* Heidi Dalenberg, Director of the Institutional Reform Project, ACLU of Illinois…
“A cursory examination of the capacity of DCFS reveals that the agency does not have adequate resources to fulfill their core mission - assuring the safety and permanency for youth in their care. Consider the reality: DCFS does not have enough workers to investigate allegations of abuse and neglect, does not have enough caseworkers to help children return to their families or find a permanent home with other loving adults, does not have enough community-based services to help children with significant mental or behavioral health problems, and does not have enough doctors or enough residential facilities to safely care for those same youth.
None of these problems are addressed in the budget adopted for the new fiscal year. Instead, the budget appears to believe that DCFS is about to enjoy a series of miracles, starting with a reversal of the years-long trend of adding thousands more children to the total youth in DCFS care. We would love to live in the world where miracles are possible. The children in DCFS care live in the real world. Every day, DCFS underserves children to such a gross degree that its mistreatment exceeds the ‘offenses’ that DCFS labeled as abuse or neglect when taking the children from their families.
DCFS cannot fulfill its obligation to the children in its care with the budget it requested. We can only hope that if the miracles DCFS is counting on do not materialize, the Department comes to the Legislature for supplemental funding.”
* I asked for some specifics…
Trend of system growth:
According to DCFS’ prepared numbers, the system has been growing as follows, measured at the end of the FY:
FY 2018 closed with 17,463 youth in care
FY 2019 closed with 18,568
FY 2020 closed with 21,099
FY 2021 ESTIMATE is that we will be at 23,238
FY 2022 PROJECTION is 23,544 – essentially flat growth, with no significant change in DCFS practices in place.
Inadequate care of youth in DCFS custody – most extreme example is youth with significant mental / behavioral health needs who are not getting the treatment they need. We have approximately 10 youth per month, since the YouthCare MCO rollout, who have had what we consider “unaddressed” mental health crises. What that looks like is that a call is made for a provider to come out and do an emergency assessment of a youth whose behavior is out of control. The youth either needs stabilization services – and does not get them – or needs a psych hospitalization – and does not get it. The result is that the youth is taken to a hospital emergency room and may sit there for 2 days, 3 days, 5 days, or even longer. The youth eventually gets sent home from the emergency room without receiving appropriate treatment, and has been re-traumatized by this latest experience.
Inadequate placement capacity - Illinois has made little, if any, progress in building community-based supports for youth so that they can be “placed” in family settings rather than in residential facilities. But at the same time, the residential facilities are bleeding staff – they are unable to recruit and retain. By the end of the year we expect that more than 70 congregate care beds will have closed, in large part because providers cannot responsibly keep them open due to staff shortages. Two agencies are shutting down their foster care programs. Provider capacity for Intact family services is shrinking as well in some areas of the state. I believe ICOY has issued a statement about the newly passed budget that contains these figures and has more detail.
What does that look like for children? When a youth is entering care or disrupting from an existing placement, and has significant behavioral or mental health issues, Illinois has nowhere for the child to go. The Department is resorting to use of “unoccupied” bed space at residential facilities – where there is no program in place for the child, no education, no counseling, and no services during the child’s stay – and has one-on-one supervision of the child that is provided by the child’s caseworker. This can go on for weeks.
Inadequate staff of workers to investigate abuse and neglect allegations.
The most recent report we have received regarding the personnel available to conduct investigations shows that the Department is more than 100 workers short of its estimated headcount need. The pattern of vacancies is not consistent across the state – some areas are sufficiently staffed, but other offices are facing critical shortages that push the workers’ caseloads far above BH limits. The worst of the offices are understaffed by 40% or more. DCFS is putting in place emergency measures to support the hardest hit offices, but the shortage of workers continues to be a serious and dangerous problem.
*** UPDATE 1 *** Governor’s office…
Since taking office, Governor Pritzker has increased DCFS’ budget by $340 million. Most of the year over year budget increases funded increased staffing, caseload growth, rate adjustments and IT improvements for the agency’s case management system. DCFS is also making tremendous strides in hiring staff after prior administrations oversaw the hollowing out of the agency.
*** UPDATE 2 *** Andrea Durbin at the Illinois Collaboration on Youth…
Hi Rich,
Thanks for sharing the information from the ACLU. It is true that current staffing shortages within the child welfare system have created potentially dangerous conditions for the children and youth in the system. One aspect of the child welfare system that is frequently misunderstood is that it is not DCFS alone. Illinois has given full case management responsibility for approximately 85% of children in care to community-based organizations, as well as the case management responsibility for most of the families served through intact family services. While DCFS itself has been making strides in addressing the workforce challenges in the public sector, the workforce shortages plaguing community-based organizations have been persistent and dramatic, placing children at risk.
For example, providers are reporting foster care caseload ratios at 21 or 22:1, which is significantly higher than the 15:1 maximum imposed by the Federal consent decree in BH v Smith. These ratios persist even when supervisors and other eligible staff, including program leadership, are forced to carry direct service cases to ensure the safety of children in their care.
Residential treatment programs report staffing at between 63%-68% of capacity, resulting in program closures and long waiting lists at a time when children are living in hospital emergency rooms for days at a time and stuck in psychiatric hospitals for months beyond medical necessity due to a lack of adequate care options for them.
Over the past five years the number of children and families in care has steadily grown. At a time when we should be expanding capacity within the child welfare system, instead we are seeing system contraction. A recent survey of child welfare providers revealed that:
57% of respondents had voluntarily put their agencies on intake hold during the past 18 months
More than 70 congregate care beds have been closed or are closing by the end of this year, on top of the more than 500 beds that were closed during the past 5 years
At least two agencies are shutting down their foster care programs – one in the Chicago/Cook County region and another in six counties in Central Illinois. Some intact family services are also being closed in those same counties.
This workforce crisis is built into the contracts that community-based providers get from DCFS. For example, community-based contracts are structured around paying an intact family caseworker $32,000/year, or just slightly above the $15/hr minimum wage. That same position advertised on the state’s CMS website starts above $55,000/year. Providers are forced to offer wages comparable to fast food and retail jobs for positions that require bachelor’s degrees in human services and special trainings and certifications. In this tight labor market, it is no surprise that they struggle to recruit qualified staff for these essential jobs.
This is not a problem that has happened overnight and it is not going to be fixed overnight. We were heartened to see the letter from Acting Director Smith today assuring providers that there will be a 3% rate increase in FY22 to community-based contracts as well as the establishment of a rate methodology workgroup to address long-term sustainability of these essential services. We look forward to working in partnership with Acting Director Smith and the Governor’s office to address these urgent concerns. The children and youth in our care are counting on us.
Thanks,
Andi
A letter from Director Smith is here.
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Reform groups slam ethics bill
Wednesday, Jun 2, 2021 - Posted by Rich Miller
* Let’s start with a proponent…
On May 31, the Senate and House approved a package of reforms that address some of Illinois’ most glaring ethical problems. State Senator John Curran (R-Downers Grove), a former Cook County Prosecutor, was the lead Senate Republican negotiator of the bill.
“With every new indictment or arrest of an elected official, the people of Illinois lose more faith in their government,” said Sen. Curran. “Through give-and-take bipartisan negotiations, today we took a large step forward in delivering real ethics reform. Through SB 539, we will hold elected officials to a higher ethical standard and we will empower our Legislative Inspector General (LIG) to independently investigate allegations of political corruption without first having to obtain permission to investigate from a panel of sitting lawmakers. This new level of autonomy is a crucial element of the reforms we passed today.”
SB 539 includes the following provisions:
· Allows the Legislative Inspector General to initiate a political corruption investigation without approval from the Legislative Ethics Commission;
· Reforms and strengthens the statement of economic interest disclosures by adding new disclosure requirements for legislators and their spouses, including disclosure of debts; and
· Prohibits legislators from leaving office and lobbying the General Assembly during the term they were sworn into for six months;
· Requires consultants to register and for lobbyists to disclose any contractual relationship with a consultant for the purpose of influencing the legislature;
· Prohibits fundraisers across Illinois on session days or the day before or after a session day;
“Through negotiations, Republican ideas were brought to the table, resulting in a more robust ethics package,” added Sen. Curran. “While there are still several components we would have liked to have seen in the final bill, the reforms we are sending to the Governor have teeth, and is a positive first step in restoring the public’s trust in state government.”
Sen. Curran said additional improvements in a future bill should include providing the LIG with subpoena powers, a provision that allows the Illinois Attorney General the ability to use a statewide grand jury to investigate, indict, and prosecute public corruption crimes, and an even stronger legislator-to-lobbyist revolving door.
“We must continue to build upon these bipartisan negotiations, in which we respected each other’s priorities, and continue to work to create a more ethical government that is free of corruption and which truly works for the people of Illinois,” Sen. Curran said. “While there is no denying there is a lot more we can do on ethics, I am pleased to know our spring session did not end without sending meaningful ethics reforms to the Governor.”
The two things I wanted most out of an ethics bill were the Monday fundraising ban and the consultant registration.
* On to the opposition. Reform for Illinois…
Yesterday, the General Assembly passed SB539, a long-awaited ethics omnibus bill. After endless scandals and indictments, we had hoped for comprehensive reform that would help restore Illinoisans’ confidence in their government. While SB539 takes some steps in the right direction, we are disappointed in the bill’s failure to make the hard choices necessary to uproot the culture of corruption that has harmed Illinoisans for years and earned our state government the lowest trust rating in the country.
Reform for Illinois has stood with its fellow good-government organizations—the Better Government Association, CHANGE Illinois, and Common Cause Illinois—and identified the ethics updates our state most sorely needs. The new bill makes some positive changes, including banning some legislator-lobbyists and requiring disclosure of lobbying consultants, which RFI proposed last year.
But SB539 falls short in key areas. For example, the bill:
—Bans former lawmakers from lobbying for just six months, a “bottom of the barrel” waiting period. A revolving door ban of just half a year will put Illinois behind 36 states that have a cooling-off period of at least one year, and well below the recommended prohibition of two years implemented in a dozen states. And there would be no waiting period at all for ex-legislators lobbying a new General Assembly–they could leave on the last day of session and be back on the first day of the next one to lobby their former colleagues.
—Fails to give the Legislative Inspector General’s office the tools it needs to exercise truly independent ethics oversight over lawmakers. SB539 takes a step in the right direction by enabling the Legislative Inspector General to launch investigations without the approval of the Legislative Ethics Commission.
But the Inspector General will still need to ask permission from the Commission–a body made up entirely of current and former legislators–to issue subpoenas or publish reports finding wrongdoing. This gives lawmakers ample opportunity to hamper or suppress investigations into their colleagues.
This bill will do nothing to solve the problem former Inspector General Julie Porter identified when she claimed legislators quashed her report finding “serious wrongdoing by a sitting legislator.”
SB539 also adds new and unnecessary limits on the Inspector General’s jurisdiction, and misses an opportunity to improve independence and transparency by requiring the appointment of members of the public to the Ethics Commission.
In short, we still don’t have truly independent oversight of the legislature–the fox is still guarding the henhouse.
—Aims to prohibit lobbying by elected officials but creates a loophole. As we learned from the Luis Arroyo case, sitting lawmakers shouldn’t be allowed to be lobbyists. Under the new law, members of the General Assembly will be prohibited from lobbying state or local governments, but only on behalf of entities registered to lobby the General Assembly. That opens the possibility that legislators may still be able to take some lobbying jobs that could conflict with their obligations to the public.
—Fails to provide essential information about legislators’ possible conflicts of interest. While the bill makes some improvements on the old economic disclosure forms (called “none sheets” for their lack of information), other states require lawmakers to disclose much more information about the value and sources of income that may cause conflicts with their legislative work. For example, an official who received a $100,000 consulting fee from ComEd could have a much more serious conflict than one who received $7,600, but their answers on the new forms would be the same. We can do better.
Lawmakers say this bill is just the beginning for ethics reform, and we hope to take them at their word. But how much longer will Illinoisans have to wait? After so many years of corruption and scandal, they deserve real change now.
* Change Illinois…
After years of ethical lapses resulting in lawmaker and political insider indictment-after-indictment, elected officials yet again fell short on delivering meaningful reforms to Illinoisans that would begin to restore their trust in government.
New House Speaker Chris Welch repeatedly promised a new day in Springfield and a meaningful ethics package and Gov. J.B. Pritzker also had called for reforms, but what was approved this session is a far cry from what’s needed and only serves to diminish voters’ hopes for stronger laws to guide officials’ actions.
After nearly two years of talk and work on ethics reforms, we’ve seen a do-nothing commission that did not even bother to publish a final report and an attempt to rush through ethics proposals in the middle of the night in a previous session. CHANGE Illinois, the Better Government Association, Common Cause Illinois and Reform Illinois have been unified in saying we need this serious package of reforms as a starting point:
Banning state lawmakers from lobbying local governments
Implementing a two-year revolving-door ban preventing former lawmakers from immediately lobbying colleagues
Strengthening the conflict of interest disclosure and recusal requirements
Fully empowering the Legislative Inspector General to operate independently
The ethics bill that will be sent to Pritzker falls short on all four issues. Only lawmakers lobbying local governments was addressed in a substantial way. Overall, this package is yet another example of the weak approaches we’ve seen in previous years that have done nothing to curb the continued cycle of corruption scandals that Illinois is infamous for across the nation. It reminds us of the campaign finance reform approved years ago after former Gov. Rod Blagojevich’s impeachment that was supposed to have been a “first step” toward more substantive improvements. Those subsequent steps never materialized and we cannot allow that to happen again with this effort.
The revolving-door ban on lawmakers becoming lobbyists included in the package falls severely short. The six-month ban is the lowest in the nation, putting Illinois at the bottom of the list.
The proposal does include needed improvements to annual financial disclosures officials must file. However, it lacks teeth without a recusal requirement. Any lawmaker still can have a conflict of interest and continue to vote in favor or against legislation that affects them personally without any repercussions.
The bare minimum also was done to give the Legislative Inspector General’s (LIG) office more independence to truly act as a watchdog. The proposal only allows for the LIG to start investigations without lawmaker approval for incidents that happened within the previous year. And it still requires the LIG to seek permission from the very elected officials it is supposed to investigate to collect necessary information for its probes. The LIG also still must seek lawmaker approval to publish reports when the office finds wrongdoing has occurred, yet another example of lawmakers trying to protect themselves.
Given the state we’re in, this is not nearly enough. This ethics bill must not be the last attempt to curb bad actors from further damaging the people’s trust in our government. As federal prosecutors continue to probe corruption in state government and new indictments come to light, Illinoisans must renew their call for stronger reforms. The people know we need stronger improvements that truly will signal lawmakers are serious about charting a new path forward, rather than relying on the same old playbook from the past that allows too many bad actors to tarnish the reputation of all of Illinois’ elected officeholders.
* BGA…
The Better Government Association stands with Reform for Illinois, Common Cause Illinois and CHANGE Illinois in voicing deep disappointment with the feeble ethics bill passed May 31 by the General Assembly.
The bill, which cleared both houses and soon will be on its way to Gov. J.B. Pritzker, contains some incremental improvements that are long overdue. But this legislation has been 18 months in the making. It’s fair to ask: Is that all?
The work of the Joint Commission on Ethics and Lobbying Reform highlighted many deficiencies in the state’s ethics laws. This legislation barely scratches the surface.
This follows an unfortunate historic pattern: Elected officials promised to clean up Illinois government in response to the licenses-for-bribes scandal that sent Gov. George Ryan to prison, and again after the impeachment and conviction of Gov. Rod Blagojevich. Many of the reforms that didn’t happen then didn’t happen this time, either.
This moment calls for much more than our lawmakers have delivered.
The BGA and its allies have advocated for a package of reforms that collectively would ensure that public officials act in the public interest and not their own. The bill approved by the General Assembly comes up short in every category.
Thoughts?
* Related…
* State’s new ethics rules under fire from unlikely source
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* The Senate Executive Committee is deliberating this bill right now. Click here to watch it. This post will be updated…
State Rep. Delia C. Ramirez, D-Chicago, released the following statement on HB 2908 Senate Amendment 1, the Senate Elected School Board Compromise bill.
“My commitment has always been and continues to be to pass a fully elected and representative school board for Chicago Public Schools. This is why we took action on HB2908 in April, to honor the wishes of the overwhelming majority of CPS parents and stakeholders who have been demanding a fully elected board.
Senate Amendment 1 to HB2908 achieves the goal of finally securing a fully elected school board for CPS. This bill does not set a timeline that I would have wanted or that Chicagoans deserve. However, with key protections during the transition period including a moratorium on school closures and city council confirmation of temporarily appointed members, I believe it is time to finally legislate a path to a fully elected board. If the Senate passes HB 2908 SA1, I plan to call it for concurrence once the house reconvenes.”
…Adding… Senate Exec passed the bill with two Democrats voting “Present.”
…Adding… The full Senate is taking up the bill. Click here to watch it and/or click here to monitor it on the live coverage post.
*** UPDATE *** The bill passed 36-15-2. Sens. Lightford and Harris were both “Present,” the same as they were in committee earlier today.
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Harmon backs off, but no vote today
Tuesday, Jun 1, 2021 - Posted by Rich Miller
* Press release…
Senate President Don Harmon issued the following statement regarding positive steps in ongoing energy policy negotiations.
“I’m informed that an agreement has been reached between the governor and Exelon on a proposal that would save jobs, which has been our goal all along. That’s why we support the governor in these talks.
We also stand with the governor on de-carbonization targets that need to be in a final deal.
The Senate remained in session with the hope of voting on an agreement today. We stand ready to return to the Capitol when the governor’s plan is ready for action.”
…Adding… Click here to see a roundup of what’s known about the agreement.
…Adding… Forgot to tell you about this budget development…
Senate President Don Harmon has lifted his hold on the new state budget, clearing the $42 billion measure for Gov. J.B. Pritzker’s signature.
…Adding… More movement, but we’ll see. Lots of rumors about this plan’s viability, so stay tuned…
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The energy bill fiasco
Tuesday, Jun 1, 2021 - Posted by Rich Miller
* WBEZ…
As Monday dragged on, the most dramatic feature was the fate of the Exelon bailout, which sought to extend a lease on life for the company’s financially struggling nuclear plants at Dresden, Braidwood and Byron as part of a broader green-energy push by the Pritzker administration. Exelon announced last August it would close Dresden and Byron without relief from Springfield.
Pritzker’s office and Exelon appeared to have settled on the broad framework of more than $600 million in ratepayer subsidies over five years, multiple sources confirmed to WBEZ. But a deal hit an 11th hour snag involving the future of a southern Illinois coal-burning plant.
Talks surrounding the nuclear package unfolded under the heavy cloud of an ongoing federal probe into Exelon’s subsidiary, ComEd. Last week, as part of that investigation, federal prosecutors announced perjury and obstruction of justice charges against Madigan’s one-time chief of staff, Tim Mapes.
* From last night…
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* Tribune…
An 11th-hour disagreement over whether to exempt the Prairie State Generating Station in southern Illinois and city-owned power plant in Springfield should be exempted from deadlines for shutting down coal-fired power plants had the potential to derail the deal.
Supporters were pushing the exemption because of outstanding bond debt on the facilities, but the governor’s office said Pritzker would not sign a bill that gives them special treatment.
* Greg Hinz…
But speculation centers on the role of Harmon’s chief of staff, Jake Butcher, who before he went to work for Harmon was a lobbyist for Prairie State Energy, which runs a “clean coal” generation plant and reportedly wants to be exempted from provisions of a deal that otherwise has the backing of both Pritzker and Harmon.
* Politico…
The energy bill appeared to be close. After reaching a compromise about how much to give Exelon to operate nuclear plants, there’s now a disagreement on coal plants. Senate President Don Harmon and his top aide, Jacob Butcher, a former coal lobbyist, want to exempt the Prairie State Energy coal plant from decarbonization rules that are in the bill.
…Adding… Prairie State…
“Coming online in 2012 during the Obama-Biden Administration, Prairie State is uniquely positioned to act as a bridge to support Illinois’ transition to a greater reliance on renewable energy. Our power plant was purpose-built with more than $1 billion in best available control technologies and we operate under very stringent environmental standards. Prairie State is vital to maintaining grid reliability, energy affordability, and economic prosperity as Illinois works to close the gap between today’s technologies and long-term carbon reduction goals. Prairie State is committed to partnering with policy leaders to further mitigate CO2 emissions in the future, including a partnership with the University of Illinois and U.S. Department of Energy to conduct a carbon capture study with the objective of identifying CO2 emission mitigation opportunities at a commercial scale,” said Alyssa Harre, Director of External Affairs and Organizational Strategy for Prairie State. “Prematurely shuttering Prairie State in 2035 would place new financial burdens on communities who own the plant by essentially forcing them to pay for two sources of power: the energy already owned through their partnerships with Prairie State Energy Campus, and replacement power to cover that loss. That is an additional cost our not-for-profit member communities and their ratepayers cannot afford.”
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*** UPDATED x1 *** Always check for motions
Tuesday, Jun 1, 2021 - Posted by Rich Miller
* Tribune…
Illinois lawmakers went into overtime Tuesday, missing a midnight deadline to adjourn the spring session but approving a $42 billion state budget, a plan shifting next year’s primary to June and an ethics package requiring more financial disclosure of officeholders.
Strains between the Democratic-controlled House and Senate, under two new leaders, were evident when the House indicated its work for the spring session was largely finished and members headed home. The Senate, under President Don Harmon of Oak Park, planned to return to work later Tuesday and assess an unfinished legislative landscape.
Left unresolved were plans for future energy policy for the state, efforts to strengthen gun laws, an elected school board for Chicago and law-enforcement backed changes to a sweeping police reform law approved just months ago.
Despite the unfinished business, House Speaker Emanuel “Chris” Welch, who took over in January from embattled veteran Michael Madigan, said “this has probably been one of the most successful sessions around here in a long time.”
* But…
*** UPDATE *** John Patterson…
It’s a procedural move to protect our accomplishments from any political shenanigans.
We are tremendously proud of what this budget accomplishes and look forward to delivering it to the governor to sign.
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* House Majority Leader Greg Harris laid out the case for this budget proposal at a House Executive Committee hearing today. The governor, he rightly noted, wanted to cut money going into the Local Government Distributive Fund, but that was “left alone” in this budget, as well as transit funding. The state’s bill backlog, he noted, is now just $3.2 billion.
Harris also said…
We have tried to use that FY 21 money in some very strategic ways to enhance our FY 22 budget. Things like making a prepaid deposit to make one large Medicaid payment a month in advance, which would allow us to capture an additional share of the federal enhanced Medicaid model before it expires.
Harris said the budget pays down $2 billion of debt, “and we repay our interfund borrowing.”
* As far as the federal ARPA money goes, Harris said the state is “spending some of that money in early summer,” on things like violence prevention, after-school programming, youth programming, mental health, substance abuse, “things sorely needed in our communities.”
He said legislators will work through the summer to develop a “very targeted and strategic approach” for the balance of the federal money.
Capitol News Illinois…
It also calls for spending about $7.5 billion in state general revenues on Medicaid, plus another $7.4 billion for other human services; $1.9 billion for higher education; another $1.9 billion for public safety; and $1.4 billion for general services.
In addition to those regular items, Harris said, the plan calls for spending about $2.5 billion of the ARPA money Illinois expects to receive. Of that, $1.5 billion would go for things like economic recovery programs to help businesses hardest hit by the pandemic, public health, affordable housing and violence prevention programs like after-school activities, and summer youth employment.
Another $1 billion of the ARPA funds would be directed into the ongoing Rebuild Illinois capital improvements program to accelerate some of the projects slated for construction.
There’s more, but you get the idea.
* Harris also said this…
There are no tax increases in this budget
* The Illinois Chamber thinks otherwise…
Despite impressive out performance of tax revenue growth and $8.1B of federal assistance, the Democrats’ budget still punishes Illinois employers with higher taxes in order to “balance” a bloated state spending plan. We see no meaningful restraint in states spending, only more proposals that force employers to pay higher taxes or decide whether or not to continue their investment in Illinois.
The so-called “loophole” closures are nothing more than tax increases on employers that target, in particular, the manufacturing sector which has lost 50,000 jobs in the last two years. These changes make the Illinois tax code go further outside of the mainstream of state tax policy. Job creators will undoubtedly react negatively.
These tax increases, when combined with extraordinarily punitive changes to our civil liability system, increased regulation, and a potential labor drafted rewrite to the Illinois Constitution, makes the 102nd General Assembly the worst for job creation in a generation.
* Dot points from the governor’s office about what loopholes were closed…
• Cap Corporate NOL Deductions at $100,000 Per Year For the Next 3 Years (~$314M)
When a company suffers a net operating loss (NOL) in a given year, it can carry forward the NOL to future years and deduct it from otherwise taxable income. Capping the amount of NOL deductions to $100,000 will impact the wealthiest businesses, and will add $314 million in corporate income tax revenues, as well as $21 million in local taxes.
• Align Domestic & Foreign-Source Dividend Deduction (~$107M)
Under the Tax Cuts & Jobs Act (TCJA), corporations are allowed to deduct foreign-source dividends at 100% and global intangible low-taxed income (GILTI) at 50%. Aligning the tax treatment of dividends from foreign sources and GILTI to the treatment of domestic dividends will primarily impact large, multi-national corporations with foreign subsidiaries or substantial ownership interests in foreign corporations. This alignment will produce $107 million in corporate income tax revenues for the state and $7 million for local governments.
• Roll Back Trumps’ Tax Cut & Jobs Act 100% Accelerated Depreciation Deduction (~$214M)
The TCJA allows businesses to take a 100% depreciation deduction in the year of purchase for various qualifying assets. By applying the standard depreciation schedule, the state will generate $214 million in business income tax revenues and $14 million for local governments.
• Freeze Phase Out of Corporate Franchise Tax (~$20M)
Public Act 101-0009 was enacted in 2019 and began the gradual phase out of the Corporate Franchise Tax (scheduled to be fully repealed in 2024). The budget freezes the phase out of the repeal by eliminating the first $1,000 in Corporate Franchise Tax currently in place. This change will eliminate the tax burden for the smallest businesses while allowing our state to retain approximately $20 million in revenue.
That’s significantly less than the $900+ million Pritzker proposed. Biodiesel, retailers’ discount, tax credit for private schools and the Blue Collar Jobs Act were all preserved. Adding: The Manufacturers Purchase Credit was also saved
…Adding… Illinois Municipal League…
“The Local Government Distributive Fund (LGDF) serves as a financial foundation for cities, villages and towns across the state and is crucial to keeping local tax burdens as low as possible. When these dollars are reduced, local leaders are forced to make difficult decisions, which include cuts to critical services or increasing taxes and fees to ensure municipal budgets stay balanced.
“We commend Governor JB Pritzker, legislative leaders and state lawmakers for not enacting further cuts to LGDF and increasing state and local revenues by adopting various changes to the state’s tax code.
“Communities need this funding as we recover from the pandemic and economic collapse, due to public demand for even more community programs and services, said Brad Cole, IML Executive Director.
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*** UPDATED x2 *** Ethics reform bill filed
Monday, May 31, 2021 - Posted by Rich Miller
* If you’re watching our “cheat sheet” post, you know that House Amendment 2 to SB539 was just filed. That’s the new ethics language. Click here to read it and I’ll go through it with you in a bit.
…Adding… OK, let’s start with this…
No legislator or executive branch constitutional officer shall engage in compensated lobbying of the governing body of a municipality, county, or township, or an official thereof, on behalf of any lobbyist or lobbying entity that is registered to lobby the General Assembly or the executive branch of the State of Illinois.
Same applies to county, municipality and township electeds and appointeds.
From the provided dot points…
Prohibits State officials, including legislators, and officials of counties, municipalities, and townships from lobbying for compensation on behalf of a lobbyist or lobbying entity registered to lobby their unit of government. Violation of the prohibition is Class A misdemeanor. It excludes communications: (a) within the scope of the officials public duties; (2) by an attorney in connection with the practice of law or in the course of representing a client in any judicial, quasi-judicial, or administrative proceeding; and (3) by legislators in the ordinary course of employment where primary purpose of employment is not to influence government action.
* More…
No person who is appointed to an affected office shall: (i) serve as an officer of a candidate political committee; or (ii) be a candidate who is designated as the candidate to be supported by a candidate political committee.
There’s a provision for a new limited activity campaign committee that was previously floated by the Senate Dems. From the dot points…
Requires that any individual whose appointment to any executive agency, board, or commission is subject to Senate confirmation and controls a political committee must institute a freeze on funds going into or out of the committee immediately upon being named as an appointee. Creates a new kind of committee, “limited activity committee,” for those individuals. A limited activity committee may not accept contributions, except for personal funds in order to pay for maintenance expenses.
* Economic interest statements…
The interest (if constructively controlled by the person making the statement) of a spouse or any other party, shall be considered to be the same as the interest of the person making the statement.
It goes on to mandate reporting of certain things, including “the name of each unit of government of which the
filer or his or her spouse was an employee, contractor, or office holder during the preceding calendar year” along with…
each person known to the filer to be registered as a lobbyist with any unit of government in the State of Illinois: (i) with whom the filer maintains an economic 14 relationship, or (ii) who is a member of the filer’s family.
To be clear, I’m skipping through this and not including some things, so if you have any questions, search the bill before asking why you didn’t see such-and-such in this quickie take.
* No legislative or executive branch campaign fundraisers are allowed anywhere on session days (previously only banned in Sangamon County) and the day before the legislature is in session.
* The state has no revolving door law for the executive branch or legislators. The proposal would impose a 6-month waiting period. Republicans had demanded 12 months. [Adding from a pal: It’s 6 months or until the end of their term, whichever is shorter unless they finish their term in which case they can lobby the next day.]
* Executive inspectors general can now initiate investigations without prior approval of the Executive Ethics Commission based on complaints, but only within one year of the alleged violation.
* The Legislative Ethics Commission is prohibited from proposing or enforcing rules mandating that the Legislative Inspector General must receive prior approval from the Commission before initiating an investigation.
* Legislators who resign or retire during their terms will not be paid a salary for the full month. Instead it’ll be pro-rated. Right now, a member can resign on the first of the month and get a pensionable check for the entire month. This starts with the next General Assembly, of course. It’s not legal to reduce or increase legislative compensation during their terms.
* Provided dot points on lobbying reforms…
Local Lobbyist Registration: Requires persons who undertake to lobby officials of counties, municipalities, and townships to register with the Secretary of State and submit expenditure disclosures like lobbyists at the State level.
Lobbying Definition: Expands the definition of “lobbying” to include soliciting other to make communications.
Consultant Disclosure: Requires lobbyists and lobbying entities to disclose persons or entities they hire to provide advisory services such as strategy development or guidance on lobbying or influencing. Excludes (i) employees of the lobbyist or lobbying entity and (ii) attorneys providing legal services, such as drafting and rendering legal opinions on the effect of government action.
Lobbyist Training: Requires ethics and sexual harassment training to be completed by lobbyists prior to their registration being considered complete, rather than within 30 days of registration.
Lobbying Preemption: Allows Chicago to continue to enforce its ordinances related to restrictions on lobbying.
That consultant disclosure is a good first step. They’re becoming all too common.
*** UPDATE 1 *** The bill has been amended to include a provision allowing campaign expenditures for child and elder care that the Senate has already passed.
*** UPDATE 2 *** The Senate Republicans and Democrats held a joint press conference to talk up the ethics bill this afternoon. That’s not a common occurrence in these parts.
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May 31, 2021 cheat sheet
Monday, May 31, 2021 - Posted by Rich Miller
* These have been popular posts in the past, so let’s do it again. If you catch any additions, updates or see any errors, please let me know in comments or text me if you have my number. I will update this when I can. Lots going on, so be patient with me, please.
Let’s start with packages and bills that do not yet have a firmly identified vehicle…
* Energy package
* Parental notification repeal
* No previously identified vehicle bills are awaiting amendments.
* Amendments filed to vehicles and awaiting action…
* HB 900 - Capital reappropriation (SA1 filed) *** SA2 FILED ***
* Bills awaiting action in the Senate…
* SB 521 - Gaming items *** (HAs 1, 3, and 4 adopted) ***
* Bills awaiting action in the House…
* HB 562 - FOID (SA1 adopted)
* HB 2567 – University procurement (SA2 adopted)
* HB 2643 - Unemployment Insurance
* SA2 to HB 550 - Legislative COLA suspension
* “Passed Both Houses”…
* HB 2908 - Elected school board compromise
* SB 166 – Social Equity pillar trailer (HA2 adopted)
* HB 3743 - Telecom sunset extension
* HB 806 - Licensing Omnibus (SA2 adopted)
* HB 2621 - Affordable Housing package (SAs 1, 3, 4 adopted)
* SB 2294 – Medicaid Working Group package (HAs 1, 2, 3 adopted)
* SB 508 – Property tax package (HAs 2, 5 adopted)
* SB 825 – Elections omnibus (HA1 and HA2 adopted)
* HB 3443 – Criminal justice pillar trailer (SA5 adopted) *** REP. HARPER MOVES TO RECONSIDER ***
* HB 3308 – Telehealth
* HB 2620 – Liquor omnibus (SAs 1, 2, 4, 5 adopted.)
* SB 539 – Ethics omnibus (HA2 adopted)
* SB 2800 – Budget (HA1 FILED) *** HA2 and HA3 ADOPTED***
* HB3743 - Telecom sunset extension (SAs 1, 2 adopted)
* BIMP
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* House Floor Amendment 1 to SB2800. Click here.
…Adding… A few more…
* Sen. David Koehler’s FOID bill: SAM1 to HB562
* Rep. Sonya Harper’s trailer bill for the new equity law: HAM2 to SB166
* Rep. Robert Rita’s gaming bill: HAM1 to SB521
I’ll have more for subscribers in the morning, including a summary of the new elections bill.
*** UPDATE *** This is from that Rita bill…
…Adding… Press release…
SPRINGFIELD – The Illinois Association of Rehabilitation Facilities, representing community providers of services and programs for thousands of Illinoisans with intellectual and developmental disabilities, today issued the following statement as lawmakers prepare to vote on a Fiscal Year 2022 state budget and adjourn the spring legislative session:
“Our mantra this spring has been clear: we must do better on funding I/DD services in Illinois. The proposed state budget legislators have put together does not meet that standard.
A federal decree requires Illinois to do better, by providing better funding for services, staff wages, and reducing wait lists for services. The Guidehouse rate study commissioned by the Department of Human Services and released late last year made clear it will take a significant investment starting this coming fiscal year to make real progress.
The Governor’s proposed funding increase of $122 million – the amount that is included in the budget being considered today – is simply not nearly enough to meet the tremendous needs of the people we serve. This budget does not:
• Fully fund the rate study, nor an agreement among our service providers and the labor unions representing their workers to increase state support
• Support 28,000 individuals currently receiving services and more than 17,000 on the state waiting list for services
• Fully fund a single priority in the rate study, including wage increases for staff. In Chicago, frontline staff will barely make above the city’s increased minimum wage
• Spend a dime of the state’s $8 billion in federal relief funds on I/DD services and supports
Other critical, core government services and programs are receiving large budget increases and amounts, including K-12 education, hospitals and nursing homes. But this budget ignores the stark reality that Illinois ranks 47th in spending on disability services.
Our ask today is simple: amend the proposed state budget to provide a full $193 million to fully fund the rate study starting Jan. 1, 2022. We must do better, before it’s too late.”
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Always check for motions
Sunday, May 30, 2021 - Posted by Rich Miller
* Rachel Hinton at the Sun-Times was the only reporter who wrote about this bill who noticed that a crucial motion had been filed…
In the House, lawmakers held a heated debate on House Bill 1091, one of two bills in the Legislature that’s aimed at making the state’s FOID card system more effective.
Rep. Maura Hirschauer, D-Batavia, sponsored the bill and introduced it in the House. Hirschauer said it would create an option for an electronic FOID card; allow for automatic renewal of the card when one’s concealed carry license is renewed and requires an applicant seeking to get, or renew, a Firearm Owner’s Identification (FOID) card to include a full set of their fingerprints to the Illinois State Police, unless the applicant has already done so.
Hirschauer said the bill will help to “keep guns out of the hands of dangerous people,” like the man who fatally shot five of his co-workers in 2019 at the Henry Pratt Company in Aurora. […]
That bill passed 60 to 50, largely along party lines. But, by Saturday night, Rep. Frances Hurley, D-Chicago, had filed a motion to reconsider. As a result, the bill would stay in the House unless, or until, the motion is taken up by members.
Yep.
This is a House bill, so it needs three days of readings in the Senate. That can’t happen before midnight Monday even if the brick is lifted by Rep. Hurley today.
I’ve made this mistake before. It’s maddening and embarrassing. Thank goodness for reporters like Hinton.
…Adding… Literally seconds after this post went live, a story by NPR Illinois’ Hannah Meisel went online…
State Rep. Curtis Tarver (D-Chicago) recounted his Nov. 2019 arrest after a traffic stop, when Chicago Police detained the Democrat for seven hours for carrying a gun with an out-of-date FOID card.
In reality, Tarver renewed his FOID card two days prior but Chicago Police’s database had not yet ingested the renewal information. Tarver said electronic notifications for FOID card renewal deadlines may have prevented his arrest.
“I get a letter to my home address from 10 years ago, and it becomes an issue,” Tarver said. “I take care of it with the State Police, I still get pulled over because the system’s [are] not caught up with each other, and I’m screwed.”
Tarver asked Hirschauer to commit to getting that passed. […]
However, it’s unclear whether the legislation will make it to the Senate, as after the bill’s narrow approval, State Rep. Fran Hurley (D-Chicago), who voted for the bill and managed members of her own Moderate Caucus within the House, filed a motion to reconsider.
Another fine Statehouse reporter heard from.
* Oops…
* Illinois House sends controversial FOID card bill to Senate
* Mandatory fingerprints for legal gun owners passes to Illinois Senate
* Illinois Lawmakers Advance Bill Requiring Fingerprints For Gun Card Applications
* House passes bill requiring fingerprints for FOID cards, but Senate may make changes
* Illinois House passes proposal requiring fingerprints from gun owners: It now heads to the Senate for consideration.
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