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*** UPDATED x3 - Frerichs responds - Mendoza responds *** Moody’s also downgrades Illinois credit rating

Thursday, Jun 1, 2017 - Posted by Rich Miller

*** UPDATE 1 ***  Comptroller Mendoza…

On our 701st day without a budget, two more bond rating agencies gave Illinois the 7th and 8th credit downgrades since Gov. Rauner took office 2 ½ years ago. Before he took office, Illinois had been paying its backlog of bills down. It got down to less than $5 billion. In just two years of his failed leadership, he has about tripled that stack of unpaid bills to $14.5 billion and growing. Both Standard & Poor’s and Moody’s dropped the state to one grade above junk status Thursday.

While all sides could try harder to compromise toward a budget solution as the General Assembly has with every previous governor, business groups and independent third parties put the blame for Illinois’ crisis mainly on Governor Rauner. Standard & Poor’s said in its last assessment: “Illinois’ fiscal crisis is, in our view, a man-made byproduct of policy ultimatums placed on the state budget process.” In other words, Governor Rauner has created and now owns this crisis.

In the meantime, our office will continue triaging how to make payments to Illinois’ struggling schools, nursing homes, hospice centers and aging facilities from a near-empty bank account. We’re about to reach the breaking point at which court-ordered payments will exceed the state’s revenues. Illinois’ sick, elderly, young, and most vulnerable are paying the price. This crisis is untenable, unconscionable, and unnecessary. It’s time that the Governor stop campaigning and take responsibility for his failures and fulfill his constitutional mandate to introduce a balanced budget.

*** UPDATE 2 *** Treasurer Frerichs…

“Two credit downgrades in 24 hours further underscores the need for a full, balanced budget,” Frerichs said. “My warnings were ignored and credit agencies have responded. We need a bipartisan budget now to end this crisis.”

*** UPDATE 3 *** Illinois Working Together Campaign Director Jake Lewis…

“In light of today’s downgrades, the seventh and eighth downgrades of Gov. Bruce Rauner’s tenure, we are reminded of Rauner’s June 3, 2013 tweet:


Ouch.

[ *** End Of Updates *** ]

* Like the S&P downgrade earlier today, this new rating is just a single notch above junk bond status…


* Press release…

Moody’s Investors Service has lowered the rating on the State of Illinois’ general obligation (GO) bonds to Baa3 from Baa2, amid a prolonged political impasse that has prevented progress on a growing pension deficit and an increasing backlog of unpaid bills. With this action, ratings of several state debt types linked to the GO rating also were lowered: Build Illinois Bonds backed by sales tax revenues, to Baa3 from Baa2; the Metropolitan Pier & Exposition Authority’s McCormick Place project bonds, to Ba1 from Baa3; and the state’s Civic Center program bonds, also to Ba1 from Baa3. Debt outstanding for all affected securities totals about $31.5 billion, but not all outstanding Build Illinois and Metropolitan Pier issues are rated by Moody’s. The outlook applicable to the state and these associated credits remains negative.

Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance, allowing a backlog of bills to approach $15 billion, or about 40% of the state’s operating budget. During the past year of fruitless negotiations and partisan wrangling, fundamental credit challenges have intensified enough to warrant a downgrade, regardless of whether a fiscal compromise is reached in an extended session. As the regular legislative session elapsed, political barriers to progress appeared to harden, indicating both the severity of the state’s challenges and the political difficulty of advocating their solutions. Extending the impasse, and the state’s embedded operating deficit of at least $5 billion (or 15% of general fund revenue) would signal further pressure on the state’s credit position. But the state’s credit could stabilize at the current level in the event of a political consensus that more closely aligns revenues and spending, without relying on unsustainable fiscal measures.

The downgrade to Baa3 for Illinois’ GO bonds is consistent with the state’s intensifying pressure from pension liabilities; by our calculation, the state’s unfunded pension liability (Moody’s adjusted net pension liability, or ANPL) for its five major plans in aggregate grew 25% in the year ended June 30, 2016, to $251 billion. The current rating also acknowledges intrinsic credit strengths, primarily the state’s sovereign powers over revenue and spending; a diverse and strong economic base with the long-term economic potential to provide for its liabilities, and statutory protections for bondholders, primarily requirements for monthly transfers in advance of semiannual debt service payment dates. During the past decade, the state’s governance framework has allowed practices that greatly offset these strengths. After eight downgrades in as many years, Illinois’ rating is an outlier among states, most of which are rated at least eight notches higher. The rating on the Build Illinois sales-tax revenue bonds is capped at the GO rating because of lack of sufficient segregation of pledged revenues from the state’s operating needs. The Met Pier and Civic Center program bonds are both rated a notch below the state GO bonds, because of the need for annual legislative appropriation of payments.

Rating Outlook

The state’s negative outlook is consistent with its potential for additional credit weakening because of a continuing political impasse that has left Illinois increasingly vulnerable to adverse revenue trends and severely underfunded retiree benefit plans.

Factors that Could Lead to an Upgrade

    Implementation of a realistic plan to provide long-term funding for pension obligations

    Progress in reducing payment backlog and adoption of legal framework to prevent renewed build-up of unpaid bills

    Enactment of recurring fiscal measures that support expectation of sustainable, structural balance

Factors that Could Lead to a Downgrade

    Continued increases in unfunded pension liabilities and indications of unwillingness to allocate sufficient resources to retiree benefits

    Persistent and growing structural imbalance that pressures liquidity and increases payment backlog or bonded debt burden

    Court rulings that increase the volume of payment obligations that are legally prioritized

    Difficulty managing impact of any other adverse negative events, such as an unexpected economic downturn or reduction of federal Medicaid funding

    Failure to enact legislation providing for timely payment of subject-to-appropriation debt

* Let’s revisit

The governor said negotiations stalled over term limits, local government consolidation, workers’ compensation and a property tax freeze.

None of which were mentioned by Moody’s, of course.

  61 Comments      


*** UPDATED x4 - Biss blames Madigan, Rauner - Civic Committee responds - Pritzker responds - Rauner admin: “Madigan’s majority owns this downgrade” *** S&P lowers Illinois GO bond rating to one step above junk - McPier, ISFA hit junk status

Thursday, Jun 1, 2017 - Posted by Rich Miller

*** UPDATE 1 ***  Tribune

The governor also held Democrats responsible for Thursday’s rating cut.

“Madigan’s majority owns this downgrade because they didn’t even attempt to pass a balanced budget, get our pension liability under control, and other changes that would put Illinois on better financial footing,” said Eleni Demertzis, a spokeswoman for Rauner. “The governor will continue working toward a truly balanced budget with changes to our system to grow jobs and provide real and lasting property tax relief.”

“Her comment is typical Rauner incompetence, and that’s too bad,” said Steve Brown, a spokesman for Madigan.

*** UPDATE 2 *** Pritzker campaign…

“A day after Bruce Rauner once again failed to produce a budget, the Illinois economy is already feeling the devastating impacts,” said JB Pritzker. “Under Bruce Rauner’s failed leadership, Illinois’ general obligation debt is now a step away from junk, the lowest ever for a U.S State. What we’re seeing is a state economy in shambles as state debt skyrockets and Bruce Rauner stumbles past 700 days without a budget. This will have long term ramifications for the economy of our state and it will take years to clean up Rauner’s mess. We need a governor who understands how to get results in Springfield and it is clear that Bruce Rauner will never be up to the job.”

*** UPDATE 3 *** Kelly Welsh, President, Civic Committee of The Commercial Club of Chicago…

“The failure of Illinois leaders to pass a budget has – as predicted – resulted in immediate action to downgrade state bonds. Once again, the State of Illinois debt backlog increases and taxpayers are on the hook for hundreds of millions of dollars in unnecessary debt payments, while schools and universities are put at risk and our communities suffer from deteriorating social services. With “Bringing Illinois Back,” the Civic Committee provided a sensible framework for resolving this fiscal crisis, which required change and compromise from our government leaders in Springfield. Their failure to act is inflicting serious damage on our state.”

*** UPDATE 4 *** Sen. Daniel Biss…

“Infuriating. Wall Street banks will now get even more of our tax dollars because Rauner and Madigan have failed again on the budget.”

[ *** End Of Updates *** ]

* Bloomberg

Illinois had its bond rating cut to a step above junk by S&P Global Ratings because of the long-running political stalemate over the budget that’s kept the state from dealing with its chronic deficits.

The company warned that the rating could be cut again, which would make Illinois the first state since at least 1970 with a below investment grade. S&P said debt backed by state appropriations, including those issued by its sports authority, were cut to BB+, one step into junk.

“The rating actions largely reflect the severe deterioration of Illinois’ fiscal condition, a byproduct of its stalemated budget negotiations, now approaching the start of a third fiscal year,” S&P analyst Gabriel Petek said in a statement. “The unrelenting political brinkmanship now poses a threat to the timely payment of the state’s core priority payments.”

* Press release

S&P Global Ratings lowered its rating on Illinois’ general obligation (GO) bonds to ‘BBB-’ from ‘BBB’. We also lowered our ratings to ‘BB+’ from ‘BBB-’ on the state’s appropriation debt, including bonds issued by the Illinois Sports Facility Authority and the Metropolitan Pier & Exposition Authority. Finally, we lowered to ‘BB-’ from ‘BB’ our ratings on the state’s moral obligation-backed debt. The ratings are on CreditWatch with negative implications.

“The rating actions largely reflect the severe deterioration of Illinois’ fiscal condition, a byproduct of its stalemated budget negotiations, now approaching the start of a third fiscal year,” said S&P Global Ratings credit analyst Gabriel Petek. “We placed the ratings on CreditWatch with negative implications because, in our view, the unrelenting political brinkmanship now poses a threat to the timely payment of the state’s core priority payments.”

We also believe that Illinois is now at risk of entering a negative credit spiral, where downgraded credit ratings would trigger contingent demands on state liquidity, further exacerbating its fiscal distress. Although CreditWatch typically has a 90-day time horizon, we anticipate resolving Illinois’ placement around the start of its 2018 fiscal year, which begins on July 1. If lawmakers fail to reach agreement on a budget with provisions designed to reduce the state’s structural deficit, it’s likely we will again lower the ratings. In our view, the ongoing budget impasse has increased the nonpayment risk associated with Illinois’ obligations that require a budget appropriation before they can be funded. We now view these payment obligations as having speculative-grade characteristics.

The ‘BBB-’ GO rating reflects our view of the state’s:

    • Large and growing structural budget deficit now projected to top $7 billion (18% of expenditures) in fiscal 2018;
    • Unpaid bills that have mushroomed to the equivalent of more than one-third of annual general funds’ expenditures;
    • Elevated fixed costs and depleted budget reserves, the combination of which renders the state vulnerable to even more fiscal pressure when the economy enters a slowdown;
    • Exposure to stepped-up interest costs related to variable-rate debt and swap termination payments tied to rating triggers;
    • Distressed pension funding levels that will require substantial contribution increases in the coming years; and
    • Inability to deliver adequate and timely funding for various important public services and institutions as a consequence of dysfunctional budget politics.

Partially offsetting these weaknesses is our view of:

    • Well-established priority of payment for GO debt service established by statute;
    • Ability to adjust certain cash disbursements to stabilize cash flow and to access substantial amounts of cash reserves on deposit in other funds for debt service, if needed, and for operations if authorized by statute;
    • Deep and diverse economic base anchored by the Chicago metropolitan statistical area, though with a growth outlook that is expected to trail the nation’s through the next five years;
    • Above-average income levels; and
    • Substantial ability to adjust revenues, expenditures, and disbursements–albeit with a current lack of agreement on how to do so.

* Meanwhile

S&P Global Ratings lowered to ‘AA-’ from ‘AAA’ its rating on Illinois’ Build Illinois sales tax revenue bonds. The rating is on CreditWatch with negative implications.

“The rating actions reflect our view that, with the negative pressure on the state’s creditworthiness intensifying, the risk of interference with the flow of revenues pledged to the repayment of its Build Illinois sales tax bonds has increased,” said S&P Global Ratings credit analyst Gabriel Petek. “The CreditWatch placement reflects the likelihood that we would lower the rating further if the state’s general obligation rating were downgraded again.”

Our views are balanced against the fact that debt service, at about $325 million in fiscal 2017 and declining thereafter, is equivalent to less than 10% of the state’s structural budget deficit in its general funds. We continue to believe the state will adhere to legal provisions that insulate debt service on the bonds from its budget impasse. However, we believe the risk of a disruption is somewhat greater with the state’s overall fiscal condition experiencing more acute levels of distress.

  60 Comments      


*** UPDATED x1 - Rauner says he’ll veto *** Hold put on education funding reform bill

Thursday, Jun 1, 2017 - Posted by Rich Miller

* SJ-R

Illinois lawmakers late Wednesday approved a school funding reform measure, the first significant overhaul of the state’s system of funding public schools in decades.

The Senate gave final approval to Senate Bill 1 by a 35-22 vote. The House approved the bill earlier in the evening.

The legislation can now be sent to Gov. Bruce Rauner, where it faces an uncertain future. Republican lawmakers complained that the bill was changed in the House at the last minute to give hundreds of millions of dollars in additional money to Chicago schools.

The bill was the culmination of years of negotiating by Sen. Andy Manar, D-Bunker Hill. His goal was to change the school funding formula so that more state money is directed at the neediest school districts.

The General Assembly’s website has been down this morning, but the Senate Democrats filed a motion to reconsider the vote last night after SB 1 passed.

* I asked what the hold was about, and here’s their texted response…

Slow down the process and dial down the rhetoric in hopes of getting it signed by the governor who promised to overhaul state education funding.

I was also told that the hold would last only up to 30 days. ADDING: There was a miscommunication. The hold stops the 30-day clock to send legislation to the governor. It can be held indefinitely. I thought that was what was going on, but it was a late night and an early, hectic morning. Sorry.

*** UPDATE ***  Sun-Times

Governor Bruce Rauner said Thursday that he would not sign an education funding reform bill that passed both houses of the Illinois General Assembly Wednesday night just before the legislative session ended. […]

“In its current form, absolutely not,” Rauner told the Chicago Sun-Times. “The amendment on there really amounts to an unfair-to-Illinois-taxpayers bailout of CPS.” […]

Rauner, however, said bills drafted by State Sen. Andy Manar, D-Bunker Hill, and Sen. Jason Barickman, R-Bloomington, should be used as a “base for a deal.”

“We were going down that road but then the majority in the House kind of hijacked the process, added a big addendum, a big amendment onto Manar’s bill with massive more financing for Chicago Public Schools. That’s not fair for the statewide taxpayers. So we’ve got to get that out,” Rauner said. “Within the context of the bills I think coming up with a balance that works for everybody and gets more resources for Chicago Public Schools, I’m supportive of that. So hopefully we can keep working to get it done.”

* I asked Senate President Cullerton’s spokesman for a response…

This is the kind of premature rejection from the governor we’re hoping to avoid. Hopefully, cooler heads will prevail.

  15 Comments      


So, where do we stand now?

Wednesday, May 31, 2017 - Posted by Rich Miller

* As I write this at 8:25 pm, the House has adjourned until later in June, or the call of the Speaker, whichever comes first. The Senate just reconvened has some concurrence motions it has to deal with

* SB 1 - School funding reform. This bill passed the House with the bare minimum of 60 votes and just one Republican, Rep. Michael McAuliffe. Background is here. UPDATE: The Senate concurred, 35-22.

* SB 3 - Local government consolidation. Gov. Rauner pulled HGOP votes off this bill, but then put them back on after an amendment was filed. It passed the House with 75 votes. UPDATE: The Senate concurred, 49-3.

* SB 81 - $15 per hour minimum wage. The motion to reconsider the vote has been withdrawn in the House, freeing up the Senate to vote on it tonight if it has the votes. Background is here. UPDATE: The motion to concur passes 30-23-2.

* SB 886 - Sale of the Thompson Center. The House passed the legislation 64-49 today. Background is here UPDATE: The Senate concurred with 35 votes.

* SB 1839 - AT&T bill, 911 tax hike. Despite the governor’s opposition, the bill passed with 81 votes, including 34 House Republicans. Background is here. UPDATE: The motion passed 53-3. Wow.

Other bills awaiting Senate concurrence are here. And you can click here to see all the bills which cleared both chambers today.

* Meanwhile, the Senate Democrats amended the House’s Chicago school board election bill (HB 1774), but apparently put off any floor action until the House left town. Its fate, as they say, is uncertain.

And the Senate approved an online fantasy sports bill, but the House didn’t take any action.

* I’ll update this post as we go along tonight.

  33 Comments      


*** UPDATED x2 *** Madigan lists “accomplishments,” lashes out at Rauner

Wednesday, May 31, 2017 - Posted by Rich Miller

* As I told subscribers a while ago, Speaker Madigan has been carefully creating a paper trail so that he can justify ending the spring session with a splat. And here it is all in one spot…

Speaker Madigan: House Democrats to Continue Working to Find Common Ground with Rauner and toward State Budget

SPRINGFIELD, Ill. – House Speaker Michael J. Madigan issued the following statement:

“There is no more urgent matter facing the state than the passage of a comprehensive, balanced budget, and House Democrats will continue our efforts to address this challenge, end this destructive impasse and close the Rauner budget deficit. The House Democratic Budget Working Group led by Representative Greg Harris will hold public hearings and continue working in June to prepare a budget for the coming fiscal year. The first hearing will be held on June 8 in Chicago.

“The governor’s reckless strategy of holding the budget hostage to create leverage for his corporate agenda that pads the profits of large corporations and insurance companies has for the third year left Illinois without a budget at the end of the May legislative session. He has put our schools at risk of being unable to open, denied care to victims of domestic violence, kept tens of thousands of seniors from receiving Meals on Wheels, and tripled Illinois’ backlog of unpaid bills. This cannot continue.

“Where we can compromise with the governor without hurting middle-class families, House Democrats have consistently advanced measures that address the governor’s requests so we can get down to the work of passing a balanced budget. House Democrats have:

    · Voted to provide property tax relief to homeowners;
    · Put forward reforms to the workers’ compensation system that will ensure employers see the savings from reform;
    · Introduced an agenda of economic reforms that make Illinois a better place to do business while also lifting up middle-class families, not tearing them down;
    · Voted at the governor’s request to streamline the state procurement process;
    · Voted to sell the Thompson Center.

“I have directed members of the House Democratic leadership team to meet with the governor and seek common ground on his other proposals. To date, the governor has refused to meet.

“We remain ready to work with the governor and find common ground whenever he is ready to return to the table and work in good faith.”

*** UPDATE 1 *** Another one…

Speaker Michael J. Madigan issued the following statement Wednesday after the House voted to pass House Bill 2525, a package of workers’ compensation reforms addressing a key element of Gov. Bruce Rauner’s agenda:

“House Democrats have consistently stated that we will work with the governor to reach compromise, but we will not hurt middle-class families. Throughout his tenure, Governor Rauner has made it clear that changes to the workers’ compensation system are a pre-condition to his cooperation on a state budget. While the governor’s plan does not have the support of majorities in the Legislature, we can still find common ground on this issue.

“The bill passed today will help ensure Illinois businesses see the benefits of reform by requiring insurance companies to pass savings on to local employers. It takes steps to crack down on fraud and abuse, and includes additional measures to reduce costs without jeopardizing the health or economic security of workers. We believe this compromise meets the governor’s stated goal of reducing workers’ compensation costs for businesses, and Democrats’ goal of protecting working people and their families.

“As House Democrats work to address the governor’s pre-conditions to a budget, we remain steadfast in our belief that the budget is the most important issue facing families, seniors, children, and businesses. We ask the governor to stop holding the state budget hostage and join us in working in good faith to end this destructive impasse.”

*** UPDATE 2***  And another one…

– Speaker Michael J. Madigan issued the following statement Wednesday after the House voted to pass Senate Bill 3, allowing taxpayers to consolidate duplicative and unnecessary units of local government and addressing another element of Gov. Bruce Rauner’s agenda:

“With today’s passage of a local government consolidation package negotiated by Governor Rauner, House Democrats have again advanced legislation directly addressing the governor’s pre-conditions to negotiating a budget.

“As a new fiscal year quickly approaches with no budget yet in place, the governor’s approach of refusing to negotiate a budget is setting our state on a course for a third straight year of impasse and destruction. It’s not too late for the governor to change course and come back to the table. If and when he does, he will find House Democrats waiting to negotiate and compromise.”

  16 Comments      


*** UPDATED x1 *** Rauner admin claims Dem school bill will require $650 million to work

Wednesday, May 31, 2017 - Posted by Rich Miller

*** UPDATE ***  SB1 as amended passed the House with 60 votes, including one Republican, McAuliffe.

[ *** End Of Update *** ]

* I’m told this info is being shared by the governor’s office with legislators on the new House Democratic amendment to SB 1, the education funding reform bill. The Democrats are saying 250 school districts come out better than Chicago, based on per pupil money. The Rauner administration disagrees…

The “runs” being shared by House Democrats do not accurately reflect the real cost of this bill over and above FY17. Overall, this bill would require AT LEAST $650 million more than FY17 funding levels in order for schools to see increases. Here is what is missing from the “runs”:

An additional $313 million must be added to the base funding minimum. The runs being shared are based on the FY2016 budget. It does not include the stop loss grant.

· An additional $216 million to $250 million to fully fund the mandated categoricals. Although CPS will get its appropriate share of “claims,” it will also get its block grant in its base funding minimum. That means those funds are not available for other legitimate claims. To rectify that, the GA will either have to continue to prorate mandated categoricals or increase the education budget by an additional $250 million

· The runs do not include $50 million increase for early childhood education

With so many unknowns and without allowing time for real runs to be evaluated, members are forced to vote on this proposal without knowing the answer to at least four vital questions:

    1. Which school districts would suffer the most if the General Assembly fails to appropriate the extra $650 million required to hide this CPS bailout?

    2. Under this proposal, exactly how much money is being diverted from every school district to Chicago instead of being equitably distributed across all school districts?

    3. If this level of additional funding was provided to other proposals in the General Assembly, what would the runs look like? How would school districts statewide fare if $650 million in new money was put through the model in Sen. Barickman’s latest proposal?

    4. Similarly, how would school districts fare if $650 million were added to the current funding formula?

The Rauner folks are also issuing behind the scenes warnings that the Illinois State Board of Education’s eventual analysis will not show the same sort of winners that the Democratic analysis does because of the assumptions the Democrats are using. So, a lot of Democratic targets, they warn, could be voting for something that might not help their own schools.

  22 Comments      


*** UPDATED x1 - Another Pritzker response *** More to Pritzker’s Blagojevich wiretap conversations than first believed

Wednesday, May 31, 2017 - Posted by Rich Miller

* Back when then state Treasurer Alexi Giannoulias was in the running for a job in President-elect Barack Obama’s administration, none other than JB Pritzker told Gov. Rod Blagojevich that he was interested in being appointed to fill out the remainder of Giannoulias’ term.

“That’s the one I would want,” Pritzker said, according to federal surveillance recordings obtained by the Tribune.

Uh-oh.

* There’s lots of tantalizing sizzle in the first few paragraphs of this story entitled “J.B. Pritzker sought political office from Blagojevich, 2008 FBI wiretaps show,” but scroll way down

Pritzker already had raised the idea of being named state treasurer if an opening occurred, and he followed up during a Nov. 14, 2008, call with the governor.

“I’ve got a lot of reasons why it makes sense. The problem for you would be the same problem with the Senate really,” Pritzker said. “I’ve given you contributions.”

“Total nonissue,” Blagojevich replied. “First of all, you give money to everybody, like (Attorney General) Lisa Madigan, OK?”

“Yeah, yeah, yeah, no question,” Pritzker said.

“Which, incidentally, if you can do for me what you did for her, before the end of the year. Can you think about that?” Blagojevich asked, aware that Pritzker had donated $50,000 to Madigan during the previous year.

“I can’t, I mean, not while everything’s up in the air, but I hear ya,” Pritzker said. “I hear ya and, and and … But anyway …”

“If we go in that direction, though, if that does happen, I mean there’s some other people who can help us that you know,” Blagojevich said.

“Sure,” Pritzker said.

“If you feel skittish about that, which I believe you shouldn’t, but go ahead,” Blagojevich said.

“Yeah,” Pritzker replied, “I don’t think we should even talk about it but I understand what you’re saying.”

Blagojevich was a true sleazeball.

There’s lots more, so click here and read the whole thing.

* The Pritzker campaign sent me this response…

There was nothing untoward about JB Pritzker’s conversations and throughout his career he has considered different ways he could serve the people of Illinois. The record is clear that Rod Blagojevich was having dozens of conversations with both elected officials and private citizens, including members of President Obama’s transition team, which is why he is currently in prison. JB has been a proud supporter of hundreds of progressive and Democratic leaders and organizations in Illinois and across the country, especially those who have been supporters of early childhood education.

Also, as the campaign is pointing out, the last contribution Pritzker gave to Blagojevich was during the 2006 race, two years before those contributions.

*** UPDATE ***  A new Pritzker campaign statement…

“If one listens to the actual calls released in the story there was nothing untoward about JB’s conversations with the Governor,” said Pritzker campaign spokeswoman Galia Slayen. “Throughout JB’s life he’s had an interest in serving the people of Illinois and that’s exactly what he expressed when discussing a potential opening in the Treasurer’s office. In fact, when the Governor brings up whether JB would be interested in being appointed to the Senate, on multiple occasions JB expresses he is not and moves away from the type of conversation that landed Rod Blagojevich in prison.

“This is just a continuation of attacks made by Bruce Rauner and Republicans and it’s no coincidence that it was published by the Chicago Tribune on the last day of another session where Governor Rauner has failed to pass a budget.”

The jab at the Trib is unusual, to say the least.

  118 Comments      


*** UPDATED x1 *** 911 call center deadline ensnared by Statehouse war

Wednesday, May 31, 2017 - Posted by Rich Miller

*** UPDATE ***  The bill passed with 81 votes, so a whole lot of House Republicans broke with Gov. Rauner.

[ *** End Of Update *** ]

* Fox St. Louis from May 26th

Over 200,000 911 calls come into St. Clair County dispatch centers every year, according to Herb Simmons, the executive director of the Emergency Telephone System Board of St. Clair County.

Simmons said the legislation that currently funds the 911 systems is set to expire on June 30, meaning on July 1 people in Illinois could be without a 911 system.

Simmons said if the bill expires, call centers would be left without money for basic operations like electricity and the phone bill.

Although the 911 bill doesn’t expire until the end of June, the legislative session ends May 31, so lawmakers have to come up with something before they leave Springfield on Wednesday.

“I just hope somebody can come to their senses and say the state of Illinois has to have a 911 system up and operating at its full capacity because when people need it they deserve it,” Simmons said.

* Instead of just simply extending the sunset date, the House Democrats combined it with increased mobile phone taxes and AT&T’s bill to get out of the state mandate to provide old-style copper wire service. The tax in Chicago would rise from $3.90 to $5 per phone. Everyone else’s bills would rise increase to $1.50 from 87 cents.

The governor was not amused

Emergency dispatchers, phone companies, and lawmakers from both parties were in agreement. The fee on cell phone bills needed to increase — to keep 911 services going and to add new technology mandated by Illinois.

Rep. Chad Hays, R-Catlin, says he was not part of the talks, but he was ready to lend his support when talks broke down.

“My understanding of where it bogged down was this notion that there were perhaps disagreement between the City of Chicago and others,” Hays said.

Rep. Brandon Phelps, D-Harrisburg, says the “others” was the governor’s office — and industry members in the negotiations say that was indeed the reason the agreement disappeared.

The nixed deal involved letting Chicago increase its fee per phone from $3.90 to $5. All other cell phone bills in the state would see an increase of $1.50 from 87 cents.

“Evidently the way I’m understanding is that the governor pretty much pulled the Republicans and said ‘We don’t want to give Mayor Emanuel any more money,’” Phelps said.

Phelps is right. That’s what happened.

But by yesterday afternoon the Democrats decided to go ahead anyway and moved an amendment out of the Executive Committee with the AT&T language, the 911 sunset date extension and the tax hikes. Two Republicans voted with the Democrats, Hays and Rep. Reis.

Stay tuned.

  11 Comments      


*** UPDATED x2 - Motion withdrawn *** House Dems put hold on minimum wage bill after passing it

Wednesday, May 31, 2017 - Posted by Rich Miller

* AP

The Illinois House has approved a proposal that would raise the state’s minimum wage to $15 an hour over five years.

House lawmakers voted 61 to 53 Tuesday.

* But

Lawmakers approved the bill with a 61-53 vote largely along party lines, but Rep. Jay Hoffman, D-Swansea, filed a motion to keep it from moving to the Senate. Democratic Rep. Will Guzzardi said supporters were working to make sure the measure had enough support in the other chamber.

* SJ-R

After the legislation passed, Rep. Jay Hoffman, D-Swansea, put the bill on hold in the House. Guzzardi said the move was to ensure “all their ducks were in a row” before sending the bill to the Senate.

“It’s just some procedural work that we’re trying to do on our side to make sure everything is in order,” he said. “I’m still optimistic that we’re going to get this thing passed to the Senate and onto the governor by the end of the day tomorrow night.”

The Senate has passed several minimum wage bills in the past only to see them die in the House.

So, the bill’s passage took just about everyone by surprise yesterday, both in the House and in the Senate, which hadn’t yet met in caucus to talk about the bill. They even had to change the Senate’s chief sponsor yesterday to the person who normally handles this issue.

There’s a lot of suspicion and finger-pointing, with some senators believing that Speaker Madigan is playing his usual games with the issue and may not send it to the Senate until it’s too late, and some House members worried that the Senate can’t pass the bill. We’ll see.

* Meanwhile

Rep. Scott Drury, a Highwood Democrat who has often split with Madigan, took the opportunity to bash the leaders of his party for failing to call the wage hike for a vote when they had veto-proof control of the General Assembly or when there was a Democratic governor. Drury suggested that the Democratic leaders had called it for a vote in order to put the Republican governor on the spot.

“I am truly, truly concerned that what is going on here is that Maria, that one of our colleagues spoke about, is being used as a pawn to embarrass our Republican governor,” Drury said, referring to a minimum wage worker whose struggles to make a living were pointed to by Democratic lawmakers during debate on the floor. “It’s all about the left embarrassing the right and the right embarrassing the left.”

Drury is right.

*** UPDATE 1 ***  As of 4:42 this afternoon, the motion to reconsider has still not been removed.

*** UPDATE 2 *** The motion to reconsider has been withdrawn.

  73 Comments      


*** LIVE *** Session coverage

Wednesday, May 31, 2017 - Posted by Rich Miller

* Today is the last scheduled day of the spring session. It feels like it began years ago. Watch all the action and inaction in real time with ScribbleLive


  6 Comments      


*** UPDATED x1 *** Pritzker, Biss, Berrios respond to Kennedy speech

Tuesday, May 30, 2017 - Posted by Rich Miller

* Click here for the background if you missed it earlier. From JB Pritzker’s comms director Galia Slayen…

Today candidate Chris Kennedy held a political event trying to anoint himself as an ‘outsider’ and fighter against a broken property tax assessment system. But for years as a businessman and private citizen, Chris Kennedy personally hired what he now calls a ‘well connected law firm’ to lower his own home’s property taxes and used that same firm to lower the value on two business projects by nearly $9 million dollars. It’s laughable that millionaire Chris Kennedy is now railing against the exact same system he used to try and save millions.

Illinois’ property tax system needs to change, which is why months ago JB made it clear that he favors a progressive income tax to help the state provide more support to local schools, and bring down local property taxes.

Not to nitpick or anything, but Kennedy didn’t remove any toilets from his house or the Merchandise Mart to lower his property taxes by making them uninhabitable. Kind of a difference there.

* From Sen. Daniel Biss…

“We have to do right by our children and allow local communities the flexibility to meet the needs of their schools. The best way to do that is to be less reliant on property taxes to meet those needs in the first place. We must instead fix the school funding formula and ensure the state meets its obligations to local communities so they can replace property tax dollars directed at schools with much-needed state resources.

“At the same time, Illinois families need property tax relief. The best way to provide Illinois families with the property tax relief they need is to end the shell game between assessors, property tax lawyers and county boards of review. The self-dealing racket they’ve created enriches their bank accounts and campaign coffers, and the rest of us pay the price. We were reminded of how broken the system is by the news that my two ultra-rich opponents in this primary each got six figure tax breaks by using politically connected law firms. It’s not hard to see who this system benefits.”

* And from Cook County Assessor Joe Berrios’ office…

The Cook County Assessor’s Office assesses property and processes appeals with integrity and fairness, based on analysis of sale prices and real estate market conditions.

It is ludicrous to suggest that the Assessor’s Office led by Joseph Berrios treats properties in lower-market areas differently than those in other areas.

No elected official in Cook County has championed equality for minorities more than Assessor Berrios, who is the first Hispanic-American to serve as Assessor and was the first Hispanic-American to serve in the Illinois General Assembly. This Office assesses property, not people. It does so accurately and equally.

*** UPDATE ***  Mic drop…


  26 Comments      


It’s just a bill

Tuesday, May 30, 2017 - Posted by Rich Miller

* Press release…

Following is the statement of SEIU Healthcare Illinois President Greg Kelley following passage today in the Illinois House of Representatives of Senate Bill 81, to raise the minimum wage to $15 by 2022:

“While corporations are enjoying record profits, workers in Illinois are suffering. Today, the House of Representatives took a historic step to reversing this course and building our economy from the bottom-up, instead of placing our faith in the misguided hope that prosperity will trickle down.

“Senate Bill 81 represents a major advance for Illinois and is the answer to so many of the pressing questions facing our state. Growing inequality. Revenue problems and the related cuts to services. Population loss. The manufactured budget crisis. On behalf of our workers, I congratulate the representatives who chose to act boldly for our future.

“Opponents of raising the wage during today’s debate used the same old stale and discredited scare claims about automation and job loss. But we know, as our allies do, that nonpartisan, peer-reviewed research shows that raising the wage does NOT lead to significant relocation or unemployment. Its MAIN effect is giving workers a living wage.

“Now, as the legislative session comes to a close, we ask our allies in the Senate to pass this legislation that will help 2.3 million workers, grow our economy and give Illinois a much-needed raise.”

* Press release…

Statement attributable to Illinois Chamber of Commerce President & CEO Todd Maisch on increasing the minimum wage:

“Raising the minimum wage would be a devastating blow to job creators throughout Illinois. This proposal would raise the Illinois minimum wage to $15.00 per hour. Meanwhile, neighboring states including Missouri and Iowa have a minimum wage of nearly half that amount.

This is unacceptable.

If anyone wonders why jobs, economic opportunity and population keep leaving Illinois for other states, look no further than those state lawmakers who are legislating Illinois into a second-tier state for competitiveness.

The Illinois Chamber of Commerce has faith in Illinois’ economic outlook, but state polices cannot continue to make the climate ever tougher on our job creators.”

* Press release…

Members of Business for a Fair Minimum Wage representing a range of industries across Illinois commented in support of raising the minimum wage to $15 by 2022.

Dan Sherry, Owner, Kennedy’s Creative Awards, Waukegan: “Gradually raising Illinois’ minimum wage to $15 is the smart thing to do for our state, our businesses and our people. We start our employees now at $12 an hour and treat them well in order to retain quality staff. And it works. Our staff turnover is low, which results in fantastic customer service and repeat customers. That’s what it takes to have a strong business. When more businesses pay higher wages and workers have more money to spend, it will create a stronger Illinois business climate.”

Robert Olson, Owner, Olson & Associates in Springfield, Washington and Lombard: “Every day I see hardworking men and women who want to protect their families with insurance, but are struggling just to get by on low wages. Raising the minimum wage is a kind of insurance for both businesses and workers. It will enable workers to make ends meet and it will boost the consumer spending that drives business and strengthens the economy.”

David Borris, Owner, Hel’s Kitchen Catering, Northbrook: “Raising the minimum wage is pro-business. Local small businesses have a deeply personal interest in the financial health of the communities we do business in. The wellbeing of our customer base and our workforce shows in our bottom line. A healthy economy needs money circulating widely in a virtuous cycle of rising wages, consumer demand and job creation. That’s a recipe for success.”

Kelly Vlahakis-Hanks, CEO of Earth Friendly Products, which just celebrated 50 years of manufacturing in Addison: “Having manufactured in Illinois for 50 years, we know that raising the minimum wage to $15 will help businesses and employees thrive. Paying a living wage has improved our bottom line. We start employees at $17 and provide great benefits while selling our products at competitive prices. Our voluntary turnover rate is extremely low, our productivity has increased, and our profits continue to grow. Our ECOS brand is sold in 60 countries. And our employees are our greatest brand ambassadors.”

Tim Frick, Owner, Mightybytes, Chicago: “Raising our state’s minimum wage to $15 is smart business and smart policy to jump-start our economy now and strengthen it over the long term. Illinois businesses need customers with more money to buy our products and services. Workers at one business are customers at another. We can’t grow the economy by paying wages that workers can’t live on and then bemoaning weak consumer demand. It’s why I strongly support legislation that would raise Illinois’ minimum wage to $15 by 2022.”

Michelle Knox, Owner, WindSolarUSA, Springfield: “No one working full-time should have to live in poverty, but Illinois’ current minimum wage isn’t enough for people to afford even the basics. That needs to change. We know from experience with our own current entry wage of about $13, that a higher minimum wage results in more productive and loyal employees. And when the minimum wage goes up across the state, workers turn around and spend their hard-earned dollars at local businesses, which boosts revenues. A higher wage floor is a win-win for workers and businesses.”

Scott Pfeiffer, Partner, Threshold Acoustics, Chicago: “The current state minimum wage doesn’t allow working people to meet their basic needs, which is bad for business and our economy. When employees earn more, they spend it on goods and services they couldn’t afford before. This boost in consumer spending helps businesses grow and create more jobs – including the businesses that form our client base. A gradual increase in Illinois’ minimum wage to $15 by 2022 will strengthen our communities, boost businesses’ bottom lines and help reduce the strain on our social safety net – all of which will bolster our economy.”

* Press release…

The Illinois Retail Merchants Association (IRMA) issued the following statement regarding the passing of the minimum wage bill out of the Illinois House that seeks to increase the minimum wage in Illinois to $15.00 per hour by 2022:

“The political campaign to raise the minimum wage to $15 per hour has already resulted in reduced hours and eliminated positions in major cities where this has been enacted, including the City of Chicago. In fact, we have seen automation and self-service alternatives replace jobs due to continued efforts to artificially increase wages through government actions instead of working with employers. Quite simply, the state cannot bear another proposal that eliminates what little opportunity exists in Illinois. We urge lawmakers to show more restraint when making decisions that significantly and negatively impacts a business’ bottom line.”

Facts about the minimum wage:

Illinois’ minimum wage is already the highest in the Midwest. Illinois is poised to add another anti-competitive burden to retailers’ ability to compete with retailers in border states.

Raising the minimum wage will continue to keep people, especially teens, out of jobs. According to a January 2016 report from the University of Illinois at Chicago’s Great Cities Institute, only 12.4 percent of African Americans, 15 percent of Hispanic or Latinos and 24.4 percent of Whites (non-Hispanic or Latinos), ages 16 to 19 years old, are employed in Chicago. This destroys what little opportunity exists.

Minimum wage salaries are a floor, not a ceiling. Workers are not locked into minimum wage jobs, they have the ability to garner the necessary skills to advance and earn higher wages. Retail ranks are filled with those who started in minimum wage jobs.

Penalizes brick-and-mortar retailers over internet retailers. The minimum wage hike will not impact internet retailers, but penalize those retailers that invest in a physical property, workforce, pay property and sales taxes, etc.

…Adding… Ameya Pawar…

Ameya Pawar, 47th Ward alderman and Democratic candidate for Illinois governor, issued the following statement today following passage of Senate Bill 81 in the Illinois House of Representatives, to raise the minimum wage to $15 an hour:

“A New Deal for Illinois means a $15 minimum wage. This will help more than 40 percent of all workers from across a wide range of industries and in every corner of the state. It will benefit almost half of all African-American and female workers, and more than 60 percent of Latino workers. I applaud the members of the Illinois House of Representatives for taking this historic step today by passing Senate Bill 81. Now, I urge the members of the Illinois Senate to pass, and Gov. Bruce Rauner to sign, this common-sense bill into law.

“Low wages drive income inequality and stifle economic growth. I’ve seen it first-hand, as co-chair of the Working Families Task Force, which helped raise the minimum wage in Chicago. But the problem persists across Illinois. As I’ve toured the state in my campaign for governor, I’ve witnessed how low wages affect the lives of everyone.

“Over 2.3 million full-time workers earn so little they qualify for public assistance in the form of food stamps, housing subsidies for example. It’s immoral, and it shifts the costs of social responsibility from wealthy corporations to the taxpayer. Low pay costs Illinois taxpayers more than $5 billion a year in public assistance support. If families don’t have to scrape by each month, they can spend money in small businesses across the state, with rippling effects across every supply chain. Fairly-paid employees become good customers.

“I will remain committed to a $15 minimum wage for the Illinois. It will help generate revenue, end the subsidization of corporations who fail to pay a living wage and, more importantly, help the working families of Illinois who suffer in this rigged economy.”

…Adding… Another one…

The Chicagoland Chamber of Commerce issued the following statement following the passing of SB 81 out of the Illinois House, which would raise the minimum wage to $15 per hour by 2022:

“Over the last several years Chicagoland businesses have seen taxes, fees and mandates that have totaled over $2 billion. The business community cannot withstand further costs from a $15 an hour minimum wage, which places undue burden on our state’s employers and further inhibits business development and job growth in Chicago. We need to do the hard work of investing in our citizens’ workforce development, including vocational training, community college, and the trades. Not a politically expedient raise in the starting wage that does nothing to ensure that people are uplifted out of poverty over the long term. Should the Senate concur, we strongly urge the Governor to stand up for the business community by vetoing SB 81,” said Theresa E. Mintle, president & CEO, Chicagoland Chamber of Commerce.


…Adding…
More…

Democrat lawmakers in Springfield continue to impose new and costly mandates on Illinois employers.

Minutes ago, the Illinois House of Representatives narrowly passed a $15 per hour minimum wage that would apply to every business regardless of size. SB 81 passed on a vote of 61-53-2 and now heads to the Senate for consideration where Senate President John Cullerton has pledged a vote today or tomorrow before the spring session concludes. This represents a whopping 82 percent spike in the state’s minimum wage and would make it the highest in the nation when fully phased in after five years.

Additionally, the Senate voted 31-17-0 this afternoon to impose a new paid leave mandate on all Illinois businesses. HB 2771 mandates that every employer provide up to 5 paid days of leave to every employee annually and it now moves back to the House of Representatives for concurrence in the next two days.

These bills are politically-motivated measures designed to create a wedge issue in the coming 2018 gubernatorial election because they anticipate that Governor Bruce Rauner will veto these bills. Between 2013-2016, Democrats occupied the Governor’s mansion and held veto-proof majorities in the General Assembly but did not pass this type of legislation. Rather than voting on a minimum wage bill, Speaker Michael J. Madigan put a minimum wage referendum on the statewide ballot in an unsuccessful effort to drive voter turnout.

Illinois continues to lose manufacturing jobs while our neighboring states are recovering from the recession and adding tens of thousands of new jobs. For three years in a row, Illinois has had the dubious distinction of losing the largest number of residents who are fleeing Illinois for other locales.

The IMA strongly opposes both SB 81 and HB 2771 and will request a veto if they land on the Governor’s desk. In the meantime, IMA members are requested to contact their lawmakers immediately to request NO votes on these bills.

* And…

Today, JB Pritzker released the following statement in response to the Illinois House passing a $15 minimum wage bill:

“I’m thrilled to see the House pass a $15 minimum wage and will continue to stand with working families across our state to see this bill signed into law,” said JB Pritzker. “The fact is, working families and our most vulnerable communities continue to get left behind and raising the minimum wage to $15 moves our state in the right direction. This bill will help ensure that Illinois workers have the resources they need to support themselves and their families. While Bruce Rauner stands with special interests to oppose a minimum wage, I will always stand with Illinois’ working families in the fight to make this a reality for our state.”

…Adding… Senate President Cullerton…

“The Senate has been waiting a long time for this. I hope that my assurances that this will get a vote in the Senate helped give the House members the courage to do the right thing. The Senate is ready to take this up if the House can get the paperwork over to us.”

I’ve asked for clarification about that last bit on whether the House can submit its paperwork in a timely manner.

And subscribers will get the snark about “courage.”

  30 Comments      


*** UPDATED x2 - Durkin reponds - Madigan responds *** Rauner slams House’s Thompson Center sale legislation

Tuesday, May 30, 2017 - Posted by Rich Miller

* WTTW

The House on Monday did advance two other “reforms” desired by Rauner. A House committee advanced a plan (Senate Bill 886) to allow Rauner to begin the process of selling the James R. Thompson Center in downtown Chicago, and the full House passed changes to the state’s procurement code (Senate Bill 8) .

However, the Rauner spokesperson says House Speaker Michael Madigan “hijacked” the Thompson Center measure “to steer $50 million to the city of Chicago while putting the interests of a close friend and lobbyist ahead of Illinois taxpayers.”

* Mary Ann Ahern

One of the building’s retail tenants is represented by Madigan ally, attorney Mike Kasper.

The governor has predicted the Thompson Center will sell for $300 million dollars. The sale would take a zoning change from the Chicago City Council and Mayor Rahm Emanuel has expressed concern about the cost of relocating the CTA Lake Street station located inside the Thompson.

A spokesperson for Madigan said the comments from the governor’s office “make no sense,” noting the bill was approved in a House committee Monday night.

“There were extensive negotiations,” Steve Brown said in a statement. “And there were some of the ‘blank check’ ideas from the governor that are not part of the legislation. The state will get their loophole in the Surplus Property Act so they can proceed with the sale.”

The guy cannot ever seem to take a win.

*** UPDATE 1 ***  Press release…

Speaker Michael J. Madigan issued the following statement Tuesday after the House voted to pass Senate Bill 886, which would advance Gov. Bruce Rauner’s requested sale of the Thompson Center:

“Governor Rauner has prioritized the sale of the Thompson Center and today’s action moves us toward that sale. House Democrats have again demonstrated our willingness to work with the governor to achieve his goals, while ensuring—as is our duty—that these goals are achieved in the best interest of the people we represent. No negotiation can be one sided, and I urge the governor to now join House Democrats in resolving the most important issue facing our state, which is passing a state budget.”

*** UPDATE 2 *** House Republican Leader Jim Durkin…

“The Democratic bill to sell the James R. Thompson Center is another attempted money grab by the City of Chicago and a bad deal for the taxpayers of Illinois. The James R. Thompson Center was built with state taxpayer money and is owned by the State of Illinois – not the City of Chicago. Our first obligation should be to negotiate a deal that maximizes proceeds to benefit the State of Illinois. The bill that passed the House tonight takes care of Chicago at the expense of all other Illinois taxpayers.”

  28 Comments      


*** UPDATED x1 - Rauner responds *** Claypool: “Racially discriminatory state funding is a cancer upon CPS”

Tuesday, May 30, 2017 - Posted by Rich Miller

* From CPS…

Chicago Public Schools CEO Forrest Claypool today called on Governor Rauner and leaders in Springfield to fund Chicago students equally, saying the State’s racially discriminatory funding is a cancer on the school system that jeopardizes years of academic gains and the future of hundreds of thousands of school children.

Chicago’s children are 20 percent of the state’s enrollment but they receive only 15 percent of the state’s spending on education.



“This racially discriminatory state funding is a cancer upon CPS. In the past two years, our cuts, management reforms, and enhanced revenues have been mere radiation treatments, slowing down and postponing the cancer’s advance. But no homegrown remedies will ultimately stop its deadly reach. Only the removal of the cancer – by either Springfield or by the courts – will cure the patient…. All our efforts will be in vain if the State is allowed to continue to discriminate on the basis of race in distributing education dollars. Whether our victory comes in the courts or in the political arena, it must come, if we are to protect what we most cherish – the quality of the futures of our children, and everything that means for the future of this great City.”

Claypool pointed to the Board of Education’s continuing lawsuit against the State of Illinois.

“As noted by lawyers representing CPS and five parent plaintiffs in the ongoing civil rights lawsuit against Gov. Bruce Rauner and the State: “Although the State has not installed signs on schoolhouse doors that say ‘Whites Only’ and ‘Colored,’ the State has used its checkbook to accomplish exactly that.’”

Even more frustrating, these budget challenges come at a time of unparalleled academic success for Chicago children.

“These are inspiring stories, tributes to the American ideal that, armed with a quality education, you can rise above adversity and accomplish anything. That is a dream that should be available to all children, regardless of where they live, what their parents earn, or the color of their skin. It’s a dream worth fighting for. To do anything else would be surrendering to the most inconvenient truth of all: our indifference in the face of injustice.”

The full speech is here. I’ve asked the governor’s office for a response.

*** UPDATE ***  From Eleni Demertzis in the governor’s office…

A Cook County judge already debunked all of Forrest Claypool’s propaganda. This is just another stunt.

  16 Comments      


*** UPDATED x1 *** NEIU to cut 180 jobs

Tuesday, May 30, 2017 - Posted by Rich Miller

* Forwarded by two different readers…

TO: Faculty and Staff

FROM: Richard J. Helldobler, Interim President

DATE: May 30, 2017

RE: Northeastern to cut 180 positions; Town Hall at 3 p.m. today

I writing to inform Northeastern’s faculty and staff that the University will begin the implementation of layoffs as a result of a two-year state budget impasse that has deprived us of both an FY16 and FY17 appropriation.

The University has a $10.8 million projected cash flow shortfall through September 30. To address this and the lack of a state appropriation, Northeastern will be eliminating at least 50 Administrative and Professional (A&P) positions and approximately 130 Civil Service positions, which account for about 25 percent of each of these employee groups. In total, that is about 180 positions. Layoff notification and the Civil Service bumping process begin immediately and will take place during the next several weeks.

This is difficult news to share and also difficult to communicate completely through one email. You can get more information in an FAQ document that our Office of Human Resources has posted in the new “Furloughs and Layoffs” channel of NEIUport.

I invite all employees to join me at a Town Hall meeting that I will host in Alumni Hall today at 3 p.m. This event will not be livestreamed. During the meeting, there will be an opportunity to ask questions.

Emphasis added.

*** UPDATE ***  DGA…

“Today more Illinois residents lost their jobs and the state’s university system took another hit thanks to Bruce Rauner,” said DGA Illinois Communications Director Sam Salustro. “Thriving state universities and colleges have the potential to lift a state’s economy and secure a family’s future, but under Bruce Rauner these institutions are on life support and families are struggling to send their children to school. NEIU’s announcement should be a wakeup call for Governor Rauner to show real leadership and pass a budget.”

  44 Comments      


Protected: *** UPDATED x1 *** SUBSCRIBERS ONLY - Updates on CPS funding, Thompson Center sale

Tuesday, May 30, 2017 - Posted by Rich Miller

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*** UPDATED x1 - Hold removed *** If you can’t beat ‘em, put a hold on their bill

Tuesday, May 30, 2017 - Posted by Rich Miller

* Tribune

Democrats and Republicans did find a few areas of agreement Monday. They teamed up to overwhelmingly approve legislation that would bring automatic voter registration to Illinois, and members of both parties voted in favor of a measure that would allow judges to give repeat gun offenders longer sentences.

The measure is backed by Mayor Rahm Emanuel and Chicago police Superintendent Eddie Johnson, and was negotiated with the help of House Republican leader Jim Durkin and Democratic Sen. Kwame Raoul. Instead of a range of three to 14 years, judges would hand out sentences in the range of seven to 14 years. If they wanted to depart from that guideline, they would have to explain why.

Opponents, including members of the Black Caucus, argued there is no proof tougher sentences do anything to drive down crime, saying the proposal would lead to a spike in arrests of African-American and Latino men. Durkin sought to address the concerns of some lawmakers by offering changes that establish a trial program for first-time, nonviolent offenders charged with certain weapons crimes that is focused on rehabilitation and keeping them out of the prison system. He also changed the bill so it would expire in five years, at which point lawmakers would have to review its effectiveness.

While the legislation passed on a vote of 70-41, Rep. Thaddeus Jones, D-Calumet City, used a procedural maneuver to keep the legislation from going back to the Senate for final approval. Durkin said he hopes to overturn that motion Tuesday.

* Here’s the relevant rule…


Usually when you sponsor a controversial bill, you line up someone to file a “friendly” motion to reconsider before the opposition can do so. That obviously didn’t happen and I’m not sure why.

* Sun-Times

According to State Rep. LaShawn Ford, D-Chicago, the motion was filed to allow for further negotiation on the bill. Ford, who voted yes for the bill, said Jones wants a trailer bill attached, with additional criminal justice reforms that were discussed in negotiations. […]

Durkin said additional requests aren’t a condition of the bill as passed.

“The bill has already been vetted, super vetted in committee and also on the floor, and this is a priority right now for the city of Chicago, the mayor and the superintendent,” Durkin said. “But this is the kind of stuff we expect, unfortunately, in the weaning hours of the Legislature. It’s just gamesmanship.”

* WTTW

“We believe this bill is incomplete in its current formation. We are seeking to work on a holistic solution that includes revenue to impacted communities that will fully fund violence prevention programs, enhance public educational opportunities, job programs while also allowing police officers the tools needed to properly identify gun offenders,” Rep. Thaddeus Jones, D-Calumet City, said in a statement. “We believe gun violence should be declared a public health crisis and we will review the timetable on the hold and will work for a better solution. This bill does not provide that solution.” […]

In a bid to make the measure more palatable to critics who say that it will drive up the state’s prison population at a time the state can ill-afford it (and as Gov. Bruce Rauner is seeking to reduce the inmate population by 25 percent by 2025), the plan reduces the felony charge for non-violent vehicle burglary, and – at prosecutors’ discretion – allows first-time, non-violent offenders under the age of 20 to enter a diversion program instead of prison.

Black Caucus members fought stridently against the plan during the lengthy, and sometimes contentious, debate on Senate Bill 1722: Rep. LaShawn Ford, D-Chicago, said that it’s the wrong time given a federal investigation that showed a pattern of excessive force by CPD, Rep. Rita Mayfield, D-Waukegan, challenged why the measure applies statewide if it’s aimed at Chicago crime and Rep. Litesa Wallace, D-Rockford, said that the focus should instead be on resources to hire more police who can catch shooters as “if people are certain they are not going to be caught … they will run amok.”

“It just goes to show you how racist all of this is,” said Rep. Mary Flowers, D-Chicago, as she argued that Chicago’s violence stems from systemic racism that has kept African-Americans in a cycle of poverty.

Chicago Police Superintendent Eddie Johnson did himself no favors by over-promising during recent House committee testimony. Johnson pledged that the legislation would cut violent crime in half. Black Caucus members noted that six gun crime penalty enhancements passed in recent years haven’t stemmed the tide.

*** UPDATE ***  The hold has been removed.

  8 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Tuesday, May 30, 2017 - Posted by Rich Miller

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