This morning the Chicago Teachers’ Pension Fund (CTPF) Board of Trustees met in a special meeting where representatives of the Chicago Public Schools (CPS) presented a proposal to create a short-term employer payment plan. At the meeting, CPS Interim Chief Executive Officer Jesse Ruiz, Chief Administrative Officer Tim Cawley, and the City of Chicago’s Chief Financial Officer Carole Brown outlined a proposal which would not reduce pension funding, but would help CPS close a $500 million budget gap for 2016.
Under the terms of the proposal, CPS would discontinue its practice of making a single annual pension payment on the last business day of the year and would instead make monthly payments to CTPF, beginning in January 2016 and continuing for the next 10 years.
This new funding schedule would defer approximately $500 million of the FY 2016 payment into the FY 2017 fiscal year. The proposal requires CPS to pay interest at 7.75% on the deferred amount and requires $750 million in collateral to secure the agreement.
Following a period of discussion and debate, the board voted to communicate its general support for the proposal, and authorized a subcommittee of the Board of Trustees to continue negotiations and discussions with CPS. The subcommittee is expected to meet in July and will make a recommendation to the full board later this month.
“We were encouraged to see representatives of CPS at our meeting this morning and appreciate the opportunity to openly discuss payment security for the Fund,” said CTPF Board of Trustees President Jay C. Rehak. “While we still have concerns about this proposal, we look forward to working through these issues so that our members’ interests are protected and our Fund receives all the revenue necessary to meet the pension commitments made by CPS.”
“Under the current statute, CTPF receives revenue once a year, on the last business day,” said CTPF Executive Director Charles A. Burbridge. “This proposal revises the payment schedule, but ensures that we have a monthly revenue stream and provides security and interest on a deferred amount, which is reassuring for our members.”
The subcommittee is expected to make a recommendation in advance of the full board meeting on July 16, 2015.
* The House came four votes shy of passing the “essential services” one-month budget today. I didn’t see the Big Board and the roll call isn’t posted online yet, but Madigan’s spokesman said all Democrats in the building voted for the bill, so it may have been an attendance issue. Attendance issues are common, even during May. Getting everybody into Springfield during July is very difficult.
The bill wasn’t placed on “Postponed Consideration” because the Senate passed an identical bill earlier today. Today’s House failure, in that context, didn’t matter because for parliamentary reasons the chamber couldn’t have voted on the Senate’s bill today anyway.
Press release…
Madigan: Rauner Shutdown Looking More Certain with No Budget Agreement
SPRINGFIELD, Ill. - House Speaker Michael J. Madigan issued the following statement Wednesday on the House’s plans to pass an essential services budget aimed at preventing or minimizing a service shutdown that would disrupt the lives of many middle-class families.
“The number one issue facing the state of Illinois right now is the budget. In the days ahead, I will work to pass a short-term spending plan to see that the lives of struggling and middle-class families are not disrupted.
“In light of the governor’s unwillingness to work with the Legislature to pass a budget that adequately funds important state services, today the House tried to pass an essential services budget to avoid a shutdown of state government. My goal is to avoid a shutdown of core, critical services. I believe that should be the top priority of the governor and the Legislature at this moment.
“Since January, I have said a budget that protects the middle class and vulnerable residents would require a balanced approach that includes spending cuts and revenue. Rejecting a balanced approach in favor of a budget that focuses on cuts alone will negatively impact middle-class families and severely harm the medical care services of the elderly, the disabled and struggling families, services for victims of child abuse, and nursing home care for thousands of frail elderly residents.
“Despite the governor’s lack of cooperation on the budget, in the spirit of compromise, the House has debated several non-budget issues and given each a fair hearing. The property tax freeze, including the governor’s own proposal, received five chances to pass. Each time, the issue received little support from House Republicans. The House passed a compromise bill to help employers save on workers’ compensation costs and we passed a bill to privatize a portion of the Department of Commerce and Economic Opportunity at the governor’s request.
“My focus remains on passing a budget that takes a balanced approach and includes spending reductions and revenue to preserve the services that the people of Illinois expect the state to deliver.”
* By the way, the House just announced that it will be in session next Wednesday and Thursday. The Senate’s not coming back for two weeks.
Also being curtailed: elementary school sports and 5,300 coaching stipends. And $18 million will be saved by cutting network offices and teacher development programs.
Teachers also could take another financial hit by paying more toward their pensions. They are supposed to contribute 9 percent of their salary, but for some time now, under a deal negotiated in past contract talks, they have paid just 2 percent; CPS picked up the rest. Emanuel wants teachers to make their full contribution once again — but that will have to be negotiated.
Also taking hits: $11.1 million will be saved by cutting the repair and maintenance budget by 25 percent. And $15.8 million will be saved from startup funding for new charter development.
Emanuel told reporters that class size will not go up, but schools will be impacted. And he again complained that CPS had a larger pension burden than other school districts — and that Springfield had done nothing to fix that situation.
Even with such cuts, which amount to about $200 million a year, more cuts are on the way unless help arrives from Springfield, Emanuel said. […]
Emanuel offered two [pension] options, which he said would work. The first is to merge the Chicago teachers pension fund with the fund that covers the rest of the state—a most unlikely alternative given political realities.
His Plan B is for the state to pick up the annual “normal costs” of pensions. (Normal costs are what’s needed excluding payment of old debts.) Also part of Plan B is requiring teachers to pay the 7 percent of salary for pensions themselves that now is covered by CPS under an old contract agreement.
Also in Plan B, a huge concern to city taxpayers—more revenue: “$175 million to $200 million,” the mayor said.
Speaker Madigan has said he doesn’t like that “normal cost” pickup because he goes the opposite direction of making school districts pick up those normal costs.
After several productive rounds of good faith negotiations, the Illinois Governor’s Office and Teamsters Local 700 have agreed to terms on a new four-year collective bargaining agreement. The current agreement expired June 30, 2015.
The new contract covers nearly 350 workers at IDOT, CMS, IDES, and DHS in Cook County. The employees work as highway maintainers, heavy equipment operators, and building service and maintenance workers. Negotiations are ongoing for employees represented by Teamsters locals at locations covering the rest of Illinois.
The terms of the tentative agreement include:
Maintenance of the current level of health care benefits for employees and their dependents as part of the State’s continued contributions to the independent Teamsters Local 727 Health & Welfare Fund.
A four-year wage freeze, continuing the 75% in-hire rate.
Continuation of a 40-hour work week.
A new performance incentive program to reward employees with bonuses for cost-saving measures and meeting or exceeding performance metrics.
A collaborative program that allows management and the Teamsters to work together to provide low-cost alternatives to outsourcing.
A reduction in the payout for accumulated unused vacation from 75 to 45 days for employees hired after January 1, 2016.
The tentative agreement will be submitted to the membership of Teamsters Local 700 for a ratification vote.
As a continuation of the productive negotiating sessions, the Teamsters and the Governor’s Office also pledged to form a long-term relationship to improve employer-labor relations in state government.
* Have you been wondering where CPS got the money to make its $634 million pension payment yesterday? I’m told they took out some more loans based on future revenues, like this fall’s property taxes. And now they want another one…
One day after using borrowed money and savings generated by 1,400 layoffs to make a $634 million payment to the teachers pension fund, Mayor Rahm Emanuel’s administration is asking the pension fund for a $500 million loan.
At a pension fund meeting Wednesday, Chicago’s newly-appointed Chief Financial Officer Carole Brown said she’s well aware it’s a “big ask,” particularly after the history of pension holidays and partial payments that created the $9.5 billion pension crisis at the Chicago Public Schools. […]
Although pension fund trustees expressed their “general overall support,” it wasn’t without a heavy degree of hand-wringing.
One trustee questioned the idea of “hoping Springfield can come through for us” in the toxic atmosphere of a state budget stalemate between Democratic legislative leaders and Republican Gov. Bruce Rauner over Rauner’s demand for pro-business, anti-union reforms.
Although a handful of GOP lawmakers have used the shuttle in the past year, a passenger manifest obtained through the Freedom of Information Act found the seats are largely dominated by the same Chicago Democrats who say Rauner’s agenda for workers’ compensation laws, limits on civil lawsuits and a revamp of local prevailing wage laws would harm the middle class.
But, despite grounding the shuttle, which cuts travel times between Springfield and Chicago, the Illinois Department of Transportation says there are no layoffs planned at the division that oversees the service.
“There are five pilots employed by the Division of Aeronautics. No layoff notices have been issued at this time,” said IDOT spokesman Guy Tridgell. […]
Before the grounding, pilots earning between $94,000 and $105,000 annually typically made 500 flights annually. Now, they will be available for emergency uses, such as when an agency head needs quick access to one of the state’s far-flung facilities… Tridgell also said no layoffs are planned among the rest of the division’s workforce.
* Rep. David Harris (R-Arlington Heights) is one of my favorite legislators because, whether you agree with him or not, he has an independent mind and is not afraid to calmly speak it…
“In my view, they are at an absolute impasse,” Harris said. “Both sides are kind of right.”
He said Democrats’ criticism of Rauner’s push to tie other non-budget related items to the budget, such as term limits and redistricting reform, is fair, but he disagreed with criticism from Democrats of Rauner’s inclusion of other reform items that could have budget implications. Those items include collective bargaining, workers compensation reform, prevailing wage reform and a proposed two-year property tax freeze.
Again, you may not agree that collective bargaining and whatever should be on the table, but he’s right that they’ll all impact the budget one way or another (maybe negatively in some cases, like a property tax freeze).
* And speaking of Rep. Harris…
Earlier today I submitted a letter to the Comptroller asking her to move my salary from a direct deposit arrangement to a paper check. I understand that this is the procedure that former Gov. Quinn used when he refused to accept his salary during the disagreement with the General Assembly regarding his veto of legislators’ salaries.
By moving to a paper check, I am asking the Comptroller to withhold my paycheck in the event that the current budget disagreement continues through July and that other State employees are not paid when paychecks are due.
Because of PA 98-682, it is my understanding that legislators’ salaries are on a continuing appropriation and thus would be paid notwithstanding the lack of a budget agreement.
I have stated many times that I believe it is inappropriate for legislators to be paid on time if other State employees are not paid on time.
Unlike Quinn, Harris is not a grandstander. I see this more as a leading by example thing.
*** UPDATE *** From a press release…
State Rep. David McSweeney (R-Barrington Hills) today sent Illinois Comptroller Leslie Munger a letter asking to be removed from the state’s direct deposit payroll until further notice saying he does not want to accept his legislative salary if state employees are not getting paid.
State law allows legislators to receive pay even if a state budget agreement is not in place. However, if a state budget deal is not reached before July 15th, state employees might not be able to receive their pay.
McSweeney said by opting out of the state’s direct deposit system he is following the lead of State Rep. David Harris (R-Arlington Heights) who has also sent the Comptroller a letter opting out of his legislative pay.
“I do not think it is right for legislators to receive a paycheck when state employees might not receive the pay they have rightfully earned. We should do our job and quickly adopt a permanent budget without any tax increases.”
To the Honorable Members of
The Illinois Senate,
99th General Assembly:
Today I return Senate Bill 1354, one of several budget implementation bills, with a specific recommendation for change.
After a decade of mismanagement, the State of Illinois is facing an unprecedented fiscal crisis. The State is suffering from a debt burden well in excess of $100 billion.
Instead of acknowledging this reality, the General Assembly passed an unbalanced and unconstitutional budget for Fiscal Year 2016. Last week I vetoed 19 of those appropriation bills and have asked the General Assembly to work with me to craft a balanced budget.
A balanced budget requires shared sacrifice. My Administration has reduced State personnel costs among agencies under my jurisdiction by $4 million during the first four full months (February through May) of this year, compared to the same period last year.
Under these circumstances, the State cannot afford to give legislators a raise. Illinois legislators are already among the highest paid in the United States, earning $68,000 to $95,000 per year for part-time service, plus per diem payments and mileage reimbursement. Without the change recommended below, legislators would receive raises ranging from $1,356 to $1,905 for Fiscal Year 2016 and increases in both the per diem amount and mileage reimbursement rate.
I recommend that Senate Bill 1354 be changed to eliminate raises for legislators, elected officers of the Executive Branch, and agency directors and other highly compensated State officials, and to freeze the per diem amount and mileage reimbursement rate. Budget implementation bills must give us the tools to implement a balanced and realistic budget, and this change is an important step in closing our budget deficit. A similar provision has been enacted for each of the past six fiscal years.
Therefore, pursuant to Section 9(e) of Article IV of the Illinois Constitution of 1970, I hereby return Senate Bill 1354, entitled “AN ACT concerning State government”, with the following specific recommendation for change:
I’ll get a link or a file so you can read the whole thing in a bit.
If the GA refuses to act, as is often the case with these, the whole BIMP goes down.
Remarkably, while workers face layoffs, state legislators won’t feel the pinch, thanks to a bill passed last year. It classifies legislator pay as a continuing appropriation — a budget item that state law mandates be funded even in the event of a government shutdown. The bill puts compensating part-time legislators on par with the state’s big-ticket items such as debt and pension payments and retiree health benefits.
This bill was pushed through the General Assembly on the last day of the 2014 spring session, with full support from Democratic supermajorities in both chambers. Supermajorities who owe their place in the debacle that is Springfield to the millions of dollars they receive to fund their campaigns from state worker unions. The same state workers who are jeopardized by the budget impasse.
But, hey, no skin off Rep. Kate Cloonen’s back. The Kankakee Democrat’s paycheck will arrive right on time, thanks to her vote on the bill. Same with Reps. Deb Conroy, D-Villa Park; Mike Smiddy, D-Hillsdale; Marty Moylan, D-Des Plaines; Michelle Mussman, D-Schaumburg; Carol Sente, D-Vernon Hills; and John Bradley, D-Marion. Why run the state and deliver necessary services efficiently when you can win an election? Why protect the lives that people are trying to build when you can make the new Republican governor look like a villain?
Lovely.
*** UPDATE *** From the governor’s office…
Under a longstanding resolution, the GA gets an automatic COLA increase unless they vote to stop it. They have done so often, including each of the past six years.
Here are the bills that denied the COLA in recent years: FY10 (P.A. 96-800), FY11 (P.A. 96-958), FY12 (P.A. 97-71), FY13 (P.A. 97-718), FY14 (P.A. 98-30), and FY15 (P.A.98-682)
Some of these are stand alone bills (eg 98-30). Others are BIMPs or coupled with other fiscal changes (eg 98-682).
The GA normally acts before July 1. But there is nothing to stop them from accepting our amendment now, before the first paycheck. If they do, it would difficult for them to assert a constitutional challenge, in particular because it is a change by their own acceptance.
This is different than what Quinn tried to do when he stopped paying them and tried to line item veto their salaries. We are asking only that the GA take the same vote they have repeatedly done.
“I am for a temporary budget to make sure essential services are taken care of,” said state Rep. Mike Smiddy, D-Hillsdale.
But, Republican lawmakers said they oppose the idea. And, they rejected accusations they were playing a game of political chicken designed to see which side would blink first.
“I hope that’s not the case because these are people’s lives we’re dealing with,” said state Rep. Bill Mitchell, R-Forsyth. “The General Assembly should do what it is supposed to do… and that is pass a balanced budget.”
State Rep. Adam Brown, a Champaign Republican who last week supported a temporary budget, changed his opinion Tuesday after the governor’s staff weighed in on the issue.
“I think listening to the administration today you’re hearing that essential services will continue to be funded and I think that’s extremely important and that’s the right path,” Brown said.
* The synopsis of HB 4235, introduced June 29th by Rep. Bill Mitchell and joined as co-sponsor on Tuesday by Rep. Adam Brown and several other Republicans…
Expands current continuing appropriations provisions to cover executive branch operations and all State universities (currently, the provisions cover only judges and the legislative branch).
Defines “executive branch operations” to include all State agencies, the office of any constitutional officer, including any agency or entity reporting to a constitutional officer, and any agency, board, commission, or other entity of the executive branch. Effective immediately.
Signing onto that bill would mean support for spending way more money than the state is projected to bring in next fiscal year.
Springfield Republican representatives Raymond Poe and Tim Butler did not rule out supporting the temporary budget.
“This isn’t the answer, but I’m going to take a hard look at it,” Butler said. “I’m someone who wants to see government keep running, but I continue to feel this is just one more kicking the can down the road instead of getting to the table and talking about things.”
The bill I filed wouldn’t increase spending. It would pay currently employed state and university employees what they are entitled to. They are reporting to work. They should be paid.
On a preliminary trip to Springfield after winning the November election, Governor-elect Bruce Rauner held a press conference to draw attention to some of the gimmicks included in the current State budget, including interfund borrowing.
Mr. Rauner called the plan to use $650 million borrowed from Special State Funds for FY2015 General Funds operations “fundamentally wrong.” The Governor-elect critiqued the practice, known as interfund borrowing, due to the requirement to pay back the funds over the next 18 months and the gap it creates in the FY2016 budget.
Gov. Bruce Rauner has borrowed $454 million from special state funds to help manage cash flow as Illinois begins a new fiscal year without a budget.
The Republican borrowed the money from more than two dozen funds designated for other purposes. The largest amounts came from an account for school infrastructure and a fund to help low-income people pay utility bills.
Rauner, you will recall, refused to tap into that borrowing authority during the spring, demanding instead that lawmakers permanently sweep special funds.
* An e-mail from Mike Schrimpf…
Gives us greater flexibility to manage cash flow without a budget and helps reduce the specter of prompt payment penalties, which the state has routinely faced.
The School Infrastructure Fund is hit for $179 million, LIHEAP will take a $75 million hit, etc.
This is actually not a bad idea on both the governing and political sides of the equation. It will most definitely help the administration keep its head above water for a while as it struggles to pin the blame for the budget crisis on Democratic intransigence.
…Adding… A commenter asks…
Ok. Pardon my ignorance but if the AG says money can’t be spent without an appropriation how can the gov spend this?
They can use this money to pay FY 15 bills, which will help keep some not for profits, etc. afloat.
…Adding More… A valid complaint registered in comments…
(T)hat’s a nice little $450 million hole we’re starting off with in FY ‘17 without even wrapping up FY ‘16, isn’t it?
The governor loves to use the phrase “kicking the can,” and he did just that today.
Again, this is I believe a prudent move, but it’s not anywhere near consistent with even his recent remarks.
* This is, of course, Mrs. Rauner’s group, which makes it newsworthy. From a June 30th press release…
The Ounce of Prevention Fund announced that it has joined a coalition of more than 300 nonprofit organizations across Illinois in calling on Governor Rauner and the General Assembly to work together to pass a fair, adequate and fully funded Fiscal Year 2016 budget before the new fiscal year begins on July 1st. A letter from the nonprofits—representing a cross-section of education, health and human service organizations—was hand delivered today to Governor Rauner, Speaker Madigan, President Cullerton, Leader Durkin, and Leader Radogno, along with many other legislative and administrative leaders. The letter highlights the devastating impact budgetary inaction has and will continue to have on the nonprofits and the children and adults who rely on their programs and support, as well as those services provided directly by the state.
Nonprofit organizations are the backbone of the delivery of state services to families who rely on childcare assistance; individuals with physical, developmental, and/or intellectual disabilities; senior citizens; children and adults with mental illnesses; individuals with HIV; and many more. In addition to the services nonprofits provide on behalf of the state, community-based organizations are significant contributors to the local economy, employing thousands as well as buying goods and services from other local businesses. With July 1st quickly approaching and no state budget in place, nonprofits across the state have no choice but to contemplate and, in some cases execute, plans to terminate services, lay off staff and close service sites.
“When the state government is in a stalemate, it is our most vulnerable citizens and the organizations who serve them that pay the highest price. But these children and families, and these organizations, are our friends, our families, our neighbors, our communities. When they suffer, we all pay the price in the short- and long-term,” said Elliot Regenstein, senior vice president of advocacy and policy, Ounce of Prevention Fund. “Already we are seeing the consequences of not having a fair, fully-funded budget, with partners like Family Focus and Easter Seals Central Illinois reducing or making plans to reduce staff and services. They are just two organizations of the hundreds being forced to make these difficult, devastating decisions.”
Family Focus offers a wide range of family support programs for children and families, plus outreach, referral and crisis services at 7 direct service centers in low-income communities throughout the Chicago metropolitan area.
“If the state does not have an approved budget on July 1, we will have to immediately suspend services to more than 3,600 people and lay off 50 staff. Working families cannot afford continued cuts—they need these critical supports to effectively contribute to our economy,” said Mariana Osoria, center director of Family Focus - Nuestra Familia.
The impact of the budget impasse will be felt throughout the state. For example, Easter Seals Central Illinois will have to suspend its Child and Family Connections-Early Intervention service coordination if there is no budget in place by July 1. According to Jim Runyon, executive vice president of strategic initiatives, governmental affairs, & grants, the organization will have to furlough 37 staff and 1,600 families and their children will see their Early Intervention support services suspended until a resolution is reached.
To learn more about the urgency to pass a budget that serves all of Illinois, including the sustainable revenue needed to fund the programs families need, and to view the complete letter, please visit theOunce.org.
Discuss.
…Adding… From an e-mail…
Rich,
In addition to my role as Voices’ Policy and Advocacy Director, I also run the Responsible Budget Coalition (along with Dan Lesser at Shriver.)
I want to let you know that the Ounce has been a part of the RBC since its inception. They have been a major player in all of our work, and there has never been a departure from our pro-responsible budget, anti-cut position. The Ounce has always stood strong with the entire RBC in our belief that families and communities do not function in silos, and cannot be bifurcated into line items that can be eliminated or reduced.
That’s why the Ounce, along with Action for Children, Voices and the Latino Policy Forum, officially testified against all of governor’s proposed budgets, including the K-12 budget—taken as a whole, cuts it hurts families and communities.
To see the Ounce’s position on revenue, one only has to look at everything the RBC has said. They are an active member of the group, and their knowledge base is vital to our success.
Just want to make sure that’s clear—this is not a new development.
Thanks.
Emily
Emily Miller
Policy and Advocacy Director, Voices for Illinois Children
Co-Coordinator, Responsible Budget Coalition
* A letter from CMS General Counsel Michael Basil to the governor’s general counsel discusses how the state will determine eligibility for Fair Labor Standards Act designations for all state employees. That was a critical aspect of the 2007 government shutdown employee payroll case, you will recall. The comptroller argued at the time that state agencies just didn’t have time to put the data together.
CMS’ Basil claims it would take nine to twelve months to accomplish the task…
(M)y office reasonably estimates that it would take approximately nine to twelve months at current staffing levels to determine with the required degree of accuracy the FLSA status of the approximately 45,000 employees who perform work for the State of Illinois under the jurisdiction of the Governor’s Office.
So, they may be able to convince a judge to go along again and order paychecks to be issued. We’ll see. The last judge was mighty reluctant. Then again, no judge wants to be put into a position like that.
* The governor has said he would veto a temporary budget, and I’m not sure that the House Democrats have enough people in town to muster the 71 votes on their own, but it might put the GOP on the defensive a bit…
On the eve of a possible government shutdown, Democrats in Springfield are considering a $2.2 billion, one-month budget to fund select, critical services, the Chicago Sun-Times has learned.
Documents obtained by the Chicago Sun-Times show Democrats are considering funding “Tier One” services, including:
Probationary spending to pay for GPS tracking of sex offenders
Community-based services for the mentally ill.
A slew of programs through the Department of Human Services
Medicaid money
Subscribers were given a heads up about this earlier today.
Many here often bemoan the loss of Southern Illinois clout under the dome that seems to have faded away with the passing of bygone powerhouse wheelers and dealers – names like Clyde Choate, Paul Powell, Ken Gray, John Gilbert and Bruce Richmond – who built political careers by bringing home the state and federal pork: interstates, institutions, schools, a lake and prisons.
But at the same time, the one local politician who has managed to amass the most influence in Springfield in decades also is the most vulnerable in 2016.
That’s because Rep. John Bradley has hitched his wagon to Madigan – gaining sought-after influence, but at a cost.
Now more than ever, Bradley is facing the high price of power.
Despite repeated attempts to reach him, Bradley declined to speak with The Southern Illinoisan for this story.
The article reports that the Republicans may have found an opponent to take on their top House target next year, Williamson County Commissioner Ron Ellis.
Campbell said he considers Bradley a friend, but still said, “I’m concerned that John’s viewpoints are often too much in line with that of the Speaker, and I don’t think that’s for the best interest of Southern Illinois.” Campbell surmised that Bradley has chosen this risky route because he has aspiration of higher office, which generally requires the backing of the party to win, particularly for a downstater with little name ID in the populous north.
The story, which the Southern Illinoisan put on its front page, is full of such quotes. Go check it out.
“I want to make darn sure you guys are paid, you guys are paid on time, you don’t miss any payroll, and you’re paid 100 percent of your salary, not some lesser amount,” Rauner said. “This is going to be a stressful time for your families. I apologize for that.”
Rauner said his staff was talking with the state attorney general’s office to work out an agreement that mirrors what was done in 2007, when a budget fight spilled into July and workers continued to be paid.
* I asked the attorney general’s spokesperson whether there’d been staff discussions along those lines and, after checking with higher-ups, she called back with a one-word answer: No.
* Here’s the letter, which is packed full of snark from the Snark Prince himself…
Dear Representative Bradley:
Thank you for your recent letter of June 26, 2015. I am pleased to respond.
On June 23, 2015, you convened a hearing of the House Revenue Committee purportedly to review information regarding administration personnel compensation. However, when the hearing convened, you stated that the information in question was not yet available. Following a lengthy recess, a hastily constructed memorandum emerged filled with glaring errors and factual inaccuracies. Specifically, your June 23, 2015 memorandum:
* named Governor’s Office employees who no longer work in the Office of the Governor;
* listed incorrect annual compensation levels for other employees; and
* featured a table in the center of the first page claiming 35 minus 28 equaled 13.
As you may know, 35 minus 28 equals 7. Given your support for a budget out of balance by $4 billion, finding errors in basic arithmetic is not a great surprise.
After receiving your most recent letter, we conducted a review of total personnel compensation costs across all agencies under our Administration’s control. In comparing state payroll records from February through May 2014 to February through May 2015, we found that Governor Rauner spent $4 million less than Governor Quinn on compensation. This data is publicly available through the Illinois Comptroller’s website. Additionally, I would remind you that Governor Rauner does not take a salary or a pension.
While Governor Rauner has taken unprecedented steps to reduce costs, including cutting his own office budget by 10%, you and your colleagues are scheduled to receive an automatic pay raise tomorrow. As you are aware, HB 4225 would prevent legislators’ automatic cost-of-living adjustment from taking effect in Fiscal Year 2016. Without this legislation, you will get an automatic pay raise - and because you voted for and helped enact SB 274 last year, you are guaranteed to be paid even without a state budget. Rather than holding more sham hearings and issuing poorly constructed memorandums, we urge you to bring HB 4225 to the floor without delay.
As always, our Administration stands ready to negotiate in good faith with legislative leaders to reach a bipartisan agreement on Governor Rauner’s compromise proposals. I urge you to come back to the negotiating table so that, together, we can Turnaround Illinois.
With warmest personal regards,
Richard A. Goldberg
Deputy Chief of Staff for Legislative Affairs
Tuesday, Jun 30, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Two recent studies published by NPR/Pro Publica and the federal Occupational Safety and Health Administration (OSHA) show that nationwide, insurance companies have kept any cost savings from recent workers’ compensation “reforms” for themselves, with profits climbing to 18 percent in 2013 – while middle and lower-income families and taxpayers are paying the price.
In 2011 Illinois enacted its own workers’ compensation “reform” package aimed at lowering costs for businesses. Workers gave up longstanding rights and in return, insurance companies were to be transparent with pricing and pass savings along to employers. As it turns out, only the workers kept up their end of the bargain.
The National Council on Compensation Insurance (NCCI) is an independent, non-partisan agency comprised of insurance professionals licensed by the Illinois Department of Insurance to assess workers’ compensation in Illinois and make premium rate recommendations to insurers. Since 2011, NCCI has recommended insurance premium reductions totaling nearly 20 percent.
The 2011 reforms were projected to save insured employers nearly $1 billion assuming the insurance industry would fully adopt the NCCI recommendations.
The insurance industry’s failure to fully implement NCCI recommended rate reductions has prevented Illinois insured employers from realizing any meaningful savings.
No matter how many benefits are cut, medical reimbursements are lowered, and claims are denied, the state’s businesses won’t see corresponding savings without our leaders addressing the promises previously broken by the insurance industry.
Tuesday, Jun 30, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
As a friend to the consumer and trusted partner in their financial lives, credit unions are always looking out for their members’ best interests. When circumstances arise that are beyond the control of their members, credit unions are already there proactively working behind the scenes to provide peace of mind.
Take for instance University of Illinois Employees Credit Union (UIECU). In light of a possible payroll interruption as a result of the current state budget crisis, the credit union has been anticipating their state employee members could need help and has put plans into place to help their members weather the storm. This includes waiving skip payment fees and courtesy pay fees as necessary, as well as waiving early withdrawal penalties of certificate/Christmas club accounts and offering low-interest, short term loans. And UIECU is just one of many credit unions that have stepped up to help their members and consumers during this challenging time.
Credit unions remain true to one principle - people before profits - and represent a highly valued resource by more than 3 million Illinois consumers during times that pose economic and financial challenges.
Rep. Tammy Duckworth’s tumultuous record as Rod Blagojevich’s Director of Veterans’ Affairs and her upcoming trial on charges that she violated state ethics laws are the subject of a newly released Illinois Republican Party digital advertisement entitled “Just Like The Past.”
“Just like Rod Blagojevich, Rep. Duckworth is caught up in an ethics scandal and is headed to trial,” said Nick Klitzing, Executive Director of the Illinois Republican Party. “When Rep. Duckworth sought to fire a whistleblower instead of actually investigating the claims of poor care and abuse of veterans, it demonstrated that she was more concerned with protecting her power, her party and Gov. Blagojevich than doing her job.”
Earlier this month, the Union County Circuit Court set the trial schedule for Rep. Duckworth’s case with pre-trial and motion hearings in August and December and a bench trial in April 2016.
* Legislative Democrats have been holding rallies and other media events the past several days to highlight budget issues…
What started off as a positive rally last week to pull community and social service groups together in a collective voice to oppose budget cuts proposed by Gov. Bruce Rauner turned sour during the final minutes of the event.
The June 25 rally, hosted by members of the Illinois Legislative Black Caucus, drew a standing-room only crowd of concerned citizens and advocacy groups at Austin’s Senior Satellite Center, 5071 W. Congress Pkwy. […]
But as the crowd began to file out after the two-hour rally was winding down, a visibly shaken and emotional Lightford quickly came back to the podium with some unfortunate news: Rauner had just vetoed the budget sent to him by state lawmakers, only a day after signing off on a bill that would provide the funds needed to allow public elementary and high schools to open in the fall.
“At first, it was just a little surprising that the governor would sign the education portion yesterday, and then turn around today and cut the entire bill,” Lightford said. “But it just shows me the selfishness in the way he’s looking to govern, that if we don’t give him everything he wants, then he’s willing to hurt people.”
A Southland mayor referred to the governor as “Rauner Hood” because he’s the opposite of Robin Hood, “he steals from the poor and gives to the rich.”
Also Thursday, State Sen. Michael Hastings, D-Tinley Park, called on the head of the Illinois Department of Human Services to quit while addressing a legislative black caucus rally at South Suburban College, where elected officials detailed the devastating impact of budget cuts on Southland social services.
The next day, at a forum on “The State Budget and Its Impact on the Southland Region” at Governors State University, speakers from the south suburban chapter of United Way and from Voices for Illinois Children talked about Gov. Bruce Rauner’s decision to veto a budget plan that was underfunded by $3 billion to $4 billion. They said the veto would harm local communities by cutting aid to disabled people and single parents who rely on day care and by eliminating summer jobs programs for youngsters.
At each of the forums, people in the audience were encouraged to support tax increases to adequately pay for programs for people in need.
State Rep. Brandon Phelps (118th District) was hot under the collar Monday, June 22, and not just because of the warm temperatures outside the Williamson County Programs on Aging building in Herrin.
“The governor’s making us sweat, too,” said Phelps, a Democrat from Harrisburg, who joined 117th District State Rep.John Bradley, D-Marion, and 59th District State Sen. Gary Forby, D-Benton, at a press conference to discuss their opposition to Republican Gov. Bruce Rauner’s budget plan.
Among the proposed cuts in Rauner’s plan, the three lamented proposals to close Southern Illinois facilities and reduce or eliminate funding for certain rural health care treatments, home energy assistance, in-home care for the elderly and other services.
“The governor should be focused on cutting waste in Springfield and Chicago, not cutting jobs here in Southern Illinois,” Phelps said.
With Illinois just one day away from shutting down services, residents filled a room at the Fountaindale Public Library on Monday night to air concerns to Democrat lawmakers.
Some expressed concern over what could happen to key state services if a budget deal is not struck by the end of Tuesday, while others criticized lawmakers for not compromising with Gov. Bruce Rauner on his reform proposals. […]
Joe Nichols of Shorewood was quick to point out the blame should not fall solely on Rauner, who is six months into his first term and blasted the Democratic Party for years of operating Illinois in the red.
“I think, you, the Democratic Party should hang its head in shame. [Rauner] has a mess on his hands, and who created this mess?” Nichols said. “We’re constantly talking about ‘Oh, Rauner’s cutting this, Rauner’s cutting that. He’s the bad guy.’ … Yet we don’t seem to have the money. Well, I’m going to throw it right back in your lap and ask what are you going to do about it?”
The Supreme Court agreed to reconsider whether it’s constitutional for public sector unions to impose mandatory fees on non-members. The court will hear Friedrichs v. California Teachers Association, which challenges 1977’s Abood v. Detroit Board of Education. That case established the constitutionality of the non-member payments, known as “fair share fees.” It allowed unions to charge such fees “insofar as the service charges are applied to collective-bargaining, contract administration, and grievance-adjustment purposes.”
The Supreme Court has for years upheld Abood. But Justice Samuel Alito said in a 2014 opinion — Harris v. Quinn — that the reasoning in Abood was “questionable on several grounds,” essentially inviting new challenges. That challenge came in Friedrichs, where a group of California teachers sued the California Teachers Association for allegedly coercing them into an “agency shop arrangement” whereby they could decline union membership but were still compelled to pay a “fair share” fee for union bargaining.
Seven Illinois activists participated in civil disobedience late Monday afternoon during a Chicago “Moral Monday” protest against Republican Gov. Bruce Rauner’s proposed budget cuts.
As part of the protest, a few hundred clergy and grassroots activists with Fair Economy Illinois marched from the Thompson Center to 131 S. Dearborn St., the downtown office building of Citadel LLC. The hedge fund firm’s founder and CEO Ken Griffin has given Rauner millions in campaign donations.
Seven protesters, including five religious leaders, were taken into Chicago police custody after refusing to leave the Citadel building lobby, where they held up a banner reading, “Rauner/Griffin. Fair Budget Now! No Cuts! Tax the Rich!” […]
During the demonstration, activists chanted, “Love thy neighbor as thyself. Tax the rich and share the wealth.” They also staged a “die-in” outside the Citadel building while the seven protesters were being put into police vehicles.
* And a text message from a trusted pal who was there…
Preckwinkle at city club this morning: if Rauner can pass my pension bill by the end of this session I will revist the sales tax hike. Said in this mess bc Spfld failed to act.
…Adding… Another text…
And during Q and A about why pension bill failed she said he was nominee at time and called Durkin to pull votes off
* The Tribune looks at the bill to postpone today’s mandated CPS $634 million pension payment for 40 days…
Rauner last week vetoed the majority of a Democrat-passed state spending plan, the exception being a portion that funnels money to elementary and high schools.
Those state aid payments are scheduled to go out Aug. 10, and the pension delay proposal would postpone the massive payment until the same date. The idea was to buy the city some time to cobble together enough money for the payment — an effort that would be helped by the infusion of state dollars — while a broader pension overhaul is worked out.
Such a measure needs 71 votes to pass, which is the same number of Democrats in the chamber. Just 37 voted in favor last time amid opposition from some who didn’t want to be viewed as voting for a pension holiday and others who didn’t want to bow to Emanuel.
Complicating things are questions about whether Rauner has pulled his support from the bill. While he backed the measure last week, he’s since floated an alternative. Under that plan, the state would give CPS an upfront payment of $450 million in grant money that’s normally distributed over the course of the year. The mayor’s office rejected that idea Monday.
16 Republicans voted for the pension delay bill the last time around. But if Rauner bricks that thing, then most of those HGOPs will back away.
* From Gov. Bruce Rauner’s e-mail to state employees yesterday…
Our lawyers are working hard to ensure that all employees will be paid on their scheduled pay dates. The precedent already exists. This is the right thing to do and I will work with union leaders to fight any legal attempts to overturn existing precedent.
* But take a look at this summary of AFSCME’s 2007 suit to force the state to make payroll. It was posted by the SJ-R back in the day. Click here or on the pic for a larger version…
“The Agreed Order was not precedent for any other lawsuit, issue or claim.”
Indeed, as I recall, the Christian County judge told the union not to come back to him ever again. And two years later, in 2009, when AFSCME tried again to force the state to issue pay checks, it did so in St. Clair County.
* The issue in 2007 was the state’s problems complying with the federal Fair Labor Standards Act. Comptroller Dan Hynes and the union argued that state agencies simply did not have the time to figure out who was eligible to receive federal minimum wages under the FLSA.
In 2009, Comptroller Hynes issued a memo to all state agency fiscal officers telling them that they needed to make contingency preparations in case appropriations weren’t approved. The governor’s office balked because of this particular language…
In addition to the traditional certification required by Section 9.03 of the State Finance Act (30 ILCS 105/9.03), the Office of the Comptroller will require additional certification to accompany each FLSA payroll voucher certifying that lawful expenditure authority for the voucher exists in the absence of appropriations. The certification shall be signed and dated by the agency’s chief executive officer, the chief legal counsel, and the chief fiscal officer. The certification shall be as follows:
“I certify, based upon review of applicable law and facts, that lawful expenditure authority exists for the attached voucher(s).”
This additional certification will ensure the proper identification and timely processing of lawful payments. Please be reminded that knowingly and intentionally executing a false certification under Section 9.03 of the State Finance Act shall result in removal from office if done by an officer or discharge if done by an employee (30 ILCS 105/9.06). [Emphasis added.]
The suit was rendered moot when the budget was passed.
* This time around, Attorney General Madigan warned the administration that it needed to start working on this certification process. That warning tipped the governor’s office that Madigan was prepared to oppose AFSCME’s suit like she did in 2009. And that resulted in Rauner’s e-mail yesterday standing in solidarity with AFSCME.
The General Assembly by law shall make appropriations for all expenditures of public funds by the State. […]
The State… shall incur obligations for payment or make payments from public funds only as authorized by law or ordinance.
Yesterday’s announcement by AG Madigan that she would oppose AFSCME’s suit also included this precedent that strongly argues against the governor’s stance…
The Illinois Appellate Court has specifically addressed the issue of whether the State can pay employees in the absence of a budget. During the budget impasse in 1991, a number of State employee unions sued the Comptroller and asked the court to issue an order compelling the Comptroller to issue paychecks due on July 15. In AFSCME v. Netsch, 216 III. App. 3d 566, 568 (4th Dist. 1991), the court held that the Comptroller could not pay State employees in the absence of an appropriation and “any attempt by the comptroller to issue the funds in the absence of an appropriation bill signed into law by the governor would create obvious problems under the separation-of-powers doctrine.” The Netsch court determined that an appropriation was necessary “to prevent government operations from being brought to a complete stop.” Id. at 568-69 (citing People ex rel. Kirk v. Lindberg, 59 III. 2d 38, 42-43 (1974)).
Budget? We ain’t got no budget. We don’t need no budget.
That, with all apologies to the Treasure of the Sierra Madre, sums up Gov. Rod Blagojevich’s view on whether state spending should continue even though Illinois has no budget.
On Tuesday, Blagojevich suggested state Comptroller Dan Hynes keep writing checks regardless of the budget situation, saying the state continues to collect money and it should all work out in the end.
“Refusing to pay state employees for their hard work is tantamount to shutting state government down,” Blagojevich said in a letter to Hynes.
You gotta wonder where the Rauner-leaning editorial boards are gonna land on this one. I’m figuring they’ll just ignore the whole thing.
* The Chicago Teachers Union believes that mass layoffs are coming to the school system, so they agreed to no cost of living raises in contract negotiations, but stuck firm on their evaluation demands. The Tribune has a very good story about what’s going on…
CPS teachers are evaluated by classroom observers, and are ultimately ranked on a four-tier scale: distinguished, proficient, basic and unsatisfactory.
The union said it wants to strike the possibility of teachers receiving an overall rating of “unsatisfactory” if their classroom observation scores land exclusively at the “basic” level. […]
The union said it has suggested lowering the threshold needed for teachers to reach that scale’s “proficient” rating, in order to “address an inconsistency” in evaluations that the union says could lower the scores of solid educators.
“The current evaluation system has a flaw in it, in that the ‘proficient’ band is too narrow,” Sharkey said.
The union says that creates a situation where good teachers who consistently receive good evaluation scores — but an occasional low mark — risk getting downgraded to a “developing” rating.
And, in the context of potential mass layoffs, that downgrade could mean lots of teachers lose their jobs.
