Capitol Fax.com - Your Illinois News Radar

Tuesday, Jul 11, 2023 - Posted by Rich Miller

* The Center for Tax and Budget Accountability has released a new pension payment plan…

Under CTBA’s model:

o the funded ratio target for 2045 moves from its current level of 90 percent under the Pension Ramp to a target of 80 percent funded, which is the GAO standard for a public pension system to be healthy;

o a total of $6.7 billion in pension obligations bonds are issued over the FY 2023 through FY 2030 sequence, with all the bond proceeds being used to front-load payments to the pension systems and retire existing unfunded liability debt;

o the contributions to the pension systems are moved from the last day of the fiscal year to the first day, thereby generating an additional year of investment returns on said contributions, which has a positive, compounding effect over time; and

o the repayment of outstanding unfunded liabilities is re-amortized on a level-dollar basis, eliminating the fiscal strain created by the back-loading of payments under the existing Pension Ramp.

The CTBA claims doing this would save the state $62.8 billion. From a press release…

Based on the re-amortization approach modeled out in the report, the state can save 19 percent of the total debt service remaining under the Pension Ramp, which would reduce taxpayer costs by $62.8 billion between now and 2045, the final year of the Pension Ramp payment schedule.

Another benefit of the re-amortization of the debt owed to the pension system outlined in the Report is that it would get the state’s five pension systems healthier faster than the current Pension Ramp.

According to Sarah Wasik, CTBA’s Senior Research and Policy Analyst: “Any business that could refinance debt and save billions of dollars would do so. It makes sense for the state of Illinois to do the same and take the opportunity to refinance its pension debt, so it can save billions of taxpayer dollars.”

Click here for lots more details.

Considering that the NY rating agencies have been complaining for years that Illinois has a 90 percent funding model by 2045 instead of a 100 percent model, I’m not sure how this would go over with them.

Your thoughts?

…Adding… I always pay attention to what Yvette Shields at the Bond Buyer says…

upfronting payments would be viewed favorably by rating agencies and investors, using POBs to do it perhaps a neutral credit impact, but moving to an 80% funded ratio goal is invitation to a downgrade….. https://t.co/hSSv71LTk2

— yvette.shields@arizent.com (@Yvette_BB) July 11, 2023

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Pritzker leading trade mission to UK

Tuesday, Jul 11, 2023 - Posted by Rich Miller

* Press release…

Governor Pritzker along with leaders in business and education from around the state will embark on a trade mission to the United Kingdom on July 16. The Governor will kick off the international trip by attending the Goodwood Festival of Speed from July 13-16 to discuss Illinois’ commitment to electric vehicle manufacturing with automobile, energy, and supply chain industry leaders.

Following the Goodwood Festival of Speed, a delegation of business and education leaders will meet with their counterparts in London to discuss strengthening economic cooperation between the State of Illinois and the United Kingdom. Programming throughout the mission will focus on manufacturing, clean energy and technology, quantum, higher education collaboration, and other key industries.

“When I first ran for Governor, I promised to be our state’s best Chief Marketing Officer—letting the world know that Illinois is the best place to live, work, and do business,” said Governor JB Pritzker. “Over the next several days, I couldn’t be more excited to meet with UK and international leaders—sharing the many virtues of our state, from our talented workforce and world-class manufacturing industry to our booming electric vehicle ecosystem and ambitious clean energy goals.”

“The State of Illinois and the United Kingdom have a longstanding economic relationship and as Illinois’ economic development agency, we look forward to building upon this enduring partnership,” said DCEO Director Kristin Richards. “With $5 billion in bilateral trade in 2022, this trip will help us further strengthen our ties and give us the opportunity to meet with some of the most talented leaders across industries in the UK while forging connections on business opportunities that will benefit Illinoisans and people from Britain alike.”

“The UK is one of the top foreign investors in Illinois, so this trip is about building on that strength to encourage more British companies to be in Illinois,” said Intersect Illinois CEO Dan Seals. “We’re making the case for our skilled workforce, our central location, our quality of life, and our international outlook.”

Leaders joining the trade mission include:

• Governor JB Pritzker
• First Lady MK Pritzker
• Emanuel “Chris” Welch, Speaker of the IL House
• Anne Caprara, Chief of Staff to Governor Pritzker
• Andy Manar, Deputy Governor
• Christy George, First Assistant Deputy Governor
• Martin Torres, Deputy Governor
• Sean Rapelyea, Senior Advisor for External Affairs
• Jordan Abudayyeh, Deputy Chief of Staff for Communications
• Kristin Richards, Director, DCEO
• Margo Markopoulos, DCEO, Director of Trade and Investment
• Cas Peters, DCEO, Senior Policy Advisor
• Dan Seals, Intersect Illinois, CEO
• Paulina San Millan, Intersect Illinois, VP for Business Development
• Alan Gogbashian, UK Consul General to Chicago
• Tim Killeen, University of Illinois, President
• Jay Walsh, University of Illinois, VP
• Juan de Pablo, University of Chicago, EVP
• Raj Echambadi, Illinois Institute of Technology, President
• Kate Waimey Timmerman, Chicago Quantum Exchange, CEO
• David Awschalom, Chicago Quantum Exchange, Director
• Pranav Gokhale, Infleqtion, VP of Quantum Software
• Carmen Rossi, 8 Hospitality, CEO
• Meredith O’Connor, JLL, International Director
• AJ Patton, 548 Enterprise, CEO
• Jim Reynolds, Loop Capital, CEO
• Wendell Dallas, Nicor Gas, President and CEO
• Gil Quiniones, ComEd, CEO
• Torrence Hinton, People’s Gas and North Shore Gas, President
• Leonard Singh, Ameren, Chairman and President
• Kara Demirjian Huss, T/CCI Manufacturing, VP; DCC Marketing, Founder & President
• Berardino Baratta, MxD, CEO
• Mark Denzler, Illinois Manufacturing Association, CEO
• David Boulay, Illinois Manufacturing Excellence Center, President
• Michael Jacobson, Illinois Hotel and Lodging Association, CEO
• Rob Karr, Illinois Retail Merchants Association, CEO
• Jeff Baker, Illinois Realtors Association, CEO
• Michael Gobber, Illinois Realtors Association, President
• Brad Tietz, Chicagoland Chamber of Commerce, VP of Gov. Relations
• Monica Mueller, Motorola Solutions, VP of Gov. Affairs
• Dan Lynch, United Airlines, VP of State and Local Govt.
• John Atkinson, Marsh US in Chicago, Chairman and Managing Director

Illinois and the United Kingdom have a long history of shared economic cooperation.

Exports are a Vital Part of Illinois’ Economy

• Illinois exports exceeded $78 billion in 2022 with the preliminary agricultural adjusted figure reaching $82.2 billion, both all-time highs
• Illinois is the largest exporting state in the Midwest and the 5th largest in the nation
• 19 out of the top 20 export industries increased since 2021
• Since 2009, Illinois exports have increased by $36.55 billion, or 87.8%
• Export activities support over 800K jobs in Illinois

Total Trade between Illinois and United Kingdom in 2022

• Illinois exports to United Kingdom totaled $1.94 billion in 2022
• United Kingdom is Illinois’ 9th largest export market
• Illinois ranks 10th among the 50 U.S. states in exports to United Kingdom
• Illinois imports from United Kingdom totaled $3.14 billion in 2022, a 139.8% increase since 2009.
• United Kingdom is Illinois’ 13th largest import market
• Illinois ranks 6th among the 50 U.S. states in imports from United Kingdom

…Adding… According to the governor’s office, staff travel is covered by the governor’s office and DCEO is covering its staff travel. The governor is paying for his own travel and for staff travel to Goodwood and lodging at Goodwood. Everyone else is paying for their own stuff. DCEO and Intersect are sharing some of the costs associated with programming

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Lawsuit filed over “horrific conditions” at Franklin County Juvenile Detention Center

Tuesday, Jul 11, 2023 - Posted by Rich Miller

* A bit of background…

Pursuant to 730 ILCS 5/3-15-2(b), the Illinois Department of Juvenile Justice (IDJJ) is responsible for establishing minimum standards for juvenile detention centers across the state. For the first time since 1998, the County Detention Standards were updated in 2021 to reflect current practice. Updates included the addition of portions for the Prison Rape Elimination Act (PREA), and enhanced guidelines for areas such as youth grievances, mental health service requirements, visitation guidelines, educational guidelines, and restrictions to the use of confinement. IDJJ conducts annual inspections of all county detention centers to monitor compliance and offer technical assistance.

Illinois county juvenile detention centers do NOT fall under the jurisdiction of the State of Illinois Department of Juvenile Justice.

And…

The Franklin County Juvenile Detention Center serves law enforcement and the juvenile justice system within 26 rural southern Illinois counties.

* From last October…

A southern Illinois juvenile detention center is a “a facility in crisis.”

That’s the words used by the Illinois Department of Juvenile Justice following an inspection in Franklin County.

The full, 15-page report can be found here.

During an August 2 inspection at the Franklin County Detention Center, the Illinois Department of Juvenile Justice found what it calls “extremely low” staffing levels at the facility.

The report shows just eight full-time works and four part-time employees were working at the detention center at the time of the inspection.

Inspectors say they also found the facility to be non-compliant in several areas, including personal hygiene, food services and education.

* ACLU of Illinois…

A young person who has been housed at the Franklin County Juvenile Detention Center filed a federal lawsuit challenging the conditions at the facility. The lawsuit’s description of horrific conditions at the facility mirror the findings of a recent report by the Illinois Department of Juvenile Justice. The youth, along with several others currently or recently detained at the facility, describe being locked into cells the size of parking spaces for 20 to 24 hours a day, unable to flush their own toilets, and struggling to sleep under fluorescent lights that never turn off. The youth held at the facility also are not provided any meaningful mental health care or allowed to attend school.

These conditions are present in a facility that detains youth as young as 11 years old. Each year, Franklin County JDC detains hundreds from multiple counties across Southern Illinois.

“The bottom line is that the officials responsible for this facility are failing to treat youth in their care as children,” said Kevin Fee, Senior Special Litigation Counsel at the ACLU of Illinois, one of the lawyers representing the unnamed youth in the lawsuit. “These youth are isolated for long periods of time with no chance to exercise their minds or bodies. There is widespread consensus that no one should be subjected to solitary confinement, let alone an 11 year old who is at such a crucial early stage in their social and emotional development. It is inhumane.”

Among conditions detailed in the complaint filed in federal court:

• Young people are regularly confined alone their small rooms for 20-23 hours per day, and sometimes receive enhanced solitary confinement for days on end;
• Fluorescent lights in the rooms remain at full brightness for 24 hours each day;
• The rooms are not sanitary, including many that leak when it rains and others that have significant mold;
• Youth are not provided pillows or adequate bed linen for the mattresses where they sleep;
• Water is regularly shut off as a part of an opaque discipline system;
• Youth must “buzz” detention staff if they need additional toilet paper or to have their toilet flushed (toilets in the rooms are flushed from outside);
• Young people have no meaningful access to mental health care to deal with their inhumane surroundings;
• Youth have no regular educational classes, instead being given worksheets to complete on their own.

Nearly a year ago, in August 2022, the Illinois Department of Juvenile Justice conducted an audit of the Franklin County facility and concluded that it was a “facility in crisis.” The IDJJ cited a range of problems from extended confinement to the lack of clothing and personal hygiene to a behavioral program that was standardless and vague.

“Our clients all make one thing clear – Franklin County and the leadership of the JDC have put policies in place that led to youth being detained in constitutionally inadequate conditions, and they have failed to organize and pay for the resources necessary to appropriately care for children in its facility,” added Fee. “This situation must be rectified now, so that no 11 year old is locked up in these awful conditions. We look forward to sharing all this information with a federal court.”

The federal lawsuit was filed in the Southern District of Illinois on behalf of a young person (known by his initials, L.S.) and a putative class of other youth detained at the facility. The complaint asks the federal court to ensure that immediate steps are taken to address the harms caused by the conditions and lack of services.

A full copy of the complaint can be found here.

…Adding… A bill was passed this spring to extend the jurisdiction of the Department of Juvenile Justice’s independent ombudsman to cover county detention facilities like the one in Franklin County. The governor has yet to take action on the bill.

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