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First big blow-up of the week as Durkin slams Madigan for “moving the goal posts”

Tuesday, Jun 27, 2017 - Posted by Rich Miller

* Remember when I warned you there would be blow-ups this week? The first big one happened today.

Senate President John Cullerton emerged from today’s leaders’ meeting saying it was a “very positive meeting. Very productive.” Click here for a transcript of his remarks.

Speaker Madigan told reporters later, “We had a very calm and reasonable meeting today. And everybody understands the gravity of the situation. I think (Republicans) understand that it’s their responsibility to persuade the governor.” Madigan said his chamber will start voting on his reform proposals tomorrow. “There is substantial compromise contained in the positions which will be advanced by the House tomorrow.”

* But a clearly agitated House Republican Leader Jim Durkin told reporters later that Madigan had once again “moved the goal posts.”

Madigan, Durkin claimed, added a fresh demand that Gov. Rauner sign the AT&T bill, which includes a mobile phone fee hike to subsidize 911 emergency call centers. Rauner has said he will veto the bill.

Durkin said that while Madigan expects him to convince the governor to accept reasonable demands he can’t ask the governor to get behind these things unless he can first convince his own members to support them.

Leader Durkin insisted that Madigan “show his cards” on a tax hike and produce a budget implementation bill to show exactly where he’s cutting. “Unless we see revenue, we cannot determine whether it’s a balanced budget,” he said.

And he characterized tomorrow’s floor votes on Democratic reform bills as just that: Democratic bills without bipartisan compromises. He has negotiators working on deals with Democrats - some of whom were meeting with each other during the leaders’ meeting - but none of the talks are yet finalized.

“It’s a two-way street,” Durkin said. “I can’t determine if they’re sincere or not.”

“We need to resolve this in a bipartisan manner by the end of the week,” Durkin said.

* Meanwhile, Rep. Greg Harris (D-Chicago) outlined the House Democrats’ budget plan. Here are a few dot points…

* The state is currently spending $39 billion. Rauner’s introduced budget was $37.316 billion. The House plan is $36.489 billion

* HDems wanted to take the “best ideas” from SDems and GOP plans and accommodate requests of the governor

* $1.850 billion for group health insurance. Full payment for next year.

* 5 percent reduction to operating lines for most agencies. Give directors lump-sum flexibility.

* HDem plan is a five percent cut to higher ed as opposed to a 10 percent cut in the GOP plan.

* Goal is to “live within the confines” of the revenue set by SB 9. But is not ready yet to release an actual revenue proposal.

* There are no new programs in the HDem budget…. But they’ve decided to supplement existing programs.

* Transferring money from new computer software projects, which totaled about $900 million.

* “We are showing a teeny, tiny surplus.”

* $7.394 billion for pensions. Full payment.

* Borrow money to pay off bill backlog, saving hundreds of millions in interest penalties to providers, but there’s no set plan yet

…Adding… Hmm…


…Adding More… I’ll have to watch her broadcast, but I was just told this by a Republican spokesperson…

No blow ups, just frank discussion.

..Adding More… From Durkin’s office…

Talk going around that Madigan may have ‘blown a gasket’ during leaders meeting: Leader Durkin says he did not witness it.

  46 Comments      


*** UPDATED x1 - Springfield budget director says it’s actually worse *** More on the House Dems’ property tax freeze

Tuesday, Jun 27, 2017 - Posted by Rich Miller

* One of the big objections the governor and some Republicans have to the new House Democratic property tax freeze proposal is how the HDems exempt pension payments from their four-year freeze.

The Illinois chapter of Americans For Prosperity use Springfield as an example for why this exemption could blow a big hole in a freeze…

Exempting pensions from a property tax freeze would fail to address a substantial contributing factor to our highest-in-the-nation property taxes. Take Springfield, for example. Here in our fair capital city pension payments consume 80% of all property taxes paid to the city.

The first image is from Springfield’s FY2016 CAFR [Comprehensive Annual Financial Report] (pg. 10) showing property tax revenue of $27.9M. The second image is a Sangamon County Clerk’s Office 2016 Levy and Rate Report showing the city’s property tax extensions for pensions totaled $22M, or 80% of all property taxes paid by Springfield residents to the city. Clearly exempting pensions from a freeze will have little effect on ever-increasing property taxes.

* You can click on the images for the original documents…


* So, what does this mean? Well, in Springfield, at least, including pension payments in a freeze could create a serious squeeze at the local level. While polls shows that people hate their property taxes, they’re probably not gonna love reduced services, either.

And there is a real problem with the unfunded liability levels for police and fire pensions. Those funds weren’t subjected to the same requirements as other municipal pension funds, so lots of local governments skimmed and skipped payments. Taxes will have to rise to pay for that and/or governments will have to cut.

* Meanwhile, here’s an AFP press release on the HDem proposal…

“This legislation is a step backwards if we are to deliver true property tax relief to Illinois homeowners and small businesses. Exemptions for debt service and unpaid pensions render meaningless any promises of taxpayer relief,” said AFP-IL Director Andrew Nelms. “Our property tax burden is driving families and jobs from our state. Illinoisans acknowledge that their sky-high property taxes are a problem and legislation to implement a meaningful freeze would be a welcome sign that our lawmakers understand the gravity of the problem. Illinois lawmakers should instead pass a long-term property tax freeze with no exceptions. Beleaguered Illinois homeowners and businesses deserve true tax relief.”

* And for the other side, here’s Phil Kadner

House Speaker Michael Madigan was the latest to join the chorus. Madigan over the weekend said he would agree to a property-tax freeze, if the governor were prepared to spend more state money on the Chicago Public Schools.

Madigan is largely responsible for creating this problem. He has never been a champion of spending on public education outside of Chicago. And his law firm has made a fortune on property-tax appeals cases.

This state is rotten to the core. Instead of addressing the real problem, the state budget and state debt, Rauner and Madigan want to appease taxpayers by freezing their property taxes, which will hurt public schools.

It’s a bait-and-switch tactic to make voters feel better about a state that can’t pay its bills. With the ship of state taking on water, elected officials want to throw your children overboard.

*** UPDATE ***  From Springfield’s budget director William McCarty…

Rich,

Our pension obligation issue is more pronounced than that 80% calculation would lead you to believe. The nonmajor governmental portion of property taxes collected are from SSAs and the increments from TIF districts. Absent SSAs and TIF, most of that money would go to other taxing districts, not Springfield.

It is likely that in the next fiscal year, police and fire pension obligations will exceed the city’s General Fund property tax revenue for the first time ever (i.e. 100%+) Even if we were to include the city’s true portion of the tax increment monies, I would venture to guess we would still be at or near the 100% level next year. In the past, we paid for the library, debt service and other items from property taxes. Those days are gone.

One other thing, the City of Springfield component rate of total property taxes has not been increased since 1984. Our taxes have increased due to development and increases in valuation, not a change in the rate.

  52 Comments      


Illinois “getting to a point where there’s a tangible body count. Of children”

Tuesday, Jun 27, 2017 - Posted by Rich Miller

* A friend of mine read the post yesterday about Family Focus laying off 100 employees and slashing its services. The group provides parenting classes for DCFS families, “drastically reducing the percentage of parents that reengage with the system.”

My friend said she couldn’t sleep last night and explained why via text message this morning…

I was playing out all the awful scenarios. DCFS is already WAY over capacity in terms of caseloads. Without Family Focus and other similar organizations, those numbers go up. That means more and more children who are being neglected and abused who are just waiting for a grown up to step in and save them will die. That’s not hyperbolic. That’s what actually happens.

Remember when Rauner said Quinn owned the consequences of his dysfunctional DCFS?

We’re talking about getting to a point where there’s a tangible body count. Of children.

* And it’s not just DCFS children. Here’s Mark Brown

Operators of group homes across Illinois say they are facing a staffing crisis because they can’t pay high enough wages to attract workers.

And they say they can’t pay workers more because for nearly 10 years the state has not increased the reimbursement rates it provides for the care of individuals residing in their homes.

As a result, 13 group homes across Illinois have closed in the past year while another 22 have consolidated, according to the Illinois Association of Rehabilitation Facilities.

That translate into fewer group home openings for the Lenza twins and thousands of other families in a state that was already regarded as woefully short of housing opportunities for disabled adults.

Illinois has more than 8,500 individuals with developmental disabilities on a waiting list for residential services. Even when approved for funding, they often have trouble finding a group home in their area that will accept them.

Go read the whole thing.

…Adding… Pritzker campaign…

Family Focus, an early childhood development center with seven locations across the Greater Chicagoland area, has announced a “mass layoff” amid the historically-long budget crisis manufactured by Bruce Rauner. A stunning 71% of their staff is being let go to end a “severe cash flow crisis” as they wait for $2.7 million in state payments. That amounts to another 100 jobs lost under Rauner’s failed leadership.

Meanwhile, Bruce Rauner spent his day yesterday visiting Iowa to attend a ribbon-cutting ceremony and is the happiest he’s been in 20 years.

“For two and a half years, Bruce Rauner has been utterly tone deaf, saying that ‘we’ll take short-term pain for big long-term gain.’ But these are people we’re talking about, not line items on a budget,” said JB Pritzker. “This is not short term. These are children. You can’t unhurt a child. You can’t redo childhood. The children and families who lose access to these services will be permanently affected. Is Rauner’s special interest agenda worth endangering the lives and well-being of the 17,000 families Family Focus serves?”

…Adding More… From the DGA…

Late last Friday, Governor Rauner’s administration announced the appointment of Beverly Walker to head the state’s troubled Department of Children and Family Services after the resignation of George Sheldon.

Governor Rauner has not, however, gone into any details about the scandals that engulfed DCFS and played a part in the Sheldon’s resignation. Nor has Rauner explained to the public what it was doing to correct the mistakes of the past and prevent future tragedies. In his only public comments on Sheldon’s resignation, Rauner said his administration was “investigating everything” pertaining to the ex-Director’s tenure, yet the public has seen nothing.

All he public knows is that Bruce Rauner did not ask for George Sheldon’s resignation and does not think his hiring was a mistake. That is worrisome for future reform.

“Governor Rauner cannot simply wish away the crisis at the Department of Children and Family Services,” said DGA Illinois Communications Director Sam Salustro. “Governors lead by showing the public they are actively working to address issues, but Bruce Rauner has failed the leadership test by hiding from accountability. The public deserves an acknowledgement from Governor Rauner that his administration failed to protect children and a full accounting of past mistakes.”

  40 Comments      


Protected: SUBSCRIBERS ONLY - Supplement to today’s edition

Tuesday, Jun 27, 2017 - Posted by Rich Miller

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Talks break down, Medicaid providers want half a billion more a month

Tuesday, Jun 27, 2017 - Posted by Rich Miller

* Reuters

A U.S. judge should order Illinois to pay Medicaid providers about $1 billion a month to ensure medical care continues for the three million recipients of the health program after talks with the state reached an impasse, according to a court filing on Monday.

The move would cause a huge problem for the cash-strapped state, which has accumulated a $15 billion bill backlog due to a budget stalemate between its Republican governor and Democrats who control the legislature. It could force Illinois to stop making full payments on other state-mandated or court-ordered spending such as pensions and payroll.

The filing in U.S. District Court by attorneys representing Medicaid recipients asked Judge Joan Lefkow to order the state to pay $500 million a month for four months to start reducing a $3.1 billion pile of unpaid bills owed to managed care organizations that turn pay doctors and others.

As long as Illinois remains without an enacted budget, the proposed order calls for the state to spend an additional $586 million a month to cover Medicaid-related bills incurred after June 30, 2017.

The proposed order noted that federal reimbursements for Medicaid would reduce Illinois’ outlay to $543 million a month.

Oh, this is so not good. As we’ve already discussed, Illinois will barely have enough cash to make its “core” payments in July and will fall $185 million short of having enough money in August for those payments.

A court hearing is scheduled for later today tomorrow at 9:45. (For some reason, I keep thinking today is Wednesday. Maybe it’s because we worked over the weekend.) Stay tuned.

The legal motion is here.

  8 Comments      


*** LIVE *** Special session coverage

Tuesday, Jun 27, 2017 - Posted by Rich Miller

* Watch June clock click down in real time with ScribbleLive


  2 Comments      


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