Capitol Fax.com - Your Illinois News Radar

Fact checking the “Chicago bailout” claims

Friday, Jul 28, 2017 - Posted by Rich Miller

* From House Republican Leader Jim Durkin’s post on how SB 1 is a “Chicago bailout”…

As written, SB 1 is a bailout for the decades of financial mismanagement at CPS. The bill directs millions of dollars to CPS and away from other deserving districts. Under SB 1, as compared to the Governor’s plan, the other 851 school districts in Illinois will receive less of the FY18 budget money while CPS receives credit for a $506 million historical pension payment. The CPS hold harmless includes both the $250 million block grant credit and $221 million for normal pension costs and retiree health care credit.

* Greg Hinz…

Part of that is misleading. For instance, in saying “will receive less,” Durkin implies some districts will get less aid than they get now, which is not true. One of the main points of the Democratic plan is a “hold harmless” for every district, spending truly new money on additional state aid without taking away any current money.

But Durkin is right about the $506 million—to a point.

Though Democrats in their comments have almost completely focused on the $221 million for CPS pensions, that only covers current, or “normal costs.” It doesn’t include another $506 million that city taxpayers are having to pony up this year to pay for old, unfunded, “legacy” pension costs. That’s money that doesn’t go to the classroom, and it reduces CPS’ available cash for classroom expenses.

Under the pending bill, as per Durkin’s note, some of that burden would begin to be shifted to the state. According to CPS, it would get up to $25 million or so in additional funds in fiscal 2018 because of that clause, a figure that chief bill sponsor Sen. Andy Manar, D-Bunker Hill, confirms.

Now, $25 million is real money. But it’s not the $506 million that by Durkin’s version CPS “would get credit for.”

That $25 million figure will rise with time. But CPS won’t get the full $506 million until and unless the new formula is fully funded statewide, something that would take $3.5 billion to $6 billion a year. That kind of money won’t be available in the strapped state budget for a decade, and possibly much longer.

More fact checking at the link.

* Also…

Want to know why it's fair to handle Chicago Pensions in #SB1? Watch this explanation from @mjacoby. @GovRauner #GetItDoneSB1 #Aug1 pic.twitter.com/KEK4y4QBiA

— Funding IL's Future (@FundILFuture) July 28, 2017

6 Comments

Judge clears the way for Cook County pop tax

Friday, Jul 28, 2017 - Posted by Rich Miller

* Not much else to do today, so here’s the Daily Herald…

Cook County Judge Daniel Kubasiak cleared the path Friday for Cook County’s penny-per-ounce soda tax to take effect.

Kubasiak initially sided with opponents of the tax because of hardships placed on consumers seeking refunds if the law was found to be unconstitutional. He granted a restraining order June 30 to prevent implementation of the tax.

He said Friday, however, that there’s nothing constitutionally that prevents implementation of the tax and the exercise of the county’s home rule powers. He said the tax “provides a person of ordinary intelligence a reasonable opportunity to understand what is required” and is “sufficiently detailed and specific to preclude arbitrary enforcement.” […]

County officials had projected the tax would raise about $200 million over the next 12 months, and expected $67.5 million in the remainder of the fiscal year to help cover costs. Cook County Board President Toni Preckwinkle ordered staff reductions and other budget cuts in the wake of the judge’s order, since the county was relying on revenue from the tax to cover those costs. The county laid off about 300 workers and the sheriff’s office laid off more than 110 recruits and trainees, according to officials.

* Sun-Times…

Last week, county lawyers argued Illinois law permits differential taxation, which refers to the fact that the tax applies to some beverages and not others. The tax, they also argued, is needed to address concerns surrounding public health.

“Drinks that are widely available pose a greater risk to public health,” said county attorney Kent Ray. “We don’t believe there can be any rebuttal to the position that ready-made beverages and custom-made beverages are different from a public health perspective.”

Attorneys representing the merchants argued there was no substantial difference in how sweetened beverages are classified, making the tax unfairly vague for consumers and distributors.

“The [differences between the] sweetened beverages that are taxed and the sweetened beverages that are not taxed are not real substantial differences,” David Ruskin, an attorney for the retailers, said.

* From the the Illinois Public Health Institute and the Illinois Alliance to Prevent Obesity…

We are gratified that the judge rejected the unfounded arguments for a delay in implementing this optional tax that will benefit our county’s fiscal health and our communities’ physical well-being. The sooner people stop drinking sweetened beverages, the sooner we expect to see a decline in the chronic diseases caused by too much sugar.

…Adding… IRMA…

The Illinois Retail Merchants Association, on behalf of Cook County retailers, has issued the following statement regarding the Circuit Court of Cook County’s decision to grant the county’s motion to dismiss the retailers’ lawsuit against the sweetened beverage tax.

“We are disappointed with today’s ruling. We are exploring all legal options,” said Rob Karr, president and CEO of IRMA.

…Adding More… Preckwinkle…

Statement from Cook County Board President Toni Preckwinkle on Judge Kubasiak’s Ruling Dismissing the Sweetened Beverage Tax Lawsuit

We applaud today’s decision by Judge Kubasiak granting our motion to dismiss the plaintiff’s lawsuit challenging the sweetened beverage tax. We believed all along that our ordinance was carefully drafted and met pertinent constitutional tests. The delay in implementing the tax caused by the merchants’ lawsuit forced us to put into motion cost-saving measures to cope with this revenue loss, which currently is at least $17 million. Until we are able to fully implement and collect revenues from this tax, we will continue to review our financial position and make adjustments accordingly. The ordinance was approved last November and all retailers and distributors should have been prepared to collect the tax on July 1. The tax should be collected at the consumer level beginning on Aug 2. We are especially grateful to our legal team and the attorneys from the State’s Attorney’s office for the hard work that led to this decision.

45 Comments

*** UPDATED x3 - Cullerton appoints - GOP urges quick negotiations - Durkin, Brady appoint negotiators *** Madigan responds to Rauner offer, appoints two members to negotiate

Friday, Jul 28, 2017 - Posted by Rich Miller

* Press release…

Speaker Michael J. Madigan issued the following statement Friday:

“First and foremost, it is the sincere belief of House Democrats that Governor Rauner should sign the education funding reform bill currently on his desk. Should he continue to create chaos and attempt to pit one student against another by vetoing reform, we expect to move forward with an override.

“In the spirit of ongoing cooperation, Representatives Will Davis and Barbara Flynn Currie will continue to work with legislative Republicans, as they have been doing for some time now.

“At this juncture, doing what’s right and providing stability and certainty to all Illinois schools is more important than any arbitrary deadline put forward by a governor who continues seeking chaos over compromise. House Democrats are committed to passing school funding reform and we will continue working across the aisle to ensure our schools are able to open on time, despite the governor’s political games.”

Background is here.

…Adding… As several commenters have pointed out, SB 1 is most definitely not “currently on [Rauner’s] desk.” If it was on his desk, we wouldn’t be waiting around right now.

*** UPDATE 1 *** Still waiting on Cullerton…

A statement from Senate Republican Leader-Designee Bill Brady and House Republican Leader Jim Durkin.

“At the Governor’s request, we have asked Sens. Jason Barickman and Dan McConchie and Reps. Avery Bourne and Bob Pritchard to reach out to their Democrat colleagues on a school funding reform plan that treats all school districts in Illinois fairly and equitably.
Our schools cannot wait any longer, we must act now.”

*** UPDATE 2 *** Press release…

REPUBLICAN NEGOTIATORS PUSH FOR QUICK NEGOTIATIONS

Statement from Sen. Jason Barickman, Sen. Dan McConchie, Rep. Avery Bourne and Rep. Bob Pritchard.

“This afternoon, at the request of the Governor and our respective legislative leaders, we have reached out to convene a meeting with Rep. Barbra Flynn Currie, Rep. Will Davis, Sen. Kimberly Lightford and Sen. Andy Manar as soon as possible on school funding reform. We have cleared our calendars in order to facilitate these discussions today and over the weekend. We are hopeful our Democrat colleagues realize the urgency as well.
With sincere bipartisan discussions, a solution can be negotiated and presented for review before the scheduled transmittal to the Governor of Senate Bill 1 on Monday. Absent that, the Governor has made it clear he will use his Amendatory Veto authority.

We need to act quickly to ensure funding will be released in time for schoolhouse doors to open next month.”

*** UPDATE 3 *** Press release…

Illinois Senate President John J. Cullerton has asked Assistant Majority Leader Kimberly A. Lightford and State Senator Andy Manar, the sponsor of Senate Bill 1, to join renewed talks regarding school funding reform.

“This is the kind of meeting we’ve been trying to arrange for weeks. Hopefully we can now learn what the governor has in mind with his threatened veto and see if there is a path forward, together,” Cullerton said.

Lightford is a Maywood Democrat.
Manar is a Bunker Hill Democrat.

The Senate President has been trying to meet with the governor about his threatened veto prior to sending him a historic school funding overhaul on Monday, July 31. In addition to explaining the legislation, the Senate President wants to make sure the governor understands what his threatened veto would mean.

Rauner has said he would file an amendatory veto to rewrite Senate Bill 1.

An amendatory veto is a veto. It rejects the proposal but offers specific legislative changes that are supposed to be consistent with the initial theme and scope of the proposal. The constitution and court cases limit the governor’s ability to make changes.

Once that veto is filed with the Senate, the Senate has 15 calendar days to act or else the entire proposal is declared dead. The Senate’s options are to vote to accept the changes or try to override and enact the plan as originally written.

Overriding the governor’s veto requires support from 3/5ths of the members in each chamber. That’s 36 votes in the Senate and 71 votes in the House.

But so too does accepting any changes. That’s because those changes amount to new laws with immediate effective dates since it would be passed after May 31. The Illinois Constitution sets a May 31 deadline for action and anything after requires more votes to become law.

Again, if efforts to override the governor or accept his alternations fail, the entire school funding overhaul fails and lawmakers would need to start over with new legislation.

52 Comments

*** UPDATED x1 - Kennedy responds *** A “revolution” against an “evil” Chicago “bailout”?

Friday, Jul 28, 2017 - Posted by Rich Miller

* NBC 5…

Day two of the Special Session in Springfield has Gov. Bruce Rauner Rauner meeting with his Republican caucus Thursday urging them to stick together in opposing the school funding bill.

Senate Bill One is not yet on Rauner’s desk, but, with schools opening in the next few weeks, many districts are anxiously awaiting the state’s financial aid.

So what happened at Thursday’s closed door caucus meeting?

Sources tell NBC 5 Rauner said a “revolution” is coming.

He also told Republicans SB1 is evil and a Chicago bailout.

I’ve talked with a half dozen or so Republicans I trust this morning who were at the meeting (none of whom are Rauner rah-rah types) and not one of them can remember hearing the word “evil.” One said he might have used it to describe what Madigan and Cullerton were doing by holding on to the bill, but he couldn’t be sure. That doesn’t mean the report is wrong, just that I can’t confirm it.

The governor regularly calls SB 1 a Chicago bailout, so that’s assured. And “revolution” is a term often used by Republican tea party types, so I can definitely believe he said it, particularly in relation to Speaker Madigan.

…Adding… From a Senate GOP source…

He said “evil” in describing them holding the bill and putting schools at risk of not opening, not the bill itself.

*** UPDATE *** Chris Kennedy…

The only revolution that needs to happen is for the people of Illinois to rise up in the next election and remove Bruce Rauner from office. His irresponsible, neglectful, self-serving leadership is holding back our state. That he would use children as political pawns and threaten not to open public schools in a few weeks is a new low in the history of Illinois. We need fundamental change to fix our public schools and provide all children with a quality education that prepares them for college, career and life. It is far past time that our state elects leaders in Springfield who will commit themselves to serving families throughout the state.

42 Comments

*** UPDATED x1 *** Rauner says he’s asked “key” Republican legislators to negotiate on SB 1

Friday, Jul 28, 2017 - Posted by Rich Miller

* Press release…

“Speaker Madigan and President Cullerton continue to delay putting the education funding legislation on my desk. Until then, I am unable to change the legislation so that it’s fair and equitable for all schoolchildren in Illinois and the taxpayers who foot the bill.

“Our schools cannot wait.

“If the Democrat majority won’t send me the bill, I’m hopeful they’re willing to negotiate with their colleagues to achieve the same result by July 31.

“I have asked key Republican lawmakers to reach out to their Democrat colleagues to negotiate in good faith so an alternative can be presented by July 31.

“If a reasonable compromise that is in the best interest of our children isn’t reached, I will move forward with my amendatory veto on Monday as planned.”

Perhaps the big brains figured out that angrily referring to an offer to negotiate as “outrageous” probably wasn’t the greatest PR move ever?

And nice job throwing Sen. Barickman under the bus yesterday.

…Adding… Oof…

Until today, this was @GovRauner’s opinion about school funding negotiations.

Outrageous.#RIPVine pic.twitter.com/qdg9tnx2Uj

— IL Working Together (@IllinoisWorking) July 28, 2017

*** UPDATE *** Pritzker campaign…

Two days ago, Bruce Rauner was asked if he was willing to meet and negotiate Senate Bill 1, and his response was just as baffling as you’d expect: “Don’t you see how outrageous that is?” He then one upped that comment by telling Republican legislators yesterday that a “revolution” is coming.

However, the failed governor changed gears and today is suddenly calling on “key” legislators to negotiate the school funding bill for him. It appears that neither Rauner nor his new extremist staff will take part in those negotiations. All the while, schools across the state face the possibility of not opening this fall.

“While Bruce Rauner fantasizes about his ‘revolution,’ Illinois parents and children want to know that their schools will open in a few weeks,” said Pritzker campaign spokeswoman Jordan Abudayyeh. “Instead of signing SB 1, all we’re getting from Rauner is a staunch refusal to negotiate and a renewed promise to veto school funding. Don’t you see how outrageous that is?”