Remember the unbelievable news that former Lt. Gov. Sheila Simon was reportedly considering a bid for Congress, despite her ties to failed former Governor Pat Quinn?
It turns out, after testing the waters for a few weeks, Simon is not anxious to jump into the race. Today, Roll Call reported that she has rebuffed Democratic recruitment efforts, saying she was “not actively pursuing it.” Simon even went a step further, comparing campaigning to childbirth and that “it’s not something to jump back into right away.”
Simon certainly does not sound like somebody who wants to run. Perhaps Sheila Simon has finally realized that being besties with politically-toxic Pat Quinn will make running for office again a bigger challenge than she ever realized. Then again, Simon must know that in Southern Illinois, being recruited by Nancy Pelosi is just as toxic as being Pat Quinn’s protégé.
NRCC Comment: “Southern Illinois families have had enough of Sheila Simon and Pat Quinn’s failed policies. Democrats will need to step up their recruiting because 12th district voters know better than to send a Pat Quinn protégé to Washington.” – NRCC Spokesman Zach Hunter
That’s really over the top. Apparently, some DC types can’t resist taking shots at people who aren’t even candidates and probably wouldn’t have ever been a candidate.
Tuesday, Feb 3, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
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West suburban lawmakers announced a package of bills Monday aimed at punishing the College of DuPage for giving President Robert Breuder a lucrative severance package and at preventing other taxing bodies from approving similar buyouts. […]
The legislative moves come nearly a week after College of DuPage trustees took an unusual revote to approve a $763,000 severance deal for Breuder, who will retire in March 2016 from the publicly funded community college in Glen Ellyn. The buyout agreement also promises to name the school’s homeland security education center after him.
More than 400 people — including several state lawmakers from the area — attended the revote meeting to denounce the deal, which some trustees now say was done to end Breuder’s current contract early. Breuder, whose total compensation last year was about $484,000, was under contract until 2019, according to an agreement that had been secretly changed by the trustees over the years.
On the severance issue, trustees also were under fire for possibly violating the state’s Open Meetings Act, which requires a public recital of the matter being considered, during an earlier vote.
* The House Republicans summed up the legislative proposals, most of which are still being drafted by LRB…
Representative Batinick is seeking legislation that will provide a recall mechanism for all non-home rule units of government. The legislation includes community college boards of trustees.
Representative Breen is seeking legislation that would cap the amount of allowable severance agreements passed by community college trustees. Breen is seeking to cap such agreements to the equivalent of one year’s salary plus benefits.
Representative Breen is [also] seeking legislation that would bar community colleges from expending state dollars from any state fund, property tax funds or student tuition dollars on severance agreements that exceed the equivalent of one year’s salary plus benefits.
A redraft of HB3289 (Ives, 98th) has been submitted to LRB with additional language pertaining to College of DuPage. Representative Ives has added a 14-day public posting requirement for contracts with salary in excess of $150,000.
HR 55 (Ives) - Directs the Auditor General to conduct a performance audit of the state moneys provided to College of DuPage for FY11 through FY14.
HB 303 - Representative McDermed has introduced legislation that includes severance and settlement agreements that use public funds in the Freedom of Information Act. The legislation is essentially what was introduced in response to the Metra severance scandal in 2013.
Representative Sandack is seeking legislation that will reduce the amount of state money available to community college boards should they take action similar to College of DuPage. If a community college uses state moneys for severance agreements, the community college will have the same amount deducted from the next disbursement by the Comptroller immediately following board action.
Representative Wehrli is seeking legislation to shorten all community college trustee terms to four years from six years. The language will provide that, in order for staggered terms to survive, trustees elected in 2017 will serve two year terms and then trustees elected in 2019 will henceforth serve four year terms. Trustees elected in 2015 will serve until 2021 but then trustees elected in 2021 will henceforth serve four year terms.
* The Question: Which of these proposals do you like? Which ones do you not like? Explain, please.
* Sen. Andy Manar is having a press conference today to unveil his revised school funding reform bill. Here’s the media handout…
School Funding Reform Act of 2015
The School Funding Reform Act of 2015 is a reintroduced version of last year’s Senate Bill 16, a proposal to replace Illinois’ dated General State Aid (GSA) formula with a new, need-based system.
Background
Illinois has the second most regressive public school funding system in the country: Districts with significant low-income populations in Illinois get less combined funding from state, local and federal sources than districts with more affluent students. Last year’s proposal passed the Senate and was designed to alleviate this disparity and increase transparency in the system.
The School Funding Reform Act is based on the findings of the bipartisan Education Funding Advisory Committee that was created to study this problem and recommend changes to a funding system that hadn’t been updated or reviewed since 1997.
SB 16 would have:
• Created a single, need-based funding formula (Primary State Aid); replacing GSA and an outdated grant-based system
• Prioritized state resources to help school districts and students who most need them
• Increased transparency by requiring individual schools to account for how they spend state funds, replacing the old district-by-district reports
• Included Chicago in the new, need-based formula—eliminating the Chicago Public Schools block grant
Updates
School Funding Reform Act of 2015 (SB 1) has evolved based on discussions with more than 400 local superintendents and statewide town halls involving parents and educators.
The new bill includes the following improvements to SB 16:
Regionalization: Considers regional differences when determining state aid for districts. The new legislation uses the National Center for Education Statistics’ Comparable Wage Index to measure variation in salaries and cost of living from district to district.
Low-income calculation: Calculates the low-income population of a district based on the number of students receiving services from the Illinois Department of Human Services (generally students below 200 percent of the poverty line). This replaces the number used under SB 16, which was based on the number of students receiving free and reduced lunch (generally students below 185 percent of the poverty line).
Adequacy study: Expedites a study that will analyze the adequate amount of funding for education and develop a base level funding for adequate student growth. The study will consider how student characteristics, tax rates and preschool expansion should be factored into the funding formula.
Adequacy grants: Provides additional funding for districts that are collecting taxes at or above state averages but are spending below a calculated adequacy target— the Education Funding Advisory Board’s adequacy recommendation weighted for each district. This would protect underfunded districts from losses under SB1.
ELL reporting: Requires school districts receiving state funding for English Language Learner (ELL) programs to report their revenues and costs related to bilingual education.
Special education flexibility: Ensures that districts with above average special education needs will be funded based on their number of special education students, rather than the statewide rate of 13.8 percent.
***Projections from the Illinois State Board of Education will be distributed when they become available. ***
Tuesday, Feb 3, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Cooperatives can be formed to support producers such as farmers, purchasers such as independent business owners, and consumers such as electric coops and credit unions. Their primary purpose is to meet members’ needs through affordable goods and services of high quality. Cooperatives such as credit unions may look like other businesses in their operations and, like other businesses, can range in size. However, the cooperative structure is distinctively different regardless of size. As not-for-profit financial cooperatives, credit unions serve individuals with a common goal or interest. They are owned and democratically controlled by the people who use their services. Their board of directors consists of unpaid volunteers, elected by and from the membership. Members are owners who pool funds to help other members. After expenses and reserve requirements are met, net revenue is returned to members via lower loan and higher savings rates, lower costs and fees for services. It is the structure of credit unions, not their size or range of services that is the reason for their tax exempt status - and the reason why almost three million Illinois residents are now among 100 million Americans who count on their local credit union every day to reach their financial goals.
* Council 31’s spokesman Anders Lindall responds to Gov. Bruce Rauner’s anti-union memo to lawmakers…
It’s bizarre and outrageous for Bruce Rauner to suggest that public employees aren’t ‘working families’. He’s wrong to vilify workers who serve the public, earn middle-class wages and have a right to a voice through their union.
And it’s especially offensive for Rauner to criticize prison and highway workers who risk their lives to do some of our state’s most dangerous work.
His false attacks seem designed to distract from real problems, like tax loopholes for big corporations and giveaways to wealthy individuals who funded Rauner’s political campaign.
The governor spoke often about closing corporate tax loopholes during the campaign. Not much since, however.
I’m told the governor’s State of the State address will focus on solutions and not on the state’s problems. It’s about freaking time.
* A whole bunch of people sent me a link to this WaPo story about Congressman Aaron Schock’s newly renovated DC office…
Bright red walls. A gold-colored wall sconce with black candles. A Federal-style bull’s-eye mirror with an eagle perched on top. And this is just the Illinois Republican’s outer office.
“It’s actually based off of the red room in ‘Downton Abbey,’ ” said the woman behind the front desk, comparing it to the luxurious set piece at the heart of the British period drama. […]
She introduced herself as Annie Brahler, the interior decorator whose company is called Euro Trash. She guided me to Schock’s private office, revealing another dramatic red room. This one with a drippy crystal chandelier, a table propped up by two eagles, a bust of Abraham Lincoln and massive arrangements of pheasant feathers.
Then, my phone rang.
It was Schock’s communications director, Benjamin Cole.
“Are you taking pictures of the office?” he asked. “Who told you you could do that? . . . Okay, stay where you are. You’ve created a bit of a crisis in the office.”
What? They thought nobody would find out? It’s a public office, for crying out loud. I mean, yeah, some of it was donated by the designer and Schock paid for the rest, but it’s still in the Rayburn Building.
House rules prohibit Members of Congress from accepting most gifts valued at $50 or more — including “gifts of services, training, transportation, lodging, and meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.”
Stephen Spaulding, policy counsel for the non-partisan Common Cause, told ThinkProgress that this donation of services from a professional decorator could well violate both the spirit and letter of the House gift rules: “It certainly raises plenty of questions that I think [Schock] needs to answer.”
Attorney General Lisa Madigan today announced a $1.375 billion settlement with Standard & Poor’s to resolve allegations that the credit ratings agency compromised its independence and objectivity in assigning its highest ratings to risky mortgage-backed securities in the lead up to the 2008 economic collapse.
Illinois will receive $52.5 million under the joint state-federal settlement forged by the U.S. Department of Justice (DOJ), Madigan and 19 other attorneys general and S&P, a subsidiary of McGraw-Hill Companies, that is one of the nation’s largest credit ratings agencies responsible for independently rating risk on behalf of clients and investors.
In 2012, Madigan was one of the first attorneys general in the country to file a lawsuit against S&P for its misconduct that contributed to the 2008 collapse. Madigan’s lawsuit alleged S&P compromised its independence as a ratings agency by doling out high ratings to unworthy, risky investments to increase its profits, while its misrepresentations spurred investors, including Illinois’ pension funds, to purchase securities that were far riskier than their ratings indicated.
“Standard & Poor’s deliberately exploited its trusted reputation as an independent analyst to maximize profits and gain market share, and in the process, S&P became a key enabler of the economic meltdown,” Attorney General Madigan said. “Were it not for S&P abandoning its core principles, these securities, made up of unsustainable mortgages destined for default, could never and would never have been purchased by many investors.”
According to the settlement, S&P consistently made misrepresentations about the processes it used to assign credit ratings to mortgage-backed securities. While publicly promising independent, objective analyses, the company privately relaxed its ratings criteria and manipulated subprime mortgage data to ensure its clients’ mortgage-backed securities would achieve higher ratings than the actual quality of the assets supported. These tactics were part of an overarching corporate strategy intended to retain clients and increase market share, according to the settlement agreement.
Mortgage-backed securities are financial products made up of a pool of mortgages that are bundled together and sold as a security. The assets are backed by residential mortgages, including subprime mortgages. The performance of these investment products have significant, real-world implications for Illinois institutional investors, such as pension funds and 401(k) managers that make decisions about whether, and which, of these securities are appropriate investments. It was the misrepresentation of the true risk of these mortgage securities that helped the housing market skyrocket and ultimately led to its collapse in 2008.
Under today’s settlement, S&P will pay a $1.375 billion penalty, which exceeds the company’s profits earned for rating mortgage-backed securities from 2002-2007. The majority of the relief awarded to Illinois will be distributed to the state’s pension systems. Further, S&P has agreed to a statement of facts acknowledging conduct related to its analysis of structured finance securities. S&P also agreed to comply with all applicable state laws and will cooperate with requests for information from states that may express concern over a possible violation of state law. The states have also retained authority to enforce their laws – the same laws used to bring these cases – if S&P engages in similar conduct in the future.
* The Tribune reports that far more people have signed up for Medicaid than expected and costs per person are skyrocketing…
Starting in 2017, Illinois and other states that also expanded their programs are required to start paying a small portion of the bill, rising to no more than 10 percent of the total tab. State health officials estimated in 2012 that Illinois’ portion of the expansion would cost $573 million from 2017 through 2020.
But far more people signed up in 2014, the expansion’s first year, than the state expected. Based on multiple interviews and a Tribune analysis of government data, Illinois will pay at least $907 million from 2017 through 2020 because of those new members. The tab could surge even higher, though.
A document sent by Quinn’s office to the federal government over the summer significantly raised the per-person estimated cost, bumping the state’s total outlay to $2 billion, using 2014 enrollment numbers, more than three times the original estimate. […]
Original projections anticipated that 199,000 residents would sign up in 2014, potentially rising to no more than 342,000. State officials estimated a monthly, per person cost of $454, and revised that number upward to $882 in the document sent to in June to federal officials.
But through December, 540,877 joined Medicaid’s ranks. State officials said thousands more likely signed up through January.
* The Tribune editorial board wants the state to impose fees…
Gov. Mike Pence of Indiana in recent days announced an expansion of Medicaid, with a twist. The Republican governor secured the approval of the Obama administration to require that Medicaid enrollees chip in a small contribution — up to around $26 a month for a single adult — for their health care premiums. If people fail to make the payments, they could be denied coverage for six months.
The deal also discourages unnecessary trips to the emergency room — an expensive item in every Medicaid budget — by imposing copays of up to $25 for patients who make unnecessary trips.
Pence’s plan will provide health care to as many as 350,000 people, and set a new model for responsible use of that health care.
* From Jason Barclay, General Counsel, Office of the Governor:
Governor Rauner directed our legal team to conduct a comprehensive review of the evaluation and selection process that the Quinn administration used to recommend applicants for licensure in the State’s Medical Cannabis Pilot Program.
His request was threefold. First, determine whether the process used by the Quinn administration followed the law. Second, share our findings with the Attorney General and determine what, if any, corrective actions need to be taken for any failures to fully comply with the law. Finally, recommend a plan of action that corrects any deficiencies and fully adheres to the spirit and letter of the law.
Our recently completed legal review identified four potential problem areas:
1) The review teams imposed certain arbitrary scoring “cut-offs” that were not expressly contemplated or provided by law that effectively eliminated certain applicants from consideration;
2) The agencies conducted a character and fitness review of the applicants after the blind scoring process had been completed;
3) As part of the character and fitness review, several applicants were disqualified without clear procedures and standards for disqualification and without offering the prospective applicants an opportunity to respond to the information that was relied upon to make the disqualification decisions; and
4) Despite seemingly contradictory language in the rules promulgated by the Illinois Department of Agriculture, the prior administration decided to award no more than one cultivation center license to applicants who were the high point scorers in more than one district.
We concluded that these problem areas create a risk of substantial and costly litigation to the State. We shared our findings and this conclusion with the Attorney General. Her staff conducted a prompt review and for that we thank them.
As a result of our consultation with the Attorney General, we have further concluded that there is a significant likelihood that the Quinn Administration’s decisions will not be upheld in court. We have also relied upon the Attorney General’s legal guidance and must now take all necessary corrective action to make sure that these licenses and permits are properly issued in compliance with the law.
As a result of these conclusions, we are therefore recommending the following actions:
1) Licenses and permits will be issued to the highest scorers in each district where the top scorer was not disqualified;
2) Cultivation center applicants that were high scorers in more than one district will be awarded permits up to the three permit limit that was expressly provided by 8 Illinois Administrative Code (the “IL Department of Agriculture Rules”) Section 1000.40(d);
3) The artificial and subjective scoring “cut-offs” that were imposed by the agencies will be eliminated and licenses and permits will be awarded to the high scorers in those districts regardless of their final point total; and
4) Any applicant that was recommended for disqualification will be fully informed of the basis for that decision, given an opportunity to respond in writing and/or in-person to the respective licensing agency’s director and general counsel to contest the recommendation, and a final written character and fitness decision will be made consistent with the relevant pre-established formal standards established by the IL Department of Agriculture Rules Section 1000.110(j) or 68 Illinois Administrative Code (the “IL Department of Financial and Professional Regulation Rules”) Section 1290.70(e) – (f).
These actions may result in some additional minimal delay in a limited number of districts and for that we apologize to the patient community. The Governor has requested that this process must be deliberate, fair, and fully comply with the law. In order to accomplish those important objectives, these additional steps are essential to correct the deficiencies of the previous administration’s selection process. Only then can the public have the fullest confidence that the law was followed and these licenses and permits were awarded for the right reasons.
* Gov. Bruce Rauner just sent this memo to state legislators…
TO: Members of the General Assembly
FROM: Bruce Rauner, Governor
DATE: February 2, 2015
SUBJECT: The Attached Slides
Good Afternoon:
As you know, I have been delivering a number of speeches detailing many of the structural challenges confronting Illinois. Before our joint session on Wednesday, I wanted to share two additional slides with you. I hope you are able to review them soon.
The first slide is a summary of the federal rules regarding U.S. government employees. The rules were codified in 1978 under President Jimmy Carter and a Democratic Congress. The pension system changes were enacted under President Ronald Reagan in conjunction with a bipartisan legislature. We too can achieve common-sense bipartisan reforms to our employment rules that are fair to both state workers and taxpayers.
The second slide shows a few examples of spending levels inside Illinois government. These levels are unsustainable and unfair to working families, small businesses and other taxpayers in Illinois. They limit our ability to grow our economy and to fund much needed social services. We do not intend to propose government salary reductions, but it is critical that we make structural reforms that prevent any future imbalances and unfair practices. It is also abundantly clear that we must make major reforms to eliminate conflicts of interest and to achieve dramatic economic growth in order to properly fund the operations of our state government.
I look forward to seeing you on Wednesday and working with you in the weeks and months ahead.
Sincerely,
Bruce
Emphasis added by request.
* From Slide One…
Federal Government Employee Structure
(Federal Service Labor –Management Relations Statute 1978)
• Employees have the right to organize and collectively bargain over work conditions including work hours, grievance procedures, work assignments
• Employees are prohibited from strikes, work stoppages, slowdowns, picketing, etc.
• Employees cannot bargain over wages, benefits, pensions, personnel decisions and managerial rights (prohibits bargaining on mission, budget, organization, number of employees or internal security)
• Government can not force its employees to participate in or fund labor union activities that they do not support
• No automatic mandatory arbitration provision or injunctions in aid of arbitration for collective bargaining impasse
• Prior to 1983, pension was defined benefit plan with no Social Security. Since then, the retirement system was reformed to become a hybrid system including a defined benefit annuity, Social Security and a 401(k)
Sounds like he wants the same for AFSCME and the teachers.
Whew.
* Slide Two…
I think most of those barbers work in prisons. They probably deserve the pay bump.
Each of us advances the cause of liberty in our own special way.
For some of our amazing team members at the Illinois Policy Institute and Illinois Policy Action, that means taking on a new challenge to improve government from the inside out.
It is with great pride that I share the news that the following individuals will be putting their talent to work on behalf of the people of Illinois with Gov. Bruce Rauner’s administration.
Brian Costin, who served as our director of government reform, will begin as policy director for Lt. Gov. Evelyn Sanguinetti.
Donovan Griffith, who served as our manager of government affairs, will serve as legislative liaison at the Illinois Environmental Protection Agency.
Jane McEnaney, who served as our manager of government affairs, will transition to chief legislative liaison at the Illinois Department of Revenue.
We are honored that the new administration is looking to our team for talent.
We wish Brian, Jane and Donovan the best of success as they continue their work to write the next chapter of Illinois’ comeback story.
Republican Gov. Bruce Rauner on Friday replaced the longtime Illinois Gaming Board chairman with a political supporter who ran an independent expenditure committee that backed him in the November election. […]
[Springfield resident Don Tracy] said he would not lobby for or against the expansion of gambling but indicated he would be vocal in providing input on legislation.
It might be hard to be any more vocal than Aaron Jaffe, a former judge and Democratic legislator who was appointed chairman by then-Gov. Rod Blagojevich following a tumultuous period of the Gaming Board. Jaffe oversaw the final issuance of the highly disputed 10th riverboat license that had become dormant, as well as the rollout of video gambling throughout Illinois.
Jaffe was critical of repeated proposals to expand gambling into Chicago and other areas of the state, raising concerns that standards were too loose. Former Gov. Pat Quinn, who had reappointed Jaffe previously and sought to extend his term, vetoed proposed expansions.
Not mentioned is that Jaffe’s Gaming Board completely botched the video gaming rollout, which delayed implementation for more than a year. Also, Jaffe always seemed to fuss that gaming expansion would hurt the existing casinos. That really shouldn’t have been his concern. And his attempt to regulate which employees taverns and restaurants could hire and which truck drivers could deliver beer and food to those establishments was just ridiculous.
He did some good things at the beginning, and his regulation of the casinos should be applauded, but toward the end he became kinda weird.
* The Illinois Review has this note about Chairman Tracy…
During the 2010 election, Tracy said on the campaign trail that he was opposed to the expansion of gambling. That year, the socially-conservative Family-Pac endorsed Don Tracy in the LG race.
Rauner has also said he doesn’t like gaming, but says Chicago should have a casino because Indiana is luring so many folks away. I assume they are on the same page here (both also favor “right to work”), but one never knows.
* I’m a little surprised that Tracy’s $100,000 campaign expenditure on behalf of Rauner didn’t prompt anyone to look back at Rauner’s repeated pledge to keep cronies out of government…
Bruce Rauner on what’s wrong with the Illinois Department of Agriculture: It’s “full of cronyism.”
Bruce Rauner on the difference between the Blagojevich and Quinn administrations (from the Trib): “‘The only difference between Pat and Rod is the hair,’ Rauner declared, saying both administrations contained ‘corruption’ and ‘cronyism.’”
Bruce Rauner on favoritism at the Illinois Department of Transportation: “You can be fairly certain that there would have been many veterans that could have taken those jobs instead of the cronies who were hired.”
The Democratic Gaming Board appointee, Tom Dunn, was instrumental in bringing riverboats to his Joliet-area district back when he was a Senator. Whether he’ll now try to protect those boats by opposing a Chicago casino is unknown.
* The ads were boring. Overall, too little humor, too much social propaganda, too many tear-jerkers. Considering the Ray Rice controversy, I certainly understand why violence was nowhere to be seen and the sexism was toned way down. But you can still be funny without that stuff.
* I could hardly watch the halftime show. Then again, I always have trouble watching that halftime show. I didn’t see Janet Jackson’s infamous “wardrobe malfunction” back in the day because I was in another room at the time.
* Thankfully, the game itself was incredibly entertaining, right up until the final seconds. Wow! And while I agree with the various talking heads that a handoff would’ve been the right call for Seattle on the one-yard line, the play the coach did send in probably wasn’t the worst Super Bowl call ever - although I’m hard-pressed to think of a bigger end-of-game disaster.
* Almost every year that a governor has given a State of the State address before giving the budget address, we get goofy stories like this…
Gov. Bruce Rauner is set to deliver his first State of the State Address on Wednesday, and most area lawmakers are hoping he addresses the state’s fiscal problems.
The budget address will happen later this month, as Rep. Moffitt rightly points out…
State Rep. Don Moffitt, R-Gilson, said he too hopes to see a “roadmap” for the state’s fiscal future, though Wednesday’s speech might not be the platform to do it.
“I hope he will outline his roadmap,” Moffitt said. “First, where he wants to get to. Second, how he wants to get there. Although the ‘how to get there’ might be in the budget address on Feb. 18.”
The governor will likely talk about some general principles in the SOTS address, but specifics will most likely have to wait until the 18th.
* The Tribune took a look Sunday at something we discussed last week, the cash-strapped state child care program…
The Department of Human Services announced recently that it’s short nearly $300 million needed to pay for the day care program through June — the end of the budget year — and payments will be late starting this month.
Funding hiccups are nothing new to providers, who have become skilled at raising alarms to try to force action in Springfield. But this time is different, some say, because of the uncertainty about the new governor — a Republican who has declared that solving the state’s money problems will require “sacrifice” from all Illinoisans.
“Every year we go through something, but we’re able to rally and say this is important, and then the funding comes,” said Grace Araya, director of Eyes on the Future Child Development Center in Rogers Park. “We don’t really know where we stand. We don’t know which way this will go.”
* The governor was asked about the shortfall the other day…
When pressed by a reporter to explain what he’ll do to fix it, he responded: “Working closely, working closely with the General Assembly, we are going to make sure that we do the reallocations necessary to make sure the essential services of government stay open and functioning.”
* Charlie Wheeler looks at the budget problems facing the state and concludes…
The math is unforgiving — all the rest of state government could be zero-funded next year, and Rauner still would have to cut from education and/or health care/human services. That obviously won’t happen, so be prepared for the deepest cuts — ever — in the public’s most-cherished programs in the proposal.
(W)riting with Laffer for the Texas Public Policy Foundation in 2011, Arduin proposed to abolish that state’s defined-benefit pension, even though the state’s retirement systems were better than 90 percent funded. Such systems effectively create “a government entitlement program,” she wrote. “Entitlement programs violate the criteria of sound budgeting principles.” […]
Or, back to the first foundation piece, this little quip: “The longer tenure for public sector employees is related to the compensation package they receive. The government compensation package is designed to reward risk-averse behavior that keeps employees in the government sector and discourages people from transitioning between the public and private sectors.”
One more: As California finance director, Arduin persuaded Schwarzenegger to propose a spending cap. After budget cuts, the cap would limit spending hikes to “a rate equaling population growth plus the increase in per capita income,” as reported by the Sacramento Bee. […]
Reviewing her track record in Florida, the Bee also reported, “Bush and Arduin whacked health insurance for low-income Florida children and health services for adults, cut funding for higher education . . . and enacted an austerity budget for K-12 schools that, despite nominal increases, won’t cover schools’ higher costs.”
* You can certainly see Arduin’s hand in shapingsome of the governor’s budgetary “facts,” which are examined by the AP…
Rauner said Medicaid spending is “booming” and “unsustainable.” He showed a slide comparing a recent three-year rise in Medicaid spending to relatively flat Illinois population growth. […]
First, Washington paid for most of that increase. To improve access for the poor, the nation’s new health law expanded Medicaid eligibility and increased rates for primary care doctors treating low-income patients. The federal government paid the entire cost of covering more than 536,000 Illinois adults who previously had no insurance and wound up as charity care cases when they got sick.
Second, Illinois spends less per Medicaid enrollee than the national average and less per enrollee than any of its neighboring states. In 2011, the most recent year available, Illinois ranked 47th in Medicaid spending per enrollee, according to the Kaiser Family Foundation. Only California, Alabama, Georgia and Nevada spent less.
Rauner spokesman Lance Trover said Rauner’s point was to highlight that job growth hasn’t kept up with spending pressures.
“It’s not a sustainable trend line — regardless of the amount of federal dollars,” Trover said
Under fire for the high salaries he is paying members of his inner circle, Gov. Bruce Rauner said Friday the overall cost of running the governor’s office will be less than it was under former Gov. Pat Quinn.
But a review of records shows the political newcomer may be trying to keep his office costs lower by placing some of his top aides on the payrolls of other state agencies.
According to data supplied by the Illinois Comptroller’s Office, one-quarter of the more than 40 people Rauner announced as members of his administrative team don’t technically work for the governor’s office.
Take Randy Pollard as an example. In a news release issued Jan. 10 by Rauner, Pollard was named as the governor’s downstate director. But records show the former prison worker from Vandalia is being paid out of the payroll of the Illinois Department of Natural Resources.
That’s the usual way of doing things in Springfield, so it’s not a surprise, except Rauner said he wouldn’t do things the usual way.
* Here’s CFO Arduin with then-Gov. Arnold Schwartzenegger…
Governor Bruce Rauner convened a conference call this afternoon with leaders of the Illinois Department of Transportation, the Illinois Emergency Management Agency, the Illinois State Police, the Illinois Commerce Commission and Central Management Services for an update regarding the ongoing winter storm and the state’s readiness to assist citizens.
Prior to the call, Governor Rauner activated the State Incident Response Center in Springfield to ensure state personnel and equipment are ready to be quickly deployed if needed to help local emergency responders deal with the blizzard conditions in the Chicago area.
Relevant facts from today’s storm include:
· There have been no requests from local first responders for additional state assistance – state agencies are prepared in case a need arises
· There have been no serious injuries or fatalities reported due to today’s weather
· All IDOT snow plows are in use where needed
· There are further concerns following the end of the storm when temperatures drop which may result in freezing roads. Motorists are advised to remain off the roads, but if travel is necessary to use extreme caution
· There are approximately 16,000 ComEd customers without power
· There are approximately 1,850 MidAmerican Energy customers without power
· There are approximately 800 Ameren Illinois customers without power
· All companies have assured the state they are working as quickly as possible to restore power, and all customers should have power restored by tomorrow
· I-57 around Champaign is still closed due to an overturned truck – crews are working quickly as possible to open the highway – traffic is being diverted
· While the tanker truck was not carrying any hazardous material, approximately 68 homes were evacuated out of an abundance of caution
· There have been 1,100 flights cancelled at O’Hare and 200 at Midway
· State IT services are in good shape and functioning
The governor is confident the state is poised and ready for action should conditions continue to deteriorate and cause further, more serious problems. He continues to urge motorists to avoid travel unless absolutely necessary.
Daniel Biss appears to be the first Democrat to actively float his name for the 2016 special election for state comptroller.
The state senator from Evanston is known as a policy wonk around the statehouse, but he’s also a prodigious fundraiser, ending the fourth quarter with $721,000 in the bank.
The special election law was passed by the General Assembly in early January—just weeks after the death of Republican Comptroller Judy Baar Topinka. Former Gov. Pat Quinn signed it into law on his way out the door.
If the new law is upheld by the courts (which seems likely, but not 100 percent certain), Gov. Bruce Rauner’s appointment to the post, Leslie Munger, will have to stand for election in a presidential election year.
Since the days of President Bill Clinton, Republicans have been at a distinct disadvantage during presidential election years. No Republican presidential candidate has won this state since 1988, when George H.W. Bush defeated Michael Dukakis 51 percent to 49 percent. Back then, Illinois was considered a “bellwether” state for presidential campaigns. No longer.
Anyway, Biss would first have to survive the Democratic primary. And although no other candidates have yet floated their names, it’s expected that we will see some interest (there’s even some talk that Quinn might be interested).
Biss pushed hard for state worker pension reform when he was in the House and then again after he moved to the Senate. That hasn’t endeared him to labor unions, although I’m told he’s been attempting to reach out to the unions to try and smooth things over. Biss ran unopposed for the Senate last year, so the Illinois AFL-CIO took no position on his nonexistent campaign.
Meanwhile, state Sen. Napoleon Harris, D-Flossmoor, has been eyeing a move up the political ladder almost as soon as he won the 2012 primary to replace the retiring incumbent Rev. James Meeks.
Harris expressed strong interest in running for the U.S. House seat vacated by the disgraced incumbent Jesse Jackson, Jr., but wound up bowing out. Now, Harris is looking at a possible U.S. Senate bid.
Harris is a former NFL football player. Many of his former teammates have plenty of extra cash, which gives Harris a natural fundraising base.
He is also a successful businessman in his own right, a Beggars Pizza franchise owner in the south suburbs.
He is the first state legislator to express a strong interest in the Senate race. All of the other possible candidates mentioned so far are members of the U.S. House of Representatives.
One of those representatives expressing interest in running for Senate is Robin Kelly, who ended up winning the 2013 special election to replace Jackson, with Harris’ eventual endorsement. If both she and Harris end up running for Senate, that would mean two African-Americans from the south suburbs would be competing in the Democratic primary. Kelly would have to give up her House seat to run, but Harris just started a four-year term.
Republican incumbent U.S. Sen. Mark Kirk has a moderate (for Washington, D.C.) voting record. Kirk will also have strong support—financial and otherwise—from the majority Republicans in the Senate if he runs, which appears likely at this moment. And Kirk will benefit from a newly rebuilt party infrastructure, courtesy of Rauner’s gubernatorial campaign, and from Rauner’s super-wealthy contributor network. Kirk, himself, also has built an impressive fundraising network of staunch Israel supporters.
Even so, no Republican U.S. Senate candidate has won Illinois during a presidential year since Charles Percy was re-elected way back in 1972. President Richard Nixon absolutely stomped Democrat George McGovern that year here by 19 points. Even so, the Democrats won back the governor’s office.
The last Republican U.S. Senator from Illinois, Peter Fitzgerald, declined to run in the 2004 election, when George W. Bush lost the state by ten points. And the average Democratic presidential winning margin in Illinois since 1992 is over 16 points. Yes, Barack Obama pumped up that average, but they all won by double digits.
Even so, it’s not an impossible task for Kirk. He could actually run to the left of Sen. Harris on some social issues if the legislator manages to survive the primary. Harris voted “present” on the gay marriage bill, for instance. Kirk favors the “liberal” side of that position.
Imagine the uproar if a governor proposed a law allowing local governments to tell their residents that paying monthly cable television bills now is purely optional.
If your county or city opted in, you could have whatever cable channels you wanted without paying a monthly fee. No repair charges either, unless you felt like chipping in.
The governor likely would be laughed out of office. If you want a private service, even a monopolized private service, you should expect to pay.
But that’s pretty much what Gov. Bruce Rauner is proposing for labor unions.
It’s called “right to work” by its proponents, although Rauner referred to it as “employee empowerment” during a Jan. 27 speech in Decatur.
One possible scenario – perhaps the best-case scenario, given the tenor of the discourse now – is that Rauner intentionally is using his anti-union rhetoric as a bargaining chip to later get what he wants from AFSCME during negotiations. It’s not unusual during labor talks for each side to stake out extreme positions, hoping for eventual common ground in the middle.
But what Rauner has in mind is anyone’s guess outside of his inner circle. The first-time governor is untested and unknown, and he still isn’t offering specifics about how he intends to fix the state’s fiscal problems from a structural standpoint, instead continuing to rail about the sins of the past.
Rauner clearly believes right-to-work zones hold some promise for Illinois or he wouldn’t talk about them with such emphasis. But even the pro-business Illinois Chamber of Commerce says the move is unnecessary.
“Illinois doesn’t need right to work (laws) to compete with its neighbors,” Todd Maisch, chief executive of the Illinois Chamber, told the Chicago Tribune.
Rauner’s focus should be on bringing together the groups that have a role in fixing Illinois’ severe fiscal problems, including unions, rather than creating unnecessary divisions. Mutual respect is a must if Rauner intends to achieve his goals.
If last week was any indication, it’s shaping up to be a contentious year at the Capitol.
* I’m going to leave comments opened late today so people have a chance to discuss these appointments. Click here to read it and I’ll compile a list in a few.
…Adding… Here they are, with a handful of notations…
* Randall Blankenhorn - Secretary of the Illinois Department of Transportation (CMAP Director, noted foe of Illiana and proponent of increasing state funding share for IDOT’s District 1, which includes the Chicago area)
* Donald Tracy - Member and Chair of the Illinois’ Gaming Board (This one could get the most press since he was a Rauner supporter and replaces a chairman who is popular with political reporters and editorial boards)
* Thomas Dunn - Member of the Illinois Gaming Board (Former Democratic state Senator, former Will County judge)
* James Joseph - Director of the Illinois Emergency Management Agency
* Michael Mannion - Director, Division of Banking of the Illinois Department of Professional and Financial Regulation (Former VP of Gvt. Relations for Blue Cross, former GOP staffer)
* Jay Stewart - Acting Secretary of the lllinois Department of Financial and Professional Regulation
* Shari Reiches - Member of the Illinois State Board of Investment (Principal at Rappaport Reiches Capital Management)
* Marc Levine - Member of the Illinois State Board of Investment (Ties to the Illinois Policy Institute, failed GOP candidate against Sen. Daniel Biss in 2012)
* Leo Schmitz - Director of the lllinois State Police
* Lula Ford - Member of the Illinois Board of Education (Another Rauner supporter, kicked off the ICC by Gov. Quinn)
* Eligio Pimentel - Member of the illinois Board of Education
* Craig Lindvahl - Member of the Illinois Board of Education
* Roberta Parks - Member of the Illinois Board of Education
…Adding More… Here’s the press release…
Name: James Joseph
Position: Director – Illinois Emergency Management Agency
Governor Bruce Rauner has selected James Joseph, 33, as the Director of the Illinois Emergency Management Agency. Joseph will also serve as the Illinois Homeland Security Adviser. He brings nearly 15 years of experience in both the private and public sector to the position.
Since 2010, Joseph has worked for DuPage County in various roles within the Emergency Management Department. Currently, he is the Director and oversees three county departments, and is responsible for the Emergency Operations Center. For nearly two years, he served as Chief of the Security Division. He also was an Emergency Management Coordinator, where he managed county-wide emergencies and disasters.
Joseph also founded his own private security company called Center for Security Intelligence. He provided services in security operations, workplace violence prevention and emergency management. Clients included the Lake County Government, the 19th Judicial Circuit Court of Illinois and numerous businesses in the private sector.
Prior to owning his own business, Joseph worked at HSBC – North America as its Vice President of Security and Fraud Risk. He created and implemented security protocols for corporate offices, data centers and field offices. He also created security awareness strategies for the 70,000 employees of HSBC based in North America.
Joseph also holds a number of volunteer positions as a resident of Carol Stream. He is currently the Chairman of the Board of Police and Fire Commissioners. He also is the Chairman Pro-Tem of the Planning Commission and Zoning Board of Appeals.
Joseph earned his bachelor’s degree in law enforcement from Oakton College. He also holds various certifications from the Department of Homeland Security and the Federal Emergency Management Agency.
Experience:
· DuPage County – Office of Homeland Security and Emergency Management
o Director (2013-Present)
o Chief of Security Division (2011-2013)
o Emergency Management Coordinator (2010-2011)
· The Center for Security Intelligence, Owner/Consultant (2009-2010)
· HSBC – North America, Vice President – Security & Fraud Risk (2003-2008)
· Glenbrook Security Services, Account Manager, HSBC – North America (1999-2003)
Volunteer Service:
· Carol Stream Board of Police and Fire Commissioners, Chairman
· Carol Stream Planning Commission/Zoning Board of Appeals, Chairman Pro-Tem
Personal Information:
· Age: 33
· Hometown: Carol Stream
Board of Investment
Name: Mark Cozzi
Position: Member – State Board of Investment
Governor Bruce Rauner has selected Mark Cozzi to the Illinois State Board of Investment. Cozzi brings more than 25 years of private investment experience to the position.
Currently, Cozzi is the managing partner and founder of Lincoln Park Capital Group, and he provides consulting and advisory services to a wide-range of companies. He founded the company in 2008 and worked there until 2011. He rejoined the firm in 2014.
From 2011 to 2014, he was the senior managing director of the Electrum group, which is a private investment firm focused on the mining sector. He managed the company’s portfolio of investments.
Before Lincoln Park Capital Group, Cozzi was the executive vice president and chief financial officer of Leor Exploration and Production. In that role, he took a $22 million investment and transformed it into a $2.2 billion dollar equity stake in just three years for a 100 percent return on investment. He grew the company from two employees and $15 million in assets to 30 employees and $300 million in assets.
Cozzi holds an MBA from Northwestern University. He earned his bachelor’s degree from the University of Wisconsin in business administration.
Name: Marc Levine
Position: Member – State Board of Investment
Governor Bruce Rauner has appointed Marc Levine, 51, to the State Board of Investment. Levine brings more than 25 years of investment and business experience to the position.
Most recently, Levine was the co-founder and managing partner of Chicago Asset Funding, LLC. He worked at this boutique investment banking and asset management firm for eight years until 2012. Levine was able to use the company’s unique structure to successfully invest during the 2008-2009 financial crisis.
Levine has a wide range of experience from companies and banks in Illinois, California and Florida, where he oversaw financial transactions at a number of levels. He also served on the Board of Directors of General Motors, Navistar, and other technology startups and communication companies.
Levine is a certified public accountant, and earned his degree in accounting from the University of Illinois Urbana-Champaign. He also has an MBA from Northwestern University.
Name: Shari Reiches
Position: Member – State Board of Investment
Governor Bruce Rauner has selected Shari Reiches, 52, to the Illinois State Board of Investment. Reiches has more than 30 years of experience in finance and capital management.
Reiches is currently a member, manager and principal of Rappaport Reiches Capital Management, which assists families and non-profit corporations with investment and financial planning. She co-manages the firm with other partners, and is the co-chair of the firm’s investment committee.
From 1999 to 2005, Reiches was the vice president of Sanford C. Bernstein & Co., Inc., where she worked as a financial adviser. Prior to that, she worked for U.S. Bank and its predecessor institutions, eventually working her way up to the president of private banking. In that role, she managed the private banking division.
Reiches earned her bachelor’s degree in accounting from the University of Illinois Urbana-Champaign. She earned a master’s degree in banking from the University of Wisconsin.
Board of Education
Name: Lula Ford
Position: Member – Illinois State Board of Education
Governor Rauner has named Lula Ford, 71, to the Illinois State Board of Education. Ford brings 34 years of experience as a teacher, principal and assistant superintendent to the position. She also served the State of Illinois as an Illinois State Commerce Commissioner and as the Assistant Director of Central Management Services.
Ford began her career as an elementary school teacher in Chicago Public Schools. Throughout her three decade career at CPS, she was also a counselor and principal. Ford earned the Principal of Excellence Award from 1992-1994. She also served as an Assistant Superintendent and the Chief Instruction Officer.
Most recently, Ford was an Illinois State Commerce Commissioner. She served on that board for 10 years until 2013. Before that, she was the Assistant Director of the Illinois Central Management Services.
Ford earned her bachelor’s degree in biology from the University of Arkansas at Pine Bluff. She also holds two master’s degrees in inner city studies from Northeastern Illinois University, and vocational counseling from the University of Illinois Urbana-Champaign.
Name: Craig Lindvahl
Position: Member – Illinois State Board of Education
Governor Bruce Rauner has appointed Craig Lindvahl, 57, to the Illinois State Board of Education. Lindvahl brings more than 35 years of experience in education and business to the board. Lindvahl is an award-winning educator earning the prestigious Milken National Educator Award, and has twice been a finalist for Illinois Teacher of the Year.
Lindvahl is currently the Executive Director of the Midland Institute for Entrepreneurship, which is a company that educates future business leaders. He oversees the CEO (Creating Entrepreneurial Opportunities) program. He speaks across the country about CEO, millennials and economic development.
Lindvahl spent 34 years in the classrooms of the Teutopolis District 50 Schools. He taught music, band, television production and entrepreneurship programs. Some of the accomplishments during his tenure include tripling the size of the district band program and the creation of a television production program. He also led a group of students to the Marshall Islands to produce a student-led documentary about the country and culture. The product was distributed to 5,000 schools through the Peace Corps.
Lindvahl is also an award-winning filmmaker, having earned 12 Mid-America Emmy Awards and 11 Telly Awards for his writing, producing, camera work and editing. Projects have taken him all over the world, and given him the ability to work with students from more than 25 countries. He currently owns Callan Films Corporation, which produces documentaries and corporate projects.
Name: Roberta Parks
Position: Member – Illinois State Board of Education
Governor Bruce Rauner has selected Roberta Parks, 64, to the Illinois State Board of Education. Parks brings more than 35 years of experience to the position.
As the Vice President for UnityPoint Health Methodist|Proctor Foundation, she oversees the $27 million foundation, which benefits two hospitals and doctors in the system, along with Methodist College. This also includes fund development; donor relations; and the communications of major gifts, planned giving and special events.
For 15 years until 2013, Parks was the President of the Peoria Chamber of Commerce. She was responsible for all operations of the 1,100 member organization. Parks was directly responsible for government affairs, education, transportation and community development programs.
Parks has also worked for the City of Peoria as the Intergovernmental Coordinator. She worked in tandem with the Mayor and City Council to serve the people of Peoria.
Parks is a graduate of Bradley University, with a bachelor’s degree in business management.
Name: Eligio Cerda Pimentel
Position: Member - Illinois State Board of Education
Governor Bruce Rauner has selected Eligio Cerda Pimentel, 49, to join the Illinois State Board of Education. Pimentel has a demonstrated track record of supporting education in underprivileged communities through his work in the community. He brings nearly 20 years of professional experience, both as an attorney and engineer, to the position.
Currently, Pimentel is an attorney and board member at McAndrews, Held & Malloy, Ltd. He joined the firm as an associate in 1996, working his way up to a member of the board. Pimentel is a patent attorney, focusing on litigation; and he maintains a transactional practice focusing on intellectual property rights.
Pimentel is an avid-supporter of providing educational opportunities to economically disadvantaged children. He is currently on the Board of Directors of Cristo Rey High School, serving students on Chicago’s southwest side who could not otherwise afford a private college-prep education. Pimentel also served on the Board of Directors of the Mary Crane Center, which promotes early-childhood education on Chicago’s west and northwest sides.
Pimentel is the son of migrant farm workers from California’s Central Valley. He went on to Stanford University, earning a bachelor’s degree in mechanical engineering. He worked for three years as an engineer at the Bechtel Corporation, and then decided to go to law school, earning his Juris Doctorate from the University of Minnesota.
Gaming Board
Name: Don Tracy
Position: Chairman - Illinois Gaming Board
Governor Bruce Rauner has selected Don Tracy, 54, to become Chairman of the Illinois Gaming Board. Tracy’s background as an attorney and business owner gives him the experience necessary to lead the board dealing with an important industry in Illinois.
Tracy is currently a partner at Brown, Hay & Stephens LLP, which is the state’s oldest law firm and the former firm of President Abraham Lincoln. Tracy currently practices corporate law, including acquisitions and business litigation. He represents a number of closely held and family businesses. Tracy is also general outside counsel to Dot Foods, Inc., which he owns with his 11 siblings. Dot Foods is the nation’s largest food re-distributor.
Prior to joining Brown, Hay & Stephens, LLP in 1995, Tracy was a partner at Heyl, Royster, Voelker & Allen for six years. He also owned and operated his own law firm for nine years. Tracy also has experience as in-house counsel at the Illinois National Bank of Springfield. He began his law career at Baker & Donelson in Memphis, Tenn.
Tracy serves on a number of boards in the Springfield area, including the Abraham Lincoln Association, the Dana Thomas House Foundation and the Illinois National Guard & Militia Historical Society. He also was appointed to the Oak Ridge Cemetery Board in 1992 and served on it for four years.
Tracy is a graduate of Arizona State University and has a bachelor’s degree in business administration. He earned his law degree from the University of Memphis.
Name: Thomas Dunn
Position: Member - Illinois Gaming Board
Governor Bruce Rauner has named former Will County associate judge and state Senator Thomas Dunn to become a member of the Illinois Gaming Board. Dunn, 72, was instrumental in bringing riverboat gambling to his district of Joliet, which brings a different perspective to the board.
Dunn served the people of Joliet and Will County as a state senator from 1972 to 1997. He was a ranking member of the judiciary committee, and also served on the public health, welfare, corrections and revenue committees.
Most recently, Dunn served as an associate judge for Will County. He was appointed in 1997 and served for eight years until 2005. He is a graduate of St. Ambrose College with degrees in political science and history. He earned his law degree from DePaul University.
* As we’ve discussed before, the state’s child care program is pretty much broke. From the governor’s office…
The budget signed by (former) Governor Pat Quinn last year did not provide adequate funding for the entire Fiscal Year 2015. As a result, the Child Care Assistance Program (CCAP) faces a $296 million hole and state-funded payments to the program will cease this month unless a responsible solution and appropriate funding source is found. CCAP continues to operate on Federal funding, but those funds only support half of the program, which will result in payment delays after February 1.
Finger-pointing aside (and it’s justifiable), this is a serious problem.
* Child care providers just received a memo from the state…
“Beginning in February providers will experience a delay in payments for child care services through June 30, 2015.
The funding shortfall may also result in service reductions to the Child Care Assistance Program.
In the past we have combined Federal funds with State funds in order to pay the monthly bills for child care services; however, this is no longer possible as only Federal funds remain. This means that we are unable to make CCAP payments to providers until the latter part of the month, which is when we receive our Federal funding.
Because the allocation of Federal funding is not enough to pay an entire month, unpaid bills will be carried over to the next month and payment delays will get progressively longer each month.”
Oy.
There are a whole lot of small, owner-operated child care providers out there who are not going to survive very long.
And when that happens, working parents will have to scramble to find somebody else, or even quit their jobs. Same goes for parents in school.
[Syverson] warned that as soon as Feb. 1 childcare providers could not be receiving reimbursement from the state unless the General Assembly passes a supplemental bill.
“(But) if we don’t pass a supplemental, then the money dries up in the account and the day cares don’t get paid and all of these families that are currently out there working, most of them at minimum wage and low-wage jobs, they’re out of luck,” added Syverson.
Letting the money dry up would create a ripple effect and force many daycare centers to close, said Richard Wooten, associate pastor at Faith-Walk International Church in Englewood.
“The local economy would collapse if daycare centers start shutting down especially in communities already battling high unemployment. Parents would not be able to go to work and that means less money spent on goods and services,” said Wooten
Passing a supplemental does not put money into GRF. No more than writing a check puts money in your account.
That’s correct. They’ll have to find the money somewhere, either through new revenues or skimming special state funds. Moving “extra” GRF around probably won’t work because, well, there is no extra GRF money right now.
State Sen. Dan Kotowski, a Park Ridge Democrat and top budget negotiator, says Rauner has a solution. He says there’s about $700 million in surplus money in dozens of accounts across state government that could be used to fill the hole. The budget was crafted to allow the governor to transfer some of that money into the state’s general checkbook, Kotowski said.
Kotowski said Rauner should transfer the money out of those accounts, which collect money from various fees.
“This is a perfect time to draw from those surplus dollars,” Kotowski said.
Rauner has referred to this move in recent weeks, criticizing lawmakers and Quinn for counting the act of borrowing money from other accounts as income. His office disputes Kotowski’s opinion, saying in a budget memo that such methods aren’t available to fix the shortfall.
“Unfortunately, current law prohibits the governor from using common-sense budget management techniques to ensure the Child Care Assistance Program and other vital services endure for the rest of Fiscal Year 2015,” the memo reads.
That’s the question that no one is answering after I reported earlier in the week that the U.S. Department of Education of threatening to cut off nearly $1.2 billion in Illinois school aid because of a student-testing flap with Chicago Public Schools.
The clash effectively pits Education Secretary Arne Duncan, who once headed CPS, against the woman who now holds that job, Barbara Byrd-Bennett. Eventually, it also potentially pits Gov. Bruce Rauner against Mayor Rahm Emanuel, because the threatened loss of funds could affect not only Chicago, which is refusing in most schools to use a new test linked to the national Common Core standards, but school aid statewide, which Rauner has made a priority.
Asked if those involved are making any progress resolving the standoff, Duncan’s spokeswoman declined to comment, saying the letter to the Illinois State Board of Education that threatened to hold up the $1.2 billion will have to speak for itself.
CPS’ spokesman says he’s still gathering information—for two days now. And aides to Rauner and Emanuel aren’t saying, though they clearly know what’s going on.
* Well, Christopher Koch, the state’s Superintendent of Education, and James Meeks, the State Board of Education Chairman, just sent a letter to all local superintendents and school board chairs that explicitly threatens Chicago with a cutoff of state funding…
ISBE is also prepared to take recognition action pursuant to 23 Ill Admin. Code 1.20 against any district that fails to properly administer the PARCC exam to all students. As you are aware, a non-recognized district will lose General State Aid funding.
Please understand that if a district does not administer the assessment, it not only places the district at risk of losing federal funds but it also places the entire State at risk of losing federal funds. According to communications with USDOE, if ISBE fails to sanction a district for failure to test, USDOE will withhold federal funds from the State. In addition, USDOE has made clear that noncompliance with the assessment requirement also places Illinois at risk of losing its No Child Left Behind (NCLB) waiver.
ISBE must and will enforce the provisions of ESEA as required by federal law so that ISBE does not place the State at risk of action by the USDOE and because we are committed to implementing valid and reliable performance measures for our schools.
* This started off with a chief of staff for the First Lady and is now mushrooming into a full-fledged meme…
While criticizing state spending and state worker salaries as too high, Republican Gov. Bruce Rauner is paying top members of his administration significantly more than their predecessors in Democratic Gov. Pat Quinn’s administration, a review by The Associated Press has found.
An AP review of state payroll records found nine of ten top administrative posts paying more under Rauner, who took office earlier this month. On an annual basis, those Rauner staffers will make more than the equivalent Quinn staffers by nearly 36 percent, or roughly $380,000.
Among those receiving more is Rauner’s deputy governor, Olin “Trey” Childress III, a former chief operating officer for the state of Georgia, who is making $198,000 a year, a 24 percent increase over Quinn’s deputy governor’s $150,000 salary.
Rauner has been bashing state workers, complaining about an exploding payroll and an unsustainable state spending spree, yet nobody thought this could happen when salaries were set? Or did they figure it would happen and didn’t care? That would be a perfectly stereotypical 1 percenter way of thinking. All for me and none for you.
* Also, he’s got plenty of protection money in the bank…
Rauner hasn’t said how exactly he plans to spend that $20 million-plus, but he made it clear talking to reporters on the day after he was inaugurated this month that he’s preparing to charge again into the battle for hearts and minds.
“The voters need to be informed about the issues and what’s going on,” he said. “The voters need to understand my personal view of the issues and the agenda … . We’ve got to get our message to the voters and to the citizens, the taxpayers, the families …” […]
I can easily imagine his presentation repackaged into television commercials as he attempts to take his urgent “turnaround” message directly to the people, bypassing media critics and analysts who are challenging some of Rauner’s numbers.
* From commenter Arthur Andersen, who is an old hand on the pension front…
(T)he argument about members’ contributions being “a small percentage” of the total pension payments over a lifetime is a red herring that provides no justification for the hugely expensive swap to the inferior [defined contribution] plan.
In one sample case I’ve examined, a 31-year State worker with time in SERS and TRS recovered his contributions in about 3.5 years. If one assumes a State match of contributions, the recovery time goes to 7 years.
Now here’s where it gets interesting; if those contributions were accounted for separately and earned what the pension funds over the working career of the employee-the contributions are now worth over 13 years of the pension.
In turn, taking that hypothetical amount and annuitizing it for 28 years (average life expectancy) at 8% with monthly withdrawals equal to the pension payment, there was actually some money (but not much) left over.
In other words, if the state had made its payments all along there would be no problem today.
Yes, you could argue that an 8 percent return over time is too high of an expectation. But if so, why is the IMRF fund in such good shape? They didn’t necessarily invest spectacularly better than the TRS or SERS. The key difference is municipalities had to make those payments or the state could snatch their revenue sharing money.
One of the first tasks awaiting Illinois’ new state park czar is finding common ground over a proposed new park for all-terrain vehicle riders.
Hunters, neighbors and local officials have raised red flags over a plan to transform an undeveloped part of a western Illinois state park into a haven for motorcycle and off-highway vehicle riders, arguing the facility would take a prime white-tail deer hunting spot out of circulation with noise and increased traffic.
Off-highway vehicle aficionados say the state needs to move forward on the park in order to justify a new fee the state is charging on their vehicles.
The state’s new ATV fee is between $10 and $15. The money is supposed to go to build an ATV course on a state park. And the Buckhorn unit of Siloam Springs State Park is a little-used area in need of some upgrades. The state bought the land with federal money in 2001 and hasn’t done much to upgrade the thing.
John Falrin, chairman of the Brown County Board of Supervisors, said public sentiment is against the park. In December, the board approved a resolution opposing the facility.
“I could never find anybody in this county that said they would use something like this,” Falrin said.
He also doubts the park would result in a big bump in tax revenue.
“What are they going to buy here? A little gasoline? A little beer? That’s not going to amount to much,” Falrin said.
Oh, I dunno, maybe the local antique shop and restaurant owners might see a substantial uptick, or a new ATV/RV sales and repair shop could open? Maybe even a new motel or bed and breakfast, for those not into camping?
Sheesh. The guy has zero imagination.
* Here’s how Brown County, population 6,937, touts itself on its website…
We are a small community with big city thinking!
Big city thinking, perhaps, but they sure don’t want any of those big city people coming in.
* Les Davenport at Heartland Outdoors penned a vicious screed against the ATV park before the announcement was made. But he actually wound up undermining his fellow opponents and partially made the case for it…
Decrepit, dangerous buildings are still standing in this public area. The Buckhorn, however, does provide thousands of resident-only deer hunters, small game hunters, fishermen, mushroom seekers and hikers a great place to enjoy the sights and whispers of nature. This may end soon if Director Marc Miller gets his way!
It is strongly rumored that Miller wants to turn this park into “The Midwest’s Biggest and Best ATV Park.” It’s said that he wishes to draw ATV enthusiasts from all across the Midwest. Most of us would rather see non-residents stay in their own state and tear up their own public land.
OK, first of all, those “decrepit, dangerous buildings” on the parkland will finally be fixed. And, secondly, locals don’t own that land, the state does. If they don’t want “non-residents” using “their” park, then they should buy their own park.
* Last summer, I was looking for a place to camp during Labor Day weekend. I stumbled across a Missouri state park which looked interesting…
The roar of engines breaks the stillness of the Old Lead Belt at St. Joe State Park, one of two off-road vehicle parks in the state system. The sand flats, hills, and 2,000 acres set aside for off-road vehicle use make the park the premiere off-road vehicle area. The park also features four lakes, with two swimming beaches, an equestrian trail, a hiking and bicycling trail, and picnic sites, as well as two campgrounds capable of accommodating campers with ORV or horse trailers.
I don’t have an ATV, but that seemed like a pretty cool thing to do. I may get one if this Illinois park opens. And tons of state parks throughout the country have set aside land for ATV parks.
* I get that some locals don’t want the noise or the bother of an ATV park in their area. But this thing has to go somewhere.
* Keep in mind that not a single substantive committee meeting has yet been held in either chamber. So, this period is akin to the lead-up to pitchers and catchers reporting. Most of these ideas make for great press pops, and that’s about it…
Lawmakers are toying with the idea of legalizing the sale of fireworks in Illinois. State Rep David Reis says it would be a great way to boost state revenues and keep people from going to other states to pick them up. But some fire chiefs and law enforcement officials think it’s a bad idea. They say it’ll cause a spike in fire related injuries and any extra money that comes in would be offset with increased medical claims and calls to first responders.
* I’d like to see this pass, but some school reformers (like Gov. Rauner) tend to love standardized testing because it can be used as a tool to put pressure on the hated teachers. So, this idea may have an uncertain future…
Parents and educators alike have been questioning the increasing number of standardized tests now required in public schools. A measure filed by Illinois State Representative Will Guzzardi would give moms and dads a way to allow their kid to skip these exams.
“Seven other states have statutes allowing parents to opt out of their standardized testing,” Gizzard says. “Those states haven’t seen any sort of diminishment of their federal funding or anything like that, as some of the doom-and-gloom folks suggest might happen.”
Those states are California, Pennsylvania, Washington, Wisconsin, Oregon, Nebraska and Utah.
State Representative Ron Sandack (R-Downers Grove) filed legislation this week that would make Illinois the 25th state that allows municipalities to seek bankruptcy protections under Chapter 9 of the U.S. Bankruptcy Code.
Chapter 9 allows for bankruptcy protection, but includes a provision that requires a municipality to gain state authorization as part of the filing. Currently, Illinois statutes do not allow for such authorization for municipal governments.
“House Bill 298 would allow desolate and debt-ridden municipalities in Illinois to seek bankruptcy protections through the federal bankruptcy law,” said Sandack. “As more and more municipalities are looking for relief and ways to deal with rising pension liabilities and other costs, this is a tool that can help them stabilize and reorganize financial affairs in ways that benefit taxpayers.”
* Press release…
In an effort to give terminally-ill patients access to clinical-trial, experimental medical treatments, the bipartisan duo of State Sen. Michael Connelly (R-Lisle) and State Rep. Greg Harris (D-Chicago) are seeking to bring “Right to Try” to Illinois.
If passed, Senate Bill 29 would make Illinois the sixth state in the nation to pass this potentially lifesaving access to experimental medical treatments. Arizona, Colorado, Louisiana, Michigan and Missouri have pass the initiatives either through their legislatures or through referenda.
“It is incumbent upon us in the General Assembly to provide our constituents afflicted with terminal illness access to potentially life-saving or life-extending medications that have been deemed safe by the FDA. This legislation does just that,” Connelly said.
“I hope this shows that in Illinois, Republicans and Democrats, social liberals or social conservatives, can reach across the aisle to solve problems for suffering families. These families are desperate to cut through red-tape to access possible cures for their loved ones when all other treatments have failed.” Harris said. “‘Right to try’ is a huge leap forward to help connect our state’s most terminal patients with some of the nation’s best medical resources, including those here in Chicago and give them the gift of life.”
Good idea, but it’s gonna take a whole lot of work and attention to details.
One Illinois lawmaker who is working to give Illinois kids a good education now is State Rep. Jeanne Ives, R-Wheaton, who told the crowd of parents and students that she’s dedicated to making school choice a reality in Illinois.
Ives isn’t starting from scratch. A pilot voucher program nearly passed the General Assembly in 2010, when a Democratic state senator and a Democratic state representative took up the education reform mantle. The legislation passed the Illinois Senate, but stalled in the Illinois House with the help of downstate Republican lawmakers who refused to support parental choice because of the power of the public schools, which are one of the region’s largest employers.
Ives said she intends to shepherd through the House two education reform proposals this year: one to resurrect the failed 2010 voucher bill and another to increase the state’s tuition tax credit above the current meager $500 level.
Ives hasn’t passed any major legislation before, preferring instead to oppose things. It’s encouraging that she now wants to be part of a solution, but she has a lot of bridges to repair.
Federal prosecutors in Chicago have quietly dropped narcotics conspiracy charges against more than two dozen defendants accused of ripping off drug stash houses as part of controversial undercover stings that have sparked allegations across the country of entrapment and racial profiling.
The decade-old strategy is also under fire because federal authorities, as part of a ruse, led targets to think large quantities of cocaine were often stashed in the hideouts, ensuring long prison terms upon conviction because of how federal sentencing laws work. […]
The stings, led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, have been highly criticized for targeting mostly minority suspects, many of whom were drawn into the bogus rip-offs by informants who promised easy money at vulnerable points in their lives.
The cases are built on an elaborate ruse concocted by the ATF. Everything about the stash house is fictitious and follows a familiar script, from supposedly armed guards that need to be dealt with to the quantity of drugs purportedly stashed there. By pretending the house contains a large amount of narcotics, authorities can vastly escalate the potential prison time defendants face, including up to life sentences.
I’m pretty sure I already told you that a former uncle of mine by marriage was caught up in a sting very similar to this. He thought he was unloading a plane that was chock full of cocaine, but the cocaine was actually just drywall paste and the plane was owned by the feds. He was sentenced to ten years in federal prison for conspiracy.
He was hanging out with some very bad people back then, so it was probably only a matter of time before he was busted for something. He has since totally turned his life around.
But ten years for drywall paste seemed a bit much.
* Phil Kadner writes about the problem with Gov. Bruce Rauner’s pledge to swich current state workers and teachers into defined contribution 401(K) plans…
Dave Urbanek, a spokesman for the Illinois Teachers Retirement System, said any such change would not be nearly as simple as it sounds.
He said there’s roughly a $104 billion deficit in the state’s five pension funds, and “that’s money the state owes. There are currently 395,000 people in the (TRS) system, including 159,838 active teachers.
“If you close (TRS), freeze it so there are no new members coming in and current members can no longer contribute to the pension system because they would be making contributions to their 401(k) plans, the state would still have to find a way to pay the $928 million a year contribution (to TRS) for active members who are eligible to retire in the future.
“They (active members) would no longer be contributing to the pension system but would still be eligible to collect a pension for their years of service prior to the switch.
“In addition, the state would have less time to make up the $104 billion debt to its pension systems. When you have an open system, you can project costs far into the future. But when you have a closed system, you have a defined end date. So you have to make larger payments in a shorter time frame to fulfill the state’s commitment.
“Also, the amount generated by investment would decrease because of the shorter time frame of a closed system.
Urbanek pointed out that the state would have to make some form of contribution to the 401(k) plans of active teachers, while also making payments into TRS.
“Someone would have to figure out, in the end, if the state would actually be saving money or if it would cost more to make the switch,” he said.
