* Greg Hinz…
Under the proposal from the Civic Committee of the Commercial Club, the state would increase personal and corporate income taxes by one percentage point across the board, pulling in $4 billion. The group would net another $1.9 billion by beginning to tax retirement income, and $500 million by extending the sales tax to cover more consumer services.
That $6 billion a year in higher taxes would be matched by $2 billion in spending cuts, half in general state spending and half in trims to health insurance for state workers and retirees. But the plan notably does not include any projected savings from cuts in pensions by requiring workers to pay more, accept reduced benefits, or both.
The full report is here.
* OK, first of all, Pritzker ran on an oft-repeated promise to implement a progressive income tax and said he wouldn’t raise taxes on regular folks. He’d have to break that promise. The only way I see him doing that is if he can’t get a graduated tax proposal through the General Assembly and approved by the voters.
Secondly, Pritzker ran hard against a tax on retirement income. So, following the Civic Committee’s plan would require a gigantic flip-flop in order to implement a horribly unpopular tax. Paul Simon Institute..
A recurring idea is for the state to tax retirement income, such as pensions and social security. This idea is widely unpopular, with 74 percent opposing and only 22 percent in favor.
Proposing such a thing is infinitely easier said (from Chicago) than done (under the Dome).
Also, the Illinois Supreme Court decided in Kanerva v. Weems that retiree health care costs are to be treated the same as pension benefits. So, the Civic Committee has a work-around…
However, the ruling does not apply to new employees, and the State could create a separate retiree healthcare plan for new employees with a reduced premium subsidy structure that would be applied going forward. It is unclear how much the State could save from reducing the premium subsidy for new employees, but the State should pursue the implementation of a separate retiree healthcare plan for new employees.
* And their billion dollars in other budget cuts comes from this…
Reduce State spending through operational improvements
Magic wand.
* But, overall, the numbers make some real fiscal sense…
Specifically, it wants to take the current funding plan in which the state pays about $8.5 billion a year and add an extra $2 billion a year. Doing so would get the state to the actuarial level in just four years, and result in 93 percent funding of the pension plans by 2045. By paying earlier, the state would save at least $46 million in interest costs on pension debt over the next three decades—not counting the potential upgrade of the state’s bond rating and more economic growth, the report asserts.
Such “front funding” of pension debt indeed has been recommended by numerous officials lately including Pritzker. But there has been no agreement on where to find the needed revenue.
Of the $8 billion in new revenue and spending cuts, roughly $3 billion will be needed each year to cover the state’s growing structural deficit, according to the committee’s math. Another $1.5 billion would go to pay short-term, non-pension debt; $1 billion into a new reserve fund; and $2 billion into the extra pension payment.
…Adding… From a pal…
Remember when Fahner and the Civic Committee were personally meeting with the ratings agencies to get the state downgraded? Hard to have imagined this day coming. Welcome to reality, boys and girls
Yep.
…Adding… Wordslinger is probably spot-on…
I always thought the civvies obsession with pensions was really about heading off a call for a progressive income tax.
I think this particular tax increase proposal is the same.
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*** UPDATED x1 *** Oppo dump!
Monday, Feb 4, 2019 - Posted by Rich Miller
* The Chicago Tribune on Chicago mayoral candidate Amara Enyia’s personal finances…
Enyia did not report to the IRS $21,000 paid to her by Chris Kennedy’s governor campaign, where she worked as a consultant for several months. […]
Enyia acknowledged she has underpaid her taxes in the past. In March 2017, the IRS placed a $9,668 lien against her for unpaid taxes between 2011 and 2015, according to public records. The tax lien filed with the Cook County recorder of deeds lists unpaid tax balances associated with Enyia’s Form 1040 tax return filings for four years — $3,311 in 2011, $1,288 in 2012, $350 in 2013 and $4,718 in 2015. […]
Also in August 2017, one of Enyia’s student lenders filed a lawsuit against her in Cook County Circuit Court for $17,800 in what it said were unpaid loans from the 2005 school year, when she was an undergraduate at the University of Illinois at Urbana-Champaign. […]
The fines from her first mayoral campaign were not Enyia’s only financial difficulty from 2015. She also faced an eviction lawsuit from the landlord of her Garfield Park apartment in 2015, alleging she had failed to pay her rent. The landlord later dropped the legal action and now says filing the suit was “his error.” […]
Enyia also lists Blue1647 on her resume, stating she has been a “senior advisor” to the organization since 2013, and served as its president in 2017.
The Tribune asked Cambry if Enyia has had a role or title with his organization. “No,” he said.
*** UPDATE *** Response…
At a time when the next mayor of Chicago will face a $1 billion spike in pension payments, those personal financial troubles might seem disqualifying.
But Enyia argued otherwise. She wears those struggles as a badge of honor — not because getting through it was easy, but because her “lived experience informs the values” of equity and justice she brings to a campaign that aims to change the direction of a City Hall she claims is “disconnected from the lived reality” of everyday Chicagoans.
“I’m standing here as a candidate for mayor — not because I’m well off or have lived a perfect life. I’m standing here as a real person who understands financial hardship because I have lived through it myself. I’ve gone to bed having to make decisions about paying a bill or getting a vehicle or paying a ticket or putting food on the table,” she said, surrounded by cheering and finger-snapping supporters.
“When I talk about policies that create generational wealth, it’s because I don’t want generations of Chicagoans to have to experience what I experienced trying to make their way in this city. When I talk about punitive fines and fees and banning the boot, it’s because I know how an unjust government punishes people because they are poor.”
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Pritzker signs EO to help end HIV epidemic
Friday, Feb 1, 2019 - Posted by Rich Miller
* I’m told by Team Pritzker that this will carry no additional appropriated costs. They’re simply spending money that Gov. Rauner didn’t spend, the administration claims.
…Adding… From the governor’s office..
FYI— There is a $1.2 million appropriation this year, as has been the case in the past. In previous years, the spending fell short of the appropriation. In FY17, it was roughly $967K in spending and FY18 was $662K. In FY16, there was no funding appropriated. Our goal is to make sure that the full appropriation is used this year for this effort.
And the administration points out that the more important point is about data sharing to keep people healthy…
Surrounded by health care providers and HIV prevention advocates at the Winnebago County Health Department, Governor JB Pritzker took executive action strengthening the state’s commitment to ending the HIV epidemic that has affected nearly 40,000 Illinois residents.
“While 1,375 people were newly diagnosed with HIV in 2017 alone and unacceptable health disparities in communities of color continue, over the past few years we’ve seen HIV prevention funding dry up, HIV testing rates go down, and HIV prevention and treatment agencies lay off staff,” said Governor JB Pritzker. “Now is not the time to back down from this fight. Now is the time to double down. This executive order defines the state’s commitment to the HIV epidemic and serves as a first step in ensuring the state is good partner in this fight.”
Over the last four years, the State of Illinois failed to partner fully with organizations and advocates that are working to end the HIV epidemic. When there was no state budget, HIV prevention and care agencies across the state laid off staff. This lack of investment came a time when health disparities in HIV are increasing.
With today’s executive order, the state will change course and take advantage of opportunities to improve treatment. With Medicaid providing health insurance for 23,748 Illinoisans living with HIV in FY17, the state-run program is the largest payer for HIV care in the state and a vital partner in ending the HIV epidemic.
Committing to ending the HIV epidemic, Gov. Pritzker signed Executive Order 2019-08, which will:
Invest in Programs and Services to End the Epidemic. Investments will include prevention measures the Rauner administration had discontinued, including funding for increased HIV testing, PrEP, the African American HIV/AIDS Response Act and other public health initiatives. Additionally, people living with HIV along with their healthcare providers will be invested and supported in achieving undetectable viral loads.
Monitor Viral Load Metrics. The Department of Public Health and the Department of Healthcare and Family Services, in conjunction with the contracted Medicaid Managed Care Organizations (MMCOs), shall, within 90 days of the effective date of this Executive Order, deliver a report to the Governor containing a plan for the MMCOs to share data with the State in accordance with all laws and regulations governing health privacy, including a viral load metric, so that the State can monitor progress to ensure Illinoisans living with HIV have access to the healthcare they need to keep their viral loads at zero.
“The AIDS Foundation is proud to see the state of Illinois taking critical steps to end the HIV epidemic,” said John Peller, president of the AIDS Foundation of Chicago. “With a partner like Gov. Pritzker in the governor’s office, Illinois can eliminate health disparities and improve health outcomes for people living with HIV by holding Medicaid accountable for tracking and reporting viral suppression.”
“We welcome Governor Pritzker to the Winnebago County Health Department and the focus of his administration on both the prevention and treatment of HIV infection,” said Dr. Sandra Martell, administrator of the Winnebago County Health Department. “Through this public and private partnership, we can get to zero in Illinois.”
“With HIV affecting so many communities across the state, I’m glad that Gov. Pritzker is combating this epidemic head-on and ensuring Illinoisans living with HIV have access to the health care they depend on,” said Rep. Maurice West (D-67th). “While the state hasn’t always been a good partner, the governor is turning the page and writing a new future when it comes to ending the HIV epidemic once and for all.”
“I thank Gov. Pritzker for coming to Rockford during his first week in office and commend his commitment to partnering with localities to keep our residents healthy,” said Rockford Mayor Tom McNamara. “Cities and counties across Illinois have experienced a painful stretch of disinvestment from the state, but Gov. Pritzker has already shown he’s a different type of leader that cares about every region of the state.”
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*** UPDATED x1 *** Mayoral race odd couples
Friday, Feb 1, 2019 - Posted by Rich Miller
* Tribune…
U.S. Rep. Bobby Rush, a powerful voice in the African-American community, has endorsed Chicago mayoral candidate Bill Daley, he said Thursday night.
“The future of this city is dependent on us to get this election right,” Rush, a Chicago Democrat, said by phone. “I believe that Bill Daley has the national and international connections to drive economic development from the central city to the outlying communities and neighborhoods. We are suffering, and have been suffering, from decadeslong disinvestment in our neighborhoods.” […]
They both supported Chris Kennedy for the Democratic nomination in the Illinois governor’s race. Daley worked as Kennedy’s head of finances, and Rush endorsed the candidate. Later it was reported that Rush’s son and brother were on Kennedy’s payroll. […]
“I have for years and years wanted to see another African-American as mayor of the city of Chicago,” [Rush] said. “However, for this election, I think Bill Daley is the wise choice for my community. He’s tuned in to the lack of opportunities that a significant population of this city suffer under.”
*** UPDATE *** Emil Jones, too?…
* NBC 5…
Long-time proven vote-getter Dorothy Brown passed the torch to Amara Enyia on Thursday, endorsing her in the race for Chicago mayor.
Brown was removed from the ballot for not having enough signatures, and at least five other candidates spoke to her about winning her endorsement.
“The woman that I believe will be the next mayor of the city of Chicago, Amara Enyia!” Brown declared to a room full of cheers.
Reports have claimed for years that Brown has been under the microscope of a federal investigation, and though she was never charged, it brings questions to this endorsement.
* ABC 7…
“It’s time for honesty, integrity, to put that back into city government,” Brown said.
It’s a comment that might strike some voters as strange coming from Brown, who has been under investigation by the FBI for an alleged scheme to sell jobs and promotions in her office. Enyia dismissed those concerns.
“Well, I have no say or control over what the FBI does or the nature of these investigations. I think, again, at the end of the day, we just have to make sure that the process plays itself out,” Enyia said.
* Sun-Times…
Another veteran Democratic operative not aligned with any of the mayoral candidates said Brown’s support among older African-American voters carries “only upside” for Enyia.
“It’s not like anyone is running away with this race. Everyone is within single digits of each other. So, even these small things matter,” the operative said.
The operative noted that there are “multiple options for every voter out there,” a “remarkable” development that is likely to produce “two run-off candidates barely scratching at 20 percent.”
“If I were Amara, I’d try to utilize having Chance on her side. Try to generate some energy in a race that lacks energy with no real momentum candidate. I’m not saying she will be that. But, she has just as good a chance to do that as any of the others,” the operative said.
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* Press release…
Building on a strong team of diverse experts in their fields, Governor JB Pritzker announced the following personnel appointments:
STATE AGENCY DIRECTORS
Dr. Ngozi Ezike will serve as Director of the Illinois Department of Public Health (IDPH).* Dr. Ezike is a board-certified internist and pediatrician who comes to IDPH from Cook County Health, where she has served for more than 15 years. She currently serves as medical director at the Juvenile Detention Center, the largest juvenile detention facility in the country. Previously, Dr. Ezike served as medical director for the Austin Health Center where she actively engaged with the community through health initiatives involving obesity, diabetes, and breastfeeding. She also has delivered inpatient care at Stroger Hospital as well as primary and preventive care in community and school-based clinics. Dr. Ezike is a national policy advisor on juvenile correctional health topics who has presented at numerous local and national conferences for medical professionals and youth audiences alike. She received her Doctor in Medicine from University of California at San Diego and her Bachelor of Arts in chemistry from Harvard University. Dr. Ezike also holds a management certificate from Harvard Business School and is an assistant professor in the Department of Pediatrics at Rush University.
Jaime E. Martinez will serve as Director of the Illinois Department of Veterans’ Affairs (IDVA).* Martinez currently serves as executive director of Illinois Joining Forces, a nationally-recognized statewide nonprofit and public-private partnership that brings services and support to veterans at the community level. A 26-year Army combat veteran, Lieutenant Colonel (R) Martinez was assigned to operational infantry units throughout his career and deployed to Panama, the Gulf War, Iraq and Afghanistan (twice), four of these deployments as a paratrooper with the 82nd Airborne Division. When not serving on the line with troops, he was assigned as a policy advisor in the Office of the Secretary of Defense, Office of the Vice President, United States Senate and the Office of the Under Secretary of the Army. After his medical retirement from the Fort Belvoir Wounded Warrior Battalion in 2010, he has served as a staff attorney for veteran legal aid clinics, general counsel to the Illinois Department of Veteran Affairs, senior counsel to Student Veterans of America (National), supervising attorney to the Illinois Armed Forces Legal Aid Network (IL-AFLAN), and as the executive director of the Illinois Joining Forces Foundation. He received his Master of Arts in Law and economics and his Juris Doctorate from the George Mason School of Law and his Bachelor of Arts in political science from Eastern Illinois University. Martinez was also a distinguished graduate of the United States Marine Corps Command and Staff College.
UNIVERSITY OF ILLINOIS BOARD OF TRUSTEES
Kareem Dale will serve on the Board of Trustees of the University of Illinois.* Dale is currently a director and senior counsel at Discover Financial Services. He previously served as special assistant to the president and associate director of the Office of Public Engagement in the Obama White House and as the national disability director for the Obama-Biden Transition and Obama for America. He founded the Dale Law Group after spending eight years representing Fortune 500 corporations and privately-held companies as a litigation attorney for Winston & Strawn LLP. Dale currently serves on the Chicago Cook Workforce Innovation Board and formerly was a board member of Access Living and board president of the Black Ensemble Theater. He received his Juris Doctor, Master of Business Administration and Bachelor of Science in advertising from the University of Illinois at Urbana-Champaign.
Donald Edwards will serve on the Board of Trustees of the University of Illinois.* Edwards is the founder and CEO of Flexpoint Ford, LLC, a private equity investment firm with $3 billion under management that focuses on health care and financial services. Prior to founding Flexpoint in 2004, he was a principal at GTCR from 1994 to 2003 and an investment banker at Lazard Ltd. During his career, Edwards has served as a director on the boards of more than 20 publicly- and privately-held companies as well as theChicago Park District, the Museum of Contemporary Art, Lurie Children’s Hospital of Chicago and World Business Chicago. He received his Master of Business Administration from the Harvard Business School and his Bachelor of Science in finance from the University of Illinois at Urbana-Champaign.
Ricardo Estrada will serve on the Board of Trustees of the University of Illinois.* Estrada is CEO of Metropolitan Family Services, one of Illinois’ largest and best respected human services agencies. Since joining Metropolitan in 2011, Estrada has helped the agency double its growth in revenue and families served. Estrada has nearly three decades of leadership experience in human services, philanthropy and government. Prior to joining Metropolitan, Estrada served as first deputy commissioner of the City of Chicago’s Department of Family and Support Services (DFSS). Before that, he served as executive director of Erie Neighborhood House in Chicago. He received his Master of Business Administration from the University of Illinois at Chicago, his Master of Arts in social service policy and administration from the University of Chicago, and a Bachelor of Science in psychology from Loyola University.
Patricia Brown Holmes will serve on the Board of Trustees of the University of Illinois.* Holmes is a managing partner at Riley Safer Holmes & Cancila LLP and was formerly a partner at Schiff Hardin LLP from 2005 to 2016. She has practiced law on both sides of the bench in courtrooms at every level, serving as Associate Judge of the Circuit Court of Cook County, assistant U.S. attorney, assistant state’s attorney for Cook County, and Chief Assistant Corporation Counsel for Municipal Prosecutions for the city of Chicago. She received her Juris Doctor and Bachelor of Science from the University of Illinois at Urbana-Champaign.
Naomi Jakobsson will serve on the Board of Trustees of the University of Illinois.* After teaching at the Urbana School District and the University of Illinois at Urbana-Champaign early in her career, Jakobsson went on to represent UIUC and the 103rd House District from 2002 to 2015. In the legislature, she chaired the House Committee on Higher Education and was a member of the Appropriations-Higher Education Committee. Jakobsson previously served as Champaign County Recorder for 12 years, interim director of a domestic violence shelter and the executive director of the University YWCA. She received her Master of Science in teaching English as a second language and Bachelor of Arts in history from the University of Illinois at Urbana-Champaign.
OFFICE OF THE GOVERNOR
Ramon Gardenhire will serve as Deputy Chief of Staff for Policy in the Office of the Governor. Gardenhire currently serves as the vice president of policy for the AIDS Foundation of Chicago, overseeing AFC’s advocacy and policy work at the federal, state and local level. Gardenhire previously served as AFC’s director of government relations from 2011 to 2013 where worked to expanded Medicaid coverage for half a million Illinoisans and helped enact comprehensive sexual health education for Illinois students. Before coming to AFC, Gardenhire worked at the SEIU Healthcare Illinois-Indiana, Federation for Community Schools, Young Democrats of America, National Democratic Committee, The American Academy of Child and Adolescent Psychiatry and the American Academy of Physician Assistants, where he worked on state level political and legislative initiatives. He received his Juris Doctorate from Wayne State University Law School and his bachelor’s degree from Slippery Rock University.
Pat Collier will serve as Deputy Chief of Staff for Federal Affairs in the Office of the Governor. Collier previously served as policy director on Governor Pritzker’s campaign. Prior to the campaign, he was the director of government affairs for the Center for American Progress, a progressive Washington think tank. Collier also spent several years as policy counsel to Senate Majority Leader Harry Reid and Minority Leader Chuck Schumer on the U.S. Senate Democratic Policy Committee. He also served as a regional political director for Obama for America in 2008. He received his Juris Doctor from the Washington University in St. Louis School of Law and his Bachelor of Arts in government from the University of Virginia.
Edwards was originally appointed by Gov. Rauner to the board of trustees.
Other thoughts?
…Adding… From the U of I…
The new board members succeed outgoing trustees Timothy Koritz, James Montgomery and Patrick Fitzgerald, whose terms ended this month, and Sanford Perl. Perl was appointed by Rauner and served since last May, but had not yet been confirmed by the Senate, which allowed Pritzker to withdraw the appointment and select his own nominee.
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