* What a messed up week this was. And it ain’t gonna get much better, I’m afraid. Stuff is falling apart everywhere. I really don’t know what to say right now, so I’ll just play some music for a while and try to soothe my soul…
* I heard this was coming, but there was literally nothing I could do about it. LSSI is one of the finest social service groups in this state and I’ve helped them raise money for years. Their overhead costs are a lean 7.3 percent. They serve people that nobody else wants. I just cannot find the words to describe what a loss this is for Illinois. This impasse has to end. This state is wrecking a cherished organization over a paltry 1.4 percent revenue growth projection. I’m literally sick to my stomach about this…
Lutheran Social Services of Illinois (LSSI), the largest statewide provider of social services, today announced program closures and staff cuts throughout Illinois due to the state’s inability to pass a budget for the past seven months.
“The state’s budget deadlock has severely challenged LSSI’s ability to provide services to those in need,” said Mark A. Stutrud, LSSI President and CEO. “Over the past months, LSSI has relied on a bank line of credit and available resources from our foundation to compensate for the state’s inability to pay its bills. Currently, we are owed more than $6 million by the state for services delivered. After seven months, we can no longer provide services for which we aren’t being paid.”
The seven-month-long-and-counting budget impasse forced the organization to cut back programs and restructure services as LSSI seeks to bolster resources for the 149-year-old faith-based nonprofit’s continued viability. In consultation with LSSI’s Board of Directors and an independent advisory group, LSSI created a plan to restructure its services and shore up resources for the viability and continuation of the organization.
In all, over 30 programs are closing, and more than 750 positions are being eliminated, or 43 percent of LSSI’s total employees. As a result of these closures, approximately 4,700 people will no longer be receiving services from LSSI.
“We are eliminating spending that is most linked to non-payment of services and redesigning our administrative support around a newly restructured organization,” said Stutrud. “Our plans respond to this year’s budget impasse and an anticipated lingering state financial crisis over the next several years. We’re doing this at a great cost to LSSI and those affected by our services. It has been an agonizing process, particularly its impact on our clients and their families who depend on us for their care, as well as our employees whose jobs were eliminated. Many of our employees are direct care personnel who have built relationships and strong trust with the people they serve.”
The programs that saw the largest cuts were those helping seniors, including home care. Programs eliminated were case management for seniors, adult protective services, and LSSI’s Adult Day Care Center in Moline. Although LSSI is receiving some payment through Medicaid, the organization has been accruing several hundred thousand dollars a month in unpaid bills for home care services since July 2015, when the state’s budget cycle normally would have begun.
LSSI also has not received payment for programs reimbursed through the state’s general revenue fund and other state agencies. These include residential rehabilitation for adult drug and alcohol treatment in Chicago and Elgin, community counseling services, and prisoner and family programs at several locations.
LSSI is grateful for the support of ELCA churches statewide, other faith communities, and donors. LSSI is committed to continuing services that include: mental health, alcohol and drug treatment; Head Start; services for at-risk families; residential programs for adults with developmental disabilities, foster care, affordable senior housing; home care, and programs that help children maintain connections to their incarcerated parent.
“These decisions were the result of a thorough and painful process,” said Stutrud. “We know this will impact clients, their families, our employees, and communities throughout Illinois. We made these choices with a long-term view of the organization and its mission, and ultimately the ability to continue serving people.”
* Here are the program cuts…
About Lutheran Social Services of Illinois
Founded in 1867, Lutheran Social Services of Illinois (LSSI) is a statewide, nonprofit social service agency of the three Illinois synods of the Evangelical Lutheran Church in America (ELCA). For more information, visit LSSI.org and LSSI’s Facebook page.
Programs Affected
Residential Rehabilitation for alcohol and drug treatment
Behavioral Health Housing Opportunities, Chicago
Elgin Residential Rehab, Elgin
Men’s Residence North, Chicago
Men’s Residence West, Elgin
Social Detox, Chicago
Women’s Residence, Chicago
Mental Health Counseling for children, youth, adults and families
Community-based Counseling, Berwyn
Community-based Counseling, Des Plaines
Community-based Counseling, Downers Grove
Community-based Counseling, Elmhurst
Community-based Counseling, Mendota
Community-based Counseling, Prospect Heights
Community-based Counseling, Wheaton
Dixon General Counseling, Dixon
West/Northwest Suburban Counseling, Villa Park
Re-entry Services for former prisoners and their families
Connections, Chicago
Employment Skills School, East St. Louis
Homeward Bound Supportive Housing, East St. Louis
River Bend Re-entry, Alton
In-home Support Services for seniors
Intouch Home Care, Canton (serving Fulton County)
Intouch Home Care, Chicago (serving Chicago South and Southern Cook County)
Intouch Home Care, DeKalb (serving DeKalb, Kendall, La Salle Counties)
Intouch Home Care, Freeport (serving Stephenson, Jo Daviess Counties)
Intouch Home Care, Moline (serving Rock Island, Henry, Mercer Counties)
Intouch Home Care, Peoria (serving Peoria, Marshall, Stark, Tazewell, Woodford Counties)
Intouch Home Care, Rockford (serving Winnebago, Boone, Ogle Counties)
Respite Services supporting veterans and their families
Legacy Corps, Rockford
Legacy Corps, Streamwood
Adult Day Care for seniors and adults 18+ with disabilities
Intouch Adult Day, Moline
Comprehensive Case Management and Protective Services for seniors
Case Coordination, Sterling
Adult Protective Services, Sterling
I’m done posting for a while today. I’m just too disgusted to go on right now.
* For years while the legislative Republicans sat on their hands except to vote “No,” Democrats demanded that they produce their own plan. Whatever the topic of the day was, the GOP was way too often content to just sit back and lob rhetorical grenades.
Illinois Democrats don’t seem to have a plan or a vision for the state that goes much beyond thwarting Rauner and preserving the dismal status quo. […]
But at least Rauner has a plan — a list of aspirational bullet points that he calls the “turnaround agenda,” and that others have taken to calling the “runaground agenda.”
What’s on a similar list for the Democrats, who control both chambers of the General Assembly? What are their bold counterproposals for getting the state budget and pension problems squared away and boosting the economy?
* Spokesmen for Cullerton and Madigan basically said they’re just trying to solve problems…
State Senate Democrats “try to be more collaborative than combative,” said John Patterson, spokesman for Senate President John Cullerton. He ticked off a list of Democratic priorities and accomplishments — including marriage equality, the abolition of the death penalty and child care for working families — and noted that Cullerton and his caucus are “focused on trying to find lasting, practical solutions to real-world problems rather than coming up with catch slogans.”
“We don’t have a big, glossy title for what we want to do,” said Steve Brown, spokesman for Democratic House Speaker Michael Madigan. “We’re trying get a budget, work on a plan to pay down the bills and come up with a pension fix that complies with court rulings. To do that we hope to work co-operatively and professionally with this governor.”
* The Question: Should the Democrats produce their own version of the Turnaround Agenda? Take the poll and then explain your answer in comments, please, including what you think the Democrats should do, if anything.
After a day of furious damage control, the Rauner administration is hoping that it’s put back together a $1-billion-a-year state pension reform plan that would be passed by Senate President John Cullerton, with the governor’s help.
Rauner might get what he wants. Or not. It’s going to take a few days for the dust to settle. As Cullerton put it in a statement today, “Given the confusion, the best thing to do at this point is to get a proposal drafted so we know for sure what we all agree on. It’s important to make sure we’re all on the same page.”
Cullerton is being nice.
Reviving the deal that Illinois’ rookie governor blew up yesterday with his own rookie mistakes is going to require patience, persistence and tact. And even then, the deal likely faces opposition from House Speaker Mike Madigan, and a near certain challenge in court on constitutional grounds.
* Our resident pension expert RNUG agrees that it’ll face a stiff challenge based on prior cases…
This Cullerton proposal, to rephrase it, is capping the pensionable salary. The IL SC said in the SB-1 decision (as a footnote, I think) that you can’t impose a salary cap. They’ve also said it previously. Don’t think this will fly but we’ll have to wait for the court to say so.
Accordingly, once an individual begins work and becomes a member of a public retirement system, any subsequent changes to the Pension Code that would diminish the benefits conferred by membership in the retirement system cannot be applied to that individual.
Additional benefits may always be added, of course (see Kraus v. Board of Trustees of the Police Pension Fund , 72 Ill. App. 3d at 849), and the State may require additional employee contributions or other consideration in exchange (see Gualano v. City of Des Plaines , 139 Ill. App. 3d 456, 459 (1985)). However, once the additional benefits are in place and the employee continues to work, remains a member of a covered retirement system, and complies with any qualifications imposed when the additional benefits were first offered, the additional benefits cannot be unilaterally diminished or eliminated.
* Our old friend Scott Kennedy ran some campaign money numbers. Here are the dollars raised (including in-kinds) for just the fourth quarter. Notice the huge total for Democratic House candidates. Wow…
Democratic Party of Illinois $1,786,444.01
Friends of Michael J. Madigan $1,747,639.53
Democratic Majority $1,632,063.67
13th Ward Democratic Org $638,950.00
Citizens for John Cullerton for State Senate $884,520.00
Senate Democratic Victory Fund $1,554,358.12
Committee to Support John Cullerton for State Central Committeeman $476,011.73
Dem Senators Not On Ballot This Cycle $637,882.30
Dem Senate Candidates $1,792,328.42
Dem House Candidates $7,190,292.50 Total $18,340,490.28
Citizens for Rauner, Inc $4,199.00
Turnaround Illinois $1,320.78
Illinois Republican Party $179,912.70
Citizens for Durkin $344,572.77
House Republican Organization $282,875.47
Citizens for Christine Radogno $303,275.39
Republican State Senate Campaign Committee $306,385.96
Rep Senators Not On Ballot This Cycle $259,036.64
Rep Senate Candidates $705,473.89
Rep House Candidates $1,185,456.33 Total $3,572,508.93
* And then he added in cash on hand and A-1’s from this year to date, subtracted out money already spent and came up with these numbers for the Democrats…
Democratic Party of Illinois $2,865,324.67
Friends of Michael J. Madigan $2,756,209.71
Democratic Majority $3,063,478.46
13th Ward Democratic Org $1,491,009.03
Citizens for John Cullerton for State Senate $2,080,723.82
Senate Democratic Victory Fund $3,616,883.51
Committee to Support John Cullerton
for State Central Committeeman $738,523.74
Dem Senators Not On Ballot This Cycle $5,066,601.70
Dem Senate Candidates $7,912,107.69
Dem House Candidates $19,537,947.24 Total $49,128,809.57
Citizens for Rauner, Inc $20,927,593.93
Turnaround Illinois $4,254,601.97
Illinois Republican Party $1,074,787.88
Citizens for Durkin $1,188,319.11
House Republican Organization $732,881.13
Citizens for Christine Radogno $676,277.00
Republican State Senate Campaign Committee $1,064,260.18
Rep Senators Not On Ballot This Cycle $1,402,724.95
Rep Senate Candidates $2,576,200.65
Rep House Candidates $5,611,413.41 Total $39,509,060.21
And don’t forget the $9 million in IllinoisGO’s account and $4.5 million in Dan Proft’s Liberty Principles PAC, along with various other groups that you can see by clicking here.
The battle for the State House in 2016 is going to be intense. There is already almost $90 million in play, it will certainly eclipse the $100 million mark and may push to $150 million.
And his conclusion in an e-mail to me…
This is some unprecedented [stuff]. Your standard targeted races could all be $5 million contests this cycle. That’s crazy.
To me, anyway, the bargaining comparison comes as little surprise. Rauner wants the world and AFSCME wants to hold on to what it has and even expand it. They’re asking for a $1,000 pensionable bonus in the first year and a 2.25 percent raise in the second year, with 3 percent raises in years three and four.
…Adding… From Anders Lindall at AFSCME…
Rich – So you’re aware, the documents you obtained and published are two of three emailed yesterday to AFSCME-represented state employees. With respect to the Bargaining Comparison, I’d emphasize that the union’s very modest proposals described here (agreeing to the governor’s bonus framework in year 1, reasonable wage increases in the out years, a willingness to pay a little more for health care, etc) reflect our latest positions, but these are NOT final offers. We’ve consistently indicated that we want to continue the negotiating process to find common ground. – Anders
* Meanwhile, here’s an e-mail from a reader…
Hi Rich,
Didn’t necessarily want to put this on a blog post and you probably know already, but my husband, a state police retiree, has been contacted about “exciting opportunities” to come back and work temporarily for the state. He was also told to let others know about it.
* She asked that her name not be used, but she transcribed the message the person left on her home voicemail. I’ve changed her husband’s name here…
“Hi Joe, this is Lydia from Premiere Staffing Services. Please call about a great opportunity I’m working on for the State of Illinois.”
* The reader suggested that “Joe” call Lydia back…
She told him if he knows of “anyone looking for work, Premier is lining up lots of folks.” She didn’t say for a lock-out, my husband said she seemed to indicate the need if there was a strike.
Joe did tell me that many times in the past, agencies would be required to hurry up and put together plans for different situations that never came to fruition.
Any day now Gov. Bruce Rauner’s administration will decide whether to reject or add 8 conditions, recommended by the state’s own advisory board, to the medical cannabis pilot program.
The latest patient count shows that there are 4,000 medical cannabis patients in Illinois — adding these 8 conditions (including PTSD, pain, etc.) would help to bolster this new Illinois industry. Expanding the program would not only help more Illinoisans, but would help create new sources of revenue this state desperately needs.
And a new poll reveals that the general public is in support of this program.
The facts at a glance are:
· Nearly 70% (69%) of Illinois voters support expanding Illinois’ medical cannabis program to allow more patients with debilitating conditions to enroll, including military veterans who suffer from post-traumatic stress disorder
· 80% of Illinois voters support allowing patients in Illinois to legally use medical cannabis if their doctor recommends it.
· Almost three-in-four likely voters say the benefits of medical cannabis outweigh the potential risks
Q: Do you support or oppose allowing patients in Illinois to legally use medical marijuana if their doctor recommends it?
Republicans: 66% Support/29% Oppose
Democrats: 87% Support/9% Oppose
Independents: 82% Support/12% Oppose
City of Chicago: 84% Support/11 % Oppose
Suburbs of Chicago: 82% Support/14 % Oppose
Rest of State: 76% Support/19 % Oppose
Q: Currently, the medical marijuana pilot program is limited to only a few different diseases. For example, military veterans who suffer from Post - Traumatic Stress Disorder cannot get medical marijuana even if their doctor recommends it. Do you support or opp ose expanding Illinois’ medical marijuana program so that more people are eligible for it like veterans suffering from PTSD?
A swath of Democratic representatives joined Majority Leader Barbara Flynn Currie on Thursday morning in asking that the extra TIF money — an estimated $150 million to $350 million — go toward helping CPS plug its $480 million budget hole.
Budget Director Alex Holt said using TIF surplus is a “great idea.” That’s why the mayor has been “aggressively” doing just that — to the tune of $700 million since 2011 and $113 million this year alone, she said. Roughly $60 million of that money is earmarked for CPS.
“We froze downtown TIFs. We declared an aggressive surplus. There’s not a whole lot left to surplus. At this point, we probably need to look at canceling current or future projects to generate more money,” Holt said.
“To the extent that any elected officials want to cancel projects in their community, we would be more than happy to work with them and send additional surplus dollars to CPS. However, the amount of additional surplus is not going to be sufficient to solve the financial problem at CPS.”
It would be nice to know how much excess money is in those funds, but that’s a good point by CPS. Pretty much everybody screams about TIF districts, but they’ve funded a whole lot of projects.
A CPS presentation to investors shows that its preliminary budget for 2016-17 — pegged at $5.7 billion — relies on $800 million in funding that the district hasn’t yet secured.
The plan includes a $458 million subsidy from the state — even though lawmakers hardly considered this year’s request for a similar amount. It anticipates $170 million in new tax dollars from Chicago residents to help pay pensions — something the state also would have to approve.
And CPS is expecting to net another $170 million after teachers begin paying 7 percent of their salaries toward pension costs — an expense currently covered by the district. Chicago Teachers Union Vice President Jesse Sharkey said, “There’ll be a strike before that happens.
The state subsidy and the property tax hike approval aren’t coming any time soon, either.
Lewis said those losses could include the end of the city’s practice of picking up the bulk of teachers’ required contributions to their pensions… “I think that people understand the dire straits that CPS is in and that we are willing to make certain sacrifices.” […]
Lewis has described eliminating the pension pickup as “strike-worthy,” though she tried Thursday to downplay and dangle the possibility of a walkout.
“People always worry about that strike — that’s what happens when you don’t get to an agreement. So at this point that’s not the way things are looking but I’m not going to rule it out either,” Lewis said. “I think people need to be prepared either way.”
Lewis said talks to replace a pact that expired June 30 were “going well.”
President Cullerton to deliver City Club speech Monday
What: Senate President speech to City Club. Media availability following speech.
Who: Senate President John Cullerton
Where: Maggiano’s Banquets 111 W. Grand Avenue, Chicago, IL
When: Speech begins at noon, Monday, Jan. 25, 2016. Media availability immediately following.
* Either that, or we were way over-staffed back in the day. From Governing Magazine…
According to data from the National Association of State Budget Officers (NASBO), 33 states have fewer employees — 15 percent fewer, on average — handling the budget than they did in 2002. In 20 of those states, budget staff is down at least 20 percent. Cuts have been the worst in Illinois (51 percent), Arkansas (45 percent), and Kansas and New Jersey (44 percent).
“They have fewer people. They’re swamped,” said Scott Pattison, former director of NASBO and now executive director of the National Governors Association.
Asked Thursday how he expects to get Madigan on board for anything in Springfield while blasting the powerful speaker publicly, Rauner smiled.
“He’s taught us how to work with him,” Rauner said. “Peace through strength.”
That was Cold War doctrine. It worked, but this isn’t “strength,” it’s rhetoric, and Madigan knows the difference.
* After saying he wouldn’t budge, Rauner caved on his massive cuts to the autism program (announced on World Autism Day). He caved on money for local governments. He caved on funding the child care program. He caved on federal pass-through appropriations. He caved on paying state employees and funding schools during the impasse. He caved on judicial consent decrees for social services.
I’m sure I’m missing others.
The point is, talking big is far different than acting big, despite the oh so manly tough guy face yesterday…
* Madigan and other Democrats look at all those flip-flops and see weakness. That could also be why Dan Proft felt he had to warn Rauner in a Tribune op-ed to not cave to AFSCME and the other public employee unions.
* Rauner is now attempting to sound as tough as possible ahead of his State of the State and budget addresses and he’s making big mistakes in the process.
Not to mention that he’s also ginning up a severely fact-impaired war with the state’s only majority black university, which will further harm his ability to work with African-American legislators. And pitting the suburbs and Downstate against Chicago over school funding is deliberately divisive and could easily be racialized if he doesn’t watch himself.
Knock off the words and get to work on moving this state - all of this state - forward, for crying out loud. Somebody doesn’t agree with you? Well, OK, I feel your cosmic pain, but stop whining about it and find another way.
* Getting a deal with Cullerton (despite the governor’s horrifically botched rollout) was a good start. That’s strength. That’s governance. Focus on that sort of thing. Madigan will respect you for that stuff because he’ll have no choice.
* Mike Schrimpf sent this out at around 5:30 yesterday…
Reporters –
To clarify a lot of misinformation that has been circulated today, below is a summary of President Cullerton’s consideration model for pension reform, which the governor is supporting. If President Cullerton has specific concerns with legislative language, we are confident those can be worked out. What is imperative now is for President Cullerton to make clear whether or not he stands in support of the below consideration model, developed by his office.
Pension Plan Summary
Benefits
Tier 1 members (hired before January 1, 2011) in SERS, SURS, TRS, and GARS are provided two choices and must make an election between the two choices.
Choice 1
· COLA is the lessor of 3% OR ½ CPI, simple interest on the originally granted annuity.
In Exchange For
· Future increases in salary will count as pensionable salary.
Choice 2
· No changes to current level of pension benefits; COLA remains at 3% annually, compounded.
In Exchange For
· Future salary increases will not count as pensionable salary.
Best,
Mike
* Any “misinformation” was solely created by Gov. Rauner himself when he told reporters…
“In order for President Cullerton’s bill to be constitutional, salary increases have to be taken out of collective bargaining. This is a key point. Salary increases come out of collective bargaining. So the union has nothing to do with it in the future.”
That’s just not true. It’s so untrue as to be ridiculous.
So, I asked Schrimpf why he didn’t just admit the governor made a mistake, which would instantly clear everything up.
Somebody else from the office called and we had a bit of a shouting match. Friendly, to be sure, but quite loud and extended.
* And then Schrimpf sent an e-mail labeled “Important Update” at 8:19 pm…
Please attribute to governor’s office:
“Perhaps the governor was not as precise in his word selection as the Democrats would have liked. To be clear, the governor agrees with the Senate President that the only labor law revisions that are necessary are those modest ones that ensure that employers shall not be required to bargain over compensation or benefits affected by President Cullerton’s changes, the impact of those changes, or the implementation of those changes. This is what the governor was trying to say. We agree. Let’s move forward to get pension reform done.”
Reporters immediately raised suspicions in tweets and initial stories, wondering why Cullerton wasn’t standing next to Rauner. Plus, Rauner’s language was incendiary, sounding anything like someone who was trying to build bridges. He blasted Madigan, he blasted unions. Above all though, he said something Cullerton, who has courted unions, said he never would have agreed to: “Salary increases come out of collective bargaining so the union has nothing to do with it in the future. That is necessary and a requirement for this to be constitutional.” Adding that his and Cullerton’s lawyers agreed on this point. But, according to Cullerton, they hadn’t.
Take-away: Rauner’s credibility is on the line after this one. Illinois Playbook flagged earlier this week that Rauner was expected to make a series of announcements in the leadup to next week’s State of the State address. If his intentions weren’t questioned before. They will scrutinized closely, if not dismissed.
That said: Late Thursday, Cullerton’s office seemed open to moving forward with Rauner if indeed he was not demanding a poison pill. But the whole episode reflected the deep-seated distrust among the parties. The media was not kind.
* As I told you the other day, Gov. Bruce Rauner’s Turnaround Illinois PAC transferred $1.818 million to Dan Proft’s Liberty Princples PAC. The rumor at the time was that Proft would use much of that money to defeat Sen. Sam McCann, the sole Republican to vote against Rauner on AFSCME’s “no strike” bill. McCann has a GOP primary race against Bryce Benton.
* Gov. Bruce Rauner responded today about the lack of support for his ideas in the House and Senate…
“The legislators in both political parties, and especially the Democrats have gotta wake up.
“We have been subsidizin’ the patronage and abuse in CPS for years. Their suburban taxpayers, their Downstate taxpayers are sendin’ extra cash to CPS. They better wake up and protect their taxpayers.
“One of the things that’s gonna happen this year is that our legislators are gonna get called out. They talk against the Chicago political machine. They talk against the Speaker. They say ‘I stand up, I work for my district.’ They’re not workin’ for their district. They take money from the Chicago political machine. They vote for the Speaker to stay in power and it’s breakin’ our state. And the legislators around, around the suburbs of Chicago and Downstate had better wake up and start smellin’ the coffee and deal with the votes for the right thing.”
* He was then asked, “How are they going to get called out?”…
* Well-reasoned, thoughtful and destroys several of Gov. Rauner’s arguments…
January 21, 2015
The Honorable Bruce Rauner
Governor, State of Illinois
207 State House
Springfield, IL 62701
Dear Governor Rauner,
I enjoyed meeting you personally as we celebrated Martin Luther King Jr. Day and I especially appreciate the expression of support you offered to me regarding Chicago State University. In the spirit of engaging that support, I am writing in response to the memo issued by your Deputy Chief of Staff Mr. Richard Goldberg in hopes of clarifying any misstatements.
The overall tone of the Mr. Goldberg’s memo calls into question the academic integrity of CSU. To that end, I would ask your administration to consider our independent accrediting body, the Higher Learning Commission (HLC), and their 2014 decision to grant Chicago State University a full 10-year reaccreditation. I can assure you this reaccreditation is no rubber stamp and did not come easy. A committee of respected higher education experts thoroughly reviewed every aspect of our operations and decided that CSU had earned the highest reaccreditation a university can receive.
Most of the critiques in Mr. Goldberg’s memo have one thing in common; they are based on a mistaken construct that Chicago State University is comparable to more traditional universities. The truth is that CSU serves a unique and diverse population and a simple “apples to apples” comparison to other universities with traditional student bodies paints an inaccurate picture of our impact and our student’s successes.
Unlike other state universities, the majority of students at CSU are transfer students. This is an important fact because the graduation rate numbers quoted in your memo are drawn from the Integrated Postsecondary Education Data System (IPEDS), a federally generated metric that does not count transfer students. For example, in the cohort of 6820 students referenced in your memo, only 9% would be counted by IPEDS. Full-time and part-time transfer students make up two-thirds of our student body and are a much more accurate metric by which to measure student progress at CSU. For example, the graduation rate for full-time transfer students in the 2008 cohort referenced in Mr. Goldberg’s memo is 51%. That graduation rate, however, is not reported by the federal system. It is also worth noting that 42% of our students are first-generation college students and 55% come from homes below the poverty level. Experienced educators will tell you that students with this background can and do succeed, but need an increased level of academic support services, and are therefore more expensive to educate.
CSU is an extremely important educational outlet for the south side of Chicago, in large part because it provides an affordable pathway to a degree for the city’s African American communities. It is implied in your memo that CSU is graduating white students at 83%, a much higher number than students of color. This misleading statistic fails to recognize that within the 2008 cohort referenced, six white students began their degree, and five completed. For point of reference, CSU issues on average 800 degrees annually, graduates 1 out of 2 African Americans receiving a bachelor’s degree from a public university in Chicago and 1 out of 6 in Illinois.
Perhaps the most troubling portion of Mr. Goldberg’s memo is that your staff refers to CSU as a university that “rejects reform.” Governor Rauner, nothing could be further from the truth. As I write this letter, I have been President of CSU for less than three weeks. One of the things that attracted me to the position was that I saw a university emerging from a significant transformational change and poised to soar. Over the past five years, CSU made difficult decisions to prioritize academic quality and integrity over pure enrollment numbers. That decision led to several students being dismissed, but helped ensure that our student body is comprised of those ready to succeed in college.
Furthermore, over the past four years CSU has reduced audit findings by 55% and improved both compliance and transparency. Your memo references unaccounted for university property. I would like to highlight that the amount referenced accounts for less than 1% of all university property. Several other issues cited including past lawsuits which are still in appeal and have not been paid by the university to date, claims made in the media by former employees who were terminated, and improperly inflated administrator head counts are all issues in the past. CSU is poised to move forward.
Over the past week your office has raised several concerns, many of them legitimate and worthy of further discussion about the need for reforms. Since January 2015, CSU has cut 10% of its work force and trimmed administrative costs by over 20%. In addition, administrative salaries have been frozen, we have reduced travel, delayed payments to vendors and cut back on purchasing throughout the year. We have also not filled vacancies and consolidated both positions and academic programs. We fully recognize the state of finances in Illinois and we have worked and continue to work to tighten our belts.
I also feel it is important to express that one of my top goals as I enter CSU is to increase the amount of private revenue coming into the university. I know that we cannot simply continue to look to the state for increased funds and must do more on our own to maximize outside investment. Like any university looking to cultivate more revenue, we are in the early stages of a broader effort that we feel will in time result in a reduced reliance on state funds.
As for necessary reforms to areas of spending such as procurement, workers compensation, pensions and cutting costs, we remain ready to work with you and your staff on any proposals that will help create a more efficient, transparent and effective public university system for Illinois students. However, the work of enacting meaningful reform takes time, and time is simply not a luxury the CSU campus community has at the moment. As you have likely seen in the news recently, the lack of state appropriations to both higher education and to the MAP grant program has created a significant shortfall in our operating budget. At the moment, we are struggling to complete the current semester and the fate of multiple public universities after the current semester is uncertain.
On behalf of the students, faculty, alumni and staff of Chicago State University, we stand here today ready to work with you to make meaningful reforms in higher education and we are willing to lead by example. With that said, we cannot enact such reforms if we do not have the ability to function.
Each day I meet students who are working every day to lift themselves out of poverty and get the education they need to build a better life for themselves and their families. These students are the lifeblood of our university and they will be the victims if public universities are allowed to collapse under the weight of financial pressure. I implore you, as a lifelong educator, a minister and a fellow seeker of change to provide the funding CSU and its sister universities need to operate through the fiscal year so that we may be in a better position to help your team achieve real results that will benefit every student and parent in Illinois.
Sincerely,
Thomas J. Calhoun Jr., PhD
President, Chicago State University
That white graduation rate debunk is particularly strong.
…Adding… Rauner himself used the debunked white graduation rate line during his Q&A with the media today. Dumb move.
The following statement can be attributed to Lance Trover, communications director for the Governor’s Office:
“Administration lawyers have spent weeks negotiating the best possible pension reform language with members of Senator Cullerton’s staff.
“Central to the Cullerton model is that future salary increases are part of the employee election, and that to ensure the proposal passes Constitutional muster current law must be changed to make the employee’s election permanent. On that core principal, the Governor’s legal team and the President’s legal team have agreed, and this is the model that the Governor and Republican leaders endorsed today.
“We hope the Senate President still supports this agreed upon model, originally developed by his office. If he no longer supports it, we urge him to immediately introduce new pension reform legislation that he thinks will be approved by the Supreme Court, and the governor will be open to considering it. Now is the time to act.”
Cullerton’s plan would give workers a choice between having their pay frozen for pension purposes or retaining the 3 percent annual increase they now get that’s designed to offset inflation. Over Madigan’s opposition, Cullerton’s plan never got anywhere in the House.
“In order for President Cullerton’s bill to be constitutional, salary increases have to be taken out of collective bargaining. This is a key point. Salary increases come out of collective bargaining. So the union has nothing to do with it in the future,” Rauner said. “And each individual employee makes their own choice: do they want their salary increase in the future to be pensionable or not? It’s their choice and not the union’s choice. President Cullerton has agreed with that. That is necessary, and a requirement in order for this to be constitutional.”
Illinois House Speaker Michael J. Madigan issued the following statement Thursday after Gov. Bruce Rauner and Republican legislative leaders proposed changes to Illinois’ pension system:
“I have shown my commitment to achieving pension reform on a number of occasions over the last several years. The Illinois Supreme Court has ruled that the General Assembly cannot alter earned benefits. With the court’s guidance, we now have a clearer framework of what cannot be done in any future pension reform proposal. To avoid wasting taxpayer dollars on lawsuits, it’s important that we carefully consider the court’s direction when we take up pension reform proposals as we work to address the state’s unfunded pension debt while ensuring that retirees who have worked hard for decades will receive their retirement benefits.
“The Governor said today that in exchange for negotiating on pension reform, he will continue to demand changes that will drive down the wages and standard of living of middle-class families. Despite the Governor’s desire to drive a wedge between Democrats in the House and Senate, neither President Cullerton nor I will agree to make changes proposed by the Governor that will hurt the middle-class families of our state.”
So, not a “no” on doing some sort of pension reform, but it sure looks like a definite “no” on this…
It's about the unions: #ILGov Rauner says to be constitutional, wages cannot be part of collective bargaining with public employees.
*** UPDATE *** The governor’s people flatly deny this, by the way. They say this is indeed Cullerton’s plan…
The following statement was released by Senate President John J. Cullerton regarding Republican leaders’ pension proposal:
“The governor called me this morning to say he was going to back my ideas for pension reform. The plan he outlined at his news conference isn’t what we talked about. It’s not my plan. It goes beyond what we discussed and beyond what I support.
“We apparently still have a fundamental disagreement over the role of collective bargaining in this process, in the sense that I think collective bargaining should continue to exist and the governor does not.
“I look forward to working with the governor to clarify these issues and appreciate his willingness to consider other ideas and just how far he’s moved away from his original pension reform ideas.
“But this is not my plan, not the plan we discussed this morning, and it does not have my support.”
*** UPDATE 2 *** From the We Are One Illinois union coalition…
“Another day, another hostage for Governor Rauner in his war on the working people of Illinois. Yesterday it was public schools, for more than a year it has been the state budget, and today it is retirement security for teachers, first responders and other public service workers.
“Rather than address his failure to enact a state budget or take a new approach by showing a willingness to work together, the Governor promotes cutting constitutionally-protected pensions in an effort to further attack working people and their unions he considers his political enemies.
“Rauner’s latest proposal is irresponsible and divisive. Slashing retirement security by forcing workers to choose between two diminished options is clearly unconstitutional. And to no one’s surprise, poison pills in the governor’s plan would wipe out the right of working people to have a collective voice on the job on behalf of their families and those they serve.
“Our coalition has always advocated a responsible solution to the pension funding issue that is both constitutional and fair. We urge the governor to abandon unconstitutional attacks and put the people of this state ahead of his political agenda. His disregard for working families is causing irreparable harm to children and communities across Illinois.”
They’re called Joint Purchasing Agreements, and Illinois Municipal League Executive Director Brad Cole says they’re a great way for local governments to find taxpayers cost savings by banding together to get discounts for a variety of things.
“It could be regular supplies, it could be maintenance related to roads or construction, it could be vehicles.”
Cole says the state could partner with local governments to find even bigger cost savings.
“They do it right now for vehicle purchases, particularly squad cars for police departments. The state can coordinate these themselves and offer it to different municipalities or different organizations.”
Cole says the state could expand on current programs to join with local governments.
*** UPDATE *** From CMS…
Hi Rich,
I saw your post on joint purchasing and want to highlight efforts already taking place under the state’s Joint Purchasing Program.
CMS offers local governments and state agencies the opportunity to participate in the Joint Purchasing Program; this cooperative purchasing is designed to save time and money when purchasing many commodities, services and equipment. Both the state and local governments can benefit from this joint purchase structure. When bulk-purchasing power from multiple state agencies is enhanced by the increased sales volume added by local governments, we can push per-unit costs down.
Some examples of commodities and services offered include:
Automobile repair parts
Computer hardware and software
Defibrillators
Mowers and tractors
Rock salt
Vehicles
Please let me know if you have any questions.
Thanks!
Meredith Krantz
Deputy Director & Public Information Officer
Illinois Office of Communication and Information
Department of Central Management Services
This looks like a government mail and phone program for a top targeted state legislator, Rep. Terri Bryant (her first name is misspelled on the document). Standard stuff in Illinois, even if it looks more than a bit campaigny.
* Here’s a closeup of the category called “Leadership Mail Target Letters FY 17″…
I asked for a response…
It was a draft of an internal staff document tweeted in error.
* Pat Quinn’s public rehabilitation tour continues today…
At a press conference at the VFW Hall in Elk Grove Village this morning Former Illinois Governor Pat Quinn announced his support for Mike Noland’s campaign for Congress.
Governor Quinn is the latest progressive leader to join Mike’s campaign. Quinn was Illinois’ 41st Governor, serving from 2009-2015. Quinn has been one of the biggest champions of progressive causes in Illinois for over 30 years. While in office, the Governor created the $31 billion Illinois Jobs Now! capital construction program and signed into law sweeping ethics and campaign finance reform legislation, the strongest in Illinois history. Before becoming Governor, he served for six years as Lieutenant Governor, four years as state Treasurer, and before that he was a political activist who successfully led efforts to shrink the size of the General Assembly and create the first-of-its-kind Citizens Utility Board.
“Mike is one of the good guys. I’ve known Mike Noland for a long time, and he has always had a strong moral compass. That’s the kind of leader we need in Congress,” said Quinn. “I like Mike because we share a strong progressive vision of how we can move our state and our nation forward. Whether it’s advocating for campaign finance reform, fighting for a cleaner environment, or standing up for veterans, Mike has always put people first.”
One of the cornerstones of the Governor’s legacy is standing up for servicemembers and veterans. He worked with Senator Noland, a U.S. Navy veteran, on legislation to protect veterans, such as HB 1260, which protected veterans from having their utility services disconnected.
“Having Governor Quinn’s support means the world me,” said Noland. “Governor Quinn has always stood up for what is right even if it means going against what’s popular. I am running for Congress because we need leaders who are will stand up against the status quo, and I am ready to do just that.”
Noland has also been endorsed by Senate President John J. Cullerton, former Senate President Emil Jones Jr., over 75 current and former elected officials from across Illinois, Northside Democracy for America, Blue America PAC, Kane County Democratic Organization, AFSCME State Council 31, American Postal Workers Union Local 3140’s executive board, Associated Fire Fighters of Illinois, Bricklayers Administrative District Council of Illinois, Sheet Metal Workers State Council, SMART Transportation Division (formerly United Transportation Union), Fox Valley Building Trades, Elgin Trades Council, IFT Local 1211 (Northwest Suburban Teachers Union), Operating Engineers Local 399, Painters District Council 14 & 30, and Teamsters Joint Council 25.
* But US Sen. Dick Durbin is backing the candidate who has raised far more money…
U.S. Senator Dick Durbin of Illinois is backing Raja Krishnamoorthi in the Democratic primary for the 8th Congressional District of Illinois.
“Raja has impressed me with his focus on fighting for working families to help build and grow a vibrant middle class in America that is the most certain way to move our economy forward,” said Durbin, the state’s senior senator and Senate Minority Whip, the second highest ranking position among Senate Democrats. “Raja is a strong progressive and the best choice to succeed Tammy Duckworth and represent the hardworking taxpayers of the northwest Chicago suburbs. The product of humble roots, Raja will make sure that the same programs that were there for his family, like quality public schools and Social Security and Medicare, will be there for future generations.”
Durbin was elected to the Senate in 1996 and first served in the U.S. House beginning with his election in 1982 to the seat once held by Abraham Lincoln. While a member of the House, Durbin won a landmark ban on smoking on commercial airline flights of less than two hours in 1988 that was eventually expanded to all domestic flights. Over his career, Durbin has spearheaded numerous other laws concerning consumer and product safety, college student loans and affordability, gun violence, national security, and fiscal reform and government oversight.
“I look forward to working in Congress with Senator Durbin to craft legislation to assist working families in Illinois and the 8th District,” Krishnamoorthi said. “I am very humbled by Senator Durbin’s support and his belief in me to represent the 8th District in Congress.”
Sen. Durbin’s endorsing Raja follows key labor union support of Raja announced earlier this month from the Amalgamated Transit Union, the United Steelworkers and Ironworkers Local 63. Durbin’s endorsement also comes after House Democratic Leader Nancy Pelosi announced her backing of Raja for Congress.
“Raja’s combination of public and private sector experience uniquely prepares him to work in Congress to develop and protect American jobs, defend a woman’s right to choose, and strengthen America’s gun laws,” Durbin said.
* I fired up the same feed we used yesterday. The press conference is scheduled to begin at 10:30, but in the meantime some Chicago Democrats are calling on the release of surplus TIF funds to help out CPS. Follow both topics right here with ScribbleLive…
Chicago State University, a 5,200-student institution founded in 1867, is considering drawing up a financial exigency plan, equivalent to college bankruptcy, as soon as next month, according to Tom Wogan, a spokesman. The move would be a first step to keep the school afloat as it hemorrhages cash to cover the loss of state funds. All options are on the table to get through the current semester, including missing payments on $12 million of outstanding tax-exempt bonds, he said.
The school, with a 70 percent black student body, would become the most visible casualty of the stalemate between Republican Governor Bruce Rauner, a former private-equity executive, and legislative Democrats, with leaders from Chicago, over a spending plan for the year that began July 1. While other public universities can draw on endowments or raise funds from alumni as the impasse persists, that’s not the case at Chicago State, whose students count on federal and state grants. […]
Chicago State is among colleges nationwide that are grappling with limits on their ability to raise tuition as the pool of graduating high-school seniors shrinks and students balk at taking costly loans. About two-thirds of its students are from Chicago or the surrounding area. It ranks highest among Illinois colleges in awarding bachelor’s degrees to black students in the physical sciences and health professions, according to its website. About 70 percent of attendees relied on financial aid in 2013. […]
To stay open, the university board would have to declare fiscal exigency next month so it has more flexibility to adjust contracts and potentially bond payments, Wogan said. Louisiana State University contemplated such a step because of proposed budget cuts in 2015, which led it to scrap a municipal-bond deal because of a buyers’ revolt.
“If we can’t make payroll and we can’t do a number of other things, everything about the university’s functions are at risk,” Wogan said. “The biggest short-term concern right now is operation funds to get through the semester and get through the fiscal year.”
*** UPDATE *** From the twitters…
Rauner says Chi State U "throwing money down the toilet" and failing their students. CSU says it may not make future payroll.
* From the Chicago Tribune’s recent editorial on Speaker Madigan’s primary opponent…
Gonzales owns up to some, ah, political challenges.
He grew up in the suburbs, lived in various places near downtown, and has rented an apartment in the district only since August 2014. He says he has deeper roots on the Southwest Side through family members who have been longtime residents.
He admits he had run-ins with the law in his youth. He was arrested for unlawful use of a credit card in 1991, when he was 17. He spent more than two months in jail. Yet, he says, he overcame that, graduated from an alternative high school and stacked up impressive degrees, including a master’s in public administration from Harvard’s John F. Kennedy School of Government.
* But as it turns out, his record is a bit longer than just the one arrest when he was 17. Kerry Lester found convictions for six crimes between the 1991 thing mentioned by the Trib and 1994, when he would’ve been 20 or so…
Longtime House Speaker Michael Madigan’s Democratic primary opponent, whose campaign so far largely is funded by Republican donations, was pardoned in 2015 by then-Gov. Pat Quinn for six crimes he was convicted of committing in the suburbs between 1991 and 1994, involving forgery, theft and the misuse of credit cards.
According to documents I obtained from the state’s Prisoner Review Board, Jason Gonzales’s offenses include using a stolen credit card to make purchases at Spring Hill Mall in West Dundee in 1993, presenting a forged credit card receipt to receive a $942 refund at an Arlington Heights Service Merchandise in 1994 and using a stolen credit card to buy a $1,000 Sony camcorder from a Highland Super Store in Morton Grove in 1991.
But, to his credit, he’s not running away from it now that his past has been more fully exposed…
Spokesman Ben Gould tells me Gonzales “has a story that can resonate … it’s important to see where he came from and what he is now. That’s something that can inspire people.”
* Even so, he might wanna change his online campaign bio now that more facts have emerged…
My path was not one that would necessarily lead me to where I stand today, but instead led to non-violent run-ins with the law that culminated in spending several weeks in jail after an arrest at 17.
* Subscribers were told about the likelihood of executive orders, etc. last week…
STRATEGY: Several political observers tell Illinois Playbook that Rauner will make a series of headline-grabbing announcements in the run-up to next week’s State of the State address. That may include his signing more executive orders and proposing new legislative packages.
Democrats contend the governor is panicking because he can’t point to actual progress from his first year in office. They paint Rauner as the private equity guy who is treating Illinois like a company he has taken over, stripping it down and allowing some pieces to fall off without regard to who or what they are. And they say he wants to divert attention away from the fact that Illinois is still operating without a budget.
Republicans contend it’s a frustrated Rauner who is putting a spotlight on Democratic legislative leaders Mike Madigan and John Cullerton — and Rahm Emanuel, who are asking the state for bailout money without addressing issues that got us there in the first place. “Are we supposed to stand by and watch CPS burn to the ground? What are Chicago Democrats doing about Chicago schools?” state Rep. Ron Sandack said. They would say they have proposed SB1, a funding formula overhaul, which is still being negotiated.
The inherent fallacy here is that the Democrats are not cooperating with the governor and the Republicans know they couldn’t pass that takeover/bankruptcy bill even in the best of bipartisan times as long as the mayor opposed it.
So, the governor is making the best of a rotten situation by using clever PR to shift attention and blame away from him, and the Democrats are making the best of it by making Rauner the bad guy.
None of this gets us to a budget, by the way. Just the opposite.
Government, and amassing power within it, has become Madigan’s business, Rauner told the crowd.
“He has created an unethical empire,” Rauner said. “He has become a multi-millionaire from government. He is all about power for power’s sake. He gets his money from that power. He thinks about the upcoming elections, not about good policy. That is just a fact.”
Rauner added that he will not cave in to Madigan’s demands, and that he is willing out outlast his political opponent.
“I have a job to do,” Rauner said. “No one will stand in the way of me doing it. Michael Madigan and I are mirror images. He is about politics and making money from power. I am about working for you.”
…Adding More… Text message from a pal…
Last week it was the screen pass, yesterday it was the flea-flicker, today they try the quarterback sneak on 3rd and long. Heck of an opening drive to start the second quarter.
Within hours, however, Chicago Public Schools CEO Forrest Claypool was declaring the proposal is far from a lifeline. He also hinted strongly at a federal discrimination lawsuit against the state if school funding inequities are not corrected.
“This is more of a smokescreen to hide the fact that the State of Illinois continues to discriminate against Chicago school children by providing just 73 cents for every dollar that children in the rest of the state receive on average,” Claypool told the Chicago Sun-Times. “It’s an unequal funding system for some of the most vulnerable and impoverished children in the state. It’s immoral and it won’t withstand scrutiny.”
Pressed on whether CPS was contemplating a lawsuit against the state, Claypool said, “No comment. No comment. No comment.”
* Claypool’s official statement has the same sort of hints. Here it is, with emphasis added…
Gov. Rauner’s proposal is frankly a sideshow to the real issue: the need to fix a school funding system that is separate but unequal. Instead, the Governor and Republican leaders want to preserve a school funding system that systematically discriminates against Chicago children. CPS represents 20 percent of state enrollment but gets just 15 percent of state funding, even though 86 percent of our children live in poverty.
The missing 5 percent represents nearly $500 million, the exact amount of our budget gap. Our children’s futures are just as important as those in the suburbs and downstate, and I hope Governor Rauner takes constructive steps to treat them equally.
In fact, while Republican leaders choreograph this distraction, CPS is taking steps to fix everything within our fiscal control and keep as much money in our classrooms as we can. CPS and the CTU leadership are working feverishly to reach a deal that would cut costs while preventing midyear layoffs, the district is going to market with $875 million in bonds and we’re on the verge of even deeper cuts to the bureaucracy.
Instead of offering a reckless smokescreen that distracts from the real financial problems facing CPS, the Governor should pass a state budget that treats CPS students equally with the rest of the state.
The Faith Coalition for the Common Good is supporting Senator Andy Manar’s efforts to change the school funding formula.
SB1 is back in the spotlight as school districts across the state are still struggling to make ends meet despite more money being appropriated for K through 12 education.
The latest data shows the current formula is failing minority students as districts with high minority populations get, on average, two thousand less per student.
So, local control is fantastic when it’s about the state letting local governments out of the collective bargaining process and paying prevailing wage.
But the holy notion of local control is never mentioned when the state wants to nullify a local union contract.
What: Governor Rauner, Leader Radogno and Leader Durkin Hold a Press Conference Regarding the Illinois Pension System
Where: James R. Thompson Center – 16th Floor
100 W. Randolph, Chicago
Date: Thursday, January 21, 2016
Time: 10:30 a.m.
And I’m sure the unions will love it.
Brace for another busy day around here, campers. I’ll post a live coverage feed later this morning.
