* Illinois Supreme Court…
JUSTICE OVERSTREET delivered the judgment of the court, with opinion.
Justices Garman, Michael J. Burke, and Carter concurred in the judgment and opinion.
Chief Justice Anne M. Burke and Justices Theis and Neville took no part in the decision.
Byron Sigcho-Lopez, the alderman for Chicago’s 25th Ward, filed a complaint with the Illinois State Board of Elections (Board), alleging that his predecessor’s campaign committee, the 25th Ward Regular Democratic Organization (Committee), unlawfully paid personal legal fees from campaign funds. The Board dismissed Sigcho-Lopez’s complaint, and Sigcho-Lopez filed for administrative review in the appellate court. On administrative review, the appellate court affirmed the Board’s dismissal. 2021 IL App (1st) 200561. This court allowed Sigcho- Lopez’s petition for leave to appeal (Ill. S. Ct. R. 315 (eff. Oct. 1, 2020)), and for reasons other than those set forth by the Board and the appellate court, we affirm the appellate court’s judgment and the Board’s dismissal. […]
Until the General Assembly amends the statute to, for example, specifically prohibit payment from campaign funds for legal fees incurred in defense of criminal allegations against a public official or candidate, the issue requires the Board’s consideration on a case-by-case basis, applying the plain language of the applicable statutory provisions. In this case, despite the parties’ arguments regarding legal defense fees incurred as a result of public corruption allegations, the record here reveals that Solis had not been indicted on criminal charges but only that he had worked with federal investigators using his official capacity to expose public corruption. Considering the evidence before the Board, we find that the Board’s conclusion—that Solis’s legal fees amounted to a proper expenditure not prohibited as “satisfaction or repayment” of a personal debt (10 ILCS 5/9-8.10(a)(3) (West 2018)) but incurred “to defray the customary and reasonable expenses of an officeholder in connection with the performance of governmental and public service functions” (id. § 9-8.10(c))—was not clearly erroneous. Thus, we affirm the Board’s decision, finding that the complaint was not factually and legally justified.
There was no dissent.
…Adding… I was scheduled to appear on Jak Tichenor’s Illinois Lawmakers show earlier, so I didn’t have much of a chance to read through this carefully worded opinion before posting it. The justices focused primarily on what the campaign finance statute forbids. For example…
Whether legal defense fees amount to a personal debt that does not defray the customary and reasonable expenses of an officeholder in connection with the performance of governmental and public service functions must be evaluated on a case-by-case basis.
In the case sub judice, the parties ostensibly agree that campaign fund payments expended for personal use are prohibited by the Election Code. Sigcho-Lopez argues that legal fees expended for the criminal defense of public corruption charges amount to personal debt prohibited as a campaign fund expenditure, and the [25th Ward Regular Democratic Organization] argues that legal fees expended for the criminal defense of public corruption charges are not personal in nature because the public corruption charges would not exist irrespective of the public official’s position.
* The justices chose to “apply the plain language of the relevant campaign disclosure and regulation provisions of Illinois’s Election Code”…
In doing so, we reject the Committee’s argument that legal fees incurred as a result of public corruption and criminal activity, resulting in conviction even, may be subsidized by campaign funds because they are not personal debt incurred irrespective of the officeholder’s position. We cannot ignore that a public official’s actions that result, for example, in convictions of official misconduct or corruption are “clearly committed for their own interests.” … The essence of a conviction for official misconduct, conflict of interest, or public corruption is that the public official has attempted “to personally enrich himself or another by an act exceeding his lawful authority as a public servant.” […]
(W)e also reject the contention that, because an officeholder could not engage in public corruption absent his position as officeholder, his personal legal defense fees for proven official misconduct or public corruption may be subsidized by campaign funds as an expenditure “to defray the customary and reasonable expenses of an officeholder in connection with the performance of governmental and public service functions.”
* The court then noted a New Jersey Supreme Court decision which ruled that using campaign funds to defend against corruption charges was not an ordinary and necessary expense: “A grand jury indictment is not a customary, or usual, or normal incident of holding public office, nor does it occur in the regular course of events,” that court decreed…
This court agrees. Allowing campaign monies to subsidize public corruption amounts to an unreasonable interpretation of the Election Code.
* But…
On the other hand, we also reject Sigcho-Lopez’s contention that legal fees incurred to pay for a public official’s criminal defense against investigations or charges of public corruption amount to a per se prohibited personal debt pursuant to the plain language and spirit of section 9-8.10(a)(3) of the Election Code (10 ILCS 5/9-8.10(a)(3) (West 2018). We cannot ignore that not all allegations by political rivals are sound and that baseless allegations are at times asserted against public officials because of their very capacity as public officials. […]
Therefore, in limited circumstances, pursuant to the plain language of the campaign disclosure and regulation provisions of the Election Code, the Board may appropriately allow the use of campaign funds to pay for legal expenses in defending such allegations. See Wright, 174 Ill. 2d at 404 (holding ordinance invalid to the extent it attempted to indemnify officials convicted of crimes for their attorney fees and costs incurred in their unsuccessful criminal defense but making no express determination regarding the authority of any municipality or home rule unit to indemnify its officers and employees for legal expenses incurred in a successful defense); see also State v. Ferguson, 709 N.E.2d 887 (Ohio 1998) (although public officeholder may generally not use campaign funds to pay for legal defense against criminal charges, use of campaign funds to pay attorney fees incurred in connection with dismissed indictment that failed to state prosecutable violation was not prohibited attorney fees).
Clear as mud?
…Adding… Press release…
The following is a statement from Ald. Byron Sigcho-Lopez (25th Ward) in response to today’s Illinois Supreme Court ruling in Byron Sigcho-Lopez v. Illinois State Board of Elections, 2022 IL 127253:
“If the law allows corrupt politicians to use campaign funds for legal defense fees, then it’s time to change the law.”
…Adding… Press release…
In response to the Illinois State Supreme Court’s decision today to dismiss cases in which campaign funds are used for criminal defense fees until specific legislation prohibiting the practice is put into law, State Representative Deanne Mazzochi (R-Elmhurst), issued the following statement:
“With this decision, the Supreme Court has made it abundantly clear that the General Assembly needs to act immediately. We have seen millions in campaign funds expended by Mike Madigan on his own legal defense for his corruption indictment. Madigan may be the most prominent, but he is certainly not the only politician to selfishly do so. The people of Illinois deserve better.
Officials using their campaign funds for their own defense after they are tangled up in public corruption scandals is yet another example of how insider power and privilege in Illinois protect their own. I filed legislation, HB 2929 because we cannot allow campaign donations to finance corrupt politicians’ efforts to keep themselves out of jail.
Unfortunately for the people of Illinois, like numerous other pieces of legislation filed by myself and my colleagues to tackle out of control corruption in Illinois, Democrats have refused to allow these bills to be heard and voted on. Democrats have stifled every attempt made this spring to restore public trust.”
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*** UPDATED x1 *** It’s just a bill
Thursday, Mar 24, 2022 - Posted by Rich Miller
* This bill is still on First Reading in the originating chamber. Long way to go. But it’ll get some local attention…
In an effort to improve consumer protections in health care and hold health insurance companies accountable, the Illinois Department of Insurance (IDOI) worked closely with Representative Sue Scherer and Senator Doris Turner on legislation to further enhance consumer protections within the state’s Network Adequacy Transparency Act (NATA). The landmark law ensures consumers have access to a network of health insurance providers that meets proper time and distance standards.
HB5729 will give IDOI the authority to put in place more stringent time/distance standards than current federal requirements for many specialties to ensure consumers can access in-network providers close to home. Under the bill, the Department will pursue emergency rules to update time/distance network adequacy standards to help protect consumers’ access to care. The bill also provides for greater transparency in IDOI’s enforcement efforts, removing a confidentiality requirement for market conduct exams to allow the Department to inform consumers that an insurance company is undergoing an exam, while keeping details confidential until exams are finalized. Market conduct exams are the Department’s primary enforcement tool to review the practices of insurance companies regulated by the Department.
“Sen. Turner and Rep. Scherer have worked tirelessly to make sure that their constituents get the care they deserve, and I appreciate their willingness to work with my Department of Insurance to ensure that our laws are strong enough to protect consumers’ care,” said Governor JB Pritzker. “This legislation will make our system operate more transparently and give people and regulators more tools to hold health care insurers accountable.”
“I care deeply about improving and expanding access to healthcare for my constituents. I’m glad to partner with the Department to help protect and inform Illinois insurance consumers. This legislation enhances penalties to ensure compliance with state laws,” said Representative Sue Scherer. “Also, it creates more generous provider-to-patient ratios for network adequacy than are currently recommended under federal regulations for many specialties.”
“The new law will provide necessary oversight with the creation of a Network Adequacy Advisory Council, comprised of consumer, provider, and insurer representation,” said Senator Doris Turner. “The council will regularly update network adequacy requirements, including reviewing time and distance standards, and ratios to apply to all provider networks. This is what health insurance consumers need, and our state leaders will deliver.”
Earlier this week, the Department issued fines totaling $339,000 for Health Care Service Corporation (HCSC), the parent company of Blue Cross Blue Shield of Illinois for violating the material change notice requirement in the state’s Network Adequacy and Transparency Act. The Department found that the company did not properly file updated network adequacy filings following the termination of its contract with Springfield Clinic.
“The new law provides for additional consumer protections when a provider contract ends, and it strengthens network adequacy requirements with robust penalties for noncompliance” said IDOI Director Dana Popish Severinghaus. “We want to protect patients from having to travel far from their homes or wait too long to receive care. The Department can now establish strict wait times, and if the wait time to see a particular provider is excessive, the insurer must pay for the patient to see an out of network provider at an in-network rate. Current statutory requirements are also improved upon for both issuers and providers to update their provider network directories with accurate information.”
* Federal bill with a state angle…
[US Rep. Rodney Davis] has signed on as a co-sponsor of legislation that would require providers to follow notification laws in a minor’s resident state when the minor travels to another state for an abortion.
Illinois recently repealed its notification law, which required the parents of a minor be informed their child was seeking an abortion. Notification will not be required after June 1.
About 1,180 of the 46,243 abortions performed in Illinois in 2020 were for girls 17 and under — 1,092 age 15 to 17 and 88 under 15 years old, according to the Illinois Department of Public Health. That number was down from 1,343 for the same age group the year prior. […]
“The extreme abortion expansion laws pushed by Gov. J.B. Pritzker and Illinois Democrats are a disgrace,” Davis said. “I am proudly pro-life and strongly support the rights of parents to be involved in their children’s lives. This legislation I’m supporting would make sure that when a minor crosses state lines into Illinois to receive an abortion, their home state’s parental involvement in abortion laws are upheld.”
* Sun-Times editorial…
138,000.
That’s how many children in Illinois sank back into poverty after monthly federal child tax credit payments ended in December, according to one estimate. Another estimate pegged the number at 150,000. Nationwide, 3.7 million children are in families that lost these payments of $250 to $300 a month depending on the age of the child.
“Giving families that extra boost each month works,” as Joanna A. Ain, associate director of policy for Washington, D.C.-based Prosperity Now, told us. Her group and others have been pushing Congress to resurrect the monthly payments and make them permanent, a move we endorse. They aren’t hopeful Congress will act anytime soon, nor are we.
Reinstating this vital lifeline for some of the country’s neediest people is unlikely because it’s tied up with President Joe Biden’s massive Build Back Better initiative, which is all but dead.
There is something state lawmakers can do, however: Pass a state child tax credit. This was a key component of Gov. J.B. Pritzker’s platform when he was running for governor and later when he tried unsuccessfully to get the income tax referendum on the ballot.
* Press release…
A measure by State Senator Dave Koehler (D-Peoria) to offer nutritional, plant-based lunch options to students across the state advanced out of the Senate Education Committee on Tuesday.
“Students may require plant-based meal options for religious, health-based or other, personal reasons,” Koehler said. “Our schools should be prepared to offer nutritional options for students with dietary restrictions.”
House Bill 4089 requires school districts to provide a plant-based school lunch option that complies with federal nutritional standards to any student who submits a prior request.
The U.S. Department of Agriculture encourages the use of fresh fruits and vegetables in school meals, and offers a Fresh Fruit and Vegetable Program to grant access to students at least twice a week at times during the school day other than meal periods. The USDA encourages schools to develop innovative and varied methods to offer the fruits and vegetables to students, and a plant-based lunch option would be one way of doing so.
Plant-based school lunch options would also suffice as Halal options for Muslim students so long as there are no alcohol or alcohol byproducts, such as vanilla extract or other extracts, used in the preparation of the meal.
“All students deserve the opportunity to have a well-rounded, nutritional meal at school that meets their dietary needs,” Koehler said. “For some kids it may be the only substantial meal they get that day, and they need to be able to make the most of it.”
The legislation now awaits further consideration.
*** UPDATE *** Likely about to become a law…
A plan will be presented this fall to replace dismantled vehicle emissions inspection stations in Chicago after a measure spearheaded by State Senator Robert Martwick (D-Chicago) passed the House Wednesday.
“This legislation will help restore a much-needed service to the residents of Chicago and the near suburbs,” Martwick said. “People shouldn’t have to drive for miles and wait in long lines to test their vehicles.”
Senate Bill 1234 would require the Illinois Environmental Protection Agency to submit a written report to the General Assembly by Oct. 1 2022, which would include a plan to replace the dismantled emissions inspection stations within the city of Chicago. The plan would help establish a pilot program or permanent replacement program as well as a timeline to implement the plan.
The measure is designed to address the lack of available vehicle emissions testing stations in Chicago following the closure of four stations in 2016. Test sites in Bucktown and Harwood Heights were closed leaving the city of Chicago without a testing station. Two suburban facilities in Elk Grove Village and Tinley Park were also closed.
“The closure of these stations in 2016 created a burden for our residents, and I’m glad that we are one step closer to creating a plan that will make emissions testing more convenient for the residents of Chicago and the near suburbs,” Martwick said.
Senate Bill 1234 passed the House Wednesday with bipartisan support. It now heads to the governor’s desk.
* More…
* “We can stop sinking”: Legislators celebrate anniversary of Illinois’ break-up with payday lending
* Tougher insurance regulations surface in new House proposal following Target 3 report
* Suburban House Democrat proposes lifting ban on nuclear expansion to build microreactors: Rep. Mark Walker (D-Arlington Heights) sponsored a measure that would allow data centers, factories, or other large energy consumers to install smaller nuclear microreactors on site to help lighten the load on the rest of the energy grid that is becoming increasingly reliant on wind and solar energy.
* Illinois manufacturers seek passage of resolution urging White House to expand domestic oil exploration
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* Democratic Party of Illinois email…
Dear Illinois Democratic Campaign Leaders,
As you likely know, on Wednesday, March 16, members of IBEW Local 1220 called a strike against Window to the World (“WTTW”) Communications, the Chicagoland PBS affiliate. IBEW represents over two dozen workers responsible for various productions and shows on the channel, including the nightly local affairs program Chicago Tonight.
WTTW is currently inviting Democratic candidates in the 2022 primary elections to participate in their “2022 Primary Election Voter Guide.” We have been informed by the Chicago Federation of Labor and the Illinois AFL-CIO that participating in WTTW programming while the strike is ongoing would be considered crossing a picket line.
DPI Chair Rep. Robin Kelly has sent a letter expressing our support for IBEW Local 1220 and requesting Democratic candidates be given an opportunity to participate in programming, including the “2022 Primary Election Voter Guide,” after the strike is resolved. Until then, while the Democratic Party of Illinois supports the general mission of public television and understands the need for campaigns to communicate with voters this election cycle, we hope that you consider the seriousness of crossing a picket line before choosing to participate.
Workers are the backbone of the Democratic Party, and we will continue to stand with labor unions in the fight for fairness for all working people.
* Chair Kelly’s letter to WTTW…
March 24, 2022
Sandra Cordova Micek
President and Chief Executive Officer Window To The World Communications
Dear Ms. Micek:
As you know, on Wednesday, March 16, members of IBEW Local 1220 called a strike against Window to the World (“WTTW”) Communications. IBEW represents over two dozen workers responsible for various productions and shows on the channel, including the nightly local affairs program Chicago Tonight.
In recent days, we have become aware that WTTW is inviting Democratic candidates running in the 2022 primary elections to participate in their “2022 Primary Election Voter Guide” programming. We have been informed by the Chicago Federation of Labor and the Illinois AFL-CIO that participating in WTTW programming while the strike is ongoing would be considered crossing a picket line, and we have in turn notified Illinois Democratic campaigns.
While we support the general mission of public television, the Democratic Party of Illinois stands in solidarity with IBEW Local 1220 in their fight for a fair contract. Our hope is that a fair contract agreement can be reached soon, and that Democratic candidates who would like to participate in WTTW programming, including the “2022 Primary Election Voter Guide,” without crossing the picket line will be given an opportunity to do so once the situation is resolved.
Sincerely,
Rep. Robin Kelly
Chair, Democratic Party of Illinois
* Background from Robert Feder…
As the first strike in WTTW-Channel 11’s history enters its second week, politicians are being urged to honor the picket lines — both real and virtual. In an email to political candidates Wednesday, the Chicago Federation of Labor asked them not to participate in remotely recorded Zoom interviews on the public television station while the strike goes on. Local Union 1220 of the International Brotherhood of Electrical Workers, representing more than two dozen technicians, graphic artists and floor crew members, walked out March 16 over work jurisdiction and job protection issues. Among those who declined to appear on the “2022 Primary Election Voter Guide” was Chicago Alderman Pat Dowell, who’s running to succeed U.S. Rep. Bobby Rush in Congress. “Whether in person or online I will not cross a picket line at WTTW,” Dowell said. “I encourage other candidates not to be a part of the WTTW Voter Guide until the workers’ demands are met.” On-air employees and producers at the station, represented by Screen Actors Guild-American Federation of Television and Radio Artists, continue to do their jobs under contracts that bar sympathy strikes. A Window to the World Communications spokesperson said: “The company stands ready to return to good faith negotiations with the bargaining team’s representatives as soon as possible.” The last work stoppage at a Chicago station resulted in an 11-week lockout for camera operators, news writers and other technical workers represented by the National Association of Broadcast Employees and Technicians at ABC-owned WLS-Channel 7 in 1998. It was part of a nationwide labor dispute at the ABC Television Network.
*** UPDATE 1 *** Speaker Welch’s office…
In response to the International Brotherhood of Electrical Workers Local 1220 members striking against WTTW-Channel 11, Illinois House Speaker Emanuel ‘Chris’ Welch and the Democrats for the Illinois House released the following statement:
“IBEW represents over two dozen workers responsible for many of the stories and television productions that help to inform and shape our communities. These workers, and union workers everywhere, are the backbone of our state and our party. We stand in solidarity as they advocate for fair collective bargaining. We ask all Democratic Candidates running for the House to stand with us and not cross the picket lines. We will continue to stand with unions and the men and women of IBEW Local 1220 in their fight for fairness for working people.”
*** UPDATE 2 *** Gov. Pritzker’s campaign…
In response to the International Brotherhood of Electrical Workers Local 1220 members striking against WTTW-Channel 11, Governor JB Pritzker released the following statement:
“I’ve always supported the right for workers to organize and bargain collectively. Until WTTW-Channel 11 can come to an agreement on a fair contract, I stand in solidarity with the men and women of IBEW Local 1220 and will honor their strike.”
…Adding… Comptroller Mendoza…
I stand in strong solidarity with members of the International Brotherhood of Electrical Workers Local 1220 in their fight for a fair contract. I encourage WTTW to settle this dispute fairly and quickly. In support of our working men and women on the picket line at WTTW, I will respect the picket line and will not cross it.
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Does ballot order matter?
Thursday, Mar 24, 2022 - Posted by Rich Miller
* I posted the Board of Elections ballot position lottery results yesterday, but Taylor Avery fleshes it out for Sun-Times readers…
In a crowded race, candidates vie for any advantage they hope will mean the difference on Election Day — such as being listed first on the ballot.
Whether that coveted position will turn the tide for Darren Bailey remains to be seen, but the state senator from southern Illinois was celebrating Wednesday after he won the lottery for the top spot on the June primary ballot for governor.
“GOOD NEWS: we’re first on the Republican Primary ballot to fire JB Pritzker,” the Xenia Republican shared on Facebook and Twitter following the lottery. […]
“It’s tradition. It’s part of the summer camp aspect of campaigning,” [Christopher Mooney, a political science professor at the University of Illinois at Chicago] said. “But does it have an impact on average? No, it doesn’t. But again, in an individual case, who’s to say? We don’t know.”
Jesse Sullivan got the last spot on the ballot.
* Kina Collins fundraising email…
With the help of over 100 volunteer petition circulators, our campaign submitted six times the minimum number of petitions required to get on the ballot. But to be first on the ballot in Illinois, you have to win a lottery. Literally.
Well, guess what? We WON the lottery. Yesterday, we found out that my name will be listed first on the ballot on June 28th. Above the incumbent! This is a huge opportunity for our campaign. Studies suggest that being first on the ballot can add as much as 10% to a candidate’s vote share.
Collins is up against US Rep. Danny Davis.
From the study she referenced…
Abstract
Texas primary and runoff elections provide an ideal test of the ballot order hypothesis, because ballot order is randomized within each county and there are many counties and contests to analyze. Doing so for all statewide offices contested in the 2014 Democratic and Republican primaries and runoffs yields precise estimates of the ballot order effect across twenty-four different contests. Except for a few high-profile, high-information races, the ballot order effect is large, especially in down-ballot races and judicial positions. In these, going from last to first on the ballot raises a candidate’s vote share by nearly ten percentage points.
Governor’s races are high-profile, high-information contests and Collins is running against a legendary political figure. The study found a big impact on down-ballot races with “high rates of voter abstention.” This is mainly due to voter fatigue as they move down the ballot. Local judges are often at the bottom, so that’s where the biggest voter abstentions are and where ballot position is most important.
…Adding… Alexi Giannoulias fundraising email…
This month has been a defining moment for our campaign for Secretary of State. We filed our petitions and are now officially on the ballot, winning the FIRST position on the ballot. I’m immensely grateful for all the overwhelming support we’ve received as we head into the final 100 days of the primary campaign. We could not have achieved this momentum without your early support of our campaig
This is, of course, another high profile, up-ballot race.
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* Greg Hinz…
The Illinois House has approved legislation to fill most of a huge hole in the state’s unemployment trust fund with leftover money from the last federal COVID relief bill, the American Recovery Plan Act.
But Springfield Republicans say the figure agreed to in the bill is too stingy and would force a “back-door tax increase.” And with negotiations between labor and business groups over how to refill the remaining $1.7 billion hole at least temporarily stalled, the money will have to come from a combination of tax hikes on employers and benefit cuts for workers, they contend.
The legislative action came Wednesday night on a largely party-line 68-43 roll call, when the House voted to allot $2.7 billion of the state’s remaining $3.5 billion in ARPA funds to fill a $4.5 billion gap in the trust fund that covers unemployment claims within the state. The Senate had passed $2 billion earlier, but called that a placeholder.
A spokesman for Gov. J.B. Pritzker confirmed that he supports the $2.7 billion figure allocated in the legislation, but House GOP leaders and gubernatorial hopeful Richard Irvin charged that the state should allot all $3.5 billion in available ARPA money.
* Dan Petrella and Jeremy Gorner…
Pritzker and the Democratic-controlled General Assembly previously allocated about $4.6 billion from the federal relief plan for a variety of purposes such as grants for hospitals, violence prevention programs and infrastructure projects.
But Republicans, who since last spring have repeatedly criticized the majority party for not addressing the unemployment fund debt in the current year’s $42 billion operating budget, maintained that only about $1.2 billion of the federal relief money has actually been spent, leaving enough money to cover the full debt in the unemployment fund.
[…]
Illinois and a host of other states borrowed from the federal government in the early phase of the pandemic to keep unemployment checks going out to out-of-work residents as businesses shut down, in large part due to Pritzker’s executive orders.
Lawmakers are up against an April 1 deadline to allocate the federal relief dollars to the unemployment fund. If they don’t act by then, rules from the U.S. Treasury Department would prohibit Illinois from reducing the amount or length of unemployment benefits until 2025.
* Jerry Nowicki…
As of Wednesday, the state had already accrued $41 million of interest on the debt at a rate of 1.59 percent. That interest was due to be paid by Sept. 30, according to the U.S. Treasury.
By November, without action, that interest was expected to grow to $80 million, Hoffman said. Interest can’t be paid through ARPA, so it would require a General Revenue Fund allotment, he added. Taking action by November would diminish that amount, he said.
The measure also allocated $898 million to pay off old group health insurance bills, an added $300 million to pension payments beyond statutory levels and $230 million to pay off the unfunded liabilities of the College Illinois savings program – all cornerstones of Gov. JB Pritzker’s debt retirement initiatives put forth in his budget proposal. Those allotments will come from the state’s General Revenue Funds from an anticipated Fiscal Year 2022 surplus.
The pension spending would create $1 billion in savings to the state’s pension system over its life, while the group health insurance payments would save over $100 million in interest and the College Illinois payment would create a $75 million savings, according to estimates from House Democrats.
* Gov. Pritzker…
Illinois is putting our fiscal house in order and paying off our debt. I applaud House Democrats for prioritizing legislation that will use our resources in the most fiscally responsible way: SB2803 will pay down more than $4.1 billion in debt. I especially appreciate the tireless work to dedicate additional revenues to one-time efforts that will produce a stronger budget for years to come, and I extend my gratitude in particular to Leaders Greg Harris, Marcus Evans and Jay Hoffman and Reps. Will Davis, Robyn Gabel, Lisa Hernandez and Michael Zalewski for advancing this priority.
I’m disappointed that Republicans are putting their politics ahead of fiscal responsibility while Democrats in the General Assembly are taking the lead to put our fiscal house in order.
SB 2803 Key Facts
• As amended in the House, SB 2803 accomplishes several key goals the Governor laid out in his State of the State and budget proposal, paying off $4.1 billion in debt:
• Dedicates a substantial amount of remaining ARPA recovery fund dollars to ($2.7 billion) to stabilize the state’s unemployment insurance trust fund, helping small businesses
• Eradicates unfunded liabilities in the College Illinois! program, which has been on the brink of insolvency
• Pays of nearly $900 million in legacy debt for employee health insurance
• Makes an extra payment of $300 million to the state’s pension funds, reducing liabilities over $1 billion
* Rep. Mark Batinick…
In response to the Illinois House’s passage of Senate Bill 2803 on Wednesday night, State Representative Mark Batinick (R-Plainfield) released the following statement:
“House Republicans have had a plan for a year: plug the $4.5 billion hole in our Unemployment Insurance Trust Fund and solve the problem. The plan passed tonight was rushed and only fixes a little over half the problem and spends the rest on Democrat pork projects.
“The reality of the situation is there is still a $1.8 billion shortfall in the Unemployment Insurance Trust Fund that will need to be plugged. How will it be plugged? Either through tax increases on jobs or benefit cuts on people who receive unemployment insurance.
“The fiscally responsible route we could have taken would have been to pass legislation paying off our debt in full to avoid these two consequences. This would have also avoided unnecessary interest penalties and prepared us financially in case there’s another emergency. The legislation passed out of our chamber tonight instead will help fulfill Governor Pritzker’s spending wish list and leave taxpayers on the hook for the remaining balance in the fund.”
* Richard Irvin…
Aurora Mayor and candidate for Governor Richard Irvin released the following statement after the House voted to pass JB Pritzker’s latest tax hike on Illinois families:
“After trying to pass the largest tax hike in our state’s history, the Tax-Hiker-In-Chief is trying once more to tax Illinois families and businesses out of this state. Thanks to his reckless disregard for shoring up the Unemployment Insurance Trust Fund, Illinois employers and workers will have to make up the difference, resulting in billions of dollars in tax increases and benefit cuts. Tonight’s vote is yet another example as to why voters don’t trust Pritzker and Springfield politicians to do anything right, and exactly why we must take our state back.”
Illinois workers will see cuts to their unemployment benefits, and the fund will continue to accrue millions in interest charges. Many other states across the country used federal stimulus funds to repay loans to their unemployment systems, but under Pritzker’s lead, Illinois spent those dollars elsewhere. Despite warnings and urging from lawmakers to utilize federal ARPA money to replenish the fund, he instead willfully chose to use the money for election-year gimmickry and increased state spending that will now result in raising taxes on the residents of Illinois.
They’ll probably just bond it out.
…Adding… Hannah Meisel has a very good story and some great charts…
…Adding… From an exchange with a top Dem…
If we don’t pass a law regarding ARPA funds use for unemployment insurance by the end of the month, the ability to reduce benefits – and use ARPA dollars – comes off the table.
Labor doesn’t want to reduce benefits. But Democrats are advancing legislation to try to make sure the traditional balance used to solve these problems remains viable.
The GOP is going to all vote no, which would have the effect of stringing out the process and likely, ironically, reduce options and put far more dire consequences on business.
…Adding… This is how Speaker Chris Welch is framing the issue for his constituents back home…
House Democrats vote to pay off over $4 billion in debts
On party lines, the Illinois House approved a measure to get the state’s fiscal house in order and pay off over $4 billion in debt. This proposal includes:
• $2.7 billion in the unemployment trust fund that took a serious hit during the coronavirus pandemic
• $300 million in extra pension payments which will yield more than $1 billion in savings
• $900 million toward the group health bill backlog likely saving taxpayers $100 million in interest payments
• $230 million toward the College Illinois program to ensure 25 thousand families have funding for education
“This is exactly what fiscal responsibility looks like,” said Speaker Welch. “It’s disappointing that every Republican voted against paying off our debt, but I’m incredibly proud Democrats are united in building a strong financial future for Illinois.”
…Adding… Sullivan campaign…
Jesse Sullivan, Republican candidate for governor, released the following statement in response to the House passage of SB 2803:
“J.B. Pritzker has never met a tax hike he doesn’t like. And his failure to pursue commonsense budgeting is now costing Illinois families and businesses millions of dollars. The governor could have fixed this problem more than a year ago by using federal aid money to replenish our unemployment insurance trust fund, as more than 30 states have done. Instead, he went on a corrupt spending spree, including $1 billion in capital projects controlled by Democrats. Taxpayers and small businesses deserve better.”
…Adding… The Senate just passed the bill 39-16. From Leader McConchie…
Senate Republican Leader Dan McConchie (R-Hawthorn Woods) issued the following statement after the Illinois Senate passed legislation that failed to fully fund the Unemployment Trust Fund:
“Illinois has long been known for its financial issues, and today’s decision to leave a large hole in the unemployment trust fund is just another example of how Democrats continue to mismanage this state. Despite this payment, Illinois still has the fourth largest deficit in the country and is left with the second largest shortfall in state history. The impact this will have on employers across the state will be devastating. To no fault of their own, they were forced to lay off workers and close their doors, and will now be on the hook to pay for the unemployment costs ensued by the pandemic and the fraud that engulfed the Department of Employment Security. These industries and their workers deserve better, but they were failed today.”
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