* Check out the governor’s Q&A with reporters today. Classic BVR, from his goals as governor to his bashing of Illinois’ current economic climate…
…Adding… Tribune…
Gov. Bruce Rauner unveiled a new program Tuesday aimed at helping minority and women entrepreneurs grow their businesses, saying African-Americans didn’t come to Chicago “because we had a great welfare system or a great minimum wage,” but because they were seeking opportunity that has since “bled away.” […]
Asked if the state could make a greater impact by recruiting large, established businesses into struggling minority communities, Rauner said the focus instead should be on improving opportunity.
“The money follows the opportunity, and that’s what we got to get across,” Rauner said. “Here’s what’s happening. African-Americans are in Chicago in massive numbers. They didn’t come here because we had a great welfare system or a great minimum wage. That’s not why they’re here. That’s not why the people of Illinois are here. We’re here for opportunity.”
He continued: “Chicago used to be one of the greatest cities in the world, one of the fastest growing, most economically dynamic cities in the world. That’s why we’re all here. That’s why my ancestors, my grandparents — great grandparents — came to Chicago. That’s why our families are here. That opportunity is being bled away. It’s not about a government program. It’s not about more government money. We are not competitive in Chicago. We’re not competitive in the state of Illinois.”
* AP…
Gov. Bruce Rauner says he thinks General Electric bypassed Illinois for its new headquarters because of the “trajectory” of the state’s fiscal problems. […]
Rauner says company officials didn’t want to go from “one failed state to another.” He cited Connecticut’s property taxes, income tax and pension problems.
It’s amazing to me that he can say stuff like this without ever thinking that maybe, just maybe, he’s at least partially to blame for our alleged “failed state” situation.
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*** UPDATED x1 *** Message received?
Tuesday, Jan 19, 2016 - Posted by Rich Miller
* Dan Proft, writing in the Tribune over the weekend about how he wants Bruce Rauner to get tough with AFSCME and other unions…
This is Rauner’s moment of truth.
Even more important than a fiscal-year budget is sending the unmistakable message to AFSCME (and its SEIU and teachers’ union cohorts) that the balance of the nearly 13 million residents of Illinois not in their ranks do not exist as spare parts for the machine that spits out compensation packages 27 percent higher than their own.
If that involves a siege on Springfield like Wisconsin Gov. Scott Walker confronted in Madison, so be it.
If that requires layoffs and outsourcing of state work to contractors, so be it.
If that requires losing an election, so be it.
Rauner ran for governor saying he is not a politician. He said he is a businessman who will make the difficult decisions to turn around the state he loves.
We’re about to find out if that’s true.
* Well, today Turnaround Illinois, which is funded mainly by Gov. Rauner and Sam Zell and has as its officially stated purpose “To support state legislative candidates who support Gov. Rauner’s bold and needed reforms, and to oppose those who stand in the way,” made a big contribution to Liberty Principles PAC…
Proft is Liberty Principles PAC’s chairperson and treasurer.
Rauner has essentially just outsourced a huge chunk of his legislative campaign agenda to Proft.
*** UPDATE *** To put this into some perspective, the governor just gave Proft more money than either of the GOP chamber leaders have on hand…
House Speaker Michael Madigan and Senate President John Cullerton controlled a combined $13.25 million warchest to begin 2016.
Heading into a critical election year of House and Senate races, the Democrats who lead the Illinois General Assembly have assembled a combined $13.25 million warchest to begin 2016, state campaign finance records show.
Veteran House Speaker Michael Madigan had $8.5 million to start the year in the four campaign funds he controls, records showed, while Senate President John Cullerton had $4.75 million in the three funds he operates.
That compares to $1.2 million in campaign funds controlled by House GOP leader Jim Durkin and $1 million in campaign funds authorized by Senate GOP leader Christine Radogno, according to reports filed with the State Board of Elections.
To put this in further perspective, Proft now has more than twice as much money stockpiled than Durkin and Radogno combined.
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* Pearson…
Democratic U.S. Sen. Dick Durbin has endorsed Highland Park Mayor Nancy Rotering over former U.S. Rep. Brad Schneider in the race for the Democratic nomination in the North Shore 10th Congressional District.
“Nancy combines fiscal responsibility with true progressive values,” Durbin said in a statement.
Rotering called Durbin a “role model” and “the epitome of a public servant for over 30 years.”
Durbin’s endorsement, while significant, also shows the split among the Democratic establishment over the race. While he backs Rotering, Schneider has the backing of top House Democratic leadership, including Rep. Nancy Pelosi.
* From the Durbin press release…
“Nancy brings to this race an extraordinary record for a first-time Congressional candidate. As Mayor of Highland Park she successfully confronted ComEd when local families were suffering from unreliable service, balanced the City budget five consecutive years and enacted real reforms,” stated Durbin. “Her most noteworthy achievement gained national attention when she passed one of the nation’s first local assault weapons ban and successfully defended the ordinance against an onslaught of gun lobby attacks all the way to the U.S. Supreme Court. While the Republican-led Congress refused to respond to the nation’s gun violence, Nancy Rotering and her City of Highland Park showed real leadership. Nancy combines fiscal responsibility with true progressive values.“
* From the Pelosi release…
“Brad Schneider is a relentless defender of women’s rights and LGBT equality. His legislative vision is a direct reflection of his genuine passion for helping others. We need strong progressive voices like Brad’s in Congress. That’s why I’m proud to endorse his candidacy,” said Democratic Leader Nancy Pelosi.
“I am humbled to receive the endorsement of Leader Pelosi,” said Schneider. “I’m looking forward to returning to Congress to work with Leader Pelosi on the critical issues facing Americans.”
Campaign Manager Magen Ryan said, “Our campaign is in a better spot than ever less than 60 days from the election. This week Brad received the unanimous endorsement of the AFL-CIO following the recent endorsements of SEIU Illinois State Council, the Lake County Federation of Teachers, and many other unions throughout the Tenth District. The support of labor along with seven members of the Illinois Congressional Delegation, including Tammy Duckworth, more than 60 other of Brad’s former colleagues in Congress, the Democratic Congressional Campaign Committee, Secretary of State Jesse White, Cook County Board President Toni Preckwinkle, and more than 30 other local elected officials demonstrates the breadth and depth of the support of his candidacy.”
*** UPDATE 1 *** Rotering is now airing her first TV ad of the primary. Click here.
*** UPDATE 2 *** From our pals at Comcast…
Nancy Rotering for Congress
Democratic Candidate for US Congress in IL CD 10
Agency: Dudley Media, Philadelphia
Total Buy: $122,892
1/19/16 - 2/8/16
Networks: AEN, BRVO, CNN, DISC, ENT, ESPN, FAM, FOOD, FX, FXNC, GOLF, HALL, HGTV, HIST, LIF, MNBC, TBSC, TNT, TWC, USA
Dayparts: 5-9A, 9A-4P, 4P-7P, 7P-midnight, Sa-Su 11A-7P
Syscodes / Systems / $ by system
1863 / Libertyville / $36,528
5126 / Highland Park / $41,418
5553 / Gurnee / $44,946
Total Buy: $122,892
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* I’ll use this post for reactions to governor’s AFSCME impasse statement. First up, Sen. Gary Forby…
“This latest inaction from the governor is just another step in his plan to make Illinois a right-to-work state. AFSCME has been able to negotiate contracts with governors for the past 30 years from each party in good faith. Just as with the budget, this governor is sidestepping negotiations and using the back door take employee benefits.
“Governor Rauner has said before that he wants chaos. What he fails to comprehend is the situation he’s creating means mothers and father can’t provide for their families, sick people go without health benefits and more people are steered to state-sponsored benefits instead of being able to provide for themselves. Now the governor’s hand-picked Labor Relations Board will decide whether or not the governor negotiated in good faith. I don’t think the people he appointed will decide against him. Looks corrupt if you ask me.”
Whew.
* Rep. Christian Mitchell…
“Today’s action by the governor is yet another example of him holding working families hostage to his far right political agenda. By walking away from the bargaining table, he continues to show an unwillingness to compromise.
“Public service workers – the people who help keep us safe, provide critical services for our most vulnerable, and respond to emergencies – deserve wages and working conditions that reflect the importance of the work they provide our state. They are often our neighbors, our friends or our family members. Today, Governor Rauner turned his back not just on our public service workers, but our entire state.
“I call on the governor to rejoin the bargaining table, negotiate in good faith, and find a solution that is fair to both our state employees and the citizens of Illinois.”
Despite an ongoing battle with the Chicago Teachers Union (which is backing his primary opponent to the hilt yet again), Rep. Mitchell has been endorsed by the Chicago Federation of Labor, Illinois AFL-CIO, AFSCME Council 31, SEIU Illinois State Council and others.
* Rep. Lou Lang…
“It is extremely disappointing that Governor Rauner has terminated negotiations with AFSCME. Apparently he wants to provoke a confrontation and disruption of state operations. That would mean the loss of vital services relied upon by millions of Illinois residents every day, as well as further instability in the state’s business climate.
“That is why I and other lawmakers sought to enact a fair process for contract resolution through neutral arbitration last fall. Maintaining public services is critical, and such a process needs to become law.”
* Rep. Rob Martwick…
“I am extremely disappointed that Gov. Rauner is using procedural maneuvers in an attempt to force a strike by state workers. This action contradicts his promise to negotiate in good faith. The state workers have negotiated in good faith, have recently offered compromise on wages, health insurance and other important issues. Most importantly the employees have been and continue to be willing to negotiate.
Today, we see Gov. Rauner’s true intentions. His rhetoric during his campaign for governor was about forcing a strike, and today it is clear that he’s been on this path all along. His agreements with other bargaining units cover a very small portion of state employees. Now, along with his failings as governor to propose a balanced budget and find solutions to our state’s financial problems, he is putting Illinois taxpayers at risk of losing access to vital government services, causing more suffering for decent, hard-working families.”
So far, I’ve received no press releases from any Republican legislators or from the two caucus leaders (or the Democratic leaders, for that matter). Keep an eye on this for updates, however.
…Adding… Rep. Kelly Cassidy…
This morning, Governor Rauner declared an impasse in negotiations with AFSCME, the union that represents over 38,000 child protection workers, nursing aides, correctional officers, human service workers and other state employees. Prior to this week, there was no indication negotiations would be broken off, and AFSCME has expressed their willingness to continue to bargain and work to find common ground.
Declaring an impasse creates chaos and is not the path to reaching a fair agreement. Negotiations are inherently difficult, but dedication to working through differences and achieving compromise is critically important.
Our state employees that help to keep us safe, respond to emergencies and care for our most vulnerable deserve more than bad faith negotiations and brutal cuts. Their work is vitally important, and putting in whatever effort it takes to reach a fair agreement is equally important.
I strongly urge all parties to recommit to sincere negotiation and work through the process to achieve compromise. While it is unclear what the result of an impasse could be, a strike or lockout would be devastating. Our social service system has already faced crushing difficulties under the budget impasse, causing many organizations to reduce services or shut their doors. This would further reduce critically important services for our most vulnerable citizens.
* Sen. Dave Koehler…
Having already shutdown the state budget process, Gov. Bruce Rauner is now walking away from labor talks with the state’s largest employee union.
On Friday, his office said there is an impasse in negotiations, even though labor groups claim they are willing to keep working toward a compromise.
“The Governor’s asking for an impasse to be declared by the labor board is disappointing. If this is a step to force a last and best offer on state workers, it will add even more chaos to state government,” said State Senate Dave Koehler (D-Peoria). “This is why I supported SB1229 – to engage both sides into interest arbitration as a way to settle the labor contract with AFSCME. Interest arbitration has been used successfully with police and firefighters in Illinois for many years, and would offer a reasonable way to end this dispute.”
Though the Rauner administration has contended it has reached settlements with all other unions representing state employees, in fact, no settlements have been reached with the six other unions representing more than 25,000 state employees, including state troopers and thousands of child and home health care providers.
“What we don’t need is to force state workers out on strike. The situation with not having a budget is bad enough. Let’s not make things worse,” said Koehler. “Compromise is hard work. I urge all involved to look for ways either through arbitration or mediation, to resolve the differences between the administration and the union.”
According to AFSCME, this past week, the union presented three separate proposals to the State, in which wages and health care were modified to better align with the administration’s framework, and an IDOC proposal was altered to create a joint labor-management committee to improve rehabilitative opportunities for inmates.
* Sen. Linda Holmes…
State Sen. Linda Holmes issued the following statement in response to Gov. Bruce Rauner’s Unfair Labor Practices Act petition to the Labor Relations Board against the largest state employee union.
The move is the first step in the possible declaration of an impasse in negotiations, a move which could force employees to strike.
“Governor Rauner assured the state employees who protect children, provide care to veterans and the elderly, staff our prisons and maintain our infrastructure that he would not walk away from the bargaining table or provoke a strike,” said Holmes, D-Aurora. “We can see now that he does not intend to honor that promise.”
The governor’s office has reached settlements with unions representing about 5,000 state employees, but negotiations have continued with six unions representing more than 25,000 state employees, including the American Federation of State, County and Municipal Employees (AFSCME) Council 31. Among employees still waiting for a settlement are nurses, state troopers and thousands of home health care and child care providers legally defined as state employees for purposes of collective bargaining.
“This is picking a fight at a time when both sides should be working to reach an agreement,” Holmes said. “AFSCME has shown a willingness to negotiate in good faith, and Governor Rauner should do the same.”
*** UPDATE 1 *** Our first leader’s response in either party is from Jim Durkin…
“It is disappointing that after eleven months and 24 bargaining sessions there is no agreement on a new labor contract with AFSCME. Based upon the latest offer from AFSCME, it does not appear that they are sincere about negotiating with the administration and are not willing to make concessions regardless of the state’s ability to pay. I am stunned that AFSCME is still clinging to their 37.5 hour work week when 17 labor unions representing state employees agreed to a 40 hour week with the administration. Governor Rauner is correct in seeking a decision from the Illinois Labor Relations Board to determine whether there is an impasse. Governor Rauner has negotiated in good faith with AFSCME but at some point this must be brought to a conclusion for both taxpayers and state employees.”
*** UPDATE 2 *** Senate Republican Leader Christine Radogno…
“Governor Rauner has clearly demonstrated he can successfully negotiate labor contracts by compromising with unions. He has reached agreement with 17 labor unions which have been ratified by more than 80 percent of union members. He has also shown that he is a true advocate for taxpayers at the negotiation table — something AFSCME may not be accustomed to – but it’s the undisputed reality of our financial crisis.”
*** UPDATE 3 *** Press release…
State Representative Ed Sullivan (R-Mundelein) has expressed his unhappiness at the news Gov. Bruce Rauner has been forced to ask the Labor Relations Board to weigh-in on contract negotiations between his administration and the American Federation of State, County and Municipal Employees (AFSCME). Good faith negotiations agreed to in September appear to have stalled, causing the Governor to ask for the Labor Relations Board to rule on the matter of an impasse.
“It’s very unfortunate that the Governor has had to call on the Labor Relations Board to make a determination about an impasse with AFSCME,” said Sullivan. “Despite many claims to the contrary, Gov. Rauner has worked tirelessly to negotiate in good faith through 24 bargaining sessions and has already come to agreement with 17 other unions representing state employees. AFSCME doesn’t seem to understand that Illinois taxpayers are unable to handle the $3 billion in additional costs they are demanding.”
*** UPDATE 4 *** Cook County Board President Toni Preckwinkle…
“It is my view that leaders of government and its employees should work together for the public good. In our state, this often means reaching a mutually agreeable resolution in contract negotiations with collective bargaining units of government employees.
“Declaring an impasse as a way to pressure public service workers is, in my view, short-sighted and does nothing to engender trust between parties.
“In Cook County, we negotiated and have reached agreements with almost 100 separate collective bargaining units. I would urge the Governor to rethink his position, return to the negotiating table and respect the collective bargaining process.”
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RNUG referees
Friday, Jan 15, 2016 - Posted by Rich Miller
* Our esteemed commenter “RNUG” (which stands for Retired Non Union Guy) takes a look at the governor’s latest move on AFSCME…
Reading the documents carefully is an interesting exercise.
Reading the list of concessions, I get a bit confused. While maintaining the status quo may not be a good thing, a lot of what they maintain are concessions are nothing more than agreeing to the status quo. I’ll admit there are a couple of items I would not have conceded. There are some others, from both sides, that just seem plain silly to me. And to the public who will read most of it as gobbly-gook, I’m sure all of it will seem crazy.
I did find the switching between 3rd person and 1st person a bit disorienting in some of the FAQs. That removes the appearance of objectivity that we expect in such answers.
Maintaining the $1000 bonus and 2% increase are the same thing is disingenuous. The amounts are different and will have different financial consequences. I understand they are trying to convey that, with both pensionable, there is a similar Fiscal impact on future salaries and budgets, but they phrased it poorly.
While trying to talk all around it, the State is, in fact, doubling the health insurance cost for the current coverage levels. They also mislead somewhat on the health insurance; if we stick with ACA terms, it would probably be more accurate to call it a gold plan instead of platinum.
From what I can see here, I’m guessing the health insurance is the major sticking point. If I was AFSCME, I would agree to the wage freeze in exchange for status quo or a slight percentage increase in the health insurance. IMO, minimizing the health insurance increases has more impact on the employees than gaining raises.
The list of concessions referenced above is here.
…Adding… Our “Rookie of the Year” commenter “Honeybear” offers some thoughts…
I just want to ask if posters could be respectful as we go into this labor unrest. This is going to be a horrifying time for a lot of families of public servants, mine included. Most of the folks I work with here live paycheck to paycheck, not because of financial irresponsibility but because life is more expensive. No one I work with drives a luxury car, has a large home, etc. The folks I work with are just solidly middle class working folks. The lucky ones have a spouse that works in the private sector. The ones that are really going to hurt are the younger single workers who are just starting out. God bless them, every one has said they won’t cross the picket. I ask that posters be respectful during this time. It’s horrific to face financial ruin. Please remember that you’re talking about fellow Illinoisans. I had sincerely hoped we wouldn’t be here.
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* From Council 31…
AFSCME and the public-service workers we represent have worked hard to reach a fair agreement with the Rauner Administration, and we’re prepared to continue to do so. We reject the claim that the bargaining process is at an impasse.
It’s regrettable and damaging to the public interest that the governor has chosen a confrontational path. Just as Gov. Rauner is holding the state budget hostage, his “my way or no way” demands of state employees are the obstacle to a fair agreement. Rauner’s demands would force workers and their families pay double to keep their health care—making the Illinois state health plan the nation’s worst for any state workforce—while getting zero wage increase for four years. Instead of fairly compensating all workers, he wants to base bonuses on unknown criteria open to political favoritism. And the governor wants to wipe out protections against irresponsible privatization of public services. These are just some of more than 200 extreme demands the administration has made during this process.
Although we have serious disagreements with the governor’s positions, we reject the administration’s charge that we have not been “seriously negotiating.” The members of AFSCME’s rank-and-file elected bargaining committee have consistently responded to the administration’s demands with fair counterproposals. We’re committed to continuing to do so, and we don’t want disruption of the public services we provide. That’s why last summer we supported the option of both sides going before an independent arbitrator if our differences couldn’t be resolved by bargaining.
Unfortunately, the administration’s ongoing campaign of false claims about these negotiations makes compromise that much harder to achieve. Among their many misleading statements, the administration has never offered AFSCME the same terms as other unions. Some unions received vastly better terms on health insurance than those offered to AFSCME. Many others did not agree to a four-year pay freeze. We know of none who agreed to change hours of work or reduce overtime or holiday pay for employees who go above and beyond to serve. In any event, no union can be forced to accept the terms of other unions that have different circumstances and concerns.
The administration claims to want innovation, yet it has rejected our union’s proposals to work together to improve inmate rehabilitation programs in state prisons, rejected our proposals to ensure nondiscrimination in the hiring of women and minorities, and rejected our proposals for labor-management collaboration to improve public services.
Governor Rauner is wrong to walk away and try to end negotiations. Public-service workers who keep us safe, protect kids, respond to emergencies and care for the most vulnerable want to keep serving their communities, and they want to do their part to reach a fair agreement, but we can’t do it alone.
*** UPDATE 1 *** From the IFT…
100,000 IFT workers stand with AFSCME
WESTMONT, IL – In response to Governor Rauner’s move to declare impasse in negotiations with workers represented by AFSCME, Illinois Federation of Teachers (IFT) President Dan Montgomery issued the following statement:
“Governor Rauner’s actions today prove once again that his priority is forced conflict, not progress. The 100,000 workers of the Illinois Federation of Teachers, some of whom are also state employees, are proud to stand with AFSCME as we face a deceptive and irresponsible Governor willing to use middle-class families, the most vulnerable, and our students as a wager in his fanatical game. Make no mistake: this isn’t in service of financial savings for the state. This is an ideological obsession unfit for a state leader forcing chaos to enact a reckless and unpopular agenda. Our members go to work each day trying to help others, trying to resolve conflict, trying to educate our children. Governor Rauner could learn a thing or two from them.”
In addition to teachers, school staff, and higher education faculty at community colleges and universities throughout Illinois, the IFT includes thousands of public employees under dozens of agencies and statewide officeholders.
*** UPDATE 1 *** From Cinda Klickna, President of the Illinois Education Association…
“The 130,000 members of the Illinois Education Association support the members of AFSCME as they try to negotiate a fair contract with a governor who seeks confrontation instead of compromise.
Rather than negotiate a fair contract, Governor Rauner seems focused on picking fights with the hard-working men and women who provide services to the people of Illinois.
It is shameful that, as he enters his second year as the state’s top constitutional officer, Gov. Rauner remains either unwilling or unable to govern. The people who elected him deserve much better service than they have received from Gov. Rauner.
We urge Gov. Rauner to return to the bargaining table and negotiate a fair contract with the public service workers who keep us safe, protect kids, respond to emergencies and care for Illinois’ most vulnerable. It is what he was elected to do.”
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* Press release…
After AFSCME Rejections, Administration Appeals to Labor Board
Labor Board to Determine if Parties at Impasse
SPRINGFIELD – Last week, AFSCME refused to seriously negotiate for the 24th bargaining session in a row on any of the core contract proposals presented by the Rauner Administration.
At the bargaining table, AFSCME made clear that they are unwilling to negotiate any contract similar to the ones agreed to by 17 other labor unions, which in many instances, were ratified by more than 80 percent of union members.
In the press, AFSCME described small changes to their proposal as “a big new offer.” The “big new offer” would end up costing the State billions over the next four years.
In response to AFSCME’s refusal to seriously negotiate, and in accordance with the tolling agreement, the Rauner Administration is now asking the Labor Board to determine whether or not the parties are at an impasse.
“While we have reached innovative and fair contracts with most unions and seen those contracts approved overwhelmingly by union members, AFSCME leadership unfortunately refuses to budge or offer reasonable proposals. We want to reach an agreement with AFSCME members, but their leaders have proven unwilling,” Governor Bruce Rauner said. “Instead of acting reasonable like the state’s other union leaders, AFSCME bosses have said no to merit bonuses, they’ve said no to programs to help minority employees, and they’ve said a 40-hour work week is too long. At a time of unprecedented fiscal crisis, AFSCME is pushing insurance and wage demands that would cost taxpayers more than $3 billion. As a result, we are asking the Labor Board to determine the next steps in the negotiating process.”
AFSCME vehemently rejected the Administration’s proposal to implement merit pay programs similar to ones welcomed by the 5 Teamsters and 12 other Trade Union bargaining units.
AFSCME vehemently rejected the Administration’s proposal that would maintain a 37.5-hour work week, but have overtime rate wages kick in only after completing a 40-hour work week. AFSCME rejected this offer despite the fact it is more generous than the 40-hour work week the Teamsters and Trade Unions ratified. Instead, AFSCME wants to only work 37.5 hours per week and immediately get paid overtime wages for any minute worked over 37.5 hours. They are also demanding double pay for regular holidays and even 2.5x pay for some “super holidays.”
AFSCME vehemently rejected the Administration’s proposal to make it easier to promote minority employees. Other unions welcomed efforts to promote minority employees.
AFSCME vehemently rejected a health insurance proposal that closely mirrors insurance proposals agreed to by the Trade Unions. Instead, AFSCME is demanding insurance that is considered platinum-plus under the Affordable Care Act. They are also demanding taxpayers subsidize over 80% of the cost of these platinum level plans, which is asking to pay silver-level premiums for a platinum-plus plan. Additionally, while the Teamsters agreed to maintain their current wages for the next four years, AFSCME is demanding wage increases that would cost taxpayers nearly $1 billion over the next four years. These demands come after many union members have already seen their salaries double since 2004. Illinois employees are now the third-highest paid in the nation – behind California and New Jersey - and the highest after adjusting for the higher cost of living in those states. Altogether, AFSCME’s wage and insurance demands would cost taxpayers over $3 billion.
Under the signed tolling agreement, the Labor Board must now determine whether the Administration and AFSCME are at impasse. During this time, the parties must adhere to all statutory obligations regarding good faith negotiations while the Labor Board is deciding the case. Quoting from the tolling agreement, this specifically means there can be no “strike, work stoppage, work slowdown, or lockout” until the Labor Board has determined that the parties are at an impasse. The Governor will comply with these and all other obligations regarding good faith negotiations.
Subscribers were told about this earlier today.
* Related…
* Gov. Rauner’s letter to all state employees
* Labor Board Filing FAQs
* Summary of Major Concessions to AFSCME
…Adding… From the FAQ…
We would love to continue negotiating if it meant we could reach a deal with AFSCME. AFSCME’s actions at the bargaining table and their comments over the last week are strong evidence why further negotiation is no longer worthwhile. While the Governor has indicated he now shares the views of his bargaining team that the parties are at an impasse, today’s action simply asks the Labor Board to resolve this dispute.
More from the FAQ…
The tolling agreement that the Governor and AFSCME signed and renewed several times prohibits either side from declaring impasse unilaterally. Today’s action does two things. First, it asks the Labor Board to determine that AFSCME has committed an unfair labor practice by bargaining in bad faith. Second, under the tolling agreement, the parties can ask the Labor Board to decide if they are at impasse, but only the Labor Board can make a final determination. All that the Governor did this morning is to ask the Labor Board to determine if AFSCME has been bargaining in bad faith and whether the parties are at an impasse. Since the parties disagree about whether they are at an impasse, the only tribunal that can answer this question is the Labor Board. […]
During the debate over SB 1229, the Governor committed to continue to negotiate in good faith, and he has kept that commitment. At the Governor’s initiative, the parties extended indefinitely the tolling agreement that was initially set to expire September 30, 2015. That agreement requires both parties to negotiate in good faith. AFSCME has not been bargaining in good faith. […]
The Board will now determine whether the Governor’s filing properly before it and, if so, whether an evidentiary hearing should be scheduled. If a hearing is scheduled, the Administrative Law Judge (ALJ) assigned to this matter will conduct the hearing and, after its conclusion, receive the parties’ written submissions. After the ALJ has ruled on these issues, either party can appeal to the Board. The Board will then issue the final decision. […]
Under the terms of the tolling agreement, it is the Labor Board’s right to decide if the parties are at impasse, whether the State has presented its best and final offer, and when it can be implemented. The Governor will accept the Board’s direction on these questions. It is critical to mention that the last offer made by the State to AFSCME is virtually identical to the agreements signed by 17 other unions. These agreements were ratified in many cases by over 80% of state employees in those unions. This is not a radical or extreme contract as AFSCME has portrayed, but one that is fair, reasonable, and overwhelming accepted by large portions of state government already. It is also reasonable when compared to our neighbors: under the State’s proposal, state workers would continue to make over $20,000 more per year, on average, than their peers in Indiana and Missouri.
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* You get the feeling we’re heading for something big? The full letter from AFSCME to the governor’s office can be read by clicking here…
That’s a pretty darned big difference of opinion about what was said last Friday.
* By the way, the governor’s chief legal counsel Jason Barclay had this to say to Jim Dey earlier in the week…
As negotiations continue, AFSCME’s previous contract remains in place, meaning benefits they might lose under a new deal remain as well.
Barclay said that gives AFSCME a “perverse incentive to drag out the negotiations as long as possible.”
*** UPDATE *** Governor’s office…
Hi, Rich:
Passing along the following.
“This letter is filled with more falsehoods and misleading statements from AFSCME, the most glaring of which is that we have been expressing our frustration and concern to them for many months about their refusal to seriously bargain on the Governor’s core proposals. This is exactly why we asked last Friday whether future negotiating sessions would be worthwhile.”
Thanks,
ck
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Today’s number: 1.4 percent
Thursday, Jan 14, 2016 - Posted by Rich Miller
* As you already know, Gov. Bruce Rauner promised that he would send over documentation on how the state would benefit from his Turnaround Agenda.
The documentation is here and here. It was originally sent to legislators last September.
* Some of it is quite exaggerated. For instance…
[Reforming the prevailing wage] lowers the costs paid by taxpayers for construction projects by implementing true competitive bidding. In many cases, prevailing wage increases labor costs by more than 20 percent. From 2002-2011 state and local governments overspent by $1.6 billion on education construction projects alone due to our prevailing wage laws. Altogether, local units of government could save $1.1 billion per year with prevailing wage reforms. That is money that could go directly into classrooms and our communities, but instead we spend it overpaying for projects.
Labor’s cost is usually somewhere around 20 percent, so that’s a fantasy unless we can eliminate workers entirely. Plus, I’ve already looked at this…
A June, 2014 study conducted by the Anderson Economic Group for the far-right Illinois Policy Institute, the Illinois Association of School Boards, the Illinois Chamber and the Illinois Black Chamber found that eliminating the prevailing wage would’ve saved local school districts $126.4 million in 2011 (that’s in 2013 dollars, by the way). […]
So, even if every single local school district throughout Illinois immediately stopped paying prevailing wage rates on construction projects (not gonna happen) and even if eliminating the prevailing wage does indeed save as much as the Anderson study projected (doubtful), school districts could’ve saved a grand total of 0.74 percent of their property tax budgets, which is not much more than a rounding error. Now figure, in reality, savings of at most half that amount and we’re looking at about a third of a percentage point. That’s not even a rounding error.
Not to mention that the total percentage saved from allowing local governments to opt-in to eliminate the prevailing wage in their actual operating budgets is quite a bit smaller because to get an accurate count you’d have to add in revenues from local sales taxes, state and federal money, etc. Charitably, are we talking maybe a quarter of a percentage point saved here? If that?
* Keep in mind that Chicago’s janitorial and cafeteria contracts have become a nightmare…
Every year state government adds mandates onto our school districts and local governments. Additionally, under Governor Blagojevich, the state severely restricted the ability of school districts to contract with outside vendors for things like busing, janitorial and cafeteria services.
Chicago Public Schools is already relieved of many of these mandates and restrictions, but we impose them on every other district, despite the fact that schools districts have requested relief from these requirements for years. Just last month, the Large Unit District Association (LUDA), which represents the 55 largest school districts in the state and educates more than half of the state’s school children, wrote to our administration to again request relief from these mandates. A copy of LUDA’s letter is enclosed. Let’s give our schools the help they are asking for – it doesn’t cost us anything and can save them more than $200 million.
* And what would these reforms do for the state’s economy?…
Economic Growth
• Personal Income Tax Savings by Ending Out- Migration: $140 million
• Revenue Growth by Making Illinois “Average” in Unemployment: $150 Million
• Revenue Growth if Average Gross State Product: $220 Million
All this pain inflicted to maybe produce an additional $510 million in revenues?
For crying out loud, that’s a 1.4 percent increase over Fiscal Year 2015.
Good grief.
…Adding… As a pal just pointed out, the additional projected revenue probably won’t even cover the interest on the state’s backlogged bills from this impasse.
…Adding More… From a Republican friend…
Plus you need to factor in the cost of their tax increase into their economic growth calculation. The point is that they can’t argue that these anti-labor changes will magically produce $510 million of economic growth/revenue and then discount the negative effect of a tax increase on economic growth.
True.
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* The full report is here…
CHANGE ILLINOIS RESEARCH EXPLAINS HOW PARTISAN VOTING MAPS LED TO DECLINE IN VOTER CHOICES IN LEGISLATIVE ELECTIONS
CHICAGO – Partisan redistricting of Illinois state legislative district maps has created continuing partisan bias in election outcomes while making it far less likely that voters will have a choice between candidates of both major parties in the general election, and voters in primary elections have even fewer choices, according to a new research report published by CHANGE Illinois.
“By any measure, the level of competition and competitiveness in legislative elections under the last four partisan maps is extremely low and getting worse,” according to Partisan Advantage and Competitiveness in Illinois Redistricting. “These findings call into question the effectiveness of legislative elections in providing a meaningful incentive for citizen engagement. They also undermine the conventional wisdom that the members of the Illinois General Assembly are elected by the consent of Illinois residents.”
CHANGE Illinois published the new research, which was conducted by political reform veteran Cynthia Canary and Kent Redfield, professor emeritus of Political Studies at the University of Illinois at Springfield. It examines questions about whether the partisan advantage gained through a new legislative map has lasting effects beyond the first post-redistricting election and whether the lack of contested and competitive elections under such partisan legislative maps extends to primary elections as well as general elections. The new report updates and expands the Canary-Redfield 2014 report, Backroom Battles & Partisan Gridlock: Redistricting in Illinois.
The report’s findings include:
* In 2012, Democratic candidates in the House won 52 percent of the total vote and 60 percent of the seats, and Democratic candidates in the Senate won 54 percent of the vote and 68 percent of the seats. In 2014 in a midterm election favoring Republicans, the partisan bias in the 2011 maps still delivered for Democratic candidates. While the margin in total votes cast for Democrats running in legislative elections shrank to a near-tie statewide, Democrats still won 71 House seats, a 60 percent majority. The Democrats also won 11 of the 19 Senate seats that were up in 2014 while receiving less than a majority of the total votes cast in those 19 districts.
* The percentage of General Assembly elections featuring at least two candidates has decreased significantly over time. In the first election under a new map in 1982 and 1992, a strong majority of the elections were contested. By 2012, 60 percent of House elections and 51 percent of Senate elections were uncontested. In 2014, 58 percent of House elections were uncontested. Due to staggered terms, there was an election in only one-third of the Senate districts, and 12 of the 19 (63 percent) were uncontested.
* The degree of competition in Illinois legislative elections is low and declining. When a winning candidate’s vote total is 55 percent or less, the district is considered “competitive.” On average over the past four decades, 88 percent of voters (104 of 118 House races, 52 of 59 Senate races) had no choice at all on the ballot or a choice between a sure winner and a sure loser.
* There has been a dramatic increase in the number of legislators elected without even a token opponent in both the primary and the general election.
* In 1982, 20 of the 177 legislators elected faced no opponent in either the primary or the general. In 2012, 69 legislators had no opponent in both the primary and the general election – essentially given a free pass.
* The number of “free pass” legislators elected increased in 2014 even though only one-third of the Senate was up for election. In 2014, 58 (49 percent) of those elected to the House did not have an opponent in the primary or the general election, as did 12 of 19 (63 percent) of those elected to the Senate.
* Voters in primary elections have even fewer choices for participation, engagement, and communication than voters in general elections. In the 2014 primary election, 89 percent of House and 95 percent of the Senate legislative primaries were uncontested.
* The level of primary activity in districts dominated by one party is very low and has decreased significantly under the last two partisan maps. Under the 2001 and 2011 maps, the average number of same-party competitive primaries in districts dominated by one party was 11 percent in the House and 4 percent in the Senate. This clearly indicates that voters in districts dominated by one political party in the general election were rarely presented with meaningful choices in the primaries.
“Illinois’ partisan redistricting process undermines our democracy and discourages civic participation,” said Ra Joy, Executive Director of CHANGE Illinois. “We need to put people before partisanship and have fair maps drawn by an impartial commission listening to voters and acting in the open. That’s why CHANGE Illinois supports the Independent Map Amendment
Discuss.
*** UPDATE *** Decent points…
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Find another way
Thursday, Jan 14, 2016 - Posted by Rich Miller
* I saw yet another TV ad last night for “Start-Up New York” on my local station. So, I surfed over to the website…
What is START-UP NY?
START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State.
Partnering with these schools gives businesses direct access to advanced research laboratories, development resources and experts in key industries.
Who is START-UP NY for?
To participate in START-UP NY, your company must meet the following requirements:
* Be a new business in New York State, or an existing New York business relocating to or expanding within the state
* Partner with a New York State college or university
* Create new jobs and contribute to the economic development of the local community
* New York isn’t a “right to work” state, yet this program appears to be having some success after a very slow roll-out and expensive national ad campaign…
157 business have already joined START-UP NY and committed to create 4,278 new jobs and invest over $225 million across New York [over five years]. That’s a great start.
We don’t have to copy it. We don’t have to spend as much as NY on advertising. And, like with NY, it will take time to accomplish whatever we set out to do.
* All I’m saying here is that perhaps we can look at doing other things besides lowering the pay, benefits and job protections of working people to get something moving in Illinois.
…Adding… Molly Parker has an interesting piece in The Southern about federally mandated workforce development changes in Illinois…
They are drafting policies to refocus economic development strategies that leverage viable business clusters already blooming in a particular area. In the five-county region covered by the Southern Illinois Workforce Development Board – Jackson, Williamson, Perry, Jefferson and Franklin – those clusters have been determined as, in this order, health care, transportation, distribution and logistics and manufacturing.
They also are attempting to close skill gaps identified in the regional workforce by beefing up access to technical education programs for high school students, and offering access to technology training for older adults.
They are reshaping programs that train people new to the workforce, or who are being retrained for a second career after a layoff or other life event, and they are crafting new programs for incumbent workers to keep their skills updated as companies adapt to new technologies or ways of doing business.
With regards to adult education, bridge programs are being implemented to transition someone from a high school equivalency degree to a post-secondary education to a job. There’s a greater emphasis being placed on vocational rehabilitation to help people overcome barriers to achieving employment, as well as targeted programs to help youth enter the job market, particularly those who drop out of school and lack employable skills.
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* Tribune…
Chicago was a finalist to score General Electric’s corporate headquarters — and 800 jobs — but the state’s pension crisis and the condition of Chicago’s public schools helped remove it from the running, sources close to the selection process told the Tribune on Wednesday.
On Wednesday, GE announced it would move its headquarters from its longtime home in Fairfield, Conn., to Boston.
Mayor Rahm Emanuel “did a good job” and “worked hard at presenting the case for Chicago” and Illinois Gov. Bruce Rauner “did a fantastic job,” one source said.
Many factors went into the decision, including a strong presence and thousands of employees GE already has in Connecticut, Massachusetts and New York, the source said.
* I’m sure this little factoid (unmentioned by the Trib) from the Boston Globe had absolutely nothing whatsoever to do with it…
The decision by GE to move its headquarters — and deliver about 800 jobs — from suburban Connecticut to the Seaport District follows a feverish campaign by Massachusetts officials, who beat out New York, Providence, and several other cities.
City and state officials are offering what could be one of the richest incentive deals in the state’s history — together valued at as much as $145 million — to lure the company here.
A generous offer like that from Illinois and Chicago would’ve been sharply attacked in this current political climate, to say the least.
* Also…
But GE officials pointed to Greater Boston’s concentration of elite universities and nimble tech firms as the main draw.
“We want to be at the center of an ecosystem that shares our aspirations,” chief executive Jeffrey R. Immelt said in a statement.
GE’s new TV ad campaign is really an employment recruitment tool aimed at tech grads. And, unlike us, Massachusetts and Boston aren’t starving their universities and taxing the cloud, not to mention making a general mess out of everything with a protracted political war.
So, perhaps if this state’s leaders weren’t fighting so much, some of those pension and school issues could’ve been addressed and perhaps GE would’ve been more amenable to moving here. Notice, the GE sources didn’t mention the prevailing wage and “right to work.” A stable political climate may have also made a big economic development package possible.
* Even so, there’s also the regional issue mentioned above. GE already has lots of employees fairly near Boston, and when GE Healthcare announced its headquarters move to Chicago this week, the company’s existing regional presence ranked high…
GE Healthcare announced Monday it will move its global headquarters from the United Kingdom to Chicago.
The company said the move would be effective early this year and is designed to move the top leadership for its health care business “closer to operations in Chicago and Milwaukee, while remaining near an international transportation hub.”
GE Healthcare, which employs about 6,000 people in Wisconsin and 51,000 worldwide, had total revenue of $18.3 billion in 2014.
* Look, I don’t doubt that pensions and schools were in the mix. But I also don’t doubt that a less dysfunctional political system could’ve made those issues far less important. Could we have still scored the GE headquarters? I don’t know. Regionalism concerns were definitely working heavily against us.
Whatever the case, this ought to be a wakeup call. The state needs to get moving again.
End. The. War.
*** UPDATE *** Greg Hinz…
Emanuel and Rauner personally met with GE brass, both here and on the East Coast. The state offered $50 million in Edge tax credits. While there were doubts at the beginning that GE would really consider moving its HQ to the Windy City despite having numerous business lines in this area, “they were totally blown away” after a meeting here in September, one insider says.
But during that meeting, Rauner said some things about soon ending the state’s budget wars. Accounts differ, but some say he effectively promised action within a few months.
He obviously hasn’t delivered. Shortly thereafter, the McDonald shooting flap erupted, and Emanuel “lost all of his clout in Springfield, at least for now,” says one insider with firsthand knowledge of the situation.
Did that make a difference in GE’s decision?
Chicago was in it until late fall, says one source familiar with the search process. “It was the entire budget picture between Chicago and the state,” the source says. “CPS was a big concern of theirs.”
“It absolutely was not the city’s situation,” counters another. “The business atmosphere of the city was a huge plus.”
Says a third insider, “Any shot that Chicago did have disappeared when Rauner couldn’t deliver on his promise.”
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* We’ve all seen the trash talking by Gov. Rauner about how he will refuse to help Chicago’s schools without first getting help from Mayor Rahm Emanuel on the Turnaround Agenda.
But the mayor isn’t planning to help his own schools financially, either…
The city obviously has its own fiscal nightmares to deal with, but even that probably doesn’t help the mayor’s case much.
*** UPDATE *** Senate Republican Leader Christine Radogno responds…
“It is so disappointing to read yet another declaration of Mayor Emanuel and the city of Chicago’s refusal to help the Chicago Public School system and the children it serves. How out of touch is the city to be asking for state help for CPS when the city continually refuses to address the crisis itself?”
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* Gov. Rauner continues to talk about getting out of judicial consent decrees…
“There’s more of a mindset of ‘boy, we’ve gotta do something different.’ That’s one of the, I guess, small side benefits is people are willing to be more creative and aggressive and rethinking how government works.”
Meanwhile the state is spending more than it’s bringing in because of court orders and consent decrees, something Rauner wants to reverse.
“Other governors have ignored that and that’s cost more spending and bad policy. I want to work out a plan where every court order gets dealt with and goes away, consent decrees go away, so the government is actually being run proactively to benefit the taxpayers and the citizens who are receiving services”
OK, that’s a laudable goal. The state had to enter into those consent decrees because it was violating laws, so it’s easier said than done. Even so, it’s a laudable goal.
* But what Rauner hasn’t mentioned so far is that his administration entered into yet another consent decree just last month…
“The place is a cacophonous madhouse,” said Alan S. Mills, executive director of the Uptown People’s Law Center, who has visited the facility [Built in 1925 and known as the “roundhouse,” the circular jail at Stateville Correctional Center near Joliet].
Mills and others, including the Illinois Department of Corrections, hope that a settlement reached last month in a class-action lawsuit will provide relief from this place to some of the prison system’s most vulnerable — its more than 11,000 mentally ill inmates.
The settlement in a case filed in 2007 brings some widespread changes to the state’s mental health care system for inmates, which experts said desperately lags behind national standards. The settlement will lead to Illinois’ first psychiatric hospital for prisoners and will allow the hiring of more than 300 mental health professionals.
In a change germane to those living at the roundhouse, the settlement will replace a policy that often puts the mentally ill in segregation, meaning they are left in their cells for nearly 24 hours a day and often constantly monitored to prevent suicide attempts. While this may prevent suicide, Mills said it often causes the mentally ill to “decompensate.”
* And the ACLU of Illinois has offered its thoughts on the matter…
Yesterday, in a series of interviews marking his first year in office, Illinois Governor Bruce Rauner said that a “big part” of his administration’s plan going forward would be to seek release from court oversight in various federal consent decrees to which the State of Illinois has agreed.
The American Civil Liberties Union currently represents clients in five ( 5 ) such consent decrees, addressing care for children under the care of the Department of Children and Family Services, youth detained by the Illinois Department of Juvenile Justice as well as people with intellectual, physical and psychiatric disabilities who have been needlessly warehoused in large institutions and want to live in community-based settings.
Because of this experience and involvement, the American Civil Liberties Union of Illinois issued the following statement about the Governor’s comments. The following can be attributed to Edwin C. Yohnka, Director of Communications and Public Policy at the ACLU of Illinois:
Governor Rauner should know that adherence to terms of a consent decrees is not a political option to be debated in the media. These agreements exist because the State violated the law — often over decades — in ways that impose significant harms to our clients and others in Illinois. If he possesses a magic wand to fix the challenges faced by children in the child welfare system, youth being incarcerated or people with disabilities after years of neglect by the State, we hope the Governor uses the magic soon. The reality is that the way to make getting out of consent decrees a “big part” of his agenda is to bring the State’s dysfunctional systems in compliance with the law by improving the way the State provides services and supports to people who depend on its help.
We look forward to engaging in that work, rather than debating ideological rhetoric.
*** UPDATE *** From the governor’s office…
The DOC matter was not a consent decree, but simply a settlement agreement. We worked hard to demonstrate to the court that a consent decree was not necessary and the Court agreed. This, in fact, proves the opposite point. This is the first victory of the Governor’s in his efforts to reduce the # of consent decrees the state is tangled in.
Also, the Governor’s point, of course, was not that we are going to get out of the consent decrees by not complying, but rather come up with compliance plans to comply with the decree so we can ask the Court to allow us to exit. We actually agree with the ACLU.
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