CHICAGO – Illinois House Republican Leader Jim Durkin (R-Western Springs) released the following statement on Governor Pritzker signing SB687 today:
“For two years in a row, Republicans and Democrats have proven that we can balance the state’s budget with no new taxes on Illinois families. However, the graduated tax rates signed into law today are simply the next step to giving Illinois Democrats a blank check for uncontrolled spending for years to come. Illinois families should remain very wary on the rates that are being ‘promised’ today – as Democrats will continue to come back, year after year, and pickpocket more money from Illinois families and businesses.”
* As we’ve already discussed, the Illinois News Network is now called The Center Square. From the publisher…
When a reporter is on target within their beat, they’re said “to be hitting the center square.”
I asked several reporters if they’d ever heard of that saying and nobody has. That doesn’t mean it doesn’t exist, but when I Googled “‘hitting the center square’ reporter” I only came up with one result, the column by its publisher.
But after about ten of these, I’m starting to run out of names. Friends and colleagues have chimed in with helpful suggestions, but I don’t have enough stockpiled to make it through the week and my brain is still a little fried from the session. So…
* The Question: Your own twist on The Center Square’s name?
* The governor has been making the rounds with editorial boards and others. From his sit-down with Bloomberg…
“You need to be able to discern the difference between someone’s posturing and what they really need,” he said of his conversations with Republican legislators, who came to the governor’s mansion in Springfield for cocktails. Some privately told him that “they had talked to me more in the first couple months of my tenure in office than they did for four years under Bruce Rauner.” […]
Illinois last week became the 11th state to legalize recreational marijuana, which could eventually bring in $300 million to $700 million annually, Pritzker said. The change isn’t going to encourage more use, because “marijuana is readily available now,'’ he said. More importantly, the bill allows some drug convictions to be expunged.
“Are we safer with it legalized? Are we safer with it illegal? … I believe we’re making a more just society,” he said. “This most importantly was about criminal justice reform, expunging records, and safety.”
Pritzker said the state has set aside $29 million — the largest per-capita investment in the country — to ensure a maximum census count. A move by U.S. Commerce Secretary Wilbur Ross to include a citizenship question could hurt the accuracy of the population count, he said. “We have to get our numbers,” Pritzker said.
At a meeting with the Chicago Sun-Times Editorial Board Monday, Gov. J.B. Pritzker said he’s inherited infrastructure repairs that have been kicked down the road for decades. He said the state has $15 billion in life safety infrastructure investments to make — and that’s just the start of it.
“Think about all the pent up demand and need — the potholes, the bridges they’re falling apart, the mass transit that we can all see everyday here in Chicago is crumbling — that needs to be done,” Pritzker said.
“So look, we have to pay for these things, and we tried to find ways to live up to our obligations to make it safe and then remember we also need to focus on economic development.”
That’ll mean building new roads in areas where there’s development that could go on and that there’s investment in communities that have “been left out frankly for far too long,” Pritzker said.
The Department of Children and Family Services is set to receive almost $130 million more in the next fiscal year. This is the largest budget increase in more than 20 years. The hike will allow DCFS to hire over 300 [new] front-line staff, like case workers and investigators.
DCFS was appropriated $1.4 billion in Fiscal Year 2000. That would be equal to $2.12 billion today, which is almost a billion dollars more than was actually appropriated for the current fiscal year, which ends June 30th. Long way to go, campers.
Members of the Illinois Board of Higher Education are satisfied with how higher ed fared in the new state budget passed by Illinois lawmakers. […]
“…major steps in repairing the damage,” [Nyle Robinson, the Higher Education Board’s Interim Executive Director] said. “In fact, this is arguably the best session for higher education in a generation.” […]
Higher ed will get an 8.2% increase in general funds over last year.
According to the board members, that’s the largest increase for any year since they started keeping track of it in 1990.
There is also a $50 million dollar boost for Monetary Award Program grant funding.
The new state budget awaiting Illinois Governor J.B. Pritzker’s signature includes what advocates say is a much-needed $80 million increase in funding for mental health and addiction treatment.
The state’s fiscal 2020 budget marks the first time in recent years that lawmakers have approved a signficant increase in state funding for behavioral health services, said Eric Foster, Chief Operating Officer for the Illinois Association for Behavioral Health. Last year’s increase amounted to only about 3%, he said.
This year’s funding increase includes $39 million for addiction treatment and prevention and $43 million for mental health services—which represents increases in 18% and 13%, respectively. The money will be made available to service providers through grant programs administered by the Illinois Department of Human Services.
Foster said an additional $40 million appropriation to the Illinois Department of Healthcare and Family Services will help expand access to psychiatric services; plus $7 million to HFS will be used to boost Medicaid reimbursement rates for mental health and addiction treatment. […]
Illinois spends relatively little on community-based treatment programs: $77 per person, compared to the national average of $133, according to the report; and people in Illinois living with mental illness are “more likely to encounter the criminal justice system, resulting in a large number of arrests and incarcerations,” the authors wrote.
Carol Spain, an S&P Global Ratings analyst, said the state’s recently increased forecast for income tax collections along with revenue measures passed by the legislature resulted in a budget with “few one-time revenues.”
“In S&P Global’s view, the fiscal 2020 budget signals near-term credit stability and buys the state more time to address out-year gaps,” she said in an email.
Spain added that to maintain an investment-grade rating, further progress is needed “toward sustainable structural balance, paying down its bill backlog, and addressing its pension liabilities.”
Ted Hampton, a Moody’s Investors Service analyst, said full payment of Illinois’ fiscal 2020 pension contribution, which lawmakers said was in the budget, would be a positive move.
Moody’s Investors Service affirmed its Baa3 rating and stable outlook on Illinois general obligation bonds Tuesday afternoon.
The formal action underscores the views of several municipal bond market observers that the budget does just enough to keep the state from a calamitous downgrade to speculative grade — but nowhere near enough to start talking upgrade. […]
“In the past year, the state has avoided material worsening of its credit vulnerabilities and marginally built on strengths” as “buoyant tax revenues encouraged policymakers to refrain from proposed cuts to pension contributions, and the legislature authorized some new revenue sources, as well as a referendum to potentially adopt progressive income taxes to further increase revenue-raising capacity,” Moody’s lead Illinois analyst Ted Hampton wrote.
“The accomplishments of the 2019 legislative session indicate improvement in political willingness. However, pension contribution requirements remain on track to outpace organic revenue growth, which will subject the state to persistent fiscal pressure, barring further politically difficult decisions on tax increases or essential service cuts,” Hampton warned.
* Related…
* U of I System snags $1.9 billion in funding - The new state budget doles out money for new buildings and the yet-to-be-built Discovery Partners Institute, as well as the most money ever for the state’s student financial assistance program.
* Hannah Meisel interviewed Illinois Department of Revenue Director David Harris. Excerpt…
Illinois Department of Revenue Director David Harris was one of the small group of Republican legislators who defied former Gov. Bruce Rauner in the summer of 2017 when he not only voted for a tax hike to end a two-year budget impasse, but also voted to overturn the Republican governor’s veto on the increase in income taxes. While he and many others announced their immediate retirements after that vote or their decisions to not seek re-election, Gov. JB Pritzker announced Harris would serve as the director IDOR soon after his November win over Rauner. The Daily Line spoke with Harris on Tuesday two days after the legislature wrapped up its business for the spring session, which resulted in the legalization of recreational marijuana, a $40.1 billion budget, a $44.5 billion six-year capital plan and a host of new taxes and fees in exchange for the creation of a bevy of new tax incentives for businesses. […]
Q: Do you think serving as the head of a state agency the last five months — do you think it’s changed your views on state government writ large? You come from a pretty moderate suburban Republican background and you were a longtime legislator. Do you think your views have changed on state government being truly in it?
A: My perspective has changed, yes. I’ll tell you how. As an example, I was on the [House] Revenue Committee and we’d always say, ‘What’s the revenue estimate on this?’ …We just kind of assumed the Department of Revenue had all those people over there working.
Now, we can punch a lot of numbers and we can punch a lot of numbers quickly. But I will tell you I have a research staff that used to be populated with eight people. It’s now populated with four people…if any one of those people gets in a car accident or gets sick and can’t come to work for two weeks, we have to scramble. Because of reductions — and these are all economists, trained economists, you try to hire an economist in state government at the level we’re going to pay them, it’s not easy.
Remember, the governor’s Fair Tax proposal, what does it mean if the [rates] are at such-and-such a level? We pegged it at a level where 97 percent of taxpayers in Illinois are not going to see any income tax increase, and indeed are going to see a benefit from those proposed levels.
But we’ve got to run through 6 million individual income tax filings to figure that out. It takes time. You just don’t push a button and that computer runs through six million computations. There has to be somebody there to do that.
So it’s absolutely increased my appreciation for what is done specifically at the Department of Revenue, and increased my appreciation for folks who do things like that…I’ve gained a greater appreciation for what it takes to actually run state government, whereas being in the legislature, you can sit there and criticize somebody who didn’t do something or say, ‘This just isn’t working as efficiently as it should and I’ll just pass a bill.’ You pass a bill, that means a lot of things have to happen to make sure that bill works the way you intended it to work.
* At the end of a whiny editorial about the state’s cannabis legalization measure, the Tribune editorial board opines…
Because as the Grateful Dead, early advocates of mind-bending substances, noted in song, life with drugs can make for a long, strange trip.
That’s some tortured syntax right there.
* More importantly, though, “What a long, strange trip it’s been” is a line from a Dead song called “Truckin’”…
The lyrics refer to a drug raid of the band’s hotel lodgings in New Orleans during a concert tour earlier in 1970:
Busted, down on Bourbon Street
Set up, like a bowling pin
Knocked down, it gets to wearing thin
They just won’t let you be
Leave it to the Tribune to bungle a Dead reference. The whole idea of cannabis legalization is to finally stop and reverse the very real harm done from arrest and incarceration.
Sittin’ and starin’ out of the hotel window
Got a tip they’re gonna kick the door in again
I’d like to get some sleep before I travel
But if you’ve got a warrant, I guess you’re gonna come in
Update: Daily Public Schedule: Wednesday, June 5, 2019
What: Gov. Pritzker to sign the state budget and fair tax legislation.
Where: James R. Thompson Center, 15th Floor, Blue Room, 100 West Randolph Street, Chicago
When: 3:15 p.m.
The [infrastructure funding] plan doubles Illinois’ state gas tax to 38 cents from 19 cents per gallon, which will vault the total tax burden on Illinois gas beyond states such as New York and California to second-highest in the nation, according to 2018 data from the Tax Foundation. The increase will be effective July 1.
The state motor fuel tax will also be tied to inflation, meaning it will automatically rise in future years without lawmaker approval. The hike will cost the typical driver around $100 more in its first year.
OK, but the state’s Motor Fuel Tax hasn’t been increased since 1990. Factor in inflation since then and the MFT would be… wait for it… 38 cents per gallon today.
In other words, the tax hike to 38 cents per gallon puts us right where we’d be if lawmakers had pegged the MFT to inflation back then like they just did going forward.
On its way to Gov. J.B. Pritzker’s desk is a bundle of spending proposals that come with tax hikes on Illinoisans – and pay raises for state lawmakers.
Due to a “paperwork mix-up that went uncorrected,” according to the Associated Press, lawmakers can expect a pay hike of $1,600 included in a $40 billion budget proposal that now awaits Pritzker’s signature. […]
Since 2008, state lawmakers’ annual salary has been held constant at $67,836. But that doesn’t include $10,000 committee chairmanship stipends, per diems, mileage reimbursements and other perks lawmakers receive for what is technically a part-time job.
OK, but $1,600 works out to $30.77 per week. Not much.
And if annual automatic increases based on cost of living had not been stopped every year since 2008, they’d be making $82,126.94 right now.
Also, if you have a job that requires you to travel as much as 200 miles twice each week and stay in a hotel or rent an apartment, I don’t see the problem with per diems and mileage reimbursements.
Through all of April and all of May, wave after wave of rain hit the nation right in the breadbasket, with April capping the wettest 12 months on record for the continental United States. The past 60 days, in particular, have coincided with planting season in much of the country. […]
Recent measurements show most of Illinois’s famous topsoils are more waterlogged than they have ever been, University of Illinois economist Scott Irwin said.
Farmers cannot plant in that muck. It fouls their equipment and strangles their seeds. It is not enough for the rain to stop. The soil has to dry for as much as a week before they can plant again. According to the latest forecasts from the National Atmospheric and Oceanic Administration, that does not look likely. […]
This is not like most years. As the calendar ticks toward the point of no return, new data released Monday shows farmers have planted 67 percent of the acres they had planned to put in corn. In key states such as Illinois (45 percent) and Indiana (31 percent), it is even lower. […]
Irwin estimates that about 85 percent of the corn acres in Illinois were covered by such insurance, often as part of enormous operations that can afford coverage. The remaining 15 percent includes many small, family farms that are left with little protection against this unprecedented weather.
Along the Illinois River—which meets the Mississippi in Grafton, Ill.—a levee was breached Monday night, the Calhoun County Sheriff’s Office said, forcing the closure of the Joe Page Bridge that is the main way in and out of the county. They agency was notified of the breach around 8:30 p.m. local time. The breach threatened homes in Nutwood, a community in nearby Jersey County.
The record wet weather over the last 12 months across the U.S. caused several crests along the Mississippi River and record flooding along the Missouri and Arkansas Rivers. May generated 549 tornadoes for the month, according to preliminary reports, the most for that month ever and second to April 2011 for the most tornadoes in any month.
In some areas over the next several days, the Mississippi River will crest within a foot of the 1993 record, Mr. Fuchs said. That flood killed 50 people, caused $15 billion in damage and forced the evacuation of thousands of people.
Governor JB Pritzker has deployed an additional 200 National Guard troops to southern Illinois to monitor rising water in the region.
The additional troops bring the number to 400 patrolling the region threatened by the rising Mississippi and Illinois rivers. […]
According to the governor’s office, state agencies have provided more than three million sandbags, more than 2,700 rolls of plastic, 27 pumps and five dozen Department of Corrections detainees to help hold back rising rivers.
* Since their last pay raise, Illinois lawmakers have had to twice endure actions by statewide elected officials to halt their paychecks. Gov. Pat Quinn vetoed legislator pay out of the budget in June of 2013, an action overturned by a judge in September of that year.
And then in April of 2016, during the budget impasse and an election campaign, appointed Comptroller Leslie Munger announced that she would no longer issue paychecks to legislators. Those checks were finally released in March of 2017 after a judicial ruling.
* And now, after all that and not receiving a single pay raise since 2008, some folks are complaining about the legislative pay increase in next fiscal year’s budget. From Pritzker’s post-session press conference Sunday…
Reporter: This is all people will be talking about, though. This is all taxpayers will say, they gave themselves a pay raise.
* Pritzker was asked today if he would veto out the raises included in the budget…
"Look this was a highly negotiated budget" so @GovPritzker says he will sign it, "as-is." He will NOT use line-item veto power to reduce/reject pay raises going to #Illinois legislators - their first pay bump in a decade. https://t.co/0qK45VhILM
The usual suspects will howl and moan and rend their garments about this, but such is life. Sometimes you just gotta take the heat because a deal is a deal. We’ve had three anti-Springfield governors in a row, so we’ve grown accustomed to leaders who play to the galleries at the expense of the legislature. Those days appear to be over - at least for now.
* Broad categories of how the new infrastructure money will be spent over the next six years, according to the Senate Democrats…
$33.2 billion for transportation projects
$3.5 billion for education projects
$4.3 billion for state facility projects
$1.9 billion for economic development/community development
$1.2 billion for environmental and conservation projects
$465 million for Healthcare and Human Services
$420 million for broadband expansion
* I asked the Illinois Environmental Council for a breakdown of their capital projects. Here’s a quick summary…
Transportation
Approximately 22.5% share for mass transit.
20% of the revenue from the gas tax increase will go to transit annually.
$50 million annually for bike and pedestrian infrastructure.
Sustainable Agriculture
There is a $37 million reappropriation for the Conservation Reserve Enhancement Program and $20 million of new funding in the capital plan.
Open Space
$10 million for the Natural Areas Acquisition Fund
$25 million of new appropriation for land acquisition for Open Lands Trust
$23 million for Open Space Land Acquisition Developmen.
$50 million for parks
Clean Energy
$70 million for renewable energy and energy efficiency programs. This is sufficient funding for 5% of state building energy usage.
$70 million for electric vehicle infrastructure in low income communities.
Clean Water
$200 million for the Water Revolving Fund
$10 million for flood mitigation
$2.5 million for Brandon Road planning
$20 million for dam removal
$25 million for green infrastructure grants
$23 million for U.S. Army Corp of Engineers on ecosystem restoration projects
The full list of the IEC’s budget and capital plan wins is here.
The bill includes $50 million annually for walking and bicycling projects. Funds will be administered statewide through a competitive grant process using the existing Illinois Transportation Enhancement Program (ITEP), which is currently entirely federally funded.
The additional funds from the state will double the size of the program and could fund 125 new projects every year. […]
Eligible projects include pedestrian refuge islands, new trails and upgraded crossings, protected bike lanes, and other safety infrastructure. The bill includes reforms to the program that make it easier for low-income communities to apply and secure funding.
The capital bill also includes sustainable funding for public transit for the first time ever. Transit receives $4.7 billion over six years and $281 million annually in capital funds after that. Public transit receives 23 percent of the transportation funding in the bill.
The group lauded the inclusion of the following items in the bill:
New service to Rockford
New service to Moline
Track improvements for Chicago – Champaign – Carbondale
Track improvements in Springfield
Expanded Metra service into Kendall County
Funding for the CREATE program to relieve freight rail congestion
[…]
Pace
“This will be the largest one-time capital infusion in Pace’s history and allows us to maintain the robust system we currently operate and lay the foundation for future growth,” said executive director Rocky Donahue in a statement. “Projects such as the I-55 Express Bus Garage; ADA Communications Technology Upgrade; River Division Expansion; and a new northwest region garage in Wheeling will now become reality thanks to our legislators. We’re excited to get to work.”
$105.3 million for a health sciences building and other improvements at Southern Illinois University Edwardsville
$96 million for an expansion of MetroLink from Scott Air Force Base to MidAmerica Airport
$37.5 million for main complex renovation and repairs at Lewis and Clark Community College
$24.4 million for the U.S. 67 Delhi Bypass in Jersey County
$24 million for miscellaneous capital improvements at SIUE
$2 million for East St. Louis for demolition of derelict buildings and abandoned properties
* Other stuff…
* U Of I President ‘Delighted’ By New State Budget: The capital projects funding includes $98 million for a computer, design and research center at the Chicago campus; $100 million for a mathematics, statistics and data science collaborative at the Urbana-Champaign campus, and $35 million for a new library at the University of Illinois at Springfield, according to Killeen. Another $500 million was re-appropriated for construction and planning of the Discovery Partners Institute, and 15 research hubs at each university and satellite campus. Killeen said capital projects funding will also be used to pay for “very needed renovations that have sort of languished.”
* Will County big winner after busy end to session: The new state capital bill includes $848 million for Interstate 80, although it was unclear whether the funding included replacement of the Des Plaines River bridges. The capital bill also includes $19.8 million for Joliet Junior College and $55 million to for a new Illinois State Police facility, said state Sen. Pat McGuire, D-Joliet. … McGuire said the state police project includes replacement of both an aging crime lab on Woodruff Road in Joliet and the District 5 headquarters on Route 53. The facilities would be consolidated.
* Sen. Fowler Says His District Did Well in Legislative Session: Senator Dale Fowler of Harrisburg says the budget includes lump sum money for ports across the state, including his proposal for a facility at Cairo. “I believe it’s going to be in July, we’re going to start our meetings on how we’re going to move forward with continued design and engineering of the process and get shovels down in Cairo.” As far as the capital bill goes, Fowler says his district will receive as much, if not more, than any other in the state. “My district alone, the 59th district, is scheduled to receive over $270 million in capital spending funding for roads and bridges that so desperately need repair and well over 100 projects that are designed for my district.”
* Illinois Lawmakers Approve Sports Betting; Chicago And Southern Illinois Get A Casino: State Rep. Terri Bryant (R- Murphysboro), said prisons and universities have been looking for ways to fund their crumbling infrastructure. “At SIU Carbondale, we have four buildings that have to have new roofs, because they’ve had to move computers out of an entire room, simply to be able to keep those computers from having water drip on them from the ceiling.” Bryant voted in favor of the plan.
* New UIS building funded in capital bill re-imagines library: The center will replace Brookens Library and will house the Center for Online Learning Research and Service (COLRS), the Center for Academic Success (CAS) and Information Technology Services.
* Macoupin courthouse gets $1M boost: The courthouse is on the National Register of Historic Places and has been named one of Illinois’ great places by the American Institute of Architects. Years of delayed maintenance on the building, however, have left it in need of repairs.
* Manar wants to make sure Ward 3 gets targeted help: As part of the $45 billion construction program passed by the Illinois General Assembly and awaiting the governor’s signature, there is a $500,000 grant designated for “costs associated with infrastructure improvements within Ward 3” in the city of Springfield. Also included is up to $400,000 for “costs associated with roadway improvements of Adloff Lane,” which is also in Ward 3. “I am very excited for Ward 3, Springfield and the state of Illinois,” said Ward 3 Ald. Doris Turner. “This was an epic legislative session.” … Up to $122 million for rail improvements for Springfield is also in the legislation.
* Peoria Mayor Reacts to Capital Bill: Among the projects approved for the Peoria area are: up to $1 million to Peoria Public Schools to improve Garfield school; $250,000 to the Tri-County Urban league for building repairs; $250,000 to tuckpoint and repair windows on the Peoria Labor Temple
A woman claiming Illinois Democrats, led by House Speaker Michael J. Madigan, have denied her jobs after she complained a Madigan operative sexually harassed her, is trying to force a reluctant Chicago Teachers Union to turn over documents to aid her lawsuit.
In March 2018, Alaina Hampton filed suit in Chicago federal court against Madigan, his campaign organizations and the Illinois Democratic Party. Hampton alleged defendants inadequately addressed her complaints she was harassed by Democratic Party staffer Kevin Quinn, then retaliated against her for lodging the complaints.
As part of the retaliation, Hampton alleged the Chicago Teachers Union did not hire her to help with a political campaign, and the union is refusing to provide documents she claims may prove retaliation was at play. […]
Hampton said she and teachers union lobbyist D’Javan Conway exchanged text messages in which Conway indicated the union was “eager and ready” to have Hampton work with them on Johnae Strong’s campaign for state representative of the Fifth Legislative District in the 2018 election. The union and United Working Families, a grassroots political group, endorsed Strong for the seat.
However, Hampton said Conway eventually told Hampton union officials had learned she was “on the outs” with Marty Quinn, the suit said. Hampton said the union then ended communications with her.
Accordingly, on March 15, 2019, Ms. Hampton issued very narrow and limited subpoenas to the CTU Respondents seeking relevant information regarding the CTU Respondents’ interactions and communications with each other, Ms. Hampton, Ms. Strong and individuals associated with the Defendant political committees regarding Ms. Hampton in order to determine what, if anything, transpired between the time in which CTU first indicated a desire to retain Ms. Hampton’s services in connection with Ms. Strong’s potential campaign and the time in which Ms. Strong withdrew her candidacy.
To date, however, the CTU Respondents have refused to search for and produce any responsive documents. Ms. Hampton has made every possible reasonable attempt to resolve this matter, as required under Rule 37, to no avail.
As such, Ms. Hampton now moves to compel the CTU Respondents to produce the very limited but highly relevant categories of documents that they have inexplicably refused to produce and for an award of reasonable attorneys’ fees and costs.
Bill Brady, Republican leader of the Illinois Senate, once opposed gaming, now wets his beak just like a Chicago alderman. The @chicagotribune's Kristen McQueary @StatehouseChick burns him for it. deservedly https://t.co/vk2h7L1Zu1
Newly installed Chicago Mayor Lori Lightfoot has been calling out elected officials who leverage their public service roles for personal profit.
“No official in this city — elected or appointed — should ever profit from his or her office,” she said last week while calling on now-indicted Ald. Edward Burke, 14th, to resign.
Do you think Sen. Bill Brady, Republican leader of the Illinois Senate, was listening?
A May 28 report from ProPublica Illinois and WBEZ named several politicians profiting off Illinois’ video gambling industry. The state legalized video gambling in 2009 — allowing legal payouts at those video poker and slot machines inside bars and restaurants — and although revenue got off to a slow start, insiders are now making millions from the losses of players. One of those insiders is Brady, a conservative Republican from Bloomington who ran for governor three times. […]
So how does a member of Senate leadership, someone who at various times sat on at least two legislative committees overlapping with the gambling industry, slide into a role where he’s profiting handsomely? That’s a question deserving of a review by the state’s legislative inspector general.
You may find video gaming to be distasteful, but before it was legalized the Outfit made a huge amount of money off the industry. I’d much rather have it legalized, licensed, vetted and regulated.
But did Brady “profit from his office” as the Tribune suggests? Well, did he actually vote for a bill or participate in legislative negotiations that directly helped the video gaming industry, as Ald. Burke has done with some of his own clients?
Brady is listed in internal gaming board records as a “person with significant influence or control,” or PSIC, for Midwest Electronics Gaming, one of the state’s largest video gambling companies. Midwest, operating primarily in central Illinois, made $16 million from video gambling last year and $80 million between 2012 and 2018.
Brady’s designation as a PSIC means he receives a percentage of the proceeds from video slot and poker machines under a revenue-sharing agreement with Midwest. Although the terms and the locations of the machines are not disclosed, any tax increase on video gambling revenue would have a direct financial impact on him.
Taxes were, indeed, raised on video gaming companies this spring. But the companies also got an extra position at each location.
Due to a conflict of interest on a portion of this bill, I will be voting ‘Present’ on this measure. I’d like to also indicate that in any discussions I’ve had with the leaders or others, I have recused myself from any negotiations.
If he’s telling the truth, and so far nobody has disputed him, then that’s fully within the law, even if he did obfuscate his involvement with the gaming company on his economic disclosure forms. That disclosure law is in dire need of revisiting. But it is what it is and I don’t see where an IG investigation is gonna find lawbreaking unless there’s something out there we don’t already know.
The Tribune column above mentions that until all outside income is barred, the General Assembly will be ripe with potential conflicts of interest. That’s true, but that would also mean getting rid of a citizens legislature, and I’m not sure that’s worked out so well with Congress.
No officer, member, or spouse or immediate family member living with such person shall, during the officer or member’s term in office or within a period of 2 years immediately leaving office, hold an ownership interest, other than a passive interest in a publicly traded company, in any gaming license under the Illinois Gambling Act, the Video Gaming Act, the Illinois Horse Racing Act of 1975, or the Sports Wagering Act.
Any member of the General Assembly or spouse or immediate family member living with such person who has an ownership interest, other than a passive interest in a publicly traded company, in any gaming license under the Illinois Gambling Act, the Illinois Horse Racing Act of 1975, the Video Gaming Act, or the Sports Wagering Act at the time of the effective date of this amendatory Act of the 101st General Assembly shall divest himself or herself of such ownership within one year after the effective date of this amendatory Act of the 101st General Assembly.
Illinois Republican Party Chairman Tim Schneider has a message for any voters who are unhappy with the way the latest legislative session went in Springfield.
“If you don’t like the outcome of this session, remember that the Democrats hold all the cards — at the moment,” Schneider said in a press release. “If you don’t like the outcome of this session, the only solution is to work. Work for local, legislative or statewide candidates who take on the mantle of reform.”
The flurry of bills signed into law by Gov. J.B. Pritzker after being passed by his Democratic majority during the final hours of the session were particularly disheartening for GOP leaders who, Schneider said, could do little to stop them.
“Governor Pritzker and Speaker [Mike] Madigan set the parameters,” Schneider said in the release. “They determined what policies to enact and what reforms were ignored. They didn’t need a single Republican vote.”
Maybe they didn’t “need” a single Republican vote, but they sure got a lot of them. And the Republicans could do little to stop the Democrats? In reality, the Republicans extracted more pro-business reforms out of the Democrats than Bruce Rauner did in four years as governor.
From House GOP Leader Jim Durkin…
“The end of this legislative was another historic moment for the House Republicans. Not only did we pass a bipartisan, balanced budget without any tax increases, but we also achieved significant business reforms for our communities that will boost the economy across our state. As I’ve said before, we can get great things done for Illinois families as long as we respect the principles and priorities of each caucus. In doing so, we have passed historic education reform, two bipartisan, balanced budgets and now important reforms that will grow jobs. I am proud to have worked with the legislative leaders and the Governor to finally do what’s right for Illinois families and businesses.”
Reforms include:
· Creation of the Blue Collar Jobs Act – which will attract large scale construction projects.
· Creation of a Data Center Tax Incentive – which will enhance the state’s ability to locate data centers in Illinois by providing tax incentives.
· Reinstatement of the Manufacturer’s Purchase Credit – to encourage further investments in manufacturing in Illinois.
· Elimination of the antiquated Illinois Franchise Tax.
· Elimination of cap on the Retailer’s Discount.
· Tabling of Senate Bill 1407 – a bill that aimed to impose wage and regulatory requirements on refineries, ethanol plants, and chemical facilities.
The first year of a five-year phase-out of the franchise tax will reduce taxes for 300,000 businesses, supporters said. The Blue Collar Jobs Act will give tax credits for construction projects.
* The House Republicans introduced the Blue Collar Jobs Act last year. From the synopsis…
Provides that the Act may be referred to as the Blue Collar Jobs Act. Amends the Illinois Enterprise Zone Act. Creates a High Impact Business construction jobs credit and an Enterprise Zone construction jobs credit against the taxpayer’s Illinois income taxes based on the incremental income tax attributable to laborers or workers employed at certain construction sites located in Enterprise Zones. Amends the Economic Development for a Growing Economy Tax Credit Act. Creates a New Construction EDGE Credit based on the incremental income tax attributable to laborers or workers employed at construction sites associated with EDGE projects. Amends the River Edge Redevelopment Zone Act. Creates a River Edge construction jobs credit based on the incremental income tax attributable to laborers or workers employed at certain construction sites in a River Edge Redevelopment Zone. Requires contractors and subcontractors associated with projects that receive credits under the amendatory Act to file certified payroll information with the Department of Labor and the Department of Commerce and Economic Opportunity.
Some of that stuff was phased in, but they got pretty much all they asked for.
…Adding… As hardcore Raunerite “Lucky Pierre” and other commenters have mentioned, the legislative Republicans also convinced the governor to back off his demand that the private school scholarship program be phased out. That was a huge win on its own, particularly considering how much the teachers’ unions wanted that program eliminated.
Up next, [Chicago Mayor Lori Lightfoot] said, will be a study to figure out where the casino should go. “I’m not going to get into speculation about where it should be,” Lightfoot said while talking to reporters after announcing her new picks for the Chicago School Board. “A lot of that is also going to be dictated by what we see in the results of the feasibility study. So we’ll stay tuned on that issue.”
As for the timeline, the mayor didn’t get into specifics, but she rejected a theory that it could be two or three years before Chicago has anything up and running
“No, I don’t think so,” she said. “I think we’re very purposeful and intentional about putting in very tight timelines so that we can get a feasibility study back in a short period of time. And then if we needed to make adjustments in the legislation, then we’ll be primed to do that before, during the veto session this fall.”
In addition, within 10 days after the effective date of this amendatory Act of the 101st General Assembly, the [Gaming] Board, with consent and at the expense of the City of Chicago, shall select and retain the services of a nationally recognized casino gaming feasibility consultant. Within 45 days after the effective date of this amendatory Act of the 101st General Assembly, the consultant shall prepare and deliver to the Board a study concerning the feasibility of, and the ability to finance, a casino in the City of Chicago. The feasibility study shall be delivered to the Mayor of the City of Chicago, the Governor, the President of the Senate, and the Speaker of the House of Representatives. Ninety days after receipt of the feasibility study, the Board shall make a determination, based on the results of the feasibility study, whether to recommend to the General Assembly that the terms of the license under paragraph (1) of this subsection (e-5) should be modified. The Board may begin accepting applications for the owners license under paragraph (1) of this subsection (e-5) upon the determination to issue such an owners license.
In addition, prior to the Board issuing the owners license authorized under paragraph (4) of subsection (e-5), an impact study shall be completed to determine what location in the city will provide the greater impact to the region, including the creation of jobs and the generation of tax revenue.
The licenses authorized under subsection (e-5) of this Section shall be issued within 12 months after the date the license application is submitted. If the Board does not issue the licenses within that time period, then the Board shall give a written explanation to the applicant as to why it has not reached a determination and when it reasonably expects to make a determination. […]
Effective date. This Act takes effect upon becoming law
Those aren’t absolute timelines, but the city could conceivably have something up and running more quickly than 3 years because the law also allows for a temporary location.
Gov. J.B. Pritzker said Monday he would prefer a newly-allowed Chicago casino be located separately from the downtown business district and away from McCormick Place.
While stressing the decision on locating the casino belongs to Mayor Lori Lightfoot and the City Council, the governor said his preference is for the casino to be put in an area that hasn’t benefited from downtown’s building boom.
Pritzker would not name potential sites, but his comments would appear to help the prospects of the old Michael Reese Hospital property at 31st Street and the lake or the former South Works property at 83rd Street and the lake. Another possibility is the Illinois International Port District land on the Southeast Side.
“I will say that we don’t want to, let’s say, compete with what I think is important about downtown, which is, you know, this is a business town, right? And McCormick Place is a business showplace, and it’s different than other places, right?” Pritzker told the Chicago Sun-Times Editorial Board.
“You go to Las Vegas for your convention and you know that the people who are coming are not really spending all their time in the show, but love to go because of all the entertainment and everything else. I think in Chicago people come here to do business, and so you want to make sure that they’re separated, let’s say,” he added.
* The Tribune has a pretty good roundup of under the radar bills passed in the past several days. Here are a few of the bills from its list…
– Hotels and motels would be required to train employees on how to recognize instances of human trafficking and workers would be required to report it under a measure that received final approval Wednesday in the Senate. The bill also would require additional training for law enforcement officers and includes stronger penalties for businesses that “knowingly benefit” from ventures involving involuntary servitude.
– Local law enforcement agencies would be prohibited from entering into agreements with U.S. Immigration and Customs Enforcement to enforce federal immigration law under legislation that received final approval Thursday in the Senate. No such agreements currently exist in Illinois, but the bill’s sponsors voiced concerns in light of President Donald Trump’s hard-line stance on immigration. […]
— Smoking would be prohibited in any vehicle carrying someone younger than 18 under a bill that received final approval Saturday in the House. The restriction would apply regardless of whether the vehicle is in motion or stopped or whether the windows are down. Police wouldn’t be allowed to stop drivers solely for this violation, but it would carry a fine of up to $100 for the first offense. […]
— Potential employers would be prohibited from requiring job applicants to disclose their salary histories or seeking the information from an applicant’s current or former employer under a measure that received final approval Wednesday in the House. Supporters said the bill is designed to address the wage gap between men and women. Lawmakers passed two earlier versions during the previous administration, but then-Gov. Bruce Rauner vetoed both.
* Related…
* Illinois Capital Bill Includes $50 Million For Arts And Culture Projects: The capital bill passed by the Illinois House and Illinois Senate yesterday includes a new $50 million funding source for arts and culture capital projects, nearly four times more than the last capital bill in 2009. This funding will enable critical infrastructure improvements, building expansions, and other important initiatives.
* Illinois Governor Agrees to Fund Scholarship Program He Once Opposed: Rabbi Shlomo Soroka, Agudath Israel of Illinois’ director of government affairs, told Hamodia that the Governor’s about-face represents a major victory for the broad advocacy effort of which he was a part. “It’s a very positive development,” he said. “Not only was scrapping this program one of the Governor’s campaign pledges, his budget proposal was a first step in doing that and despite a lot of pushback, he was not backing down. It took a lot of effort on our part and a lot of mobilizing grassroots advocacy, but it was saved, and the Governor certainly deserves a lot of credit for being open to learning about the benefits for children, despite his original position.”
Casino Expansion: One Time Revenues (License/Application/Position Fees): $360 million in FY20
One-Time Reconciliation Payments: $630 million (not to be collected until FY23)
One-Time Revenues from bidding of the six new casinos: conservative estimate of $200-$300 million per license, for six licenses. Total revenues could be realized all in FY20 ($1.2 billion - $1.8 billion), or could be spread out over several years.
Recurring Revenues: $170 million annual for slots, $17 million for table games at full implementation.
Racetracks: One Time Revenues (License/Application/Position Fees) of $220 million
Recurring Revenues: Awaiting either GOMB or CoGFA analysis.
Sports Betting: One time revenues for licensing fees $240 million at full implementation.
Recurring revenues: $60 million - $100 million at full implementation (this does not include the Lottery Kiosk Pilot Program as Illinois would be the only state to separate that out from other providers at 35% tax rate).
Video Gaming: Projected to bring in an additional $40 million to state, $8 million to municipalities in year 1, $50 million state; $10 million munis going forward. This does not include natural growth from additional terminals which could maximize revenues up to $150 - $200 million at full implementation (stakeholder estimate that does not factor in cannibalization of the market).
One Time Revenue Estimate Totals: $2.7 billion at full implementation. This could all be realized in FY20 with the exception of $60 million in online sports wagering licenses due to the penalty box.
Recurring Revenue Estimate Totals: $470 million at full implementation. This does not include the Lottery Sports wagering pilot program.
You can’t bond one-time revenues, of course, but $2.7 billion will eventually fund a lot of vertical construction projects. And we’ll see what the recurring revenue total eventually winds up being and if they ever decide to bond that money. Frankly, having $400 million or so in recurring revenues would be better spent on pay as you go projects every year. That means a new capital bill every year, which is how things used to be done.
* Got bogged down while trying to put together a couple of big posts, then looked up and saw the time. Oops. Please keep it Illinois-centric and be kind to each other and I’ll see if I can put together a couple of smallish posts soon. Thanks
