam Salustro. “It’s time for Rauner to cut ties with Governor Greitens, stop playing his video on social media, and promise never to run the ad again. Rauner has failed to show any moral leadership this week and giving political support to an accused blackmailer is sending the wrong message.”
* Rauner campaign…
Last week, in response to a new Citizens for Rauner TV ad, JB Pritzker claimed that “nobody knew” the FBI was investigating now-imprisoned ex-governor Rod Blagojevich at the time he was caught on FBI wiretap negotiating with him for his own appointment to statewide political office.
But his own words on FBI tapes about cutting an insider deal with Blagojevich, combined with prominent media reports publicly showing how the investigation into corruption in the Blagojevich administration unfolded, clearly show that JB Pritzker wasn’t telling the truth.
So why did JB Pritzker lie to cover up his ties to Blagojevich? Because telling the truth would reveal decades of corrupt, insider dealing in the midst of his campaign for governor. The two were cozy political allies, engaged in endless favor-trading – until one of them ended up behind bars.
Here’s a timeline to illustrate their unseemly connection:
1996 – JB Pritzker makes his first appearance as a money man for Blagojevich’s political career, saying ‘I’m JB Pritzker; I help with fund-raising’ (Jorge Oclander, “In Mell’s World, It’s Politics as Usual,” Chicago Sun-Times, 3/23/1996)
1996 – JB Pritzker and his wife give $3,000 to Blagojevich’s congressional campaign
1998 – After JB Pritzker finished 3rd out of five candidates in the Democratic primary for U.S. Congress in Illinois’ 9th Congressional district, Blagojevich gushes praise on the failed candidate, saying, “Remember, Abraham Lincoln didn’t win his first election and Mario Cuomo lost several races before he got elected. For JB, this is only the beginning”
2002 – JB Pritzker gives $30,000 to Blagojevich’s first gubernatorial run (State Board of Elections)
2003 – As a reward for being a member of his infamous $25,000 Club, Blagojevich appoints JB Pritzker as chair of the Illinois Human Rights Commission
2006 – Pritzker gives $100,000 to Blagojevich’s reelection campaign (State Board of Elections)
2006 – As a reward for being his 5th biggest donor, Blagojevich authorizes $1 million state grant to Holocaust museum project for which JB Pritzker served as finance chief
2008 – FBI wiretaps reveal Pritzker encouraged Blagojevich to engage in a quid pro quo with Mike Madigan for President-elect Obama’s soon-to-be vacated U.S. Senate seat, while lobbying for a top state job for himself
2018 – JB Pritzker claims no one knew Blagojevich was being investigated
Democrats in Maryland’s state legislature on Tuesday rolled out three bills in response to the new tax overhaul that President Trump signed last month, including trying to protect state and local tax (SALT) deductions. […]
One of the bills is designed to mitigate the fact that the new tax law caps the SALT deduction at $10,000. Under the measure, Maryland residents would be able to make charitable contributions to a state fund and receive a credit against their state taxes. The donations could still be deductible from federal taxes.
The other two bills would decouple Maryland’s tax code from the federal tax code.
One would allow Maryland residents to still claim personal exemptions on their state taxes, even though personal exemptions are eliminated from the federal tax code. Lawmakers said that residents would see state tax increases absent this change.
The other would separate the Maryland and federal estate taxes. The new federal tax law increases the amount that’s exempt from the estate tax to about $11 million for an individual, and Maryland Democrats want to limit the state’s exemption about to about $5 million.
The federal tax bill would ultimately cost Marylanders about $1 billion, Busch and Senate President Thomas V. Mike Miller Jr. estimated, with “$680 million in exemptions taken away.”
The bills would lower state taxes for about 92 percent of Marylanders, they said.
Gov. Andrew Cuomo’s proposed conversion from an income tax to a payroll tax would be voluntary for some businesses, officials said Tuesday.
Cuomo, a Democrat, broke with expectation and did not include details of his planned changes to the state tax code when he unveiled a $168.2 billion spending plan. Instead, the governor said his tax commissioner will release a preliminary report on the potential change on Wednesday, as well as other proposals to help high-tax New York avoid the pinch of federal limits on the deductibility of state and local taxes.
That includes, as other states have proposed, setting up dedicated funds through which New Yorkers could donate to local governments and allowing businesses to substitute payroll taxes — which are fully deductible under the federal tax bill, H.R. 1 (115) — for income taxes, whose combined deductibility with property taxes is capped at $10,000. […]
The payroll tax switch has been described by business leaders as more complicated than the donation-credit ideas advancing in New Jersey and California, but its principal benefit is its application to a wider range of people — not simply those who elect to use it, as a donation would be.
The proposed California workaround, by Senate leader Kevin de Leon, is the first of what are expected to be several legislative efforts in high-tax states to mitigate the impact of the SALT deduction cap on their residents.
The average state and local tax deduction claimed by Californians is well above the cap, at $18,438, according to de Leon’s office.
To help ensure they can still deduct much or all of the state and local taxes they pay, de Leon has proposed letting residents make a charitable contribution to the state in exchange for a tax credit.
That way, the charitable contribution would be deductible on their federal return, since the new federal tax law doesn’t limit deductions for charitable gifts except in certain instances.
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the contributions made by the taxpayer to the Illinois Excellence Fund during the taxable year. Amends the State Finance Act. Creates the Illinois Excellence Fund. Provides that moneys in the Fund shall be used for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts. Amends the Counties Code. Provides that the county board may establish a fund in the county treasury for the purpose of accepting contributions for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts and may provide for a credit against the taxpayer’s property tax liability in an amount equal to the amount of the contribution. Effective immediately.
* The Chicago Sun-Times is broadcasting its editorial board meeting with the Democratic gubernatorial candidates on YouTube. Watch it…
*** UPDATE 1 *** Rauner campaign…
Following the Chicago Sun-Times Editorial Board meeting with Democratic candidates for Illinois governor, Citizens for Rauner Communications Director Will Allison released the following statement:
“One thing was clear from today’s forum: no matter who wins the Democratic primary, he’ll be running on an agenda of more tax hikes on Illinois families and businesses. For JB Pritzker, he claims he has detailed plans, but when will he specify the rates on his progressive income tax proposal?” - Will Allison, Communications Director for Citizens for Rauner
* RGA…
“Today’s Chicago Sun-Times editorial board meeting was a train-wreck for Illinois Democrats, with candidates arguing amongst themselves over who is most beholden to the special interests and crooked politics that have dominated Illinois for so long. The reality is that they all have deep ties to disgraced politicians like Mike Madigan or Rod Blagojevich, and that the general election will be a stark contrast between their politics as usual and the reform agenda of Governor Bruce Rauner.” – Republican Governors Association Spokesman Steven Yaffe
*** UPDATE 2 *** Pritzker campaign…
Today, JB Pritzker demonstrated why he is the best candidate to take on Bruce Rauner and get Illinois back on track at the Chicago Sun-Times editorial board interview. JB highlighted his record of getting big things done for Illinois’ working families and standing up for progressive values while consistently holding Bruce Rauner accountable for his failed leadership. JB laid out his plans to reverse Rauner’s systemic disinvestment in Illinois communities and grow the economy statewide, demonstrating he is the candidate with the vision and leadership to move Illinois forward.
“JB is the only candidate in this race ready to take on Bruce Rauner and he made that clear at the Sun-Times today,” said Pritzker campaign manager Anne Caprara. “With his record of standing up for progressive values and his plans to grow the Illinois economy and create jobs statewide, it is clear that JB has the vision and leadership to move Illinois forward. JB was proud to hold that record up to Bruce Rauner’s record of failed leadership and will continue to make that message clear throughout this campaign.”
Republican Gov. Bruce Rauner’s campaign on Tuesday clarified the governor believes former Ku Klux Klan leader David Duke is a racist, amid Democratic criticism that Rauner failed to take such a stand a day earlier.
After fumbling the answer to a question about whether a former Ku Klux Klan leader is a racist, the campaign of Republican Bruce Rauner on Tuesday clarified the governor’s opinion of David Duke.
During a radio interview on Martin Luther King Jr.’s birthday, Rauner was asked if President Donald Trump was racist following reports he used vulgar language to refer to African nations. Trump allegedly also questioned why America would want to accept more immigrants from Haiti. Rauner repeatedly declined to directly answer, saying “that language has no place in our political conversation.”
When WVON-AM host Charles Thomas on Monday asked if Duke is a racist, Rauner would only respond “we have racism in our society.”
“We have got to come together to change our system,” Rauner said.
It’s not the first time Rauner has been criticized for attempting to brush aside questions about racism. Last summer, he resisted denouncing a political cartoon amid complaints that its message was racist. He also was slow to label a deadly incident in Charlottesville, Va. involving white supremacists as domestic terrorism.
Whether it’s because he’s being cautious or isn’t prepared for such questions, Rauner’s responses sometimes end up making the issues bigger than they otherwise might have been. Facing a primary challenge from his right flank and looking ahead to a potentially tough general election, Rauner’s political calculation has been to avoid further alienating his conservative base, even if that means allowing a narrative to emerge that calls into question his willingness to denounce the fringe elements from his party.
It’s been a tough road for Gov. Rauner, who can hardly go a day, it seems, without putting out a fire, tamping down a crisis or making an unforced error.
It happened again this week when Rauner joined WVON hosts on the Martin Luther King holiday. That’s when Charles Thomas (former ABC political reporter) and Maze Jackson asked Rauner about Donald Trump’s recent immigration comments and whether the president was racist. Rauner danced around it, as he does with just about every Trump question. Thomas pushed Rauner: “is David Duke racist? … I mean, what about Donald Trump?” […]
Duke, the former KKK leader, wrote of Rauner on his web site: “deep down in his soul, deep down something’s happened inside of him, and he knows that I’m not really a racist.”
Nah man, Rauner definitely thinks you’re a racist. Rauner’s problem is that he ties himself into a pretzel to avoid talking about Trump. Now he’s paying the price.
But a source from the Kennedy campaign tells POLITICO that Kennedy later this week is expected to give himself a “significant boost” by once again digging into his own pockets. Kennedy so far has donated $500,000 to his own campaign fund. He’s up against billionaire J.B. Pritzker who has plowed $42 million into his bid. However, lesser known candidate, state Sen. Daniel Biss, waited to start ads until after the new year and has burned through less cash, giving him more money to play with before Election Day.
Kennedy has actually contributed $750,000 to his campaign so far. Those contributions, in $250,000 increments, have mostly been made at the end of the quarters. He can’t wait until the end of this quarter, which would fall after primary day. So, he’s planning to kick in his usual $250K later this week, I’m told.
Obviously, he needs a whole lot more cash than that. And there are those on the campaign pushing him to dig much deeper into his bank account. But Kennedy doesn’t have Pritzker or Rauner money. A longtime friend of his told me not long ago that he believed Kennedy was worth about $10 million. So, by that measure, after this next $250K check, Kennedy will have kicked in ten percent of his net worth. Pritzker would need to spend $340 million before reaching that same point.
Spending on advertising ramped up significantly this quarter, with candidates reporting a total of $15 million in advertising-related costs. This compares to just $6.2 million spent on ads in the 3rd quarter, and $7.5 million spent in the 2nd quarter. J.B. Pritzker led the pack in ad spending with $8.4 million. Governor Rauner followed close behind with $6.7 million in reported ad spending in the 4th quarter. Senator Biss reporting $85,000 in ad-related costs, while candidates Kennedy and Ives both reported about $11,000 each in ad spending. Kennedy reported an additional $32,000 in printing costs, which could include some print advertising.
Personnel was the next most costly expenditure reported by gubernatorial candidates, with a total of $3.1 million spent on staffing-related items. J.B. Pritzker reported $2 million in personnel costs, while Rauner reported just under $400,000. Chris Kennedy spent an amount close to Rauner, with $381,000, and Senator Biss reported about $300,000 in personnel costs. Total payroll costs slightly exceeded the third quarter, in which candidates reported spending a total of $2.35 million.
Finally, candidates spent heavily on consulting services. Chris Kennedy spent a considerable amount in this category, totaling about $912,000 – just over half of his $1.6 million in spending for the quarter. Over $681,000 of his consultant spending was labeled as “media consulting.” Pritzker spent the most on consulting with $1.6 million, and Rauner and Biss trailed with $376,000 and $112,000 respectively.
Man, that Pritzker and his spending. Whew. $2 million on staff? In three months?
And the way I read Kennedy’s D-2, most of Kennedy’s “media consulting” expenditures were actually for producing and broadcasting his TV ad. So, I don’t think ICPR got that one right.
A Democratic candidate for Illinois governor accused another on Tuesday of not playing by the rules when it comes to affordable housing.
State Sen. Daniel Biss said one of his opponents, Chris Kennedy, is pushing people out of their neighborhood with the Wolf Point development on Chicago’s Near North Side.
One luxury high-rise is already up and another is on its way in the Wolf Point development, owned by the Kennedy family, along with three others.
But Biss claimed Tuesday that Kennedy should have considered how to provide affordable housing in the building - an issue that may have never surfaced had Kennedy not first criticized Mayor Rahm Emanuel of a similar offense. […]
“When Chris Kennedy skirts the rules by using his connections to powerful attorneys to avoid affordable housing requirements, that doesn’t just make him richer, that pushes people out of a neighborhood and makes working families struggle more,” Biss said Tuesday.
However, Kennedy fired back and claimed Biss is misinformed.
“There was no law broken, there was no law skirted, there was no payoff,” Kennedy said, arguing that the land was zoned back in 1973, and therefore the city rules on affordable housing do not apply.
I’m not clear about how the Wolf Point development is “pushing people out of their neighborhood.” Seems overly dramatic.
On Tuesday, Biss used a luxury high-rise development being constructed by one of his opponents, Chris Kennedy, as the backdrop to make his case for repealing the state’s rent control ban.
Biss and his lieutenant governor running mate, Rep. Litesa Wallace, were joined at the press conference by Rep. Will Guzzardi, who is the main sponsor of the repeal legislation, and Ald. Roberto Maldonado (26th), who said he wants the city to enact rent control. […]
But he’s found surprising company on the rent control issue from Pritzker, who also has staked a claim to it as he tries to burnish his own progressive credentials and fight back against Biss’ portrayal of him as just another out-of-touch billionaire.
In an interview last week, Pritzker told me he also favors removing the state “moratorium” so that local communities could “choose to have rent control.”
“That’s one example of how we might be able to begin to fight gentrification,” he said.
Pritzker also pointedly noted: “That’s not something that Chris Kennedy has advocated.”
A Kennedy spokeswoman confirmed his opposition to rent control and accused Biss of “political pandering.”
“Chris supports affordable housing and the need to put an end to strategic gentrification. Rent control is not a solution solving either of those issues. In fact, studies show that rent control worsens income inequality in gentrifying cities,” she said.
But with Pritzker believed to be well ahead in the polls—though short of 50 percent—the only way to catch him may be for either Biss or Kennedy to effectively implode or otherwise be made irrelevant, leaving the survivor with a better shot.
Biss’ pivot to attacking Kennedy is “a smart move,” said Democratic consultant Tom Bowen, who is not working for a candidate for governor this winter. “The battle for the No. 2 position is the only way to block Pritzker. Fracturing the vote won’t work.”
Put a different way, with Pritzker having consolidated support from labor, committeemen and much of the rest of the party establishment, the question is whether Kennedy or Biss will be able to do so among progressives.
Said a close Kennedy ally, “Biss has no choice” but to go negative on Kennedy. “He has to find a way to step over Chris to have a shot against Pritzker.”
Pritzker doesn’t need 50 percent in a multi-candidate primary, but the rest of this is right. Biss has to somehow leapfrog Kennedy.
But this fight for second place can’t last too long. The object is to win, not come in second. Kennedy’s famous last name keeps him in the race. Biss has a few million bucks to play with, but that’s not enough to overcome Kennedy’s inherent advantage.
Empower Illinois understands and appreciates the effort to resolve the recognition issue facing many private K-12 schools in Illinois. All quality private schools deserve access to the Tax Credit Scholarship Program provided by the Invest in Kids Act.
After the passage of SB1947, many private schools found themselves investigating how to participate in the tax credit program.
While many were registered with the Illinois State Board of Education, a significant number had not pursued recognition, a voluntary process many deemed unnecessary in the private school marketplace.
While Governor Rauner’s amendatory veto of SB444 aimed to allow these schools to participate this year, it went too far, decreasing the standard schools need to meet in order to participate, and imperiling the positive funding opportunities of SB444.
Empower Illinois believes that a compromise can be reached, which will increase the number of schools that can participate in the program without decreasing their quality, instead improving the standards that allow participation in the program. The compromise, if signed by the Governor, will also allow SB444 to become law.
EI urges legislators to refile SB444, with the following amendment added:
“Qualified school” means a non-public school located in Illinois and recognized by the Board pursuant to Section 2-3.25o of the School Code or accredited by an accrediting agency approved by the Board. A non-public school shall become a qualified school immediately upon being recognized by the Board or immediately upon having their accreditation status approved by the Board.
Accreditation, like recognition, is a detailed review process, but it goes further — it not only looks at the health and safety at non-public schools, but also a school’s academic quality.
Further, it is our position that if a school is recognized or accredited in the 2017-2018 school year, IDOR should allow SGOs to list these schools for donors to donate to, and for students to receive scholarships. Of course, SGOs would not be able to submit payment to these schools until they officially become recognized or upon adoption of the suggested amendment, accredited too.
This amendment would not unnecessarily hold up critical public-school funding in Illinois while also increasing the number, and quality of non-public schools that can participate in the first year of the tax credit scholarship program.
It’s a win-win for all; especially the children for whom are our priority.
