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Friday, May 5, 2017 - Posted by Rich Miller

* From a Chicago Tribune editorial entitled “Puerto Rico is the frightening Ghost of Illinois Future”…

The island, an American territory, is weighed down by $123 billion in bond and pension debt it cannot afford. Illinois, meanwhile, has about $130 billion in unfunded pension obligations alone, plus billions more in retiree health care and other liabilities. The circumstances are different, but no government can function properly — indefinitely — under ever-rising debt. Eventually something gives.

One of the different “circumstances” is that Puerto Rico’s population is just 29 percent of the Illinois Census number. So our debt would have to be much, much higher to match PR’s problem.

Another difference is that the vast majority of Illinois’ debt is tied up in long-term pension obligations, while, according to the Tribune editorial, 61 percent of PR’s outstanding debt is in bonds, which are likely much shorter term obligations.

And yet another difference is that Puerto Rico’s top income tax rate is vastly higher than ours: $8,430 on the first $61,500 (13.7 percent) plus 33 percent on any income over $61,500. They simply have much less room to raise their rates than we do at our current 3.75 percent.

…Adding… It has been duly noted in comments that PR residents don’t pay federal income taxes.

…Adding… As noted by a commenter, Illinois’ gross state product is about 7 times higher than Puerto Rico’s.

* The editorial’s conclusion…

The right response for Illinois is to look at the ruin of Puerto Rico and take its fate as a dire warning: This state has an unsustainable debt load. Eventually it will overwhelm government and taxpayers. No plan to reform the economy to spur growth and create more taxpayers. A $12 billion backlog of unpaid bills. Only gridlock and infighting as the debt load grows. But it is not too late for Illinois to change its ways.

You won’t get any argument from me that we need some economic reforms in this state. But that’s more of a long-term issue. Our debt load is currently “unsustainable” because the politicians in charge won’t find the money to pay for it via revenues and budget cuts. What’s happening right now is a completely man-made crisis.

* Scream all you want about it, but Illinois can’t just walk away from that debt. It has to be paid unless Congress steps in. And that’s something that even the Tribune doesn’t like…

It’s a theoretical solution no one should wish for because of the pain and chaos it would create. If bankruptcy protection became an option, bondholders would charge punishing interest rates, or quit buying Illinois bonds, because of the increased risk that the state couldn’t make its interest payments.

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Friday, May 5, 2017 - Posted by Rich Miller

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*** UPDATED x1 - Rauner responds *** Pritzker wants Rauner to “break his silence” on ACA repeal and replace

Thursday, May 4, 2017 - Posted by Rich Miller

* Press release…

Today, House Republicans will vote to repeal and replace the Affordable Care Act with the American Health Care Act. This dangerous plan would be a disaster for millions of Americans across the country and here in Illinois.

JB Pritzker released the following statement in response:

“It’s unbelievable that Republicans, who are supposed to represent our families, will vote to take away health care from nearly 24 million Americans today,” said JB Pritzker. “This is exactly what we don’t need, tax breaks for millionaires and billionaires on the backs of Illinois’ working families and those with preexisting conditions. It’s time for Bruce Rauner to break his silence and stand up for the more than one million Illinoisans who will lose their health care. As governor, I will stand up against the Trump-Rauner agenda and fight for all Illinoisans to have access to health care.”

* Greg Hinz asked around yesterday…

Gov. Bruce Rauner’s office has said nothing for months about the Washington debate, but insiders say the governor remains concerned about big cuts in Medicaid spending included in the Ryan bill.

* And I’m kinda surprised that nobody has picked up on this Illinois Working Together press release yet…

President Donald Trump’s proposed replacement of the Affordable Care Act would save Illinois Governor Bruce Rauner millions of dollars each year by eliminating a tax provision that funds health insurance for working people under Obamacare.

In 2015, Gov. Rauner paid $6.6 million in the Net Investment Income Tax, a provision created by the Affordable Care Act that applies only to the wealthiest individuals and is a critically important source of funding for the ACA’s health insurance premium subsidies. See here for Gov. Rauner’s 2015 tax return; Net Investment Income Tax is listed on line 62.

The American Health Care Act — TrumpCare — would eliminate the Net Investment Income Tax, simultaneously gutting ACA funding and funneling money to rich individuals like Rauner.

Gov. Rauner also paid $1.8 million in the Net Investment Income Tax in 2014 and $1.9 million in 2013, running his three-year savings to $10.3 million. According to the Joint Committee on Taxation, repealing the Net Investment Income Tax would cost the U.S. Treasury $158 billion over 10 years.

If the Affordable Care Act is repealed, 1.2 million Illinoisans would lose health coverage according to the Center on Budget and Policy Priorities. To date, Rauner has refused to take a position on the Trump-GOP effort to repeal the ACA.

“After supporting Donald Trump in the 2016 Presidential campaign, Gov. Bruce Rauner now stands to save millions if Trump guts health coverage while slashing taxes for the rich,” said Jake Lewis, Campaign Director for Illinois Working Together. “The people of Illinois deserve to know where Gov. Rauner stands: Will he defend the 1.2 million Illinoisans who will lose care if the Affordable Care Act is repealed, or would he rather pocket millions of dollars while hard-working people lose their health care?”

*** UPDATE *** The governor says he’s “concerned”…

Governor Bruce Rauner has released the following statement regarding the U.S. House of Representatives’ passage of the American Healthcare Act:

“The bill that passed in the U.S. House today continues to be of deep concern to our administration. Recent changes did not address fundamental concerns about the bill’s impact on the 650,000 individuals that are part of our Medicaid expansion population, nor have those changes eased the concerns of the 350,000 people in the individual market who are dealing with skyrocketing premiums and fewer choices. We will continue to voice our concerns as the law moves to the Senate.

“The Affordable Care Act is a seriously flawed law that should be changed. Difficult as the task has proven, we are hopeful that our federal lawmakers will continue to work hard to get this right for the people of Illinois and our nation.”

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*** UPDATED x2 *** Corrections director grilled on why records were moved

Thursday, May 4, 2017 - Posted by Rich Miller

* AP…

Illinois Senate Democrats say Gov. Bruce Rauner’s administration inappropriately spent money to move records from a closed prison to new warehouse space.

Sen. Andy Manar is a Bunker Hill Democrat. He questioned Corrections Department Director John Baldwin during an appropriations committee hearing Wednesday.

Manar says Department of Human Services records had been stored in at least one building on the campus of the former Dwight Correctional Center in Livingston County. But he says those records were moved to a Springfield warehouse the state recently leased for $2.4 million amid a two-year budget stalemate. […]

Manar says he was told the Dwight building needed extensive roof repairs. But there is other vacant state space.

* Finke…

“What was occurring at the Dwight facility that would cause these documents to have to be moved out of a state-owned facility to another facility that is leased to a private vendor?” Manar asked.

“I have no idea at all,” Baldwin replied. “I have not heard of that.”

Manar then asked Baldwin if he was aware the documents had been stored at Dwight.

“No,” Baldwin said.

Baldwin acknowledged the department has a number of vacant buildings on its hands, but told Manar he could not vouch for them being suitable for storing paper documents.

*** UPDATE 1 *** From the Department of Corrections…

Hey Rich,

I just wanted to clarify that CMS assumed full financial obligation for the facility in Dwight in 2014 and entered into an agreement with DHS on the DOCs behalf. The agreements between the agencies gave DHS access to several buildings on the grounds so they could store their files. Neither CMS nor DHS were required to notify the Department or the Director about when or why they moved the documents.

Nicole

* And this is from the Department of Human Services…

Hi Rich –

I saw your post about the DHS records being moved. The attached memo details some of the issues at the Dwight facility and illustrates the need for a new location. Please let me know if you have any questions.

Best regards,

Meredith Krantz

The memo is here.

*** UPDATE 2 *** Sen. Andy Manar…

Once again, our committee is left with more questions than when we started. The governor is more than halfway through his term and it’s as if no one knows who’s running what within the Rauner administration.

We’ve asked very simple, straightforward questions now to three different agency directors and the governor’s chief of staff. We have yet to receive a simple, straightforward answer back about why millions of taxpayer dollars are being spent to move and house old state paperwork in a former furniture store when Illinois has several empty buildings available at no cost.

These records were kept at the now vacant state women’s prison in Dwight. If there were maintenance concerns at that site, we would like to know the cost of remedying them because it’s hard to believe it would cost more than the $2.4 million that taxpayers will pay to lease the former furniture store.

Keep in mind, we are in a budget crisis and we are talking about the Rauner administration spending millions to find new homes for old paperwork. We have simple questions we would like answered: Who in the administration is directing this and why is it such a priority?

Bruce Rauner promised management expertise from a proven businessman. Given the mismanagement and confusion we’re witnessing, clearly the taxpayers are not getting what was promised.

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*** UPDATED x2 *** Rauner’s new ad tries to connect him to start-up lifestyle

Thursday, May 4, 2017 - Posted by Rich Miller

* Gov. Rauner’s latest campaign video…

* Script…

For the small business owners, the entrepreneurs, the risk-takers and change-agents. There’s no 9-5. Work doesn’t stop and they don’t stop, because they know there’s always more to be done, more to achieve.

Bruce Rauner knows that drive. He made his name leading one of Illinois’ most respected businesses.

But his first job was cooking burgers. His second? Parking cars. In college, he worked in the dining hall to earn extra money.

When he moved back to Chicago to work at a data company, he spent nine months sleeping on a camping mattress, because he didn’t have any furniture.

But this self-made businessman would go on to earn an MBA from Harvard, joining an investment start-up and building a reputation as a business pioneer.

That same spirit now drives his push for real reform in our state, because across Illinois more than one million small businesses are led by creative, driven innovative people from every walk of life. And they need a governor who’s fighting for them.

Working for you and our future. Bruce Rauner.

Thoughts?

*** UPDATE 1 *** The ILGOP press release puts the video into context…

More than one million small businesses in Illinois are hurting from decades of tax-hikes, burdensome regulations, and corrupt politics in Springfield.

As Governor Rauner cuts the red tape and fights for change to help small businesses, Democratic candidates for Governor shockingly had nothing to say this small business week.

That’s right, J.B. Pritzker, Chris Kennedy, Daniel Biss and Ameya Pawar refused to even acknowledge small business week and the challenges that half of Illinois’ workforce faces.

But Governor Rauner is speaking out.

This week, Rauner toured small businesses across Illinois – pushing for real reform to help small businesses grow. See coverage of the Governor’s tour below.

And this morning, Rauner released a new digital ad highlighting the role small businesses play in Illinois, and how his business background and reform plan is paving the way to deliver change for struggling small businesses.

So, the governor officially declared “Small Business Week,” embarked on an official tour of the state to celebrate it, and then his state party whacks Democratic candidates for not following suit.

*** UPDATE 2 *** Ameya Pawar campaign…

Like Donald Trump, Bruce Rauner ran as a populist but governs as a plutocrat. Bruce Rauner claims he’s fighting for working families but under his leadership,130,000 low-income college students aren’t receiving tuition grants, 47,000 children aren’t receiving affordable child care that allows their parents to go to work, and 80,000 people have lost access to mental health services in Illinois.

Like Donald Trump, Bruce Rauner was born with a silver spoon in his mouth and this video is just another attempt to draw a veil over a life of privilege. Governor Rauner, you might have been “successful” in business, but spare us the theatre, the costume, and the phony accent. Do your job and pass a budget.

* Illinois Working Together Campaign Director Jake Lewis…

Today, Gov. Bruce Rauner visited the Small Business Development Center at Lincoln Land Community College. According to Crain’s Chicago, nearly a quarter of small business centers at Illinois colleges have closed because of the Rauner budget crisis. Colleges with shuttered small business centers include Governors State University, Joliet Junior College, Illinois State University, and Waubonsee Community College in Aurora.

When Governors State University was forced to close its Illinois Small Business Development Center and Illinois SBDC International Trade Center, school officials noted that “the centers have helped more than 6,000 clients create 4,650 new jobs with 190 new business starts and 150 business expansions.”

Other universities have made extensive cuts to their small business centers. Southern Illinois University’s Small Business Center, which was on the brink of closing due to the budget crisis, has cut its staff from 11 to two.

“It is the height of hypocrisy for Gov. Rauner to tout his failed political agenda at a college small business center while the Rauner budget crisis has shuttered similar centers across Illinois. By holding the budget hostage, Gov. Rauner has forced nearly a quarter of college small business centers to close and others to severely cut programming. To actually help small businesses in Illinois grow, Rauner should put people before politics, drop his failed political agenda, and pass a budget.”

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Thursday, May 4, 2017 - Posted by Rich Miller

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