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*** LIVE COVERAGE *** Quarterly filings

Monday, Jul 17, 2017 - Posted by Rich Miller

* Follow our buddy Scott Kennedy’s invaluable Twitter feed with ScribbleLive


  5 Comments      


CPS says Rauner can’t legally AV pension provisions of SB1

Monday, Jul 17, 2017 - Posted by Rich Miller

* From the Chicago Public Schools…

Rich:

Here is some information on why Governor Rauner can’t legally issue an amendatory veto of SB1.

    · Under the Constitution, Governor’s power to issue amendatory veto is limited to making “specific recommendation for change.”

    · The Supreme Court has previously stated that an amendatory veto cannot either change the “fundamental purpose/intent of the legislation” or make “substantial or expansive” changes to it.

    · The purpose and intent of SB1 is to establish a new and more equitable statewide school funding formula – a new formula that holds all school districts harmless.

    · One important and essential element of this new funding formula is to remedy the long-standing unfairness in having the Chicago Public Schools be the only school district in Illinois that is solely responsible for paying all of its required pension contribution from local property taxes—as opposed to all other school districts, whose pension contributions are funded from general state revenues.

    · In the coming year, the State of Illinois is projected to spend an additional $600 million on downstate and suburban teacher pensions, for a total of $4.6 billion.

    · SB1 specifically addresses this inequity by including in the new school funding formula annual state funding to pay for Chicago’s required contribution for its teachers’ pensions. Further to this point, the floor debates on SB1 are clear that a fundamental intent of the legislation is to make teacher pension funding more equitable throughout the State.

    · By using an amendatory veto to remove funding of Chicago teacher pensions from SB1, the Governor is changing a fundamental purpose of the legislation – and he would be making a substantial change to the legislation.

    · As a result, this amendatory veto exceeds the power of the Governor under the State Constitution.

Your own thoughts?

…Adding… I’m not sure if CPS realizes this, but their argument is essentially that an AV would be ruled out of compliance by the Senate or the House. If such a ruling is made, however, the bill would die and the GA would have to start all over again.

  35 Comments      


*** UPDATED x4 - Pritzker responds - Cullerton spokesman weighs in - Rauner statement - Manar responds *** Rauner demands SB 1 be sent to him so he can AV it

Monday, Jul 17, 2017 - Posted by Rich Miller

* Here we go…


* Perhaps unsurprisingly, this tracks closely with a recent Chicago Tribune editorial entitled “Will Illinois schools open this fall? Stop stalling, lawmakers”

Enough stalling, legislators. Cullerton should send the bill to Rauner. And the legislature should prepare to return to Springfield, soon, to address his possible veto. […]

What we have recommended, and what we hope Rauner will consider, is vetoing one portion of the bill that gives CPS pension relief. Yes, the state already pays for pensions of every other district statewide, and it’s not unreasonable that CPS should get help too. But not until lawmakers go a step further and curb pension costs for taxpayers statewide: Pass the separate Cullerton pension bill that is sitting in the House Rules Committee, or a strong version of it. The bill would give employees in the pension systems an option to switch up their plans. Create a 401(k)-style plan for new workers. End pensions for legislators. The more reforms, the better.

Do that quickly, and also give CPS its pension relief. That was the deal struck last year between Rauner and Democratic leaders. Stick to it.

The only difference is, the Tribune maintains the bill isn’t a CPS “bailout.”

*** UPDATE 1 ***  From an earlier AP story

Illinois gives governors constitutional authority to use an amendatory veto to make “specific recommendations for change.” But it’s unclear whether lawmakers left language specific enough to alter.

I’ll try to have more on that angle in a bit. Meanwhile, here’s react from Sen. Andy Manar…

“Gov. Rauner should be building bridges with lawmakers so that he can become the governor who finally signs education funding reform into law. But instead of seizing the chance to cement his legacy as a reformer, he’s making demands in front of TV cameras.

“Gov. Rauner promised to overhaul the worst school funding formula in the country to the benefit of all Illinois schoolchildren. He promised to be the education governor. Unfortunately, he is more interested in spouting divisive soundbites than in solving the real problems that grip Illinois.

“Given his repeated pledges to veto this historic and vitally important legislation – despite his reported support of 90 percent of what’s in the bill – of course we are doing everything we can to protect it from his poor judgement.

“Gov. Rauner has never contacted me directly regarding his alleged problems with Senate Bill 1. It is clear to me today that he intends to use the children of Illinois as leverage for his political agenda when he could be working out a compromise to accomplish a much-needed and long-awaited reform. I am saddened and discouraged by his display today.”

*** UPDATE 2 *** Press release…

Today, Governor Bruce Rauner called on members of the Illinois Senate to send him Senate Bill 1, the education funding bill. Democrats in the Illinois Senate are using a procedural quirk to keep the bill from advancing. If the bill is not sent to Governor Rauner’s desk soon, public schools throughout the state may not open in time for the new school year.

In squatting on this bill, Democrats are taking away critical resources from school districts across the state. When the bill does reach his desk, Governor Rauner plans to issue an amendatory veto that will result in higher state funding for almost every school district in Illinois. The bill includes a bailout of Chicago’s broken teacher pension system, so Governor Rauner plans to amend SB 1 to remove this from the bill and instead provide adequate and equitable funding for students in Illinois no matter their zip code.

The governor’s amendatory veto also will adjust the bill so that it is more closely aligned with the to the original ideals proposed by the governor’s School Funding Reform Commission – which has bipartisan support. These reforms include mandating that the majority of all money in SB 1 will go to statewide school districts serving a majority of students from families with low income. This marks a historic change that will, over time, fix education inequity in Illinois.

“We have a chance to make history and adopt a new school funding plan that, for the first time, ensures all school districts in Illinois are equitably and adequately funded. Unfortunately, Democrats want to turn this historic opportunity into a bailout for the CPS pension system,” said Governor Rauner. “The point of this school reform bill is to help low income students across the state, including those in Chicago, get the education they deserve – not to bailout CPS’s mismanaged teacher pension system.”

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.

“The General Assembly under Speaker Madigan have failed to adequately or equitably fund our schools for decades. It has hurt generations of Illinois children who live in low income communities,” said Governor Rauner. “It’s not right to give CPS more than its equitable share at the expense of other struggling school districts. That’s not reform. It is the same old rigged politics that created this disgraceful system we are trying to fix. ”

A new webpage launched by the governor shows how much more money each school district will receive after the governor issues his amendatory veto: https://www.illinois.gov/gov/SitePages/SchoolDistrictFunding.aspx

Video footage from today’s tour will be available here.

*** UPDATE 3 *** Senate President Cullerton’s spokesman…

There are ongoing discussions about when to send it to the governor’s desk.

*** UPDATE 4 *** Pritzker campaign…

“After holding this state hostage to force his special interest agenda on Illinois for the last two and a half years, Bruce Rauner has reached a new low as he tries to pit school-children and communities against each other to further divide this state,” said JB Pritzker. “Instead of press stunts and shortsighted attacks, Bruce Rauner should stop treating children and families like political pawns and sign SB1.

“Rauner agrees with 90 percent of the bill, but still refuses to do what’s right for our students. It’s another broken promise from a governor who talks about reform, but can’t deliver and has now surrounded himself with a team of radicals who will do further damage to this state. Students in Illinois deserve a quality education and Rauner won’t let that happen because it’s not politically expedient for him.”

  81 Comments      


Another federal court filing that could cost the state big bucks

Monday, Jul 17, 2017 - Posted by Rich Miller

* Press release…

Attorneys for Illinois residents with developmental disabilities have pleaded with the federal court to force the State to raise rates to service providers, contending that the existence of the state’s group homes is “precarious” under current funding levels.

The argument came Friday in a brief (attached) in support of a motion the lawyers filed in April, asking U.S. District Judge Sharon Johnson Coleman to enforce the Ligas Consent Decree. The court-appointed monitor has declared the State out of compliance with the decree for the past two years, and the attorneys said in May that the service system “is on the brink of disaster.”

The attorneys rejected the State’s contention that the court lacks authority to order a rate increase, citing a decision by Judge Joan Lefkow June 30 to enforce another consent decree by ordering the State to pay $586 million a month in Medicaid payments to physicians and $2 billion worth of back bills. They said Lefkow’s order “requires funding to enforce the provisions of the consent decree, as (we) have requested here.”

The brief was filed by Equip for Equality, an advocacy group, and the ACLU, representing the Ligas plaintiffs, and two lawyers representing residents of intermediate care facilities.

Illinois is the wealthiest of the Midwest states, the attorneys said, “yet only contributes a third of the average Midwest per-person rate for developmental disability services. The lower overall funding of these services in Illinois—at rates substantially less that the actual operation costs—places Illinois’ (group homes) in a precarious existence.”

The plaintiffs only seek “what was promised to them” by the State, the attorneys said. They said the State “ignores the fact that plaintiffs bargained for—and, more importantly, obtained—an express commitment that class members would not simply be moved out of institutions, but would receive the person-centered services necessary for true community integration. . . . The State cannot enter into a consent decree agreeing to provide certain services and then excuse itself from compliance by claiming that providing the very services it agreed to would be too expensive.”

The new state budget provides for a 75-cent-an-hour wage increase for disability workers, far below what the lawyers say is needed.

Disability consultant Ed McManus said the State is clearly shirking its duty to Illinois’ residents with developmental disabilities. McManus operates a Wilmette-based consulting firm representing 30 provider agencies around the state.

“Equip for Equality sued the State in 2005 for its failure to provide adequate services, and the State settled the litigation and avoided trial by agreeing to the consent decree,” he said. “Now it’s claiming all it had to do was provide services to more people, with no regard for quality. That’s preposterous! Providers are experiencing an unprecedented staff shortage due to low wages, and the quality of services has plummeted as a result. Hopefully, Judge Coleman will recognize this and not let the State off the hook.”

The filing is here.

…Adding… Kerry Lester has more on this general topic today. Click here.

  10 Comments      


*** LIVE COVERAGE *** “Radical Candor”

Monday, Jul 17, 2017 - Posted by Rich Miller

* It doesn’t take a genius to figure out what group of people are likely behind the new RadicalCandorIL Twitter account. I followed it closely all weekend and since the resignations are continuing, I thought you might want a ScribbleLive feed


  31 Comments      


*** UPDATED x9 - More on the “body man” - New “body man” gone - 21 gone - Stefanski leaves - Lydon leaves - Davidson, Munson leave - Haevers leaves - Rodriguez leaves *** Mahoney is latest top Rauner administration official to resign

Monday, Jul 17, 2017 - Posted by Rich Miller

* Mike Mahoney, the governor’s Deputy Chief of Staff for Policy and Legislative Affairs, resigned this morning. I’m told the parting was amicable.

* Here’s Sneed from last week

The big question: Will Mike Mahoney, the governor’s policy chief, be told to leave?

“Mike was the guy who kept the troops together, but the expectation is that there is a lot more to come in the cleaning house department,” a Rauner source said.”

It almost goes without saying that this is yet another big loss for the administration. Mahoney was a key player and both House Republican Leader Jim Durkin and Senate GOP Leader Bill Brady reportedly asked the governor to do what he could to keep Mahoney on the payroll. In the end, however, he really had no choice but to leave.

I’m told that more resignations are expected as early as today, so stay tuned.

*** UPDATE 1 ***  Sources close to the governor’s office confirm that the governor’s Deputy Chief of Staff for Public Engagement Phil Rodriguez has also resigned. Rodriguez worked for Comptrollers Topinka and Munger and ran both of their campaigns. He’s moving over to the Tollway.

*** UPDATE 2 *** The govenor’s body man, Kyle Haevers, has been told his services were no longer needed and was asked to find an agency to move to. His replacement is Ben Tracy, who has already begun traveling with the governor. Kyle was a loyal Raunerite and has been part of Rauner World since 2014 and helped on the Rep. McAuliffe race last fall.

*** UPDATE 3 *** Digital Director Bridget Davidson and Deputy Press Secretary Olivia Munson also resigned today. Davidson came on board last October from a TV station in Milwaukee. I’m told that under Davidson’s direction “Facebook followers grew organically (no paid or sponsored posts) by 300 percent” in seven months.

*** UPDATE 4 *** Kathy Lydon, who runs the state’s Washington, DC office, has left. I’m told her deputy left as well. Lydon previously worked for Judy Biggert and goes all the way back to the Chuck Percy days.

*** UPDATE 5 *** Bob Stefanski, Director of House and Senate Operations, has departed. The House and Senate Republican leaders both wanted the governor to keep him around.

*** UPDATE 6 *** Whew…


*** UPDATE 7 *** Anyone paying half attention to the RadicalCandorIL Twitter account today could’ve guessed this was coming…


*** UPDATE 8 *** Like I said, anyone following “Radical Candorwould already know this

Illinois GOP Gov. Bruce Rauner’s new “body man” — the government staffer who spends long days with governor — has a history of writing racially-charged, homophobic and sexually explicit tweets.

“I’d f— her teeth straight,” said one. “To the Indian people in the library: SHUT THE F— UP!,” said another.

The Twitter account belongs to Ben Tracy, who was just hired as Rauner’s new body man, the person who travels with the governor, handles scheduling and other duties.

After another social media account started flagging the tweets, Tracy’s account was put into a private, protected mode.

*** UPDATE 9 *** Sun-Times confirmed

The administration on Monday confirmed Tracy’s termination.

“These tweets are unacceptable. The individual in question is no longer an employee of our Administration,” Rauner’s Director of Communications Laurel Patrick said in an email.

  116 Comments      


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