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*** UPDATED x3 - IEA contradicts Cross - Quinn contradicts Cross *** Afternoon videos: Cross says governor wants to trade CME bill for borrowing plan, predicts pension reform vote in November

Thursday, Oct 27, 2011 - Posted by Rich Miller

* House Republican Leader Tom Cross claimed today that Gov. Pat Quinn offered to support the CME Group tax cut proposal if the General Assembly agreed to borrow $4.5 billion over 7 years to pay off old bills. Cross said he didn’t favor the borrowing idea. Here’s part 1 of his press conference…

*** UPDATE 1 *** A spokesperson for Gov. Quinn denied that her boss specifically offered to straight up trade his support for the CME tax cut in exchange for a borrowing plan.

“Republicans made it very clear that they wouldn’t support the CME proposal as it is without a larger package of tax cuts,” the spokesperson said.

“In response to that, the governor is open to negotiating a larger package for jobs. There were a lot of things discussed in that context.”

The spokesperson said the governor is reviewing the CME proposal, which could cost upwards of $100 million.

“He’s looking at options to mitigate the loss in revenue, like closing corporate tax loopholes,” she said, saying the proposal would result in a “pretty hefty loss” for the state budget.

[ *** End Of Update *** ]

* Part 2 included more discussion about the CME bill. Cross claimed that the governor “wasn’t going to support CME” without borrowing, and said he mentioned some off-shore tax provisions as well. Cross also claimed that the governor “didn’t seem all that excited” about a pension reform bill Cross wants to bring to a vote in the second week of veto session, saying Quinn had some constitutional questions about the proposal.

Cross also said his “theory” is that the governor targeted Downstate facilities for closure had a lot to do with Quinn’s push for a borrowing plan for old bills. Watch…

* Senate President John Cullerton told reporters he’ll meet with Gov. Quinn next week to talk about gaming expansion. Cullerton said that means, as of now, the issue is on hold.

Cullerton also disagreed with characterizations made by Senate GOP Leader Christine Radogno and Leader Cross that Gov. Quinn signaled opposition to the CME Group tax cut bill. Cullerton claimed the governor said he’d look at the proposal. Watch…

*

* Cullerton’s Tenaska bill failed in the Senate today and was placed on Postponed Consideration. His closing remarks…


* Rep. La Shawn Ford asked for a moment of silence today for the Occupy Chicago protesters. Listen…


*** UPDATE 2 *** The governor’s plan to pay Regional Superintendent of Schools salaries out of the personal property replacement tax (which goes to local governments) fell way short today in the House. The bill received 59 votes. It needed 71 to pass. Here’s audio of the floor debate. Rep. Roger Eddy goes off on Quinn at about the 12-minute mark…


* More…

* Cross: Deal made for pension bill: Illinois House Minority Leader Tom Cross, R-Oswego, said he will be ready to call a bill to set up a three-tiered pension system for state workers during the second week of the legislature’s veto session, which starts Nov. 8… Cross said the Civic Committee of the Commercial Club of Chicago, a group of the city’s top CEOs, has brokered a deal in which House Republicans would provide 30 votes for the pension bill, Senate Bill 512, and House Democrats would provide another 30. Sixty votes are needed for legislation to pass the House… The bill would offer current teachers, university employees and state workers three pension options: Stay in the current system but pay significantly more, go into a second tier for workers hired after Jan. 1 that has reduced benefits or choose a 401(k)-style defined contribution plan.

*** UPDATE 3 *** IEA: Statehouse sources say today’s report that a deal’s been set to pass pension-cutting SB512 was erroneous. Still not enough votes.

* VIDEO: Treasurer Rutherford Opens Vault for Public Tours

* VIDEO: IEA Legislative update - October, 2011

  35 Comments      


AARP explodes in anger over utility victory

Thursday, Oct 27, 2011 - Posted by Rich Miller

* After yesterday’s votes to override the governor’s veto of the “Smart Grid” bill and pass the companion legislation, AARP Illinois issued the angriest press release I’ve ever seen from that group…

“The General Assembly just sent a clear message to their constituents: Corporate interests and campaign cash trump the needs of Illinois consumers.

“Today, lawmakers voted to override the Governor’s veto of Senate Bill 1652 – guaranteeing higher electric rates for consumers and higher profits for ComEd and Ameren.

“At a time when consumers are struggling to make ends meet, with prices on the rise for everything from gas to groceries, taxes increasing, and home values declining, it is appalling that Illinois lawmakers would chose to further burden consumers with a law that amounts to nothing more than corporate greed.

“Under the guise of improved infrastructure, ComEd and Ameren successfully convinced the General Assembly to gut Illinois’ utility ratemaking process – a process that exists to balance the interests of consumers with that of the utility companies. This veto override has effectively silenced the voice of the consumer and tied the hands of the Illinois Commerce Commission – all while guaranteeing higher profits for two of the state’s largest monopolies.”

* Fine print…

ComEd has said the bill will raise average household electric bills by about $3 per month to finance installation of “smart meters” throughout Northern Illinois and make $1.3 billion in improvements to traditional grid equipment.

But the bill’s actual cost to ratepayers may well be higher because the guaranteed return on equity ComEd will reap rises with Treasury bond yields, which currently are at historic lows.

* Tidbit…

Forty-four states already have some kind of smart grid system in place.

* The governor is in a pickle here…

State legislators essentially have boxed Quinn into a corner. After the governor vetoed the original smart grid bill, a so-called trailer bill was introduced this week that called for ComEd to make concessions. By passing that bill, legislators knew that if the governor vetoed it or signed it with suggested changes, the legislature could ignore his advice or nix the trailer bill altogether, leaving him again with the original bill, which is now veto-proof.

* The votes were close in the Senate, but the veto override and the trailer bill flew through the House…

The House voted 74-42 to override, with no debate.

House override motion and vote..

Thanks to BlueRoomStream.com for the video.

* More criticism…

Sen. Kyle McCarter, R-Lebanon, rejected the idea that this is a jobs bill. He said it adds a new burden in a state that already hits businesses with high taxes, fees and workers’ compensation costs. “One of the last good things we’ve got going in this state for businesses is affordable power,” he said.

* Not everybody was upset, of course. Earlier this week, several mayors penned an op-ed opposing the ComEd “Smart Grid” bill…

Our communities, working through the Northwest Municipal Conference, have proposed legislative recommendations to address ComEd’s communication and transparency issues. These recommendations would help ComEd better partner with our communities during storm and non-storm related outages and must be adopted as a condition of any legislation to upgrade the electric grid.

Therefore, we as mayors have no option but to urge the members of the General Assembly to uphold the Governor’s veto of Senate Bill 1652 unless the bill is amended, via additional legislation, to directly address these shortfalls by including the language proposed by local governments. Until ComEd is held accountable for providing reliable power and effective communications on good days and bad, they don’t deserve the automatic rate increases and guaranteed profits in Senate Bill 1652. Unless this critical amendment is adopted, legislators should scrap Senate Bill 1652 and rewrite the bill so that smart grid technological advances don’t come at the expense of consumer safety and well-being.

* But things have a way of changing when a big company is determined to pass a bill…

Now, after a series of meetings, those suburbs say they’ve struck a deal with ComEd to develop enforceable protocols to address storm outages in the entire territory. The details will be filed with the Illinois Commerce Commission within 45 days if the smart grid legislation becomes law, according to ComEd.

The Tribune recently reported that while a law exists to reimburse consumers affected by extreme outages, the utility has never paid under the law.

Separately, ComEd previously announced that it has established a Storm Response Process Improvement Task Force to develop and implement improvements in its storm restoration process and reliability performance.

The announcement is here.

* And one legislator who voted against the utilities was upbeat…

And even critics, like Senator Dave Syverson, who voted against the bill twice, see a positive side to the upgrade.

“Its going to be a better system a more modern system to eliminate many of the outages and under the new system ComEd will know the power outages occur rather than someone having to call them and let them know electricity is out” says Syverson.

* Roundup…

* Legislators override Quinn’s veto on smart-grid bill

* Chuck Sweeny: Electric rates going up, thanks to Illinois Legislature

* Illinois Senate overrides Gov. Quinn’s veto of ComEd rate-hike bill

* Legislators Overturn Quinn’s “Smart Grid” Veto

  76 Comments      


Morning videos

Thursday, Oct 27, 2011 - Posted by Rich Miller

* AFSCME Council 31 President Henry Bayer compares House Speaker Michael Madigan to Wisconsin’s Republican Governor Scott Walker…

* There was a pretty big union rally at the Statehouse yesterday. The IEA has a brief video…

* The Illinois College Republicans have a new video…

The Illinois College Republicans are launching a new grassroots initiative this week in response to OWS. The initiative is called “Liberate Main Street”. New CR state president Mick Paskiewicz told Illinois Review, “We’re kicking it off by releasing this video today, and from here we’re encouraging our chapters to host Liberate Main St. events on their campuses to recruit college students.”

Watch…

* From the Daily Herald…

Supporters of Joe Walsh’s campaign for the 14th District GOP primary have unleashed a brutal Facebook page that cuts at just about everything opponent (and current 14th District Congressman) Randy Hultgren stands for. […]

Writing as if it’s Hultgren himself who’s posting on the page, it mocks an “allegiance” to “GOP establishment masters” Peter Roskam and John Boehner, Hultgren’s recent hire of campaign “hit man” Joe Calomino, and his promise not to mudsling.

“Here’s screen shot number 14 of my personal attack (that I promised I wouldn’t do) of my opponent Joe Walsh on my Facebook page….that I recently deleted and some pesky Tea Partier took screen shots of. DING DANG IT!” is one recent post.

The Facebook page is here. And here’s a video from that page…

  15 Comments      


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