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*** UPDATED x3 - AFSCME responds *** This just in… Rauner works around Munger refusal

Friday, Feb 13, 2015 - Posted by Rich Miller

* 4:41 pm - From the governor’s press shop…

The governor’s office consulted with the Comptroller’s office, and the governor’s office developed an operational solution.

State agencies under the control of the governor’s office will withhold unfair share fees when processing payroll. Additionally, agencies will retain an amount of money equal to the withheld unfair share fees until the legal issues are resolved.

The fact that the Governor pro-actively took steps from the beginning to segregate the unfair share funds shows his respect for the legal process underway. Whether it’s the Comptroller or the individual departments that keep the ‘unfair share’ funds in reserve, the Governor is making sure that he is able to carry out his obligation to protect the constitutional rights of the people of Illinois while recognizing that this important issue will ultimately be decided by the courts.

So, instead of ordering the comptroller to violate state law and state contracts, the governor’s gonna do it himself.

Sheesh.

…Adding… To be clear here, the comptroller has no say-so or choice in this matter if Rauner’s agencies deduct the fair share dues before submitting payroll to the comptroller’s office.

*** UPDATE *** Earlier today, a commenter posted this…

There has been a surge in AFSCME locals for those with fair share status to convert to full union membership.

So, is this true? Is a backlash building? I asked AFSCME’s spokesman about it…

That’s what we’re hearing from our local unions – and there are more than 70 locals that represent state employees – as well as anecdotally on social media, etc, but we won’t have any hard numbers until membership cards come in.

*** UPDATE 2 *** Dan Webb is now officially off the case…

On Friday, Webb told the Sun-Times he could not represent the state on Rauner’s behalf in court due to conflicts. Rauner had said in his announcement on Monday that Webb’s involvement would be conditional on obtaining waivers.

“Like most major law firms, we have private clients with disputes with the state of Illinois. I could not work out the waivers,” Webb said. He told the Sun-Times he “reluctantly” had to call the governor’s office to decline. “I was grateful that they wanted to have me involved.”

Rauner has since tapped another high-profile attorney: Phil Beck. Most famously, Beck represented President George W. Bush and Vice President Dick Cheney in the Florida recount trial versus Democratic nominee Al Gore.

Beck’s involvement is destined to make some heads explode.

*** UPDATE 3 *** From Roberta Lynch at AFSCME Council 31…

“The comptroller is right to refuse to implement Gov. Rauner’s unlawful Executive Order regarding Fair Share. The governor’s response shows the lengths he’ll go to in his crusade to undermine unions.

“Clearly his mission is not to build up Illinois but tear down the institutions that provide a voice for working families in our state. He seems offended by the idea that workers who protect children, care for veterans, ensure safe prisons and provide other essential public services earn a decent living and have a voice on the job.

“Our state faces real challenges, yet Gov. Rauner devotes his time and energy to bizarre and illegal schemes to scapegoat workers and weaken their morale. His combative approach offers no path to work together for the common good.”

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Rauner names new DCEO director

Friday, Feb 13, 2015 - Posted by Rich Miller

* A Friday afternoon appointment…

Governor Bruce Rauner announced today he has selected Jim Schultz, 55, as Director of the Illinois Department of Commerce and Economic Opportunity. Schultz’s experience in agribusiness and as a banking entrepreneur gives him the breadth of knowledge to develop and support businesses across the State of Illinois. He will bring 30 years of experience to the position.

Schultz is currently the chairman of Open Prairie Ventures, Inc., a company he founded in 1997. Open Prairie provides private equity services and manages more than $135 million in fund commitments.

Prior to founding Open Prairie Ventures, Schultz was the chairman and CEO of Telemind Capital Corporation. The company provides merger and acquisition guidance, and financial consulting services to businesses. Schultz assisted clients in a number of industries, including: software development, banking, manufacturing, retail, healthcare and entertainment.

Schultz earned his bachelor’s degree in business administration from Southern Methodist University in 1980. He holds a law degree from DePaul University and an MBA from Northwestern University.

Experience:
● Open Prairie Management, LLC., Founder and Chariman of the Board (1997-Present)

● Telemind Capital Corporation, Chariman/CEO (1990-2000)

● Prime Banc Corporation

o Chairman of the Board (1993-2001)

o Board Member (1993-Present)

● Pinnacle Ford-Lincoln-Mercury, Inc., Chairman and Founding Partner (1992-1996)

● Physicians Clinical Laboratories, Ltd., Chairman and President (1990-1993)

● Agracel, Investment Banking Parneter, General Counsel, CFO (1987-1992)

● Effingham Hi-Tech Partners, Managing Partner (1987-1991)

● Mark Twain Banks, Assistant Vice President (1985-1987)

Education:
● Northwestern University, MBA (1985)

● DePaul University, J.D. (1984)

● Southern Methodist University, B.S. in Business Administration (1980)

Personal Information:
● Age: 55

● Hometown: Effingham

* Meanwhile, from the Tribune…

The incoming director of the Department of Children and Family Services said Friday that he got one clear message during his single meeting with his new boss, Gov. Bruce Rauner:

“He knows that it’s a problem agency,” said George Sheldon. “He seemed concerned and he also expressed a commitment to do what was necessary to fix the system. He’s totally aware of the need for change.”

Sheldon, 67, who was credited with efforts to reform Florida’s often-criticized Department of Children and Families when he ran that agency from 2008 through 2011, will be taking over the agency shortly after the Tribune’s “Harsh Treatment” series revealed that juvenile wards have been assaulted, raped and lured into prostitution at taxpayer-funded residential treatment centers.

During a 45-minute telephone interview from Florida, Sheldon said he warned Rauner that troubling headlines won’t cease with his appointment.

…Adding… The governor also made some temporary appointments today. Click here for the list.

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Comptroller won’t abide by Rauner union EO

Friday, Feb 13, 2015 - Posted by Rich Miller

* I told subscribers about this earlier today. The Sun-Times rewrote the story…

Gov. Bruce Rauner’s appointee for Illinois Comptroller, Leslie Munger, won’t abide by his executive order setting aside “fair share” union fees without a court order.

It’s a decision that the state’s top lawyer is backing.

“We agree with the Comptroller,” Illinois Attorney General Lisa Madigan’s spokeswoman Natalie Bauer said in an email. “Fair share fees are constitutional under the current law and she must follow the law.”

That’s the same statement the AG’s office sent me yesterday.

…Adding… More from CS-T…

(T)he governor’s executive order does not apply to other constitutional officers, according to Illinois Attorney General office chief of staff Ann Spillane.

“There’s no question that under the current law that fair share fees
are constitutional,” Spillane told the Sun-Times. “(Leslie Munger) can’t ignore validly-signed contracts. She is an independent constitutional officer, an executive order doesn’t change her conduct.”

Munger is charged with enforcing state statute and collective bargaining agreements unless or until a court order says otherwise, the Illinois Attorney General’s Office said.

Hint: There is at least one more EO out there which applies to other constitutional officers.

* The Illinois Federation of Teachers responded after my item was published…

Following a Capitol Fax report that Comptroller Leslie Munger (R) and Attorney General Lisa Madigan (D) will not implement Governor Rauner’s Executive Order regarding fair share fees, IFT President Dan Montgomery issued this statement:

“As we said earlier this week, the Governor’s actions were a blatantly illegal abuse of his power, so we’re glad to see a bipartisan confirmation that the constitution still matters. A democracy does not allow one man to implement his ideological will as he chooses, and so Comptroller Munger and Attorney General Madigan rightfully put the law over politics. As he considers his upcoming budget plan, the Governor would be wise to do the same. Our state has serious financial challenges, and Governor Rauner’s out-of-touch, partisan attacks on middle class families and the unions who give them a collective voice isn’t the way to solve them. Let’s hope we can start working together in earnest next week.”

* From AFSCME Council 31 Executive Director Roberta Lynch…

“It is gratifying to know that two of our state’s constitutional officers are clearly committed to upholding the Constitution. That they include both a Democrat and a Republican shows that preserving the integrity of our democracy isn’t a partisan or political issue. No elected official has the right to place themselves above the law.

“We have said that Gov. Rauner’s executive order was clearly illegal, and meant solely to strip workers of their ability to have a voice in the decisions that affect their lives. State employees throughout Illinois will welcome Comptroller Munger and Attorney General Madigan’s determination that the order should not stand.

“We renew our pledge to work constructively with anyone of good faith to move beyond the governor’s polarizing attacks and begin to address our state’s real challenges.”

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