* At first, a resolution sponsored by Rep. Linda Chapa LaVia seemed fairly straight forward. The Illinois Press Association and the Illinois Broadcasters Association asked the legislator to sponsor the measure to get some oversight hearings of the Illinois High School Association. From a press release…
“Citizens throughout Illinois have been calling for more transparency in government. With the General Assembly once again facing difficult budget decisions, its reasonable for the taxpayers of this state to know how the IHSA is spending the funds it is bringing in. I applaud the Illinois Press Association for bringing this to my attention,” [said Rep. Chapa LaVia].
Dennis DeRossett, executive director of the Illinois Press Association, said the following — “We thank Representative Chapa LaVia for introducing this resolution. The IHSA is presently subject to almost no accountability or oversight; they claim to be exempt from both the Freedom of Information Act and Open Meetings Act, and they argue that they alone should control any revenue that is ultimately derived from taxpayer-funded sporting events.”
He said the IHSA is clearly profiting directly off of public, taxpayer-funded events.
“It should be public knowledge how much revenue is being generated by these events and other exclusive arrangements, along with what percentage or amount of that revenue is being remitted back to local school districts,” DeRossett said. […]
“Kudos to LaVia,” echoed Dennis Lyle, President and CEO of the Illinois Broadcasters Association. “There exists today just too much confusion with both the public and those businesses associated with high school sports with respect to the IHSA’s role and limitations when it comes to high school athletics. The taxpayers of Illinois are the rightful owners of public high school athletics, just as they are of the gymnasiums and athletic fields where high school sports are played. LaVia’s resolution simply sets the stage for seeking clarity to the blurred lines that clearly exist today in regards to the IHSA and high school athletics.”
Rep. Chapa LaVia could’ve just held hearings on her own. She didn’t need a resolution. But this was obviously meant as a shot across the IHSA’s bow by the media groups, which have battled bitterly with the IHSA in the past.
* The IHSA zealously guards its turf, and they took full advantage of a line in the resolution that recommended that the House committee look at the feasibility of “statutorily transferring the duties and functions of the IHSA to the Illinois State Board of Education.” From Shaw Media…
[IHSA Executive Director Marty Hickman] said in a radio interview with WRMJ in Aledo that Chapa LaVia’s proposal amounts to a state takeover. In a phone interview with Shaw Media on Friday afternoon, Hickman said the IHSA felt blindsided by the legislator’s efforts.
“We feel like we’re a very responsible organization,” Hickman said. “We pay our bills, we fund our pension, we balanced our budget and I would be happy to put our record of fiscal responsibility up against anyone – including the state of Illinois.
“If it’s that kind of conduct that warrants the government coming in and targeting you, then we are really in a bad way.”
* The proposal was even bashed as a money grab by Illinois Watchdog…
The Illinois Legislature certainly does not want to administer the state’s high school chess tournament, but lawmakers wouldn’t mind getting a piece of the millions of dollars high school basketball and high school football bring in each year.
* Rep. Chapa LaVia had to push back…
The potential hearings have raised concerns from the IHSA, which was warning people in recent weeks the state was trying to take over its operations and place control with the Illinois State Board of Education. Chapa LaVia, though, said that’s not her plan.
“My intention is not to move the IHSA under ISBE,” she said. “My intention is to bring them forward to answer questions.” […]
Chapa LaVia said when she tried to talk with the IHSA directly, its leaders “thought they could give me their records right there and keep it at that in a closed-door meeting. That’s not what we do around here.”
* And…
The group overseeing high school sports and extracurricular activities in Illinois will answer questions about its finances, despite its protests, which, ironically, have helped place it in front of a legislative committee.
“(It’s) suspicious,” state Rep. Linda Chapa LaVia, D-Aurora, said Monday. “Why would anybody be afraid of a House resolution and hearings? If they don’t want to come, it’s kind of interesting.”
* She backed all the way off yesterday during floor debate…
State Rep. Linda Chapa LaVia, D-Aurora, told colleagues Monday she was no longer trying to determine whether the Illinois State Board of Education should assume the duties now governed by the Bloomington-based IHSA.
“My intention is not to take them and put them under ISBE,” Chapa LaVia said. “That’s not my intention.”
* She also went on the attack…
She listed several instances where she contended the IHSA hadn’t acted properly and ought to explain itself.
She cited the 2013 controversy in which organizers of an IHSA-sanctioned Scholastic Bowl used plagiarized questions, and then the official who discovered they were plagiarized was fired.
Chapa LaVia also brought up how the IHSA had violated the rights of disabled athletes by preventing them from participating in sporting functions, which brought a lawsuit from Attorney General Lisa Madigan.
A ton of House members had excused absences yesterday, so the resolution only received 55 “Yes” votes. But 51 voted against it, and resolutions can pass with simple majorities of those voting.
So, on to the hearings. Ought to be great fun.
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Question of the day
Tuesday, Apr 8, 2014 - Posted by Rich Miller
* Sneed…
Mayor Rahm Emanuel, a heat-seeking missile, just got bazooka’d by Gov. Pat Quinn’s populist popgun.
◆ Translation: The pile driver just got poked.
◆ To wit: Rahm may be a tough cookie, but he got bitten in the butt by Quinn’s refusal Monday to back Rahm’s plan to solve the city’s pension crisis on the back of Chicago’s property tax payers.
◆ Upshot: It forced Rahm, the tough, foul-mouthed scrapper and tough, taciturn Illinois House Speaker Mike Madigan, D-Chicago, to erase language from legislation mandating a huge Chicago property tax hike.
◆ Hmmm: It begs the question: Didn’t Rahm know how Quinn felt about the property tax hike in the first place?
◆ Wow! How is Rahm, who is a close friend of GOP gubernatorial candidate Bruce Rauner, going to heal this ow ow now?
Ironically, Quinn dissed the property tax increase while announcing a massive plan to fix Chicago’s potholes with state funds
* The Question: What do you think the next conversation between the two men will be like? No profanity, please. Yeah, I know that makes it tougher and far less believable, but I don’t wanna spend all day deleting comments. One and only warning. Thanks.
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* The Fox News Channel ran a story about former Democratic state Senator Rev. James Meeks’ support for Republican Bruce Rauner…
“The Democratic party just assume always that 97 percent of the African-American vote will go to the Democratic party. If that assumption is true, they never have to work for our vote,” Meeks said.
He speaks of the gun violence that plagues Chicago’s West and South Sides, the poverty and the appearance that there is no end in sight. “Our schools are still broken and getting worse. We’re last in employment or business. Our neighborhoods are deplorable,” says Meeks. “And we still get the same promises from the Democratic party, but we don’t get any deliverable. I think it’s time we should look at another candidate.”
Chicago political analyst Thom Serafin says few Republicans have been able to win statewide in Illinois without collecting 20 percent of the city vote. To do that, a candidate must win a significant portion of the African-American vote. Serafin believes Meeks can deliver. “He understands what it means to turn out the vote here in the city. He is well respected,” he said. […]
Rauner has already had an opportunity to speak to the faithful at Salem Baptist and Meeks is talking with other pastors about getting Rauner to speak to more African-American congregations.
“I would hope that I would get a chance to influence a lot of African-Americans to look at how we, as a voting bloc, [are] being take
The first time I had a chance to see just how influential Meeks was came during a visit to Springfield by then Mayor Daley. Hizzoner was in town for various meetings, and either before or after walking into the governor’s office, Daley made sure to have a long chat with Meeks, who was standing nearby. Speaker Madigan did the same. Other powerful folks walked up to pay tribute.
He’s lost some of his juice since then - on-again-off-again runs for governor and mayor had a lot to do with it - but he still wields a bunch of influence in the city.
Rev. Meeks has the second largest congregation of any church in the state. He has so many churchgoers that the city has required him to station ambulances outside during services. His church building is the state’s largest, with as much square footage as the United Center. He also has a big, old Catholic church that he uses for youth services. It’s quite an impressive operation.
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Wildy popular idea
Tuesday, Apr 8, 2014 - Posted by Rich Miller
* From the Paul Simon Public Policy Institute’s latest poll…
Legislative Term Limits
Would you favor or oppose a proposal to limit state legislators to a total of eight years of service, whether in the House of Representatives , the State Senate, or a combination ofthe two?
Strongly favor 61.7%
Somewhat favor 17.8%
Somewhat oppose 8.5%
Strongly oppose 8.6%
Other/Don’t know 3.4%
Leadership Term Limits
Would you favor or oppose a proposal to limit how long state legislators could serve in leadership roles – such as Speaker of the House or President of the Senate – before they stepped down to let other legislators lead?
Strongly favor 65.1%
Somewhat favor 17.6%
Somewhat oppose 8.3%
Strongly oppose 6.3%
Other/Don’t know 2.7%
* From the Institute…
In statewide Simon Polls going back to 2010, between 75 and 80 percent of Illinois voters surveyed have supported legislative term limits. Support for leadership term limits — in offices such as Speaker of the Illinois House and President of the Illinois Senate — has been just as strong.
“Regardless of your position on term limits, it’s clear the idea has support. If organizers are able to get the measure on the ballot – and it’s not clear the courts will allow that – it should be easy for them to win approval,” said David Yepsen, director of the Institute. […]
Support for term limits is strong in every demographic, geographic, and ideological subgroup in the Institute’s poll. For example, while Republicans were among the groups most likely to support the term limit proposal (89.9 percent strongly or somewhat in favor), even an overwhelming majority of Democrats approved of it (73.4 percent strongly or somewhat in favor).
In the 2014 Simon Poll, the wording of the term limit question referred to a combined eight - year limit of service in either or both houses, in order to reflect the proposal pushed by the group Term Limits and Reform, backed by Republican gubernatorial candidate Bruce Rauner. Previous versions of the question referred to limits of five terms in the Illinois House and three terms in the Illinois Senate.
“Regardless of whom you ask or how you phrase the question, legislative term limits are extraordinarily popular among the Illinois electorate,” said Charlie Leonard, a Simon Institute visiting professor who supervised the poll. “Unable or unwilling to limit their own representatives ’ terms through the ballot box, the voters seem to hope a blanket constitutional amendment will do the job for them.
* And here’s a different take on leadership term limits, which came during a committee debate over a proposed constitutional amendment…
The amendment was sponsored by Sen. Matt Murphy, R-Palatine. Sen. Don Harmon D-Oak Park, asked Murphy if he knew how many leaders, past or present, the amendment would have applied to. Of course, as an attorney, Harmon already knew the answer to his question when he asked it. That answer was only two: House Speaker Michael Madigan, D-Chicago, and former Senate President Phil Rock, D-Oak Park.
Murphy said he started toying with the term-limit idea after his first year in the Senate. That would have been 2007, a year that good ol’ Rod Blagojevich went particularly amok. He kept the legislature in session all summer before Madigan essentially told the House to go home and stay there until he called them back.
“It was my first experience with the concept of the consolidation of power in Springfield in just a few hands,” Murphy said.
Harmon had a different take.
“Without strong legislative leaders, can you imagine how awful that summer would have been that you experienced with a rogue governor and no one in the legislature to stand up and say no?” Harmon asked.
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* I don’t think I’ve ever seen anything like this before. From a press release…
Springfield, IL – Hundreds of religious leaders from around the state will march on the offices of the Illinois Policy Institute (IPI) in Springfield beginning today at noon at the Lincoln statue at the Capitol building. The group will call on the organization – funded by the wealthiest corporate special interests in America – to stop their false attacks on a Fair Tax, and to let the citizens of Illinois make the decision for themselves about a Fair Tax on the November ballot.
Documents exposed in a December news report revealed that the Illinois Policy Institute has been serving as a conduit for the national State Policy Network, a group financed by America’s wealthiest corporate interests, including billionaires David and Charles Koch. The documents revealed funding to IPI from the group as earmarked for the purpose of making a Fair Tax “politically toxic” to Illinois voters.
The Illinois Policy Institute is responsible for many false attacks on the Fair Tax, including claims it would raise taxes on low- and middle-income families—claims which have been thoroughly debunked. The truth is that a Fair Tax – implemented with a rate structure proposed by the Fair Tax Act’s chief sponsor, Sen. Don Harmon – would cut taxes for 94% of Illinois residents, including everyone making up to $205,000.
In February, more than 100 religious & faith leaders gathered in Chicago to call for a Fair Tax, with lower rates for lower incomes and higher rates for higher incomes. They believe the Fair Tax is important because it gives tax relief to vast majority of families while also preventing devastating cuts to important public priorities, which would have an especially harmful effect on Illinois’ most vulnerable citizens. Today, in addition to demanding accountability from the Illinois Policy Institute, faith leaders will be visiting their elected officials in Springfield to urge them, among other issues, to pass the Fair Tax Act before the May 4th deadline.
The march is being organized by the Community Renewal Society. Its legislative agenda is here. The group publishes Catalyst Chicago and The Chicago Reporter. Its board members include SEIU Healthcare’s Director of External Relations plus lots of ministers.
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It’s a beautiful day, so let’s talk baseball
Tuesday, Apr 8, 2014 - Posted by Rich Miller
* Wordslinger demonstrated once again today why we named our best commenter of the year award after him with this perfect gem…
As an aside, my greatest baseball memory:
When I was about 12, my buddy Wags and I were hanging one hot summer Sunday afternoon at the Dairy Queen by the Kish on Lincoln Highway in DeKalb.
We’d been fishing at the lagoon on campus and had stopped off to freeze our brains with a Mister Mistee.
While we loitered in a booth there, a couple of old gents walked in for an ice cream cone, clearly coming straight from the golf course.
One of them was a giant — tall, thin, regal, decked out in the most elegant golf duds …
…it was Joe Dimaggio.
Wags and I about plotzed.
Turned out Joe was in town to visit a friend, Sam Brody, who owned Brody Coats in Sycamore. As my very jealous brothers told me later, they’d played together in the Pacific Coast League before Joe went east to take possession of New York, baseball, and Marilyn Monroe.
Joe and Sam stood and enjoyed their cones, then Wags and I finally mustered the courage to approach them.
“Excuse me, mister, are you Joe Dimaggio?”
The giant looked down, smiled and said “yes.”
“Can we have your autograph?”
“Sure. I see your fishing poles. You boys catch anything?”
“No sir.”
“You like baseball? I used to play baseball, you know….”
Joe Dimaggio on a Sunday afternoon at the Dairy Queen in DeKalb. When you’re 12.
Can. You. Dig. It.
Your favorite baseball memory?
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*** UPDATE *** The mayor’s pension bill easily passed the House 73-41. On to the Senate.
[ *** End Of Update *** ]
* I told you this would happen yesterday…
Mayor Rahm Emanuel and House Speaker Michael Madigan Monday stripped out controversial language from city pension legislation that had authorized the City Council to impose a property-tax hike, putting the stalled measure back on the fast-track at the state Capitol. […]
Madigan, D-Chicago, filed an amendment to Senate Bill 1922 after the House adjourned Monday without taking any action on the stalled legislation. Sources now expect the legislation to be voted upon as early as Tuesday.
* More…
Unions had also opposed removing the property tax mandate from the bill, but City Hall is convinced labor leaders won’t object to Monday’s revisions because of language that gives the state the right to withhold state funding to Chicago during any year that the city fails to make its required contribution to municipal employees or Laborers pension funds
* To the bill…
Still in the bill are two provisions to penalize the city if it does not make the pension payments. The state comptroller would be allowed to divert millions of dollars in annual state payments away from the city and into the pension funds a provision that was made stronger in the most recent version.
The proposal also spells out that pension boards could sue to get the state to divert millions in city funding to the pension funds. […]
The new plan also includes a minimum cost-of-living increase of at least 1 percent every year for retired workers who are getting pensions of $22,000 or less. The bulk of retirees would get annual increases of half the rate of inflation or 3 percent, whichever is less, based on the amount of their annual pension payments upon retirement. Currently, all retirees get 3 percent, based on their previous year’s pension income. […]
The latest version also includes a new provision that would allow Emanuel to change the makeup of the two retirement boards that oversee the laborers and municipal funds. It would terminate the terms of current members next year and allow the mayor to recommend how new members of the board should be appointed.
* A labor activist who opposes the bill sent me this commentary about that last paragraph…
Here’s what that means: The supposed “funding guarantee” in this legislation is a provision that the municipal and laborers funds may go to court if the city doesn’t pay what’s required. Now, the municipal fund’s board consists of three elected members who are employees, plus the city treasurer and comptroller. But under this provision, the entire board could be political appointees of the mayor. Besides eliminating the voice of employee participants, it could give mayoral appointees total discretion to enforce the funding provision – or look the other way.
Except the state comptroller is also required to skim city grants, and the comptroller’s office says that includes Chicago’s giant pile of revenue-sharing cash from the Local Government Distributive Fund.
* And this shows how weird some folks can get around here…
To some, Quinn’s decision to draw a line in the sand on property taxes and dangle the city’s elusive quest for a Chicago casino as a replacement was part of an elaborate political dance.
Those Machiavellian theorists believe the plan for $50 million property tax hikes for each of the next five years may have been a stalking horse for a casino all along.
But the fact is, Chicago probably needs both property tax hikes and the jackpot from a land-based casino to wipe out an $32 billion unfunded pension liability that’s eight times the city’s operating revenue and, what Moody’s calls “by far the highest” of any rated U.S. local government.
That last sentence is far more in line with reality.
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So, now they’re against testing?
Tuesday, Apr 8, 2014 - Posted by Rich Miller
* As I made clear yesterday, I like choices in education and am not a big fan of the educational establishment and the educational system we have here. But now that mandatory student testing shows there’s not a whole lot of overall difference between Chicago charter schools and Chicago neighborhood schools and on the same day as a big pro-charter school rally in Springfield, the Tribune editorial board trots out a study from three years ago that shows charters are better…
Not every charter is superior to local schools. Some lag and should be shuttered. But check out a recent study by Mathematica Policy Research on the effects of charter schools in Chicago and Florida. The group found that charter high schools “appear to have substantial positive effects on students’ long-term educational attainment.” In Florida, researchers found evidence that charters may have “large positive effects” on students’ later earnings.
Bottom line: “Charter high schools seem to be endowing their students with skills that are useful for success in college and career but that are not captured by test scores.” [Emphasis added.]
*Facepalm*
This is the same Chicago Tribune that demanded more testing of students and teachers during the education reform debates a few years back. And now testing doesn’t really gauge outcomes? Who knew?
Sheesh.
* Meanwhile, Mayor Rahm Emanuel was asked yesterday about the standardized testing results…
The mayor was asked whether charters funded by CPS, but freed from regulations impacting traditional public schools shouldn’t have students performing “measurably better” on test scores.
He never answered the question.
“It’s an old debate to look at brand. The new debate is to look at high-quality education that achieves the goal of college readiness, college preparation and career readiness. That’s what I’m focused on at every level,” he said.
“[That’s] why I made sure our neighborhood schools at [the] high school [level] gave parents choice. They need to have the choice. We need to provide quality. Regardless of whether it’s military, selective enrollment, STEM, IB or charter, I want to make sure there’s quality throughout the system and parents will then have the choice of high-quality options.”
* And, while we’re at it, take a look at this story about how New York’s mayor got steamrolled by the big bucks charter school backers.
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[The following is a paid advertisement.]
In any discussion about treating mental illness, patients and their families must come first. But Senate Bill 2187 – sometimes called “RxP” – puts the interests of a small group of professionals ahead of protecting patients.
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Biss savings bill picks up momentum
Tuesday, Apr 8, 2014 - Posted by Rich Miller
* I watched the debate on Sen. Biss’ retirement savings bill in the Senate Executive Committee not long ago. The NFIB and the Republicans spoke against the proposal, despite claims by Biss that this was actually a creation of the Heritage Foundation and the Brookings Institute in 2006. It was, he says, supported by both John McCain and Barack Obama in 2008.
The Tribune looked beyond the partisan politics of the moment today and wholeheartedly endorsed the bill…
Americans have longer life spans than their ancestors dreamed possible. The private-sector pension, by contrast, flirts with extinction. Federal trustees warn that Medicare’s hospital insurance trust fund goes insolvent in a mere 12 years — followed seven years later by the main Social Security trust fund. And many among us save so little for the future that they risk a retirement diet of Meow Mix.
Sum those perils and the money math looms menacing for today’s workforce. Fitting, then, that the Illinois Senate’s sole research mathematician, Evanston Democrat Daniel Biss, proposes a clever savings plan for some 2.5 million private-sector Illinoisans whose employers don’t offer retirement plans. […]
Workers at companies with 25 or more employees but no retirement plan would be automatically enrolled, with the choice to opt out at any time. Smaller companies could join voluntarily. The workers could choose how much to invest in a selection of mutual funds managed not by the state, but by a low-cost provider (think Vanguard or T. Rowe Price). Individuals who make no choices would have 3 percent of their wages go, via payroll deduction, into diversified target-date retirement funds. Many companies that offer 401(k) plans do the same, automatically enrolling employees in default target-date funds.
Administrative costs for the investment provider and the state could total no more than 0.75 percent of invested assets. An unpaid, seven-member board including the state treasurer, comptroller and governor’s top budget officer would choose the provider and perform risk management and oversight duties. The best protection against corruption, theft or pinstripe patronage: Illinois never would touch the investments. State government instead would wave at the payroll deductions as they travel to employees’ accounts. Those accounts would be portable from job to job; workers with more than one employer would have a single account.
* The Sun-Times looked closely at the opposition…
Business groups, including the Illinois Chamber of Commerce and the National Federation of Independent Business are opposed, saying it will burden small businesses, financially and administratively, forcing employers to act as a go-between on a program many don’t want to offer. Insurance and financial advisers also are opposed, but we suspect that’s mostly because the automatic IRA would cut into their business.
The business concerns are legitimate, but given the careful design of the Illinois program, we think the burdens would be minimal. In a country that’s reliant on employer-based retirement systems, it’s inevitable that business will face burdens. The question is how much is too much? This bill does not tip the scales.
Jeffrey Brown, a University of Illinois finance professor and expert on retirement security, is one of many supporters of automatic IRAs, citing research on the power of automatic deductions in increasing participation rates. Brown tell us he likes Biss’ idea, particularly since it avoids the pitfalls of automatic IRA proposals in other states, including ill-advised attempts to guarantee a rate of return. He worries, though, that the state board, as currently envisioned, may become politicized, something we’d like the bill sponsors to address.
Brown, to whom we were referred by the bill’s opponents, the American Council of Life Insurers, said he would prefer a federal automatic IRA program, as would we. But the odds of that passing Congress aren’t good.
Opposition by the insurance industry is probably more important here than anything else. We’ve got a lot of big insurance companies in this state, so that may explain much of the GOP opposition in committee.
* SJ-R…
The slow economic recovery has contributed to the problem. More Americans have found themselves chronically unemployed or underemployed. Companies have cut back on wages and benefits, including retirement plans, for workers.
Low-wage workers aren’t just high school lifeguards or college students selling jeans at the mall on weekends. They include manufacturing workers, retail staff, salespeople, cashiers, restaurant cooks and wait staff, small-business owners and employees and more.
Dreams of a comfortable, carefree retirement are considered out of reach for many Americans. Sen. Daniel Biss, D-Evanston, calls it “a straight path to poverty in old age.”
“There is no example in America or elsewhere now in history of a system that just kind of hopes for the best and educates people and leaves 25-, 30- and 40-year-olds making the kind of decisions necessary for a dignified retirement,” he said. “I know that sounds paternalistic, but I think there is a giant wealth of overwhelming research that makes that clear. So you have to do something.”
Thoughts?
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But she’s here to teach everyone else
Monday, Apr 7, 2014 - Posted by Rich Miller
* This is a big reason why Rep. Jeanne Ives (R-Wheaton) hasn’t yet passed a single bill. From Illinois Review…
A property tax relief bill that passed the Illinois House last week remains a topic of discussion among Republicans that voted against it. State Rep. David McSweeney’s (R-Barrington) legislation places a one year restriction on the ability to levy general revenue budgets on a specific list of small townships in specific Chicago area counties. […]
Speculation is that McSweeney folded into the bill specific demands by Speaker Madigan, which were intended to blunt crticism of key Democrat lawmakers. […]
“We need tax relief that applies across the board,” Ives told Illinois Review. “Rep. McSweeney’s bill applies to the smaller population townships, and not across the state. And the bill could save affected taxpayers only $1.00 and it would be for just for one year.” […]
As the bill moved along in the process, Rep. McSweeney made changes or promises of change that eliminated more and more townships from being under the tax levy restriction. After removing the bill from the House agenda on March 6th, McSweeney withheld any activity on the bill until the day after the party primaries, when he amended the bill to exempt five other townships, including Orland, Bloom, Rich, Stickney, and Calumet in the south suburbs. […]
“Unfortunately, it was a bad bill,” Rep. Ives said. “It implemented the property tax freeze for only one year. Property tax freezes remove local control of property taxes and hand it to the state. The better way to reduce property taxes at the state level is to reduce or eliminate unfunded mandates.”
* Yeah, it was a small bill that didn’t provide more than a speck of property tax relief, but it got a big camel nose under the tent. You pass this one, then maybe other townships are forced to follow. Who knows where it could stop?
Also, publicly blasting a fellow conservative Republican for working with the majority to pass a tax relief bill is kinda goofy and bad form.
Not to mention that Ives appeared to be on several sides of the issue. It’s too narrow, my constituents who aren’t getting it will complain. It doesn’t last long enough, freezes aren’t the way to go.
Please, pick a lane.
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Question of the day II
Monday, Apr 7, 2014 - Posted by Rich Miller
* Today’s question is more of a caption contest, so let’s do a serious one now. The Daily Herald has a story on the Northeastern Illinois Public Transit Task Force report from last week…
“Hiring based on political considerations is corrosive to good government,” the task force stated.
The report also focused on the RTA, refuting advice from Chairman John Gates to give the agency greater authority over the CTA, Metra and Pace.
Task force members pointed out hiring Madigan’s son-in-law Jordan Matyas in 2011 as an RTA lobbyist and later chief of staff at a time when there was talk in Springfield of abolishing the agency.
“We cannot credibly vouch … that the answer to decades of patronage that involved dozens of officials from both parties is to place (Metra) under the more rigorous oversight of an agency who chose to select the speaker’s son-in-law as chief lobbyist,” the task force concluded.
Ouch.
Former US Attorney Patrick Fitzgerald was the task force’s ethics chairman. Fitzgerald has never been a big MJM fan, to say the least.
* Gates responded…
Asked about the harsh task force language concerning the RTA, Gates said, “It was a really cheap shot.”
He insisted Matyas was selected months after a bill was defeated that would have given the governor appointing authority over the RTA chair.
Matyas “came in through the front door,” was one of at least two candidates he interviewed and “ has done a terrific job,” Gates told reporters after an address to the City Club of Chicago.
* The Question: “Hiring based on political considerations is corrosive to good government.” Agree or disagree? Take the poll and then explain your answer in comments, please.
survey tool
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Fun with numbers and facts
Monday, Apr 7, 2014 - Posted by Rich Miller
* “State’s big payout from video gaming still less than predicted” was a recent Sun-Times headline.
Well, yeah, there’s a reason for that. Chicago hasn’t opted into video gaming. Otherwise, the machines are doing pretty well…
State officials predicted each machine would net between $70 and $90 in revenue every day. The average so far is $94, records show.
By the way, Gov. Quinn said today that he thinks “we’re moving the right direction” on some gaming reforms he’s demanding before Chicago can have a casino.
* And speaking of Gov. Quinn…
[Gov. Pat Quinn] was asked about his opponent Bruce Rauner’s contention that Indiana is thriving as a state, more so than Illinois.
“I don’t think anyone can compare to Illinois when it comes to investing in roads,” Quinn said. “We are the best. I think our businesses understand that in order to do business in the world economy you’ve got to have good transportation.”
Then Quinn slammed Illinois’ neighbor for how it dealt with brutal weather conditions over the past winter.
“With respect to Indiana, I saw that I-65 was closed down for a couple of days during the severe winter,” Quinn said. “We don’t close down roads in Illinois.”
* Umm. From a January 6, 2014 IDOT press release…
Dangerous Weather Force Road Closures Statewide; Motorists Still Urged to Stay Off Roads in Some Areas
Black Ice a Major Concern Due to Freezing Cold Temperatures
CHICAGO – The Illinois Department of Transportation (IDOT) announced today that motorists should be mindful of dangerous road conditions and black ice on roadways in areas throughout Illinois. Motorists are also encouraged to stay home and avoid travel until roads are safe. For those who have to travel, check www.gettingaroundillinois.com for the latest road closures and road conditions. Currently, dozens of Illinois roads statewide are closed due to snow and ice. [Emphasis added.]
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The Vallas front
Monday, Apr 7, 2014 - Posted by Rich Miller
* The Sun-Times reports that Gov. Pat Quinn’s running mate Paul Vallas thinks Republican Bruce Rauner’s term limits proposal will survive challengers and make it onto the ballot…
The former Chicago Public Schools CEO also said the proposed term-limit referendum has a good chance of landing on the November ballot, and of being approved by voters.
That’s how he said he would place his bet — if he were a betting person.
“I’m not a betting person, unfortunately,” Vallas said.
* Vallas also said he was against House Speaker Michael Madigan’s idea to make local school districts start paying for teacher pensions…
“I don’t support that at all,” said Vallas, former Chicago Public Schools CEO.
Chicago schools already pay the employers’ share of teachers’ pension costs, but suburban and downstate schools don’t. Making the change has been pushed hard by House Speaker Michael Madigan but hasn’t found traction in Springfield as suburban and downstate Republicans in particular have feared loading more costs onto already cash-strapped school districts.
“For every rich district that can afford it, there’s a poor district that can’t,” Vallas said.
* In other news…
Paul Vallas, Gov. Pat Quinn’s running mate has been hired by DSI Civic Financial Restructuring firm, whose president and CEO, Bill Brandt, donated $100,000 to the Quinn campaign last Dec. 31—a move that may well trigger some political ripples in the heated governors race.
Brandt, who is also chairman of the Illinois Finance Authority, a non-paid position, told me Vallas would not be working on any Illinois deals and will be a salaried employee. With Brandt on the IFA, the firm had not been “seeking” or “working on” Illinois business. […]
In a release, DSI, based in Chicago with offices in other cities, said Vallas “brings a solid grasp of state and municipal issues that complement the senior management team” of DSI.
DSI said in its release its built a wall around Vallas to avoid conflicts and his “practice will adhere to the firm’s present policy of only working on out-of-state projects. These protocols preclude DSI Civic from seeking or working on distressed municipal matters, or with troubled governmental units, within the state of Illinois, and have long been in place due to Mr. Brandt’s position as Chairman of the Illinois Finance Authority, as well as John Filan’s former role of COO of the State. “
Since they’re not getting state business anyway, it’s probably no big deal, other than it sure looks like another business as usual hire.
…Adding… Rauner campaign’s response…
“Paul Vallas just helped Pat Quinn complete the transformation from self-styled reformer to another back-scratching Illinois politician in record time,” Rauner spokesman Mike Schrimpf told Early & Often. “Over the last five years, Pat Quinn has given special deals and appointments to Brandt and Filan. Now, they’re returning the favor in a Blagojevich-style move.”
* So, if you’re keeping score, that’s one comment in favor of Bruce Rauner, one comment opposing Speaker Madigan and a sweet insider job.
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* Despite some media attempts to blame the stall of Rahm Emanuel’s pension proposal on mysterious behind the scenes maneuvering, sometimes a cigar is just a cigar, especially when it involves a property tax hike…
Gov. Pat Quinn on Monday made clear he’s not on board with Mayor Rahm Emanuel’s proposal to hike property taxes as a way to solve a looming pension crisis in the City of Chicago.
In a news conference today on the Near West Side, Quinn repeatedly referred to Emanuel’s plan as only a “sketch” but said he would not back a plan that relied heavily on property tax hikes.
“What I saw last week wasn’t a plan, it was a sketch,” Quinn said. “It was a sketch that would relegate property owners in Chicago, families and businesses to a future of higher and higher property taxes. I don’t think that’s a good way to go.”
“They’ve got to come up with a much better, comprehensive approach to deal with this issue,” Quinn continued. “But if they think they’re just going to gouge property tax payers, no can do. We’re not gonna go that way.”
I’m told we can expect another amendment soon, perhaps today, that will strip out the property tax language. Nothing has surfaced yet as I write this, however.
…Adding… They mayor tries to dodge responsibility for the language…
“We finally have a model that brings both reform and revenue together,” Emanuel said at an unrelated news conference when asked whether state lawmakers can be spared having to vote on a version with the property tax language in it. “It was never anyone’s intention to have Springfield deal with that. That’s our responsibility. But I do believe, to actually give the 61,000 workers and retirees the certainty they deserve, you need reform and revenue. And we’ll deal with our responsibility.”
“We will work through the issues,” he said when asked again whether he’s willing to take the tax language out of the state bill.
* Meanwhile…
A leading credit rating agency has called legislation to overhaul to Chicago’s pension funds a “positive development” but says it won’t solve all the city’s problems.
The analysis by Moody’s Investor Service was released Monday. It says the proposal is “modestly credit positive” because it tackles the city’s massive and growing underfunded pension liabilities.
* But…
…Moody’s continues, the proposal calls for hitting a funding target of 90 percent in the city’s municipal and laborers’ retirement system in 40 years, not the normal 30 years that actuaries recommend. Because of that and other factors, unfunded liability in the two pension funds, which Moody’s sets at $13.8 billion in 2012, would resume rising after a brief dip. While the unfunded liability eventually would drop if plan assumptions are met, “if annual investment returns fall short of the assumed 7.5 percent, the risk of plan insolvency may well reappear.”
Moreover, Moody’s adds in what definitely is a gray-Monday report, “the proposal does not address” a shortfall in police and fire funds for which the city faces a $600 million increase in contributions next year under current state law.
Despite all those sour words, Moody’s, which rates city debt Baa1 with a negative outlook, just a couple of levels above junk, terms Mr. Emanuel’s proposal “modestly credit positive.” But Moody’s says that “even with reform, pensions will continue to weigh heavily on Chicago’s credit quality.”
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Question of the day
Monday, Apr 7, 2014 - Posted by Rich Miller
* As I told you last week, our famed commenter Oswego Willy was at the Cubs home opener. He sent along a photo posing with Tom Ricketts himself…
Yep. That’s exactly what OW looks like.
* The Question: Caption?
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The bureaucratic mindset
Monday, Apr 7, 2014 - Posted by Rich Miller
* The Sun-Times and the Medill Data Project compared charter schools in Chicago to Chicago neighborhood schools…
◆ On the math portion of the Illinois Standards Achievement Test, 7.3 percent of CPS neighborhood school students exceeded standards, while 5.3 percent of kids at the privately run schools did so.
◆ Among charter or contract elementary students, 7.9 percent exceeded standards on the ISAT for reading, compared with 9.8 percent of students at neighborhood schools. The ISAT in math and reading is given to third- through eighth-graders.
◆ Neighborhood and privately run high schools both saw just 1.6 percent of their students exceeding standards for reading on the Prairie State Achievement Examination, which is given to high school juniors.
◆ Charters and contract schools edged out neighborhood high schools — 1.3 percent to 0.7 percent — when it came to exceeding standards on the math portion of the PSAE last year.
Obviously, there’s very little difference here, which will cause some to scream “Then why do we need charter schools at all?”
I make no apologies for disliking the industrial education model. I prefer choice. I think people ought to have choices.
And, like with neighborhood schools, not all charter schools are meh. Some are quite good. Sometimes, experiments fail. We shouldn’t be afraid to experiment. What’s needed is an overall improvement in all schools.
* But not like this…
“Our top priority is ensuring our students graduate 100 percent college-ready and 100 percent college-bound,” [Barbara Byrd-Bennett, Mayor Emanuel’s schools chief executive] said.
First of all, that’s just not true or else lots, lots more would be done to improve the schools. Secondly, this over-emphasis on taking tests (with the resultant uproar over what are likely quite meaningless results) and driving kids to attend college is philosophically wrong-headed, whether in Chicago or the suburbs or Downstate.
* Don’t get me wrong here. I do not think kids should be discouraged from attending college, but why saddle a student with tens of thousands of dollars of debt just for the sake of having a so-so degree from a so-so university?
Why not foster the development of more high schools, charter or otherwise, that focus on tech/trade careers? Do you know how much operating engineers make?
* When a system’s entire focus is “100 percent college-bound” you’re not giving students nearly enough choices. Period.
Chicago has dropped its “zero tolerance” rules for those who cause a bit of trouble at schools. They realized that treating everybody and every incident the same was doing more harm than good. Schools do this all or nothing stuff way too much, and it always, always backfires.
Teach them to be good citizens. Teach them how to comprehend language and to do math. But give them choices in how to get there.
/rant
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A tough nut to crack
Monday, Apr 7, 2014 - Posted by Rich Miller
* From a press release by the Pension Fairness for Illinois Communities Coalition, which is a group of mayors demanding pension benefit reductions for police and firefighters…
According to a 2013 study by the bipartisan Commission of Government Forecasting and Accountability (COGFA), unfunded liabilities for police and fire pension funds statewide have “skyrocketed eight-fold” since 1991, growing from $953 million to $7.58 billion by 2010. This dramatic increase has occurred despite taxpayer contributions growing nearly four-fold since 2000 ($172.1 million to $629.2 million) according to Illinois Department of Insurance data. […]
It’s not hard to see how costs add up and strain municipal budgets as years of overly generous benefit increases have also led to the instability of public safety pension funds. Those added benefits received approval but municipalities were never provided additional funding to adequately cover the increased costs.
For instance, in Illinois, police officers and firefighters can retire at age 50, and collect up to 75 percent of their earnings with a 3 percent annual compounded cost-of-living increase, for the rest of his or her life. Furthermore, surviving spouses will continue to receive 100 percent of the pension benefit for the rest of their life beyond that.
In addition, the state has a remarkable 660 individual police and fire pension boards with a total of 3,300 trustees, the most of any state. These pension boards, comprised of a majority representing public safety employees with limited professional expertise to oversee investments, provide little – if any – accountability for taxpayers, which leads to inefficiencies when it comes to managing a combined $10.7 billion in assets.
* From the SJ-R…
With a population of nearly 200,000 and a booming Hispanic population, Aurora is now the state’s second largest city. It faces a required increase of more than $1 million into the police and fire pension funds each year for the next 25 years.
The city has $220 million in unfunded debt between the two funds but also has one of the better funding levels at around 60 percent. Nonetheless, Weisner said it means they have not been able to hire new police and firefighters and have laid off some city workers.
“Without some reform there’s going to be cities that basically, I believe, will be going under,” he said.
* But this headline is right below that story in the SJ-R…
Springfield firefighters scramble to battle 3 fires in hour’s time
If you thought passing pension reform over the objections of AFSCME and the teachers was tough, you ain’t seen nothing until you try to defeat the firefighters. They are well organized and hugely popular with the public.
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Is she really a Democrat?
Monday, Apr 7, 2014 - Posted by Rich Miller
* Rick Pearson at the Tribune takes a look at the claim made by Bruce Rauner’s wife Diana that she’s a Democrat…
Since 1995, 77 percent of the more than $500,000 she’s given has gone to Republican candidates and causes, federal and state records show. […]
But state campaign finance records show that since 2009, when Bruce Rauner first contemplated and then rejected making a 2010 bid for governor, Diana Rauner made $238,150 in political donations, with 91 percent going to GOP candidates or conservative groups.
Among federal donations during that time frame, Diana Rauner gave $158,800 to candidates and committees, with 98 percent to Republicans. Several of the donations occurred when Bruce Rauner gave similar-size contributions to the same candidates.
* The Rauner campaign’s response…
spokesman Mike Schrimpf said Diana Rauner “voted Democrat throughout the last decade and every time for Barack Obama” on the statewide ballot.
“If that doesn’t make you a Democrat, I don’t know what does,” Schrimpf said in a statement.
Except she didn’t vote in the 2012 primary, when Obama ran for reelection and she contributed to three GOP presidential candidates, including Mitt Romney. She also didn’t vote in the 2010 primary, the last time Gov. Pat Quinn faced voters.
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* Senate Bill 3411 was introduced in mid February. From its synopsis…
Provides that a county or municipality may not require a law enforcement officer to issue a specific number of citations or warnings within a designated period of time. Provides that a county or municipality may not, for purposes of evaluating a law enforcement officer’s job performance, compare the number of citations or warnings issued by the law enforcement officer to the number of citations or warnings issued by any other law enforcement officer who has similar job duties.
* The bill has eleven bipartisan co-sponsors (including Sen. Kirk Dillard), but the Illinois Association of Chiefs of Police pushed back hard…
The Illinois Association of Chiefs of Police is concerned about the negative impact on public safety that is likely to result if Illinois Senate Bill 3411 (SB 3411) is passed. While law enforcement executives strongly agree with eliminating the imposition of arbitrary traffic ticket quotas, the bill would also eliminate vital data-driven performance measures used to assist in the performance appraisal of police officers. Under the provisions of this bill, Illinois would stand to lose millions of dollars in federal highway traffic safety funding for DUI saturation patrols, restraint enforcement details and speed reduction campaigns.
If the bill passes, for example, an officer who refuses to make DUI arrests or who doesn’t write a ticket to a motorist for passing a stopped school bus could not be disciplined or have it documented in their performance evaluation. SB 3411 would intrude on the management rights of local law enforcement executives to decide what is in their communities’ best interests. Police Chiefs would lose their means to properly supervise officers using objective data that demonstrates that officers are meeting the expectations set by our communities.
* So an amendment was filed. The amendment expands the idea to the Illinois State Police and the state Conservation Police and adds this language which appears to address at least some of the chiefs’ complaints…
This [ticket quota] prohibition shall not affect the conditions of any federal or State grants or funds awarded to the municipality and used to fund traffic enforcement programs. […]
Nothing in this Section shall prohibit a municipality from evaluating a police officer based on the police officer’s points of contact.
For the purposes of this Section, “points of contact” means any quantifiable contact made in the furtherance of the police officer’s duties including, but not limited to, the number of traffic stops completed, arrests, written warnings, and crime prevention measures. Points of contact shall not include either the issuance of citations or the number of citations issued by a police officer.
Thoughts?
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Driving turnout
Monday, Apr 7, 2014 - Posted by Rich Miller
* My weekly syndicated newspaper column…
Worries about low Democratic turnout in an off-year election for an unpopular governor and Republican gubernatorial candidate Bruce Rauner’s millions in campaign spending are obviously driving driving much of Illinois House Speaker Michael Madigan’s personal legislative agenda this year.
“If you’re an African-American on the South Side, what motivates you to vote for Pat Quinn when you wake up election morning?” was the blunt assessment of one longtime Madigan associate last week.
For example, Madigan signaled last week that despite his past reluctance to raise the minimum wage and longtime alliance with the Illinois Retail Merchants Association (which is leading the charge against it), he’s not opposed. Calling the idea a matter of “fairness” and “equity,” Madigan told reporters last week “I think you’ll find the opposition to raising the minimum wage comes from people that have done pretty well in America, and for some strange reason they don’t want others in America to participate in prosperity.”
Asked if he was referring to Rauner, Madigan asked “Who?”
Rauner claims to support an increase in the state’s minimum wage if it’s tied to business reforms, but Rauner previously “adamantly” opposed raising the wage and even once said he’d favor cutting it by a dollar an hour, to match the national minimum.
Madigan made his comments shortly after the House Judiciary Committee unanimously approved Madigan’s constitutional amendment to bar anyone being denied the right to register to vote and to vote based on race, gender, sexual orientation, income, national origin or religion.
Several Republican states have attempted to suppress Democratic turnout by requiring voters to produce a government ID before casting their ballots. “According to the Brennan Center,” Madigan told the committee last week, “approximately 25 percent of eligible African-Americans and 16 percent of Hispanics don’t have photo IDs.” That’s probably the first time that the Speaker has ever publicly referenced the liberal group.
Madigan’s proposal passed unanimously, despite some misgivings by Republicans. One GOP member of the committee, Rep. Dwight Kay, is actually sponsoring legislation to require voter identification this year, but he did not oppose Madigan’s measure.
And the Speaker’s proposed constitutional amendment to place a three percent surcharge on income over $1 million retroactive to this past January 1st was moved forward on the House floor last week. No Republicans have yet to emerge as supporters, so Madigan will likely need all 71 of his members to pass the proposal, which requires a three-fifths super majority.
According to numerous sources, Madigan’s leftward lurch toward Gov. Quinn took Rauner and his GOP campaign by surprise. They believed that Rauner’s personal relationship with the Speaker over the past few years would help salve the wounds and that the old school politician Madigan would understand the necessities of politics. Instead, Madigan apparently took great offense at the constant attacks (at one point, Rauner vowed to “go after” Madigan’s friends and allies to get at the Speaker), and the overwhelmingly negative reaction among trade unions to Rauner’s harsh anti-union rhetoric has only fueled the Speaker’s resolve.
Madigan has long been known as a politician who prizes pragmatism above ideology, but he’s been about as loyal an ally to the trade unions as anyone in Illinois history. Even that’s not solely about ideology, however. Those unions provide a lot of money and foot soldiers to Madigan’s organization.
Rauner also apparently didn’t use a back door channel to Madigan during the primary, which meant there was little to no ongoing communication between the men. Things obviously got out of control.
Madigan’s moves have definitely not gone unnoticed by Rauner. Behind the scenes, some are saying that Rauner will counter this by contributing big bucks to House Republican coffers.
That doesn’t seem to concern the Madigan folks. The Democratic legislative district map is pretty darned solid (as I reported in a recent Crain’s Chicago Business column, in 2012, House Democratic candidates received 53 percent of all the votes cast in all House races statewide, yet they won 60 percent of the House races), and they’ve been successfully fending off the House Republicans for years.
But Madigan’s poll numbers aren’t good at all, to put it mildly, so there are plenty of other weapons in Rauner’s arsenal. This could very well escalate into an all-out war. And Rauner has the bucks to do it.
Discuss.
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Reader comments closed for the weekend
Friday, Apr 4, 2014 - Posted by Rich Miller
* I bumped into Rep. Chad Hays last night and he told me about a new music festival that’ll be held this September 11-14 near Danville at the 3,000 acre Kennekuk County Park.
The promoters of the Phases of the Moon Festival are spending seriously big bucks to bring in Bob Weir and Rat Dog, Widespread Panic, Tedeschi Trucks Band, Leon Russell, Gov’t. Mule, the Chris Robinson Brotherhood and many, many, many more. And this list is just the first round of announcements. I’m told even more announcements are on the way.
I’m so there. Peoria has a similar event, but it’s always during session, so I can’t go. This one is not to be missed.
* Tedeschi Trucks will play us out…
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Julie Brady
Friday, Apr 4, 2014 - Posted by Rich Miller
* I didn’t know her, but everyone who did said she was a fantastic woman and a great mother. My deepest condolences to the family…
In a sad note amid this political season, I have to report the death of Julie Brady, wife of former Illinois GOP Chairman Pat Brady.
Ms. Brady, the former Julie Blink, was 51, and died after a lengthy illness. A graduate of the University of Wisconsin Law School, she met her husband while both were working for the U.S. Department of Justice.
“She was an honors graduate,” Mr. Brady told me today in a brief phone conversation. “She was honors in everything.”
Ms. Brady’s illness began before and continued through the flap over Mr. Brady’s decision to publicly endorse legal marriage in Illinois — a decision that eventually resulted in his ouster as chairman.
Visitation and services will be Monday at St. Patrick’s Parish, 115 N. Fourth St., St Charles. Survivors include four children.
Word of her death emerged in a note from Mr. Brady’s successor as chairman, Jack Dorgan. GOP gubernatorial nominee Bruce Rauner released a statement terming Ms. Brady “a remarkable woman who cared passionately about Illinois and our children.”
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* From a Pat Quinn budget office press release…
Two bond rating agencies have released their reviews of Illinois’ finances ahead of next week’s scheduled sale of $250 million in General Obligation bonds that will finance roads, bridges and schools around the state.
While they say the state still has much work to do, they note the hard work the state government has done to cut costs, pay down old bills, and pass a comprehensive pension reform plan.
“We are pleased that the bond rating agencies recognize the difficult work the Governor and the General Assembly have done to cut spending, pay down the bills and pass comprehensive pension reform,” Acting Budget Director Jerry Stermer said. “It’s clear the rating agencies agree the Governor’s proposed budget would bring long-term fiscal stability to Illinois.”
* Not everything the raters had to say was positive, but considering how New York has trashed us in the past, I suppose beggars can’t be choosers. From Fitch…
KEY RATING DRIVERS
BUDGET TEMPORARILY STABILIZED WITH TAX INCREASE: Temporary increases in both the personal and corporate income tax rates, coupled with statutory spending limits, have closed a significant portion of the structural gap in the state’s budget through the current fiscal year 2014.
NEED FOR LONG-TERM SOLUTION REMAINS: Due to the temporary nature of the enacted tax increases, the state will need to find a more permanent solution to the mismatch between spending and revenues. The Negative Outlook reflects the critical need to address this issue. The governor’s recommended budget for the coming fiscal year would make these tax increases permanent and provide a basis for the state to achieve fiscal balance.
LARGE BALANCE OF DEFERRED PAYMENTS REMAINS: The state has a large general fund accounts payable backlog, which although reduced still totaled $4.2 billion at the end of fiscal year 2013. The state prudently used higher than forecast income tax collections in fiscal 2013 to pay down a portion of the accounts payable balance.
LONG TERM LIABILITIES HIGH: The state’s debt burden is above average and rose during the recession with issuance for operational purposes. Continued borrowing is expected under the $31 billion capital plan. Further, unfunded pension liabilities are exceptionally high and are expected to remain so, even if pension reform survives legal challenge.
ACTION ON PENSIONS: Passage of pension reform legislation was a positive indication of the state’s willingness to take action on this complicated issue after many failed attempts. Legal protection of pension benefits is particularly strong in Illinois and, as expected, legal challenge to the reform has been filed.
ECONOMY STRONG BUT RECOVERY SLOW: The state benefits from a large, diverse economy centered on the Chicago metropolitan area, which is the nation’s third largest and is a nationally important business and transportation center.
RATING SENSITIVITIES
Maintenance of the ‘A-’ rating will require timely action in advance of the expiration of temporary tax increases in fiscal 2015. Deterioration in the state’s financial position, as evidenced by excessive use of non-recurring revenues or additional payment deferrals, would likely lead to a downgrade. In addition, stabilization of the rating will reflect the extent to which pension reform enhances the funding levels of the pension systems and controls the growing impact of pension payments on the budget.
* From Moody’s…
SUMMARY RATING RATIONALE
The rating is supported by the state’s general obligation (GO) pledge. Despite substantial pension reforms adopted in December, Illinois remains the lowest-rated US state, at A3 with a negative outlook. Reform enactment launched the legal process that will determine whether constitutional protections prevent the state (and local units) from lowering liabilities through plan changes that affect existing pension participants. Courts may invalidate the reform package altogether, or block pieces of it. If allowed, the reforms could put Illinois on track to manageable long-term pension funding, although the retiree benefits burden will still be heavy compared with many other states. Also pressuring Illinois’ finances is a history of operating deficits, negative GAAP-basis fund balances and payment deferrals. As offsets to its challenges, Illinois has a large and diverse economy, with above-average wealth, and its powers over revenue and spending are strong. State law gives the highest priority to the payment of general obligation debt service. […]
OUTLOOK
Illinois’ negative outlook reflects our expectation that the state’s financial position could deteriorate further if the state’s 2011 tax rate increases are allowed to expire without offsetting steps next year. Pension reforms passed in December could improve the state’s credit standing, by reducing accrued liabilities, but they may be rejected after legal challenges from employees and retirees.
WHAT COULD MAKE THE RATING GO UP
–Implementation of a credible, comprehensive long-term pension funding plan, after favorable court ruling
–Substantial progress in reducing payment backlog, with adoption of a legal framework or plan to prevent renewed buildup of bills
–Establishment of a pattern of structurally balanced budgets
WHAT COULD MAKE THE RATING GO DOWN
–Failure to address impending revenue loss from partial sunset of 2011 tax increases
–Significant further deterioration in pension funded status
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Fun with numbers
Friday, Apr 4, 2014 - Posted by Rich Miller
* ABC 7…
Chicago’s first-quarter murder total this year hit its lowest number since 1958, police say.
The first three months of the year saw 6 fewer murders than the same time frame in 2013–a 9 percent drop–and 55 fewer murders than 2012, according to a statement from Chicago Police.
There were 90 fewer shootings and 119 fewer shooting victims, drops of 26 and 29 percent respectively, according to police statistics. Compared to the first quarter of 2012, there have been 222 fewer shootings and 292 fewer shooting victims.
* BizPac Review sucks its thumb…
So what’s changed that could possibly account for such a dramatic fall in a city that was fast becoming known for its homicide rates — especially in its notorious South Side neighborhoods?
In July, the Illinois legislature overrode Democratic Gov. Pat Quinn’s veto to make The Land of Lincoln the final state in the country to have a concealed firearm carry permit law.
This is a classic case of correlation not being causation. The first 5,000 concealed carry permits weren’t mailed until February 28th, two months into the quarter.
Not to mention the coldest winter on record kept people cooped up inside. And the indisputable fact that the Chicago police have been doing a much better job at stopping crime over the past two years.
Don’t take any credit yet, gun-lovers.
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Today’s numbers are shrinking
Friday, Apr 4, 2014 - Posted by Rich Miller
* Daniel Kay Hertz documented Chicago’s shrinking middle class since 1970 by measuring each Census tract’s median family income as a percentage of the median family income for the Chicago metropolitan region as a whole. The gray areas are defined as middle class on the map tracts. Check it out…
If the gif images aren’t advancing on your browser, click here.
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Caption contest!
Friday, Apr 4, 2014 - Posted by Rich Miller
* Oswego Willy won’t be commenting much today because he’s at opening day. He sent over a photo…
I told him to watch out for falling concrete.
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Question of the day
Friday, Apr 4, 2014 - Posted by Rich Miller
* Bruce Rauner scored just 17 percent of Sangamon County Republican primary votes last month. He has slammed Republicans who work with public employee unions as “corrupt,” which would include all three of the GOP legislators who represent Springfield, which is chock full of state employees. Sen. Kirk Dillard, who was backed by those unions, won the county with a whopping 62 percent of the vote.
But Rauner will soon travel to the belly of the beast, so to speak…
GOP gubernatorial nominee Bruce Rauner will speak at a Sangamon County Republican Foundation event in Springfield on April 8.
Rosemarie Long, who chairs the county Republican Party, said the first-ever recognition evening for major supporters of the foundation will be at the Sangamo Club. Drinda O’Connor is treasurer of the foundation, which provides support to local Republican efforts.
Bill Cellini was the foundation’s former chairman, and stepped down as its treasurer in 2012.
* The Question: What will Bruce Rauner say to Sangamon County Republicans? Snark is heavily encouraged, of course. Have fun.
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* Senate Republicans were really upset yesterday…
Gov. Pat Quinn engaged in a “sneaky abuse of power” when he sidestepped the Illinois Senate in an attempt to keep two controversial appointees on the job, Republicans said Thursday.
A week after the Democrat from Chicago used an unprecedented parliamentary maneuver to extend the tenures of two agency heads, GOP senators called on the Attorney General’s office to weigh in on the move and filed legislation designed to close a loophole in the Senate rules that govern gubernatorial appointees.
“This is really a slap in the face to the Senate,” said state Sen. Michael Connelly, R-Lisle.
* But this is what Gov. Quinn said yesterday…
“Well, the Senate President asked for more time and we were happy to give it to him.”
Audio…
It can’t possibly be a “slap in the face to the Senate” by the governor if the Senate President is the one who asked Quinn to do it. Pretty much every story written on this topic has made it appear as though Quinn did an end-run around Cullerton, when in fact, as subscribers already know, this was a negotiated deal.
* However, there is a good argument here…
State Sen. Tim Bivins’ amendment would prevent an extension of the 60 session days of consideration the Senate has by law to confirm appointments made by the governor. Senate Republicans are also sponsoring a modification of the Senate rules, and have asked Illinois Attorney General Lisa Madigan to issue an opinion on the current law.
“This flies in the face of the constitution and its intent,” Bivins, of Dixon, said of Quinn’s actions. He noted that under the constitution, “the potential exists to make all appointments in this manner.” […]
The governor’s withdrawing the names of Hamos and Flores from consideration by the Senate and then moving to re-nominate them allows the time clock on the appointment process to restart, giving supporters of the an extra 60 [session] days to secure votes in their favor.
A governor could conceivably do this forever to get around the “advice and consent” clause of the Constitution. That’s a problem.
* However, the Illinois Constitution is weighted heavily in favor of the governor…
The Governor shall nominate and, by and with the advice and consent of the Senate, a majority of the members elected concurring by record vote, shall appoint all officers whose election or appointment is not otherwise provided for.
Any nomination not acted upon by the Senate within 60 session days after the receipt thereof shall be deemed to have received the advice and consent of the Senate.
The General Assembly shall have no power to elect or appoint officers of the Executive Branch.
Unlike the federal branch, our state Constitution deems appointees confirmed if there is no Senate action. If the Senate chooses not to act, you can’t really compel it to do something here.
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Today’s quote
Friday, Apr 4, 2014 - Posted by Rich Miller
* Dispatch-Argus reporter Eric Timmons interviewed Paul Schimpf, the Republican candidate for Illinois attorney general…
Mr. Schimpf faces tough odds in taking on incumbent Attorney General Lisa Madigan.
He called the “biggest threat” to the nation the “toxicity and venom in our politics” and promises to steer clear of mudslinging, even if that irks party officials.
“There are some consultants in the Republican Party that are saying you need to attack her (Ms. Madigan) personally and make the argument that she should be in jail,” he said. “I don’t believe that, and I’m not going to do that.”
Those are some pretty intense consultants.
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It’s about the tax hike
Friday, Apr 4, 2014 - Posted by Rich Miller
* After talking about “intrigue” and “mysteries” for days, the Chicago media finally woke up to what has really gone wrong with Mayor Rahm Emanuel’s pension reform bill. I mean, just look at this story from two days ago…
Gov. Pat Quinn on Wednesday trotted out his running mate Paul Vallas to hammer Republican challenger Bruce Rauner’s position that the state income tax rate should rolled back, saying doing so would result in huge cuts to education and spikes in local property tax rates. [Emphasis added.]
* Much of last week’s budget address was about how Illinois’ high property taxes were holding the state economy back…
In Illinois, more is collected in property taxes every year than in the state income tax and state sales tax combined. In fact, Illinois has one of the highest property tax burdens on homeowners in the nation - more than 20 percent above the national average. The property tax is not based on ability to pay. The property tax is a complicated, unfair tax, hitting middle class families the hardest.
* Flash-forward…
If the mayor’s pension reform plan is approved by state lawmakers, the governor and local aldermen, the city’s share of property would increase over 30 percent by the year 2020.
* So, bingo. Now everybody knows what’s up. It’s the taxes, man…
Gov. Pat Quinn finds himself in a bit of a political pickle: he’s running for re-election on a pledge to cut property taxes, but Mayor Rahm Emanuel wants to raise Chicago property taxes as part of a plan to shore up the city’s ailing government worker pension systems. […]
Signing a city pension bill that would end up with a Chicago property tax increase would run counter to Quinn’s campaign message ahead of the Nov. 4 election.
* The Governor made it pretty darned certain yesterday where he stands…
I wanna make it clear: I believe in reducing the burden of property taxes in our state.”
* And it’s not just Gov. Quinn…
“Right now, a lot of people are concerned about the property tax part of the bill,” said Rep. Mike Zalewski, a Riverside Democrat who supports the bill. “It all came up all of a sudden, and a lot of us were thrown off.” […]
“We’re nowhere right now. I think our members had reservations about granting a new levy authority for the city of Chicago,” said [House GOP leader Jim Durkin], who added that the legislature needs to help Chicago find a way to resolve its financial problem.
* More…
Municipal pension funds are created and governed by state law, so the General Assembly must approve changes. The Chicago plan would increase employee contributions and reduce benefits to retirees. But lawmakers don’t want their fingerprints on any city council vote to raise taxes.
“A lot of us would like to see the aldermen take that vote before we do ours … ,” said Chicago Democratic Rep. Kenneth Dunkin, leader of the Legislative Black Caucus. “We’re starting down here, but there are no assurances the city of Chicago, the aldermen, will follow suit.” […]
“There’s really no reason for any mention of real estate taxes in that pension bill … ,” said Rep. Ron Sandack, a Downers Grove Republican. “For me, I’m not going to vote for a pension bill that has any mention of even a permissive, suggestion of raising taxes. That’s for them.”
* But there’s a problem…
Matt Brandon, secretary-treasurer of SEIU Local 73, said his union, which has about 10,000 members affected by the city pension plan, believes the property-tax guarantee should remain in the package.
“There has to be a revenue guarantee to make this bill the bill we sat down and agreed to with the city of Chicago,” Brandon told Early & Often.
“If what happens with this bill eliminates the revenue guarantee that all of the unions sat there and negotiated with the city, no, we can’t support this bill because that’s the only way we get the pensions 90-percent funded by 2054,” Brandon said.
* SEIU is also trying to calm some nerves. The CTU went after Rep. Christian Mitchell (D-Chicago) hard in the primary, but the SEIU’s Brandon is attempting to assure nervous legislators that his union will have their backs…
Brandon, however, tried to calm that sentiment by telling reticent city Democrats his union — and others backing the mayor’s plan — would be with them come election time if they vote for the city pension package.
* But SEIU’s message may not be getting out…
Emanuel said he had agreement from 31 labor unions involved, but representatives from three — including the American Federation of State, County and Municipal Employees and the Chicago Teachers Union — oppose it. Those are powerful voices, said Nekritz, and lawmakers haven’t been lobbied by the groups Emanuel says are in favor.
“We’re not hearing anything from them to say, `Yes, do this’… ,” Nekritz said. “That sends a message.”
* But notice how toned down Rauner’s reaction is…
A spokesman for venture capitalist Bruce Rauner, Quinn’s Republican opponent in the November election, said in a statement that Rauner disagreed with the mayor’s proposal.
“Bruce has always maintained that true pension reform requires moving towards a defined contribution style system and believes that should also be part of the solution for Chicago,” said campaign spokesman Mike Schrimpf.
Compare that to his rants on the state pension reform bill and this is unbelievably mild.
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* From a press release…
Rauner Releases Second Ad of General Election
- Highlights bi-partisan support, will take on both political parties -
Citizens for Rauner launched a new television advertisement today featuring Bruce’s wife, Diana, and highlighting his willingness to take on both parties to fix Illinois.
Watch it by clicking here: https://www.youtube.com/watch?v=LqzFaWpDLOI&feature=youtu.be
The Rauner campaign’s first ad of the general election was a Spanish-language ad released two weeks ago.
“NUTS”
BR: I’m Bruce Rauner
DR: I’m Diana Rauner
BR: I’m pragmatic
DR: He’s cheap
BR: We don’t agree on everything
DR: Like politics
BR: What to eat
DR: And that shirt
BR: What?
DR: It’s old and ugly
BR: I’m a Republican
DR: I’m a Democrat
BR: I love her anyway
DR: I’m voting for him anyway because I know Bruce will take on both parties to fix Illinois.
BR: And drive the career politicians nuts. I will. I’ll drive them nuts.
DR: I know, honey. I know.
* It views much better than it reads. Mrs. Rauner is really quite good at this. Have a look-see…
*** UPDATE *** Here’s the cable TV portion of the buy. Notice the networks, including Food Channel and HGTV. This ain’t a Fox News kinda thing…
Citizens for Rauner
Republican candidate for Governor of Illinois
Agency: Access Media, Los Angeles
Total schedule: $82,256
Flight Dates: 4/4/14 - 4/10/14
Networks: BRVO, FOOD, HGTV, TVL, USA
Dayparts: 4-7P, 7P-Midnight
Syscodes / zones / $ by zone
5170 / Chicago Interconnect / $68, 880
9804 / DirecTV / $7,917
9810 / DISH / $5,459
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Biz leaders want tax hikes for infrastructure
Thursday, Apr 3, 2014 - Posted by Rich Miller
* From the Herald-Whig…
Higher fuel taxes could help pay for new road construction under a plan proposed by an Illinois transportation group.
The Transportation for Illinois Coalition unveiled the proposal Tuesday in Springfield. Members say it would provide stability and $1.8 billion annually for construction on roads, bridges, railways and airports.
Coalition chairman Doug Whitley said the plan is needed because a five-year capital construction program, Illinois Jobs Now, is coming to an end this year and the Illinois Department of Transportation is funded at a level that only allows maintenance.
Under the group’s plan, the Legislature should raise vehicle registration fees, impose a 4-cent increase in the gas tax, a 7-cent increase in diesel fuel taxes — coupled with the elimination of the state’s commercial distribution fee — and end ethanol credits for gasoline.
That’s an awful big ask.
* WUIS…
The state’s gas tax has stayed the same for more than two decades. This plan would raise it by 4 cents a gallon and 7 cents for diesel fuel. Jennifer Morrison is with the Transportation for Illinois Coalition, which includes business and labor groups. Combined with an increase in vehicle registration fees and a new sales tax on services like auto repair and oil changes, she says the state’s transportation system can avoid total disrepair.
“If we don’t do anything … That would mean one in every three miles would be in unacceptable condition,” she said.
Doug Whitley, president of the Illinois Chamber of Commerce, says without a long term plan, drivers could be in danger. He points to road and bridge failures.
“What happened in Minnesota, what happened in Washington is disastrous and we don’t want that,” he said.
Much more info can be found by clicking here.
* Bruce Rauner’s response…
Rauner also said he wanted the state to spend more on infrastructure improvement, although he also said he didn’t think Illinois’ motor fuel tax would need to be increased.
“I don’t think so today, based on what I’ve seen,” he said.
George Ryan said the same thing in his 1998 bid. Just sayin…
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Question of the day
Thursday, Apr 3, 2014 - Posted by Rich Miller
* From a press release…
Supporters of a bill that would remove criminal penalties for possession of small amounts of marijuana in Illinois released the results of a statewide poll showing strong support for such legislation. The Illinois House Restorative Justice Committee approved the bill last week, and supporters are now calling on members of the House to approve the proposal.
The Public Policy Polling survey shows 63% of Illinois voters support making possession of an ounce of marijuana a non-criminal offense punishable by a fine of up to $100. Only 27% oppose the proposal. The poll found majority support across all reported genders, races, and political party affiliations. The survey, which polled 769 Illinois voters from March 28-30, is available at http://www.mpp.org/ILpoll.
HB 5708, introduced by Rep. Kelly Cassidy (D-Chicago), would eliminate criminal penalties and the possibility of a criminal record for possession of up to 30 grams of marijuana. It would establish a new class of offense called a “regulatory offense,” which would prohibit arrest or jail time, limit fines to no more than $100, and require the ticket to be removed from a person’s record after the fine is paid, which would prevent individuals from losing employment and housing opportunities.
* According to the poll, even 56 percent of Republicans support this concept. Here’s the actual poll question…
Under current Illinois law, it is a criminal offense for a person to possess marijuana, and he or she can be sentenced to up to a year in jail for possessing an ounce of marijuana. Would you support or oppose a change in the law to make it a non-criminal offense to possess an ounce or less of marijuana for personal use, punishable by a fine of up to $100, but without jail time?
* Let’s ask the same question. Take the poll and then explain your answer in comments, please.
online survey
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Rahm’s rocky road
Thursday, Apr 3, 2014 - Posted by Rich Miller
* As you all know by now, there was no progress yesterday on Rahm Emanuel’s pension reform proposal…
The rapid rollout strategy was aimed at giving legislators little time to get cold feet and blunting labor union lobbying against the changes. But several Chicago lawmakers raised concerns, Democrats blamed Republicans for not getting on board, and the blitzkrieg approach failed — at least for a day. […]
Madigan spokesman Steve Brown said the speaker was “still working the roll call” and was trying to achieve bipartisan support for the bill. But many Republicans remained critical, including Senate Minority Leader Christine Radogno, R-Lemont, who mocked Raoul’s explanation that the bill was fast-tracked because Chicago was in the midst of a crisis.
“This state is always in a crisis,” Radogno said. “When will it end?”
Not only did a vote sputter in the House, but the Senate wasn’t embracing the pension plan either. […]
Democratic Rep. LaShawn Ford said African-American lawmakers were split on the pension bill, adding that he opposed it because his West Side community had “already paid the cost to the city” with closed public schools.
* This is part of what really went down…
Madigan’s legislation would authorize the City Council to levy $50 million more during each of five years, starting in 2016, to devote toward city pension costs. By year five, that tax levy would stand at $250 million more than today, but Republicans added up all of the revenue collected during that period and dubbed Emanuel’s handiwork as a $750 million property-tax increase that they wanted no part of.
“A $750 million property tax-increase is the last thing we need in Illinois,” said Rep. David McSweeney, R-Barrington Hills, who voted against Madigan’s legislation in committee. “This is outrageous. This is going to kill jobs. I oppose this tax increase.”
During committee, Madigan said he was prepared to amend his legislation to soften the property-tax mandate on the City Council by making it merely an option, not compulsory. That amendment wound up being tacked onto his bill Wednesday afternoon.
The original legislation, crafted by the mayor, ordered the city council to pass the tax hike. No way, man. No way.
* Also…
One House Democrat from the city told Early & Often that no one had formally reached out from the mayor’s staff to make a personal pitch for the bill, an oddity given the magnitude of what Emanuel is asking state lawmakers to do on his behalf in Springfield, particularly if Republicans are MIA on the bill. […]
When it became clear the big lift to pass the bill wouldn’t be shared with Republicans, rank-and-file city Democrats appeared to get cold feet with the property-tax component. Others privately expressed worry about opposition to the bill from the Chicago Teachers Union, which last month nearly unseated state Rep. Christian Mitchell, D-Chicago, in a bitter primary in which his December support for a state pension package became a central issue.
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Beyond the rhetoric
Thursday, Apr 3, 2014 - Posted by Rich Miller
* From Tom Kacich at the News Gazette…
One of the first things he’d do as governor, Republican nominee Bruce Rauner said Wednesday, is appoint a task force to study Illinois’ state and local government structure with an eye toward reducing their numbers and size. […]
Among his top priorities, Rauner said, is to “form a task force immediately on day one. It’s not going to be long-lived. It’s going to be about a six-month task force composed of county (board) chairmen, mayors, city managers and school superintendents, to form a task force with me and (lieutenant governor nominee) Evelyn Sanguinetti with a goal of meeting to talk about how we bring efficiency through the layers of government throughout the state of Illinois. Today our spending problems and our tax problems are not only at the state levels. They’re at the county level, the school district level and the city and municipal level. […]
Asked if he wanted to eliminate 3,000 units of government, he answered, “What we have to look at is, how can we be more competitive and efficient? I can’t name numbers today. I know we have thousands more units and you’ve got to ask yourself, common sense would say, why? We’re not that different than other states. Why do we need 3,000 more units of government than any other states? That doesn’t make sense.”
Although Illinois does have more units of local government than any other state — 6,963 as of June 30, 2012, according to a U.S. Census Bureau report — it has only 1,816 units more than Texas. But Texas is almost five times larger than Illinois and has about twice the population.
Rauner spokesman Mike Schrimpf said Rauner was referring to other Midwestern states, none of which has more than 3,752 units of government (Missouri).
Missouri’s population is half the size of ours, so they actually have more governmental units per capita than we do.
* But there’s no doubt that Illinois has far too many local governments. And a task force has already taken a close look at the problem. The bipartisan Local Government Consolidation Commission was created in 2011 and released its findings yesterday. From its summary…
By reviewing reports from around the country conducted on the topic of local government and consulting with experts who worked on such reports, the Commission realized that simply reducing the number of local governmental units does not necessarily result in a reduction in costs to the taxpayer. Current findings suggest that successful models of cooperation and consolidation in local government aim to achieve greater economies of efficiency and increase the effectiveness of government at all levels. When the goal is improving the efficiency of service while maintaining service quality and controlling costs, cooperation proves much more successful than efforts focused on reducing the number of local governments in an area.
Additionally, findings suggest that cooperation and consolidation must be approached on a case-by-case basis, as different local units of government have different needs. Working on a case-by-case basis allows cooperation and consolidation advocates in government to better understand the needs and reservations of the residents within the district. Residents often take pride in where they live, changes to the structure and operation of their government must be approached with open communication between all involved parties. Open communication can allow all sides to be aware of the other’s stance, making the end result more acceptable to all. As votes are often required to actually consolidate, working towards a result voters support is essential. [Emphasis added.]
* The commission worked very closely with DuPage County Board Chairman Dan Cronin, who has made headway into reducing the number of governments in his county. Cronin is a Rauner supporter, so perhaps the candidate could reach out. Back to the commission’s report…
As a result of the findings, Chairman Cronin recommended that there be greater oversight by the county with regard to special districts to which the county appoints members. Counties currently do not have the authority to affect these special districts without state action. Most local districts come into existence through local referendum and can only be undone by local referendum. Chairman Cronin believes that if the County had greater control over these special districts, they would be able to put in place better practices and hopefully find ways to save taxpayer dollars.
* And a bill has not only been filed, but has cleared the House. From Rep. Jack Franks…
Additions to Illinois’ nearly 7,000 units of local government will come to a stop under legislation passed through the House on Wednesday by state Rep. Jack D. Franks, D-Marengo.
“Illinois stagnant economy is hindered by local government intrusion into taxpayers’ pocketbooks and lives,” Franks said. “The addition of layer after layer of local government in our state is similar to a gambler who, after losing hand after hand, continues to bet more in the hopes that, on the next hand, he will hit the jackpot. To me, the lesson here is very clear – when you’re in a hole, stop digging.”
House Bill 3251 places a four-year moratorium on the Illinois General Assembly’s authority to create any new units of local government. However, it does allow a government body to be created as a result of the consolidation of two or more pre-existing units.
The Local Government Consolidation Commission, chaired by Rep. Franks, also released its final report Wednesday. The report details the meetings, findings and recommendations of the commission, and represents research and work toward building a consensus between the many members on addressing the excess of local government bodies in Illinois.
The commission’s recommendation to grant various municipal governments the authority to annex, consolidate or dissolve has been filed by Rep. Franks as House Bill 5785. That measure awaits a vote of the full House following passage by the Counties and Townships Committee.
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Fun with money
Thursday, Apr 3, 2014 - Posted by Rich Miller
* Approximate projected net cost of the Democratic plan to mail $500 property tax “rebate” checks to every homeowner before the November election: $700 million.
* Approximate projected net revenues from House Speaker Michael Madigan’s 3 percent tax surcharge on income over a million dollars, which is all earmarked for education: $1 billion.
Couldn’t they just give schools another $700 million and forgo creating a top state income tax rate of 8 percent?
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Caption contest!
Thursday, Apr 3, 2014 - Posted by Rich Miller
* From the Illinois Senate Republican Fan Page on Facebook…
Sen. Bivins listens intently as his democratic colleague explains legislation in the Criminal Law Committee.
Tim is one of the funnier guys in the General Assembly. So, maybe we should have a little fun with him today…
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* Gov. Pat Quinn is out on the circuit today…
GOVERNOR’S PUBLIC SCHEDULE
**Thursday, April 3, 2014**
CHICAGO – Governor Pat Quinn will visit DePaul University to discuss his plan to make higher education more affordable and accessible by doubling the state’s investment in the Monetary Assistance Program (MAP) over the next five years.
Quinn is also planning stops in Urbana and DeKalb.
* From the Bruce Rauner campaign…
Quinnocchio Goes To College
- Quinn’s History on MAP Grants Doesn’t Match His Rhetoric –
Quinnocchio predicts that when Pat Quinn meets with DePaul University students this morning about MAP grants he won’t tell them about his previous cuts to the program. […]
Quinn Eventually Signed A Budget That Actually Cut MAP Funds For FY2013. “The budget he signed last month cuts MAP funds by 4 percent, according to the Illinois Student Assistance Commission.” (Christopher Wills, “Quinn Signs Bill Ending Legislative Scholarships,” The Associated Press, 7/11/12)
Funding For Needy Illinois College Students Was Just $370.8 Million In FY2013 - When Adjusted For Inflation, That Is The Lowest Funding Level For MAP In More Than A Decade. (Table 2.0a, 2013 Illinois Student Assistance Commission Data Book, Accessed 3/27/14)
Only 37.4% Of Eligible Students Who Applied In FY2013 Received A MAP Grant - The Lowest Proportion Of Applicants To Receive Grants Since FY1999 At Least. (Table 2.0a, 2013, Illinois Student Assistance Commission Data Book, Accessed 3/27/14)
Quinn Cut MAP Funding In Half In 2009
Quinn And General Assembly Democrats Slashed MAP Funding In Half In The Initial FY2010 Budget. “About a quarter of Illinois’ college students depend on the so-called MAP grants. But lawmakers and Gov. Pat Quinn decided earlier this year, in the midst of a state budget crisis, to fund only about half of the $440 million program — enough to get students through the first half of the school year.” (Jodi. S. Cohen, “College Funding Program On Empty,” Chicago Tribune, 10/11/09
* Rauner was in Champaign County yesterday and talked about the need for more spending on higher education…
“Under Pat Quinn’s administration state support for the (University of Illinois) and other universities has been cut. That’s wrong. We should be increasing our investment in education. Education’s the most important investment we can make together as a community.”
He also said he’d undertake a closer review of university spending as governor.
“Much of the spending at the University of Illinois and in other universities has grown very highly in the administrative cost structure whereas spending inside the classroom and on research hasn’t necessarily kept pace. I’d like to see us re-prioritize, invest in the classroom for the students and invest in the research and the potential economic development and be more efficient in the administrative layer.”
Thoughts?
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Propeller heads?
Thursday, Apr 3, 2014 - Posted by Rich Miller
* Tribune…
Mayor Rahm Emanuel [yesterday] dismissed a state task force report that called for one mega mass transit agency combining the CTA, Metra and PACE as written by “propeller heads.”
The characterization came today when the mayor was asked if the single transit agency is a good idea.
“No, and in capital letters. Let me just be really clear: This is what happens when you lock up a lot of propeller heads in a room for a short period of time. First they say we have an unaccountable, nameless, faceless bureaucracy. Hold on, we’d like to replace it with the new version of a unaccountable, nameless, faceless bureaucracy,” Emanuel said after today’s City Council meeting.
“I’ve had my views on the importance of being a propeller head. I think I’ve given you my views of that. It is a non starter with this,” the mayor added.
* But the Tribune editorial board was quite impressed with the recommendations this week…
•There’s no strategic plan to expand the transit system or increase ridership. The CTA, Metra and Pace aren’t working together to make buses and trains more accessible and convenient. The “legacy system” is still Loop-centric, while other employment corridors are woefully underserved. Only 12 percent of suburbanites can get to work on mass transit in less than 90 minutes.
•Capital spending is all about catch-up. There’s a $20 billion backlog just to bring the system into a “state of good repair,” according to the Regional Transportation Authority, which is supposed to provide oversight for the three transit agencies but — here’s another task force finding — doesn’t. Transit spending is based on returning revenue to where it was raised, not on building a system that serves the region.
•Much of this can be blamed on an entrenched “culture of division.” The system is governed by four boards, with 47 members appointed by 21 elected officials. Instead of thinking regionally, board members defend the parochial agendas of the politicians who appoint them.
The task force recommends transitioning to a single oversight board — but not the RTA. A 2008 transit reform bill, passed mostly to address the CTA’s chronic budget emergencies, was intended to give the RTA the teeth to force the transit boards to work together, the report notes. The RTA was supposed to develop a strategic plan and to set and enforce performance standards. That didn’t happen. “The agency’s lackluster response to the new authority given to it in 2008 does not inspire confidence,” the task force report says. It also criticizes the RTA for employing Madigan’s son-in-law as its chief of staff.
Members of the new board would be appointed by local governments and the state. Candidates would be vetted by an independent panel to guard against cronyism and conflicts of interest. They wouldn’t be salaried — until recently, they qualified for state pensions — and they could be removed more easily if, for example, they signed off on another hush-money severance deal.
Discuss.
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The times are changing
Thursday, Apr 3, 2014 - Posted by Rich Miller
* Check out this roll call…
Sen. Iris Martinez, D-Chicago, proposed a bill permitting minors with seizure disorders, including epilepsy, to take a derivative of medical cannabis. It passed 49-5 in the Senate and goes to the House. […]
Sen. David Luechtefeld, R-Okawville, whose grandson has as many as 100 seizures in a day, said he was torn about the bill because was concerned about the long-term side effects of marijuana on children.
Martinez responded that the marijuana extract given to seizing children had “no real side-effect,” especially compared to the FDA-approved drugs already on the market for epilepsy. She said that where current drugs fail to cut down on the number of seizures a kid has, marijuana oil has been proven to significantly reduce seizures “in an enormous way.”
But Sen. Tim Bivins, R-Dixon, said he wouldn’t vote for the bill because it didn’t specify how the medicine would be taken. Bivins said he opposed the idea of allowing kids to smoke the drug.
Sen. Mike Jacobs, D-East Moline, came to the defense of the bill, saying the important thing is that marijuana actually works at reducing seizures.
Luechtefeld ended up voting for the bill. Sen. Bivins voted “Present.”
Voting “No” were Republican Sens. Bill Brady, Kyle McCarter, Christine Radogno, Dale Righter and Chapin Rose.
But twelve Republicans voted “Yes.”
Twelve.
Progress is being made, folks.
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Support clean energy: Fix the RPS
Thursday, Apr 3, 2014 - Posted by Advertising Department
[The following is a paid advertisement.]
The Illinois renewable portfolio standard (the RPS) was passed into law in 2007 and requires 25% of the state’s power to come from clean sources by 2025. The RPS made Illinois a leader in renewable energy development between 2008 – 2012. Yet a glitch in state law has broken the RPS, halting renewable energy development and leaving Illinois behind as the market grows.
Maintaining a strong RPS is #1 priority for growing clean energy businesses in Illinois. Legislation now pending in the General Assembly would fix the RPS and jumpstart billions of dollars of clean energy development.
Click below to meet Illinois clean energy workers and find out more about the important role this industry plays in our state’s economy. Let’s make Illinois a clean energy leader again – support the RPS fix!
WWW.CLEANJOBSILLINOIS.COM
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Credit Unions - Protecting consumers during times of need
Thursday, Apr 3, 2014 - Posted by Advertising Department
[The following is a paid advertisement.]
Credit unions live out their ‘People Helping People” philosophy everyday and truly in times of disasters. The cooperative structure of credit unions, not their size or range of services, is the reason for their tax exemption – and why nearly three million Illinois residents call them home. Owned and democratically controlled by the people who use them, credit unions help members reach day-to-day financial goals and provide unwavering support during crucial times. After finding itself at the epicenter of the November 17 tornadoes, CEFCU’s Washington branch immediately served as a command center. The next day, the credit union donated $100,000 to the local Red Cross and collected funds at all Illinois member centers. Staff also contributed personal funds. Recognizing that the security of personal financial information was potentially compromised, CEFCU offered one free year of credit monitoring to all members impacted by the storms. CEFCU also established a response team for comprehensive member service, hosted a homeowner seminar, waived fees, rushed check orders, replaced debit and credit cards overnight at no charge, and opened its Washington branch two Sundays to provide extended service hours. People before profits – the one credit union principle that remains constant – and highly valued by their members.
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