Mautino under fire
Monday, Jan 25, 2016 - Posted by Rich Miller
* Illinois Leaks took a look at Auditor General Frank Mautino’s campaign finance reports from when he was a legislator and found something that at least on the surface looks pretty odd. Over an approximately ten-year period, then-Rep. Mautino spent over $200,000 on gas and (mostly) car repairs at the same gas station in his home town of Spring Valley…
Mautino spent $213,338.31 on fuel and repairs for his campaign vehicle between March of 2005 and December 2015. Even more if you go back a few more years. His campaign itemized expenditure reporting indicates $20,914.20 of the $213 thousand was used specifically for gas purchases during that same time frame, all at the same gas station, Happy’s Super Service Station.
Using the very figures from his itemized expenditures covering ten years and nine months, Mautino’s expenditures average approximately $54.42 of campaign money every day during that time frame for gas and repairs to his campaign vehicle.
There’s a whole lot of hyperbole and speculation in the piece. And $21K over more than ten years on gas is about five bucks a day. But over $20K a year in car repairs?
So, I checked with Mautino, who said that it wasn’t just one car, but several which received repairs and gas.
They weren’t necessarily his cars, Mautino said, but were owned by people who did campaign work.
* But then there’s this…
Out of 387 itemized entries in the time frame referenced, 35% of them were whole numbers. Most accountant’s would look at that as entries that deserve more attention. Having been a mechanic my whole life as well as an FAA licensed Air-frame & Power plant mechanic, I have seen my share of repair bills and let’s just say I have rarely seen any that were round numbers like those we see in the itemized listings. I found 137 such entries out of 387 since March of 2005. I would bet if every one of our readers were to go back and look at their own repair bills there would be fewer than 1% that could find one that was a perfectly round number.
For example:
3/29/2005 – $1,200.00
4/11/2005 – $300.00
6/13/2005 – $1,500.00
4/13/2007 – $1,200.00
6/12/2007 – $1,200.00
12/06/2007 -$1,500.00
1/18/2008 – $1,100.00
2/08/2008 – $1,000.00
6/16/2008 – $3000.00
11/10/2008 -$1,100.00
9/11/2008 – $2,100.00
12/16/2008 -$1,00.00
2/26/2009 – $851.00
3/24/2009 – $600.00
5/08/2009 – $1500.00
6/16/2009 – $800.00
10/06/2009 – $1,000.00
12/03/2009 – $925.00
2/10/2010 – $1,500.00
Mautino said over the weekend that he was putting some info together, but I haven’t heard back. This is a small town shop, so maybe they were just sloppy.
I’ve known Frank Mautino since the day he got to town, and I don’t even want to think about the possibility that something might be hinky. But, he really should get in front of this sooner rather than later.
…Adding… Illinois Times…
Susan Garrett, a former Democratic state senator and representative who now chairs the board of directors for the Illinois Campaign for Political Reform, said that both an investigation and an explanation from Mautino is in order.
“I think there needs to be an investigation,” Garrett said. “I think that Mr. Mautino needs to explain to the public how his campaign funds have been spent. … He needs to explain this, especially because of his new position as auditor general of Illinois. The highest ethical standards are required to hold that position.”
It’s not clear who would conduct an investigation. The General Assembly is supposed to have an inspector general tasked with investigating allegations of wrongdoing by legislators, but that position has been vacant for more than a year.
“Unfortunately, there isn’t anybody who can conduct, as far as I know, right now, because of the vacancy, there’s nobody who can conduct the type of investigation that needs to be done,” Garrett said. “What can easily happen is, Mr. Mautino can come forward and answer some of these questions.”
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* Forwarded by a reader…
Dear Campus Community,
As we begin our spring semester, it is important that I update you on the financial position of the university. Incredibly, the state’s legislature and governor have yet to approve a state budget for FY16. This unprecedented action means that EIU has not received any of our annual appropriation (typically around $40 million), nor MAP reimbursement for EIU students (approximately $9 million). Our state government is literally starving its public universities.
The difficult budget adjustments that were made this past fall equating to reductions of roughly $10 million accomplished our goal of moving us toward a balanced budget for FY16. However, our budget was predicated (as are all state universities’ budgets) on receiving our state appropriation and MAP reimbursements, and that has unfortunately not happened.
As I have told our lawmakers, in higher education we operate in semesters, rather than weeks or months. Our budgets are formulated on an annual basis and in accordance with the academic calendar.
We will continue to provide our students excellent learning, service and research opportunities without diminishing academic excellence during the current semester and for many years to come. EIU is ranked the top regional public university in Illinois by U.S. News and World Report and we are committed to maintaining the focus on student success that earned us that spot.
I am hopeful that a state budget or higher education appropriation soon will be finally enacted. However, we cannot rely on optimism alone and must begin unfailingly to preserve our funds for instruction and employee payroll in the case our appropriation is further delayed or not received at all.
During the first half of FY16, we carefully managed our operating expenses using tuition revenue and cash flow reserves to move us well into the spring semester. Now, we have identified specific measures that will need to be executed to allow us to operate through to the completion of the semester while ensuring our educational mission and preserving funds to meet payroll.
Beginning immediately, we will implement the actions of halting all non-instructional capital equipment purchases; delaying all deferred maintenance and repairs that are either unrelated to safety and security or already paid for; delaying all non-instructional capital projects; halting all non-instructional supply purchases without vice presidential approval; freezing employee-reimbursed travel with minimal exception such as for required federal or governmental purposes; and freezing all hiring that involves FY16 funding. Any exception will need presidential approval.
If an appropriation continues to be delayed further into the semester, we will need to temporarily and/or permanently lay off hundreds of non-instructional employees and mandate unpaid furlough days to others beginning in March. Call backs will occur immediately after an appropriation is enacted and funds have begun to be received by the university.
The actions of the budgetary impasse in Springfield are testing our resolve and fortitude to meet the needs of our students. I call upon everyone’s cooperation to remain strong and positive in attitude for our students and our beloved university as we await our lawmakers and governor to authorize state support for public higher education. Together, we will get through this challenging time and after which, return to our pathway to success.
Sincerely,
David M. Glassman
President, Eastern Illinois University
*** UPDATE *** From the Western Illinois University student newspaper Facebook page…
In a 5-1-1 vote this morning, the Western Illinois University Board of Trustees (BOT) is in favor of the execution of staff reductions. According to resolution No. 16.1/1, reduced enrollment is partially responsible for the staff reduction. “Western Illinois University seeks to implement staff reduction as outlined in Article 24, Article 40 and all additional articles referenced therein,” reads a clause on the resolution. The BOT has officially given the administration authorization to lay off where necessary.
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Not safe for work
Monday, Jan 25, 2016 - Posted by Rich Miller
* I watched part of this go down in real time. Oof.
And no bad language in comments, please, even if you are just “quoting” somebody.
…Adding… DNAinfo Chicago did a story…
“It’s a street fight, and sometimes it gets a little messy, and that’s OK, because street fights are long overdue in Chicago,” Proft said Monday. “I’m sick of the deference that is given and politicians in the city and state think they deserve. They don’t deserve it.”
Reilly, by contrast, called the exchange “unfortunate,” but quickly added, “I take my record on fiscal reform seriously,” pointing to how he voted against Emanuel’s 2016 budget and its record tax increase.
“Dan took some shots at me because I had the audacity to label the governor’s CPS takeover as the sham that it is,” Reilly said.
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* Senate President John Cullerton talked at length today about the state’s broken school funding formula. From a press release…
Illinois has not updated its school funding formula since 1997. The system has resulted in striking inequities across Illinois’ school districts, rewarding wealthier communities and penalizing impoverished communities where students need more resources to succeed.
In addition, Illinois covers barely a third of the total cost of public education, while most states cover half.
As a result, the performance gap that divides rich and poor students, as well as students of color, ranks among the worst in the nation. Illinois is 42nd in terms of the gap in reading scores among these students, and it falls among the bottom 10 in the achievement gap between black and white students.
Cullerton said Illinois leaders must ask themselves two questions: How much are we going to spend on education, and how are we going to spend it?
“If the money isn’t going to help students in need, it doesn’t really matter how much we spend,” he said. “That’s why our funding formula needs to be overhauled.”
To level the playing field among schools, Cullerton said a new funding approach must include some key principles:
State resources should go to school districts based on the needs of students, with more funds to support children who need extra support – those who live in poverty, have special learning needs and who are English language learners.
There should be a single, straightforward funding model and no more special deals for some districts.
The formula must account for a district’s ability to support local schools with local dollars, and accountability must follow those dollars.
Cullerton noted that no one wants any school district to lose money. But in Illinois’ system of winning and losing school districts, there are far too many losers.
“There’s a reason why the current school funding formula has been in place for two decades. It’s hard to change an entrenched status quo. It requires true, dedicated leadership,” Cullerton said. “The question is whether today’s leaders are up to the task.”
* And then he said this…
The governor has linked things together. We don’t have a budget because he’s got his Turnaround Agenda.
So I can link things together, too.
This is a Turnaround Agenda. We gotta change the school funding formula.
Before we appropriate money for education for next [fiscal] year, which starts July 1st, we have to fix this formula.
* The Question: Do you agree with the Senate President that there should be no approps for K-12 until the funding formula is changed? Take the poll and then explain your answer in comments, please.
survey services
*** UPDATE *** House GOP Leader Jim Durkin…
“As a suburban legislator, I remain open to working with the Democrats to fix our archaic school funding formula. At the same time, I hope this means Democratic leadership is now ready to work with us on other structural reforms to put Illinoisans back to work and to bring the budget impasse to a close.”
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* Gov. Bruce Rauner just told reporters that I used to work for Speaker Madigan.
I have no idea where he got that, but I did work as a House page for less than a month back in 1985. Perhaps that’s what he’s talking about. I have no idea.
Lee Daniels tried this dirty trick on me back in the day. It didn’t work then because it wasn’t true.
…Adding… This became a topic during the Q&A when somebody asked Rauner about my column based on revenue growth numbers that Rauner himself supplied to members of the General Assembly. He said the numbers were “way” off, even though they were his own numbers, then went on his false tirade about me having worked for Madigan.
…Adding More… From “walker” in comments…
This isn’t some kind of looping tactical misdirection. Rauner simply doesn’t know any better. He heard someone say it, and it fits into what he wants to believe.
Rauner didn’t lie about the Cullerton pension deal — he actually believed it said what he said about it. He just doesn’t pay attention to any details that don’t support his overall narrative.
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* With more than 200 Chicago shootings since the year began, this is very bad news, indeed…
The mounting toll from the Illinois budget impasse is now reaching vital programs that effectively keep youth out of the juvenile justice and child welfare systems. On Feb. 15, Children’s Home + Aid will suspend crisis intervention services for runaways and youth at risk of delinquency in Englewood and West Englewood.
The services are delivered through the state-mandated Comprehensive Community-Based Youth Services (CCBYS) program, which has been operating without payment since July 1. Children’s Home + Aid was on track to serve an estimated 70 youth this year through the CCBYS program on the South Side of Chicago. The suspension follows months of CCBYS program reductions by providers across the state, a direct result of the budget impasse.
“This is the first of many program suspensions we are forecasting around the state,” said Andrea Durbin, CEO of Illinois Collaboration on Youth, a statewide network of organizations delivering programs, services and advocacy for at-risk youth and families. “Providers tell us they are expecting to make significant cuts in services and staff in February and March. These are the same providers who have been working in good faith since July 1 to meet the needs of kids and families in crisis in every county in Illinois. But without a budget or the possibility of payment any time soon, we will see more and more of these program suspensions and eventually every CCBYS program will close.”
The consequences of the suspension of the CCBYS program in Englewood and West Englewood – communities in Chicago marked by unemployment and violence – are significant and sharply undercut commitments from Gov. Rauner and the General Assembly to increase community-based services. Youth will be turned away from successful, low-cost community programs, and increase the pressure on already strained and expensive systems such as the justice system, schools and child welfare.
CCBYS provides crisis intervention and family reunification services for almost 7,000 youth, aged 10-17, statewide, roughly 3,000 of whom are runaways, locked out of their homes, or otherwise at-risk. These mandated services are provided through CCBYS at an average cost of $1,883 per youth, per year, far less than foster care. As programs suspend operations due to lack of funding, those youth served by CCBYS will be referred directly to DCFS, and many will be pulled into the foster care system.
“DCFS only has about 2,350 youth, aged 10-17, in out-of-home care now,” said Durbin. “The child welfare system is simply not equipped with enough hotline workers, investigators, case managers, or foster homes to respond to an influx of adolescents coming from the CCBYS program. The lives and safety of children and youth will be at risk.”
The fallout from the budget impasse is growing, according to an ICOY survey of CCBYS and Homeless Youth providers across the state carried out at the beginning of January. Forty percent of those CCBYS providers responding have reduced staff and decreased or restricted services since July 1. Among Homeless Youth providers responding, 50% have cut staff and 36% have decreased or restricted services; one program has closed. Based on the survey, ICOY projects significantly more cutbacks, including closings, as soon as February and March.
The likely damage to the most vulnerable youth and families, while actually increasing long-term financial costs to the state and local communities, comes as Gov. Rauner has pledged to reduce the Illinois prison population by 12,000 men and women over the next decade, focusing on rehabilitation programs rather than incarceration.
The budget stalemate also threatens new legislation that went into effect Jan. 1 designed to support at- risk youth with services that can keep them out of the juvenile justice system. Under P.A. 99-254, alleged delinquent minors under 13 are meant to be provided CCBYS services, rather than be held in a detention center. Another new law, P.A. 99-456, calls on community providers to assist schools with interventions to minimize student suspensions and expulsions. Now, with resources squeezed, there are questions about whether the legislation can be effectively implemented.
“The Governor and the General Assembly have had some great ideas about shifting youth from high-end care to community-based services,” said Durbin. “But the lack of a state budget is placing children and youth at risk, starving community-based providers, and haphazardly forcing program closures and suspensions. It’s difficult to see how we make progress as a state under these circumstances,” she added.
Like I said earlier today, you also gotta walk the walk.
…Adding… From Emily Miller…
Hi Rich.
The bevy of press conferences held by the governor and minority leaders last week addressing issues ranging from government takeovers of CPS to public pension reform gave the press a chance to forget the ongoing damage the budget impasse continues to have on real people across Illinois.
Friday, Lutheran Social Services of Illinois closed 30 programs, cutting off services for 4,700 Illinoisans, and laying off 750 staff. In response, the governor said he was “frustrated,” but did not seem any more willing to make getting to a fully funded budget his number one priority.
Without a budget, Illinois continues to operate like a plane on autopilot running on fumes, and children and families are the ones getting shoved off to lighten the load.
Here’s this morning’s dose of devastation: by now you’ve probably seen the press release from ICOY announcing the suspension of a program called CCBYS that provides crisis-intervention for at-risk youth on Chicago’s south side. These are kids who have been locked out of their houses, who have fled dangerous homes, or who are at risk for being placed into the juvenile justice system.
This is not a “Chicago issue.” CCBYS programs exist in every county in this state. Each day the governor and lawmakers fail to agree on a budget, children in every house and senate district come one step closer to being left alone with no one to help them. By February and March, the program will be a shell of what it was, and eventually, without funding, every CCBYS program will close.
Until now, CCBYS providers have been able to step in and advocate for the safety and well-being of those children. Children in immediate physical danger received compassionate, professional and immediate care that kept the number of CCBYS cases referred to DCFS for further intervention down to about 11 per month. There’s no immediate formal plan in place to deal with those children, but ultimately it’s a DCFS issue, and the program closure will increase the referral of these types of cases by 2,200%, according to a memo ICOY released earlier this year. In case people need reminding, that hotline referral number is 1-800-25-ABUSE.
And here’s the thing- it’s not rocket science. This is what happens when you don’t have a budget for seven months. We were warned that children would be hurt if a budget was not prioritized. We knew that the children abandoned when CCBYS programs closed would end up costing the state even more when they’re placed in foster homes or institutional settings.
In fact, ICOY issued a memo in September, during our third month without a budget, warning that children would be hurt, citing not only the financial cost of this program suspension, but also the dangerous physical and psychological cost to Illinois children closing these programs would have.
But instead of passing a budget, the governor and leaders continue to sit back and play games that, for them, have only political ramifications. For Illinois children, the games grown-ups are playing are life-threatening.
Last Friday Illinois walked away from 4,700 vulnerable Illinoisans. This morning, Illinois abandoned 34 children in one neighborhood. Anyone who doesn’t get that the children and families in their neighborhood are next isn’t paying attention.
Emily Miller
Policy and Advocacy Director, Voices for Illinois Children
Co-Coordinator, Responsible Budget Coalition
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* Press release…
Champaign County Clerk Gordy Hulten announced today that ongoing objections to several Presidential Candidates are not anticipated to be resolved by the State Board of Elections in time for ballots to be prepared and voting tabulators to be programmed for the opening of By Mail and Early Voting on February 4, 2016. The ballots and machines will be available no later than February 17, 2016 – the beginning of Grace Period Registration and Voting – by which time most challenges seeking to remove candidates from the ballot should have been decided and final ballot certifications issued by the State Board of Elections.
“It is possible that ballots may be available prior to February 17, and if so, we will notify the media and voters through a release, on our website and social media,” said Hulten. “It’s unfortunate that the compressed filing calendar for Presidential candidates and the circumstances of these objections will likely delay our receiving final certifications from the State Board of Elections and affect the opening of voting statewide. Once final certifications are received, we will move as quickly as possible to finalize ballots, program machines and open for voting.”
Voters attempting to vote early during the period when ballots are unavailable will be offered an application to vote by mail, or the opportunity to vote early when ballots are available.
*** UPDATE *** Maybe not…
Objections were withdrawn Monday to nominating petitions of four presidential candidates in Illinois’ March 15 primaries, leaving three candidates — Republicans Ted Cruz and Marco Rubio and Democrat Hillary Clinton — who still must overcome ballot access questions.
Those questions might be answered by next week, said Bernadette Harrington, deputy general counsel to the State Board of Elections. Because there are fewer objections to deal with, Harrington said, an earlier-than-expected meeting of members of the state board could be scheduled for next week to rule on the pending objections. Then, the ballot could be certified, which would allow election authorities statewide to print ballots in time for the planned Feb. 4 start of early voting.
“The hope is to have the certification early next week so that it does not impact the start of early voting,” Harrington said.
Sangamon County Clerk Don Gray had issued a news release earlier Monday saying that the start of early voting could be delayed until mid-February because of the many objections to presidential candidacies the state had to resolve. Gray said state elections officials made it clear at a clerks’ conference in Champaign last week that the start of early voting would have to be pushed back.
But Gray said he would now wait for more guidance from the state board.
And…
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* AFSCME Council 31 has responded to the governor’s letter to state workers last week. Have a look…
* Setting the Record Straight
* Bargaining Comparison
To me, anyway, the bargaining comparison comes as little surprise. Rauner wants the world and AFSCME wants to hold on to what it has and even expand it. They’re asking for a $1,000 pensionable bonus in the first year and a 2.25 percent raise in the second year, with 3 percent raises in years three and four.
…Adding… From Anders Lindall at AFSCME…
Rich – So you’re aware, the documents you obtained and published are two of three emailed yesterday to AFSCME-represented state employees. With respect to the Bargaining Comparison, I’d emphasize that the union’s very modest proposals described here (agreeing to the governor’s bonus framework in year 1, reasonable wage increases in the out years, a willingness to pay a little more for health care, etc) reflect our latest positions, but these are NOT final offers. We’ve consistently indicated that we want to continue the negotiating process to find common ground. – Anders
* Meanwhile, here’s an e-mail from a reader…
Hi Rich,
Didn’t necessarily want to put this on a blog post and you probably know already, but my husband, a state police retiree, has been contacted about “exciting opportunities” to come back and work temporarily for the state. He was also told to let others know about it.
* She asked that her name not be used, but she transcribed the message the person left on her home voicemail. I’ve changed her husband’s name here…
“Hi Joe, this is Lydia from Premiere Staffing Services. Please call about a great opportunity I’m working on for the State of Illinois.”
* The reader suggested that “Joe” call Lydia back…
She told him if he knows of “anyone looking for work, Premier is lining up lots of folks.” She didn’t say for a lock-out, my husband said she seemed to indicate the need if there was a strike.
Joe did tell me that many times in the past, agencies would be required to hurry up and put together plans for different situations that never came to fruition.
That’s true.
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* Well-reasoned, thoughtful and destroys several of Gov. Rauner’s arguments…
January 21, 2015
The Honorable Bruce Rauner
Governor, State of Illinois
207 State House
Springfield, IL 62701
Dear Governor Rauner,
I enjoyed meeting you personally as we celebrated Martin Luther King Jr. Day and I especially appreciate the expression of support you offered to me regarding Chicago State University. In the spirit of engaging that support, I am writing in response to the memo issued by your Deputy Chief of Staff Mr. Richard Goldberg in hopes of clarifying any misstatements.
The overall tone of the Mr. Goldberg’s memo calls into question the academic integrity of CSU. To that end, I would ask your administration to consider our independent accrediting body, the Higher Learning Commission (HLC), and their 2014 decision to grant Chicago State University a full 10-year reaccreditation. I can assure you this reaccreditation is no rubber stamp and did not come easy. A committee of respected higher education experts thoroughly reviewed every aspect of our operations and decided that CSU had earned the highest reaccreditation a university can receive.
Most of the critiques in Mr. Goldberg’s memo have one thing in common; they are based on a mistaken construct that Chicago State University is comparable to more traditional universities. The truth is that CSU serves a unique and diverse population and a simple “apples to apples” comparison to other universities with traditional student bodies paints an inaccurate picture of our impact and our student’s successes.
Unlike other state universities, the majority of students at CSU are transfer students. This is an important fact because the graduation rate numbers quoted in your memo are drawn from the Integrated Postsecondary Education Data System (IPEDS), a federally generated metric that does not count transfer students. For example, in the cohort of 6820 students referenced in your memo, only 9% would be counted by IPEDS. Full-time and part-time transfer students make up two-thirds of our student body and are a much more accurate metric by which to measure student progress at CSU. For example, the graduation rate for full-time transfer students in the 2008 cohort referenced in Mr. Goldberg’s memo is 51%. That graduation rate, however, is not reported by the federal system. It is also worth noting that 42% of our students are first-generation college students and 55% come from homes below the poverty level. Experienced educators will tell you that students with this background can and do succeed, but need an increased level of academic support services, and are therefore more expensive to educate.
CSU is an extremely important educational outlet for the south side of Chicago, in large part because it provides an affordable pathway to a degree for the city’s African American communities. It is implied in your memo that CSU is graduating white students at 83%, a much higher number than students of color. This misleading statistic fails to recognize that within the 2008 cohort referenced, six white students began their degree, and five completed. For point of reference, CSU issues on average 800 degrees annually, graduates 1 out of 2 African Americans receiving a bachelor’s degree from a public university in Chicago and 1 out of 6 in Illinois.
Perhaps the most troubling portion of Mr. Goldberg’s memo is that your staff refers to CSU as a university that “rejects reform.” Governor Rauner, nothing could be further from the truth. As I write this letter, I have been President of CSU for less than three weeks. One of the things that attracted me to the position was that I saw a university emerging from a significant transformational change and poised to soar. Over the past five years, CSU made difficult decisions to prioritize academic quality and integrity over pure enrollment numbers. That decision led to several students being dismissed, but helped ensure that our student body is comprised of those ready to succeed in college.
Furthermore, over the past four years CSU has reduced audit findings by 55% and improved both compliance and transparency. Your memo references unaccounted for university property. I would like to highlight that the amount referenced accounts for less than 1% of all university property. Several other issues cited including past lawsuits which are still in appeal and have not been paid by the university to date, claims made in the media by former employees who were terminated, and improperly inflated administrator head counts are all issues in the past. CSU is poised to move forward.
Over the past week your office has raised several concerns, many of them legitimate and worthy of further discussion about the need for reforms. Since January 2015, CSU has cut 10% of its work force and trimmed administrative costs by over 20%. In addition, administrative salaries have been frozen, we have reduced travel, delayed payments to vendors and cut back on purchasing throughout the year. We have also not filled vacancies and consolidated both positions and academic programs. We fully recognize the state of finances in Illinois and we have worked and continue to work to tighten our belts.
I also feel it is important to express that one of my top goals as I enter CSU is to increase the amount of private revenue coming into the university. I know that we cannot simply continue to look to the state for increased funds and must do more on our own to maximize outside investment. Like any university looking to cultivate more revenue, we are in the early stages of a broader effort that we feel will in time result in a reduced reliance on state funds.
As for necessary reforms to areas of spending such as procurement, workers compensation, pensions and cutting costs, we remain ready to work with you and your staff on any proposals that will help create a more efficient, transparent and effective public university system for Illinois students. However, the work of enacting meaningful reform takes time, and time is simply not a luxury the CSU campus community has at the moment. As you have likely seen in the news recently, the lack of state appropriations to both higher education and to the MAP grant program has created a significant shortfall in our operating budget. At the moment, we are struggling to complete the current semester and the fate of multiple public universities after the current semester is uncertain.
On behalf of the students, faculty, alumni and staff of Chicago State University, we stand here today ready to work with you to make meaningful reforms in higher education and we are willing to lead by example. With that said, we cannot enact such reforms if we do not have the ability to function.
Each day I meet students who are working every day to lift themselves out of poverty and get the education they need to build a better life for themselves and their families. These students are the lifeblood of our university and they will be the victims if public universities are allowed to collapse under the weight of financial pressure. I implore you, as a lifelong educator, a minister and a fellow seeker of change to provide the funding CSU and its sister universities need to operate through the fiscal year so that we may be in a better position to help your team achieve real results that will benefit every student and parent in Illinois.
Sincerely,
Thomas J. Calhoun Jr., PhD
President, Chicago State University
That white graduation rate debunk is particularly strong.
…Adding… Rauner himself used the debunked white graduation rate line during his Q&A with the media today. Dumb move.
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Rauner clarifies, says they’re in agreement
Thursday, Jan 21, 2016 - Posted by Rich Miller
* I feel like I’m watching a tennis match…
The following statement can be attributed to Lance Trover, communications director for the Governor’s Office:
“Administration lawyers have spent weeks negotiating the best possible pension reform language with members of Senator Cullerton’s staff.
“Central to the Cullerton model is that future salary increases are part of the employee election, and that to ensure the proposal passes Constitutional muster current law must be changed to make the employee’s election permanent. On that core principal, the Governor’s legal team and the President’s legal team have agreed, and this is the model that the Governor and Republican leaders endorsed today.
“We hope the Senate President still supports this agreed upon model, originally developed by his office. If he no longer supports it, we urge him to immediately introduce new pension reform legislation that he thinks will be approved by the Supreme Court, and the governor will be open to considering it. Now is the time to act.”
* Background from Greg Hinz…
Cullerton’s plan would give workers a choice between having their pay frozen for pension purposes or retaining the 3 percent annual increase they now get that’s designed to offset inflation. Over Madigan’s opposition, Cullerton’s plan never got anywhere in the House.
…Adding… Rauner’s Q&A from earlier today…
And this from Fox Chicago…
“In order for President Cullerton’s bill to be constitutional, salary increases have to be taken out of collective bargaining. This is a key point. Salary increases come out of collective bargaining. So the union has nothing to do with it in the future,” Rauner said. “And each individual employee makes their own choice: do they want their salary increase in the future to be pensionable or not? It’s their choice and not the union’s choice. President Cullerton has agreed with that. That is necessary, and a requirement in order for this to be constitutional.”
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* Press release…
Illinois House Speaker Michael J. Madigan issued the following statement Thursday after Gov. Bruce Rauner and Republican legislative leaders proposed changes to Illinois’ pension system:
“I have shown my commitment to achieving pension reform on a number of occasions over the last several years. The Illinois Supreme Court has ruled that the General Assembly cannot alter earned benefits. With the court’s guidance, we now have a clearer framework of what cannot be done in any future pension reform proposal. To avoid wasting taxpayer dollars on lawsuits, it’s important that we carefully consider the court’s direction when we take up pension reform proposals as we work to address the state’s unfunded pension debt while ensuring that retirees who have worked hard for decades will receive their retirement benefits.
“The Governor said today that in exchange for negotiating on pension reform, he will continue to demand changes that will drive down the wages and standard of living of middle-class families. Despite the Governor’s desire to drive a wedge between Democrats in the House and Senate, neither President Cullerton nor I will agree to make changes proposed by the Governor that will hurt the middle-class families of our state.”
So, not a “no” on doing some sort of pension reform, but it sure looks like a definite “no” on this…
*** UPDATE *** The governor’s people flatly deny this, by the way. They say this is indeed Cullerton’s plan…
The following statement was released by Senate President John J. Cullerton regarding Republican leaders’ pension proposal:
“The governor called me this morning to say he was going to back my ideas for pension reform. The plan he outlined at his news conference isn’t what we talked about. It’s not my plan. It goes beyond what we discussed and beyond what I support.
“We apparently still have a fundamental disagreement over the role of collective bargaining in this process, in the sense that I think collective bargaining should continue to exist and the governor does not.
“I look forward to working with the governor to clarify these issues and appreciate his willingness to consider other ideas and just how far he’s moved away from his original pension reform ideas.
“But this is not my plan, not the plan we discussed this morning, and it does not have my support.”
*** UPDATE 2 *** From the We Are One Illinois union coalition…
“Another day, another hostage for Governor Rauner in his war on the working people of Illinois. Yesterday it was public schools, for more than a year it has been the state budget, and today it is retirement security for teachers, first responders and other public service workers.
“Rather than address his failure to enact a state budget or take a new approach by showing a willingness to work together, the Governor promotes cutting constitutionally-protected pensions in an effort to further attack working people and their unions he considers his political enemies.
“Rauner’s latest proposal is irresponsible and divisive. Slashing retirement security by forcing workers to choose between two diminished options is clearly unconstitutional. And to no one’s surprise, poison pills in the governor’s plan would wipe out the right of working people to have a collective voice on the job on behalf of their families and those they serve.
“Our coalition has always advocated a responsible solution to the pension funding issue that is both constitutional and fair. We urge the governor to abandon unconstitutional attacks and put the people of this state ahead of his political agenda. His disregard for working families is causing irreparable harm to children and communities across Illinois.”
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*** UPDATED x1 *** More like this, please
Thursday, Jan 21, 2016 - Posted by Rich Miller
* From the Rock River Times…
They’re called Joint Purchasing Agreements, and Illinois Municipal League Executive Director Brad Cole says they’re a great way for local governments to find taxpayers cost savings by banding together to get discounts for a variety of things.
“It could be regular supplies, it could be maintenance related to roads or construction, it could be vehicles.”
Cole says the state could partner with local governments to find even bigger cost savings.
“They do it right now for vehicle purchases, particularly squad cars for police departments. The state can coordinate these themselves and offer it to different municipalities or different organizations.”
Cole says the state could expand on current programs to join with local governments.
*** UPDATE *** From CMS…
Hi Rich,
I saw your post on joint purchasing and want to highlight efforts already taking place under the state’s Joint Purchasing Program.
CMS offers local governments and state agencies the opportunity to participate in the Joint Purchasing Program; this cooperative purchasing is designed to save time and money when purchasing many commodities, services and equipment. Both the state and local governments can benefit from this joint purchase structure. When bulk-purchasing power from multiple state agencies is enhanced by the increased sales volume added by local governments, we can push per-unit costs down.
Some examples of commodities and services offered include:
Automobile repair parts
Computer hardware and software
Defibrillators
Mowers and tractors
Rock salt
Vehicles
Please let me know if you have any questions.
Thanks!
Meredith Krantz
Deputy Director & Public Information Officer
Illinois Office of Communication and Information
Department of Central Management Services
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* I fired up the same feed we used yesterday. The press conference is scheduled to begin at 10:30, but in the meantime some Chicago Democrats are calling on the release of surplus TIF funds to help out CPS. Follow both topics right here with ScribbleLive…
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* Bloomberg…
Chicago State University, a 5,200-student institution founded in 1867, is considering drawing up a financial exigency plan, equivalent to college bankruptcy, as soon as next month, according to Tom Wogan, a spokesman. The move would be a first step to keep the school afloat as it hemorrhages cash to cover the loss of state funds. All options are on the table to get through the current semester, including missing payments on $12 million of outstanding tax-exempt bonds, he said.
The school, with a 70 percent black student body, would become the most visible casualty of the stalemate between Republican Governor Bruce Rauner, a former private-equity executive, and legislative Democrats, with leaders from Chicago, over a spending plan for the year that began July 1. While other public universities can draw on endowments or raise funds from alumni as the impasse persists, that’s not the case at Chicago State, whose students count on federal and state grants. […]
Chicago State is among colleges nationwide that are grappling with limits on their ability to raise tuition as the pool of graduating high-school seniors shrinks and students balk at taking costly loans. About two-thirds of its students are from Chicago or the surrounding area. It ranks highest among Illinois colleges in awarding bachelor’s degrees to black students in the physical sciences and health professions, according to its website. About 70 percent of attendees relied on financial aid in 2013. […]
To stay open, the university board would have to declare fiscal exigency next month so it has more flexibility to adjust contracts and potentially bond payments, Wogan said. Louisiana State University contemplated such a step because of proposed budget cuts in 2015, which led it to scrap a municipal-bond deal because of a buyers’ revolt.
“If we can’t make payroll and we can’t do a number of other things, everything about the university’s functions are at risk,” Wogan said. “The biggest short-term concern right now is operation funds to get through the semester and get through the fiscal year.”
*** UPDATE *** From the twitters…
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Our sorry state
Thursday, Jan 21, 2016 - Posted by Rich Miller
* Subscribers were told about the likelihood of executive orders, etc. last week…
STRATEGY: Several political observers tell Illinois Playbook that Rauner will make a series of headline-grabbing announcements in the run-up to next week’s State of the State address. That may include his signing more executive orders and proposing new legislative packages.
Democrats contend the governor is panicking because he can’t point to actual progress from his first year in office. They paint Rauner as the private equity guy who is treating Illinois like a company he has taken over, stripping it down and allowing some pieces to fall off without regard to who or what they are. And they say he wants to divert attention away from the fact that Illinois is still operating without a budget.
Republicans contend it’s a frustrated Rauner who is putting a spotlight on Democratic legislative leaders Mike Madigan and John Cullerton — and Rahm Emanuel, who are asking the state for bailout money without addressing issues that got us there in the first place. “Are we supposed to stand by and watch CPS burn to the ground? What are Chicago Democrats doing about Chicago schools?” state Rep. Ron Sandack said. They would say they have proposed SB1, a funding formula overhaul, which is still being negotiated.
The inherent fallacy here is that the Democrats are not cooperating with the governor and the Republicans know they couldn’t pass that takeover/bankruptcy bill even in the best of bipartisan times as long as the mayor opposed it.
So, the governor is making the best of a rotten situation by using clever PR to shift attention and blame away from him, and the Democrats are making the best of it by making Rauner the bad guy.
None of this gets us to a budget, by the way. Just the opposite.
…Adding… Expect more of this as well…
Government, and amassing power within it, has become Madigan’s business, Rauner told the crowd.
“He has created an unethical empire,” Rauner said. “He has become a multi-millionaire from government. He is all about power for power’s sake. He gets his money from that power. He thinks about the upcoming elections, not about good policy. That is just a fact.”
Rauner added that he will not cave in to Madigan’s demands, and that he is willing out outlast his political opponent.
“I have a job to do,” Rauner said. “No one will stand in the way of me doing it. Michael Madigan and I are mirror images. He is about politics and making money from power. I am about working for you.”
…Adding More… Text message from a pal…
Last week it was the screen pass, yesterday it was the flea-flicker, today they try the quarterback sneak on 3rd and long. Heck of an opening drive to start the second quarter.
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* Sun-Times…
Within hours, however, Chicago Public Schools CEO Forrest Claypool was declaring the proposal is far from a lifeline. He also hinted strongly at a federal discrimination lawsuit against the state if school funding inequities are not corrected.
“This is more of a smokescreen to hide the fact that the State of Illinois continues to discriminate against Chicago school children by providing just 73 cents for every dollar that children in the rest of the state receive on average,” Claypool told the Chicago Sun-Times. “It’s an unequal funding system for some of the most vulnerable and impoverished children in the state. It’s immoral and it won’t withstand scrutiny.”
Pressed on whether CPS was contemplating a lawsuit against the state, Claypool said, “No comment. No comment. No comment.”
* Claypool’s official statement has the same sort of hints. Here it is, with emphasis added…
Gov. Rauner’s proposal is frankly a sideshow to the real issue: the need to fix a school funding system that is separate but unequal. Instead, the Governor and Republican leaders want to preserve a school funding system that systematically discriminates against Chicago children. CPS represents 20 percent of state enrollment but gets just 15 percent of state funding, even though 86 percent of our children live in poverty.
The missing 5 percent represents nearly $500 million, the exact amount of our budget gap. Our children’s futures are just as important as those in the suburbs and downstate, and I hope Governor Rauner takes constructive steps to treat them equally.
In fact, while Republican leaders choreograph this distraction, CPS is taking steps to fix everything within our fiscal control and keep as much money in our classrooms as we can. CPS and the CTU leadership are working feverishly to reach a deal that would cut costs while preventing midyear layoffs, the district is going to market with $875 million in bonds and we’re on the verge of even deeper cuts to the bureaucracy.
Instead of offering a reckless smokescreen that distracts from the real financial problems facing CPS, the Governor should pass a state budget that treats CPS students equally with the rest of the state.
*** UPDATE *** Could the lawsuit be statewide?…
The Faith Coalition for the Common Good is supporting Senator Andy Manar’s efforts to change the school funding formula.
SB1 is back in the spotlight as school districts across the state are still struggling to make ends meet despite more money being appropriated for K through 12 education.
The latest data shows the current formula is failing minority students as districts with high minority populations get, on average, two thousand less per student.
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A few last thoughts for the day
Wednesday, Jan 20, 2016 - Posted by Rich Miller
* A somewhat critical editorial from Crain’s…
We’re one year into the administration of Gov. Bruce Rauner, but somehow we’re still in campaign season. The latest never-going-to-happen idea: a state takeover of Chicago Public Schools and, possibly, a trip to bankruptcy court.
This plan, unveiled today in semi-baked form by the Republican governor’s legislative lieutenants Christine Radogno and Jim Durkin, doesn’t have a prayer of passing a Democratic-controlled General Assembly, so why propose it?
Even if a state takeover had a shot at passage, there are reasons to doubt it’s a good idea. Other cities have tried the “run it like a business” model with unintended and sometimes disastrous results. Google “Flint Michigan” and “water” for details.
Let’s be clear: CPS is a train wreck. The Board of Education approved an irresponsible budget with a $500 million hole in it. The Chicago Teachers Union is seeking hundreds of millions of new money but isn’t willing to add a penny to the employees’ pension contributions. The system keeps borrowing to meet short-term needs, and the cost of that borrowing is only going up. And CPS—which has been led by a merry-go-round of CEOs for the past five years under Mayor Rahm Emanuel—is so incompetent that it can’t account for the desks and chairs that were in the 50 schools it closed two years ago.
Against this backdrop, the idea of a takeover has a certain appeal. But a takeover by whom? The state of Illinois? Springfield, now entering Month 7 of a disastrous budget impasse, hardly seems the right place to look for guidance on effective governance.
* Somewhat less serious…
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Madigan doubles down on Flint accusation
Wednesday, Jan 20, 2016 - Posted by Rich Miller
* From a press release…
House Speaker Michael J. Madigan released the following statement Wednesday after allies of Gov. Bruce Rauner announced plans for a state takeover of Chicago schools and to allow CPS to declare bankruptcy:
Seven months into a new fiscal year, the state still has no budget under Republican Governor Bruce Rauner, and it’s because he’s more interested in driving down the wages and standard of living of middle-class families than working together to solve our state’s problems.
Today, the sponsor of his new proposal admitted that this new plan is an attempt to force Governor Rauner’s agenda of destroying the middle class onto the Chicago Public Schools. Governor Rauner’s proposal could also help him achieve his goal of taking money away from public schools in order to establish more charter schools. Taking one unelected school board appointed by the mayor and allowing it to become a board of unelected and unaccountable bureaucrats appointed by Republican Governor Bruce Rauner is not a step in the right direction.
Governor Rauner hopes to use a crisis to impose his anti-middle class agenda. Republicans’ ultimate plans include allowing cities throughout the state to file for bankruptcy protection, which they admitted today would permit cities and school districts to end their contracts with teachers and workers – stripping thousands of their hard-earned retirement security and the middle-class living they have worked years to achieve. When Detroit was granted bankruptcy protection, retirement security was slashed for employees and retirees. That is not the path we want to follow in Illinois.
The disaster in Flint, Michigan, is a very timely example of how reckless decisions just to save a buck can have devastating consequences on children and families. In April 2014, under Republican leadership, the state of Michigan appointed an emergency manager to Flint to address a financial crisis, and switched Flint’s water source to the Flint River, which had long been known to be a dirty river. An earlier study showed that water from the river could have been drinkable had it been treated at a cost of about $36,000 a year. A crisis created by a Republican takeover could have been averted at what amounted to a mere fraction of a fraction of the state’s budget. That is not the path we want to follow in Illinois.
* And here’s Senate President John Cullerton’s response, in case you missed it in our live coverage post…
“This is not going to happen. It’s mean spirited and evidence of their total lack of knowledge of the real problems facing Chicago Public Schools. The unfair treatment of pension systems by the state is the immediate cause of CPS’ financial problem. That situation ought to be addressed rather than promoting this far-fetched notion that the state is somehow in the position to take over Chicago schools. This ridiculous idea only serves as a distraction from the state’s problems that these two state leaders should be focusing on.”
…Adding… Goldberg’s two cents…
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* The Sun-Times on the new GOP plan for Chicago…
Radogno denied the idea is to dismantle traditional public schools in CPS in favor of charters.
“That is absolutely not true,” she said.
“It allows the state Board of Education to remove the current Chicago Public Board of Education and create an independent authority for CPS until the State Board of Education determines that CPS is no longer in financial difficulty,” Radogno said.
Durkin added that 24 states already allow local governments to declare bankruptcy, as the Republicans’ still-to-be completed legislation would do.
Sen. William Delgado, chairman of the Illinois Senate Education Committee, criticized the move.
“The governor has forced the state into a financial crisis, and now he wants to take over one of the biggest public school systems in the nation,” Delgado said in his written statement.
“I find it hard to believe that this decision has the best interest of CPS students and families in mind,” the statement continued. “We need to get CPS back on level ground, not force it into bankruptcy and then allow the governor to treat it like another business.”
I don’t think anyone’s talking about forcing CPS into bankruptcy.
* Press release…
Ald. Raymond Lopez (15) issued the following statement in response to the Republican proposal to take over the Chicago Public Schools:
“With this maneuver, Gov. Rauner has laid bare his true intentions. His purpose in stubbornly refusing to work with CPS, even at the risk of costing the jobs of thousands of teachers, is now clear: to force our public schools into layoffs and bankruptcy, in order to promote his political agenda.
“Bankruptcy and some type of state receivership could allow the Governor to vacate agreements and contracts such as pension obligations, health insurance and other benefits, and above all, the collective bargaining rights of teachers and other public employees.
“Instead of the GOP trying to highjack city government and our public schools and public services, long-term, attainable solutions for state funding are required.
“I support Sen. Andy Manar’s education funding bill as being fair and equitable for both the city and entire state. This bill is a good starting point to begin to repair the damage rather than inflicting more harm.
“What we need now is an open and honest discussion based on the goal of providing quality education through our neighborhood schools throughout our entire city.
“As a duly elected representative of the people of my neighborhood and of my city, I vigorously object to the Governor’s undemocratic attempt to disenfranchise the people of our city.
“Chicago should not allow itself to be bullied by Gov. Rauner and the Illinois GOP.”
Ald. Lopez represents the 15th Ward, which includes Back of the Yards, Brighton Park, Gage Park and West Englewood. There are seven elementary schools and three high schools in his ward.
Disenfranchise Chicagoans?
Huh?
…Adding… From 47th Ward in comments…
And everyone is taking the bait. Sigh.
Rauner can’t run Springfield. Why on earth would anyone think he’s serious about taking over CPS?
This is all a distraction to divert attention from the looming state budget disaster. This ploy is ridiculously transparent. I have a better chance of taking control of Google than Rauner has of taking over CPS.
*** UPDATE 1 *** Oy…
Well, at least CTU and Rahm have something in common these days.
*** UPDATE 2 *** 47th Ward was prescient…
“Giving control of our children’s future to a governor who can’t pass his own budget, who is racking up billions in unpaid bills, and who is crippling higher education across the state makes zero sense,” Emanuel spokeswoman Kelley Quinn said. “With just a few weeks to go before delivering a second budget address without having passed his first budget, it’s clear the Republicans in Springfield are trying desperately to distract from their own failures.”
*** UPDATE 3 *** Sen. Heather Steans…
State Senator Heather Steans (D-Chicago 7th) issued the following statement today on the announcement by Republican legislative leaders that they plan to file legislation allowing for a state takeover of the Chicago Public Schools:
The Chicago Public Schools educate nearly 400,000 students, almost 90 percent of them from low-income households. Five percent are homeless. Almost one-fifth are learning English as a second language. Yet against the odds and starved of resources, the state’s largest school district is achieving higher test scores and graduation rates for its students.
But the irresponsible agenda Gov. Rauner’s legislative allies rolled out today isn’t a reflection of those realities; it’s another politically motivated distraction from what the state and its public schools really need.
They portray their plan as merely a matter of fairness – adding CPS to an existing law allowing for state intervention in certain districts. But this could not be farther from the truth.
Illinois’ current intervention law does not require or even allow bankruptcy; in fact, Illinois does not permit any unit of government to declare bankruptcy, and the current situation in Michigan demonstrates the serious pitfalls of rushing to release governments from their financial obligations. In addition, CPS educates more than 14 times the number of students in the largest district currently eligible for state intervention. The State Board of Education is simply not equipped to manage such a large, complex and diverse system of schools.
The bottom line isn’t changing: Illinois needs a balanced budget, and Illinois’ public schools desperately need adequate and fairly distributed resources. Today’s announcement distracted from these difficult but essential objectives. If the governor and his allies in the General Assembly want to treat Chicago students fairly, they should start by supporting parity for CPS in state education funding and contributions toward teacher pensions.
Emphasis added.
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