Capitol Fax.com - Your Illinois News Radar

No ratings bump, but Fitch revises Illinois outlook from Negative to Stable

Wednesday, Jul 31, 2019 - Posted by Rich Miller

* A small bit of good news. From a press release…

Fitch Ratings has affirmed the state of Illinois’ Issuer Default Rating (IDR) at ‘BBB’ and revised the Outlook to Stable from Negative.

Additionally, Fitch has affirmed the ‘BBB’ ratings on the state’s outstanding GO bonds, and the ‘A-’ ratings on the Build Illinois senior and junior obligation sales tax revenue bonds, which are linked to the state’s IDR based on state dedicated tax analysis.

The Rating Outlook for the above bonds has been revised to Stable. […]

The Outlook revision to Stable reflects key developments over the last three months for the state including an unanticipated revenue surge in April 2019 that positioned the state to resolve a sizable fiscal 2019 mid-year budget gap and enact an on-time fiscal 2020 budget. The positive April revenue surprise seen in Illinois, and other states, supported a significant increase in fiscal 2020 estimated revenues, easing the path to budget adoption and allowing the state to reduce (but not eliminate) reliance on non-recurring measures. The state now has a plausible and achievable 2020 budget plan, leaving the state better positioned from a fiscal perspective, and the potential for a rating downgrade in the near-term has receded. The recent gains, however, are somewhat tenuous and their sustainability hinges on the state’s actions over the next several years, particularly around the November 2020 ballot initiative on the graduated individual income tax.

Illinois’ ‘BBB’ IDR and GO ratings continue to reflect an ongoing pattern of weak operating performance and irresolute fiscal decision-making that has produced a credit position well below the level that the state’s broad economic base and substantial independent legal ability to control its budget would otherwise support. The state’s elevated long-term liability position remains a key credit challenge.

More at the link.

…Adding… Deputy Gov. Dan Hynes…

Illinois is already much stronger than we were a year ago, and it’s refreshing that Fitch is recognizing the good news and progress we’ve made so far. We know we have a long way to go, but we are committed to improving our long term fiscal stability and building an economy that works for everyone.

15 Comments

A possible work-around of the bluenoses

Wednesday, Jul 31, 2019 - Posted by Rich Miller

* We’ve all seen the recent stories…

* Winnetka approves resolution halting cannabis sales until officials can examine local ordinances

* Lake Forest and Lake Bluff open to banning recreational marijuana sales

* Suburbs say no to recreational marijuana - Naperville, Libertyville and Bloomingdale vote themselves weed-free.

* Are suburbs going to allow sale of marijuana? So far more say ‘no’ or leaning no

* Northbrook board voices initial approval of first recreational cannabis business proposal

* But there won’t be that many dispensary licenses anyway…

The new law would allow the state’s 55 existing medical marijuana dispensaries to open new retail shops on their current sites, and open a second site elsewhere — but only if local officials allow it.

In addition, applications for up to 75 new dispensaries will be due by Jan. 1, 2020, and are to be awarded by May 1, 2020, so entrepreneurs will want to know which areas will allow them to operate.

So, that’s 190 dispensaries in a state of 12.74 million people with 1,299 incorporated cities, towns and villages, 102 counties and 1,432 townships.

* More from today’s Tribune…

In other states with legal pot, such as California and Colorado, where bigger cities tend to allow it, the majority of local governments ban pot sales. That results in large rural areas with no access to retail shops, which encourages a continued illegal market.

If the same thing happens in Illinois, [Chris Lindsey, legislative analyst for the Marijuana Policy Project] said, it would make a good argument for allowing home delivery, so people who have trouble travelling will have access.

Thoughts?

…Adding… Greg Hinz…

The wife of one of the architects of Illinois’ new law legalizing recreational marijuana [Rep. Kelly Cassidy] has landed a big job with an Elmhurst-based cannabis company.

Revolution Florida, a sister company of Illinois-based marijuana grower and dispensary Revolution Enterprises, named Candace Gingrich vice president and head of business development for the firm’s newly expanded operations in the Sunshine State. […]

Cassidy said in a phone interview she sees no conflict of interest in her spouse accepting the post, and rejected the notion that the job appears like a reward for services rendered.

“I sought an ethics opinion and got it cleared” by the House ethics officer, Cassidy said. Beyond that, she added, Revolution “has gone above and beyond to make sure Candace had no role in Illinois, just to cover appearances.”

58 Comments

Open thread

Tuesday, Jul 30, 2019 - Posted by Rich Miller

* I am finally leaving St. Louis and driving back to Springfield, so I’ll be away for awhile. Please be nice to each other and keep the conversation Illinois-centric. Thanks.

…Adding… I’m back. Posting to resume in a bit.

28 Comments

*** UPDATED - Pritzker admin say it may not apply to Sterigenics *** Sen. Curran files bill to ban ethylene oxide, wants special session

Tuesday, Jul 30, 2019 - Posted by Rich Miller

* Press release…

As Willowbrook and surrounding communities continue their fight in court to keep Sterigenics closed, State Senator John Curran (R-Downers Grove) continues to work on legislative solutions to keep dangerous ethylene oxide emissions out of the communities.

“Sterigenics should not be allowed to reopen,” said Sen. Curran. “This facility has been leaking dangerous levels of ethylene oxide into the area for decades, and there has been zero accounting for the damage that they have already done.”

Curran has continued to file and advance legislation to protect the community since news of the issues first broke. He was recently able to pass legislation into law, SB1852, which created the strongest regulations in the nation on the deadly gas. Senator Curran believes the new law, along with existing laws, is more than enough to allow the Illinois EPA to deny Sterigenics any permit to use ethylene oxide in WIllowbrook.

However, the Illinois EPA and Attorney General’s office recently entered into an agreement that could possibly allow the Sterigenics facility to reopen, an agreement that also does not hold the company responsible for years of dangerous emissions. Curran is filing additional legislation to make sure the facility stays closed.

“The only way to guarantee the residents of Willowbrook and the surrounding communities clean air that is free of ethylene oxide today, tomorrow and for generations to come, is to completely eliminate the source of the contamination,” DuPage County State’s Attorney Robert Berlin said. “I applaud Senator Curran for his continued efforts on behalf of the affected residents not only in his district but on behalf of all Illinoisans who have a right to breathe clean air.”

Senate Bill 2264 completely bans the use of ethylene oxide by CAAPP permit holders for most operations by January of 2021, and for all CAAPP permit holders by January of 2022. The dates are designed to help ensure a safe transition for the supply of critical medical devices. It also creates a strong financial disincentive for Sterigenics to spend millions of dollars in upgrades to attempt to meet the extremely stringent requirements of SB1852 for a very limited term of operation before the complete ban takes effect.

“I am grateful that Governor Pritzker has offered to call a special session to deal with this issue and that he has clearly stated that he supports a ban on the use of ethylene oxide,” said Sen. Curran. “The Governor has proven that he is able to use his position to push through major legislation and I look forward to working with him to advance this bill.”

Senator Curran also continues to support the legal efforts of Willowbrook and the surrounding communities to stop the existing seal order on Sterigenics from being lifted.

I’ve been saying for a while that DuPage County State’s Attorney Berlin is a big key to solving this. He and AG Raoul worked out the agreed order which allowed Sterigenics to reopen and now he’s supporting legislation to outright ban ethylene oxide.

I asked the governor’s office, the House Republicans and the Senate Democrats for a response.

…Adding… John Patterson with the Senate Democrats…

Thanks for letting me know about this, Rich.

We look forward to reviewing the legislation.

Translated: Curran didn’t reach out to the super-majority party before filing his bill.

* House GOP…

Rich - We, too, look forward to reviewing

*** UPDATE *** Governor’s office…

We are reviewing this legislation, but a preliminary analysis indicates it would not apply to Sterigenics, which will not require a CAAPP permit in the future. We remain open to working with members of the General Assembly on this issue.

…Adding… Press release…

Ethylene Oxide

Today, the Chemical Industry Council of Illinois issued the following statement after legislation was introduced in the State Senate to ban the use of ethylene oxide:

“We strongly oppose this effort to ban this critical chemical building block. Ethylene Oxide helps make many products Illinois families use every day, including certain plastics, adhesives, safety glass, textiles and personal care products. Critically, ethylene oxide supports our healthcare industry through the sterilization of medical supplies that are relied on by families across our state and region.

“Over 1,500 Illinois jobs would be directly impacted by a ban of ethylene oxide while countless other Illinois jobs dependent on products made with ethylene oxide would be affected.”

“Illinois already has the most stringent standards for ethylene oxide in the nation. Banning this important chemical would harm the healthcare industry our state relies on and unnecessarily burden businesses and consumers across our state.”

21 Comments

Coli is cooperating with feds

Tuesday, Jul 30, 2019 - Posted by Rich Miller

…Adding… The plea agreement is here.

* Sun-Times…

A onetime labor leader with ties to several prominent Illinois politicians is set to plead guilty in federal court Tuesday in a lesser-known extortion case that still threatens to reach deep into the state’s halls of power.

A federal grand jury accused Teamsters leader John T. Coli in 2017 of extorting $325,000 from Cinespace Chicago Film Studios, the clout-heavy studio that is home to such hit TV shows as “Chicago Fire” and “Empire.”

The case has quietly simmered in the background for the last few years. Since then, the Chicago Sun-Times revealed that the case against Coli was built with the help of Cinespace President Alexander S. “Alex” Pissios, who wore a wire against Coli.

Pissios told authorities that Coli had introduced him to Gov. Pat Quinn and Chicago Mayors Richard M. Daley and Rahm Emanuel, as well as Illinois House Speaker Michael J. Madigan and Illinois Senate President John Cullerton. They all received campaign contributions from organizations under Coli’s control.

* And then a bombshell was dropped today…

Coli’s plea agreement calls for up to about 3 years in prison, but if he cooperates fully prosecutors will recommend only about a year and a half.

— Jason Meisner (@jmetr22b) July 30, 2019