Question of the day
Wednesday, Jan 7, 2015 - Posted by Rich Miller
* Oops. I forgot to post a question today. Sorry about that. It’s awful late, so let’s go with a tried and true subject matter…
* The Question: Caption?
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* From Steve Brown…
FYI
Another special proclamation has been prepared allowing the special election applying to all appropriate constitutional offices.
Speaker Madigan stated he will support the legislation on Thursday
The new proclamation, issued by Madigan and Senate President Cullerton, is here.
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* The study panel examining governance of the Abraham Lincoln Presidential Library and Museum and its parent agency, the Illinois Historic Preservation Agency was released today. From a press release…
The report concludes that establishing ALPLM as a separate agency is unlikely to solve the complex problems that led to the introduction of the pending legislation. Rather, separation of the ALPLM from the IHPA would weaken both organizations and “would result in a significant lost opportunity for the state,” depriving it of important synergies between the ALPLM and the other historical sites, memorials and programs that exist under the IHPA.
Instead, the report urges integration of ALPLM into a reorganized IHPA, to achieve “a better balance between the political culture that created ALPLM, the bureaucratic culture that has managed ALPLM for the past decade, and a museum and research library culture that must assume a higher profile in the [institution’s] future.”
The author of the report, Dr. Brent Glass, director emeritus of the Smithsonian’s National Museum of American History, argues that changes in the current governing structure of both IHPA and ALPLM could provide Illinois “a nationally recognized public history agency with the resources—human, physical, and cultural—commensurate with its rich and varied heritage.”
The report’s conclusions and recommendations were unanimously endorsed by the study panel at its meeting on December 22. Co-chairs of the panel, Donna Sack of the Association of Midwest Museums, and Bernard Reilly, of the Center for Research Libraries, expressed confidence that the report will shed new light on the complex issues surrounding ALPLM governance and operations and their hope that it proves useful to state legislators in considering the pending legislation.
The full report is here. I’ve been sick all day, so I’ll get to it eventually. Let the rest of us know what you find. Thanks.
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DCFS to get 8th director in three years
Wednesday, Jan 7, 2015 - Posted by Rich Miller
* Tribune…
The acting director of the Department of Children and Family Services told a packed legislative hearing Wednesday morning that she is leaving the troubled agency Jan. 19.
Bobbie Gregg announced her departure at a Chicago hearing investigating conditions at the state’s roughly 50 residential treatment facilities, which were the focus of the Tribune’s recent “Harsh Treatment” investigation. […]
Lance Trover, a spokesman for Gov.-elect Bruce Rauner, said in an email that Rauner “is committed to a transformation at the Department of Children and Family Services and will work closely with the General Assembly to ensure we protect our most vulnerable residents.”
Gregg said she is DCFS’ seventh director in the past three years.
From what I’ve been hearing, Gregg thought until very recently that she’d be asked to stay on at DCFS.
Administration and oversight apparently aren’t her only shortcomings. Add “foresight” to the list.
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Tuition freezes and budget math
Wednesday, Jan 7, 2015 - Posted by Rich Miller
* From a U of I press release with emphasis added…
In-state freshmen at the University of Illinois would see no increase in base tuition next fall for the first time in more than two decades under a proposal that will be reviewed Monday by the Board of Trustees’ Audit, Budget, Finance and Facilities Committee. […]
Officials said the University hopes to hold future tuition increases to the rate of inflation or below, but cautioned that significant reductions in state funding and other factors could lead to larger increases.
* The Tribune explains how the university will cover the costs, with emphasis added…
The university will forgo about $2.6 million in tuition revenue by not instituting another 1.7 percent increase this year, Pierre said.
However, he said, the university expects about $25 million in additional tuition revenue during the 2015-16 school year in part because of increased enrollment in some programs and higher graduate student tuition. Also, under the four-year guaranteed tuition plan, some lower-paying students will be graduating, and new students — even with the freeze — will be paying more than those they replace.
Pierre warned that this could be a one-time freeze, especially as the state’s public colleges and universities are facing threats of funding cuts after the state income tax rate dropped Jan. 1.
“Certainly any changes in state support might have consequences on tuition rates for next year,” he said.
* Keep that $2.6 million figure in mind when reading this, with emphasis added…
The University of Illinois is preparing for a possible 20 percent cut in its state appropriation.
Last week, the university was asked to submit a report to the Illinois Office of Management and Budget and the Illinois Board of Higher Education on how such a reduction would affect its operations for the next fiscal year starting July 1, 2015.
A 20 percent cut in the UI’s approximately $670 million state appropriation would amount to about $134 million.
The tuition freeze’s $2.6 million cost amounts to 0.39 percent of the system’s $670 million state approp. Any hit to its budget beyond that, and either the freeze could be imperiled or tuition will have to rise even higher in the very near future.
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Shine a light
Wednesday, Jan 7, 2015 - Posted by Rich Miller
* USA Today…
The election may be over, but the fundraising hasn’t stopped for some of the nation’s governors, whose allies are busy collecting more money from donors to help underwrite their inaugural bashes.
In some cases, the donations exceed what their supporters could contribute to their campaigns.
In Illinois, sponsors who give $25,000 to the committee raising funds for Republican Gov.-elect Bruce Rauner’s inaugural events get four VIP tickets to his Jan. 12 swearing-in, along with entry to two dinners, a reception and concert featuring country star Toby Keith and blues legend Buddy Guy, according to the committee’s website.
State law limits candidates accepting more than $10,500 from a corporation or union or $5,300 from an individual.
* Finke…
Rauner, who is not using taxpayer money to pay for his inaugural activities over the coming week in Springfield, will release information about who is paying for it when the time is right, spokesman Mike Schrimpf said Tuesday.
“We already committed to releasing the donors and will release the relevant information at the appropriate time,” he said in an emailed response to questions.
Schrimpf did not answer questions about the total estimated cost of the inaugural events. […]
Although Rauner has promised to disclose contributors, that isn’t enough for some critics of privately funding inaugural events. David Melton, executive director of the Illinois Campaign for Political Reform, said it still leads to the perception that someone or something is buying access.
“I’m not questioning the good faith of anyone involved about this idea of privately funding inaugurations, whether it’s for the governor, the president or anyone else,” Melton said. “But I think it’s a mistake because it undermines the position that they hold and leads to misperceptions about where their chief loyalties lie.”
* Meanwhile, Mark Brown looks at Rauner’s pledge to shift his assets into a blind trust…
Rauner’s most obvious and serious potential conflicts involve his holdings in GTCR, the private-equity company he ran before entering the governor’s race, and the firm’s work investing state pension funds. I honestly don’t know what he can do to alleviate that conflict.
Many of Rauner’s investments are complex and probably can’t be undone by any trustee, which means he will keep them for many years.
That’s why Robert Walker, a former chief counsel to both the U.S. Senate and House ethics committees and now a lawyer at Wiley Rein LLP, says blind trusts are of limited value in the short term.
After all, Rauner will know exactly what he put in the trust, and what actions might benefit those investments.
“It’s a good gesture initially if there are strict provisions applied and followed. It’s not a panacea for potential conflicts of interest,” Walker said.
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Economist: Rauner’s pension plan doesn’t add up
Wednesday, Jan 7, 2015 - Posted by Rich Miller
* The Tribune shines some belated light on Bruce Rauner’s 401(K) proposal for public employees…
In his successful campaign, Rauner spoke generally about wanting to shift public employees from receiving a defined pension benefit into becoming members of a defined contribution plan similar to a 401(k)-style system.
Rauner has said public workers should be able to keep the benefits they have already accrued, but, moving forward, go into a defined contribution system. He also has said public safety workers should stay in the current system. And, with 80 percent of public employees not eligible to receive Social Security, Rauner has said he favors some unspecified plan to create a retirement safety net.
But it’s unclear whether Rauner’s concept is constitutional, as he maintains, or how it would address the current unfunded pension liability since payments would go into a new retirement system rather than address the shortfalls in the current system.
“Not only does it not solve the problem, but it makes it worse in the near term,” [Richard Dye, an economist on the faculty of the Institute of Government and Public Affairs at the University of Illinois] said. “Whatever the solution is will cost something, and I don’t know how it would be implemented. It’s hard to add (Rauner’s concept) up as a fiscal benefit for the state.”
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* From an e-mail to supporters…
Over the Christmas Holiday, more than 300 letters, notes, and emails of grassroots support flowed to the Rauner Team regarding my application for Illinois Comptroller.
THANK YOU!
Governor-elect Bruce Rauner decided to appoint North Shore businesswoman Leslie Munger as the next Illinois Comptroller. It’s a good pick which I support and respect.
Here’s what I texted her yesterday morning…
Hi Leslie, Congratulations on Comptroller appt. I personally wish you much success! Time to Shake up Springfield. Again, Best Wishes and Congratulations- Adam Andrzejewski
Thank you for your outpouring of support. The Rauner team described it as a “flood.”
I especially appreciated these supportive notes, because you took time out of your Christmas Holiday. Volunteer Susan Petty, founder of Turning Point USA Charlie Kirk, and IL Tea Party Denise Cattoni and many others did much to organize support.
Our teams at For The Good of Illinois and OpenTheBooks.com work extremely hard to protect taxpayers and fight spending abuse. Your support further steeled our spine for the long road ahead.
Thank you to U.S. Senator Tom Coburn who sent a supportive email to Bruce Rauner. As Dr. Coburn leaves the Senate, we will work hard to carry his legacy of transparency and aggressive spending oversight.
Thank you to Solidarity founder, Nobel Laureate, and Polish President Lech Walesa for his 2010 endorsement and continued friendship. The possible appointment was a leading story in the largest Polish weekly newspaper, Wprost- here.
Thank you to Deroy Murdock at National Review who wrote an incredible biography piece, Let Andrzejewski Open The Books in Illinois.
Thank you to Michael Flynn at Breitbart for his early piece- IL Governor-elect Faces First Test of Leadership.
Thank you to the ten elected members of the General Assembly who backed my application, members of the GOP State Central Committee, GOP County Chairman, leaders of center-right persuading organizations, pro-family organizations, prominent business people across Illinois, donors and of course… regular people across our state.
From the bottom of my heart, I deeply appreciate all of you. Thank you. All of you put your good name next to mine. It’s a charge that I will not forget.
It’s good news that Rauner picked from the deep well of Illinois business talent and not from politics. All of us have high hopes. We wish Bruce Rauner and his team the best!
Now, let’s get back to work. All of us have a lot of work to do.
For The Good of Illinois.
ADAM ANDRZEJEWSKI
Founder & Chairman, For The Good of Illinois
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Special elections bill filed
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* Subscribers were told about this earlier today…
Legislation is being considered that would establish a 2016 special election to replace late Illinois Comptroller Judy Baar Topinka.
The bill was filed Tuesday would apply to statewide vacancies of 28 months or more. It’s expected to be considered during Thursday’s special session in Springfield.
* From one of the pertinent sections …
In accordance with Section 7 of Article V of the Illinois Constitution of 1970, if the Attorney General, Secretary of State, Comptroller, or Treasurer fails to qualify, or if his or her office becomes vacant, the Governor shall fill the office by appointment. If there are 28 months or less remaining in the term at the time of the vacancy or failure to qualify, the appointed officer shall serve for the remainder of the term.
If there are more than 28 months remaining in the term at the time of the vacancy or failure to qualify, the office shall be filled by a special election to be held at the next general election. In the case of a special election pursuant to this Section, the appointed officer shall serve until the election results are certified and the person elected at the special election is qualified.
The legislation also covers deaths near election days.
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Classy coming in, classy going out
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* IO…
Governor-elect Bruce Rauner has begun the process of cleaning house, sending dismissal notices to top Quinn Administration officials.
Governor Pat Quinn’s chief of staff, Ryan Croke, alerted cabinet directors, deputy directors and top lawyers in an e-mail on Monday evening that employment status letters would start to flow and that “some will be notified that they will not be retained.”
* I’ve heard about several of these letters so far. But, kudos to Rauner’s chief legal counsel for setting a very classy tone…
* And speaking of classy, Gov. Quinn today told his City Club audience about how he used his father as his role model for governance. Many of us have heard this story before, but not with such emotion…
Thanks to Commissioner John Fritchey for the video.
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Things are looking up
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* Crain’s takes a look at the Chicago region’s immediate economic future and pronounces it bright…
The Chicago Purchasing Managers Index, a closely watched indicator of industrial demand, averaged 62.5 over the three months ended in November. Anything above 50 signals a growing manufacturing base. “That’s really strong,” Kavcic says. […]
In 2014, Commonwealth Edison expected to see a 1.5 percent increase in household electricity consumption, not including the effects of its energy-efficiency programs, according to the utility’s projections late in the year. That’s the highest growth in usage since the recession. In 2013, the rate was just 0.7 percent. […]
Estimates of the region’s gross metropolitan product growth range between 2.3 percent and 3.4 percent. The same figure for 2014 is expected to come in at anywhere from 1.7 to 2.6 percent, depending on the source. […]
One reason [for why the region has lagged in the recent past] is that business and professional services—accountants, lawyers, consultants, advertisers, etc.—are such an important component of the local economy now. And those sectors tend to rebound later than others in a recovery. “This is where the professional services businesses really kind of kick in for Chicago,” he says. “Because we service so much of the surrounding Midwest area, it’s become the economic engine. That’s sort of the bellwether.”
Indeed, professional services jobs increased 2.6 percent in September over the same time in 2013, according to the U.S. Bureau of Labor Statistics. That was the highest year-to-year jump of any category other than construction. Meanwhile, unemployment in the Chicago area fell sharply during the same period, to 6.1 percent from 8.4 percent. […]
Even commercial bankers—a group that, to date, has been pretty sour on the region’s economic performance—are coming around. “All of our customers are projecting very good years,” says Edward Wehmer, CEO of Wintrust Financial in Rosemont, the second-largest locally based bank holding company, with $19 billion in assets. “Wage inflation is going to start to kick in. Consumers are starting to feel better.”
* Also, the U of I’s “Flash Index” was at 106.5 in December. It’s been above 100 - the dividing line between growth and decline - for the past two years, and hasn’t been this consistently high since 2007.
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* Check out the wording in this press release…
The following statement is from Treasurer-elect Mike Frerichs regarding the announced appointment of Leslie Munger to the office of Comptroller:
“I called Leslie Munger last night to congratulate her, and I thank Governor-elect Rauner for selecting someone committed to eliminating the comptroller’s office.
Shortly before her passing, Judy Baar Topinka told me she was looking forward to working with me to combine the comptroller’s office with the state treasurer’s office. I am committed to keeping my promise to her to do just that.
I hope we can eliminate the comptroller’s office at the next election in 2016. By eliminating the comptroller’s office immediately at the next election, rather than waiting until 2018, we can save the taxpayers an additional $24 million.
I hope to meet soon with both Governor-elect Rauner and Leslie Munger to discuss eliminating the comptroller’s office sooner rather than later. In the meantime, I am confident that we can work together to eliminate as many redundancies as quickly as possible.”
Notice, he doesn’t say the two offices should be combined and a new person elected to fill that office. Instead, he wants the comptroller’s office eliminated so that he can then take over its duties.
Interesting twist.
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In search of a legacy
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* Erickson…
In one of his final acts as governor, Democrat Pat Quinn could make one last push to raise Illinois’ minimum wage.
Although his aides remain tight-lipped about the prospect Monday, the outgoing governor could use his waning authority to call on lawmakers to act on the minimum wage when members of the House and Senate return Thursday for a special legislative session.
That doesn’t mean lawmakers actually will listen to Quinn, who leaves office Monday morning.
That wouldn’t surprise me at all. He’s trying hard to seal his legacy.
For instance…
Outgoing Gov. Pat Quinn has issued two executive orders he says are aimed at making the state more welcoming to immigrants.
Quinn on Monday ordered the Governor’s Office on New Americans to appoint a liaison in each state agency to help immigrants benefit from President Barack Obama’s recent executive action. The action curbs deportation and gives work permits to some immigrants who came to the U.S. illegally.
Quinn also says Illinois’ 10 existing Welcoming Centers should assist people applying for the federal action, and state agencies must provide information on how to obtain necessary records.
* The governor also sat down with the Tribune for an exit briefing…
The populist Democrat, who hands the reins of power to Republican Bruce Rauner on Monday, listed no regrets.
“I think you put your whole body and soul into every issue,” Quinn said when asked if he’d have done anything differently. “Some you win. Some you don’t win. Life goes on.” […]
Quinn said his biggest accomplishment as governor was guiding Illinois through the “dire straits” he inherited when he moved up from lieutenant governor six years ago. He took over after former Gov. Rod Blagojevich was impeached and removed, with Illinois a late-night TV punch line. The state’s economy reeled from the Great Recession. […]
“I know, as long as I have breath to breathe, I’ll be organizing some cause,” Quinn said. “I was disappointed that the progressive approach to government, for a while, won’t be in Springfield in the governor’s office.
“The progressive approach means you’ve got to tell people the unvarnished truth, even if it’s hard,” said Quinn, barely masking his criticism of Rauner, whose plans for state government so far have been short on specifics. “It’s better to tell people what they need to know, not what politicians want them to hear.
* And check out this Quinn press release from this morning…
As 2015 gets started, Governor Pat Quinn today highlighted Illinois’ strong economic recovery. In 2014, the state’s economy significantly improved, with unemployment down and job creation up across Illinois.
“When I took office on January 29, 2009, the Illinois economy was in a deep recession. Today, our economy is significantly stronger,” Governor Quinn said. “Our work to make the tough decisions, invest in a 21st century transportation infrastructure and responsibly cut the cost of doing business in our state is getting the job done. This past year saw historic drops in our unemployment rate as more men and women are getting back to work across the state.”
Today the Illinois unemployment rate stands at 6.4 percent - its lowest level since June 2008. In November 2014, unemployment rates fell in every region of Illinois for the eighth consecutive month to a six or seven year low. Illinois has led the nation for five straight months with the sharpest over-the-year drop in the unemployment rate.
Since the start of 2014, 166,000 more people across Illinois are back on the job. Employers have added 298,700 private sector jobs since February 2010.
When Governor Quinn took office, he inherited a financial crisis and the worst recession since the Great Depression. Since then, he has driven economic growth by putting the state on more solid financial footing, cutting state spending by billions of dollars and achieving historic reforms to pensions and Medicaid. These tough actions have won praise from all three credit agencies and helped stabilize the state’s finances.
It goes on like that for several more paragraphs.
* I’m assuming he’ll make some sort of announcement at his City Club address today…
Outgoing Illinois Gov. Pat Quinn is set to give one of his final public speeches as governor when he addresses business and civic leaders during an afternoon luncheon. The Democrat is scheduled to speak Tuesday at the City Club of Chicago.
Quinn has previously used the venue to float new ideas tied to the state budget or pension crisis.
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Today’s number: 1.4 million
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* Tribune…
Illinois has shifted about 1.4 million of its Medicaid recipients into managed care, falling just short of a Jan. 1 goal to move more than 1.5 million into the alternative system of delivering health care. […]
A state law passed in 2011 required 50 percent of the state’s Medicaid population, which has grown to about 3.1 million people, to be enrolled in a managed care plan by the start of 2015. Nearly all of the 1.4 million people who have moved to managed care have made the switch in the past year, with nearly half of them switching in the past two months, according to enrollment totals posted on the Department of Healthcare and Family Services website.
Officials plan to enroll an additional 800,000 people in managed care by spring, for a total of about 2.2 million enrollees, said Jim Parker, acting administrator of the Department of Healthcare and Family Services’ Division of Medical Programs. The state has focused its efforts on the most densely populated counties, where there are more hospitals, doctors and specialists than in rural areas, Parker said. […]
Rep. Patti Bellock, a Hinsdale Republican who helped craft the bill, said she is satisfied with the department’s progress.
* Related…
* Top Medicaid official in Illinois to resign: The director of the Illinois Department of Healthcare and Family Services plans to resign Jan. 9 as part of the transition to Republican Gov.-elect Bruce Rauner’s administration. Julie Hamos, 65, oversees the largest state agency and has responsibility for the $18 billion Medicaid program, which pays medical expenses of the poor and disabled, including the cost of more than half the state’s childbirths.
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A crack appears
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* This is not the response that Brown gave me when I talked to him yesterday…
[Gov. Pat Quinn] has said Rauner’s appointment should not remain in office for the full four-year term, arguing that voters should get to elect a new comptroller during a special election to be held at the same time as the next statewide election, in 2016.
Quinn has called lawmakers back to the Capitol on Thursday to vote on a special election. It’s unclear if the Democrat-controlled General Assembly will go along with the idea. While Senate President John Cullerton supports a special election and is drafting legislation on the issue, powerful House Speaker Michael Madigan has argued that Quinn and Rauner should come to an agreement without the help of lawmakers.
A spokesman for Madigan on Monday said it’s too soon to say if the matter will be called for a vote or if the speaker will back the proposal.
“That’ll be dependent on how the bill is prepared,” spokesman Steve Brown said.
So, he’s no longer saying that this is purely an “executive department” decision. A door has clearly been opened, even if only a little.
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Today’s quotable
Tuesday, Jan 6, 2015 - Posted by Rich Miller
* AP…
After telling voters during the campaign he had a plan to simultaneously lower taxes and increase spending for education, [Gov.-elect Bruce Rauner] now says the state’s finances are far worse than he was led to believe. It could be a way to give himself some wiggle room while pinning blame for unkept promises on the Democrats who preceded him. […]
“Gov. Rauner needs to keep his commitments to voters,” [former state Sen. Kirk Dillard] said. “And if he can’t deliver on all of them, he needs to make it clear that it’s the Democrats that are preventing him from doing so.”
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