Capitol Fax.com - Your Illinois News Radar » Updated Posts
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 *** Heroin bill to survive political bickering

Wednesday, Sep 2, 2015 - Posted by Rich Miller

* As I write this at 1:20, the House has voted on two vetoes of bills that passed overwhelmingly during the spring session. Both override attempts failed mainly because Republicans stuck with their governor on general principles, some Dems didn’t support the bills to begin with and because one Democrat is still not accounted for despite clocking in as “Present” on the roll call for attendance. I discussed this with subscribers earlier today. We’ll just have to wait and see if and when Rep. Ken Dunkin shows up, either today or tomorrow. Keep an eye on our live session coverage post for constant updates.

Mary Ann Ahern has a bit more on Rep. Dunkin

While Madigan has said he has the votes necessary, one key Democrat, Rep. Ken Dunkin, is “unavailable,” according to his office. Dunkin “has been spotted in more places than Elvis,” one source in Springfield told NBC Chicago, but the representative’s staff say they “are not at liberty to discuss” where he is. They did confirm that he is not in Springfield, however.

Subscribers know where he says he is.

* But, as I told subscribers last Friday, there will be Republican votes to override the governor’s veto of Medicaid funding from the heroin treatment bill. Leader Durkin confirmed it today

Durkin said Republicans will likely stand with House Democrats in an attempt to override a different bill the governor altered using an amendatory veto.

Both Republicans and Democrats are expected to vote to extend Medicaid coverage to pay for federally-approved medications and therapy to treat heroin addiction.

The governor took the brick off after heavy prodding by House and Senate Republicans. That’s very good news.

*** UPDATE *** As expected, the veto was overridden.

  8 Comments      


Durkin threatens caucus with “consequences”

Wednesday, Sep 2, 2015 - Posted by Rich Miller

* I told subscribers about this earlier today

House Republicans have received a very clear message from their leader over whether to support the override [of the AFSCME “no strike” bill]: “Vote against the governor and there will be consequences,” House minority Republican leader Jim Durkin, R-Western Springs, told the Chicago Sun-Times.

Today’s showdown in Springfield pits Rauner against Madigan like no other battle this year.

“There will be consequences for any of our members who vote against our caucus today,” Durkin said Wednesday. He said “consequences” does not automatically mean expulsion, but they will be discussed among Republican leadership.

“This is my decision. And my decision only,” he said. “I believe this will be cataclysmic if passed.”

Wow.

I’ve never seen anything quite like that before.

The House Republicans have taken caucus positions in the past, but they don’t usually talk about it with the mainstream media, and never this brazenly.

…Adding… As always, keep completely up to date by monitoring our live session coverage post.

  119 Comments      


7 dead, 45 diagnosed with Legionnaires’ disease at Quincy veterans’ home

Wednesday, Sep 2, 2015 - Posted by Rich Miller

[IDVA e-mailed this afternoon to say that 45 people have been diagnosed with the disease, not 46 as reported elsewhere. I changed the headline to reflect the agency’s statement.]

* From a Tuesday press release…

The Illinois Department of Veterans’ Affairs (IDVA) and the Illinois Department of Public Health (IDPH) today announced the deaths of a total of seven residents at the Illinois Veterans’ Home-Quincy. The seven residents, all of whom had underlying medical conditions, were among the 39 individuals who had been diagnosed with Legionnaires’ disease to date. Test results are currently pending for other residents.

“While saddened by the loss of our residents, having been at the Home and talking with the staff and our residents, I am impressed with their resilience and spirit,” said IDVA Director Erica Jeffries. “We remain vigilant in monitoring our residents and we continue to follow the guidance of our interagency partners to implement remediation efforts across our Home. The safety and quality of care for our residents and staff are our primary concerns.”

“We continue to work diligently with our public health and Veterans’ Affairs partners to get immediate medical care to residents or staff at the Home who are experiencing respiratory illness,” said IDPH Director Nirav D. Shah, M.D., J.D. “Unfortunately, we expect to see additional cases and possibly additional deaths because the incubation period for Legionnaires’ disease can be up to two weeks, and because patients with underlying medical conditions are at increased risk of more severe illness.”

On August 30, 2015, IDPH requested aid from the U.S. Centers for Disease Control and Prevention (CDC) for epidemiology and environmental health assistance. Yesterday, three CDC Epidemic Intelligence Service Officers and one environmental health specialist arrived at the Illinois Veterans’ Home – Quincy to work with IDVA and IDPH in investigating the Legionnaires’ disease outbreak. CDC will also provide laboratory support from its headquarters in Atlanta, GA.

IDVA and IDPH continue to work closely with the Adams County Health Department to identify and mitigate possible sources of the Legionella bacteria. Due to the nature of the bacteria, test results can take up to two weeks. Public and environmental health officials are working closely with home staff to implement control measures at the home in order to prevent additional individuals from being infected.

Most cases of Legionnaires’ disease can be traced to plumbing systems where conditions are favorable for Legionella growth, such as hot water tanks, cooling towers, and evaporative condensers of large air-conditioning systems. In order to be infected with the bacteria, a person must inhale contaminated water vapor. Legionnaires’ disease cannot be transmitted person-to-person.

* The diagnosed number rose this morning

The number of lab-confirmed deaths at the home because of Legionnaires’ disease rose to seven on Tuesday, and the number of confirmed cases of people diagnosed with the disease rose to 39. The number of confirmed cases climbed to 46 on Wednesday morning, according to the Adams County Health Department.

However, for the first time since the outbreak was detected at the home late last week, there was a 24-hour period where no residents were admitted to Blessing Hospital. Some test results for residents are pending. […]

As of Monday, the Illinois Veterans Home had 401 residents spread out over seven residential buildings on Quincy’s northwest side. [Erica Jeffries, director of the Illinois Department of Veterans’ Affairs] said those with the disease lived in different buildings. Another hurdle to identifying the source of the bacteria, Jeffries said, is the old plumbing system in the home, which was built in 1886.

Jeffries says the plumbing system at the facility is unique, creating a “unique set of solutions as well.”

  12 Comments      


*** LIVE *** Overtime session coverage

Wednesday, Sep 2, 2015 - Posted by Rich Miller

* The Senate is not in this week. House Exec kicks off our day with a 9:30 hearing. Session starts at 11 o’clock. Expect a long caucus meeting.

Watch it all via ScribbleLive

  35 Comments      


Fox Lake shooting react

Tuesday, Sep 1, 2015 - Posted by Rich Miller

* No doubt you’ve heard of or have been following today’s big story about slain Fox Lake Police Lt. Joseph Gliniewicz. The latest as of 3:53 pm

CNN is reporting one of the three suspects in the shooting is in custody[ADDING: CNN has walked back its story - all three men are still at large]. Heavily armed police have conducted an extensive manhunt through the day in the village for three male suspects who are considered armed and dangerous.

More

The Fox Lake police officer shot and killed while chasing three suspects Tuesday morning was a 32-year veteran of the force who went by the nickname “G.I. Joe” and was married with four children, according to police and family.

“He’s got four sons who are going to have to go on alone,” said Terry Resetar, mother-in-law of the slain officer, Charles Joseph Gliniewicz.

Gliniewicz radioed shortly before 8 a.m. while on routine patrol that he was going to check on some suspicious activity, Lake County sheriff’s spokesman Chris Covelli said during a news conference.

He then radioed he was in a “foot pursuit” but communication was lost after that, Covelli said. Other officers responded and found him shot near Route 12 and Sayton Road, he said.

Gliniewicz was discovered in a marshy area, stripped of his gun and other gear, according to Lake County Undersheriff Raymond Rose. He died at the scene, the undersheriff said.

* They only recently released the name of the officer, which is why it’s not mentioned in these reacts. Let’s start with the ISP…

Illinois State Police (ISP) officials have deployed multiple resources to assist the Fox Lake Police Department in the apprehension of two suspects wanted in connection with the murder of a Fox Lake police officer.

ISP Patrol, Zone 1 Investigations, ISP SWAT, ISP Air Operations, and several investigative support units are on scene at this time assisting with the search.

Anyone with any information is encouraged to contact Lake County Sheriff’s Detective Covelli at 847-313-9350 immediately.

* Illinois FOP…

“Today the Fraternal Order of Police lost a fellow member and brother who died heroically serving his community. Our thoughts and prayers go out to the slain officer’s family, friends and fellow police officers. He leaves a legacy of several decades of service to Fox Lake for which we are humbly grateful,” said Illinois FOP President Chris Southwood. “This is the very real danger that all law enforcement officials knowingly face every day when they put on the badge and go out to protect all of us. We pledge to honor his memory by continuing to protect and serve the citizens of Illinois, and hope that those responsible can be quickly apprehended without further bloodshed and brought to justice.”

* Rep. Barb Wheeler

“As information continues to come in about the shooting of another police officer in the line of duty in Fox Lake, I hope we can all remain calm and pray for the officer’s family and the other officers in harms way right now,” Wheeler, a Crystal Lake Republican, said in a statement. “Eleven police officers have needless lost their lives since Aug. 20th alone in America because of shootings and sadly our communities have been directly impacted today.”

* US Rep. Bob Dold…

“I was deeply saddened to learn of the tragic death of Lieutenant Gliniewicz this morning as he was performing his duty to protect our community,” Rep. Dold said. “Today is a heartbreaking reminder of the sacrifices made every day by those who have dedicated their lives to protect us. My thoughts and prayers are with Lieutenant Gliniewicz’s family, friends, fellow officers and the entire Fox Lake community. As the search for the suspects continues, I strongly encourage all members of our community to stay alert and remain vigilant.”

  26 Comments      


State avoids contempt citation… for now

Tuesday, Sep 1, 2015 - Posted by Rich Miller

* AP

A U.S. judge has cited Illinois’ efforts in recent days to make court-ordered payments to social-service providers in deciding not to hold the state in contempt.

Judge Sharon Johnson Coleman ruled at a Tuesday hearing in Chicago focused on services for the disabled. Coleman raised the prospect of a contempt finding last week after Illinois missed a deadline for certain payments as the state budget standoff continues.

A plaintiffs’ attorney, Barry Taylor, told Coleman that Illinois is now “making a good-faith effort.” But he and other attorneys also said court pressure had worked.

Coleman says she’ll entertain another contempt motion if the state falters again on payments.

* Sun-Times

While there are ongoing budget issues facing the state, Coleman said she wasn’t getting in the middle of it. “This court is not going to allow political wrangling,” affect her decisions, she said.

Still, Coleman tweaked the comptroller’s office for not flagging a cash-flow issue when it failed to comply with her order to pay services for the severely developmentally disabled by Aug. 21.

“That was disturbing to the court,” she said.

* Tribune

On Tuesday, Coleman scolded the state for previously failing “to explain the difficulty they were having in a timely way,” saying the legal wrangling over the payments “cost a lot of time, effort, trees.”

Coleman said she was satisfied that “every attempt has been made to try to cooperate,” and instructed the two sides to draft an order that would allow a court monitor to keep track of the payments to make sure the state complies with her order.

…Adding… From Ed McManus…

Attorneys for the state and lawyers representing Illinois residents with developmental disabilities finally made peace today in federal court in Chicago.

The disability lawyers had proposed that state officials be held in contempt of court for failing to make payments to provider agencies. But the state now says it is making the payments, and the contempt idea has been dropped.

Judge Sharon Johnson Coleman indicated she was upset with remarks by Comptroller Leslie Munger that she doesn’t like being governed by a court. Coleman said Munger needs to realize that she must comply with federal court consent decrees–specifically the Ligas decree, which protects the rights of people with developmental disabilities. An attorney for Munger quickly assured Coleman that Munger “never intended to be critical of your role.”

Ed McManus, a Wilmette-based consultant who represents many of the providers, said his agencies are breathing a sigh of relief. “Most of them have now been paid or apparently are about to be paid, and that’s great. But it’s really inexcusable that the state administration dragged its feet for all this time–since July 1–while these providers were scraping by, cutting their employees’ hours, and paying interest to banks to borrow money the state should have been paying them. The State of Illinois needs to wake up and start doing much better in providing care to our most vulnerable residents.”

Attorney Barry Taylor of Equip for Equality, representing the plaintiffs in the Ligas case, said it has now been agreed that the court-appointed monitor in the case, Ronnie Cohn, will act as a conduit for any providers that still have issues. The agencies were instructed to contact her with problems, Taylor said, and she will work with the state to correct them.

Taylor expressed concern about an announcement the Department of Human Services made last week that it is no longer making expedited payments to the smaller providers. Judge Coleman stressed that she has previously ordered that the expedited payment process be continued.

The state said all payments to ICFDDs for FY15 were processed and sent to the comptroller last night, so those payments should be made soon.

…Adding More… From the comptroller…

Comptroller Leslie Geissler Munger released the following statement Tuesday in response to a Federal Court’s denial of a motion to hold the state in contempt of court over payments tied to the Ligas Consent Decree impacting services for people with developmental disabilities:

“I am grateful to the Court for recognizing that our office has done, and will continue to do, everything in its power to ensure that the state’s budget shortfall does not impact payment for services for people with developmental disabilities.

“Since being sworn into office eight months ago, I have made payments for those serving our most vulnerable my top priority. Long before I assumed public office, I spent years volunteering for an organization serving the intellectually and developmentally disabled - and I saw firsthand the pain that is caused when the state does not meet its obligations in a timely fashion. As the state’s Chief Fiscal Officer, I have made it my mission to ensure that other organizations do not face similar hardship.

“I have traveled the state meeting with nonprofit and social service providers in recent months, and whether I’m in Rockford or East St. Louis, the message is the same: to truly bring relief to those serving our most vulnerable, Illinois must pass a balanced budget.”

  14 Comments      


*** UPDATED x1 - Quinn’s office responds *** Art returned after police report filed

Tuesday, Sep 1, 2015 - Posted by Rich Miller

* Kerry Lester

“We definitely didn’t steal anything,” Billy Morgan, a spokesman for former Gov. Pat Quinn says, referring to downstate artist Cameron Schilling’s sketches of fallen soldiers from the suburbs and throughout Illinois.

But Gov. Bruce Rauner’s staff members weren’t buying that when they filed a previously unpublished police report in March questioning where the art had gone after Quinn left office. […]

Quinn made veterans issues a hallmark of his tenure, and there was a question whether the exhibit — valued at $5,000 — was state property or his.

Rauner’s staff certainly thought the portraits were Illinois property and filed the police report after former Quinn chief of staff Ryan Croke, a Wheeling native, told Rauner chief Mike Zolnierowicz, who grew up in Downers Grove, that he thought the sketches could be found on the 16th floor of the James R. Thompson Center in Chicago.

But they weren’t.

Two months ago, the artwork quietly turned up again, and police reviewed surveillance video to verify how it got back into the building, noticing it was returned by former Quinn staffers.

Quinn, in the police report, told police the drawings were inadvertently moved by staff to his campaign headquarters. No charges were filed, and the portraits are now on traveling display — this week, they’re at the Du Quoin State Fair.

Sheesh.

*** UPDATE *** From an e-mail…

Hello Rich,

FYI, as you will see via attached, this police report was conveniently requested AFTER the display was promptly returned upon learning of this inadvertent mistake by CMS movers.

Let’s call this what it is: an attempt by the current administration to distract from their failure to govern responsibly. Instead of making up phony controversies, they should focus on the budget.

Best,
William Morgan

Click here for the attachment.

…Adding… If you read the police report, the art was returned shortly after the cops were first contacted. This appears to have been an ongoing thing dating from at least December.

  73 Comments      


Rauner using race as an issue against AFSCME bill

Tuesday, Sep 1, 2015 - Posted by Rich Miller

…Adding… AFSCME has responded. Click here to read it.

* The veto override is scheduled for Wednesday, so the heat will continue to ramp up

To: Agency Directors
From: Jason Barclay
General Counsel [to the governor]
Re: SB 1229 and Minority Hiring and Promotion Date: August 28, 2015

As you are aware, it is the responsibility of the Illinois Department of Human Rights (“IDHR”) to assist your agencies in ensuring that the state workforce accurately reflects the demographic makeup of our state. Summaries provided by IDHR from Fiscal Year 2014 indicate that state workers in minority groups, including race, national origin, sex, and disability, have been significantly underrepresented in many areas of state government in previous administrations. State law, 56 Ill. Admin. Code, Ch. II Section 2520.700, requires agencies to establish action plans to correct these deficiencies in state hiring and promotion practices.

It is Governor Rauner’s goal to meet, and where possible, exceed these important utilization goals by hiring, mentoring, and promoting qualified minority candidates throughout state government. Since 93% of all employees are in a union, to properly address the current underutilization rates, we need the support, cooperation, and partnership of the state’s unions as well.

In fact, in one of his first acts as Governor, Governor Rauner issued Executive Order 15-12 that requires labor organizations with state contracts to report the number of minorities and veterans participating in union apprenticeship and training programs. These programs are important pipelines for filling new vacancies in state agencies, and historically many union apprenticeship and training programs have not reflected the state’s demographic population.

The second critical impediment to addressing minority underutilization is removing seniority provisions in the state’s collective bargaining agreements that require the state to promote more senior, white and/or male candidates over more junior minority candidates that are equally or even more qualified than a senior candidate. We told the unions these provisions are unacceptable to this Governor. We want to promote candidates based upon their performance, not their tenure. And where minority candidates can be promoted into leadership positions, our agency directors should be given the opportunity to do so without restriction.

In contract negotiations, we proposed underutilization language in AFSCME’s next contract, for instance, that says:

    “Where there exists an underutilization of a minority class in a given geographical region and/or job category, the Agency, after utilizing the Upward Mobility Program where applicable, may in accordance with applicable law, fill the position at its discretion to address the underutilization.”

On August 25, AFSCME rejected this proposal. We made clear at the bargaining table that this proposal is non-negotiable because it is a critical element of the Governor’s efforts to transform the culture of state hiring that gives underrepresented candidates more opportunities, and rewards high performance. This important provision, however, could be a casualty of SB 1229 if the Governor’s veto of the automatic arbitration bill is overridden.

As we have explained previously, an unelected arbitrator, and not the Governor, would decide whether minority candidates, and not more senior white candidates, are eligible for promotion since AFSCME will not voluntarily agree to this provision on their own. If these regressive hiring practices are not eliminated in our next collective bargaining agreements, it will make it very difficult to adequately address the systemic underutilization of minorities throughout state government.

To get this important message out to state legislators, we would ask that you start to identify how the rejection of this language could specifically impact individual candidates and overall hiring and promotion practices in your agencies. Unfortunately, many do not yet realize that SB 1229 can have sweeping implications far beyond the severe budgetary impacts that have already been publicized.

We appreciate your continued assistance in gathering information to educate the General Assembly and the public on this damaging bill.

* Meanwhile, Greg Hinz compares the AFSCME bill to impeachment

Voters had varied reasons to elect Rauner over Democratic incumbent Pat Quinn last year. But clearly one of the main ones was the desire for change, change that Rauner loudly promised to deliver by cutting spending and remaking the way Springfield does business. Having given him that power, it strikes me as disingenuous for lawmakers to take it away, sort of partially impeaching him on the cheap. Too much money is at stake in a state that isn’t close to balancing the books.

Now, an argument can be made that governors have too much power in labor negotiations. But now is not the time to change that. Beyond that, even Rauner is not going to blithely declare a legal impasse in negotiations and unilaterally impose a new contract. If he does, lawmakers—and the public—will have plenty of chance to respond, starting in next year’s legislative elections.

On balance, labor negotiations are supposed to be tough matches of bluffing, chest-thumping, histrionics and, occasionally, strikes. The state will be far better off if the current process is allowed to proceed under the current rules, rather than having one side run a trick play.

The House ought to reject, or at least sidetrack, the override move. Then Rauner ought to return to the table and work out a deal that a hard-strapped state and its workers can live with.

  53 Comments      


Attorneys: Providers still not being paid

Monday, Aug 31, 2015 - Posted by Rich Miller

[Comments now opened.]

* From Ed McManus…

Attorneys for Illinois residents with developmental disabilities told the federal court Monday afternoon that many provider agencies still have not been paid for the services they have provided. (See attached documents) They said the court needs to order a mechanism to ensure that complete and accurate information about payments is provided, so that compliance with the Ligas consent decree can be evaluated. “The state consistently has failed to provide all of the relevant information throughout this dispute.”

The lawyers said they “do not now advocate a finding of contempt. Our goal simply is to make sure that the payments required by the decree and this court’s orders are made in a timely manner.” The state should be ordered to bring to the court’s attention, in advance, any potential non-compliance to avoid “the type of inefficient and disruptive ‘fire drill’ that the court and the parties have been through over the past several weeks.”

The lawyers had asked Judge Sharon Johnson Coleman last week to consider finding state officials in contempt of court for failing to comply with Ligas, a decree issued in 2011 in which the state agreed to enhance the disability system.

Ed McManus, a Wilmette-based consultant representing many of the provider agencies, said: “It is good that the state has now made most of the payments, but these agencies had to wait two long months, and that was unconscionable. Many of them had exhausted their reserves and maxed out their lines of credit. What a shame that the state caused all this anxiety for these vulnerable people and their dedicated providers.”

The court filing said:

    –Some group home providers still remain unpaid for July and August services, and many intermediate care facilities have not been paid for all Fiscal 2015 services.

    –Contrary to the assertions of the comptroller’s attorney, the state did have funds available to make payments Aug. 21 as ordered by the court.

    –State statutory and state constitutional obligations do not have priority over the consent decree. The lawyers are not asking the court to require that Ligas payments take precedence. They are simply arguing that their payments should not automatically be put in line after these other payments. “The state put the payments required by this court and federal law behind many other payments.”

    –A south suburban provider, Family Assn. Plus, received a letter from the state Aug. 25 announcing that it was eliminating the expedited payment program, which provides money faster to agencies that need it. The attorneys said this announcement must be rescinded immediately. “Such a suspension would be devastating to the providers participating in this program.”

Another hearing before Judge Coleman is scheduled for Tuesday.

* Attachments…

* Ligas - Reply Memorandum

* Exhibit A

  25 Comments      


Moody’s: Illinois ratings will be based on whether state can deal with revenue problems and show it can make required pension payments

Monday, Aug 31, 2015 - Posted by Rich Miller

[Comments now opened.]

* Summary…

Moody’s has issued a short report concerning the ongoing budget stalemate in Illinois (rated A3/negative outlook). Illinois has had budget delays before and the weak governance is already factored into the state’s rating. However, the nature of the eventual agreement will matter far more to the state’s fiscal situation than the long delay that has already occurred. The report’s highlights are:

    * Pension funding pressures are growing, and the state cannot reduce liabilities through benefit cuts. Costs of constitutionally protected pension benefits are rising and funding pressure will be compounded by retiree healthcare benefit costs, which are rising by about 6.5% a year.

    * Illinois still has options to address its current-year deficit. An approximately $5 billion projected deficit can be offset with a combination of spending cuts and revenue increases including reinstating higher income tax rates.

    * The current impasse underscores the state’s governance weaknesses. Illinois has had late budgets before. This time, the Republican governor’s struggles to reach agreement with the legislature’s strong Democrat majorities have not yet strained the state’s finances, but that will change if an accord is not reached soon.

The press release is below and the report is attached. If you have any questions or wish to speak to anyone at Moody’s, please contact me. Thanks

David Jacobson

AVP, Communications Strategist - Public Finance Group

Moody’s Investors Service

* Press release…

Moody’s: Illinois’ budget impasse secondary to intensifying pension and revenue problems

The State of Illinois’ (A3 negative) current budget stalemate underscores the weak governance already incorporated into its rating, and is symptomatic of the state’s severe fiscal challenges, Moody’s Investors Service says in “State of Illinois: Late Budget Matters Less than Solving Pension and Revenue Problems.”

“Illinois projects its income and other taxes to generate $32 billion this fiscal year, or $5.4 billion less than expenditures without cuts,” author of the report and Moody’s Vice President – Sr Credit Officer Ted Hampton says. “While the state still has options to address its current-year deficit, continued political gridlock and the inability to reach an agreement by late September will greatly increase the likelihood of the deficit moving from projected to actual.”

The state also faces intensifying pressure to fund retiree benefits, which account for roughly 24% of its current general fund expenditures. The pension funding situation is compounded by retiree healthcare benefits costs, which are growing at about 6.5% a year.

“The state’s ability to manage these pressures will be a primary determinant of future rating actions. Given the state’s ironclad protection of benefits for current workers and retirees, Illinois requires a long-term plan to ensure it can at least comply with statutory funding requirements,” Hampton says.

Moody’s says the state has been deficient for many years in meeting the standardized annual required contribution (ARC) requirements to its pensions, and has been legally blocked from reducing its accrued liabilities via pension benefit cuts.

In the absence of a budget, Illinois will eventually have insufficient revenues to fund likely expenses, even as the pace of spending has slowed from last year. Some expenses have been paid because they do not require appropriation, have been mandated by court orders, or are allowed under limited appropriation measures.

Like other states, Illinois has had budget delays before, most recently in FY 2010. Moody’s believes it is unlikely Illinois can significantly reduce expenses without having a full budget in place, especially with services like healthcare that continue to be provided.

* The full analysis (click here) includes a possible road map

Illinois has the economic capacity to absorb higher income tax rates. It is one of only eight states that levy a flat individual income tax. Among those states, Illinois’ current rate is comparatively low: the average among these states is 4.4%, compared with 3.75% in Illinois. Unlike excise taxes, income taxes can be implemented retroactively, although the political feasibility of applying higher income taxes retroactive to July 1 has diminished, given that a quarter of the state’s fiscal year likely will have elapsed before new policies can be implemented.

Raising the individual rate to 4.75% from 3.75% and the corporate rate to 6.75% from 5.25% for the second half of this fiscal year would generate approximately $2.4 billion of additional revenue, leaving about $2.2 billion of the deficit to be addressed by other measures. The state could probably impose $1.7 billion of expenditure cuts, less than half the $3.7 billion of savings in the governor’s proposed budget that were not related to employee benefit reductions. This would leave $500 million to be addressed by additional new revenue, or non-recurring measures.

As time has elapsed, the difficulty of realizing such savings has increased; imposing these spending cuts in a shortened period may prove politically challenging. The cuts would reduce monthly outflows by about 9%, twice the monthly reduction that would have been required if such cuts had been put in place for the full year.

  21 Comments      


*** UPDATED x1 *** State complies with court order on DD payments

Friday, Aug 28, 2015 - Posted by Rich Miller

* From Ed McManus…

The State of Illinois now says that it has paid providers for July and August developmental disability services–a total of $120 million. Late this morning, attorneys for the Rauner administration and comptroller Leslie Munger complied with U.S. District Judge Sharon Coleman’s order, which was issued Wednesday after attorneys for the people with disabilities asked her to hold state officials in contempt of court.

“As of Aug. 28, the Department of Human Services has processed all vouchers for community-based services . . . that would have been provided in July and August 2015″ on the same schedule as in previous years,” the lawyers for the state said, and “as of Aug. 28, the comptroller has paid all of the vouchers.” (State’s filing attached)

Ed McManus, a Wilmette-based consultant to many of the providers, said it is good news. “But we never should have had this payment crisis in the first place,” McManus said. “These agencies serving some of the state’s most vulnerable residents have waited two long months, ever since the new fiscal year began July 1, providing group-home and home-based services without getting paid a nickel. Many of them had exhausted their reserves and maxed out their lines of credit, and they were on the verge of collapse, which would have left the thousands of people they serve homeless. What kind of a state do we live in, where our government would allow this to happen?”

Attorneys for the state said between Aug. 18 and 27, the comptroller has made $786 million in payments to entities not covered by the Ligas consent decree–including state employee payroll, debt service, aid to schools, state retirement systems, child care, foster care and Medicaid providers. Details of those payments were submitted to the judge.

“The payments in this case do not exist in a vacuum,.” the state said. “They compete against the state’s other obligations, many of which are also covered by court orders. The state is operating at a deficit of a minimum of $300 million per month to make payments necessary to cover all of the state’s priority obligations. . . . Because of the state’s cash flow problems, the comptroller must evaluate on a daily basis the amount of cash on hand and determine which payments may be made. While the state will continue to diligently process payments to providers under the Ligas consent decree, it is not possible for the state to commit to making each of many specific payments on specific days.”

State officials face “extraordinarily difficult circumstances posed by the state’s current budget crisis and cash-flow problems,” the lawyers said, and therefore the judge should deny the request for a contempt order. Also, the judge should “clarify that compliance does not mean doing the impossible.”

The state had said at a court hearing Wednesday that $76 million in bills had been paid. The additional $44 million was paid since Wednesday, they said.

* From the state’s filing, which is here

Per this Court’s August 26 Order, a list of payments the Comptroller has made since August 18 to entities not covered by this Court’s June 30 and August 18 Orders is provided in Exhibit B and the attachment thereto.

In broad terms, between August 18 and August 27, the Comptroller has made $786.4 Million in payments to entities not covered by this Court’s June 30 and August 18 Orders.

Of this amount, approximately $194 Million was for State employee payroll per court order, $101.8 Million for debt service, $188.4 Million for General State Aid to schools for K-12 education, $233.7 Million for State retirement systems, $8.2 Million for child care, $0.7 Million for foster care per court order, and $10.6 Million for payments to Medicaid providers per court order.

*** UPDATE *** “Exhibit B” can be read by clicking here.

  30 Comments      


*** UPDATED x1 *** Question of the day

Friday, Aug 28, 2015 - Posted by Rich Miller

* Yesterday’s story about Mrs. Rauner’s group blasting away at Gov. Rauner’s child care cuts sparked a Mary Mitchell column

But don’t think this is a real Rauner vs. Rauner showdown.

As president of the Ounce of Prevention Fund, part of Diana Rauner’s job is to keep the organization focused on its mission of supporting early learning programs for at-risk children.

Right now, that mission is being threatened by her husband’s budget ax, but you don’t see Diana Rauner out front on this issue.

Instead, the Ounce of Prevention Fund distributed the unsigned “Action Alert” by email to the organization’s database.

Diana “Rauner signs off on all of our advocacy efforts,” said Megan Meyer, a spokeswoman for the organization.

“I can’t speak to whether she saw this particular alert. The Ounce statement has not been authored under Diana’s name, but she is aware of and reviews all of our statements,” Meyer said.

That makes the situation even more ludicrous.

Frankly, I would have expected Diana Rauner to have greater sway over her husband when it comes to this issue. […]

During Gov. Rauner’s campaign, Diana Rauner argued that her role at the Ounce of Prevention Fund was not a conflict of interest, even though the organization gets a lot of its funding from government grants.

That sounded disingenuous then, and it certainly looks disingenuous now.

I’m not sure that she really substantiated or justified any of her points in that column. So, it’s up to you.

* The Question: Should Mrs. Rauner stay on as president of the Ounce of Prevention Fund? Take the poll and then explain your answer in comments, please.


online survey

*** UPDATE *** From the Ounce…

Dear Editor:

While we applaud the Sun-Times for drawing attention to the Child Care Assistance Program changes, we are disappointed that rather than focus on the impact of changes—the families who are faced with the difficult decision of providing for their families or ensuring their children are safe and cared for—the Sun-Times instead chooses to sensationalize Rauner vs. Rauner in Mitchell: Illinois’ first family at odds over budget cuts.

For more than 30 years, the Ounce of Prevention Fund has fiercely advocated to ensure that young children living in poverty have access to the quality early experiences they need to succeed in school and in life, and that parents have the resources they need to ensure quality experiences for their children.

During this time of unprecedented budget uncertainty and assault on low-income families, the Ounce has been on the front lines with our advocacy partners, battling to urge the General Assembly, governor and administration to work together to find a fair, fully-funded budget that serves all of Illinois’ citizens.

From formal statements conveying our point of view to time-sensitive action alerts activating supporters and media stories highlighting the families and providers at risk, the Ounce has been vocal. We have publicly advocated against child care changes and urged an end to the budget impasse that is holding our most vulnerable citizens hostage. We have worked with partners in early learning and other social services organizations to highlight the impact of this ongoing budget stalemate. And we have worked within all facets of the government, meeting with legislators and the administration, and filing formal complaints, comments and requests for hearing.

As always, our entire organization—from our board of directors to our leadership to our staff—is fully committed to our mission and continues to serve children and families in need.

Anne Lea Tuohy
Chairman of the Board
Ounce of Prevention Fund

  54 Comments      


*** UPDATED x1 *** Point, counter-point

Friday, Aug 28, 2015 - Posted by Rich Miller

* Democratic point

A top aide to the Illinois treasurer said Thursday it was “unlikely” that the state’s cash balance was so low last week that the comptroller couldn’t follow a federal judge’s order to pay for services for the developmentally disabled.

The treasurer’s office pointed to daily balance sheets showing the state began the day on Friday with more than $217 million and ended it with more than $57 million on hand. The treasurer’s office also questioned whether Comptroller Leslie Munger only wrote checks to vendors whom she had to pay.

“Is it possible that the comptroller last Friday only paid those bills that are under some court order? It’s certainly unlikely. It’s especially unlikely given that they ended the day with $57 million,” said Greg Rivara, spokesman to Treasurer Mike Frerichs. ”They certainly could have at least paid some of those individuals on Friday, and she chose not to.”

* Republican counter-point

“I wish he had contacted us before making such an absurd statement. To look at a balance and say there’s plenty of cash is as ridiculous as looking at my bank account after I’m paid and thinking I have money to burn,” said comptroller spokesman Rich Carter. “That might be true if I didn’t have a mortgage to pay, a car payment to make and kids to put through school. Similarly, the balance in the state’s checkbook has fluctuations as we accrue funds for the larger payments we’re obligated to make. ”

I side mostly with Carter at the comptroller’s office on this one. They have to make payroll, pay bond debt and fund pensions. All that requires them to stockpile money for big pay-out dates. The comptroller’s office has been doing this for a very long time, and they have experienced, non-partisan staff handling this stuff. The treasurer’s office has no such track record.

* However, this is a valid point

“The comptroller’s office said money is tight because the tax increase was allowed to expire. The tax increase was allowed to expire because the governor asked that it expire,” Rivara said. “If the comptroller’s position is that there is a cash shortage, certainly, part of that is tied to the governor.”

Yep.

*** UPDATE *** Letter from comptroller candidate and state Sen. Daniel Biss…

Illinois State Comptroller Leslie Munger 201 Statehouse
Springfield, IL 62704
Dear Comptroller Munger,

In my capacity as chairman of the Senate committee on Human Services, I write to seek clarification regarding payments to service providers across the state. It is unclear which payments have been made, and perhaps more importantly, the process by which the payments have been prioritized.

In addition to the documentation you will be providing to Judge Coleman, and in the interest of ensuring our most vulnerable citizens receive the care they need and deserve, I hope you can take a moment to respond to the following questions:

    1. Under which consent decrees, court orders, state laws, and other statutory obligations are bills being paid?
    2. What process was used to determine prioritization of those payments?
    3. What are the top highest paid vouchers for July and August?
    4. Estimated GRF, CSF and EAF (“general fund(s)”) bills on hand as of July 1, 2015, including
    bills by governmental category
    5. Estimated FY15 general fund bills on hand projected August 31, 2015
    6. Estimated FY16 general fund bills on hand projected August 31, 2015
    7. Estimated FY16 monthly general fund state employee payroll, based on average payroll for
    month ending July 31, 2015
    8. Estimated monthly liabilities incurred pursuant to vouchers submitted under consent decrees including: Memisovski v Maram, Beeks v Bradley, Colbert v Rauner, Benson v Blaser, Williams v Rauner, Ligas v Norwood, B.H. v Tate

Now more than ever our committee needs a clear understanding of the mechanisms by which these decisions are made so that we can effectively advocate for the citizens of Illinois. I appreciate your assistance in guiding us through the details of this process.

I would also like to invite you to a Senate committee on Human Services hearing on September 8th at 10:30 a.m. in room C600 of the Bilandic Building. The committee would appreciate any guidance and information you can provide us, and we would be grateful for your attendance.

Thank you again for your attention to these questions. With more information, we’ll be better equipped to serve our shared constituents.

Sincerely,
Daniel Biss
State Senator, 9th District

  80 Comments      


Not there yet

Friday, Aug 28, 2015 - Posted by Rich Miller

* Press release…

The Illinois House is expected to vote next week to override a bill that Gov. Bruce Rauner vetoed, Senate Bill 1229. This bill would strip Rauner’s ability to bargain with the government union representing almost all state workers, the American Federation of State, County and Municipal Employees, or AFSCME. Instead, if an agreement is not reached within two months of negotiating, the state’s next AFSCME contract would be decided by an labor arbitrator.

Last week the Illinois Senate voted to override the governor’s veto of this bill, and the measure now needs House approval. Illinois House Speaker Mike Madigan is urging Democrats to follow the Senate’s lead and strip Rauner’s ability to set the terms of the next union contract, but that might not be what voters want, according to a new poll released today by Illinois Policy Action.

The poll was conducted by Ogden & Fry across suburban Chicago legislative districts. In all districts surveyed, very few voters said their opinion of their state representative would improve if the lawmaker consistently voted with Speaker Madigan. Also, in all of the districts surveyed, more than half of voters said they actually would think more negatively of their state representative if he or she voted with Speaker Madigan the majority of the time.

“Suburban lawmakers hold tremendous sway in the budget battle going on in Springfield, and that’s why these poll findings are so important. Even though voters in these districts elected Democrats to represent them, the poll results show they don’t want their representatives to be proxies for Speaker Madigan,” said John Tillman, CEO of Illinois Policy Action. “Speaker Madigan is putting intense pressure on these suburban lawmakers to support his agenda and to override the governor’s veto of the AFSCME bill. But the polling data is extremely clear: Voters think very negatively of politicians who vote consistently with Madigan.”

POLL QUESTION: Do you think of State Representative [NAME] more favorably or less favorably if s/he votes with Mike Madigan 90 percent of the time?

POLL RESULTS:

    State Rep. Deb Conroy, 46th district: 51.4 percent less favorably, 22.2 percent more favorably for voting with Madigan;
    State Rep. Scott Drury, 58th district: 57.8 percent less favorably, 18.1 percent more favorably for voting with Madigan;
    State Rep. Marty Moylan, 55th district: 54.9 percent less favorably, 19 percent more favorably for voting with Madigan;
    State Rep. Michelle Mussman, 56th district: 51.6 percent more favorably, 21.5 percent less favorably for voting with Madigan;
    State Rep. Elaine Nekritz, 57th district: 52.2 percent less favorably, 16.5 percent more favorably for voting with Madigan;
    State Rep. Carol Sente, 59th district: 55.7 percent less favorably, 21 percent more favorably for voting with Madigan;
    State Rep. Sam Yingling, 62nd district: 54.1 percent less favorably, 18.1 less favorably for voting with Madigan.

Those Mussman results are kind of odd, no?

…Adding… The group misprinted the Mussman results. From the pollster…

More favorably 76 21.5%
Less favorably 182 51.6%
Undecided 95 26.9%

Also, in order to confidently “move” voters to base their election day decision on a single issue, you generally need numbers in the 70s. We’re a long way from that point right now.

Plus, the campaign hasn’t even started yet. The incumbents haven’t fully made their own cases.

In other words, we’ll see.

  47 Comments      


« NEWER POSTS PREVIOUS POSTS »
* Hexaware: Your Globally Local IT Services Partner
* SB 328: Separating Lies From Truth
* When RETAIL Succeeds, Illinois Succeeds
* SB 328 Puts Illinois’s Economy At Risk
* SB 328: Separating Lies From Truth
* Hexaware: Your Globally Local IT Services Partner
* SB 328 Puts Illinois’s Economy At Risk
* When RETAIL Succeeds, Illinois Succeeds
* Reader comments closed for the next week
* Isabel’s afternoon roundup
* SUBSCRIBERS ONLY - Campaign updates
* Three-quarters of OEIG investigations into Paycheck Protection Program abuses resulted in misconduct findings
* SB 328 Puts Illinois’s Economy At Risk
* Sen. Dale Fowler honors term limit pledge, won’t seek reelection; Rep. Paul Jacobs launches bid for 59th Senate seat
* Hexaware: Your Globally Local IT Services Partner
* Pritzker to meet with Texas Dems as Trump urges GOP remaps (Updated)
* SB 328: Separating Lies From Truth
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today's edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2025
June 2025
May 2025
April 2025
March 2025
February 2025
January 2025
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller