An important point: The unions endorsing Pritzker are private-sector trade unions — unlike some public-sector unions, they tend to be reasonable in their contract demands for wages and benefits. Nearly 20 trade unions struck collective bargaining agreements with Rauner after he took office.
Much of Rauner’s criticism of unions has been aimed at Illinois’ public employee unions, whose demands create great burdens on public finances. Taxpayers are on the hook for these union members’ pay, health care packages and pensions.
Trade union members understand the distinction. Most of them don’t have Cadillac benefits or pensions.
We can’t say what sold the union leaders on Pritzker. We don’t know many of his policy positions. It’s early in the race. Five other Democrats so far say they’re running. Maybe the trade union bosses just think Pritzker can win.
Well, Pritzker did win the support of 14 union leadership teams. We’re not sure their rank-and-file members will agree.
One of Gov. Rauner’s top priorities has been ridding the state of its prevailing wage laws, or at least watering them down. The governor even demanded that prevailing wage language be removed from the Exelon bill last year before he’d agree to sign it. Rauner is no less hostile to the trades than he is to the publics.
* However, going back at least to Ronald Reagan’s 1984 reelection over the heavily union-endorsed Walter Mondale, there’s been a disconnect between union members and their union leaders. So, the Trib is right that these endorsements don’t necessarily guarantee that union members will vote for Pritzker. The goal here, though, is to shove Kennedy out of the race.
* The Question: What do you think Democratic gubernatorial candidates should say and do to win over the hearts and minds of rank and file union members?
Today, the Illinois Senate passed HB40 (33-22), ensuring access to safe and legal abortion in Illinois. The legislation repeals dangerous “trigger” language which states that Illinois would revert back to law criminalizing abortion if the U.S. Supreme Court decision on Roe v. Wade were overturned. With President Donald Trump’s promise to appoint anti-women’s health justices to the Supreme Court, Illinois cannot risk turning back the clock on reproductive rights.
In addition, HB40 removes discriminatory restrictions on Medicaid and state employee health insurance programs by allowing coverage for all pregnancy-related care, including abortion. This legislation respects that every woman should be able to make her own decisions about pregnancy even if she has insurance through state government.
“Every woman – no matter where she lives, how much money she makes, or how she gets her health care coverage – should have access to affordable and comprehensive health care so she can make personal health decisions based on what is best for her and her family,” said Jennifer Welch, President & CEO of Planned Parenthood of Illinois.
HB40 passed the Illinois House in April, and now will be sent to Governor Bruce Rauner for his consideration.
“Governor Rauner should carefully consider what the best policy is for all Illinois women and sign HB 40 into law,” urged Welch. “When it comes to the most important decisions in life, like whether to become a parent, it is vital that a woman is able to consider all the options available to her. It is not the government’s place to interfere with her decision by withholding access to abortion.”
On the other side, Sen. Dale Righter, R-Mattoon, said lawmakers are “scraping and clawing” a budget together. He said saying Illinois can’t afford to spend money it doesn’t have on providing abortions. Righter also contended removing language from Illinois law that says life begins at conception would create other problems, such as trying to prosecute someone who attacks a mother and in kills a unborn child in the process.
State Sen. Jil Tracy, R-Quincy, said it was “ironic” legislators were considering the bill on a day when they were also honoring children who grew up in the state’s foster care system. Many were on hand to shadow lawmakers for the day.
Tracy said she has long opposed abortion, saying she previously had worked as an attorney to place children with families, including those who were the result of incest. She said those children often went on to become productive citizens of society who brought great joy to the families they ended up with, later noting that one of her own daughters is adopted.
“I cannot imagine a world without her,” Tracy said. “So yes, I am a strong advocate for life.”‘
U.S. prosecutors say that a billionaire real estate developer from Macau accused of paying bribes to a former United Nations General Assembly president also gave gifts to former U.S. Representative Jesse Jackson Jr., according to court papers.
In papers filed this week in Manhattan federal court, prosecutors said the developer, Ng Lap Seng, made gifts to a U.S. representative in return for introductions to U.S. officials and business people.
The prosecutors have not claimed that the gifts were illegal or identified the representative by name. But Ng’s lawyers in a motion on Monday said it was Jackson, an eight-term member of the U.S. House of Representatives for Illinois, and the son of civil rights leader Jesse Jackson Sr.
John Collette, a lawyer for Jackson, declined to comment.
The Chicago Sun-Times reported last month that the former Democratic congressman in 2015 was trying to enter into a cooperation deal with Southern District of New York prosecutors after telling them of “potential violations of law by him and others” in an unspecified case, according to a letter obtained by the newspaper.
The new court filing by Seng’s lawyers details prosecutors’ allegations that Seng paid Jackson both before and after Jackson was in Congress — and channeled money through his wife Sandi Jackson as part of a consulting agreement.
According to the May 1 filing, prosecutors were planning to introduce into evidence that “starting in or about 2009, the defendant [Seng] agreed to and did provide gifts and payments, including cash, a watch, theater tickets, hotel rooms, and meals, to a certain United States representative . . . in return for the representative agreeing to introduce the defendant to other United States officials and businesspeople in the United States.
“After the representative left Congress, the defendant agreed to and did continue to make payments to the representative, including by providing cash and directing payments to the representative’s wife, purportedly as part of a consultancy agreement.”
Indiana is a Right-to-Work state – it’s also home to union growth five times greater than neighboring Illinois, where forced-unionism is still the law of the land.
One of the most common criticisms of Right-to-Work laws is that they make it harder for workers to form unions and collectively bargain. But if this is true, then why is union membership growing so much more rapidly in Indiana than in Illinois?
The short answer? Jobs growth and population growth.
Right to Work doesn’t hurt unions – it just gives workers a choice.
* From Frank Manzo at the Illinois Economic Policy Institute…
Rich,
In case a recent Illinois Policy article on “right-to-work” and union membership gets (or has been) sent to your inbox, I have outlined why it is a flawed policy analysis in the article below.
It would be nice to not have to respond to articles with such absurd and baseless conclusions in 2017. But unfortunately, it’s become a small part of my job.
Just wanted to let you know that we had a response.
The movement to implement “right-to-work” (RTW) legislation has accelerated over recent years. Indiana, Michigan, Wisconsin, and West Virginia recently become “right-to-work” states. Missouri and Kentucky followed in 2017. Today, 28 states have “right-to-work” laws.
One of the main policy changes contributing to the decline of unionization across the United States is the ratification of “right-to-work” legislation. From 2015 to 2016, union membership in RTW states declined by over 293,000 members. Union membership declined in 20 of the 26 states (77%) with RTW laws.
Conversely, in fair-share collective bargaining (CB) states, overall union membership improved by about 56,000 members. Union membership declined in only 9 of the 25 CB states (36%)– which includes the District of Columbia– and increased in 16 CB states (64%) over the year.
However, Illinois lost nearly 35,000 members, one of 9 CB states to experience a decline. After netting Illinois out to compare the state to every other state, all other CB states gained approximately 91,000 union members over the year.
The bottom line: “Right to work” does not necessarily increase union membership, economic growth does. And Illinois is in really, really bad economic shape.
* Mark Brown went out to Wheeling to attend the Patrick S. Botterman Leadership Award ceremony. Brown published a column today in tribute to the late campaign guru…
While success in politics is usually measured by winning, Botterman’s signature campaign may be one he lost — managing John Schmidt’s 2002 run against Lisa Madigan for the Democratic nomination for attorney general.
In that contest, House Speaker Mike Madigan moved heaven and earth on his daughter’s behalf, and it took nerve for Botterman to stand his ground in what could have been career suicide.
The standard career path for a young person in Illinois Democratic politics is to work a campaign on behalf of one of Madigan’s candidates for the Illinois House, then parlay that into a job and work their way up through future campaigns.
Many of the political operatives produced in this manner become quite skillful, which is one of the reasons Madigan has survived so long.
The problem from my viewpoint is that all these talented young political workers are then on Madigan’s side of the Democratic Party, which makes it harder for candidates of a more independent bent to succeed.
That’s why there’s something to be said for Wheeling Democrats recognizing good young political talent developed mostly outside the party’s normal channels.
State Comptroller Susana Mendoza on Tuesday told an Illinois Senate committee she was unaware that one of her employees is listed on the city of Chicago’s do-not-hire list. […]
Patrick Haynes is a former 42nd Ward Department of Streets and Sanitation superintendent who resigned in lieu of being discharged on July 30, 2013, according to Haynes’ termination records obtained by the Sun-Times. He’s now employed with the comptroller’s office, listed as “staff administration” and is paid $70,000 a year, according to the comptroller’s website.
Asked about Haynes at one of the Senate’s budgeting committees’ hearings, Mendoza said Haynes “has a great deal of experience working for the City of Chicago, both in the Department of Planning and Development, also as a ward superintendent in the city of Chicago, I believe, for the 42nd Ward which is downtown Chicago.” Mendoza called him “my hire.” […]
State Sen. Chapin Rose, a Rauner ally, asked Mendoza whether she knew Haynes resigned in lieu of discharge.
“He resigned, but I’m not sure what you mean in lieu of discharge. Those are political appointees. I’m not sure you are aware how that works in the City of Chicago,” Mendoza said. “He’s also a former fireman and he is serving as a prevailing wage officer with our department as well. So his credentials are pretty impeccable.” […]
“I think there were some politics involved in that but there’s not a single issue of bad performance that you’ll find with Mr. Haynes,” Mendoza said.
If you click here, you’ll see all the talking points the Republicans used in the hearing. And those talking points didn’t just write themselves.
* From the comptroller’s office…
“Pat Haynes is a highly decorated Chicago Firefighter, serving in the line of duty for 14 years. He also worked for the Department of Planning, generating significant revenue for the City of Chicago. Governor Rauner and his surrogates should be ashamed for attacking a decorated firefighter on this day of all days when we recognize the firefighters who have died in the line of duty. We respect Pat Haynes’ decision to resign as ward superintendent when he found himself caught in a political tussle between an alderman and the mayor’s office.
The Comptroller will not take personnel advice from a governor who clouted 30 patronage hires into his administration from the previous Comptroller’s office and continues to employ: a DCFS director who botched a child neglect investigation in which a little girl died recently on his watch; an agency director who’s spent more than $200,000 of taxpayer money on vanity memberships; and a deputy governor who is getting paid $138,000 a year to hand out saplings at toll way plazas, essentially campaigning on the taxpayers’ dime.”
The fact remains that the guy is on the city’s do not hire list. That’s a problem no matter how he got on it.
* The other problem is that the SGOP questions overshadowed Mendoza’s testimony yesterday…
Presenting her FY 2018 budget proposal Tuesday, Illinois Comptroller Susana Mendoza offered the lowest request for an appropriation level for the Illinois State Comptroller’s Office in 20 years.
“I was troubled when, earlier in the session, we saw agency directors unwilling to identify a single cut to their budgets before your appropriations committee,” Mendoza told members of the State Senate Appropriations II Committee. “I take the idea of shared sacrifice and accountability very seriously. I think it is the responsibility of every agency head, director and manager to identify whatever [General Revenue Fund] savings may exist. We’re prepared to lead that effort with the budget we present today.”
The savings will be accomplished through a combination of headcount management, operational savings, carpooling, stronger travel reimbursement policies and other cost-saving strategies.
* And up later today…
Illinois Comptroller Susana Mendoza will testify before a joint meeting of the House Human Services Committee and the House Human Services Appropriation Committee Wednesday at 2:30 p.m.
The issue is Governor Rauner’s plan to quickly push through a consolidation of the number of Managed Care Organizations handling Illinois Medicaid patients from 12 to 4. Mendoza asks why the largest procurement in the state’s history — $9 billion a year — is being exempted from the state procurement code, meaning it will not be subjected to oversight from an independent procurement officer or the legislature during an unprecedented fiscal crisis for the state. The Governor argues that culling the herd of MCOs will save the state money, but experience in other states suggests giving citizens fewer choices will actually drive up costs. The plan deserves more scrutiny.
Though people often focus on unemployment rates as a measure of economic health, another telling data point is how many people are so discouraged with the job search that they’re dropping out of the labor force altogether.
A newly released survey found good news: Fewer unemployed Americans are giving up looking for work. But that’s not the case in Illinois, where more people seem to be throwing up their hands.
A survey conducted by Harris Poll for Express Employment Professionals, a staffing agency, in March and April found 44 percent of jobless people in Illinois said they had completely given up looking for a job. That’s worse than the 41 percent who said the same last year and the 33 percent who said so in 2015.
Nationally, by contrast, 33 percent of jobless Americans in the recent survey said they’d stopped looking for work, an improvement from 40 percent last year.
“Economic and political factors unique to Illinois may be at play here,” Bob Funk, CEO of the staffing agency, said in a news release. Harris surveyed 1,500 jobless Americans, including 100 in Illinois.
Emphasis added because firm conclusions should never be drawn from a poll of 100 people.
The Illinois AFL-CIO is preparing to endorse J.B. Pritzker for governor, three sources confirmed to POLITICO. It is a major coup for Pritzker, who formally joined the primary race just four-and-a-half weeks ago and is looking to coalesce Democratic support.
Two of the sources pegged the timing of the endorsement within the next month. It follows an all-out effort by Pritzker and supporters to secure the early labor commitment.
Last week, POLITICO first reported that 14 trade unions were lining up behind Pritzker. An endorsement by the AFL-CIO, which represents nearly 900,000 members and has 1,500 affiliates statewide, could present a considerable blow to opponent Chris Kennedy , who has said he hoped to fund his run through a combination of labor money and his own contributions. The sources said Democrats and labor groups who are eager to oust incumbent GOP Gov. Bruce Rauner from office are hoping to stave off a protracted, bruising Democratic primary.
Everybody thought back in December of 2001 that the Illinois AFL-CIO’s endorsement of Rod Blagojevich was early. If this nod does happen within the next month it would be without any precedent in a gubernatorial race.
* From Illinois AFL-CIO President Mike Carrigan…
“The Illinois AFL-CIO has made no decisions concerning endorsements in the Democratic Primary Election for Governor.
“While defeating Gov. Bruce Rauner – one of the most anti-worker governors in the country – is the top priority for 2018, the Illinois AFL-CIO has a process for vetting candidates that we are working through, including face-to-face meetings with candidates and issue surveys.
“Until there is widespread and significant support for one particular candidate across the diverse labor movement, we will continue to focus our work communicating with union households about Rauner’s attacks on union members and his destruction of the state by refusing to compromise on a budget solution.”
Despite this, it’s pretty obvious to everyone where this is headed.
* Things might get a little awkward for Kennedy tonight…
Chris Kennedy will give the keynote at the Irish-American Labor Council (IALC) annual James Connolly dinner. IALC is a committee of the AFL-CIO, committed to improving and promoting social and community welfare in Chicago. The IALC is comprised of international unions, district councils, local labor unions, and business organizations throughout the Chicagoland area. Chris will be honored at the event along with John Manley.
* And this is one reason why organized labor is pushing Pritzker…
A source tells NBC 5 that Democrat JB Pritzker is spending $1.5 million for two weeks as his introductory TV ad called “Think Big” saturates TV markets across the state. As one Democratic strategist noted, “if he keeps this pace, he will spend $50 million on TV alone.”
That same source said the billionaire businessman has told others that “he’s prepared to spend $70 million on the primary alone.”
Compare that to 2014, when then-GOP candidate Bruce Rauner spent what was a record-breaking $65.3 million on his entire campaign – both the primary and the general elections.
Lots of unconfirmed rumors have Pritzker’s general election budget at $150 million. Whatever the case, it’s clear that Pritzker can fund himself, help out the rest of the ticket, and take the pressure off labor leaders to drain their unions’ bank accounts. Kennedy simply can’t make the same case.
“Just about everything [Gov. Bruce Rauner] does is poll-driven. They do multiple polls. They’re polling all of the time. And they predicate government decision-making almost exclusively on the polls.
“So, it’s easy to say ‘Let’s freeze the taxes across the board.’ It’s better to say ‘Let’s give some targeted real estate tax relief to people that really need it, without hurting school districts like Chicago. ”
There’s no doubt that Gov. Rauner relies heavily on polling. His people are in the field a lot. They won’t support reinstating a tax on food and beverages precisely because of that polling data (something like 75 percent of Illinoisans disapprove).
* But this criticism of Rauner comes from a man who has always carefully positioned all of his more politically vulnerable members with poll-friendly legislation. He regularly forces multiple roll calls on bills designed to put Republicans in a bad political light. This is no poll-averse dude, by any means.
Not to mention that Madigan’s House passed a permanent property tax freeze bill last year. And it wasn’t “targeted” at all. Why? Simple. It polls off the charts.
* Finke has a story today about House Majority Leader Barbara Flynn Currie’s new pension bill…
A major component of the bill is to incorporate a plan put forward by Cullerton, D-Chicago, and also embraced by Republican Gov. Bruce Rauner. It would require those covered by the state-funded pension systems to make a choice: either continue to have future pay increases count toward their pensions and give up the automatic 3 percent compounded raises in their retirement benefits or keep the pension raises, but give up having future pay increases count toward retirement.
The idea is to work around the 2015 state Supreme Court ruling that lawmakers couldn’t unilaterally impose changes on pension benefits after someone signed up for them. The concept is to offer workers something in exchange. […]
Currie’s bill also would create an option for members of the pension systems to take a lump-sum buyout of their pension benefits. Various ideas for this have been floated the last two years but have never come to a vote in the House. Limitations have been part of those plans, such as not allowing people to cash in all of their state benefits and placing limits on the number of people who could participate each year.
In addition, Currie’s legislation requires that a 401(k)-style defined-contribution program be set up for some people in the pension systems, and it provides $215 million to help pay for Chicago teacher pensions. The bill also closes the General Assembly Retirement System to new members after a certain date.
*** UPDATE *** From House Republican Leader Jim Durkin…
“Apparently, House Democrats have come to the realization that pension reform is desperately needed in this state, bravo! So upon learning that they have filed language identical to the House Republican pension reform plan, House Bill 4027, introduced in March, we simply remind them that we are prepared to offer 26 votes, which is our pro-rata share of votes, to support a structured roll call on this issue. It is now up to the Speaker to determine whether or not he is serious about pension reform by providing the 34 votes necessary for passage or if this is just another typical end of session game,” said Durkin.
Wednesday, May 10, 2017 - Posted by Advertising Department
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In a recent interview with WGN Radio, Michael Reever of the Chicagoland Chamber of Commerce voiced the chamber’s opposition to HB 2774 & SB 1502:
“It’s going to actually require companies to maintain more information than is otherwise required and maintain that information in a more identifiable way, so now you as a person are linked with this information. If it gets breached, your information is now identifiable to you…”
“It’s not only about big businesses who have in some ways the financial resources and capabilities to actually fulfill the law, but it’s the small and medium sized businesses that are not going to have the in-house attorney or in-house IT person to do this…”
We also understand that Rauner walked into a bad situation, and his only aim has been to do his darnedest to set our state right. Long before Rauner arrived in Springfield, Illinois was struggling with a weak economy, alarmingly underfunded pensions, a backlog of bills and a political dynamic that for too long has put one Chicago pol, House Speaker Mike Madigan, at the center of every major decision.
We’re just saying that passing a budget matters a whole lot more. If that was not obvious to Rauner in 2015, or even a year ago, it should be now.
Whatever pro-business gains Illinois might have made by reforming workers’ comp law, for example, have been overwhelmed by the damage done to our state’s public universities by the lack of a state budget since 2014.
Good point.
Gov. Rauner keeps saying that his reforms will spark an economic boom. It’s hard to see how that will happen considering the limited economic reforms that are on the table right now compared to the tax hikes and the cuts required to balance the budget.
But I will make one point in the governor’s favor. He is prepared to sign one of the largest tax hikes in Illinois history, if not the largest ever increase. He ought to get something for doing that.
* As I told subscribers early this morning, Senate President Cullerton is pushing for a grand bargain vote today as early as noon. But efforts were underway to either prevent this vote from happening or to push the two sides closer together. So, stay tuned…
Meanwhile, senators worked behind the scenes Tuesday to try to find an agreement on a sweeping budget package that could be called for a vote this week. Efforts have focused on incorporating ideas backed by Republicans after the GOP dropped support for the legislation amid concerns from Rauner’s office that it was asking too much from taxpayers. […]
But one top Senate Democrat noted “significant barriers” remain, saying Rauner is pushing a property tax freeze that is “politically popular” but “bad policy” because it would harm local governments and schools that rely on the money the levies generate.
“We’re just not prepared to make those sorts of trades to do what we should all be doing, which is passing a budget,” said Sen. Don Harmon, D-Oak Park.
While Republican leader Radogno said good-faith negotiations were continuing, they tried to slow a push for a vote this week, saying more time was needed to hammer out an agreement.
* Radogno’s office released these statements late yesterday afternoon…
Senate Republican Leader Christine Radogno:
“Our talks are continuing. There are sincere good faith negotiations underway in the Senate on FY18 budget specifics and reforms critical to Illinois’ economy. Time is of the essence, but the devil is always in the details and the minutiae of complicated proposals. We are working through those now in an effort to advance the legislation as soon as possible.”
Deputy Senate Republican Leader Bill Brady:
“We’ve had serious daily conversations – many times several meetings a day. But our work is not complete. Given time, I think we can get there.”
Assistant Senate Republican Leader Chapin Rose:
“These are not easy discussions. But they are necessary in order to present a balanced budget to the Senate for consideration. We need to keep working. We should not proceed until we have an agreement.”
The Chicago Public Schools actually need $596 million to keep schools open the rest of the school year, and not just the $129 million officials have publicly discussed, a top aide to Mayor Rahm Emanuel said Tuesday.
The larger figure takes into account delays in receiving block grants from the state, according to Carole Brown, Emanuel’s chief financial officer.
A spokesman for Illinois Comptroller Susana Mendoza said it is unlikely CPS will get that grant money before June 30. The state is six months behind on payments because of the budget impasse in Springfield.
The governor’s office responded with a statement saying that “CPS’ crisis is not due to the budget impasse, it’s due to decades of fiscal mismanagement. Any outstanding payments from the state lie with Comptroller Mendoza, and can be processed when her office chooses.” CPS, though, said the governor’s office only has approved $300 million of the $467 million in payments due to CPS.
“Like the check bouncer who yells at his bank for bouncing a check from an account he himself emptied, the Governor disingenuously blames the Comptroller for not writing checks from state coffers that Governor Rauner emptied by failing his constitutional duty to propose a balanced budget,” Pallasch said.
Mendoza could probably make that CPS grant payment, but only if she does something like temporarily skip at least part of the next state pension payment (comptrollers have done this from time to time - but that money eventually has to be paid). And Downstate and suburban schools would probably be upset if she does because they’re also not getting their grant money. As we discussed last month, Illinois schools are owed about a billion dollars in grant cash because of the impasse.
As of Tuesday, the teachers pension fund said CPS owed it about $716 million. The fund said it expects CPS to pay about $470 million of that tab by June 30, with the rest payable after a quarter-billion dollars in revenue arrives later in the summer from a new property tax devoted to teacher pensions.
Burbridge said the pension fund’s outlook changes if the city falls short on its payments for less predictable reasons, such as a lack of state aid.
* It’s so late in the school year that raising taxes wouldn’t bring much money into the CPS coffers. And any cuts made this late would have to be several times larger than they would’ve been had they been made at the start of the fiscal year because there is so little time left…
Other possibilities include: taking a “bridge” loan from tax-increment financing districts that might never be repaid; another round of borrowing; more cuts of school support staff; delayed payments to CPS vendors; and a request to the Chicago Teachers Pension Fund to delay part of the $721 million payment that’s due June 30.
A 60-day delay on the pension payment would solve some of the cash-flow issues since tax revenue typically rolls in by August.
* If Mendoza won’t delay state pension payments to help out CPS, then CPS might have to delay its own payment. The ratings agencies will certainly be furious, but the district already has junk bond status…
Brown on Tuesday acknowledged officials have discussed withholding the pension payment as they test ideas with bond rating agencies to see which would do the least additional harm to the district and the city’s already low bond ratings.
“It’s an option that we’ve talked about, but it’s not an option that anybody’s concluded is something that’s viable, or an option that anyone’s concluded is the preferred course of action,” she told the Tribune.
On Wednesday, Emanuel was asked why he waited so long to reveal the magnitude of the problem from aldermen whose support he needs for a financial rescue that could put the city’s own shaky finances at risk.
“The bills kept climbing and growing and, in every aspect, they said they were gonna get current with it. … The state of Illinois is the largest deadbeat in the state of Illinois,” the mayor said.
“We’ve never shied away from doing what we need to do. And we paid our bills on time. … I will meet the challenge. We will work together and work through this issue. [But] it is adding insult to injury not only to be dead last in funding education, but then to be behind on your payments so dramatically that you’re affecting the ability of us to keep moving forward academically.”
After canceling two closed-door briefings with aldermen, Emanuel shed no new light on the rescue plan. He would only reiterate Brown’s statement that “everything is on the table” and that, even another tax increase or reinstating the head tax he proudly eliminated has not been ruled out.
* I told subscribers about this letter earlier today…
A bipartisan group of 30 Illinois House members on Tuesday threw their support behind efforts in the Senate to craft a bill package aimed at ending the state’s historic budget impasse.
“We ask the senators from both parties to pass the best negotiated package they can, and then we will take up their work in the House,” the group said in a statement.
The package, which includes tax hikes, pension changes and a local property tax freeze, stalled in the Democratic-led Senate in March, when most Republicans withdrew their support.
John Patterson, a spokesman for Senate President John Cullerton, said on Tuesday both sides are “trading ideas in trying to find agreement.”
That’s a positive. House members have been mostly silent on the Senate’s work until now. But 17 Democrats and 13 Republicans signed on to this letter. An excerpt…
We believe a solution that can pass the House and Senate and be signed by the Governor needs to include a package of bills that fundamentally addresses the needs of the state, and most importantly provides a normal, full-year budget for our state agencies, schools, and social service providers.
Let’s be clear; we aren’t looking at a simple all or nothing vote on a package sent from the Senate. We understand that a package sent from the Senate will not be complete or perfect, and it will change. Our legislative process allows hearings and amendments from both chambers, and we think that’s the best way to negotiate a deal that serves our constituents and the state as a whole.
Keep in mind that the letter came out hours after Speaker Madigan appointed four of his top members to negotiate with Rauner. The rank-and-file signers don’t appear to want that, however. Instead, they want to take up the Senate’s package and go from there.
* Meanwhile, some rank-and-file House Republicans prefer to focus on process arguments…
According to State Representative David S. Olsen (R-Downers Grove), nothing is more important in Springfield right now than the adoption of a full and balanced budget. To that end, this week the freshman lawmaker signed on as a co-sponsor of three pieces of legislation that provide revenue estimates that can be used as the starting point for the creation of a full budget.
“The implementation of a budget is a multi-step process, and step one involves lawmakers coming to agreement on a revenue estimate,” said Olsen. “The Illinois Constitution is clear; the responsibility for crafting and adopting a budget rests solely with the General Assembly. That process begins with the approval of a revenue estimate that tells us how much money we have to spend.”
I happen to like Olsen, but it’s silly to say that this is the GA’s sole responsibility. Also, we won’t know what revenue levels to estimate until they agree on the taxes they’re going to raise.
State Rep. Avery Bourne today released the following statement on school funding reform upon the House’s return to Springfield for the final month of the spring legislative session:
“For years, multiple legislative commissions and committees have studied the obvious inequities of Illinois’ school funding system. As it stands now, Illinois has the most inequitable school funding system in the nation. That means students are essentially forced to play a zip code lottery that will determine whether they learn in classrooms equipped with an iPad per student or one where students share decades old textbooks. This is a challenge we need to tackle as the legislature, and there is bipartisan agreement that it must happen soon. […]
“There have been countless hours spent in the last year around this bipartisan solution to our school funding problem. We cannot, however, take our eyes off of the goal. Our goal is a system that works for every student in this state. Getting this crucial reform passed is within sight. However, as often happens - this is when special deals are added or fairness is tossed out the window in exchange for what is politically expedient.
“When talking about state policies, I hear often from constituents that the money flows straight to Chicago while the rest of Illinois is forgotten about. We cannot let this happen again. The children of Illinois are too important. Understand though, I agree - the children of Chicago deserve a high quality education. Many of them are not afforded that opportunity under the current system. However, the children outside of Chicago, in central and southern Illinois deserve the opportunity to get a great education too.
The House Democrats have been working on a school funding reform bill, but haven’t yet convinced any Republicans to sign on. Gov. Rauner won’t go along with giving more money to Chicago’s schools without his pension reform deal, so this seems like a preemptive strike on Rauner’s behalf by Rep. Bourne.
*** UPDATE *** Remember that these are Sen. Bill Brady’s proposals. The Senate Democrats have yet to sign off on them. Greg Hinz…
Brady calls the plan “five for five”: The core is $5 billion in tax increases for what Brady says are $5 billion in spending cuts. […]
On the other side of the ledger, total spending would be capped at roughly $36 billion for each of the next five years.
To get to that figure, Brady would trim $435 million a year from employee group health insurance, save $700 million a year via accounting changes in the state’s pension systems and save another $500 million a year on pensions by moving new workers to 401(k)-style defined contribution plans.
Higher education would get a 15 percent across-the-board reduction, and most other programs outside of grade and high school support a 5 percent cut. Local units of government also would see a reduction in the the cut of state income taxes they now receive.
“This state needs a champion that’s going to stand up for our kids, that’s going to stand up for creating job, that’s going to fund education and stand up for health care,” he said.
Heather and Jackie have heard those promises before.
“Bruce Rauner said the same thing and we still have no budget yet,” said Grissom.
They say they want someone who’s going to fight for Southern Illinois.
Ortiz: I’d be remiss to not ask you about the rest of the Democratic field. Obviously there are some who see you and J.B. Pritzker and they’re a little concerned about all the money in politics these days in general. What do you say to those people who have those concerns about all this money being thrown around?
Kennedy: I think they should be concerned. You look what’s happening to the Republican Party in the state. It’s a disaster. What Gov. Rauner has done to our economy, what he’s done to the million people who he’s thrown out of the government programs, that’s unforgivable. But what he’s done to the Republican Party is shameful, the party of Lincoln. There is no one left who will speak up for the future of that party, who will offer any form of dissent. He’s bullied his own state reps with his money. He’s scared his own state senators with his wealth. He, his wife, and three friends supplied maybe 80 percent or more of the funding for state reps, state senators and constitutional officers in the last election. No one can afford to take the risk and object to anything that he’s done. We can’t let that happen to the Democratic Party. That’s wrong. We can’t say to our people, you know, let’s find another billionaire. Let’s find someone to fight our fights so that we don’t have to and make him our kind. If we do that, if we’re not willing to make the sacrifices to win an election, sacrifices such as taking time to go door-to-door, signing a petition, giving five or 10 or 15 dollars to a candidate, if we’re not willing to do that, we don’t deserve the freedom that comes with being an American.
Illinois owes a group of women whose police officer and firefighter husbands died in the line of duty more than $351,000 apiece for their losses, but the state’s chronic inability to pass a budget has left all of them unpaid like thousands of state vendors.
The widows’ plight in a state with a $12.7 billion unpaid bill backlog represents yet another frustrating byproduct of lllinois’ 22-month budget stalemate, a span of fiscal ineptitude unmatched by any other U.S. state.
Illinois has limped along without a full operating budget during that time because the state’s Democratic-led legislature and Republican Governor Bruce Rauner have clashed over a list of nonbudgetary demands he has insisted be part of any budget deal.
All told, seven Illinois women have been waiting as long as a year for their shares of more than $2.7 million in awards and interest owed under the state’s Line of Duty Compensation Act, which mandates one-time payments and burial reimbursements to the families of fallen first responders.
The pending allotments are part of a $45 million pile of unpaid awards through the Illinois Court of Claims, a body that adjudicates litigation directed at the state and approves line-of-duty awards. That overall amount also includes unpaid awards owed to a group of exonerated, wrongfully imprisoned ex-inmates and others who sustained injuries on state roads or in state facilities.
Students, faculty and staff gathered at Illinois Valley Community College on Monday to assure their voices were heard by legislators.
State Rep. Jerry Long, R-Streator, was the sole legislator in attendance at a legislators forum created for college officials and students to share concerns about higher education funding during the ongoing budget impasse. All of the 14 legislators in IVCC’s district as well as Gov. Bruce Rauner were invited to the event. […]
The college used to expect around $3 to $4 million from the state, but that amount fell to $611,000 in 2016. This leads to the college requiring more from students and taxpayers. […]
“I guarantee you I will fight tooth and nail to make sure we have the general fund that you need and also the MAP grants,” Long said. “Those are extremely important and I make you the promise that I will do what I can to fight for that.” […]
The representative said he was dedicated to finding funding for the school, but also said a stopgap budget would only “keep digging a hole” that would make the future financial situation even more difficult for the state.
Good on Long for being the only legislator to show up, but he’s a Tier One freshman target in a district that’s been represented by a Democrat since about forever. The Democrats already have a candidate against him. So, while he may “fight tooth and nail” for more state revenues, I’ll be the most surprised human in the world if he votes for a tax hike (or the second most, after Leader Durkin).
Also, the House’s stopgap isn’t really a stopgap. It’s a supplemental approp that spends money which is just sitting in two state accounts gathering dust. Even if they wait until they get a real budget to spend the money, it’s pretty much guaranteed that the cash will be used for its intended purposes anyway. So, why wait?
Cuts and deferred maintenance at Northern Illinois University will be necessary to keep reserves adequate, President Doug Baker said.
Without a state budget, Baker has said the university is facing a projected $35 million funding gap, and must prepare for a worst-case scenario until the next fiscal year – lack of funding and no Monetary Award Program grants, which about 5,000 students rely on.
Baker said in an email April 28 that to offset lack of funding, spending reductions must be made – including cuts. He added that attrition will not be enough to support the burden of personnel costs, and some staff members have been notified about how their employment may be affected, while others will hear about the status of their jobs this month.
Baker said other keys to closing the gap will be increased support from donors and other revenue generators.
* Hmm. But maybe spending $685 an hour for a total so far of $189K to defend the president during an OEIG probe might be looked at…
NIU has paid thousands of dollars in legal fees to outside counsel for President Doug Baker as a result of an Office of Executive Inspector General investigation.
The OEIG, a state agency that investigates allegations of misconduct, received a complaint about Baker’s administration and subsequently began an investigation. Because the agency does not generally comment on investigations, it is unclear when the complaint was made, though correspondence obtained on April 17 from NIU through a Freedom of Information Act request by the Northern Star shows that outside counsel for an OEIG investigation was retained on Feb. 20, 2015.
The nature of the investigation is unclear. There has only been one OEIG investigation that Baker is aware of, and he is not sure if it is ongoing or not. Lisa Miner, senior director of institutional communications, also confirmed that there was only one OEIG investigation into Baker and his administration.
There is also an ongoing civil lawsuit filed by former Controller Keith Jackson against NIU, the Board of Trustees, President Doug Baker and Nancy Suttenfield, former interim chief financial officer.
While lawmakers in Springfield struggle to agree upon a full budget for the third consecutive year and NIU employees are in danger of losing their jobs, a four-month $468,050.39 investigation conducted in 2014 provided only an oral report of recommendations for improved reliability of financial reporting and compliance with laws, regulations and policies.
This investigation into internal control seems to be referenced in a Dec. 22 Baker Report. Investigations concluded that in 2013 and 2014 there were “weaknesses in internal controls, some limited compliance violations, and lack of clarity of policies across multiple units,” according to the report.
The investigation was completed by the forensic audit firm Alvarez & Marsal, the same firm that former NIU Controller Keith Jackson’s lawsuit against NIU, the Board of Trustees, President Doug Baker and Nancy Suttenfield, former interim chief financial officer, alleges was hired to “dredge for evidence of wrongdoing” committed by Jackson and other individuals Baker and Suttenfield had targeted for termination.
* And check out this reasoning for stopping work on a program that’s supposed to, in part, find ways to save money…
“Between [Fiscal Year 2018] budget development on our campus, Springfield and an incredibly large number of ridiculous, I’ll say, legislative requests that we’ve had to respond to, we’ve just not have not had the human resources to devote to doing the assessment of Program Prioritization at the level we really want to communicate it,” Freeman said. “This is not an attempt to be opaque.”
“It’s almost like they’ve completely abdicated any responsibility on this issue,” said Deborah Hersman, CEO of the National Safety Council, an Itasca-based nonprofit.
Hersman said the drop in enforcement in Chicago is part of a national trend of police issuing fewer tickets for traffic violations, even as the number of traffic fatalities has jumped 14 percent nationwide in the past two years. But Hersman said she has seen nothing like the enforcement drop in Chicago anywhere else in the country.
Chicago police spokesman Anthony Guglielmi said that in 2015, Chicago police amended its cellphone citation policy to conform to a change in state law that mandated that cellphone violations follow the same process as other traffic violations. This means they would have to go to traffic court and require the presence of the citing officer to be upheld, requiring more police time. Previously, the municipal citations could be upheld before an administrative law judge without the citing officer being present. […]
Illinois State Police also reported a drop in enforcement of the state distracted driving law. Tickets dropped from 11,282 in 2014 to 8,229 in 2016, a 27 percent decline, said Illinois State Police Master Sgt. Mike Link. The downward trend continued this year, with just 2,502 tickets issued as of May 3.
The Illinois Senate has helped move state farmers one step closer to a return to production of industrial hemp, unanimously approving legislation sponsored by Sen. Toi Hutchinson, whose district includes parts of Kankakee, Will, Grundy and Cook counties.
Hemp was a key American farm crop, primarily its fiber to produce rope and cloth, from the founding of the nation until it was banned in the 20th century war on marijuana.
Its production was legalized during World War II, after the war in the Pacific cut off supplies of jute and other fiber plants for production of rope and other products vital to the war effort. It was banned again in 1957.
The legislation, Senate Bill 1294, now goes to the House, where approval is expected, the Illinois Stewardship Alliance, an agricultural group, announced Monday.
Statewide, 14 gun stores were burglarized last year, with a total of 280 guns stolen, according to ATF figures. That was up from five such burglaries in 2015 and three the year before that.
Richard Pearson, executive director of the Illinois State Rifle Association, says gun stores across Illinois already are beefing up security in response to the rise in burglaries.
“The gangs are becoming bolder because not much happens to them,” Pearson says. “I think everyone is upgrading their security.”
But he says subjecting gun stores to state requirements for security is a bad idea: “Whenever you get the state involved, you add costs for everyone, with no results.”
A couple proposals before the state Legislature would cut some slack for those who run afoul of the law early in life and those who already have spent time in prison and are heading toward senior citizen status.
State Sen. Michael Hastings, a Tinley Park Democrat who chairs the Senate’s criminal law committee, said he will take up a plan this week that was shepherded through the House by state Rep. Elaine Nekritz, a Northbrook Democrat, to broaden the expungement of nonviolent juvenile records, bringing Illinois up to par with American Bar Association guidelines. […]
In the 10-year span from 2004 to 2014, an overwhelming majority — 87 percent — of Illinois counties averaged less than one expungement of a juvenile record per year.
If you’re a juvenile child molester, arsonist, murderer or violent offender, Hastings said, your criminal record will remain on the books, but if you got into trouble for drinking or drugs or petty theft as a minor, your interaction with the law should be sealed and can be automatically erased after a certain period of time.
Comments from one of Gov. Bruce Rauner’s agency directors have one state lawmaker concerned that the recent progress to reduce the state’s prison population could suddenly be undone.
“Forgive me for being suspicious, but we’ve got a governor saying he wants to reduce the prison population while at the same time his prison director is holding onto empty prisons just in case they’re needed? Something doesn’t add up,” said State Senator Mattie Hunter, a Chicago Democrat.
Hunter’s comments came in response to recent testimony from Illinois Department of Corrections Acting Director John Baldwin before a key Senate budgeting committee. Senator Hunter, a member of that committee, asked what the Department of Corrections’ plans were for unused prisons in Dwight and Tamms that once combined to house more than 1,000 inmates but have been shuttered for nearly four years.
With the prison agency seeking a funding increase in the next budget, Hunter suggested selling the property so the state could make some money in the midst of a budget crisis.
Acting Director Baldwin said there are no plans to sell off the prisons.
“You never know when you’re going to all of a sudden need it,” Baldwin said.
That set off warning bells for Hunter.
“When you have President Trump talking about the National Guard rounding up people in Chicago, I’m on high alert for the rights of our people,” Hunter said after the hearing.
Up until now, the Rauner administration has worked with lawmakers to cut the prison population. Rauner came into office vowing to reduce the inmate population by 25 percent. Hunter, also a member of the Illinois Legislative Black Caucus, shared that goal, concerned that too many productive lives are being lost in prisons.
Adding to Hunter’s concerns was that Rauner-backed Republicans recent opposition to a Senate plan that would have reduced prison sentences for non-violent offenses. The general idea was to reduce prison costs by focusing available prison space for longer sentences for violent, gun-related crimes. The idea grew out of a task force the governor created.
But that provision was doomed in the Senate after Republicans backed out.
That turnabout, combined with the prison director’s desire to hold onto surplus prison space, has Hunter worried there’s a dramatic shift in direction within the Rauner administration on criminal justice policies.
“Those prisons were built for one thing: to be prisons. They’ve been closed for years. The Rauner administration should pursue ideas for selling off the land or tell the public what’s really going on,” Hunter said.
* IDOC’s response…
It is a stretch for Senator Hunter to insinuate that Governor Rauner’s efforts to reduce the prison population are disingenuous. The reality is, the prison population is down approximately 11% since Governor Rauner took office. This administration has worked diligently to restore real second chance opportunities for people who return to society – such as giving former offenders the ability to get professional licenses.
As opposed to selling several shuttered facilities, the Department of Corrections has repurposed them in recent years – the former IYC Joliet will be used to treat offenders who are on the mental health caseload; the former IYC in Kewanee is now being used as a Life Skills Re-Entry Center, where offenders are learning skills that will be critical to their success upon release; and the former IYC in Murphysboro, which will also be a Life Skills Re-Entry Center.
So, Director Baldwin is right in saying you never know when the Department may need to utilize a vacant building – and that in no way means for the purpose of rounding people up for incarceration.
A hearing officer has recommended former state Rep. Frank Mautino’s campaign committee be fined for “willfully” violating the state elections board’s order to provide it with more information on spending.
Hearing Officer Philip Krasny released his 18-page report Friday, saying Mautino, now the state’s auditor general, failed to amend his reports in response to a Board of Elections request in May 2016. […]
In its May 2016 order, the board asked Mautino, who chairs the committee, to accurately break down expenditures for gas and car repairs at Happy’s Super Service in Spring Valley, identify the actual recipients of each itemized expenditure made to the gas station and identify the specific purposes of any expenditures made to Spring Valley City Bank.
Krasny said his report was limited to the board’s request to determine whether Mautino willfully violated the May 2016 order.
Go read the whole thing. Mautino’s lawyers used some pretty tortured logic to explain why Mautino couldn’t amend his filing.
Madigan spokesman Steve Brown denied those [GOP] claims, saying the speaker’s offer is an effort to “move along.”
“All we did today was appoint senior leaders of our caucus to go work with the governor on the off-budget issues. We have [state Rep.] Greg Harris, a whole team working on an FY [fiscal year] appropriation proposal and these other people kind of take the governor’s off-budget issues. It’s trying to recognize the calendar and move along.”
Brown said House Democrats are “recognizing what has transpired” with “grand bargain” talks — alluding to the package’s plug having been pulled in March. […]
[House Majority Leader Barbara Flynn Currie] said no reform items are “off limits.”
“It’s up to the governor to define those. His agenda does seem to change from time to time, and I’m not ever sure what’s on it today, but our point is he seems to have off-budget issues. We are happy to meet with him and try to figure out how to resolve those issues.”
* Former Gov. Pat Quinn didn’t hold a press conference after unveiling his official portrait yesterday, but the Tribune was able to get a moment of his time to ask him about the IDOT hiring investigation…
The portrait unveiling came weeks after a report from a court-appointed watchdog charged with looking into patronage hiring at the Illinois Department of Transportation detailed how top Democrats clouted relatives and friends into positions during Quinn’s administration.
“As governor, I had nothing to do with hiring. I told all staff that the only thing we should deal with is double exempt jobs and that was the rule,” Quinn told the Tribune in an interview. Quinn repeated that he “took action” once learning about the improper hiring from the state’s ethics watchdog by replacing the head of IDOT.
* Republican Jeremy Wynes launched his congressional campaign today against 10th District incumbent Democrat Brad Schneider. He’s hired two consultants connected to Gov. Bruce Rauner: Mike Schrimpf and Chip Englander.
Press release…
Jeremy Wynes today launched a campaign to bring new leadership and fresh ideas to Congress for the people of Illinois’ 10th District.
It’s clear that Jeremy has the right background and vision to bring bipartisan balance back to the district. Last year, incumbent Brad Schneider was one of the most underperforming Democrats in the country, running nearly 10 points behind the top of the ticket. Additionally, a Republican has won Illinois-10 in every mid-term election since 1978, and the district has changed political parties every election since post-2010 redistricting. In 2018, Illinois-10 is poised to again show its independence by rejecting Brad Schneider’s partisan politics in favor of the bipartisan leadership exhibited by Jeremy Wynes.
About Jeremy:
Jeremy understands what it means to take risks and sacrifice to set the foundation for the next generation’s success. He grew up in Illinois learning the meaning of hard work and understanding the value of a dollar. His father ran the family’s farm and worked as a laborer to help make ends meet. His mother has worked three decades as a pre-school teacher.
When he wasn’t busy captaining his high school football and basketball teams, Jeremy spent his youth on the farm and working a variety of jobs to help his family. During the summers, he worked in his father’s small pool installation business and roofed houses and barns for neighboring farmers. During the winters, he helped his uncles chop and deliver firewood to local homeowners.
He took out student loans and worked his way through Illinois State University. In 2002, Jeremy became the first in his family to graduate from college with a four-year degree. Originally intending to pursue a career in law enforcement, Jeremy was inspired by an internship at the public defender’s office to attend DePaul University College of Law, where he graduated with a J.D. in 2006.
After two years in private legal practice, Jeremy began his public-policy career as a director in the Chicago office of the American Israel Public Affairs Committee (AIPAC), an internationally-respected advocacy organization dedicated to the bipartisan pursuit of a strong relationship between our country and our ally Israel.
Jeremy spent 7 years traveling across Illinois and other Midwestern states advising and working with both Republican and Democratic lawmakers for bipartisan U.S. foreign policy outcomes — like crippling sanctions against the Islamic Republic of Iran — while educating and inspiring hardworking Americans of all races, religions and political affiliations to engage in shaping United States foreign policy.
Concerned with the lack of U.S. international leadership, sluggish economic growth and lagging wage gains, in 2014 Jeremy launched a Chicago office for the Republican Jewish Coalition (RJC), a non-profit organization committed to a strong national security and fiscally conservative economic policies. During his time at AIPAC and the RJC, Jeremy helped lead the fight in Illinois against the disastrous Iran nuclear deal, efforts to isolate our allies and empower our adversaries, and the dangerous foreign policy of an America that leads from behind on the world stage.
Lesley, Jeremy’s wife of 9 years, was raised in Highland Park to parents who ran small family businesses. A graduate of the University of Michigan and Harvard Law School, Lesley currently serves as an assistant dean at the Kellogg School of Management at Northwestern University while also managing her own small legal-education consulting business and the demands of raising a family. At the heart of the Wynes household are Lesley and Jeremy’s three young children – Jaclyn, 7; Isaac, 5; and Noah, 2.
The St. Clair County Democratic Central Committee voted to endorse JB Pritzker for governor. JB met with dozens of Democratic leaders across southwestern Illinois to listen and discuss the issues most important to their communities. The endorsement comes after JB’s several visits to Metro East.
“I am thrilled to have the support of Democrats across the state of Illinois, and St. Clair County is critical to Democrats’ chances of winning the governor’s race,” said JB Pritzker. “As governor, I will work to unify people to pass a budget, restore our social safety net, and stand up for working families. Unlike Bruce Rauner, I know pitting Illinoisans against each other won’t help us solve our state’s big problems. I’m ready to fight for all of our people, in every corner of Illinois.”
“We met with JB and discussed his vision for Illinois,” said Bob Sprague, St. Clair County Democratic Party Chairman. “He’s the right candidate to take on Bruce Rauner to create jobs, protect workers’ rights and fix the budget mess. We will support JB every step of the way in order to take back our state.”
The end-of-spring-session jockeying to avoid blame for the lack of a budget began in earnest Monday, but the efforts resembled summer rerun season.
The Senate resurrected an attempt at a grand bargain that eluded the chamber earlier this year. Talks are revolving around an income tax increase coupled with spending cuts in an effort to bring the state out of the red. Both parties also are working to see if they can reach an agreement on several changes that Republican Gov. Bruce Rauner has made a condition of a larger deal, such as a property tax freeze and overhaul of the workers’ compensation system to cut costs for businesses after an employee is hurt on the job.
Over in the House, Democratic House Speaker Michael Madigan announced he would appoint some of his top lieutenants to work with Rauner “to identify areas of his agenda where compromise can be reached.” […]
If nothing ends up getting accomplished, the two approaches afford a small measure of political cover. The Senate can say it tried to work out a budget deal, and Madigan can say he attempted once again to negotiate with Rauner. Last year, lawmakers and the governor went into overtime, agreeing on a stopgap spending plan at the end of June, just before the start of the state’s budget year. […]
“I am trying to stay hopeful, but we have been down this path before,” said Sen. Heather Steans, D-Chicago.
[Sen. Toi Hutchinson] noted talk of the expansion of taxes on services is still ongoing, which she called one of the most difficult parts.
“Illinois is not accustomed to taxing services, so politically speaking that’s a very, very heavy lift,” Hutchinson said. “So far I’ve been taken all the hits but that’s par for the course because whatever ends up happening they’re going to be a part of the negotiated package. … Not that we hope to raise taxes or like to do that.”
Still, she called talks “fluid” and urged senators to keep plugging along.
“This is a really fluid situation but it requires people to not pull the plug on it,” Hutchinson said. “You have to stay in it until it’s done.”
Sen. Hutchinson is carrying the Senate’s revenue bill. Several items in that bill were requested by Republicans, some of whom probably won’t even vote for it. Indeed, Sen. Bill Brady’s own legislation relies on the passage of Hutchinson’s revenue bill. He isn’t sponsoring a tax hike proposal himself.
* The Civic Federation carefully analyzes state budget proposals every year. So, while you may think this is a bit late to the game, it’s actually about right on time, considering the ongoing budget talks in the Senate…
The Civic Federation on Tuesday blasted Gov. Bruce Rauner’s recommended budget in a report that say it relies on “uncertain savings, one-time revenues” and the passage of the always in flux Illinois Senate “grand bargain” plan — while also blaming lawmakers for a “spectacular failure” for not enacting a budget.
The Civic Federation’s Institute for Illinois’ Fiscal Sustainability on Tuesday said it can’t support Rauner’s budget because it has an operating deficit of $4.6 billion and doesn’t address the state’s backlog of bills. The group also cites concern over the reduction of pension contributions by $1.25 billion and the reduction of group insurance payments and nursing home placements caused by a new at-home care program for seniors not eligible for Medicaid.
The group also warns that “one-time resources” from the sale of the James R. Thompson Center may do nothing for next year’s budget and shouldn’t be used to help balance the budget. The governor last week said he hoped the sale would provide “long-term” help for the state — saying he supports Republican-sponsored measured to send property tax revenue from the site to Chicago Public Schools.
Rauner in February presented his proposal that presses for revenue, reforms and cuts to fill a gaping hole. But it was deemed “balanced” by the state’s budget director because it was reliant on the Senate plan passing. Within the budget proposal is a mixture of spending cuts, revenue and projected economic growth to try to reach a magic number of nearly $4.6 billion. The administration said in February it was seeking to fill the remaining $2.7 billion plus by getting legislative authority to make cuts. In terms of the state’s massive debt, state budget director Scott Harry said “the governor would be open to financing” to get the backlog down.
Declaring that budget to be balanced when it obviously was not was one of the biggest tactical mistakes the governor’s office made this year.
* With emphasis added, here is the Civic Federation’s press release…
For nearly two years, Illinois has operated without a comprehensive budget, during which time the State’s credit rating has fallen to near-junk status and unpaid bills have continued to climb. Judicial mandates, full-year appropriations for elementary and secondary education and the questionable payment of State employees without appropriations have removed pressure on lawmakers to compromise on a full spending plan.
“Operating Illinois on autopilot is not a solution, nor is it sustainable. Rather, it represents an abdication of the most basic constitutional responsibilities of proposing and passing a balanced budget,” said Civic Federation President Laurence Msall. “The Governor and General Assembly need to end this unacceptable stalemate by passing and enacting a comprehensive plan. Cherry-picking certain areas of government to fund while pledging to work toward a complete budget sometime in the abstract future has not and will not end the crisis and in fact is making it worse.”
Unfortunately, Governor Bruce Rauner’s recommended budget for FY2018 does not offer a sufficiently detailed plan to address the State’s immense financial problems. To close the deficit of $4.6 billion, it relies on uncertain savings, one-time revenues and a bipartisan agreement in the Illinois Senate, the provisions of which are in flux and likelihood of passage is unclear.
Further, the Federation cannot support a budget proposal that would allow the backlog of unpaid bills to increase to $19.7 billion if the gap is not closed. Because of the backlog, the State begins each fiscal year in a hole, using revenues from the current year to pay off the previous year’s obligations. A $19.7 billion backlog at the end of FY2018 would represent more than half (58.1%) of estimated FY2019 General Funds revenues.
The Civic Federation continues to recommend a comprehensive plan including spending restraints and increased revenues. Spending controls are at the center of the Federation’s plan, but significantly more revenue is needed to help reduce the deficit in FY2017 and close the gap in FY2018 without drastically changing the scope of State government.
In fact, [Msall] continued, the situation has gotten so bad that the state now has to spend the first six months’ worth of revenues paying off bills that accumulated in the prior year.
Let that sink in a bit.
*** UPDATE *** From the Pritzker campaign…
“Illinois needs a leader who can bring people together to put an end to this budget crisis,” said JB Pritzker. “While Bruce Rauner has decided to hold the state hostage for his teardown agenda, millions are suffering the consequences and future generations will inherit the mess he’s created. As governor, I will propose a balanced budget to protect middle class families and get Illinois back on track.”
