NFLPA executive director DeMaurice Smith is prepared to tell potential free agents not to sign with the Bears should a new Illinois bill that targets athletes be passed.
This bill would remove workers’ compensation for athletes in the state of Illinois beginning at the age of 35. For a professional athlete, this would be considered injury care in retirement. […]
“This bill being sponsored by (senate Republican minority leader Christine Radogno) is being designed to target professional athletes and take away their right to health care that every worker in the state of Illinois is entitled to,” Smith told the Spiegel & Parkins Show.
“The Bears’ owners are behind it as well, to beat the expense of the players who actually do all the work. … They’re pushing the bill. Our understanding is they’re the people who have lined up the lobbyists to promote the bill.”
Illinois Gov. Bruce Rauner has hired former state Comptroller Leslie Munger to serve as a deputy governor.
In a statement released first to The Associated Press on Friday, Rauner says Munger will focus on long-term budgeting and work with human services organizations hit hard by the state budget impasse. […]
Munger will serve in addition to current Deputy Governor Trey Childress and will earn $135,000 annually.
Thoughts?
…Adding… Press Release…
Governor Bruce Rauner on Friday announced that former Illinois Comptroller Leslie Geissler Munger has been named Deputy Governor, bringing a unique mix of business, human services and government experience to assist in addressing financial challenges facing the state and its nonprofit organizations.
“Leslie’s vast business, human services and government experiences make her uniquely qualified to serve in this important role,” Governor Rauner said. “We are thrilled that she has agreed to return to public service and bring people together to find long-term solutions for our state and its residents.”
Prior to serving as Comptroller, Munger was a brand management executive with Unilever HPC/Helene Curtis where she led the $800 million U.S. Hair Care business and prior to that she did brand marketing for Procter & Gamble. She previously led recruiting at McKinsey and Company, Inc.
Munger is also a 20-year volunteer and former board member with a nonprofit serving intellectually and developmentally disabled adults. She knows from experience about the challenges facing human services organizations and prioritized their state payments during her time as Comptroller.
As Deputy Governor, Munger will add her voice to the state’s budget discussions and work with nonprofit leaders to address their challenges and increase their financial security.
“I love Illinois, I was born and raised here, educated here, and my husband and I chose to raise our family here,” Munger said. “I am excited to use my skills and experience to help get our state back on track, and I am grateful for the opportunity to work to bring financial strength to state government and ensure that Illinois lives up to the promises it has made to our human service organizations.”
Munger earned her bachelor’s degree from the University of Illinois, Champaign-Urbana, and her M.B.A. from the Kellogg Graduate School of Business at Northwestern University.
* Another e-mail from JT went out yesterday afternoon…
Dear Colleagues,
I’ve continued to receive many questions from employees regarding the State’s Last, Best, and Final offer. In particular, these questions have asked about the State’s subcontracting proposal.
Let me begin by saying that the State has no plans to engage in mass privatization of state employee jobs. Any statements you have heard to the contrary are not correct.
Second, unlike the last AFSCME collective bargaining agreement, the State has offered protections against subcontracting that borrow from AFSCME’s contracts with other public employers. These protections give state workers a more meaningful role in subcontracting discussions, potentially leading to better outcomes for employees. Under the last contract, state employees did not have this ability.
You can read the specifics of the State’s subcontracting proposal on page 186 of our last, best, and final offer, which is posted on the TeamIllinois website.
Please refer to the State Employee FAQs page for information on subcontracting and other labor issues, as well as to submit questions.
Sincerely,
JT
John Terranova
Deputy Director
CMS Office of Labor Relations
* I asked AFSCME’s Anders Lindall for a response to one particular passage…
You asked for a response to “JT’s latest email to state employees [which says]: ‘unlike the last AFSCME collective bargaining agreement, the State has offered protections against subcontracting that borrow from AFSCME’s contracts with other public employers. These protections give state workers a more meaningful role in subcontracting discussions, potentially leading to better outcomes for employees. Under the last contract, state employees did not have this ability.’”
This is more Rauner/Terranova misinformation.
Here’s the truth: If the state wants to privatize, the union contract now requires subcontracting to meet a standard of “greater efficiency [or] economy”. Rauner wants to do away with that or any standard. Instead, under his “final offer”, the administration could, “at [its] discretion”, allow employees to bid against private contractors—but even then, the administration could reject any bid without justification or appeal.
The existing “efficiency or economy” standard helps to protect the public from outsourcing deals that waste tax dollars or let private entities cut corners to maximize profits. An example: When the state hired a corporation called Maximus to scrub the Medicaid rolls, AFSCME found that privatization would cost $18 million a year more than doing the work with state employees. In addition, Maximus was wrongly stripping Medicaid recipients of their medical coverage (likely because it employed untrained call center workers it hired on Craigslist). We showed that the “efficiency or economy” standard was not met and Maximus was dropped, potentially saving millions of dollars for taxpayers.
In general we believe that public oversight, accountability and transparency are important whenever privatization deals are considered. We think Rauner’s push to delete the “efficiency or economy” language could permit privatization without any safeguards. But we have said time and again that we’re willing to consider the administration’s proposals on this and any other issue, and to modify the proposals we’ve made previously, in an effort to find common ground. The only way to do that, though, is through negotiations, and as you know, the Rauner administration has refused to even meet with our bargaining committee for more than a year.
…Adding… And about the claim that the Rauner proposal borrows from AFSCME’s contracts with other public employers, here’s Anders…
I don’t know where they got their language from. I do know that AFSCME has thousands of contracts with employers all across the country; some have stronger subcontracting provisions than the current state of Illinois contract does, some weaker. We think the current standards are good for Illinois, but the governor can suggest changes by coming back to the bargaining table — which he refuses to do.
Before diving into politics, Gov. Bruce Rauner made his bones as a private equity investor. But the Republican said Thursday he earlier had been interested in bones of a different type.
During a visit to a Rockford elementary school, Rauner told students that his third-grade dream was to become an archaeologist.
“Boy did I ever want to dig up dinosaur bones,” he said. “I thought that was going to be so great.”
The governor touted the importance of hard work in school and told students they would be interested in different things as they grew up — just like he was. Besides archaeology, Rauner said he considered being a police officer, doctor and scientist before eventually settling on economics in college.
Rauner wanted to work with dinosaurs as a kid. Instead, he got Madigan.
Anyway…
* The Question: What did you want to be when you were a kid?
Rep. Rodney Davis, barely into his third term in Congress, is back in a familiar position: targeted in the 2018 election by the Democratic Congressional Campaign Committee.
He also has had constituents conduct a sit-in at his Champaign office, a former foe talking about running again and a sister, who lives in Springfield, encouraging voters to contact their congressman to voice support for former President Barack Obama’s Affordable Care Act.
Davis is an outspoken opponent of Obamacare who said last month that Republicans would “repair this broken law and … replace it with something better.” […]
Davis had protesters camped out in his Champaign office Monday who were unhappy about his stance on health care policy.
Tom also reported that David Gill is considering a sixth attempt at a congressional bid.
* Today, Kacich received a long e-mail from Rep. Carol Ammons (D-Urbana) saying she’s “open” to a possible bid. From the end of her e-mail…
Ammons wrote that, “I think it speaks volumes that after, as you pointed out in your column, less than 90 days since his re-election, Congressman Davis has already been identified as a target in the 2018 election.
“There is clearly a dangerous leadership vacuum in Washington and a troubling absence of compassionate public and community service. I, along with many of my fellow constituents in the 13th, are very frustrated and concerned by Davis’ unquestioning support of Trump and his executive orders. The 13th Congressional District is a diverse and varied demographic; Davis is disregarding the concerns and voices of at least half of his constituents. His decision to ignore the questions of voters by repeating unsubstantiated and false talking points lends to the extreme and partisan gridlock that we are experiencing in our state and nation.”
Underestimate her at your own peril. But Trump beat Clinton 50-44 in that district. He only lost three partial counties: Champaign, McLean and Sangamon. University communities and African-American voters were the main reason.
The Local Laborers Union 362 hall in Bloomington Thursday night was at capacity as residents gathered to learn how to push progressive values “in a time that’s antagonistic to them.”
That’s according to organizer Bob Broad. The event was called “INDIVISIBLE: Fighting the Trump-Rauner Agenda.” Broad explained it’s part of the national Indivisible movement.
From a reader…
Unbelievable turnout in Bloomington last night for the third BloNo area Indivisible training. People were sitting on the floor in multiple rows, people were standing along every wall. People came from Pontiac and rural McLean Co.
Her photo…
That’s two big rallies in just a couple of days in that town.
* Also, somebody is doing a good job trolling Davis online and at public events with a “Flat Rodney” cardboard cutout. From the Washington Post…
Opponents of Rep. Rodney Davis (R-Ill.) are trolling him over his town halls — or lack thereof
I’ve always wanted to be in 2 (or 5) places at once like both voting in DC & being back in #IL13. Looks like I’ve shaved off a few lbs too! https://t.co/FTlNX5lobN
Hays was even skeptical of Attorney General Lisa Madigan’s move last Thursday to ask a St. Clair County court to lift an order that pays tens of thousands of state workers despite the lack of an approved budget. Lisa Madigan said she did it in order to force a long-sought budget deal.
“The speaker’s daughter (Lisa Madigan) could have done this any time in the last two years,” Hays said. “This is about how daddy wants to be in charge.”
But maybe Lisa Madigan is like most of the rest of us and is tired of watching Springfield stall while it should be working. Maybe she wants to push legislators, including her father, and the governor to get going on a budget deal before the clock runs out on a court injunction on Feb. 28.
* From the Northeastern Illinois University President…
TO: University Community
FROM: Richard J. Helldobler, Interim President
DATE: February 3, 2017
RE: Preparations for a salary-savings program
Today I write to you with strong feelings of discouragement and frustration. It had been my hope that our state leaders would have found a way forward to providing us with either additional stop gap funding or a resolution to the budget impasse. Regrettably, that is not the case, and there does not seem a solution in the near future.
It has been 19 months since we have operated without a state spending plan, and as a result, Northeastern Illinois University is experiencing the worst budgetary climate it has ever experienced in its history. In spite of all this, we remain strong in our resolve to serve and provide our students with a quality education.
As I have communicated in the past, the University will complete the spring semester and hold the May Commencement ceremony. However, without stop gap funding or an adequate appropriation, we must find ways to stay afloat beyond that. A salary-savings plan, or furlough program, we have determined, is the most fair and least intrusive way for Northeastern to survive financially through the summer months until fall tuition dollars become available.
So, we have begun preparations to negotiate and roll out a salary-savings plan, or furlough program, starting in the spring semester. Those who took part in the program last spring know that a furlough plan was negotiated and is a mandatory unpaid leave of absence. Last time, we required one furlough day each week. For this spring, we have not yet determined what those requirements will be. To prepare for any negotiated plan, we have reached out to each of the five collective bargaining units that represent Northeastern employees, letting the leaders know that we would like to begin to negotiate the details and discuss how to implement such a program. I anticipate that these negotiations could last about four to five weeks, which would be roughly the amount of time before we would have to begin any agreed-upon plan to garner enough salary savings to remain solvent through the summer.
In addition to the unions, we have had discussions with other leaders at the University in the spirit of shared governance to alert them to our next moves given the budget outlook. These discussions included representatives from the Civil Service and Administrative and Professional Councils, Student Government Association, University Budget and Planning Council, University Advisory Council and the Faculty Senate.
For those of you who are Administrative and Professional or non-negotiated employees, I invite you to join me and the vice presidents at an open discussion on Tuesday, Feb. 7, from 3:05 to 4:05 p.m. in the Auditorium of the Main Campus. We can talk about our preparations and what a salary-savings program might entail for you. As always, if we are not able to talk to you in person, we invite you to submit your input or questions to the University Feedback Form. Additionally, this meeting will be available via livestream at the following link while the event is taking place: http://connectcast.tv/neiustream.
We are doing everything we can both in Springfield and here in Chicago to advocate for higher education funding and manage our finances judiciously. If you are so inclined, on Wednesday, Feb. 8, the University will provide bus transportation to and from Springfield from the Main Campus so that any interested student, staff or faculty member can participate in the Statehouse Rally to Save Higher Education. Please refer to the Jan. 31 Targeted Announcement about this event. I will be on the bus and hope to share the ride with many of you.
The only thing that will keep us from a salary-savings plan, or furlough program, is receiving adequate funding from the state. At the moment, that prospect looks grim. However, should we receive appropriate funding prior to the implementation of the plan, or after beginning the plan, we will hit the pause button, assess our financial situation, meet with appropriate leadership and discuss options.
These are very difficult financial times for Northeastern, but we will do what needs to be done to continue to provide for our students an exceptional learning environment. It is my hope that you will remain engaged in the process moving forward, whether through your union, various councils or faculty or student governance bodies. We need you at the table for these important discussions.
I want to express my sincere gratitude to you and each and every student and member of our faculty and staff for your continued commitment to Northeastern.
Thank you.
*** UPDATE *** From the University Professionals of Illinois, which is a branch of the IFT…
Dear UPI Members:
We will be sitting down at the table with the administration with regard to cost-saving measures.
We have, however, already communicated our perspective to the president and provost: furloughs are a very bad idea because they hurt the entire university; furloughs harm our students individually and retention generally; UPI agreed to furloughs last year with the proviso that we would not do so again.
As with any negotiations, our position will develop in consultation with our membership and we will be calling on all of you.
Please remember that we have the support of organizations throughout the state and in Chicago. Most importantly, we will work with our partners in the student body and with other unions and councils across the university to help craft the best political response to Illinois’s failure to represent and foster the livelihoods of the state’s people.
In solidarity and in support of the arts and sciences and professional schools at our university,
By my count, that’s 12 downgrades during Pat Quinn’s six years in office and two upward recalibrations. At the current rate, and if nothing changes, Gov. Rauner will surpass Quinn’s downgrade numbers by the end of his first four-year term.
* With that in mind, this is what candidate Rauner said about Quinn’s downgrades in 2013…
llinois’ credit rating just got downgraded again, the 12th time since Pat Quinn became governor. Unacceptable.
Rumors abound State Sen. Christine Radogno, a Republican, who is working together with Senate President John Cullerton (D-Chicago) to break the budget logjam by securing votes for the so-called “grand bargain,” is planning to pull the plug in June and/or may be heading for a state appointment by Gov. Bruce Rauner.
Or is she so disgusted and frustrated with the fractious negotiations, she is planning not to run for re-election in 2018?
• Radogno’s comment: “Opponents of the plan are getting desperate!”
* More from COGFA’s latest report with emphasis added by me…
Although Illinois’ job and wage figures have increased over the last several years, the growth may best be classified as disappointing, especially when compared to the job figures of other states across the nation. From a national perspective, Illinois has been slower than most in its recovery from the Great Recession. […]
Contributing to this slow recovery is the fact that many of the jobs that have been added in Illinois have been comparatively lower paying jobs. To understand this a little better, a closer look at the different subsectors of jobs in Illinois is necessary.
Over the last eight years (comparing average employment pre-recession totals of 2008 with 2016), the biggest improvement in the number of jobs in Illinois has been in “Education and Health Services” (up 14.0%). However, as shown below, this subsector is one of the lowest paying subsectors in terms of weekly earnings, with an average weekly earnings value of $809. Illinois’ largest employer of jobs is the “Trade, Transportation, and Utilities” subsector, employing over 1.2 million people. But, this subsector also has one of the lowest average weekly earnings totals in the State (2016 average weekly earnings value of $807).
Equally troublesome is the fact that those subsectors with the highest weekly earnings were the subsectors that have lost the most jobs over the last eight years. For example, the subsector with the highest weekly earnings is “Construction”, paying, on average, $1,334 per week. However, construction jobs are down 16.8% over the last eight years in Illinois. The next highest paying subsectors are “Financial Activities” ($1,330 per week) and “Information” ($1,130 per week), but employment in these categories are down 5.5% and 14.7%, respectively, since 2008. […]
The highest paying subsector is the “Construction” subsector. Although this category of jobs only grew slightly in 2016 (+2,000 jobs or 0.9%), employment in this subsector has grown 7.8% over the past five years (Dec. 2016 vs Dec. 2011). But, while this rate of growth for a high-paying sector may, at first, appear encouraging, Illinois’ gain in construction jobs, compared to other states, has been disappointing (ranked 38th). Even more disappointing is comparing the number of construction jobs in Illinois today compared to 15 years ago. Construction jobs are down 25.5% in Illinois over this time period, ranking Illinois 50th in this rate of change. […]
Another area of employment that continues to struggle in Illinois is manufacturing. Comparing December figures, employment in manufacturing fell 1.9% between 2015 and 2016. This rate of change ranked Illinois 39th in the nation. This rate of decline in manufacturing jobs in Illinois is similar to its five-year rate of change of -1.8%. This ranks Illinois 40th in the nation for percentage change in manufacturing jobs for this time period. This is especially of concern when Illinois’ biggest competitors have seen their comparable job totals in this subsector improve at a notably higher rate than Illinois during this time frame (Indiana ranked 10th with a growth rate of +10.3%; Michigan ranked 3rd with growth rate of +14.8%; Ohio ranked 16th with growth rate of +6.4%).
Overall base revenues fell $167 million in January. As in prior months, continued weaker income taxes along with poor federal sources more than offset gains experienced by the other revenue sources, adding further concern to observations made in last month’s briefing. January did have one more receipting day than the same prior year period.
The poor year for gross corporate income taxes continued with monthly receipts falling $60 million, or $52 million net of refunds. Gross personal income tax receipts dropped by $57 million, or $70 million net of refunds and diversions to the Fund for Advancement of Education and Commitment to Human Services Fund. Other sources dropped $18 million in January, while public utility tax receipts fell $12 million for the month. Interest income dipped a modest $1 million.
While overall revenues declined, a number of sources managed to post gains. Sales taxes grew $49 million, which represents two consecutive months of good growth. Corporate franchise taxes unexpectedly surged, jumping $29 million. Insurance taxes rose $17 million, cigarette taxes by $5 million– making up for an earlier shortage, inheritance taxes grew by $4 million and vehicle use tax by $1 million.
Overall transfers fell $20 million in January. Lottery transfers dropped by $13 million, while other miscellaneous transfers dipped $7 million. Federal sources experienced another weaker month, this time falling $99 million below last year, reflecting reimbursable spending levels from the general funds.
Year To Date
Through January, base receipts are off $1.031 billion, or 5.9%. The past months performance did little in the way of alleviating concerns over FY 2017 revenues spelled out in last month’s briefing, particularly the disturbing observations made regarding the “Big Three”. While sales tax now has managed to post back to back months of decent performance, those gains were more than erased with continued drops in both personal and corporate income taxes.
To date, gross corporate income taxes are off $444 million, or $390 million net of refunds. Gross personal income tax is down $245 million or $332 million if refunds and diversions to the education and human service funds are included. As mentioned, sales taxes may have done better in Dec/Jan but have still only grown $94 million or 2.0%. Overall transfers are down $81 million and only the one-time nature of a SERS repayment has allowed all other sources to post a $66 million combined increase.
With continued dramatic falloffs month after month in federal sources, receipts are behind last year’s dismal pace by $388 million. Absent an infusion of resources that could be committed to reimbursable spending, the outlook for a meaningful recovery for federal sources is grim.
The problem with federal reimbursements is pretty obvious. The state can’t put up enough of its own cash to leverage all available federal dollars, so we’re literally leaving money on the table.
Over the past fiscal year, the lack of an enacted budget has resulted in the State Employee Group Insurance Program (SEGIP) building up a large backlog of unpaid claims.
As of the end of December, approximately $3.91 billion in SEGIP claims were being held by the state from various insurers, organizations, and companies. Of this total, the largest portion was approximately $1.99 billion of HMO/Medicare Advantage claims. The second largest portion, Open Access Plans, totaled $743 million. The third largest portion of the overall claims hold came from CIGNA, which had $605 million in claims currently held by the state.
Concurrently, the estimated time for claims to be held was 303-675 days for Managed Care/Medicare Advantage, 468- 524 days for Open Access Plans, and 398- 608 days for CIGNA… Without additional funding, claims will continue to build up and estimated claims hold times will increase due to no appropriation for Group Insurance.
* Comptroller Susana Mendoza addressed this backlog issue during an interview with Jordan Abudayyeh. Mendoza read a letter from an SIU professor who was denied a doctor’s appointment in St. Louis because the state isn’t paying its health insurance bills…
“They say they are no longer seeing people with state of Illinois insurance because it does not pay out. Some of my colleagues have faced similar issue[s] very recently. It’s highly problematic. Everyone here goes into St. Louis to treat more serious health issues. I’m incredibly angry. This is illegal and unethical. We are all paying for services not being given. As politicians play political games, now our health and lives are on the line. We think you should know,” the Comptroller read.
Mendoza says she has to make decisions everyday on who gets paid when, juggling the needs of people around the state.
“I still feel that anybody who can go to bed at night knowing that this is happening and is just going to hold off for whatever their pet projects are, is just somebody who is disconnected from reality. And it’s not a political thing, this is a reality and I’m a person who’s in a position to see the consequences [of] this inaction at play,” said Mendoza. “So, yes, I am upset. I’m justifiably upset. People should be worried if I’m not upset and I want to make things better. I would like the Governor to do his job and actually govern, to lead, to not put blame on everybody else, to not just if you disagree with him, oh then you know, you must be speaking on behalf of some other democratic leader. That’s nonsense. I speak for myself. So do so many other Illinois residents who are yelling and feel that they’re not being heard. I’m at least trying to listen to folks. And I want to be their voice at a time where we’re faced with our worst fiscal crisis. And you know, you haven’t heard the comptroller speaking on behalf of other people, until I got here. But I’m really sick and tired of hearing all of these people complaining because they’re hurting and they’re suffering, and [if] somebody is going to speak out it’s going to be me,” Mendoza said.
Governor Rauner’s spokesperson, Catherine Kelly, sent the following statement in response to Comptroller Mendoza.
“Comptroller Mendoza spent 10 years in the General Assembly voting for the very unbalanced budgets, pension holidays and borrowing that have led to our staggering financial challenges. Instead of playing politics as usual, it would be helpful if she joined in a constructive conversation about balancing our budget and growing our economy. In the meantime, we ask that she stand with the Governor in opposing the Attorney General’s efforts to stop state employees from being paid.”
I recently received a similar letter from an SIU professor, by the way.
* Remember the Ohio pastor who told President Trump that he’d talked with “top gang thugs” in Chicago who said they’d commit to lowering Chicago’s “body count, [if] we come and do some social programs”? Yeah, well, not so much…
FOX 32: So, there are no gang leaders offering to reduce the body count in exchange for federal funds?
“No! I mean, c’mon now! (laughs) No!” Pastor Darrell Scott said. […]
Pastor Darrell Scott also told FOX 32 a lack of sleep caused him to tell President Trump that Chicago gangs had offered to “lower the body count.” He said he actually spoke to one former gang member, and not to any gang leaders.
* Scott also tweeted this…
NOT "Gang Thugs", FORMER street guys that are now community activists. MY BAD! No harm or disrespect intended! (I'm a former street guy too)
Frankly, it sounds like a bunch of bull to me and to other activists who have worked with street folks for years. […]
“There are no major gang leaders in the city of Chicago,” noted Hal Baskin, a grass-roots activist in Englewood who was once a gang-banger.
“My reality — and I have been at this for 45 years — talking about bringing the body count down in exchange for social programs, you and I know that is a ridiculous idea,” he said. […]
Tio Hardiman, president of Violence Interrupters, said he doesn’t blame the pastor for wanting to help, but agreed there isn’t any real gang structure in Chicago.
“Chicago is too divided politically, religiously and on the streets and that’s why we can’t stop the violence,” he said.
Either way, let this be a lesson. Whenever somebody says they have a simple solution to a horribly complex problem, that person is lying or incredibly misinformed.
FOX 32 asked one of Chicago’s smartest anti-violence crusaders what he would tell the president if he were invited to the White House.
“I’d tell him that we can’t just look in one area. When you look at public safety, it’s linked to public health. It’s linked to education. It’s linked to a whole number of things. It’s linked to jobs,” said Christopher Mallette, Executive Director of Chicago Violence Reduction Strategy.
A man was killed and his coworker wounded in a Logan Square neighborhood shooting early Friday on the Northwest Side, according to Chicago Police.
About 2:30 a.m., they were driving in the 3700 block of West Fullerton when a black four-door vehicle pulled alongside them and someone inside it opened fire, police said. […]
It was the city’s first fatal shooting since Tuesday night, a span of nearly 55 hours that marked Chicago’s longest stretch without a gun homicide so far this year.
In response to questions on social media, Scott said the people he spoke with include the Rev. Corey Brooks of New Beginnings Church, Kublai Toure, a longtime activist and former Chicago firefighter, and Torrence Cooks.
* Phil Kadner has been writing about high local property taxes and low state education funding for decades. He had some hope that the governor’s education funding reform commission would finally do something more than present yet another blue ribbon report that winds up collecting dust on some warehouse shelf. But then the commission released its report and Kadner is not a happy camper…
So the governor appointed members to the commission, the Democratic leaders of the Senate and House appointed members to the commission, and the Republican leaders of the Senate and House appointed members of the commission. The Illinois education secretary chaired the commission.
And more than 30 hearings and meetings were held where people spent a lot of time talking and discussing the need to do something.
They agreed, to their everlasting credit, that something indeed ought to be done, thereby joining the long list of state legislators and governors who have agreed something ought to be done since the 1990s.
What these people failed to do, however, was agree on language for a law that would actually increase school funding, reduce property taxes and provide an adequate level of education for all children in this state.
The recommendation to wait 10 years to adequately fund the schools is outrageous. Generations of students have gone through Illinois schools lacking the financial support they deserved according to the state constitution.
Imagine if the governor had appointed a Future of Nuclear Power commission and after 6 months of hearings and work the commission issued a report concluding that, indeed, there are nuclear plants in Clinton and the Quad-Cities that face uncertain futures if we don’t do something about it.
At a school in Rockford Wednesday morning, Rauner fielded questions from an audience of school children. One question concerned Illinois’ crime problem.
“For young people not to be drawn into the gang life, it’s very important that we help every young person see that they can have a great education, and have every school in every community have the proper support, so teachers can really be properly helped to help every student,” Rauner said. “And we need every young person to see a good future for themselves so being drawn into a gang is not very appealing.”
While the governor complimented the children on their tough questions, suggesting they have a future in journalism, the real reporters were given an opportunity to question the governor and declined.
Rauner would not have gone unchallenged in Chicago or Springfield. [Emphasis added.]
I don’t think I’ve ever seen that happen or heard of it happening anywhere. No questions?
* The attorney general’s office just called to say they have a hearing set in St. Clair County on their motion to vacate the order to pay state employee salaries without an appropriation.
The hearing will be held February 16th at 1:30 in the afternoon.
* By the way, if you watch the Tribune interview video, Gov. Rauner shook his head “yes” when asked if state employees should be paid without an appropriation and without a court order to do so.
Those are some very dangerous waters.
Rauner wasn’t asked, however, whether social service providers should be paid without an appropriation even though they have signed state contracts in hand.
*** UPDATE *** The governor’s office has now responded to the competing legislative proposals by House Democrats and House Republicans to pay state workers…
“It is only right that state employees are paid for the work they do, which is why we were so disappointed by the Attorney General’s motion. We are reviewing the proposals but appreciate that lawmakers on both sides of the aisle are working on solutions.”
* From a CBS 2 story on the Illinois Policy Institute’s budget proposal…
State Rep. Jeanne Ives (R-Wheaton) said she thinks the public will press for approval of the IPI budget plan.
“That four-person family where the dad’s working his tail off, and maybe has a second job, and they know that they’re funding the Medicare for an able-bodied single adult who doesn’t want to get a job; I’ll tell you what, they’re all in on this plan, sir. All in,” she said.
Um, Medicare is federal. Medicaid is state. But way to go on the class division stuff.
Also, if that four-person family has a kid in college, I’m not so sure they’ll be loving a billion dollar cut to higher education. But, hey, maybe they’ll just send their kid to an out of state college.
Democrats are moving urgently to harness the wave of grass-roots protests that have greeted President Trump in his first weeks in office to reclaim the House majority in next year’s midterm elections.
As of this week, the Democratic Congressional Campaign Committee is hiring full-time operatives to do political organizing work in 20 key Republican-held districts — an unusually early investment in House races that do not even have declared candidates yet.
Rep. Ben Ray Luján (D-N.M.), the committee’s chairman, called the move “unprecedented” for Democrats, who need to pick up two dozen GOP-held seats to win the majority. […]
The 20 targets include many of the districts where Democrats hoped to unseat Republicans last year — including suburban districts in California, Minnesota, Pennsylvania and Colorado. But they are also going into districts represented by veteran GOP lawmakers — such as Reps. John Abney Culberson (Tex.), Peter J. Roskam (Ill.), Edward R. Royce (Calif.) and Pete Sessions (Tex.) — who did not face a strong 2016 challenge but where Democratic presidential nominee Hillary Clinton ended up beating Trump.
I dunno about Roskam. Do you think he’ll be vulnerable?
A group of 16 constituents that arranged to meet with staff members at the West Chicago district office of U.S. Rep. Peter Roskam (R-Wheaton) Wednesday about their concerns with a repeal of the Affordable Care Act were abruptly told they would have to reschedule after staff realized a member of the press was present.
Sandra Alexander said she scheduled the meeting weeks ago and was stunned that they were turned away. “We are going to be respectful and see if they will change their minds,” Alexander said. […]
“He just ran off,” Alexander said. “They never told me that the media could not be here, and the reporter was willing to leave so that we could have our meeting,” she said.
* The DCCC might also want to look at Rodney Davis’ district, which is the home to something like ten universities and colleges, including UIUC and ISU. And speaking of ISU…
Josh Knight of Normal said he brought his 8-year-old son to a Not In Our Town Bloomington-Normal rally Wednesday night in Bloomington to show him how to be an American.
“I wanted to show him that we treat all people equally and that we instill in him the values of American culture that we believe in and that is freedom for all people and to be an open and welcoming person,” said Knight. […]
They were among about 1,200 people who filled the Bloomington Center for the Performing Arts auditorium to capacity in a show of support for their immigrant neighbors and to protest President Donald Trump’s executive order on immigration, making the rally one of the largest in recent memory in the Twin Cities.
1,200 people turned out for a pro-immigration rally in Bloomington? Something’s up.
The problem with that idea, however, is the district is so spread out. Bloomington and Urbana aren’t far away geographically, but they are worlds apart in many other ways. The campuses appear to dominate the district on paper, but people on those campuses almost never work together. Also, I think about 40 percent of the district is in the St. Louis media market. It’s all over the place.
*** UPDATE *** Many thanks to a commenter who pointed us to this DCCC memo, which reveals that Congressman Davis is on the DCCC’s target list, along with Congressman Randy Hultgren (which may be a bit of a stretch). From the memo…
History Isn’t On Their Side:
* Since 1900, there are only three examples of the president’s party gaining seats in the first midterm: 2002 (George W. Bush), 1934 (Franklin D. Roosevelt) and 1902 (Teddy Roosevelt).
* In modern history- since 1982- the president’s party has lost an average 28 seats in the first midterm election, even accounting for Republican gains in 2002 under President Bush.
President Trump’s Historic Unpopularity:
* In all midterms over last 23 years, the sitting president has needed a net-positive job approval in the double-digits in order to stave off losses.
* According to a new Quinnipiac University Poll conducted over Donald Trump’s first five days as President, only 36% of voters approve of his job performance.
* Trump has reached majority disapproval (Gallup Poll) in a record-shattering 8 days.
Deeply Unpopular Agenda:
* On policy, House Republicans are taking the wrong lessons from 2016: kowtowing to Trump’s most divisive policies like his border wall, while opposing him on popular plans to preserve Medicare or action on trade.
* The Republican plan to repeal the Affordable Care Act is deeply unpopular, and will continue to create political backlash across the country.
* Republican attacks on Medicare, Social Security and Planned Parenthood, and efforts to gut ethics and transparency safeguards will have repercussions at the ballot box.
The governing body of the Chicago Teachers Union called for the “immediate resignation” of schools chief Forrest Claypool on Wednesday, a symbolic gesture that also denounced budget cuts and layoffs implemented by the city amid ongoing budget turmoil.
Mayor Rahm Emanuel, who appointed Claypool to lead Chicago Public Schools in 2015, responded by saying he had “complete confidence” in the former mayoral chief of staff and Chicago Transit Authority chief.
Chicago Public Schools CEO Forrest Claypool should resign immediately “for his efforts to dismantle and sabotage” Chicago’s public schools, the leaders of the Chicago Teachers Union said.
The resolution, adopted Wednesday evening by the union’s House of Delegates, came in advance of the first of four unpaid days for teachers ordered by Claypool to save $35 million to help fill a $215 million hole in the school district’s budget caused by the state budget impasse. […]
The resolution adopted by the union’s House of Delegates, accuses Claypool and the Chicago Board of Education — all appointed by Mayor Rahm Emanuel — of “frivolously lining the pockets of wealthy investors” while students suffer the effects of deep cuts to school budgets.
OK, but how is Claypool allegedly lining those pockets and why?
WHEREAS, the efficiency measures proposed by Chicago Public Schools and imposed by the Chicago Board of Education have led to mass privatization, costly contracts, program cuts, mass layoffs, and an increased inefficiency of our public school services all while frivolously lining the pockets of wealthy investors
RESOLVED that the Chicago Teachers Union calls for the immediate resignation of CEO Forrest Claypool and a member vote of no confidence for his efforts to dismantle and sabotage the Chicago Public Schools; and be it further
So, basically what the CTU is talking about here are the CPS privatization programs. Coincidentally, part of the Senate’s grand bargain would expand those very same Chicago Public Schools privatization standards to the rest of the state.
The CTU probably should’ve been more specific, citing dollar amounts or specific privatization failures. This is, after all, a hot topic. But it’s not just some empty personality fight over who should resign.
One of Chicago Mayor Rahm Emanuel’s campaign contributors is in line to get more business from the city’s school system.
The Chicago Board of Education will vote Wednesday on three new contracts — worth around $500 million over three years — that will further privatize the management of school building engineers. One of the two companies listed on the board report is SodexoMAGIC, a company that NBA-star-turned-businessman Earvin “Magic” Johnson has a stake in.
Johnson donated $250,000 to Emanuel’s 2015 reelection bid through an organization he established called Inner City Youth Empowerment, LLC. If approved by the board, the new contract would expand a pair of contracts awarded in 2014 worth $340 million.
When SodexoMAGIC and Aramark began overseeing the cleaning and management of school facilities, principals complained about dirty classrooms and a lack of communication.
Students at a West Side Chicago public high school were surprised to find something extra in their breakfast Wednesday morning - mold.
CPS is now investigating what went wrong after a box of expired breakfast snacks was served at the West Town Academy.
“I opened the package and once I opened it I noticed the corner had mold on it,” said student Janiah Dean. […]
CPS has launched an investigation and Aramark, it’s vendor that supplies food to the school, says: “Unfortunately, at West Town Academy today a student received (food) that did not meet our high quality standards. Out of an abundance of caution, we immediately removed the product line and are working to determine how this happened. The incident appears to be isolated and did not pose a health risk to students.”
“Illinois government encourages local governments to spend more, sending billions of dollars to thousands of local governments each year,” Dabrowski said. “All this does is allow governments to spend it on things that their constituencies would never approve of. We end that charade.”
Really? Local governments are spending that revenue sharing money on stuff their own constituents wouldn’t approve of?
In addition to funding everyday core services to Illinois citizens, LGDF distributions play a role in keeping the local tax burden low.
“This idea is ridiculous,” Mayor Frank Saverino, Village of Carol Stream said.
“Municipalities like Carol Stream rely on the Local Government Distributive Fund to repair potholes, plow our roads in the winter and provide area residents with basic services. We wouldn’t be able to serve the people of Carol Stream without this essential fund.”
* The Pew Charitable Trusts took its annual look at the fiscal conditions of all 50 states. Illinois is a mess, of course.
Since the the Great Recession began at the end of the fourth quarter of 2007, Illinois ranks 49th in personal income growth - a mere 0.9 percent. Sheesh.
Illinois did a bit better in that same time period, 38th, in percentage change of employment rates - a 1.5 percent reduction.
Illinois is third highest, after Alaska and Hawaii, for debt and unfunded retirement costs as a share of state personal income - 31.7 percent.
Illinois has bled more students than it’s brought in for a while, but the trend has accelerated in the past couple of years as the state’s budget woes have exacted a toll on the University of Illinois and other public schools. In 2014—the most recent year for which data are available—Illinois saw a net emigration of 12,700 students, a 70 percent increase over a decade.
The big repercussion is that talented students may never return. “It’s a serious brain drain,” says William Morrison, a college counselor at Highland Park High School. It’s common for students to stay put after graduation: Almost half of the Urbana alumni who are alive still reside in Illinois.
At the root of all this are cuts in state funding that have forced Illinois schools to raise base tuition and fees. At Urbana, in-state rates rose 59 percent over the past 10 years, to a minimum of $15,700 and a maximum of $20,700 (not including room and board), depending on the major. At the same time, financial aid through the state’s Monetary Award Program, which provides need-based grants to residents, doesn’t go as far as it used to. It’s not even clear from term to term whether funds will be available: In a survey released in December by the Illinois Student Assistance Commission, 47 percent of Illinois schools said they couldn’t guarantee that students would continue to receive in the spring semester awards they got in the fall. […]
Illinois had the highest net migration of college freshmen to other states’ public schools in 2014 (the latest year for which figures are available). While 3,300 students came to Illinois from elsewhere, almost 16,000 fled. California lost about as many students but saw a bigger influx—9,500.
The governor’s school funding reform commission completed its work on deadline today, but fair and adequate education funding remains out of reach for too many children across Illinois, Senator Andy Manar said.
“If we can get a bill in front of lawmakers this spring, then that will be the true measure of success for the governor’s commission,” said Manar, a longtime advocate for school funding reform and the Senate’s point person on the issue. “But forgive me if I’m not ready to unfurl the mission accomplished banner just yet.”
During the summer, Gov. Bruce Rauner appointed a 25-member commission tasked with studying Illinois worst-in-the-nation school funding formula, which creates winners and losers among students and school districts across Illinois because of its overreliance on local property taxes to fund schools.
The commission met 18 times between August and today. Its final recommendations include moving Illinois to a new funding formula, a hold-harmless clause to prevent districts from losing state funds, more local control and greater transparency about spending, mandate relief for school districts, additional money for English learners and low-income students and more.
The bipartisan commission also recommended an increase of at least $3.5 billion for school funding.
“The commission should be commended for its work the past six months. I am pleased that we have a new level of awareness of the state’s school funding crisis because of this bipartisan, bicameral discussion,” Manar said.
“But in terms of a product, that work yielded another report on Illinois’ already well-documented school funding reform problems. We have a loose framework – a guide – for moving forward. What we do not have today is a piece of legislation to debate in the General Assembly. That has to be the next step.”
Manar commended Beth Purvis, Rauner’s secretary of education, for her leadership role with the commission and said he looks forward to the governor’s staff translating the recommendations into a bill that will be introduced in the Legislature this spring.
“The commission’s work was substantial, but what happens now is up to Gov. Rauner,” Manar said. “The goal has always been and should continue to be permanent reform that guarantees fair funding for all Illinois schools.”
* You should really click here and watch all of Gov. Rauner’s interview at the Chicago Tribune editorial board. It’s very interesting.
With that in mind, the governor again said yesterday that he has zero involvement with the Illinois GOP’s attacks on Speaker Madigan. This passage is from the Tribune’s coverage, with emphasis added by me…
Asked whether the attacks on Madigan could undercut efforts to reach a compromise to end the stalemate, Rauner said, “I don’t think it matters one way or the other.”
“This is the life we’ve chosen. We all live in a world — I take incoming every day. … I couldn’t care less. Say what you want,” he said.
“That’s one of the best advices Rich Daley ever gave me: He said, ‘Don’t read any press about you and don’t watch any of the ads’ and I never have, I never have. And you know what? Life is good. Just spell my name right. I don’t really care. And anybody on the other side thinks, ‘Oh, I’m a politician but you can’t say anything mean about me otherwise I won’t negotiate?’ Oh come on. Grow up. I mean, we’re not in third grade,” he said.
* From another part of that Tribune interview when the governor was asked about his veto of the Chicago teacher pension subsidy and its impact on CPS employment as transcribed by me with emphasis added…
“Well, this is one of the ways I’ve been disappointed in you guys, but this is the media. Chicago has been responsible for its own teacher pension for a hundred years, OK? Allright, so let’s not think this is some, you know, a hundred years. And Chicago has received $250 million extra since at least the mid 90s, I’d have to go back and get you the exact year. $250 million in our school funding formula. A block grant that no other district gets. It’s above and beyond any of the standard stuff because they cover their own teachers pension. They have not been at a financial disadvantage. They claim that this is wrong, they’re abused, they’re treated different, and they are different because they fund teacher pensions and they get extra money because of that. There’s been a deal, there’s been an understanding. […]
“So, the headline is: ‘Bruce Rauner caused furlough days in CPS.’ No. No.”
In 2015, Rauner offered a budget that contained a $2.2 billion hole because of proposed pension savings that the governor eventually acknowledged might not pass constitutional muster. Last year, he offered lawmakers the choice of working with him to cut the budget or letting him do it himself. He did not spell out how he would close a hole of at least $3.5 billion.
Republican Gov. Bruce Rauner said Wednesday that he will offer state lawmakers this month a budget proposal in the same format that the Democratic-led General Assembly rejected last year — either work with him on crafting a balanced spending plan or give him more power to make cuts on his own. […]
Rauner’s decision last year to present a spending plan that included the option of letting lawmakers give him the power to make massive cuts was never really considered by Democrats in the General Assembly. They said Rauner needed to specify where he intended to cut spending.
“Either the General Assembly authorizes me to make cuts, not my first choice but I’ll do that, or let’s work together to do a balanced budget with cuts and, what I prefer is, a balance of cuts, some revenues and major structural change. The real important thing is the structural change,” Rauner said [to the Tribune yesterday]. […]
“I think a deal is more likely to happen if it’s organic, coming from the rank-and-file members of the General Assembly, and the important thing is to get a good compromise. I’ve been very clear. I mean, the good news and bad news is nobody’s wondering what I think is the right thing to do,” he said.
That last line was probably intended as a joke, but it is close to being true. And if it is true, that’s a pretty sad commentary on the governor’s tenure.
Sneed hears powerful Illinois Senate President John Cullerton (D-6th) has told some of his closest Senate colleagues he is so frustrated with the budget logjam, he is thinking about not running for re-election when his term is up in two years, according to two sources.
“Cullerton is stressed and frustrated by all the nonsense going on in Springfield and the ability to get things done,” said a source who spoke to Cullerton.
“He indicated he is not going to pull the plug now, but he did say he was considering not running for re-election,” said a state senator who asked to remain anonymous. […]
“The budget logjam is frustrating — personally, professionally and politically. That’s no secret,” [Cullerton] said. “As for my future? I’ll decide that at the appropriate time. But that time isn’t now. Right now the only priority is getting a budget for the state of Illinois.” […]
“If I want to run for re-election as a state senator, I’ll need to make that decision by the end of the year. Right now, we’ve got problems to solve. I’ll deal with the other stuff later,” Cullerton said.
Dating back to the recession that began in 2008, statistics reveal that the Chicago area is up by 110,000 jobs while the rest of the state has lost 42,000 jobs.
Over the past year, state job data show, Illinois has added 30,800 jobs, a total reached by adding the 33,500 jobs Chicago gained and subtracting the 2,700 jobs lost in the rest of the state.
Gov. Bruce Rauner on Wednesday called Trump’s executive order on immigration and curbing refugee resettlement “overly broad and a little bit hurried.” […]
“Emotion is guiding too much of the conversation,” he said. “The system is not working and we shouldn’t try to deal with it on a piecemeal basis.”
Sometimes in politics, emotions get involved. Gov. Bruce Rauner on Wednesday brought up emotions when discussing his December veto of legislation that would have provided $215 million for Chicago Public Schools.
“You know, I’m a human being, I get a little emotional sometimes,” Rauner said at an appearance before the Chicago Tribune Editorial Board.
Rauner was explaining his abrupt veto of a plan that had been part of a larger deal he struck over the summer with the Democrats who control the General Assembly — House Speaker Michael Madigan and Senate President John Cullerton.
* By the way, Senate President Cullerton’s spokesman John Patterson explained his boss’ side of the veto story a while back…
Cullerton’s aide suggested it was understood that pension reform was to be deferred because of the election. On June 30, a motion filed to reconsider the bill was passed to extend the 30-day deadline to send SB 2822 to Rauner because the Illinois General Assembly would not be able to discuss pension reform until after the November election, according to Patterson.
According to a transcript of Senate Minority Leader Christine Radogno at the Senate on June 30 provided by Patterson, the senator of the 41st District said the agreement was to pass the legislation and return to the issue of pension reform at another time when the General Assembly was in session.
According to Patterson, on the same day Rauner vetoed the bill, reporters asked Cullerton whether there was an agreement after a meeting between the two, and he said no, in reference to pension reform.
Patterson said the interview was live streamed on the internet and speculated that it was seen by Rauner or an aide of his, who interpreted it to refer to the entirety of the agreement. Patterson thinks this led to the bill’s veto by Rauner and that there needs to be stronger communication between legislative leaders and the governor.
Yeah. About those gubernatorial emotions. Maybe control them?
HIV Providers in Illinois have been feeling the drastic, statewide effects of the budget impasse for some time now.
• From July - December 2015, grantee HIV testing from the Quality of Life Fund decreased 62%, resulting in a 68% decrease in the number of positives found;
• Direct grant testing decreased 59%, with a 66% reduction in positives found;
• Regional Grant testing decreased 35% with a 70% reduction in positives found, all compared to the same period in 2014;
• In March 2016, the Families and Children’s AIDS Network stopped providing prevention services in Regions 2, 7, and 8;
• Central Illinois Friends of PWA stopped implementing Effective Behavioral HIV Prevention Interventions;
• Sisters and Brothers laid off both its Deputy Director and its Interventions Manager, impacting service delivery in several regions, and cut their Region 5 services to just one day per week;
• Fifth Street Renaissance in Springfield laid off four full-time and 3 part-time positions and reduced services;
• Jefferson County laid off two staff, reduced service hours, and have indicated they may need to close their HIV prevention program;
• Bethany Place’s (Belleville) Prevention Coordinator and entire prevention staff resigned due to non- payment;
• Macoupin County laid off their main prevention staff;
• Outreach and testing that is geared and targeted towards populations with the highest rate of new HIV infections have been significantly reduced, due largely to agencies not having the resources to conduct thoughtful, strategic targeting. As a result, suburban Cook County has seen a significant reduction in the amount of newly identified HIV-positive individuals;
Even with passage of the 2016 stopgap spending plan, which is detailed below, some HIV service providers will only receive 65% of their funding.
• HIV tests in suburban Cook County have fallen by 35% since the start of the budget impasse;
• The Jackson County Health Department has ceased providing HIV testing to recently released inmates in downstate Illinois;
• PrEP 4 Illinois, a program that was intended to cover costs of PrEP for those who required financial assistance, was appropriated $1 million in the FY 15 budget; however, that program was ultimately zeroed out by the incoming Rauner administration. Canceling the PrEP4Illinois program deprived Illinoisans of financial assistance to access this game-changing HIV prevention medication;
• The AIDS Drug Assistance Program (ADAP) has been forced to rely solely on federal funds to operate;
• In June 2016, Center on Halsted, Illinois’ largest provider of state-funded HIV testing, had received no state payment for HIV testing. The organization was uncertain if they would be able to continue to provide services without a budget in place […]
Here in Illinois, funding for the HIV Lump Sum, which includes the AIDS Drug Assistance Program (ADAP) and HIV prevention, treatment and education services, has been funded at roughly the same level since FY 2011, with the amount wavering between $25 and $29 million. Since Governor Rauner came into office, he has proposed merely $20 million for FY 16 and $18 million for FY 17. Every new HIV case prevented saves the state nearly $400,000 per person in lifetime medical costs , so this drastic cut to preventive and treatment services has the potential to make the situation worse.
We are at a unique time in the HIV epidemic following the advent of biomedical interventions like PrEP, which can prevent new infections. But effective means of HIV prevention requires a commitment from the state, and Illinois has not included funding for PrEP4Illinois program in proposed budgets since Governor Rauner used his executive authority to remove $1 million in PrEP assistance from the FY 15 budget.
*** UPDATE 1 *** From Catherine Kelly in the governor’s office…
“Fitch’s action further demonstrates the importance of reaching bipartisan agreement on a truly balanced budget and changes that will grow our economy and bring new jobs to our state.”
*** UPDATE 2 *** From John Patterson, spokesman for Illinois Senate President John Cullerton…
While unfortunate, this was expected.
The looming threat was among the many reasons why the Senate is working on a comprehensive budget and reform plan. The goal is to end the nearly two-year impasse and restore financial stability.
If there’s a silver lining, it would be that hopefully this adds to the growing urgency to pass the Senate’s plan and get a comprehensive budget for the state.
*** UPDATE 3 *** Treasurer Michael Frerichs…
“Our credit rating suffers because the leaders in the General Assembly and the Governor will not negotiate an honest budget,” Frerichs said. “This singular focus on non-budgetary items is silently ripping money out of the pockets of everyone who lives in this state.”
“Borrowing costs money. Borrowing without a budget costs even more money. We know a budget will bring down our borrowing costs and yet we still have a leadership team that chooses not to negotiate. We can do better.”
“Bruce Rauner’s failed governorship continues to hurt Illinois jobs and cost Illinois families,” said DGA Communications Director Jared Leopold. “Over and over again, Governor Rauner has sacrificed Illinois’s economy to protect his special interest friends. Today, Illinois families and business are paying
* And from Illinois Working Together Campaign Director Jake Lewis…
“To borrow a phrase from Fitch Ratings, Bruce Rauner has been an ‘unprecedented failure’ as the governor of Illinois. Today’s downgrade, the sixth under Gov. Rauner, is yet another indicator of the damage the governor has inflicted on Illinois and its people during his time in office. According to Fitch, the budget impasse has ‘fundamentally weakened’ the state. It will take years for Illinois to recover from Rauner.
“As residents and college students flee Illinois in record numbers, it is time for the governor to do something he has failed to do in his first two years in office: listen. The governor must drop his extreme political agenda for good and work to pass a responsible, fully-funded budget.”
Fitch Ratings has downgraded the following ratings of the state of Illinois:
–Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB+;
–$25.9 billion in outstanding general obligation (GO) bonds to ‘BBB’ from ‘BBB+’;
–$431 million Illinois Sports Facilities Authority sports facilities bonds (state tax supported) to ‘BBB-’from ‘BBB’;
–$2.6 billion Metropolitan Pier and Exposition Authority McCormick Place expansion project bonds to ‘BBB-’ from ‘BBB’;
–$267.8 million city of Chicago motor fuel tax revenue bonds to ‘BBB-’ from ‘BBB’.
The Rating Watch Negative is maintained.
Fitch warned it would downgrade the ratings if the state didn’t have a budget by the end of January.
The downgrade of Illinois’s IDR and related ratings reflects the unprecedented failure of the state to enact a full budget for two consecutive years and the financial implications of spending far in excess of available revenues, which has resulted in increased accumulated liabilities and reduced financial flexibility. Even if the current attempts at a resolution to the extended impasse prove successful, Fitch believes that the failure to act to date has fundamentally weakened the state’s financial profile.
The Negative Watch reflects Fitch’s expectation that the state’s implementation of a solution, whether temporary or permanent, will be a challenge in the current political environment and that in the interim the state will continue to delay and defer payments in lieu of balancing the budget. While Fitch acknowledges that there is a plan being developed in the state Senate that contains elements that could ultimately resolve the impasse, its passage is uncertain and the timing of implementing solutions is unknown. Fitch expects to resolve the Rating Watch within the next six months based on an assessment of the state’s fiscal trajectory as it starts fiscal 2018. If the state continues on the current path, a further downgrade would be warranted.
Illinois has failed to capitalize on the economic growth of recent years to bolster its financial position. Rather, the decision to allow temporary tax increases to expire and the subsequent failure to develop a budget that aligns revenues with expenditures have resulted in a marked deterioration in the state’s finances during this time of recovery. Once again, the state has displayed an unwillingness to utilize its extensive control over revenues and spending to address numerous fiscal challenges.
* Fitch projects revenue performance will “continue to track slow economic growth,” and claims it is “unlikely that reductions in state spending alone would be sufficient to achieve budgetary balance given the magnitude of the current budget gap.”
Illinois’ operating performance, both during the great recession and in this subsequent period of economic growth, has been very weak. The failure to address a long-standing structural budget gap with permanent and comprehensive solutions, whether revenue or expenditure, has left the state with an gaping hole in its operating budget and increasing budgetary liabilities.
The state Senate has put forth a series of bills that have the potential to lead to a compromise that will resolve the impasse. The Senate bills include raising the state income tax and other revenue measures, debt issuance to reduce accumulated budgetary liabilities, pension reforms, aid to Chicago public schools, and non-budgetary reforms sought by the governor, including a freeze on property taxes, workers compensation reform, and some form of term limits. These proposals, if they proceed through the full legislature and are signed by the governor, have the potential to meet the requirements to stabilize the Illinois IDR and related ratings. However, their passage is uncertain as is the timing of the implementation of any solutions.
RATING SENSITIVITIES
BUDGET SOLUTIONS: Failure to enact a balanced budget for fiscal 2018 would result in a further downgrade. Successful implementation of measures to enact a structurally balanced budget and reduce accumulated budget liabilities would stabilize the credit.
LIQUIDITY: The rating is sensitive to a material reduction in the state’s ability to manage within available revenues through discretionary payment deferrals. Furthermore, failure of the state to make its statutorily required debt service transfers as scheduled, 12 months in advance on a rolling basis, would result in an immediate downgrade of the rating to below investment grade because it would suggest that the state’s liquidity pressures are presenting a risk to bondholder interests that has not been evidenced to date.
Governor Bruce Rauner’s Illinois School Funding Reform Commission today approved a framework that allows members of the General Assembly to create a new school funding formula.
“Illinois is another step closer to fixing our broken school funding system,” Governor Rauner said. “I applaud the Commission members for putting politics aside to advance a bipartisan framework that can serve as an immediate roadmap for legislation. The framework ensures all public school children in Illinois receive equitable funding, no matter where they live. We look forward to working with members of the General Assembly to quickly resolve the outstanding issues identified in the report with the hope of enacting a bipartisan school funding reform package as soon as possible.”
The 25 commission members, comprised of five members from each party in each chamber and five members appointed by the Governor, met for over 75 hours in the last six months to reform the school funding formula. The framework will better focus resources on the needs of the students and districts. Through this framework, new funding will first go to schools who are farthest away from their adequacy targets, serving the most vulnerable students. This measure will address inequity within districts, not just among districts, and also ensure all public school children, including those who attend charter schools, receive equitable treatment.
“This has been a robust, bipartisan and bicameral process,” said Illinois Secretary of Education Dr. Beth Purvis. “I am incredibly thankful that these really dedicated members of the General Assembly and the Governor’s appointees were able to come and have substantive conversations in which children were at the center of the decision-making.”
Three mechanisms have been discussed that could be used to increase funding to districts with high concentrations of poverty. First, elements could provide increased funding for low-income students and students living in concentrated poverty. Second, using enrollment instead of average daily attendance may increase funding to schools with large low-income student populations or populations of students in concentrated poverty. Third, the distribution formula could direct additional funds to districts based on poverty concentration. In addition, funding alone is unlikely to be sufficient to close the gap; new service delivery approaches will also be needed. ISBE is working to build a model in which the separate and cumulative effect of these factors can be assessed so as to best ensure that this point of consensus is reflected accurately in the data.
So, no consensus apparently on how to distribute funds, which was kind of the point.
Elements will be written into statute; however, it is important to the members of the Commission that there be flexibility in their implementation so that districts can implement strategies that will lead to the best academic and socio-emotional outcomes for their students. Within three years of the initial implementation, ISBE should suggest changes, if warranted.
At the time of writing this report, the amount of additional state money needed for all districts in Illinois to be at or above their adequacy target is estimated to be a minimum of $3.5 billion over the next decade. It should be noted that this figure makes several assumptions and will fluctuate over time as adequacy targets and local capacity change. In fact, for the state to take an increasingly larger share of responsibility for education funding (e.g., 51%), this figure is projected to rise by at least $2.5 billion. However, how the rate at which we achieve that goal has not been decided. Furthermore, this figure does not account for additional capital needs of the districts.
Commissioners agree that consolidation in certain areas of the state is important but that the solution to this problem should not be reached through funding formula reform.
There was also no consensus on mandate relief and private school tax credits.
* We talked briefly about this guy on Monday. Here’s WMAQ TV’s take…
As the Democratic field for the 2018 gubernatorial election continues to take shape, a little-known candidate from Chicago’s northern suburbs has already thrown his hat in the ring.
Alex Paterakis, a 29-year-old Skokie native, said he decided to run for governor in October as a response to the nation’s increasingly polarized political landscape.
“I was getting sick of how politics were being done, how things were being run, partisan politics being everyone against everyone else with no one actually listening to other people’s opinions,” Paterakis told Ward Room Tuesday.
The political newcomer is campaigning on a progressive platform that includes a minimum wage hike, marijuana legalization, and an agenda to oppose President Donald Trump. Paterakis, who owns a pair of small online retail businesses, hopes his campaign will appeal to middle class Illinoisans.
“I think people are really reflecting the message, which a lot of Democrats have forgotten, which is the middle class,” Paterakis said. “They lost the middle class to Donald Trump.”
PS: I have a ton of errands to run today, so I’m not sure when I’ll be back. It’ll likely be a very light early afternoon around here, so make the most of what you’ve got.
At a meeting Wednesday with members of the African American community, President Donald Trump again talked about Chicago violence saying if city officials don’t take steps,”we’re going to solve the problem for them.”
“Because we’re going to have to do something… What’s happening in Chicago should not be happening in this country,” Trump said.
Trump said violence in the city was ‘totally out of control.” […]
[Darrell Scott, an Ohio pastor who campaigned for Trump] said he was talking to members of “top gangs” in Chicago – he did not identify who – who wanted a “sit down” to discuss how to “get that body count down” in return for “social programs.”
“It’s a great idea,” Trump said about a possible meeting involving gang leaders and social programs.
* With all the talk of the Senate’s grand plan and the attorney general’s legal motion on employee pay, we may be forgetting that the governor’s budget address is just two weeks from today. So, this excerpt from a Tribune story today is worth posting…
In 2015, Rauner offered a budget that contained a $2.2 billion hole because of proposed pension savings that the governor eventually acknowledged might not pass constitutional muster. Last year, he offered lawmakers the choice of working with him to cut the budget or letting him do it himself. He did not spell out how he would close a hole of at least $3.5 billion.
* I, for one, believe that we should take the Illinois Policy Institute’s budget plan seriously. For too long, way too many Illinoisans have believed that the undefined “they” could simply cut governmental waste to balance the state’s budget. So, the “Institute,” in some ways, is doing us all a service by showing what will really happen if the budget is balanced without a tax hike, like tossing 600,000 people off Medicaid, or whacking university funding by a billion dollars and forcing school districts to pay a billion dollars a year in higher pension costs, etc.
A [property tax] freeze, coupled with stripping municipalities of the 9-cents per dollar they’ve received since Illinois first implemented an income tax, would further strip localities of another key funding source. The IPI says it’s taking away a “subsidy,” but head of the Illinois Municipal League Brad Cole says that’s a misnomer.
“For many small communities, it’s the only source of income they have, so it provides for the health, safety and welfare of their residents,” Cole said. “It’s not as simple as saying ‘let’s cut the LGDF (Local Government Distributive Fund).’ I mean, that would abandon the entire state, whether it’s Cairo or Chicago.”
Additionally, the IPI wants to make it harder for units of local government to look to raise taxes in the future, by requiring referenda pass with a two-thirds majority before any hikes. […]
That would be a “heavy burden” and is “overly restrictive,” Cole said.
“What if a water treatment facility doesn’t get expanded, then the community can’t grow, or keep up to date with EPA (Environmental Protection Agency) regulation,” he said, as a hypothetical.
Cole needs to up his game, but at least it’s a start. Local reporters ought to call their mayors, school board chairs and university/college presidents to hear what they have to say, as well. And, you know, maybe talk to some people who got into Medicaid because of Obamacare and who would be facing a life without affordable or any health insurance.
People have seen what the impasse has done. But they have to understand that solving this problem is no easy or painless matter.
research suggests that these cuts would also have a devastating effect on the state’s economy. Partly, that’s because they would directly lead to thousands of lost jobs, as schools and colleges laid off teachers, janitors, counselors, and other employees. (To get a sense of the magnitude, $200 million in cuts led to 1,400 layoffs in the Chicago Public Schools in 2015; Chicago State University laid off 300 employees to save $24 million in 2016. Scaled up to the full statewide cuts, that would total nearly 20,000 lost jobs as a direct results of cuts in the education sector alone).
But education, in particular, drives Illinois’ economy in ways beyond the people that schools directly employ. In fact, economists have estimated that for each dollar invested in an institute of higher education, $2.286 is generated in the state economy, as students, professors, and other employees patronize local businesses, support families, and contribute to a vital local economy. That means that IPI’s proposed $950 million cut to higher education could result in over $2.17 billion in losses to the state economy.
More broadly, CTBA’s recent report on higher education funding highlighted research showing that over the last generation, investing in residents’ educational attainment has been crucial to robust state economies.
Additionally, copious independent studies have found that the Medicaid expansion under Obamacare has been a net positive for state economies. A study in Kentucky found that Medicaid expansion in that state generated 40,000 jobs; another study found that Medicaid expansion created 31,000 jobs in Colorado. Blending these estimates and adjusting for Illinois’ population, that suggests that IPI’s proposal on Medicaid alone could eliminate more than 95,000 jobs.
* The CTBA also looked at the “Institute’s” pension plan and discovered this…
While IPI’s plan costs less in the first few years — in part thanks to artificially lowered state payments from delaying the full implementation of changes to actuarial assumptions — within a decade or so, it actually becomes a net drag on the state budget, and continues to add billions of dollars in additional payments through the 2040s.
U.S. Senators Dick Durbin (D-IL) and Tammy Duckworth (D-IL) today urged Illinois Governor Bruce Rauner to stand on the side of Illinoisans and oppose repeal of our health care system. Repealing health care without a replacement would have immediate and harmful impacts on hardworking Illinois families – including those with employer based insurance – such as reducing insurance coverage, increasing out-of-pocket costs, reducing the quality of health care coverage, burdening providers, killing jobs and harming Illinois’ economy. They also called for his concrete recommendations on how to improve the health care system for Illinoisans state-wide.
“Independent analyses paint a very grim picture of the health care environment that Illinois would face if Republican ‘repeal without replace’ efforts are successful. For instance, the Illinois Health and Hospital Association (IHA) has expressed concerns that ‘people will not be able to get the care they need; local economies will suffer; and jobs will be lost.’ In our state alone, the IHA estimates that Congressional Republican plans to repeal the ACA without replacing it would result in ‘potential losses of $11.6 billion to $13.1 billion in annual economic activity, which translates to a potential job loss of 84,000 to 95,000 jobs,’” wrote the senators in a letter to Gov. Rauner. “We strongly urge you to reconsider your position towards these destructive Republican plans, and to stand firmly with Illinoisans against efforts to repeal the ACA without an adequate replacement plan in place to protect the coverage gains, affordability, benefits, and consumer protections that Illinoisans currently enjoy. Further, we would welcome your thoughts on how best to improve the ACA for Illinoisans state-wide.”
Durbin on Monday told the Sun-Times that governors across the country should be standing up against a repeal.
“Governors like [John] Kasich of Ohio are stepping up and saying eliminating Medicaid coverage is a disaster because that is compensation for providers that will go away. What we do know from the Illinois Hospital Association is that many downstate hospitals will be threatened if they lose this Medicaid infusion,” Durbin said. “We also know that when these hospitals in downstate communities start facing closure or they’re going to restrict construction and lay off people with the best paying jobs in town. So it is a devastating impact.”
In a statement regarding the senators’ letter, the Rauner administration on Tuesday noted Durbin was a lead proponent of Obamacare, which they said “resulted in skyrocketing health care costs on millions of Americans.”
“As Senators Durbin and Duckworth well know, our administration has urged Congress to take a thoughtful approach to any new health care changes,” spokeswoman Catherine Kelly said. “As always, the governor will continue to advocate for the best interests of the people of Illinois.”
The senators’ letter also criticized a Rauner administration response to House Republicans earlier this month, saying it failed to provide information about the potential fallout or benefit from appealing the act.
A political organization aligned with House GOP leaders unveiled a $1.3 million ad campaign on Tuesday that targets Democrats representing districts won by President Trump to urge support for repealing and replacing ObamaCare.
American Action Network’s campaign includes local ads in a total of 24 districts, as well as national TV ads on CNN and MSNBC. The ads focus on eight Democrats in Trump-country districts and 16 Republicans mostly representing swing seats.
The group’s advertising campaign in support of repealing the healthcare law will total $5.2 million for the month of January.
Yeah, it will most definitely mess with the governor’s messaging if it happens. How can Team Rauner say King Madigan is trying to shut down the government via his daughter’s legal motion in St. Clair County if the House puts this one on the big board?
Not to mention that the Illinois Policy Institute has already proposed doing the exact same thing.
On the other hand, how do lots of House members vote for this bill if it doesn’t include money for social service programs, higher education, etc.? And what does the Senate do? They’ve got their own proposal, after all.
So, possibly more positioning, but probably little actual progress - which is pretty much par for the course in the Illinois House.
Democratic members of House leadership received an email from Speaker Mike Madigan’s office Wednesday morning telling them to expect a bill that would appropriate funds for tens of thousands of employees. It could be voted on next week. […]
With such a bill, however, comes an interesting set of questions for lawmakers with various priorities, including those who would question paying state workers before paying social service providers or funding MAP grants for needy students. That likely means additional items are added to the bill. The proposed legislation would not negate the court battle, which could prove to take months, but would act as a stopgap, giving the Illinois Comptroller authority to pay certain bills on time.
*** UPDATE 2 *** The House Republicans are out with their own proposal…
- State Representative Avery Bourne (R-Raymond) filed House Bill 1787 today that would make state workers’ salary payments a continuing appropriation, guaranteeing payment during a budget impasse. This measure would keep workers paid and prevent a government shutdown.
This has become a particularly urgent issue due to Attorney General Lisa Madigan filing a motion in court to end payment to state employees beginning February 28th, 2017. In response, there has been talk of a similar bill that would provide for a short term appropriation for state worker salaries. However, a stop gap appropriation would be a temporary fix and would leave state worker pay vulnerable to future attacks. This proposal is a long-term solution to the problem of state worker pay being held hostage in a larger political fight.
“This legislation will prevent state worker pay from being used as a political pawn. Families across Illinois rely on the vital services provided by our state agencies. Before I arrived in the General Assembly, legislators chose to make their pay a continuing appropriation which guaranteed their pay with or without a budget. However, those legislators did not afford those protections to state employees. This legislation will keep state worker pay out of the political games that are too often played in Springfield.”
If enacted, this legislation would be effective immediately. Bourne previously co-sponsored similar legislation in the 99th General Assembly that was not allowed a committee hearing. Representative Bourne and her colleagues are calling on the House of Representatives to take up this issue as soon as they return to the Capitol next week.
* Greg Hinz on the Illinois Policy Institute’s budget proposal…
So, what’s in the institute’s secret sauce?
Just a few minor things: slashing the state’s Medicaid rolls by 600,000 people, allowing local governments to declare bankruptcy and impose rather than bargain pay and benefits, keeping $1.75 billion a year in revenue that the state now shares with municipalities for its own needs, and enacting workers’ compensation changes that Springfield Democrats have vigorously resisted.
Among other things.
Piece of cake, right?
Policy Institute chief John Tillman urged reporters not to be “cynical” about the plan, not at a time when the state is losing jobs and residents.
“Politicians have not earned the right to ask Illinoisans for more money,” Tillman said, accompanied by state Reps. Jeanne Ives, R-Wheaton, and Allen Skillicorn, R-Crystal Lake. “Our plan, unlike every other budget plan being discussed, ensures that taxpayers are respected and treated fairly rather than being treated like an ATM.”
The other things include a half billion dollar cut to higher education, which is supposed to “eliminate administrative bloat,” but that could mean the General Assembly would have to take over their spending line by line to enforce something like that.
Higher ed would also be saddled with $450 million in additional pension costs and school districts would be whacked with almost a billion dollars in higher pension costs.
Next on the proposal is a revised state pension plan. The Illinois Policy Institute says the state could save $1.65 billion next year by offering some self-managed 401K accounts instead.
The plan would also streamline Medicaid spending and reform higher education.
Also, they have a big university right down the road from that station and yet they refer to a billion dollars in cuts and added costs a year as “reform.” Maybe check a dictionary.
“Raising taxes will not fix Illinois. We must reform the way Illinois does business,” Illinois Policy Institute CEO John Tillman said. “We must reform the way it actually spends the taxpayers’ money. We must slow the growth of spending to a rate below the growth in revenues. It is that simple. Spending must rise more slowly than revenues. That is the only solution.”
Agreed, but a lot of this plan isn’t about slowing state government growth, it’s about taking state money away from local governments, schools and universities and plowing it back into state coffers.
Meanwhile, the Illinois Policy Institute, a free-market think tank, released its own budget proposal on Tuesday — a plan that would impose no new taxes. It would alleviate the budget crisis by encouraging state workers to transition to cheaper pension plans; ease collective bargaining restrictions placed on local governments while reducing the revenue they get from the state; cut Medicaid rolls by limiting eligibility to only the most disadvantaged; and provide local property tax relief with a five-year freeze.
Some of the institute’s ideas have seen bipartisan support at the Capitol. But with a Republican governor and a Democrat-controlled legislature, policy differences create a frustrating divide between what is needed and what is doable.
The “Institute” couldn’t have written that editorial better themselves. The Trib makes a radical proposal look so… mild.
But, hey, look on the bright side. Two years in and they’re finally conceding that “doable” is a real life concept. Back in 2015, you may recall, the ivory tower sneered at folks like Jim Edgar who had the audacity to suggest that the governor ought to try cutting a doable deal. The Mother Ship also referred to those who wanted to work out a compromise as the “Surrender Illinois Caucus.”
* Anyway, it would be interesting to see this proposal put into bill form. Let’s hear from the mayors, the university presidents, the school superintendents and the nursing home residents who rely on Medicaid, among others. And then let’s hear the sponsors and proponents defend it during committee hearings and floor debate. That’s what democracy looks like, not a press conference with a couple of legislators and a snazzy packet.
Much of Caterpillar’s relocation rationale revolves around better international transportation options in Chicago. That’s a bit of a red herring. It can take as long to drive from, say, Naperville to O’Hare International Airport as it can to fly there from Peoria. And Caterpillar can and has use private aircraft to fly from Peoria to anywhere on earth.
Perhaps Caterpillar’s seventh floor is leaving Peoria for a more simple, personal reason, at least in part: [Cat CEO Jim Umpleby] and other executives want to live somewhere else.
Granted, we are speculating. But after talks with plenty of well-connected people the past few days, we believe this theory deserves at least some consideration.
Umpleby is a Caterpillar veteran, with more than 30 years of service. But it appears little of that time has been spent at a Peoria base.
The Chicago-area native worked for Caterpillar all over the country and world, including Malaysia, San Diego and Singapore. How you gonna keep them down on the farm after they’ve seen Kuala Lumpur?
Such personal-preference moves might not be unprecedented. In 2015, ConAgra Foods announced it was moving its world headquarters from Omaha, Neb., to Chicago. The new ConAgra CEO was residing in the Chicago suburbs.
Some commenters here made many of those same points yesterday.
