*** UPDATED x2 *** We need a capital bill
Monday, Feb 11, 2019 - Posted by Rich Miller
* Sheesh…
* CBS 2…
City crews fixing a nearby light pole spotted the cracked beams Monday morning, and reported the problem.
Shortly before noon, the city’s Office of Emergency Management and Communications said all northbound lanes on Lake Shore Drive were closed between Monroe to Grand as a result, and advised drivers to use an alternate route.
The Chicago Department of Transportation said crews were “assessing the situation” on the bridge, and would issue an advisory once they determine how long it would take to make repairs.
Thank goodness it was caught in time.
…Adding… Northbound Lake Shore Drive will be closed in that area at least through tonight, the Sun-Times reports.
*** UPDATE 1 *** Another one today…
…Adding… A longtime reader/commenter sent this pic of Union Station today. Platform between tracks 2 and 4…
…Adding… Local 150…
This afternoon’s failure and emergency closure of a northbound Lake Shore Drive bridge was dangerous, inconvenient, costly, and – most tragically – it was completely avoidable.
Bridge failures are only one of the inevitable results when our critical infrastructure is neglected and left in disrepair. The decay of the Lake Shore Drive bridges is among the most advanced in the City of Chicago, but this is far from the only bridge that is teetering on the brink of failure.
According to the American Society of Civil Engineers, more than 2,300 Illinois bridges are “structurally deficient,” yet Illinois has been without a statewide infrastructure funding bill since 2009. ASCE gave an overall grade of C- to Illinois’ infrastructure, including road, rail, utility and other vital infrastructure
“When the state fails to invest in our infrastructure, we are neglecting a problem until it becomes a crisis,” said James M. Sweeney, President-Business Manager of the International Union of Operating Engineers Local 150. “This neglect can have deadly consequences, as we saw in the Minneapolis I-35 Bridge collapse, which killed 13 innocent motorists. How many must die in Illinois before our leaders treat this as the crisis that it is?”
“This is far from an isolated problem,” Sweeney continued. “The next time you drive under a bridge, look up and ask yourself how safe you feel.”
*** UPDATE 2 *** Reopened…
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* This is huge…
Attorney General Kwame Raoul and Kane County State’s Attorney Joe McMahon today filed a petition for a writ of mandamus in the Illinois Supreme Court challenging the legality of former Chicago police officer Jason Van Dyke’s prison sentence.
The mandamus petition challenges the prison sentence issued Jan. 18 by Cook County Circuit Court Judge Vincent Gaughan following Van Dyke’s conviction for the shooting death of Laquan McDonald. Gaughan sentenced Van Dyke to 81 months in prison based on his conviction for second degree murder and not the more serious charges of 16 counts of aggravated battery with a firearm.
Raoul and McMahon, the special prosecutor who tried the case against Van Dyke, will work collaboratively in asking the Supreme Court to review whether the sentence was proper under the law. In their filing, Raoul and McMahon asked the court to direct Judge Gaughan to vacate Van Dyke’s sentence for second degree murder, impose a sentence on each of the 16 counts of aggravated battery with a firearm, and determine which of the aggravated battery with a firearm convictions involved “severe bodily injury” warranting consecutive sentences.
“After conducting a thorough review of the record in this case and the law, and in consultation with the special prosecutor, I determined that a mandamus action must be pursued in the Illinois Supreme Court,” Raoul said. “I appreciate the work done by the Kane County State’s Attorney throughout this case, and my office will continue to work with his as we seek the Supreme Court’s review.”
“It is important that a police officer was held accountable for criminal conduct,” said McMahon. “But we argued at the sentencing hearing that Jason Van Dyke should be sentenced for the aggravated battery with a firearm convictions. The ability for the prosecution to challenge a sentence is very narrow, but this might be one of those situations.”
If the petition is accepted by the court, Van Dyke’s attorneys will have seven days to file an objection, unless the court sets a different deadline. There is no timeframe for the court to rule on whether it will accept the petition and consider it.
…Adding… The writ is here.
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Elections have consequences
Monday, Feb 11, 2019 - Posted by Rich Miller
* This SJ-R editorial ignores some recent history…
What’s the rush?
That’s the question we have after a measure to increase the state’s minimum wage to $15 an hour over the next six years zoomed out of the Illinois Senate in less than two days. The distressing answer appears to be that new Democratic Gov. J.B. Pritzker is putting politics above policy on a serious issue that has huge implications for the state’s economy. […]
Given how heavily Pritzker campaigned on raising the minimum wage to $15 an hour, it was expected that a proposal to provide a bump would be brought up this legislative session. But the speed at which it has flown through the Senate — with the promise to do the same in the House this week — is troublesome. Business leaders say they have concerns about the proposal and ideas they want to be considered, but aren’t being heard. It’s disappointing that Pritzker — who wants this approved by the time he gives his first budget address Feb. 20 — is pushing for his first major legislative win at the cost of breaking his vow that he would seek compromise before decisions with far-reaching implications are made.
The legislative language for the pay increase was introduced Wednesday and the Senate voted on the measure the next day. Key details are always missed when any legislation is rushed. What repercussions are being overlooked here, and how much will those consequences cost taxpayers when it’s discovered? […]
Policy and politics are always intertwined at the state Capitol. Unfortunately for Illinois, the governor and Democratic leaders are pushing the political in their rush to hastily approve this bill.
A nearly identical bill passed both the House and Senate in 2017 only to be vetoed by the governor. We’re going to see a lot more of those vetoed bills come up for debate this session.
We’ve also had the benefit of watching Chicago’s minimum wage increases take effect and their impact on lower income neighborhoods.
…Adding… A commenter makes a good point…
Also it was punted on in 2014 because the Speaker wanted an advisory referendum, so this is 5 years late.
…Adding… Another good point in comments…
Just because the legislative calendar resets doesn’t mean everyone’s knowledge and recent history are wiped out.
So, it’s not like this isn’t some foreign concept.
* But, yeah, this was most definitely put on a fast track, partly because it was doable early on (because it had passed before) and partly to get it out of the way before the budget address, after which spring sessions tend to go in a million different directions (I’ve talked about other reasons with subscribers).
This early push has been smart politics by the governor. Whether it’s smart policy or not will be known once the raises start to kick in. But he campaigned incessantly on a $15 an hour minimum wage and, as the headline states, elections have consequences, particularly when you have a friendly General Assembly to work with.
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* You will recall that Gov. Pritzker and Attorney General Raoul announced a meeting between the Illinois EPA, the US EPA and Sterigenics yesterday.
I followed up today to see what happened. From the governor’s office…
While there were several issues discussed Thursday with representatives from the U.S. EPA, Sterigenics and the Illinois EPA, this administration must see more immediate, concrete steps taken to secure residents’ health and safety. In the absence of concrete steps, we will work with the Office of the Attorney General to exercise all available legal authority to protect the community.
Sounds like nothing much happened.
*** UPDATE *** From the AG’s office…
Representatives from the Attorney General’s Office participated in a meeting yesterday with representatives from the Illinois EPA, the U.S. EPA and Sterigenics. We continue to urge the U.S. EPA to act immediately and decisively to protect the health and safety of families living near the Willowbrook facility, and we will work with Governor Pritzker’s administration to exercise all available legal authority if necessary. Due to the urgency of this situation, the Attorney General’s Office, along with DuPage County State’s Attorney Robert Berlin’s Office, will file a brief this afternoon urging the federal court to remand the ongoing lawsuit back to state court as quickly as possible.
Not sure what that’ll do, but OK.
* Related…
* Local Elected Officials Call on EPA to Shut Down Willowbrook Sterigenics: Congressman Dan Lipinski and Illinois House Minority Leader Jim Durkin, along with other elected officials, are calling on the Environmental Protection Agency to “immediately shut down Sterigenics in Willowbrook.” Joining Willowbrook Mayor Frank Trilla and other elected leaders, the group plans to host a press conference outside the EPA Region 5 building in downtown Chicago.
* Burr Ridge Calls For Immediate Shutdown Of Sterigenics
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* Greg Hinz…
Chicago and Illinois may be getting back into the race to attract Amazon’s prized HQ2—at least the half that was supposed to go to New York City.
A source close to Gov. J.B. Pritzker says he already has been on the phone to the company in light of a story earlier today in the Washington Post that the company is reconsidering locating half of its second headquarters in New York City, where a proposed location in the Long Island City section of Queens has drawn intense local opposition.
“Gov. Pritzker immediately called Amazon earlier this morning to make a full-throated pitch to attract these good-paying jobs to Illinois and assure them that they would have a strong partner in the governor’s office,” said a high-ranking administration source, speaking on background.
Thoughts?
*** UPDATE *** Press release…
Mayoral candidate Toni Preckwinkle supports Governor JB Pritzker’s efforts encouraging Amazon to reconsider Chicago including South Side locations for its HQ2 site.
“Chicago was initially considered for Amazon’s new headquarters and the economic opportunity is certainly welcome here,” said Toni, who was a part of the original Amazon pitch team last year. “Structured in the right way, this type of development would bring tens of thousands of good-paying jobs to the South Side and provide an influx of new economic activity into some of Chicago’s most disinvested neighborhoods.”
The HQ2 would bring an estimated 25,000 jobs to the City. Recently, Toni has pushed her plan to implement a $15 minimum wage in Chicago by 2021, which attracts the workforce needed for this kind of high-paying employer.
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Rep. Guzzardi rips Ald. Moreno for mailer
Friday, Feb 8, 2019 - Posted by Rich Miller
* Ald. Moreno mailer…
* Rep. Will Guzzardi (D-Chicago)…
Alderman Joe Moreno recently sent campaign literature that included my name and likeness. The alderman did not receive, nor did he request, my consent to appear in this mailer. And while the statement made in the piece is factually correct — he did support my campaign in 2014 — I believe the mailer makes a misleading implication. I have not endorsed Alderman Moreno’s re-election campaign. I have been increasingly troubled in recent years by both his personal and his professional conduct. I urge voters in the First Ward not to confuse my appearance in Moreno’s literature with my support for his candidacy.
Moreno, of course, has a few other problems to deal with.
…Adding… Press release…
Today, in response to State Representative Will Guzzardi’s statement indicating Joe Moreno had not received his endorsement for reelection or even permission to use his likeness in a mailer sent to 1st Ward voters, 1st Ward Aldermanic candidate Daniel La Spata, released the following statement:
“Joe Moreno continues to make news this week for all the wrong reasons. It’s shameful that he’s trying to mislead 1st Ward voters and distract from his record of selling out our ward by engaging in the machine-style politics that have held this city back. But he’s not fooling anyone.
“1st Ward voters see right through his misdirection and excuses. They know Moreno’s failed record and they’ve seen his character, especially over the last week. That’s why in 18 days they’re going to throw him out of office and support my campaign. Our ward needs an alderman focused on making housing affordable and improving our schools, not one constantly distracted by personal problems and controversies.”
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* Press release…
In a report detailing the toll that former Gov. Bruce Rauner’s ideological warfare inflicted on Illinois, the Pritzker administration released a new report today detailing a budget gap for the upcoming fiscal year of $3.2 billion, 16 percent more than the Rauner administration estimated in November.
Digging Out: The Rauner Wreckage Report builds on and extends the work of the Illinois Comptroller’s Office, identifying even worse damage than previously known – particularly the true magnitude of the budget deficit and the backlog of bills – triple the amount of when Governor Rauner’s impasse began. Late payment interest penalties related to Rauner’s impasse have exceeded $1.25 billion, and interest on the refinancing of Rauner’s bill backlog will surpass $2 billion.
“Illinois will need years to dig out of the fiscal mess this administration inherited, and the road to recovery will begin with Governor Pritzker,” said report author Deputy Governor Dan Hynes, who oversees budget and economic issues for the administration. “The Pritzker administration will be honest and transparent about the challenges we face and put forward long-term plans and investments that will get our state on firm financial footing. Despite these challenges, we will propose a balanced budget that invests in education and human services that were decimated under the previous administration.”
The report goes on to detail the human and fiscal consequences of the historic budget crisis, a failed and prolonged dispute with AFSCME, the continued backsliding on pensions and chronic mismanagement of state government. With new revelations of failure coming nearly every week, the report also details previously unreported failures, such as failing to pay the rent for the Governor’s Washington, D.C. office and forfeiting millions in federal reimbursements for OSHA.
Among the countless missed opportunities in the report, the state’s late payment penalties have crowded out other investments. Namely:
* Last year alone, the State paid out more than $700 million in late payment penalties – about what the state spends on the Department of Children and Family Services, or enough to hire at least 7,000 new teachers across the state.
* Illinois’ general obligation bond ratings are the lowest among the states, costing more than $75 million a year in additional interest costs on bonds issued since 2017. That is the equivalent of an additional 25,000 MAP recipients per year since 2017 – or enough for MAP grants for every undergraduate student at SIU-Carbondale and Illinois State every year.
While a generation of future Illinoisans will be forced to deal with Gov. Rauner’s fiscal wreckage, the new administration will use its first budget to light a multi-year path forward to fiscal stability and a new prosperity for Illinois.
Additional details are available in the report.
* From the report…
1. If left unaddressed, the State of Illinois’ general funds budget deficit for FY20 would be approximately $3.2 billion, roughly 16 percent higher than the Rauner administration officially estimated just three months ago.
2. The state’s debt associated with unpaid bills is nearly $15 billion: $7.9 billion in unpaid bills, $5.5 billion in backlog borrowing, $650 million in interfund borrowing and $500 million in estimated backpay for state workers. This is almost triple the amount outstanding before Governor Rauner’s impasse began.
3. Rauner’s failed and prolonged dispute with AFSCME over step increase wages has resulted in a court finding that he improperly withheld wages from state employees. The cost of his anti- union battle may total more than $500 million with the impact of compounded interest penalties.
4. The State’s projected unpaid bill backlog at the end of FY19 is likely to be $500 million more than previously stated, creating longer delays in vendor payment cycles and additional pressure on the provider community – and, most critically, the vulnerable Illinoisans they serve.
5. Interest alone on additional general obligation bonds attributable to the refinancing of Rauner’s bill backlog will exceed $2 billion.
6. Late Payment Interest Penalties that built up during the impasse exceeded $1.25 billion. Continued interest payments will likely exceed $60 million in FY19 in part because this year’s budget maintains a structural deficit that went unaddressed during Rauner’s term.
7. The State’s management and administrative infrastructure has deteriorated significantly, with major fiscal, legal and other critical positions unfilled for years. Reductions in staffing have affected public safety and social service programs.
8. The mismanagement of state contracts has allowed increased costs and lengthy project delays, resulting in, for example, information technology systems that don’t function effectively. This mismanagement severely impacts the administration and delivery of vital services, including healthcare. In some cases, it threatens the flow of federal reimbursement funds. The mismanagement extends to basic government functions like processing revenues and paying rent.
9. Tens of millions of dollars have been and will continue to be allocated to comply with court orders and consent decrees due to management failures to address the state’s most serious challenges.
…Adding… Good point…
Link is here.
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* Amanda Vinicky…
Gov. J.B. Pritzker wasted little time after his Nov. 6 election (when he was still the state’s governor-elect) to start getting down to business.
Just two days later he and running mate Juliana Stratton traveled to Springfield to announce the first of what would eventually be 11 transition committees – working groups comprised of industry leaders who would serve as volunteer advisors on fields ranging from agriculture to education, criminal justice to the environment.
“Juliana and I have said throughout the campaign we wanted to hit the ground running,” Pritzker said at the Nov. 8 press conference.
The working groups’ input would serve as “guideposts” for his administration, Pritzker said, and he wanted that done at least in time for his Jan. 14 inauguration. And while the meetings wouldn’t be public, Pritzker promised the completed transition report would be.
Except the transition committee report has yet to be released. Amanda says we can expect it today, finally. I’ve been hearing the same thing.
For what it’s worth, Gov. Rauner released his transition report four years ago on January 9th.
*** UPDATE *** And it’s now out. Click here.
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*** UPDATED x1 *** Weirdest argument ever
Friday, Feb 8, 2019 - Posted by Rich Miller
* He was using this as an argument against raising the minimum wage. I kid you not…
Sen. Dale Righter, R-Mattoon, said the bigger paychecks earned by minimum wage employees will make them ineligible for certain benefit programs.
I like Righter. I’ve often attended Senate Executive Committee hearings just to watch him spar with former Chairman Don Harmon. I didn’t care what the bills were, I wanted to see the show.
But that floor speech was weird, man. And I agree with Sen. Kimberly Lightford’s response, which was basically I’ve never heard a Republican argue for keeping people on public assistance programs like TANF and foodstamps.
*** UPDATE *** Sen. Lightford’s response…
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* This new lawsuit sounds interesting…
According to the Centers for Disease Control, construction workers have the highest rate of opioid-related overdoses compared to any other occupation in the country. The Chicago Regional Council of Carpenters lost two of its members in the last couple months. [Gary Perinar], who heads the union, said the problems are also costing their union health fund millions of dollars as more and more carpenters struggle with opioid addictions.
“It affects their ability to perform on a job site, it hurts our contractors with respect to productivity, it’s a downward spiral in moving forward in a carpentry career,” he said.
The carpenters union teamed up with the International Union of Operating Engineers Local 150 to file a groundbreaking lawsuit in hopes of holding drug manufacturers, distributors and doctors accountable. They are the first unions in Illinois to take legal action against several pharmaceutical companies, and others.
“The suit accuses the drug companies of fraud, unjust enrichment and conspiracy for the way they falsified research and misled people into believing their opioids were not addictive,” said Ari Scharg, attorney with Edelson PC.
Union attorneys said they are not looking for a settlement. They would rather have the case go to trial to force companies to release information about their drugs.
*** UPDATE *** The complaint is here.
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* Pantagraph…
The Dwight Planning Commission will consider an annexation agreement later this month that could be the first step in bringing a federal detention center for illegal immigrants to the Livingston County village. […]
Immigration Centers of America, headquartered in Richmond, Va., has contacted village officials about an 88-acre parcel of land near Interstate 55 and Illinois 17 for a federal center to house 1,200 men awaiting immigration hearings.
The facility would be managed by U.S. Immigration and Customs Enforcement (ICE). […]
If the detention center is built, Anderson said, the estimated $20 million facility would employ about 280 people.
* I asked the governor’s press secretary Jordan Abudayyeh for a response…
Governor Pritzker strongly opposes any action that would allow President Trump to advance his anti-immigrant agenda. The administration will closely monitor and oppose this effort going forward.
*** UPDATE *** From Fred Tsao at the Illinois Coalition for Immigrant and Refugee Rights…
The for-profit immigration prison being proposed in Dwight has already been rejected throughout northern Illinois and Indiana, from Crete, Joliet, and Hopkins Park in Illinois to Hobart, Gary, Roselawn, and Elkhart County in Indiana. Several of these communities could use an economic boost. Yet the people and elected leaders in these communities recognized that these prisons are wrong on so many levels, including economically and morally. They realize that private prisons leave a trail of devastation as the promises of economic benefit do not materialize. They realize that private prison companies are only interested in making profits, and are all too eager to cut corners to do so, even if it hurts their host community. And they realize that the facility would be used for jailing people torn from their families, workplaces, and communities, people who have no business being locked away, especially for someone else’s profit. We hope that the leaders of Dwight will come to the same realization and reject this proposal.
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*** UPDATED x4 *** Minimum wage roundup
Thursday, Feb 7, 2019 - Posted by Rich Miller
*** UPDATE 1 *** Gov. Pritzker met with the Senate Democrats earlier today and I’m hearing it went well. The Senate Democrats’ spokesman just told reporters he believes the minimum wge bill, SB1, will be run on the floor shortly. Looks like the holdouts weren’t able to stop a roll call. Click here for an analysis of the bill.
…Adding… The bill, as amended in committee yesterday, is now up for debate. Click here to watch.
*** UPDATE 2 *** The bill passed with 39 votes. For some odd reason, the Senate President did not vote.
…Adding… I’m told President Cullerton was “watching the roll call” and didn’t vote. Oops. He’s filing a letter now to reflect his intention to vote “Yes.”
*** UPDATE 3 *** IRMA…
“We are disappointed the Senate did not take the time to address ways to lessen the impact of an unprecedented wage hike, particularly on suburban and downstate employers. We will continue to seek a compromise in the House, and we urge legislators to not rush this issue as they consider the implications this will have on employers and employees in their communities,” said Rob Karr, president & CEO, Illinois Retail Merchants Association.
*** UPDATE 4 *** ILGOP…
Did Governor Pritzker have any intention to return to the ‘agreed-bill’ process? On his first major legislative initiative, that answer is a hard no. This is the same failed form of governing that put Illinois in the poor fiscal condition it’s in. Pritzker is ignoring the concerns of Republican lawmakers and business leaders as he attempts to ram through legislation that would nearly double the state’s minimum wage just so he can chalk up a ‘win’ before his budget address, but at what cost?
Pritzker’s minimum wage hike will crush small businesses and will cost taxpayers at least a billion dollars a year once the plan is fully implemented, and that’s not even a complete estimate. Pritzker’s administration has not disclosed the full amount of increased spending his wage hike would require. Pritzker’s reckless budgeting will cost taxpayers and small businesses dearly. It is yet another Pritzker proposal that will bankrupt Illinois.
[ *** End Of Updates *** ]
* Last night on Illinois Public Radio…
llinois lawmakers may be slowing the process to increase the minimum wage to $15 an hour by 2025. The proposal was expected to be called for a vote and passed out of the Senate as soon as Thursday.
State Sen. Kim Lightford (D-Maywood), sponsor of the plan, said Gov. J.B. Pritzker wanted the bill approved in time for his budget address on Feb. 20. […]
For that to happen, the Senate would need to approve the plan before they leave Springfield this week. With ongoing negotiations, Lightford is not sure that will happen.
“I think anything can still happen around here,” said Lightford. “I think there is some conversations that are definitely going to happen this evening. I don’t know if they’ll yield returns enough for me to move this bill forward tomorrow.”
* Capital News Illinois…
Gov. J.B. Pritzker has said he would like the minimum wage bill, his first major policy push, approved by the time he gives his budget address on Feb. 20. But Senate Majority Leader Kimberly Lightford, a Maywood Democrat and the bill’s lead sponsor, exhibited a more cautious tone after a near two-hour private caucus of Senate Democrats which preceded the Executive Committee hearing.
“If we move the needle (in negotiations) tonight and it’s something that we can take back to the caucus and have a conversation and caucus is comfortable with it, then possibly (it could be voted on Thursday),” Lightford said. […]
The Illinois Restaurant Association, which represents 27,000 restaurants employing 577,000 people across the state according to its president Sam Toia, testified as a proponent of the bill while noting it’s a “tough pill to swallow.”
Toia said the inclusion of a tip credit, which requires employers to pay only 60 percent of the minimum wage to tipped workers, allowed the IRA to support the wage increase.
Subscribers know more.
* IRMA…
“[Yesterday’s Senate Executive Committee] vote was carried out without the concerns of the business community in mind, particularly retailers in downstate and suburban communities who are less able to absorb such a dramatic increase in labor costs compared to their counterparts in the city of Chicago. As we try to strike a balance that will benefit workers and employers across the state, the business community has proposed a regional plan to increase the state’s minimum wage based on the economic realities in different parts of the state. We urge lawmakers to pause and think about the local employers in their districts while working toward a solution that will benefit everyone,” said Rob Karr, president & CEO, Illinois Retail Merchants Association.
* IMA…
“Increasing the minimum wage for Illinois businesses by 82 percent will have a detrimental impact on employers across the state,” said Mark Denzler, president and CEO of the Illinois Manufacturers’ Association. “The IMA and the business community have offered real alternatives to help mitigate the negative impact on job creators in Illinois. This includes a minimum wage based on geography, because the cost of living in downstate Illinois is significantly less than it is in the city of Chicago. We’ve also asked for a longer implementation of the minimum wage increase and more robust tax credits for small employers. Lawmakers should give serious consideration to these ideas instead of rushing through legislation that makes it harder for manufacturers to operate.”
* One Illinois…
A statewide hike in the minimum wage to $15 an hour would have the greatest impact on earnings outside Chicago, according to a new study released Tuesday.
In some ways, that’s not surprising, as Chicago has already moved to raise its minimum wage to $13 over a five-year span set to be completed this summer. But according to “The Regional Impacts of a $15 Minimum Wage in Illinois,” released Tuesday by the Illinois Economic Policy Institute, a $15 minimum wage would still raise annual earnings by $5,000 for low-income workers in the Chicago area, and would have an even greater impact on other metropolitan areas including central Illinois, Rockford, and the so-called Metro East area near St. Louis.
The study projects that a $15 minimum wage would hike annual earnings $8,000 in central Illinois around Springfield, and $7,000 in east-central Illinois including Champaign-Urbana and around Rockford. Wages would rise $6,000 in Metro East.
The study suggests: “These higher incomes … would boost consumer spending at local retail stores, restaurants, and small businesses — offsetting any initial drop in employment or hours.”
It cites how four states have already adopted a $15-an-hour minimum wage, including New Jersey just last week, while 19 states overall moved to increase their minimum wages in some way with the new year. Illinois residents already voted in a 2014 advisory referendum to support a hike in the minimum wage, with 83 of the state’s 102 counties voting in favor.
“Working-class families in Illinois are falling behind their peers in other states,” said study co-author and ILEPI Policy Director Frank Manzo IV. “A $15 minimum wage would boost earnings for more than 1.4 million adult workers across Illinois.
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Mendoza turns sights on MCOs
Thursday, Feb 7, 2019 - Posted by Rich Miller
* Pantagraph…
Illinois Comptroller Susana Mendoza is backing legislation that would require insurance companies that manage much of the state’s Medicaid program to publish more information about how promptly they are reimbursing claims.
The insurance companies, known as managed care organizations, or MCOs, contract with the state to manage the care of individuals enrolled in Medicaid. Among other things, that involves working with patients to make sure they receive routine exams and preventive care, and coordinating services provided by their primary physicians and other specialists.
The goal of a managed care system is to reduce costs and improve health outcomes by preventing the need for many emergency room visits and the complications that can result when patients don’t receive follow-up care.
Last year, Illinois greatly expanded the managed care system to make it available in all counties. But in a statement Wednesday, Mendoza said it is difficult for her office to know what happens to the roughly $63 billion a year the state now spends on managed care after the money is handed over to the MCOs.
…Adding… The article is in error. That $63 billion is the total number from the procurement. The annual spending is far lower.
…Adding… The comptroller’s office says current fiscal year is roughly $14 billion all funds for MCOs.
* From Mendoza’s press release…
“South Shore Hospital has been devastated by delayed and denied payments from the MCOs, and it threatens our ability to keep the doors open,” South Shore Hospital Chief Executive Officer Tim Caveney said. “South Shore cares for the state’s most vulnerable patients. MCOs, as for-profit companies, deny and delay payments to maximize their profits. Today, we are still owed millions by the MCOs and seeing more than 20 percent of our cases denied by the MCOs, for no legitimate reasons. This cannot continue.”
Caveney said he commends Comptroller Mendoza and the sponsors of this legislation for working to bring transparency to the process. “It is only through the good work of Comptroller Mendoza and other policymakers that we can advocate for Illinois’ most vulnerable residents and protect the fragile health care safety net that is the only option for so many,” he said.
House Bill 2117 /Senate Bill 1238 would require MCOs to publish provider payment information on their websites every quarter. The information posted would include:
* Total number of claims received by the MCO for that quarter
* The number and amounts paid to providers
* When the payments were made
* When the claims for those payments were received
* When the service the payment is for was rendered
“The Medicaid program represents a massive area of state spending. This basic level of transparency is needed to protect taxpayer dollars and to ensure MCOs are paying what is owed to providers who serve Medicaid patients,” Representative McSweeney, R-Barrington Hills, said.
“Providers offering care to sick children and others in need are struggling because of payment delays, and they have no reliable way of knowing when their next payment is coming.” Senator Fine, D-Glenview, said. “As more and more state dollars are filtering through MCOs, it just makes sense to require transparency and give some predictability to our health care providers.”
The MCO Transparency Act is a natural outgrowth of Comptroller Mendoza’s Debt Transparency Act that opened the windows on unpaid bills held by state agencies and her other transparency reforms that shed light on the off-shoring of the Governor’s staff; the Vendor Payment Program and the state’s obligations to pay Late Payment Interest Penalties.
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Minimum wage bill surfaces in Senate
Wednesday, Feb 6, 2019 - Posted by Rich Miller
* The minimum wage bill has popped in the Senate and will be heard during an Executive Committee committee meeting at 2 o’clock this afternoon. Click here to read the bill. The Trib has some deets…
Lightford’s bill also proposes a tax credit that would help employers with 50 or fewer full-time employees offset some of the cost of raising wages. Employers would be able to deduct 25 percent of the cost in 2020, and the credit would then scale back annually until hitting 5 percent in 2025. It would phase out entirely for employers with more than five employees in 2028.
The credits wouldn’t be available to franchise owners whose businesses belong to chains with more than 50 workers.
Employers would be able to continue paying a lower wage to workers under 18 if they work fewer than 650 hours in a year.
The minimum wage for younger employees — currently $7.75 per hour — would increase to $8 on Jan. 1 and peak at $13 per hour in 2025.
…Adding… As a commenter points out, the Trib’s language is a bit sloppy. This isn’t a tax deduction. It’s a tax credit on wages paid above the current minimum wage.
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We’re all gonna die!
Wednesday, Feb 6, 2019 - Posted by Rich Miller
* The Tribune with its usual schtick…
Illinois residents are fleeing for more economically hospitable states. They go to Texas, Florida and other Sun Belt states because job prospects are better, tax burdens are lower and the weather is more temperate. The Exodus is real. It’s damaging Illinois. And it may be getting worse.
The warning comes from a fellow sufferer, otherwise known as the governor of New York. Democratic Gov. Andrew Cuomo reports that New York state income tax revenue last year came up short by a projected $2.3 billion. Cuomo partially blames the departure of wealthy residents from his high-tax state in the wake of federal tax reform, which put a limit on the amount of state and local taxes that can be deducted on federal income tax forms.
When New York, already expensive, put an even higher tax burden on residents, some New Yorkers who could afford to leave did so. In Cuomo’s memorable phrase on Monday: “Tax the rich. Tax the rich. Tax the rich. We did that. God forbid the rich leave.”
As of Tuesday we hadn’t seen an estimated 2018 tax revenue figure from Springfield, but a trend’s a trend. There’s reason to anticipate that some affluent, mobile residents of Illinois will reach the same conclusions as their brethren from New York that they’d be better off financially in a different locale. The Wall Street Journal reports that growing numbers of wealthy tax refugees from New York, New Jersey and Illinois are showing up in Miami to buy condos.
* Crain’s New York Business talked to the NY budget office…
In expectation of the [federal tax] change, an untold number of New York taxpayers accelerated income and deductions in the final days of 2017, paying more taxes than the state anticipated so that they could pay less in 2018. Absent that timing-related shift, personal income tax revenue would have risen 4.3% rather than declined, a state budget spokesman said. That suggests the state economy grew stronger last year.
Emphasis added.
Gov. Cuomo was basically just making a political argument against the Republican tax plan and everyone focused on that, rather than what actually happened.
…Adding… The Tribune claims “As of Tuesday we hadn’t seen an estimated 2018 tax revenue figure from Springfield.” The editorial board should’ve pulled up the latest monthly revenue briefing from COGFA. Here it is…
In January, base monthly receipts decreased $379 million. Regular readers of the Commission’s monthly briefing will recall that last January net income tax revenues spiked $925 million not only due to higher income tax rates, but also to taxpayer behavior related to the federal tax reform package. In essence, taxpayers were incentivized to pay their tax liabilities within tax year 2017 to take advantage of the last year of the SALT deductions—prior to new federal limitations. The timing of those accelerated payments caused a jump in estimated payments collected in January. As a consequence, the comparative decline in this month’s income tax performance is not surprising and was quite solid when viewed through the proper lens. This month had the same number of receipting days as the same prior year period.
While monthly gross personal income taxes fell $393 million, or $340 million on a net basis, that decline needs to be put in context given last year’s record January levels.
* From the Center for Tax and Budget Accountability…
In Illinois, each of the income categories we examined saw net domestic out-migration, meaning more people left Illinois for elsewhere in the US than arrived here from other states. On its own, that’s not surprising: Illinois has had negative overall net domestic migration for nearly a century, even when its population was booming, as we explained in our previous post. (One big reason is that Illinois has long relied on international immigration and new births for its population growth.)
But Illinois’ greatest losses aren’t among those making over $100,000 — not even close. From 2012 to 2016, on average, for every 1,000 people making six figures or more, Illinois lost 4.6 of them to domestic migration each year. In contrast, that figure was more than doubled for people making under $25,000, at 10.6 per 1,000, and hit a substantially higher 9.1 per 1,000 for people making between $25,000 and $50,000.
Indeed, Illinois’ migration losses are least severe in what we might think of as the “middle class” categories, between $50,000 and $100,000.
In other words, most people generally leave when they can’t afford to stay.
* And where have the wealthy Illinoisans been moving to? Well, New York, for one…
The top destination for households making over $100,000 is actually the New York City metropolitan area — hardly a low-tax oasis. Houston is second, with the top six rounded out by Los Angeles (where the top state income tax bracket is 13.3 percent, versus 4.95 percent in Illinois); Minneapolis-St. Paul (where it’s 9.85 percent); Denver (4.63 percent) and Washington, DC (8.95 percent). Only then do we reach northwest Indiana, in seventh place.
Overall, high-income Illinoisans’ top out-of-state destinations are a mix of low-tax usual suspects in the Sun Belt (Houston, Dallas, Atlanta, Nashville) and places you’d probably steer clear of if you were moving to find low taxes (four metropolitan areas in California, New York, Minneapolis-St. Paul, Washington). This makes sense: As we wrote in our last post, migration experts generally say that taxes rank low on the list of reasons that people move, far below things like job opportunities, being close to friends and family, or overall cost of living, which is often more affected by housing costs than state and local taxes.
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