* Leslie Munger defends Gov. Rauner’s veto of the Debt Transparency Act, which is supported by Comptroller Mendoza and would require monthly reports from all state agencies about how many vouchers they were sitting on…
As Gov. Bruce Rauner noted in his veto of the bill, the desire to provide more transparency about the state of our finances is a good one. As the former state comptroller, I kept a running estimate of vouchers in agencies though frequent phone calls so we could plan for payments and manage available cash.
OK, but what happens when the governor doesn’t want to get along with the comptroller? This is what happens…
To give you an idea of how ridiculous this process is, the state’s bill backlog unexpectedly grew by $1 billion one day in May when the governor’s Office of Management & Budget abruptly revealed the unpaid invoices.
* Back to Munger…
But the Debt Transparency Act, with its burdensome paperwork and overreach by the comptroller’s office into the executive branch, is not the solution.
It’s too burdensome to require agencies to keep track of their unpaid bills? C’mon.
* Munger…
Vouchers come into the state agencies continually. Paper reports are out of date almost as soon as they are issued. Our agencies are already burdened by the state’s decades-old methods for processing budgets, invoices and fund transfers, and an antiquated technology infrastructure. This has resulted in dysfunctional, unclear and paper-based systems that require manual entry of payment vouchers because our system cannot accept vouchers via email.
Any report on unpaid bills will be out of date as soon as it’s issued.
* Munger…
There is a better solution. In 2015, the state purchased the software for a new statewide enterprise resource planning (ERP) system. The system, once implemented, will allow vouchers to be submitted electronically, eliminating the need for manual data entry and saving the state hundreds of millions of dollars annually.
Importantly, once a voucher is entered into the system it is transparent throughout the entire process. Everyone — including the comptroller — will have visibility to all the bills held at all agencies with a click on the computer. No need for additional staff to comply with the reporting requirements. No need for burdensome monthly paperwork. Real-time data. Faster. Cheaper. Better.
Rather than doubling down on our antiquated inefficient paper-based system, Comptroller Susana Mendoza should reinstate the funding for the implementation of the ERP system and be the strong advocate for improving the accuracy, efficiency and transparency of the financial transactions in the state.
…Adding… From comments…
This is total nonsense. Just because an agency has an invoice doesn’t mean they create a voucher right away. If someone is sitting on invoices without creating a voucher the Comptroller has no idea what’s out there & that’s true even if ERP were 100% live today.
That sounds mighty fine, but this is what Comptroller Mendoza had to say about ERP in March, almost two years into this upgrade…
* If any of the 263 State’s legacy accounting systems have been retired through the ERP, our Office has not been notified. The project is scheduled to be completed by 2019.
* The ERP pilot agencies have encountered so many errors that requests for change orders will require an estimated 15,000 hours, according to information shared by program administrators with the program oversight group.
* Officials from the Rauner Administration report that $63 million, or one-quarter, of the ERP budget has been spent.
* Related…
* Mendoza: Taxpayers deserve a better look at the state’s bills
* Inside Illinois’ $16 billion backlog: What does the state owe your town?
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* Indivisible Chicago…
Crosscheck is an interstate data-sharing program between 28 states. Participating states send their entire voter file to a server in Arkansas. Kansas then downloads all of this data, runs a rudimentary name matching algorithm, and then uploads the results back to Arkansas. We have the passwords to every step in this process.
We’ve posted documents obtained by Indivisible Chicago as a result of FOIA requests to Florida and Illinois. The “yellow paper” redactions are our redactions of usernames and passwords carelessly sent via email. We have redacted instead of posting publicly, as we take the sensitivity of this data more seriously than the Illinois, Arkansas, and Kansas election authorities.
The documents include:
Passwords to Crosscheck Results files for all states, 2011
Passwords to Crosscheck Results files for all states, 2013
Passwords to Crosscheck Results files for all states, 2014
Illinois State Board of Elections, full voter file encryption password, 2012
Illinois State Board of Elections, full voter file encryption password, 2014
Arkansas decides not to change passwords, 2011
ISBE username/password to Arkansas FTP server, 2016
ISBE username/password to Arkansas FTP server, 2017
Florida-Kansas matches; Florida provides Kansas SSN4
ISBE IT emails Kansas asking how Crosscheck works\basic security questions, 2017
For some background on how counter-productive and perhaps even dangerous Crosscheck is, click here.
* The documents appear to show the group was sent this info via FOIA…
ISBE Encryption Password - 2012
The password used by the Illinois State Board of Elections to encrypt over 8 million voter records in a file sent to Arkansas and Kansas state authorities.
ISBE Encryption Password - 2014
The password used by the Illinois State Board of Elections to encrypt over 8 million voter records in a file sent to Arkansas and Kansas state authorities. NOTE: This is the same password as 2012, only it ends with “2014″ instead of “2012″.
FTP Server Credentials - 2016
Both the username and password, in a single email, which allows Illinois to login to the FTP server in Arkansas which houses over 100 million voter records across 28 states. The server connection is not encrypted, meaning this username/password is not only sitting in email but is transmitted across the internet in plain text.
FTP Server Credentials - 2017
Same as the image above. Exactly the same. How many years states have gone without ever changing their passwords to access such sensitive systems is unknown.
* I reached out to Steve Sandvoss, the executive director of the Illinois State Board of Elections. He said they did attempt to redact all user ID info, login IDs and passwords, but four of them got through. “They should’ve been redacted but they weren’t,” Sandvoss admitted.
But, Sandvoss said, all the login info and passwords are “obsolete” with the exception of the one for 2017. “It’s possible that it is active,” he said, but “the file is empty” because te people who run Cross Check in Kansas are required to immediately delete the information.
And even if it wasn’t empty, Sandvoss said, the file itself is encrypted so you’d need an encryption key to access it and Indivisible Chicago doesn’t have that. And the file can only be accessed remotely via a specific IP address. Without that, you can’t get in.
“At first glance, it looks bad,” Sandvoss admitted. But when you peel the layers back, “We don’t feel that the information they have poses a risk to voter data.”
* But there is an upside for Indivisible Chicago, which has been working to get Illinois out of Crosscheck for a while now. Sandvoss said Florida FOIA laws are “pretty liberal.” A lot of information can legally be requested in that state, which brings up a “legitimate security concern” about remaining in the program. Sandvoss said he thought the full board would take a hard look at that issue when they meet in November to decide whether the state will remain in the program.
…Adding… From Sandvoss…
Hi Rich,
Just an update; the FTP login ID and password contained in the January 19, 2017 e-mail have been changed, therefore the ones that were released are no longer valid.
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* Apparently, seeking two separate subsidies for its coal-fired plants isn’t enough. From the Sun-Times editorial board…
Now Dynegy, which owns eight coal-fired power plants in central and southern Illinois, wants the Illinois Pollution Control Board to scrap the limits on the rate of pollution each of its plants can emit. Dynegy, which also is reportedly seeking rate increases in the Legislature, proposes instead that existing annual caps apply to its plants as a group, which would allow it to give its dirtier plants more leeway to belch out soot and other pollutants that cause smog and acid rain.
The proposal comes as Dynegy faces a deadline that Ameren, which previously owned the plants, agreed to in 2006 to reduce air pollution.
In a classic example of the problems with revolving-door government, Dynegy has worked with Gov. Bruce Rauner’s director of the Illinois Environmental Protection Agency — a former lobbyist for a trade association that represents Dynegy — to draw up the plan. According to Illinois Attorney General Lisa Madigan’s office, the revised pollution cap would provide a financial incentive for Dynegy to actually increase pollution if it chose.
For a hearing on Thursday, Dynegy is on the agenda with a request for the Illinois Pollution Control Board to rush through the decision-making process. But there is no need to rush. This is a matter that demands full input and careful consideration. Illinois does not face any shortage of power generation capacity.
* Background…
Environmental experts who analyzed documents obtained under the FOIA request and publicly available emissions and generation data said that it appears Dynegy is comfortably able to meet both the current and proposed new limits with its current generation mix. But they suggest Dynegy might not be able to meet the existing average rate of emissions limit if Coffeen or other plants with scrubbers were to close.
“Coffeen has a big very effective scrubber that makes it the cleanest plant in their operations and probably one of the cleanest in the country, but it has all this extra cost” to run, said Brian Urbaszewski, director of environmental health programs at the Respiratory Health Association.
“Right now because of the way the rule is set up, every time they run a dirty plant to make money, they have to run the clean plant to make sure the rate evens out. If the rule were changed to allow [the annual tonnage] cap, they could just ditch Coffeen.”
“Just because Dynegy has decided to shut down some of its uneconomic coal plants, doesn’t give it a hall pass to not clean up its older coal plants,” added Howard Learner, executive director of the Environmental Law & Policy Center.
*** UPDATE *** Hmm…
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* IDES…
The Illinois Department of Employment Security (IDES) announced today that the unemployment rate remained unchanged at 5.0 percent in September and nonfarm payrolls decreased by -10,800 jobs over-the-month, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS) and released by IDES. August job growth was revised up to show a smaller decline (-2,600 jobs) than initially reported (-3,700 jobs).
September’s monthly payroll drop kept over-the-year job growth well below the national average. While Illinois job growth has had its ups and downs since the beginning of the year, the 3-month trend shows average declines of -4,200 jobs per month from July to September, while the six-month trend shows a -400 per month average job loss from April to September. Both the 3-month and the 6-month changes are worse than reported last month.
“The Illinois economy continues to sputter.” said IDES Director Jeff Mays. “Moving one step forward and one step backward, as we have done this past number of months, does little to build the positive jobs momentum that most other states have built during this recovery.”
“Illinois stands apart in terms of the assets and opportunities we have to offer business across industries,” said Illinois Department of Commerce Director Sean McCarthy. “We must continue to market our exceptional assets while implementing reforms that boost our economy and make us competitive on a national stage.”
In September, the two industry sectors with the largest gains in employment were: Financial Activities (+3,600) and Manufacturing (+1,100). The three industry sectors with the largest payroll declines were: Trade, Transportation, and Utilities (-4,200); Education and Health Services (-3,400); and Leisure and Hospitality (-3,300).
Over-the-year, nonfarm payroll employment increased by +3,700 jobs with the largest gains in these industry sectors in September: Financial Activities (+12,000); Education and Health Services (+9,600); and Professional and Business Services (+8,000). The industry sectors with the largest over-the-year declines include: Trade, Transportation and Utilities (-10,700); Government (-7,100); and Construction (-5,800). Illinois nonfarm payrolls were up +0.1 percent over-the-year in sharp contrast to the nation’s +1.2 percent over-the-year gain in September.
The state’s unemployment rate is +0.8 percentage points higher than the national unemployment rate reported for September 2017, which decreased to 4.2 percent. The Illinois unemployment rate is down -0.8 percentage points from a year ago when it was 5.8 percent. At 5.0 percent, the Illinois jobless rate is -0.7 percentage points lower than January 2017.
The number of unemployed workers dipped -0.4 percent from the prior month to 321,700, down -14.5 percent over the same month for the prior year. The labor force remained about unchanged over-the-month and declined by -1.3 percent in September over the prior year. The unemployment rate identifies those individuals who are out of work and are seeking employment. An individual who exhausts or is ineligible for benefits is still reflected in the unemployment rate if they actively seek work.
*** UPDATE 1 *** Some positive spin from DCEO Director Sean McCarthy…
“This administration is working hard to change the course of the decline in non-farm payrolls. While the numbers were down overall, we made gains in very important sectors including Financial Activities; Education and Health Services; and Professional and Business Services. This morning’s announcement of the launch of Discovery Partners Institute, coupled with our efforts to land Amazon HQ2, show our commitment to increasing opportunities that will attract and keep workers in Illinois.”
Um, Education and Health Services was down last month, although it was up for the year.
Either way, that’s the first time I’ve ever seen positive spin on an employment report from this administration.
*** UPDATE 2 *** Do you get the feeling that today’s supplemental statement from McCarthy (after all, he was already in the original press release) had something to do with not allowing this bad news to overshadow today’s big Discovery Partners Institute press conference? Here are his statements going back to April…
APRIL
“Our state has the potential to be the most competitive in the nation,” said Illinois Department of Commerce & Economic Opportunity Director Sean McCarthy. “To expand opportunities and good paying jobs, we need to make common sense reforms that will give businesses the confidence to grow and thrive in Illinois.”
MAY
“We continue to see sluggish growth in our economy due to the inability of the legislature to institute common-sense structural changes that would encourage investment in our state,” said Illinois Department of Commerce & Economic Opportunity Director Sean McCarthy. “If we create a business-friendly environment, we will see greater opportunities and more good paying jobs in every community.”
JUNE
“We hear from companies every week that are concerned by the current business climate in Illinois,” said Illinois Department of Commerce & Economic Opportunity Director Sean McCarthy. “We need to implement common sense reforms that would lead to booming job growth and expansion of opportunities across our state.”
JULY
“A competitive economy is crucial to creating jobs and opportunities for Illinoisans in every corner of the state,” said Illinois Department of Commerce Director Sean McCarthy. “We must institute true reforms that will help businesses expand and thrive here.”
AUGUST
“The modest gains in Illinois continue to lag behind the rest of the nation,” said Illinois Department of Commerce Director Sean McCarthy. “We need reforms to provide business owners relief and incentives to make our state not only competitive, but attractive to bring good jobs back to Illinois.”
SEPTEMBER
“Illinois is working tirelessly to highlight our strongest assets – our strategic location and dedicated workforce – to bring more opportunity, competition and good paying jobs to our state,” said Illinois Department of Commerce and Economic Opportunity Director Sean McCarthy. “We need to couple that with lasting reforms and incentives to attract businesses and quality jobs in Illinois.”
OCTOBER
“Illinois stands apart in terms of the assets and opportunities we have to offer business across industries,” said Illinois Department of Commerce Director Sean McCarthy. “We must continue to market our exceptional assets while implementing reforms that boost our economy and make us competitive on a national stage.”
*** UPDATE 3 *** Press release…
Daniel Biss released the following statement in response to the latest Illinois Department of Employment Security report stating that Illinois lost 10,800 jobs last month.
“Bruce Rauner doesn’t seem to understand that strong businesses rely on strong communities. When you decimate social services, perpetuate a broken tax system, and refuse to pass a budget, people suffer—and businesses do too. Building a state that works for business starts with building a state that works for the rest of us, not just the millionaires and billionaires.”
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* After having praised the governor in an earlier post today about the proposed Discovery Partners Institute on the city’s near South Side, I should probably return to the usual problems he has, particularly with Speaker Madigan…
Last week, Rauner said he planned to use proceeds from the sale of the Thompson Center to help finance the institute. Rauner has said unloading the 1.2 million-square-foot building would fetch $300 million, though the state would have to pay around $60 million off the top to buy out the leases of the current tenants.
Rauner also said that though he was seeking some public funding for the initial stages of the work, over time he expected the institute to be primarily funded through private dollars.
Steve Brown, spokesman for House Speaker Michael Madigan, said Tuesday that legislative leaders were in talks about the institute but denied there had been any such accord, “in part because there was sort of a lack of detail about exactly how the state funds might be utilized.” Brown also said the Thompson Center profits are incorporated into this year’s state budget, comprising a large chunk of new revenues.
“The money has been accounted for in the current state budget, and there is no agreement, verbal or otherwise, to support state funding for this institute,” Brown said.
That pool of money isn’t exactly earmarked for the state budget either. The bill allowing the sale of the Thompson Center has been hung up in political wrangling and has yet to be sent to the governor’s desk.
Oy.
* More…
“There’s no way to say that from Madigan’s point of view whether we’re on board or not on board because we don’t know what we’re getting on board for,” Brown said of the potential for the state to have to pitch in for the center.
*** UPDATE *** From Steve Brown in comments…
When called by the Tribune, I was told the governor said he had a verbal agreement from the legislative leaders to shift the proceeds from the JRTC sale to this project. I advised the reporter the JRTC funds were committed to the budget and there was no agreement by the Speaker in no small part because there were few details provided to the leaders.
Tribbies robbed readers of these facts.
Seems all hands need more details before there can be an agreement.
[ *** End Of Update *** ]
* And there’s this…
State Sen. Chapin Rose, R-Mahomet, said he had heard about the project last week and on Friday called Rauner, who told him that components of the project will help downstate cities such as Champaign-Urbana, Peoria and Rockford.
But he said he still hasn’t heard many details.
“I’m going to reserve judgment until I see what it is,” Rose said.
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