Question of the day
Wednesday, Apr 5, 2017 - Posted by Rich Miller
* Background for this question is here, and it’s been updated twice, so go check it out.
Ready? OK. Assuming it passes the House, should the Senate Democrats pass the Gov. Rauner-opposed stopgap budget bill that funds some higher education and social service needs, or should it focus on passing its grand bargain proposal and a full-year budget? The polling app isn’t working today, so answer below and make sure to explain your answer, please.
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Downstate school districts file lawsuit
Wednesday, Apr 5, 2017 - Posted by Rich Miller
* Tribune…
A coalition of 17 downstate school districts say they filed a lawsuit Wednesday against Gov. Bruce Rauner and his administration, contending the state has failed to provide enough money to deliver a “high quality” education for students.
The suit against Rauner and the Illinois State Board of Education argues that Illinois’ reliance on local property taxes to pay for schools creates a disparity in poorer communities where districts have less of a tax base to rely on. That makes it harder for students to meet educational standards adopted by the state as class sizes increase and programs are cut.
The school superintendents bringing the lawsuit want the state to put in place a different model to determine how much money the state should funnel to low-income districts in order for students to meet those standards, saying current assessments are “arbitrary and capricious.”
“Despite efforts to properly educate our leaders, pleading for change and commonsense solutions at our legislators’ fingertips, when negotiations begin in the Capitol, students’ needs get lost in the political shuffle and the battle for power in Springfield far outweighs doing what is right for children,” said Brad Skertich, superintendent of Southwestern Community Unit School District #9, which serves the towns of Brighton, Medora, Piasa and Shipman
I’ve asked for a copy of the lawsuit and will share when I get it.
* From Illinois Secretary of Education Dr. Beth Purvis…
“Illinois school districts are receiving the highest level of funding ever under Governor Rauner, who has increased school funding by $700 million since taking office. The Governor also created a bipartisan school funding commission to improve the formula, which has recommended changes that will create an equitable school funding formula that will better meet the needs of each students within every school district in our state. The Governor never stops working to increase funding for our students and hopes school districts across Illinois will work with him and members of the General Assembly on this endeavor.”
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Repubs, Dems crow about local victories
Wednesday, Apr 5, 2017 - Posted by Rich Miller
* From the ILGOP…
For the past year, J.B. Pritzker and Mike Madigan have teamed up in an attempt to install Madigan supporters in local elections – and have failed miserably.
Before the 2016 election, Pritzker secretly funneled $200,000 to Madigan-backed House candidates, hiding his name by funneling the money through corporations. Madigan Democrats lost six seats in that election.
Last month, Madigan ally Linda Chapa LaVia failed to advance to the runoff in her race for Aurora Mayor after being blasted for her ties to Madigan. Pritzker campaigned and provided Chapa LaVia with financial support. Then, Pritzker backed Rick Guzman in the runoff, who lost to Republican Richard Irvin. Irvin will be Aurora’s first black Mayor.
And just yesterday, Pritzker teamed up with Democratic activists to oust Mayor Roger Claar from Bolingbrook. Despite statewide Democrats descending on the town, and despite Pritzker’s photo-op door knocking, Claar appears to have held on in a village with a heavy Democratic registration advantage.
Instead of trying and failing to win local races, Madigan should pass a balanced budget with reforms.
* From the Illinois Democratic County Chairmen’s Association…
Against Proft and Rauner’s Millions, Democrats Make Historic Gains
Big Republican outside money wasn’t enough to stop Democratic victories
Springfield, IL - Across Illinois, Democrats made unprecedented gains against outsized Republican spending and influence in local races. Republicans invested heavily in municipal and township races across the state, but Democrats made headway in elections they had not won - in some instances - for over a decade.
“Dan Proft and the Republicans were ready for the Democratic backlash after Trump’s election, but the money Bruce Rauner gave them wasn’t enough,” said Doug House, Chairman of the Illinois Democratic County Chairmen’s Association. “Across the state, Democrats picked up seats we weren’t supposed to win as well as in other places where thousands of dollars were spent against us. The takeaway: No Republican will go unchallenged no matter how hard and how tough the race will be.”
Democrat wins were evident across Illinois in these locations:
City of Kankakee - Chasity Wells-Armstrong upset incumbent Nina Epstein, electing Kankakee’s first Democratic African-American Mayor.
City of Rockford - Democrat Tom McNamara bested his opponents in a landslide, proving Rockford does not stand for Bruce Rauner’s turnaround agenda.
City of Springfield - Democrat Kristin DiCenso won in convincing fashion beating her Republican Precinct Committeeman opponent by almost 70%
West Deerfield Township (Lake County) - For the first-time Democrats took entire control of this Lake County Township.
Vernon Township (Lake County) - Democrats swept the trustee elections, as well as electing Daniel Didech as Supervisor - taking out five incumbents.
Normal Township (McLean County) - Democrats elected supervisors and trustees to this township board for the first time in over 100 years.
Springfield Township (Sangamon County) - Lakeisha Purchase made history last night by becoming the first Democrat (and top vote getter) to be elected to the Springfield Township board since 1976
Chatham Township (Sangamon County) - Diana Carlile became the first Democrat (and top vote getter) ever to be elected to this predominantly Republican stronghold.
Palatine Township High School District 211 (Suburban Cook County) - Love trumped hate, and incumbent school board members who supported transgendered students were re-elected against opponents funded by outside hate group Alliance Defending Freedom.
New Trier Township (Suburban Cook County) - Among many areas Dan Proft was funding, Republican candidates attempted to fly below the radar in this township, but were soundly defeated by the Democratic Economy Party.
Maine Township (Suburban Cook County) - Democrats elected Claire McKenzie in the all GOP-controlled township government.
Richland Community College (Macon County) - Macon County Democratic Chairman Jim Underwood won in impressive fashion and will now be able to bring a strong Organized Labor voice as this Community College as they deal with higher education cuts from Bruce Rauner.
Lincoln Land Community College (Sangamon County) - Not even Donald Trump could save 16-year incumbent and former Trump State Director Kent Gray. He was trounced by Democrat Gordon Gates in this contested race.
In other races across the state Democrats came within inches of beating entrenched incumbents. Grass-roots Democrat Jackie Traynere lost by less than 100 votes against 30-year Republican Trump supporter Roger Claar after Dan Proft and others spent hundreds of thousands in television attack ads against Jackie.
* Greg Hinz referees…
Gov. Bruce Rauner and his conservative allies had a good night in yesterday’s suburban elections, winning more races than they lost. […]
[However] On the North Shore, a slate of incumbents easily held off challengers in contests for New Trier Township commissioner, despite lots of conservative activity. And in High School District 211, where Rauner ally and big funder Dick Uihlein also was involved , incumbents won easily in a race focused on whether to revisit the district’s stance on allowing transgendered students to use the bathrooms and locker rooms of their self-identified gender.
Beyond that, Rauner made a bit of play in elections in Rockford, and got clocked.
Still, overall results show that as long as Rauner’s big wallet is open, it will have an impact.
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* Illinois Policy Institute…
A new report by the Illinois Policy Institute finds that workers’ compensation costs Illinois taxpayers $982 million each year proving that not only is it a budgetary item, but it is also a major cost driver that should be controlled and managed.
The new report analyzes workers’ compensation costs for state government, school districts, townships, special district governments, municipalities, counties, other special police and fire districts, and publicly funded construction projects.
Illinois taxpayers are forced to shoulder not only the cost of government wages, health insurance, pensions and other benefits, but also to fund workers’ compensation costs that surpass those among the other states in the region. According to the recent “2016 Oregon Workers’ Compensation Premium Rate Ranking Summary,” Illinois’ system is the most expensive in the Midwest and ties for seventh-most expensive in the nation.
The report is here.
* Greg Hinz takes a look…
That comes up to a combined $982 million, about 4 percent of payroll. The total number is almost certainly higher because the institute was able to get only partial information from the city of Chicago. (Chicago officials tell me the cost to the city alone runs about $100 million a year.)
If those costs were lowered to the average of other Midwest states, state and local governments collectively would save about $300 million a year, the institute contends. […]
“I always figured 5 percent of payroll (for workers’ comp),” says [Brad Cole, executive director of the Illinois Municipal League], the former mayor of Carbondale. “I haven’t seen their report yet, but I think their numbers are reasonably accurate. Some of the items they talk about have a considerable cost.” […]
[The Illinois AFL-CIO] underlines that the institute’s figures in part are estimates, and says that cost of workers comp for construction workers is covered by private contractors, not the government. Finally, it says that average medical costs alone here are lower than in Indiana, Wisconsin and Iowa.
On the other hand, Senate GOP Leader Christine Radogno likes it. She says in a statement, “Once again, we have evidence that Illinois’ workers compensation system is costly to not only private industry, but units of government and the taxpayers as well. Illinois is out of step. There are definitely ways to lower costs—some of which was accomplished in our 2011 reform effort which is now showing some results. But there is clearly room for additional cost-saving reforms which I continue to fight for in the legislature.”
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Open thread
Wednesday, Apr 5, 2017 - Posted by Rich Miller
* I’m giving a speech soon, so you’re on your own for a while. Please keep it Illinois-centric and be nice to each other. Thanks!
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Mrs. Rauner is not alone
Wednesday, Apr 5, 2017 - Posted by Rich Miller
* I’ve seen some people mocking Mrs. Rauner on social media for this comment by her husband. But it’s not a laughing matter. I know numerous parents who are upset to the point of freaking out about this very same thing…
Gov. Bruce Rauner continues his push to reverse the trend of people leaving the state by bringing about economic reforms he says will grow the economy.
During his most recent Facebook live event Tuesday, Rauner read a question about why people are sticking around if the state is in such bad shape. Rauner said he and his wife, Diana, struggle with this issue.
“We’ve raised our six kids in Illinois. None of them live in Illinois,” Rauner said. “They all have found their opportunities outside of Illinois. My wife cries about it. It’s so sad.”
Many young adults are leaving because of the lack of opportunities in Illinois, the governor said.
“I talk to so many people who are frustrated. They don’t see their children and their grandchildren having the future in Illinois that they had themselves, that we had, that I had, growing up in Illinois going back 30, 40, 50 years ago,” he said.
The governor is in a position to do something about it, of course. Some of the parents I know are sad because they don’t want their kids going to an Illinois university, and that’s directly on the governor for his refusal to negotiate a budget.
And this impasse isn’t helping the economy and jobs one bit. It’s hurting. Period. Full stop.
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Proft wins big in Orland Park
Wednesday, Apr 5, 2017 - Posted by Rich Miller
* Orland Park Village President Dan McLaughlin got thumped by 8 points yesterday. Dan Proft’s Liberty Principles PAC deserves most of the credit…
The race drew $200,000 in campaign ads and mailers to oust McLaughlin, who had been in office since 1993 and raised eyebrows when the village board voted last year to make the mayor’s office a full-time job. The move bumped his $40,000 salary up to $150,000 in what Pekau denounced as a “pension grab.” McLaughlin dismissed the claim as “misinformation” because the move eliminated a costly village administrator position.
McLaughlin also suggested the presidential election played a role in his defeat, saying it ushered in “a sea change in the way people cast their votes.”
“The national elections in November taught us those lessons,” McLaughlin said in a concession statement. “The election is over, at least for me. In tact is a team of trustees who love Orland Park like I do.” […]
Pekau, a U.S. Air Force veteran and business consultant, said he would opt out of a pension if he won. On Monday, he said the donations from Dan Proft-led Liberty Principles PAC, which received hefty donations from Gov. Bruce Rauner last summer, helped his cause.
* Meanwhile…
A slate of candidates calling itself Parents with Purpose went after three open seats on the District 211 school board, largely in opposition to the district’s agreement with the federal government to provide girls’ bathroom and locker room access to a transgender student who filed a complaint with the federal government.
The slate was supported by an aligned group called Parents for Privacy, made up of about 50 families who are suing District 211 and the federal government over the agreement. The suit is pending.
With almost all precincts reporting, though, incumbents Robert LeFevre Jr. and Anna Klimkowicz and former board member Edward Yung appeared headed for victory. They have said generally that they support the agreement, though it applies to only one student.
* And…
In an historic election for the Lake County city [of Waukegan], Democratic alderman Sam Cunningham defeated independent candidate Lisa May. Cunningham’s victory will make him the city’s first African-American mayor. May would have been the city’s first female mayor.
* Moving on to Rockford…
Democrat Tom McNamara took home the Rockford mayoral race with 68 percent of the vote. […]
McNamara will replace Larry Morrissey , a three-term mayor who decided last fall to not run for re-election. […]
McNamara may find a friendlier City Council seated before him when he is sworn in as mayor May 1st. Although Rockford’s aldermen have tended not to vote along party lines, power will shifted from Republicans to Democrats. Republican Jamie Getchius and Independent Teena Newburg are both incumbents who lost to their Democratic challengers. Democrats picked up two open spots for a total of 8 of 14 council seats. A record number of Independents ran this year – five for alderman and two for mayor – but they all lost.
* Back to the suburbs…
In Evanston, management consultant Steve Hagerty was leading the city’s first openly gay alderman, Mark Tendam, with 50.5 percent of the vote — a margin of just 163 votes.
In Aurora, the race to lead the state’s second-largest city was also too close to call, as Rick Guzman — assistant chief of staff to Mayor Tom Weisner, who stepped down for health reasons last year — led by just nine votes as of 10 p.m. over Ald. Richard Irvin.
Absentee ballots were expected to be tallied in both races into Wednesday morning.
Irvin currently leads by 122 votes.
* Other results…
* Jim Ardis wins fourth consecutive Peoria mayoral term
* Pecak upsets Broda to become Lisle mayor: Pecak said during the campaign that he was running to bring change to the village. The construction manager said he would work for a property tax freeze, a balanced budget and improved transparency.
* Thoms wins Rock Island mayoral race
* Moore clinches second term as Quincy Mayor
* Gordon Gates defeats incumbent Kent Gray for LLCC trustee seat
* Lincoln-Way 210 voters have their say following school closure: Two longtime Lincoln-Way High School District 210 board members appeared to be trailing in their bids for re-election against a crowded field Tuesday night, following a heated year of fallout stemming from the closing of a high school and questions about board oversight.
* Palatine District 15 voters oust incumbents in referendum backlash: The slate was supported by the Palatine Republican Township Organization, which drew the ire of other candidates who warned the party involvement set a dangerous precedent.
Anything else you’d care to mention?
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* WJOL Radio…
Longtime Bolingbrook Mayor Roger Claar could be returning for another term. As of last night, the incumbent held a narrow lead over challenger Jackie Traynere with all 32 precincts reporting. Claar has been the mayor of the village for over 30 years. He stirred up controversy last year after hosting a September fundraising event for then-presidential candidate Donald Trump.
His opponent, Jackie Traynere, currently a Will County board member, received endorsements from Illinois’s U.S. Senators Dick Durbin and Tammy Duckworth and congressman Bill Foster. But unofficial results show Claar leading Traynere by just 103 votes. Provisional and mail in ballots will be counted in 2 weeks.
* AP…
Traynere spokesman Tom Bowen acknowledged because of the number of outstanding votes, Traynere is facing an “uphill battle.” […]
Claar hosted a fundraiser for Trump in September, which angered some voters in the suburb of about 75,000 people. As a result, support for Traynere poured in from top Democrats nationwide, including from U.S. Sen. Dick Durbin of Illinois and a group spun out of Sanders’ campaign. […]
[Claar] has previously dismissed the situation in Bolingbrook, saying Democrats are “trying to take over” and partisan politics shouldn’t be a factor in the race. His tenure has seen major development and growth in Bolingbrook.
The municipal contest is technically nonpartisan. But concerns raised in the presidential campaign and initial months of Trump’s tenure have hit home in the racially-diverse community with two mosques and where at least 20 percent of the community is foreign born.
* Patch…
It looked like every member of Claar’s Bolingbrook First slate would hold onto their seats except for trustee Sheldon Watts, a recent appointee on the board.
* NY Times…
The race was seen as offering a glimpse into Mr. Trump’s early effect on elections in 2017. Mr. Claar, 71, the village’s mayor for 31 years, was running unchallenged for his ninth term last fall when he co-hosted a fund-raiser at the Bolingbrook Golf Club for Mr. Trump, who was then the Republican presidential nominee.
But it quickly escalated into a political issue for Mr. Claar: More than 100 people protested the fund-raiser, saying that Mr. Trump did not share the values of their diverse, Democratic-leaning village of about 74,000. One of the protesters, Ms. Traynere, 54, decided to challenge Mr. Claar in the mayor’s race — and quickly made Mr. Claar’s association with Mr. Trump one of her main lines of attack.
A lineup of powerful Democrats in Illinois, including both United States senators, campaigned for Ms. Traynere. Soon Mr. Claar, who usually runs unopposed, found his job on the line.
There were other issues at stake in Bolingbrook — Ms. Traynere said Mr. Claar had driven the village into debt, and Mr. Claar said she was unqualified for the job. Before Election Day, it was unclear whether Bolingbrook residents would vote on their feelings for Mr. Trump, or whether they would focus on more local concerns instead. Early voting was brisk, indicating that residents were fired up about the race.
* And the Tribune, which for whatever reason didn’t cover this race until it was over…
Traynere said she called Claar and congratulated him on a good race, but she did not concede.
She pointed to Claar’s thin lead as an indicator that people in Bolingbrook want change.
“I don’t think this town wants him,” she said, adding that if Claar had done such wonderful things for Bolingbrook his lead would be larger.
“David really hurt Goliath,” she said, noting Claar had the benefit of a larger campaign fund.
If he won, the town wants him. And if he outspent her, that’s on her and all the folks who backed her.
Claar apparently did very well with vote by mail, which may be why the Traynere people aren’t predicting victory. He mailed to a wide swath of registered voters and then constantly followed up. Bolingbrook is a nice place to live if you like the suburban experience, so running on that and against the natural fear of change (particularly tax hikes) was a pretty solid formula and helped bring people to the polls who may have otherwise not voted. And it appears to have worked.
Also, I’m told Congressman Dan Lipinksi dispatched a few of his precinct workers to Bolingbrook to help Claar. Some of the same folks who backed Traynere are also coming after him in the Democratic primary.
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* Subscribers know more, including the Team Rauner react and immediate prospects in the Senate…
House Democrats are weighing a plan to rush money to social service providers and universities that have gone months without state funding, with some pushing for a vote this week before legislators leave town for spring break.
As with all things in the Capitol, plans remain fluid. But there’s roughly $750 million set aside in special funds not currently being used that could potentially be tapped, said Rep. Greg Harris, a Chicago Democrat and key budget negotiator. That’s just a fraction of what would normally be spent on higher ed and care for the state’s most vulnerable, but Democrats’ hope is to provide a lifeline amid widespread cuts and layoffs.
“I think we need to do everything that we can to get some money to these folks as soon as we can,” Harris said.
Talks of pushing the plan come as a bipartisan budget proposal in the Senate remains stalled, which Democrats blame on interference by Republican Gov. Bruce Rauner.
Still, Rauner continues to say he’s hopeful the Senate can come up with a broad agreement, and he has generally opposed one-off spending plans.
He may have generally opposed one-off spending plans, but he did two in 2015 and another one last year.
*** UPDATE *** Monique with some deets…
*** UPDATE 2 *** The governor tweets his video response…
He’s claiming the proposal will “force higher debt,” but these things are being funded by special state funds specifically designed for those very same spending purposes.
The proposal is here.
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* There are two distinct tracks currently developing in the Democratic gubernatorial primary. One is for “top underdog” status between Pawar, Biss and, to a lesser extent, Bob Daiber and Kurt Summers if he gets in.
The other developing track is for “acknowledged frontrunner” status between Kennedy and Pritzker. The Summers poll showed Kennedy leading the pack with 44 percent, so he’s a frontrunner, but Pritzker has the big dough. Unlike the other candidates, Kennedy needs to show he can raise the money to directly compete with Pritzker. I’m not sure this shows he can do that yet…
Businessman Chris Kennedy hasn’t released his full contributions for the first quarter, but according to records with the state Board of Elections, he has received at least $145,700. He also has contributed $250,100 to his campaign, which broke the caps.
Kennedy’s campaign on Tuesday said he is attending a fundraiser in New York, hosted by his sister, which is expected to reap $250,000 for his campaign.
Aside from his own contribution, Kennedy has so far reported raising less money this quarter than Pawar or Biss. And with the contribution caps off, you’d think he would be expecting to raise more than $250K at a Kennedy-hosted fundraiser in one of the wealthiest cities on Earth.
First quarters are usually a first-time candidate’s best quarters, but that isn’t happening with Kennedy. Still, there’s a very long way to go with a whole lot of unknowns in front of us and money isn’t everything.
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* Politico…
Turns out an effort has been underway by a segment of the party to recruit state Sen. Sam McCann (R-Plainview) to run against Rauner in a GOP primary. Three sources told us as much, and last night, McCann confirmed to POLITICO he has been approached. Despite Rauner’s financial advantage, a primary from a serious opponent would obviously create a major headache for the governor. Having to defend himself from the conservative wing of the party (I love Trump!) while making himself general election-worthy (I hate Trump!) could prove beyond tricky.
McCann made clear he would not entertain a decision about a gubernatorial run during the legislative session. “I do not intend to think about the concept of running for governor, let alone comment on it, until after May 31st, if at all,” McCann told POLITICO. “There was a significant segment of the party that attempted to recruit me to run as an independent in 2014. I chose not to do that because I wanted to play a role in bringing my party and my beloved state together, not see them both torn apart more than they already were. Fast forward to the present and we see our state more divided and in bigger shambles than ever. It’s heart wrenching,” McCann said.
“I have been casually approached by some within the party about running for governor. I have said to each of them what I will say to you now: I am a patriot. I do not believe it is fitting or proper for anyone of either party to actively and openly campaign for any state office as long as the General Assembly is engaged in its regular spring session. Especially considering the historic times in which we find ourselves,” he said.
HISTORY — You may recall that McCann is a pro-union Republican who went against Rauner and voted for a labor arbitration bill. Rauner and the governor’s political allies heavily targeted McCann in the last primary election, to no avail. McCann is now helping lead the charge against Rauner’s move to privatize nurses in Illinois prisons.
* OK, first of all, McCann is up for reelection next year, so he’d have to give up his seat.
Second, primarying Rauner probably wouldn’t turn out that well for McCann. Remember all the 2016 primary race oppo on his personal finances and the claim that he was Speaker Madigan’s “favorite Senator”? McCann’s voters ignored most of it because they know their guy. He won’t be known statewide so Rauner wouldn’t even have to respond all that much to either the Trump stuff or the social conservative angle (McCann is pro-life).
Third, if labor unions help primary Rauner they could wind up highlighting his moderation on some social issues, which will only help him in the fall. They’ll also give Rauner and his organization a tuneup race and an excuse to blanket the state with ads. But if McCann (or somebody else) sticks to things like the impasse, he could rough Rauner up a bit in advance of the fall campaign.
* But could he win? According to that recent Paul Simon Public Policy Institute poll, Rauner’s job approval rating is 63 percent among Republicans. That’s more than enough to win a primary, of course, but it ain’t great for an incumbent and will hurt him with base turnout in the fall if those numbers don’t improve a lot. There is some room here to bruise him badly in a primary if the poll is accurate and the race is run properly. But a primary is still almost undoubtedly a Kamikaze mission.
*** UPDATE *** Considering the Statehouse’s usual gossip mill, this recent WMAY interview might be where the rumors actually started…
An area Republican lawmaker says he would be willing to support a primary challenger to GOP Governor Bruce Rauner if the right candidate came along.
State Senator Sam McCann made the comment during a live interview with WMAY’s Frank McNeil Monday. […]
McCann says he’s tried to mend fences with the governor, without success…and says the two of them have traveled too far to come back.
And then somebody tells somebody about the radio program and it eventually morphs into Republicans want McCann to run. Or not.
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Question of the day
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Which Democratic gubernatorial candidates do you think will actually file petitions to run for office in December? Explain.
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Today’s deep thought
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* The governor tweeted this out today…
Good point.
* But check out this reply…
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Lawsuit filed over video gaming profit split
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* The plaintiffs are represented by Dan Webb and other Winston & Strawn attorneys. Press release…
The State of Illinois is forcing thousands of small businesses across the state to cough up half of their profits to video gaming operatives - a mandated shakedown that violates the constitutional rights of thousands of bar and restaurant owners.
According to a lawsuit filed Tuesday in Cook County Circuit Court, the state’s Video Gaming Act is written in a way that also deprives those locally-owned businesses of millions of dollars in potential revenues, while shorting the state of much-needed revenues, as well. An analysis of revenue figures shows the law costs local businesses as much as $150 million annually – or nearly $25,000 a year for an average bar or restaurant.
Some of those businesses are now suing the Illinois Gaming Board, stating the law “serves no rational purpose” other than to illegally line the pockets of those who own coin-operated video gaming machines
.
“I can think of no other industry where, by law, a business is forced to give up 50% of their profits and is strictly prohibited from even trying to negotiate better terms,” said attorney Dan K. Webb, of Winston & Strawn, whose firm filed the complaint. “This law is not only unconstitutional, it provides a gravy train of unearned cash for big gaming businesses that make little investment in Illinois.”
Though video gaming existed illegally in Illinois for years, a law to legalize it was passed in 2009 and took effect in 2012. Its purpose was to help small, locally-owned businesses grow. Since then, nearly 6,000 bars, restaurants and cafes have added to their revenues by installing a few gaming machines in their business. Those machines have led to new job creation, more than $3 billion in net revenues and created nearly $1 billion in state and local tax revenues. Last year alone, those establishments added $277 million to state coffers and $55 million more to local governments.
Once those taxes on the machines are paid, local businesses aren’t allowed to keep whatever is left. Instead, by law, they must give up half of those profits to the companies that delivered the machines – an unfair demand, given that the bars, restaurants and cafes are funding the operations and expenses of the business.
Scroll down…
After significant lobbying by the terminal operators, the state mandated in February that nearly all promotional efforts to attract customers to play the games – and increase revenues – be shouldered by those who own the business, even as they are forced to give away 50% of all of their profits to the terminal operators. As an example, the state agreed to implement new rules this year, saying terminal operators aren’t even allowed to help pay for a bag of peanuts as a free give-away to players.
The Liquor Control Board has the same sort of rules for taverns and it’s goofy. One of the few disagreements I ever had with the late Steve Schnorf was the liquor commission rule that tavern owners couldn’t use coasters supplied by distributors. Schnorf was the commission’s chairman for years. The rule is why coasters mostly disappeared from lots of small bars, only to eventually reappear when the video terminal operators started handing them out to the owners. I hate using napkins as coasters, but here we go again.
* Anyway, my petty little complaint aside, the lawsuit is here. A sampling of what bar and restaurant owners are missing out on is here. We’re talking some serious bucks.
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* From the twitters…
* OK, let’s back up to this SJ-R story from last month…
The Illinois Department of Human Services is taking over the former Barney’s Furniture space on South Grand Avenue East in Springfield.
DHS plans to use the space as a downstate, files warehouse. Five employees will work at the building, which will not be open to the public. Barney’s Furniture relocated last year to expanded space at 1987 Wabash Ave. after 41 years at 2410 South Grand Ave. E.
“The employees will be retrieving, sorting and maintaining files on a daily basis,” DHS said in a statement. “Efficiencies include the consolidation of required (record) retention efforts from other facilities, as well as the maintenance required to the current dispersed warehouse locations.”
DHS has signed a five-year lease at a cost of $478,256 annually the first two years, $487,881 for years three and four, and $497,507 for the final year.
The property was valued at $1.1 million, but it was actually purchased from the Barney’s Furniture people for $750,000 and then leased to the state for a total of $2.4 million over five years. As you might imagine, the news has caused quite a stir in Springfield, and Sen. Andy Manar wanted to get to the bottom of it today.
* Under questioning by Manar, DHS Secretary James Dimas told the Senate Appropriations Committee today that his agency needed a place for file storage because it had lost another space in Dwight. CMS put the lease out for bids and this was the lowest one available, he said.
So, why didn’t the state just buy the building? Because without a capital budget, the state couldn’t purchase it, Dimas said. And without legislative authority, it couldn’t move money around to buy it, either.
Another DHS official pointed out that the owners had agreed to add to the building, which would’ve cost the state money even if it could’ve bought the property, which it couldn’t. The owners are also responsible for things like upkeep.
And considering how horribly late the state pays its bills, it probably has to pay a premium price to rent from anyone.
* So, I dunno if there’s a real scandal here, but it’s something that’s hard to explain and the potential “scandal” aspect is very easy to understand. From a recent letter to the editor in the SJ-R…
Why in the name of decency would the state pay over three times the value of the building over five years just to rent it?
How can the state find money to waste so exorbitantly, when they are 18 months behind paying my company, which is a state vendor, providing deeply discounted services to the people?
Shouldn’t the attorney general investigate such flagrant waste?
Something smells rotten here. But even if it is all legitimate, shouldn’t a government agency be charged with cutting wasteful spending, and instead securing a reasonable deal?
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Only one demographic holdout on legalization
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Let’s revisit the crosstabs of the recent Paul Simon Institute poll which found that 66 percent of Illinoisans support legalizing “recreational marijuana if taxed and regulated like alcohol.”
It turns out that every demographic but one supported legalization. Even folks you wouldn’t normally think would be in favor are in support, according to the poll. Conservatives (51 percent), Republicans (52 percent) and those 66 and older (51 percent) all want to legalize it.
* The only demographic to oppose legalization? According to the poll, 52 percent of born again Christians said they were against legalization, but 44 percent supported it and 32 percent strongly supported it.
However, 58 percent of self-identified born again Christians said they favored decriminalization. Just 38 percent were opposed.
We have decrim now. The sky hasn’t fallen. Decriminalization helps consumers, but the distribution networks are controlled by criminals, and some of those criminals are quite violent. So it’s time to take the next step.
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Pawar says he’s raised $325K
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Pawar has already reported $235K in contributions of $1,000 and more, so this appears to show he raised close to $100K in small contributions…
The Ameya Pawar for Governor campaign today announced that more than 1,200 people from across the state donated more than $325,000 and joined the grassroots movement to fight for a New Deal for Illinois. Ameya Pawar, 47th Ward alderman and Democratic candidate for governor issued the following statement:
“These numbers are just one more sign that people are sick and tired of Donald Trump and Bruce Rauner’s agenda and are responding positively to our concrete plans to create jobs, fairly fund our schools, and bring sanity back to the Governor’s office. I knew this race wouldn’t be easy, but I believed in the power of everyday people rising up to demand accountability from our government.
“I’m not a billionaire, and I didn’t start with a million dollar war chest. I don’t have the benefit of having led SuperPACs while entrenched in Springfield politics. But the groundswell of support as we visit people across the state has made it clear that Illinois families are hungry to put a progressive fighter in the Governor’s office.”
Interesting little shot at Daniel Biss for that LIFT PAC of his. Will the two of them go after each other to prove that they’re the “real” progressives in the race? Could be.
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Pritzker readying a formal bid
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Subscribers know more…
* Natasha heard the same rumors as Mary Ann…
Is billionaire businessman J.B. Pritzker closing in on a formal announcement for governor? A couple of top Illinois politicos told us Monday they were picking up signals that he was close to announcing. The Pritzker camp was mum about timing last night.
* He’s been signaling it on his Twitter account lately as well…
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* COGFA takes a look at the state employees group health insurance program…
As of February 28, 2017, the amount of SEGIP claims on hand is $4.2 billion and growing approximately $200 million per month. The current FY 2017 payment cycles are:
- CIGNA claims: 615 days for preferred providers, 692 days for non-preferred (CMS projects 450 days and 525 days for FY 18)
- Managed Care claims: Approximately 12 to 19 months, depending on the provider (CMS projects 17 to 28 months for FY 18)
- Prescription/OAP claims: up to 529 days for Prescriptions, 329-362 days for OAPs (CMS projects 465 days for Prescriptions and up to 480 days for OAPs in FY 18)
- Dental claims: 220 days for network claims, 383 days for non-network claims (CMS projects (250 and 450 days for FY 18)
* More bad news…
In FY 2009, the annual liability per participant in the group health insurance program was $5,893.
According to CMS, the estimated liability per participant for FY 2017 will be $9,453, a large increase. This is in part due to much higher interest payment liabilities projected to total $493 million in FY 2018
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* Tony Arnold at WBEZ…
A downstate transit agency is suing the state for unpaid funds in a case that could have big implications for public transit agencies throughout Illinois.
The River Valley Metro Mass Transit District manages a fleet of buses around Kankakee, including a route from Bourbonnais to Midway Airport in Chicago. Rob Hoffman, managing director of River Valley Metro, said bus service around Kankakee has been suspended on Sundays and holidays to save money during the budget impasse.
River Valley Metro’s is now the latest in a string of lawsuits filed against the state asking the judicial branch to mandate payments even though no full budget has been approved by the legislature and governor. […]
When River Valley Metro filed its lawsuit in late February, the state owed it $1.27 million. Records from the comptroller’s office show River Valley Metro was paid that money on March 23.
But another payment request was filed on March 16, and River Valley Metro is still waiting on $829,278 from the state, according to the comptroller’s office.
The comptroller’s office has been treating the transit district as a hardship case, so they’re pretty much current on their vouchers. As with everything else, this is a triage operation. You hand out enough cash to keep as many vendors alive as you can.
* A set amount of money is supposed to be transferred from the General Revenue Fund (the state’s “checkbook”) to the Downstate Transportation Fund every month. But because the state’s revenues are dwarfed by its expenditures, that hasn’t always happened going back maybe a year. As of today, the comptroller has $79.1 million in pending vouchers for that fund, but the fund only actually contains $264,038.16.
The lawsuit is here. The plaintiffs essentially want the judge to force the state to pay into that transportation fund as required.
But the only way to truly resolve this is with a real budget. And that increasingly looks unlikely.
* For instance, this is from CBS 2…
A top Senate Democrat says the unthinkable is possible: Illinois may go two more years without an agreement on a Budget.
Illinois state Sen. Don Harmon is President Pro Tem of the Senate.
The Democrat from Oak Park notes that the state’s backlog of unpaid bills grows by the day, and state universities and many local service agencies are suffering. But he’s not seeing any real progress to resolving the two-year budget stalemate.
“It is absolutely devastating, but I am trying brace myself and others for that possibility.”
Naturally, he blames Republican Gov. Bruce Rauner, questioning whether really wants a “grand bargain” compromise.
This is the second time in a couple of weeks that Harmon has said this. I checked in with him about it today and he said “I also emphasized that the Senate is ready to negotiate a balanced budget, including spending cuts and revenue, but we need a willing negotiating partner.” Harmon also said they’re working every day to get a budget because going without one would be “unthinkable.”
But the unthinkable could become reality. And that means the day may very well be coming when the comptroller will have to choose which judicial order or consent decree to violate in order to abide by another one.
What. A. Mess.
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* WCIA TV…
Richland Community College is having to cut even more employees.
The Decatur school has taken a big loss over the past couple years, so now they’ve asked staff to sign up to leave early.
Last week, the school announced 18 employees will be out of work by the end of May.
In addition to that, 14 employees decided to take a payment incentive to leave their job.
To put this all in perspective, the school said they’ve had to reduce their staff by 25% over the last two years.
This is all because they’re trying to fill a more than $2 million hole in their budget that used to be filled with the state’s help.
No problem. Decatur’s economy is so robust after two years of this glorious impasse that those folks will easily find other jobs.
Right?
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* From AFSCME Council 31…
The Illinois Supreme Court has denied the Rauner administration’s request to bypass the Fourth District Appellate Court and hear a direct appeal of the state labor board’s ruling on the question of whether AFSCME and the administration were at impasse when Rauner walked away from contract negotiations more than a year ago.
Rauner asked the Supreme Court to remove the case from the appellate level after Fourth District judges refused to allow Rauner to immediately impose his terms, including a 100% hike in employee costs for health care and an end to safeguards against irresponsible privatization schemes.
The appellate court’s refusal to allow Rauner to impose his demands was predicated on what it called a “reasonable likelihood” that AFSCME will prevail on appeal.
“AFSCME members are public service workers who do their jobs every day, protecting kids, keeping us safe, helping veterans and the disabled and much more,” Council 31 Executive Director Roberta Lynch said. “Governor Rauner should stop wasting time and money on costly court fights and instead do his own job, working constructively to find common ground.”
The union’s appeal of the labor board ruling will now be heard in the Fourth District Appellate Court according to the schedule it has established.
The Supreme Court does this often, so it’s not much of a surprise. Click here for the documentation.
*** UPDATE *** From Rauner’s General Counsel Dennis Murashko…
“We have gone as far as we can go in negotiations - and our last, best and final offer is all that our taxpayers can afford. It is therefore regrettable that AFSCME is continuously resisting every attempt for a quick resolution and wants to continue dragging this out in the courts. Every day of delay costs taxpayers over $2 million.”
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McSweeney trolls Rauner on taxes, Trump
Tuesday, Apr 4, 2017 - Posted by Rich Miller
* Rep. McSweeney is kinda like the Republican version of former Democratic Rep. Jack Franks. He speaks his mind, and it’s a populist, anti-tax mind. He proved it again this week during a radio interview…
State Rep. David McSweeney, a conservative who sits on the House Revenue committee, made some direct statements aimed at a fellow Republican — Gov. Bruce Rauner — in a radio interview with Southern Illinois station WJPF and host Tom Miller. McSweeney was discussing the need for Medicaid funding efficiencies when he criticized the governor for skipping a meeting with President Donald Trump on the issue. McSweeney also brought up former Gov. Pat Quinn more than once — calling him one of our worst governors but adding that Republicans were now considering tax increases that Quinn would never dream of and saying that with no budget the state is now spending more than it did when Quinn was governor.
Some highlights: “I don’t understand why the governor didn’t go to the White House for the National Governors Association meeting when they talked about Medicaid. President Trump has wanted to focus on this issue of Medicaid reform and hopefully our governor will get into the game and start talking about cutting spending in this state,” McSweeney said. “We need to be engaged in this. Again, I don’t know why the governor wouldn’t go to the White House dinner with President Trump and actually talk about this issue. 46 governors attended that meeting and I think that it’s very important that we are engaged in a dialogue with President Trump, with the Republicans in Congress because they’re looking to redo the entire Medicaid system … Illinois will be affected … we need to be at the table. That’s why we need to engage with President Trump on this issue.”
On the state budget: “The governor did not propose a balanced budget. We are spending more money right now than we were under Pat Quinn and we don’t have a budget. People need to realize, we are spending $38.5 billion. Under Pat Quinn we were spending $35 billion. What we need to do in this state is we need to cut spending … We should just give the governor a lump sum and allow him to manage the resources. He said he’s willing to do that … he said he would have the ability to manage the money.”
The full audio is here.
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* Cass Herrington at Peoria Public Radio…
Pawar’s policies also include universal childcare, equitable school funding and massive infrastructure projects that he calls “Illinois’ New Deal.” The idea is framed after President Franklin D Roosevelt’s infrastructure projects that followed the Great Depression.
“I know right here in Peoria, there’s about a billion dollars worth of lock and dam work. So, we have an opportunity to not only build out our intermodal facilities, but also do ecological and wildlife restoration and lock and dam work.”
Pawar says that project would put people to work, create jobs downstream and create a “regional hub” for commerce on the Illinois River.
* Related…
* Democratic Candidate for Governor Visits Immigrant Rights Rally in Peoria
* Peoria rally supports immigrants and refugees
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* From the governor’s official Twitter account…
* Script…
Hi, everybody. The time to act is now. We need to make structural changes and pave the way for a balanced budget in Springfield. We proposed a balanced budget, but Speaker Michael Madigan’s Democrat majority has done nothing. Speaker Madigan continues to use stall tactics and refuses to bring real change and relief to the hard-working taxpayers of Illinois.
The General Assembly has been delaying progress for two years now. That’s unacceptable. They need to quit playing political games and help the people of Illinois.
Speaker Madigan’s Democrats are the party of “no.” No to absolutely everything, except for a big tax increase.
But we are not out of options. We can do this if we work together. What we need to do is clear. Freeze property taxes, put term limits in place and redraw our district lines so they benefit voters, not the politicians. We need to improve schools and create jobs. This isn’t rocket science, it’s common sense. We can get this done and we can get it done now. We’re working every single day with all of you on our minds. We want what’s best for you and your families, and we won’t stop until we get it done.
So many things to say, but I’ll keep it brief. He didn’t propose a balanced budget. That’s just objectively false. Madigan, however, has done zero this year, so he’s right about that.
The Senate tried to make some progress, but Rauner deliberately knocked that train off its tracks, so the current predicament is also on him. He’s leading a “party of no” as well.
And political games? He’s the one spending a million dollars on campaign ads right now.
* Just for fun, click here to see the replies to the governor’s video. Lots of harsh stuff, including this one…
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* The people who drafted the stopgap budget last year and the people who passed it didn’t notice that they’d left out funding for domestic violence shelters. The bill was passed so quickly that advocates didn’t notice the omission, either. And, now…
The executive director of The Women’s Center warns that without state funding in the next three months, the agency that provides services to survivors of domestic violence and sexual assault across eight Southern Illinois counties may be forced to shut its doors.
“If we don’t see a budget for FY17 we will be closing,” Cathy McClanahan said Monday. “We see no other option.” The fiscal year 2017 budget ends June 30, and McClanahan said that because the nonprofit agency has not received any state funding since December, it will soon burn through most of its savings and local donations to make payroll and pay overhead costs.
McClanahan said that funding for domestic violence shelters was left out of the fiscal year 2017 partial year budget that the General Assembly passed on June 30.
Therefore, The Women’s Center has not received any state money for its domestic violence shelter since July 1, though it received some federal grant dollars through December. In a typical year, the center receives $494,000 annually through its contract with the Department of Human Services, she said. McClanahan said she is holding out hope that was an oversight legislators will correct. […]
The Women’s Center’s domestic violence shelter in Carbondale houses up to 40 women and their children, she noted.
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* Press release…
Eleven days into Senator Daniel Biss’ gubernatorial campaign, Illinoisans are sending a strong message that they are ready to take their state back from money and the machine.
In this primary, Democrats will have to decide if we keep doing things the same way or demand different results. With $313,861 in contributions to the Biss for Illinois campaign in the first quarter, they are making their voice heard. Biss, who ends the quarter with $1.5 million cash on hand, issued the following statement:
“Ours will never be the billionaires’ campaign - in either who we are or who we fight for. If that’s what you’re looking for, you have plenty of options in this race but I’m not your guy. But, what is certain now is we’ll have the resources we need to build a campaign that wins because of the clear desire and energy for change in our state.
“This primary will be a test of Democrats across Illinois. Do we want to keep doing things the same way, or do we want change? Do we want to emulate Bruce Rauner or provide a Democratic answer that empowers ordinary Illinoisans? Do we want a party and government that is only accessible to the forces of money and the machine, or one that is owned by, and works in the service of, the people? Do we want to flood politics with unlimited contributions or with thousands of people ready to take their state back?
“Based on the early results, we know the answer. I’m energized by the overwhelming grassroots response to our campaign, which sends a clear message that the people of Illinois are ready to take their state back from the forces of money and the machine.”
Biss launched his gubernatorial campaign on March 20th, 2017. After that date, he raised $259,467 for the remainder of the quarter. Last week, Chris Kennedy contributed just over $250,000 to his own campaign, allowing unlimited contributions by anyone in the race. In contrast, nearly 90% of Biss’s donations in that period were for less than $150. The donations came from over 1000 contributors from 116 cities and towns across Illinois.
* Meanwhile, columnist Jim Dey refers to Biss today as Speaker Madigan’s “behind the scenes friend”…
There’s a money trail that leads from Madigan’s campaign treasury to a Biss-operated political action committee.
During the 2016 presidential campaign, Biss led a superPAC — “Leading Illinois for Tomorrow.” […]
The Hill, a Washington, D.C., publication, said Biss “has benefitted from a lot of money from Madigan and those in his orbit.”
The Friends of Michael J. Madigan gave Biss’ PAC $500,000, his daughter’s campaign committee gave Biss $150,000 and a Madigan backer and prominent Democratic donor Fred Eychaner contributed $1.2 million.
Labor unions friendly to Madigan also contributed huge sums — $750,000 from AFSCME alone. Madigan was instrumental in passing legislation aimed at stripping Rauner from his authority to negotiate AFSCME’s current contract, but Rauner vetoes were sustained over Madigan’s vehement objections.
The Federal Election Commission itemized $10.4 million in contributions to Biss’ PAC, much of it raised with Madigan’s direct and indirect assistance.
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