* I told subscribers about this on Monday…
When Gov. Bruce Rauner proposed preventing most property tax hikes as part of his State of the State Address in February, the agenda he released said he wanted to “freeze property taxes for two years.”
But the outline of his plans he’s given lawmakers who are meeting privately to try to craft a state budget no longer makes any reference to the two-year timetable, and a spokeswoman says the governor wants voters to decide if taxes should “ever be raised.”
“The governor’s agenda freezes property taxes and empowers voters to decide via referendum if their property taxes should ever be raised,” spokeswoman Catherine Kelly said. “Illinois has among the highest property taxes in the country and we need to get them under control by empowering voters.”
The outline says local governments wouldn’t be able to ask for more in taxes than they did in the 2015 taxing year, with some exceptions that provide for new construction or government consolidation.
The outline given to lawmakers makes clear that clamping down on property tax hikes is something that will at least be considered as they try to both make a spending plan and debate Rauner’s agenda before their May 31 deadline to make a budget.
At least somebody else in the media is finally writing about these secret meetings. We need more of this, please.
*** UPDATE *** From the governor’s office…
After Governor Rauner addressed the Chicago City Council, he was asked, “give me an example of what Chicago wants and what Illinois needs.”
The governor answered in part:
“Well in terms of what Illinois needs, I have been clear for two and a half years. We need local control, voter empowerment, pro-growth regulations and an overhaul of the government, empowering local voters and taxpayers to get more control of government costs, and that’s laid out crystal clear within our turnaround agenda. That’s what we need, and I’ve said that consistently.”
To be clear, the governor’s top priorities are listed below:
· Term limits
· Property tax freeze
· Allow local control of ability to create employee empowerment zones
· Allow local control of contracting and bargaining in schools and local governments
· Allow local control of competitive bidding on taxpayer-funded construction projects
· Pension reform
· Worker’s compensation/tort/unemployment insurance reform
· Ethics reform/end conflicts of interest in government
The detailed Turnaround Agenda is available at the following link: http://www2.illinois.gov/gov/Documents/CompiledPacket.pdf
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Question of the day
Wednesday, May 6, 2015 - Posted by Rich Miller
* Today is my mom’s birthday. Like most moms, she’s sweet and kind. But she also pushed all five of her sons to succeed. We often didn’t measure up to what she knew we could be, but she’s never once let on that she’s been the slightest bit disappointed in us. We are all in our 40s and 50s, but we are forever her boys.
My dad always says that his sons got their brains from my mom and he’s probably right. Her IQ is off the charts high. She graduated college in three years, second in her class with two kids and one on the way. At one point in her career with the Department of Defense, she inspected nuclear weapons.
Her brains are matched by her tenacity. She’s never quit anything in her life. You can only imagine what she went through as a female civilian employee of the United States Army back in the 1970s. It was at times excruciatingly painful for her, but her job allowed her family to live in Europe and that was that. She wasn’t walking away from that sort of opportunity.
I love my mom for so many reasons, including how wonderful she is with her grandchildren and great-grandchildren. Here she is with a few of those kids…
I respect my mom more than I’ve respected anyone else in my life. She has always set the example which I have tried to follow, with varying degrees of success.
* No question today, but feel free to wish my mom a happy birthday. Thanks.
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[The following is a paid advertisement.]
Newspapers are sounding the alarm about the Exelon bailout bill.
Chicago Sun-Times: “Exelon’s Rate-Hike Proposal is a Bad Bill”
A bad bill in Springfield would raise our electricity bills to protect Exelon’s bottom line. The Legislature should either rewrite it significantly or flick the off switch altogether.
There is a feeling here of a company trying to socialize the risks while keeping the profits private.
Crain’s Chicago Business: “THIS ‘MARKET SOLUTION’ ONLY BENEFITS EXELON”
You know you’ve got a good thing going when profitability is only a bailout away…
Bailouts for profitable enterprises? That’s not the kind of juice that ratepayers should be shelling out for.
Belleville News Democrat: “DON’T FALL FOR EXELON BAILOUT”
Businesses and governments can learn how much the bailout would cost them at www.noexelonbailout.com/calculator.
Just say no to the Exelon bailout. Vote no on SB1585/HB3293.
BEST Coalition is a 501C4 nonprofit group of dozens of business, consumer and government groups, as well as large and small businesses. Visit www.noexelonbailout.com.
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Today’s quotable
Wednesday, May 6, 2015 - Posted by Rich Miller
* The Tribune on Gov. Bruce Rauner’s speech to the Chicago City Council…
Rauner said that south of Interstate 80, the most common response he gets on how to solve the state’s problems is to “secede from Chicago.” The governor noted that he got 20 percent of the vote in Chicago in the governor’s race last November. The governor said seceding would make his life easier, but Illinois “is one state.”
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*** UPDATED x2 *** Today’s numbers: 25-44
Wednesday, May 6, 2015 - Posted by Rich Miller
* From a reader…
Hi, Rich
I saw you’ve had some comments asking if anyone has a tally for the population of the different counties and municipalities that have voted on the Turnaround Agenda… I have been keeping tabs on that.
In my counts, I keep separate columns for tabled and not brought to table, but I calculate them both as tabled. When it comes to the agree/disagree, since the original question is do the local governments agree with the resolution as worded (since changing the wording of the resolution does nothing to change the other 38 pages that they’re actually endorsing), when I figure my percentages, rewrites are added to the “not agree” numbers.
As of this morning, the numbers look like this.
Cities/Townships: (30 that I can find)
POP total yes: 242,608
POP total no: 3,101,085
POP total tabled: 306,908
POP total rewrite: 98,716
POP voted: 3,749,317
% of vote agree: 6.5%
% of vote not agree: 93.5%
Counties: (11 of 102)
POP total yes: 393,740
POP total no: 5,241,000
POP total tabled: 1,041,973
POP total rewrite: 290,666
POP voted: 6,967,379
% of vote agree: 6%
% of vote not agree: 94%
* Municipal entity totals…
Cities/Townships
Yes: 21
Rewrite: 3
No: 18
Tabled: 9
Won’t vote: 2
Counties
Yes: 4
Rewrite: 1
No: 1
Tabled: 4
Won’t vote: 6
So, that’s 25 municipal bodies which have backed the governor and 44 which have either opposed him, rewritten his resolution, delayed a vote (almost always under public pressure) or have refused to vote one way or another.
*** UPDATE 1 *** The reader updated her spreadsheet to reflect the actions I posted earlier today. Numbers in this post have been changed to reflect the updated list Her new spreadsheet is here.
*** UPDATE 2 *** From a labor leader…
The number we use is only 21 municipals out of 1,300. A batting avg of .01%. Which is just a little better than the Cubs World Series Batting Avg for the past 108 years.
Heh.
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* Here we go, campers…
The Republicans are caucusing until 12:15. Watch our live session coverage post for constant updates.
*** UPDATE *** AP…
Democratic House Speaker Michael Madigan presented the proposal Wednesday even though members of his caucus largely oppose the budget plan that would balance the state budget entirely by slashing spending. Medicaid would be cut by $1.5 billion. Mental health and addiction treatment programs would also see cuts.
Madigan says the vote is intended to “facilitate consideration” of the next year’s budget. […]
House Human Services Appropriations Chair Greg Harris says Rauner’s proposal attempts to balance the budget “on the backs of the most vulnerable.”
“Facilitate consideration”?
Hilarious.
*** UPDATE 2 *** None voted yes, Democrats went “No” and Republicans went “Present.” The bill is here.
*** UPDATE 3 *** Rep. Greg Harris…
When the House reconvenes, I will start presenting my 16 amendments undoing the Governor’s proposed budget cuts to homeless youth, autism, childcare, senor services, disabilities, supportive housing, substance abuse, early intervention and many other programs.
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Fisking Exelon’s latest ploy
Wednesday, May 6, 2015 - Posted by Rich Miller
* This press release has it all…
SPRINGFIELD, Ill. (May 6, 2015) – Hundreds of supporters gathered at the Illinois State Capitol to urge the General Assembly to pass the Low Carbon Portfolio Standard (LCPS) (HB 3293 & SB 1585), delivering over 10,000 petition signatures to legislative leaders in support of the bill. A press conference hosted by the Byron Chamber of Commerce preceded the rally and called for passage of the legislation by the full Illinois General Assembly.
“The Low Carbon Portfolio Standard is an all-of-the-above energy strategy that will help preserve our nuclear energy facilities and is critical for our economy,” said Senator Donne Trotter (D-Chicago), a sponsor of the bill. “This legislation will help prevent the loss of up to 8,000 jobs, support zero and low carbon energy sources to maintain our national leadership in low carbon energy, and will help ensure we have the energy we need as a state.”
Well, it has it all except for the name of the corporate entity behind today’s “rally”: Exelon.
Also, the phrase “support zero and low carbon energy sources” should be changed to a single “source”: Nukes. As we’ve discussed before, the bill is written in such a way that Exelon is the only company that would qualify for the massive subsidy.
Also, too, anybody wanna bet me 5 bucks that most of those “petition” signatures are from towns with nuclear power plants?
* Let’s read on…
Six nuclear plants in Illinois generate nearly half of the state’s electricity and 90 percent of its carbon-free power.
And yet Exelon is attempting to blackmail the entire state by threatening to shut down at least some of those power plants.
* Continuing…
Senator Sue Rezin (R-Peru), a chief co-sponsor of the legislation, thanked the broad coalition of supporters gathered in Springfield, and highlighted what’s at stake if some of Illinois’ nuclear plants close, which may occur without legislative action.
“Energy leaders, economists, environmentalists, small business owners, labor unions, community groups and residents from all corners of the state have gathered to send a message of support for Illinois’ nuclear plants,” said Rezin.
Substitute “energy leaders” with “Exelon execs.”
* And environmentalists too? Hmm…
“If any of our nuclear plants close it will impact everyone in Illinois – not just the plant communities – through higher energy rates, the loss of up to $1.8 billion in economic activity every year, 8,000 lost jobs and a less reliable energy grid. The best way to prevent their closure and these costs is to enact the Illinois Low Carbon Portfolio Standard.”
The LCPS is technology-neutral, allowing low carbon energy sources – including wind, solar, hydro, clean coal and nuclear – to compete on equal footing. The legislative proposal was one of the market-based policy solutions recommended in a January 2015 report by four Illinois state agencies that studied the economic and environmental benefits of the state’s nuclear energy facilities, and the potential costs of the early closure of the three most at-risk plants.
“We’re talking about almost 8,000 job losses alone if these plants close,” said Michael Carrigan, President of the Illinois AFL-CIO. “Our current energy policies don’t properly value the jobs, the reliability, the energy diversity and the carbon-free power that nuclear energy provides.”
Doug O’Brien, Executive Director of the Illinois Clean Energy Coalition (ICEC), stressed the urgency of the situation and the environmental benefits of nuclear energy for Illinois.
“In addition to the well-documented economic benefits of these plants, we must put a value on nuclear’s environmental benefits,” said O’Brien. “We can never hope to meet our goals for carbon reductions and make progress towards a cleaner environment if we abandon clean nuclear and increase our reliance on fossil fuels.”
As mentioned above, Exelon’s bill shuts out other alt energy producers.
* But, hey, we’ve found our “environmentalists”! Or maybe not. Guess who sits on the Illinois Clean Energy Coalition’s board?…
Marshall Murphy
Vice President, Exelon Generation
Dr. Phil O’Connor
Former Chairman, Illinois Commerce Commission
Kim Maisch
State Director, National Federation of Independent Businesses
Murphy and Maisch are self explanatory. O’Connor was a utility friendly ICC chairman back in the day.
Most of the rest of the board members are local officials in towns with nuclear plants.
* More…
The LCPS proposal includes strong consumer protections, including a consumer price cap that would limit the impact to a 2.015 percent increase, or about $2 per month for the average Illinois residential electricity customer. A separate customer rebate provision would provide a direct bill credit to customers if wholesale electricity prices exceed a specified level.
Hooray! Exelon is pro-consumer! Except the Citizens Utility Board strongly favors an alternate plan.
* Continuing…
“Investing in our nuclear plants is good for our economy, for Illinois businesses and residents,” said Omar Duque, President and CEO of the Illinois Hispanic Chamber of Commerce. “Without these nuclear plants, we’ll lose billions of dollars in economic activity across the state. In addition, electric outages could occur more often and their lost generation could send power prices skyrocketing during peak demand. The Low Carbon Portfolio Standard is needed to prevent that possible outcome and encourage investment in Illinois.”
The state agency report found that closing the three at-risk nuclear energy facilities would result in $1.8 billion each year in lost economic activity, 8,000 job losses, and cost as much as $1.1 billion each year due to increases in carbon and other pollutants. According to a PJM analysis in the report, the plant shutdowns would result in up to $500 million annually in higher energy costs statewide. It concluded that, “Illinois’ continued economic success depends on maintaining low and stable electricity prices — and those low and stable prices depend on the continued operation of all nuclear generating stations located in Illinois.”
“The simple fact is, this is not a utility issue, this is a state issue,” said George S. Tolley, President, RCF Economic & Financial Consulting and Emeritus Professor of Economics, University of Chicago. “The nuclear plant closings would lead to significant losses in economic activity and jobs. The way our legislators respond will have long-term ramifications for the future of Illinois.”
Roderick Hawkins, Vice President of External Affairs for the Chicago Urban League, highlighted the importance of having a reliable supply of energy in Illinois. “When we need energy the most, especially during extreme weather, our homes and businesses are largely powered by nuclear energy,” said Hawkins. “The grid operator for northern Illinois has said it won’t be as reliable if the plants close. We can’t ignore this issue any longer.”
Minority group leaders are always an integral part of any utility-related PR bonanza. It’s been that way for years.
RCF Economic & Financial Consulting has done some work for ComEd in the past.
Also, Exelon is asking for $350 million in subsidies, which isn’t all that much lower than the “up to $500 million annually in higher energy costs” projected from plant closures.
* And, finally…
The negative impacts of closing the three at-risk nuclear plants would be especially pronounced in the local plant communities and regions of our state, according to local officials.
“Nuclear plant closings could be disastrous to the environment and the Illinois economy, but for me it’s even more personal than that - it’s the jobs, the families, the schools, the libraries, our police and firefighters who will be devastated by the closing of plants, including Byron,” said Deanna Mershon, Executive Director of the Byron Chamber of Commerce. “It’s the very fabric of our community that will be forever and irreparably harmed. Combined with the other adverse consequences of failing to act, I can’t imagine that the Illinois Legislature will fail to pass a Low Carbon Portfolio Standard and preserve these plants for all Illinoisans.”
Firefighters?! Nooooo!!!
Actually, Ms. Mershon is probably right. It’s not like Byron has any other major industrial property tax payers on the rolls. A plant closure would devastate that town.
So, instead of all this public blustering, how about everybody sits down and works out a compromise before doomsday hits?
[Headline explained here.]
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More corrections needed
Wednesday, May 6, 2015 - Posted by Rich Miller
* From the AP…
In a story May 3 about legislation to privatize much of the work of the Illinois Department of Commerce and Economic Opportunity, The Associated Press misattributed a quote criticizing the plan. The quote should have been attributed to Ralph Martire, executive director of the Center for Tax and Budget Accountability, not to Ron Baiman, who is no longer with the organization.
* But that wasn’t the only problem with the AP’s story…
Gov. Bruce Rauner says his plan to privatize the state’s economic development agency will improve job creation in Illinois. But similar plans in other states and even in Chicago have sometimes raised concerns about transparency and oversight, with taxpayers not always knowing how their money was being spent. […]
In Chicago, concerns have been raised about a lack of transparency at the publicly funded, not-for-profit World Business Chicago. Mayor Rahm Emanuel chairs the organization.
The Michigan Auditor General in 2013 found that the Michigan Economic Development Corporation significantly overstated job creation, essentially taking companies’ word.
In Ohio, JobsOhio has faced a series of problems. Among them was $5.3 million in state funding given to the agency without the Legislature’s knowledge and criticism of Republican Gov. John Kasich for filling board seats with campaign contributors.
In Indiana, a federal audit last year found that a company contracted by the Indiana Economic Development Corporation improperly funneled almost half million dollars to a business run by the contractor’s chairman. Questions also have been raised about some job-creation numbers reported by the IEDC.
* The Illinois Policy Institute’s news service raises some legit objections…
(A)n Associated Press article compares the not-yet-created board to other public-private economic development agencies in Chicago and other states as not being transparent or providing true follow up on job creation numbers.
Illinois’ measure, however, would require the board’s decisions to be approved by DCEO, all board meeting minutes and copies of final agreements and tax incentives for companies will be publicly posted and subject to the Freedom of Information Act, and operations will be reviewed by the Auditor General every two years. […]
House Bill 574 made it out of the Executive Committee last month and remains in the Rules Committee.
Not including that info in the original story was very odd.
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House Dems ignored real reform needs
Wednesday, May 6, 2015 - Posted by Rich Miller
* Yesterday’s House “committee of the whole” dealing with workers’ comp was clearly lopsided in favor of injured workers…
For several hours Tuesday, workers who were hurt on the job told legislators how their injuries and loss of income had turned their lives upside down. Some had lost their homes or their retirement and are permanently disabled.
John Coffell, who was hurt on the job in Oklahoma, had to go on food stamps and send his three kids to live with relatives because Oklahoma had cut workers’ compensation benefits.
“There are people just like me here in Illinois that will pay the price if you choose to go down the same path that my state did,” Coffell said.
Republicans criticized the hearing as unbalanced, saying there wasn’t enough input from the business community. They also said they weren’t even proposing some of the changes Democrats were criticizing, such as cutting the amount of benefits workers with legitimate workplace injuries receive.
That last point is crucial and correct. Yes, it was good to finally hear from actual working men and women, but the Republicans’ argument was well made.
* Tribune…
Laurie Summers, a nurse who described being injured at a workplace in Indiana, said she was at the Capitol to explain “why I would never recommend anyone to work in the state of Indiana,” citing its workers’ compensation laws.
Employers who pay into the system were represented only briefly, when a pair of panelists from the Illinois Manufacturers’ Association urged some changes.
Greg Baise, president and CEO of the manufacturers group, said he wants medical costs under workers’ compensation to be lowered, contending that coverage in Illinois pays thousands more for typical procedures like hernia and knee surgery compared with private or government health insurance plans.
“Quite frankly, we may not want to be Indiana when it comes to the value that we place on certain injuries like the loss of a body part,” Baise said. “I would not recommend that. But we do want to be competitive so that the high cost of workers’ compensation does not drive companies out of this state.”
Baise is right.
* More…
Although Illinois has dropped from third to seventh for states with high workers’ compensation rates after reforms in 2011, it’s still higher than its neighbors, including a rate more than double Indiana’s. He said the higher rates are, the more likely jobs will continue to move out of state.
“Ask the families in Danville, ask the families in Blue Island, Illinois, ask the families in the Quad Cities that lost jobs,” Baise said. “Those companies have moved to other states.”
Even with 2011’s reforms which reduced costs by more than $400 million, Baise said the state has more to do in reducing fees to doctors and hospitals to put them on par with Medicare and private insurers. He said Illinois’ unlimited medical benefits are unsustainable.
“There’s no such limitation in that,” he said. “Chiropractic visits, physical therapy and others, we think there ought to be limitations on those and it would bring down medical costs.”
The other issue facing businesses is when someone aggravates an old injury while working. Right now, workers only need to show a one percent cause of injury from work to sustain a claim.
* Greg Hinz before the hearing…
(I)n this year’s Springfield fighting, changes in workers’ comp are considered the low-hanging fruit, much more achievable than, say, term limits for lawmakers, “right to work” legislation, limits on union political contributions or huge budget cuts, which Rauner also wants.
I thought the very same thing.
Oops.
* House Republican Leader Jim Durkin delivered a letter to Speaker Madigan last night asking him to call a second committee of the whole “that focuses solely on the impact workers’ compensation reform would have on employers and job creators in Illinois.”
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Gov. Rauner to speak to Chicago city council
Wednesday, May 6, 2015 - Posted by Rich Miller
…Adding… Click here for a live video stream of today’s council hearing.
* Give the guy credit. It takes some serious stones to venture into that weird belly of the beast…
In what appears to be a first for the state, a sitting governor will address the Chicago City Council.
Gov. Bruce Rauner on Wednesday will address the Chicago City Council to pitch the leadership on his pro-business agenda.
NBC Chicago was told that Rauner requested the appearance. City Council leadership agreed to suspend rules to allow the governor to address the body.
* Sun-Times…
“Governor Rauner was born near Wrigley Field and loves Chicago. He recognizes that the City of Chicago and State of Illinois both face unprecedented financial and economic challenges. He looks forward to discussing ways he can work together with the city to find solutions that will turn around the city and the state,” the governor’s spokesman, Mike Schrimpf, said in an email to the Chicago Sun-Times.
Right-to-work zones are not the only point of contention with a City Council filled with pro-union Democrats.
So are Rauner’s doomsday budget cuts that would cost the city, the CTA and Chicago Public Schools hundreds of millions of dollars they can’t afford to lose.
And so is the governor’s warning that the Chicago Public Schools could be staring down the barrel of bankruptcy.
I’d venture a guess that most city council members will hear a speech unlike anything they’ve ever heard today.
* Tribune…
News of Rauner’s planned speech came after he spoke to about 200 people Tuesday at the Chicago Family Business Council in Little Italy, where he acknowledged the financial problems of Chicago and its public schools but said no bailouts were coming from Springfield.
“The city of Chicago’s in deep, deep yogurt. And they need, the taxpayers of Illinois are not going to bail out the city of Chicago. That’s not happening. Not going to let that happen.” Rauner said. “That said, I can, as the governor, can do a lot of things to be helpful, to help this city get its feet back under it. I look at the numbers for the public school system in Chicago and I don’t see how it can ever fund their pensions and fund their pension deficit.”
Instead, Rauner urged the group to contact local political leaders to support nonbinding resolutions endorsing the governor’s “turnaround agenda.” That’s something Emanuel and the City Council have adamantly opposed, in part because it calls for weakening union power and wages and the creation of so-called local right-to-work zones free from union mandates.
“My view is, the City Council, help us get structural change at the state level,” Rauner said of Chicago aldermen. “I’ll help you get structural change in the city that I can authorize as governor so you can get your house in order and the state can get its house in order and we’ll all be better off.”
Even so, the timing is odd. Today is the last day of the lame duck council session. Several new aldermen will soon be sworn in.
* Fox Chicago…
Underscoring how difficult it will be to solve the crisis, leaders of the Chicago Teachers Union plan to hold a news conference shortly after the governor speaks.
Chicago Public Schools face a $1.1 billion shortfall, which is more than 16 percent of their entire budget. At the contract bargaining table, CPS apparently asked teachers to pay more into their pension fund.
Union leaders called it a wage reduction in an angry press release, “The Board has demanded a 7 percent pay cut from our members. The CTU is highly insulted.”
This may sound familiar to those who recall the teacher’s strike three years ago. But it may be different this time, because the teachers can’t go on strike if the schools don’t open for lack of money this September.
Yikes.
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*** UPDATE *** According to AFSCME, Middletown unanimously approved a pro-union resolution last night. Click here to read it.
[ *** End Of Update *** ]
* Nothing yet from the governor’s office. From the Illinois AFL-CIO…
Yesterday, the Rauner anti-worker resolution failed in a Grundy County Board committee for lack of a second to pass the motion. Thank you working families of Grundy County.
City of Ottawa passes a pro-worker resolution tonight. Another strong message sent to the governor.
Tonight Litchfield rescinds approval of Rauner resolution, then votes it down. Great job by union and community in Montgomery County.
* Charleston also rescinded its pro-Rauner resolution…
City Council members put a revised version of the “Supporting Local Government Empowerment and Reform” resolution on file for public inspection during their meeting Tuesday.
However, several residents asked the council to consider dropping entirely the resolution, which supports but does not enact parts of Gov. Bruce Rauner’s proposed right-to-work zones.
The council voted to rescind the original document and place the new document on file for public inspection. It’s available on the city’s website under “City Council and BZAP Video and Agendas;” the revised resolution will not be officially voted on for two weeks. […]
The revised resolution removes a paragraph focused on local control of collective bargaining and changes one paragraph concerning the prevailing wage, removing the term “prevailing wage” and replacing it with a statement saying state policies hinder locally owned businesses who employ local residents from bidding on local contracts, thus reducing the bidding pool.
* Ottawa…
Two proposals in Gov. Bruce Rauner’s Illinois Turnaround plan were opposed by the Ottawa City Council on Tuesday.
Proposals for right-to-work zones and the local repeal of the Illinois Prevailing Wage Act “would create a ‘race to the bottom’ that would reduce the pay of our community’s workforce and, therefore, harm the local businesses dependent upon local customers,” according to “A Resolution to Protect the Middle Class,” unanimously passed by the council. […]
Provisions of the Ottawa resolution include:
“Passage of a local ‘right-to-work’ ordinance would undoubtedly generate legal challenge that our government would have to fruitlessly defend at a significant cost to our taxpayers.”
“Prevailing wage laws create a level playing field for local construction contractors by forcing out-of-state contractors to bid on projects based on the skill and efficiency of their workplace, not how far they can drive down wages and benefits.”
“By benefiting local contractors, prevailing wage laws greatly increase the likelihood that construction workers from our community will be employed on the projects that their tax dollars and those of our other taxpayers fund.”
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Question of the day
Tuesday, May 5, 2015 - Posted by Rich Miller
* Gov. Rauner is to his “Turnaround Agenda” as Speaker Madigan is to ____?
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[The following is a paid advertisement.]
When it comes to clean air energy in Illinois, nuclear energy is a true powerhouse. Nuclear energy generates more jobs and more income than any other energy source. For every 1,000 MW generated, nuclear employs 500 people – more than twice as many as any other electricity source – with good-paying, middle class jobs. Nearly 90% of the carbon-free, clean air energy consumed in our state comes from nuclear energy, and the industry supports 28,000 jobs right here in Illinois.
But three of the state’s six nuclear plants are economically challenged and at risk of being shuttered prematurely because of outdated energy policies. According to a recent State of Illinois report, these premature closures would result in the loss of nearly 8,000 jobs.
According to an April 2015 report by the Illinois Power Agency, that is more than 10 times as many permanent jobs as have ever been created by the next leading source of low carbon energy in Illinois.
The permanent good-paying, middle class jobs generated by nuclear energy are the key to sustainable communities. We must act to preserve out state’s nuclear facilities.
Members of the General Assembly, vote yes on the Illinois low carbon portfolio standard (HB 3293 / SB 1585).
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* The Tribune has more on the proposed Chicago casino…
Within the past 10 days, Emanuel held three meetings at his fifth-floor City Hall office to pitch the idea of a Chicago casino and discuss the city’s government worker pension challenges, a source familiar with the discussions said. The mayor had a joint meeting with House Speaker Michael Madigan and Senate President John Cullerton, a second meeting with Rauner and a third with Republican legislative leaders, the source said.
Under Emanuel’s vision, the city would own the casino and keep all profits beyond paying an operator to run the facility and whatever taxes it might owe the state. All of the state’s current casinos are privately owned and the cities in which they’re located make money from local taxes based on how much the casinos make.
* As usual, reporters up there are all over this thing…
The governor stated he knows that “Chicago would very much like to have a casino within the City boundaries,” and he said he is “Very open to considering it.” And, while noting that he is not a “fan of gaming,” he said for the second time this morning that he is “open to considering gambling expansion, whether it is for the city of Chicago or other places [in the state].” Moreover, the Governor noted, “A casino certainly can be a job creator and a tax revenue generator, so those are both two good things.” […]
And then, prompted by yet another question on the “Media’s topic du jour,” the Governor said essentially for the third time within a few minutes, “I will be very open minded to working closely with the City [of Chicago] and with communities around the state to discuss this gaming issue and try to come to some resolution fairly promptly.” He did, however, duck an invitation to weigh in on whether, if there is a Chicago casino, he supported it being State owned or Chicago owned.
The Governor concluded his discussion of this topic, in response to yet another gaming question, by noting that his team was “Studying strategically the gaming industry and looking at the revenue and volume of activity.” He said, “You know you can’t just expand gaming to the sky and get the same benefit relative to the cost. So, you’ve got to be thoughtful and we should look at what maximizes the benefit to the people of Illinois– and try to come to that as the solution.”
* But…
While Rauner didn’t slam the door shut Monday, he also hinted that gambling legislation could get caught up with his own ambitions to win wide-reaching pro-business changes and scale back union power.
“As part of anything else that we talk about, we want to get our turnaround agenda done,” Rauner said when asked if he would require Emanuel’s support for some portions of his agenda in exchange for a Chicago casino.
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[The following is a paid advertisement.]
My name is Susan Males. In 2011, I was a healthy, vibrant woman in her mid-40’s. I was experiencing some irregular heartbeats and it was recommended that I have a cardiac catheterization procedure to determine the cause.
I was assured by my referring doctor that this procedure was done by the cardiologist daily. They told me I’d show up to the hospital in the morning, they would do the procedure and I’d be home resting comfortably by lunch time. There was no talk of what could happen, no talk of any risks to this procedure.
I only briefly met the cardiologist who would be doing my procedure. I put my faith in this doctor because he did so many of these “routine” procedures on a daily basis. I trusted him and assumed he knew what he was doing.
As I awoke after the procedure, I was very, very nauseous with an excruciating headache and my vision was very foggy, to the point where I could not see. My “routine” procedure had turned into something much more. I later learned I suffered a stroke after the procedure and it took over 12 hours for someone to recognize the signs. Had the hospital’s staff recognized that my symptoms were consistent with a stroke, my condition could have been treated and I would have returned to my normal self.
Unfortunately, my vision loss is permanent, preventing me from being able to drive and my future earnings potential has been limited.
I turned to the civil justice system to seek recourse. I wanted to hold the doctors and hospital accountable for their lack of response to my stroke symptoms. Using the civil justice system allowed me closure to this difficult time in my life, and has given me the resources to help me live my life the best I can.
To read more about Susan, click here.
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* Sun-Times…
Regional Transportation Authority Chairman Kirk Dillard on Monday made the case for a new tax to help pay for mass transit infrastructure, arguing the agency has a more than $30 billion backlog in projects. […]
“Our gas tax has not been raised in Illinois since 1990. Its buying power today is 60 percent of what it [was], it’s not adjusted for inflation. And our infrastructure in Illinois is crumbling,” Dillard said. “My case on behalf of mass transit is we know for every dollar spent on mass transit, there’s a $4 return.” […]
“I’m open for any place to go for the needed infrastructure money. But if Gov. Rauner and the Legislature broadened the sales tax base in Illinois, sales taxes are a major component of RTA funding and it just makes sense that we be part of the broadening of the sales tax,” Dillard said. “I would gladly trade Springfield’s funding for an ability to have a permanent, stable revenue source either through a sales tax or a service tax.” […]
Asked if Rauner would warm to the idea of a tax to benefit mass transit in Illinois, a spokesperson responded: “Gov. Rauner supports investing in the state’s infrastructure but believes government reform is essential before revenue can be discussed,” spokeswoman Catherine Kelly wrote in an email. “Uncompetitive bidding is costing taxpayers millions of dollars every year, and we need to drive value in our capital projects.”
* Hinz…
Even though RTA is very cost-efficient compared with its peers, the agency will “get out a pencil” to change things further if need be, he said, mentioning the possibility of establishing public-private partnerships and getting venture capital involved. “Whatever the cut, we have to handle it.”
But the capital situation is truly dire, Dillard continued. Illinois’ 19-cents-a-gallon gasoline tax for transportation needs is barely worth half of what it was when it was established in 1990, he noted, and the federal 18.4-cents-a-gallon levy has lost 39 percent of its buying power since 1993.
“More than 20 states have initiatives pending to increase their gas tax or sales tax on gasoline or in some way fund transportation,” he said. “Even the folks in Iowa—Iowa—approved a (10-cent-a-gallon) fuel tax. And Los Angeles passed a referendum to fund mass transit.”
Dillard said ridership and property values along the CTA’s Brown Line have risen far more than citywide figures since it was rebuilt a decade ago.
* Meanwhile…
As Congress struggles to renew the federal transportation law and Illinois considers revenue options for transportation, a new report from the Illinois Public Interest Research Group and Frontier Group finds that drivers currently pay less than half the total cost of roads, and argues that while increasing gas taxes could fill the shortfall, it would leave other problems unaddressed.
The new report, “Who Pays for Roads? How the ‘Users Pays’ Myth Gets in the Way of Solutions to America’s Transportation Problems” exposes the widening gap between how we think we pay for transportation – through gas taxes and other fees – and how we actually do. […]
The new report pulls back the veil on the “users pay” myth, finding that:
· Gas taxes and other fees paid by drivers now cover less than half of road construction and maintenance costs nationally – down from more than 70 percent in the 1960s – with the balance coming chiefly from income, sales and property taxes and other levies on general taxpayers.
· General taxpayers at all levels of government now subsidize highway construction and maintenance to the tune of $69 billion per year – an amount exceeding the expenditure of general tax funds to support transit, bicycling, walking and passenger rail combined.
· Regardless of how much they drive, the average American household bears an annual financial burden of more than $1,100 in taxes and indirect costs from driving – over and above any gas taxes or other fees they pay that are connected with driving.
“The ‘users pay’ myth is deeply ingrained in U.S. transportation policy, shaping how billions of dollars in transportation funds are raised and spent each year,” said Tony Dutzik, co-author of the report and Senior Analyst at Frontier Group, a non-profit think tank. “More and more, though, all of us are bearing the cost of transportation in our tax bills, regardless of how much we drive.”
The full report is here.
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Rauner asks foreign countries for biz input
Tuesday, May 5, 2015 - Posted by Rich Miller
* Tribune…
Foreign companies considering investment in Illinois are turned off by the state’s high taxes, its aging infrastructure and its lack of vocational training for the next generation of skilled workers, according to a survey of countries released by the state Monday.
The survey focused on 10 nations that are the state’s largest trading partners and was aimed at getting an independent assessment of the state’s competitiveness, according to Gov. Bruce Rauner’s office, which conducted the survey. […]
A major concern cited in the survey was the state’s level of corporate and property taxes, and the fear that they could rise given the state’s dire fiscal problems.
“There is persistent budget uncertainty for companies in Illinois,” one nation wrote. “Companies want stability in tax and regulatory framework, especially if they are building a manufacturing site and thus committing to the state for a period of time.”
* From the report…
• “Top Concern: tax issues-too high, property & corporate, worries about further increases due to financial condition of the state”
• “There are large (and growing) perceptions that infrastructure improvements are not keeping up”
• “Foreign firms place a premium on opportunities to “cluster” – to work with concentrations of talent in their sector”
• “The plethora of universities, research institutions & accelerators headquartered in the region constitute a significant positive – firms and entrepreneurs are drawn here by the world-class innovation taking place”
• “Chicago is attractive to college students – which therefore enhances the quality of the workforce pool”
• “Vast difference in perception between Chicago and downstate Illinois. While the former has plenty of positives, the latter is not seen to be competitive with Indiana, Wisconsin, etc.”
• “Costs in particular linked to Unions are high. It’s a problem, especially with Wisconsin and Indiana as neighbors – if there is a legal dispute with workers….Cook County is known for being anti-boss or pro-employee”
• “Right to Work is being used by other states to position them favorably compared to Illinois. This is similar to other labor market regulations and workers compensation, unemployment insurance levels, etc. that put Illinois at a disadvantage compared with other states”
• “The manufacturing workforce is aging and vocational training for the next generation of skilled employees is lacking”
• “Chicago is one of the most expensive trade show locations in the world. Being an expensive/bureaucratic trade show location often carries over to the state being perceived as a high cost/bureaucratic location for investing”
• “Illinois overseas offices are primarily focused on exports not investment attraction, which is two very different tasks”
• “Many states have modernized their structure by founding Economic Development Corporations tasked specifically with pursuing investors”
So, they want a modern, highly educated workforce pool, but think workers are paid too much. Great. They also want better infrastructure, but complain about taxation. Wonderful.
But it is interesting that our overseas offices are too focused on exports and not on attracting investments.
Any other thoughts?
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Medicaid - Know The Facts
Tuesday, May 5, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
Oppose $810 million in proposed FY 2016 hospital Medicaid cuts because:
• Hospitals did take a $27 million hit to address the FY2015 budget gap by paying an additional $27 million in assessments to the State – effectively the same as a cut.
• Hospitals are targeted for MORE THAN HALF – $810 million – of the Governor’s proposed overall Medicaid cut of $1.5 billion – even though they are only about ONE THIRD of the Medicaid budget.
• Drastic hospital cuts will mean:
o The loss of critical health care services like pediatrics, obstetrics, and mental health for everyone, not just Medicaid patients.
o Working families and businesses will have to pay more for health care.
o The loss of more than 12,800 jobs and $1.8 billion in economic activity statewide.
• $1 billion in Illinois hospital Medicaid cuts have been imposed since 2011.
• $1.9 billion in Illinois hospital Medicare cuts have been imposed since 2010.
• As a result, 40% of hospitals across Illinois are operating in the red.
Cutting Medicaid in the FY2016 budget is shortsighted and will result in real harm to people and communities.
For more information, go to www.TransformingIllinoisHealthCare.org.
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Giving back to its members – A Credit Union Difference
Tuesday, May 5, 2015 - Posted by Advertising Department
[The following is a paid advertisement.]
As financial cooperatives, credit unions function as economic democracies. Because of their cooperative structure, earnings are returned to members in the form of lower loan rates, higher interest on deposits, and lower fees. When credit unions – both large and small — exceed expectations, their members share even more in those benefits.
Hershey Robinson, $2.8 million, 500-member employee-based credit union, is one of many that provide extra value. Most recently, the credit union delivered more than $12,000 in gift cards to members as an International Credit Union Week “Thank You”. This was a first-of-its-kind giveaway for this credit union and very well-received by its members – as well as its volunteer board of directors which unanimously approved the initiative.
In Illinois, by most recent estimates credit unions annually provide nearly $205 million in direct financial benefits to almost three million members. Credit unions like Hershey Robinson ECU exemplify how these crucial institutions play a vital role in delivering that value.
Credit unions remain true to one principle - people before profits - and represent a highly valued resource by consumers.
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Revenue options detailed
Tuesday, May 5, 2015 - Posted by Rich Miller
* From a press release…
A new report by the Fiscal Policy Center at Voices for Illinois Children shows that lawmakers can avoid cutting services for families and communities by choosing to raise revenue.
By allowing income tax rates to roll back in January, lawmakers created an over $6 billion hole in the state budget for next fiscal year. So far, Governor Rauner has maintained deep cuts that hurt children, families, and communities are necessary to balance the budget.
But the Fiscal Policy Center report highlights a broad range of available revenue options, and shows that Governor Rauner and lawmakers have many choices they can make to avoid cutting services for children with epilepsy and autism, police and fire protection, and in-home services for seniors and people with disabilities that help keep them out of expensive nursing homes.
Choosing to invest in children, families, and communities is the best thing we can do to propel our state toward economic prosperity. That’s why lawmakers and the Governor must choose to develop new revenue instead of cutting the services that make Illinois families and communities strong.
* The full report is here. Revenue options…
Which ones do you like/hate the most?
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The hazards of outsourcing
Tuesday, May 5, 2015 - Posted by Rich Miller
* WSIU…
After spending nearly 65 million dollars… Governor Bruce Rauner’s campaign has been assessed a penalty by the State Board of Elections.
Director Steve Sandvoss confirms it’s because of a late report filing … but says he can’t give details.
“In light of fairness to the respondent and due fairness principles, we don’t comment publicly on the nature of an ongoing proceeding. But rather, we’ll let the process bear itself out.”
A spokesman for the governor says there was a “snafu.” He says a firm hired to file contributions paperwork prepared a report … but failed to upload it. The mistake was corrected eight hours later.
Hilarious.
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Talking past each other
Tuesday, May 5, 2015 - Posted by Rich Miller
* Finke…
Senate President John Cullerton said Monday it’s time for Gov. Bruce Rauner to focus on budget talks and spend less time promoting his “turnaround agenda.”
Speaking to The State Journal-Register editorial board, Cullerton, a Chicago Democrat, repeated his belief that the spending plan the Republican governor submitted to lawmakers is wildly out of balance and could result in significant cuts to education and human services unless he opens a discussion for bringing in additional state revenue. […]
“It seems ever since the governor proposed his budget, there was an assumption he actually had a budget that was balanced,” Cullerton said. “That’s not even close. There’s his take-it-or-leave it turnaround agenda, which has nothing to do with the state budget. Let’s refocus on the budget.”
* But the governor believes the Turnaround Agenda is an integral part of balancing the budget…
“The governor is committed to reforming the broken structure of state government so taxpayers get value for their money,” Rauner spokesman Mike Schrimpf said Monday. “Absent reform, the governor is prepared to implement a balanced budget without new revenue. Major reforms are essential or whatever balanced budget we craft this year will be undone by special interests and insider deals. The structural reforms outlined in the Turnaround Agenda are absolutely necessary.”
Reneging on the $26 million “Good Friday Massacre” cuts probably undercut the governor’s threat to “implement a balanced budget without new revenue.” If he can’t stand the heat from $26 million, how’s he gonna deal with the massive meltdown caused by a $6 billion cut?
I get a bunch of press releases every day about the governor’s proposed FY 16 budget, which, as Cullerton rightly points out, is full of gimmicks and holes. But, even so, there are some astonishing programmatic slashes…
Advocates and state lawmakers will hold a press conference on Wednesday, May 6, to call on the full legislature to reject Governor Bruce Rauner’s FY 2016 budget plan to eliminate pre-school, medical care, and other specialized services at the Chicago-based Children’s Place Association.
The pre-school, located in Humboldt Park, serves 73 Chicago-area toddlers struggling with HIV/AIDS, epilepsy, autism, spina bifida, and other medical conditions.
Yeah, let’s kick autistic HIV-positive toddlers off the public dole. Why don’t they just “Get a job”?
* Then again, one reason he backed off those cuts is because it was obvious that legislators believed he had broken a deal. He’d damaged his ability to negotiate a FY 16 deal, so it was walked back.
* But, back to the problem described in the headline. Rauner is right that addressing the state’s budget problems involves more than just working out appropriation line items. The state absolutely needs some structural changes. The state and the City of Chicago spend a fortune on workers’ comp, for instance. Some reforms there could most definitely ease their fiscal burdens.
And growth is another issue where Rauner is right. If we want revenues to grow, the state’s economy has to grow at a much faster rate. Again, let’s look at workers’ comp…
In all, the [2011 workers’ comp reform law] saved Illinois employers $315 million during the first few years they were in effect, according to the state workers’ compensation commission. Employers say that’s nowhere close to the minimum $500 million a year in savings billed by then-Democratic Gov. Pat Quinn when he signed the measure into law.
That’s $315 million in total savings versus a promised $2 billion.
* I’ve made no bones about the fact that the governor’s “right to work” idea is stupid and harmful and I told that to the governor’s face (using as many f-bombs as I could muster, btw). And while he may go too far with some of his workers’ comp ideas, he’s not wrong about everything. Our workers’ comp system is a disaster.
From the governor’s office…
Illinois currently has the 7th highest workers’ compensation costs in the country, more than double neighboring Indiana:
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Your daily “right to work” update
Tuesday, May 5, 2015 - Posted by Rich Miller
* Nothing yet from the governor’s office, but the Edwardsville City Council voted down Gov. Rauner’s “right to work” resolution last night. I didn’t see any news coverage, but this is from a local resident, who is also a commenter here…
About a hundred union members showed up. (The pic was taken about 6:45 and it got so crowded that people filled the hall outside the chamber). Five people were allowed to speak (of which I was one and all five were local people).
At first the Mayor explained that they would discuss the measure then table it. Several of the council members during their discussion advocated voting immediately. They made a motion to table the agenda, but the council voted that down! They then called for a vote with brief discussion (the conservative members grousing about not getting to table the issue. Obviously this was not the plan) They then proceeded to vote the Agenda down. All was civil but you could tell the Mayor Patton was [upset] and embarrassed.
I can honestly say all the union folks I saw there were local and many if not most I recognized. Not a Rauner person in sight, although the three conservatives all mentioned that they had just spoken to the Rauner folks.
The pic…
* From the Illinois AFL-CIO…
Evanston unanimously rejects Rauner anti-worker resolution tonight.
Girard City Council votes down Rauner anti-worker resolution 4-1 tonight.
* From Evanston Now…
Jason Hays, of 712 Dobson St., a member of Evanston Firefighters Local 742, said the governor cried for shared sacrifice, “but left it to workers to do the heavy lifting.”
He said the governor’s proposal for “right to work” legislation would create a “‘right to work’ — for less — less representation, less safety, less protection and less equity.”
Alderman Ann Rainey, 8th Ward, calling the governor’s proposal “wrongheaded,” moved that the Rules Committee reject the endorsement resolution and send a copy of the video of public comment at the meeting to the governor.
“We should stand by the people in the audience tonight,” Rainey added.
Her motion was approved on a unanimous roll-call vote.
* Meanwhile, in Rockford…
Union workers rallied Monday outside City Hall to protest the City Council’s support of Gov. Bruce Rauner’s “Turnaround Agenda.”
A divided council endorsed Rauner’s plan April 20 in an 8-5 vote on a nonbinding resolution. Workers at the rally want aldermen to reconsider their support of the plan, which includes reforming pensions, eliminating unfunded mandates, creating right-to-work zones and eliminating statewide prevailing wages on government contracts.
It’s the proposed right-to-work zones that earned the ire of ralliers. They say right-to-work laws are bad for the economy because they drive down wages for all workers. Nearly 300 people from several local labor groups attended the rally.
A pic from the protest…
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