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*** UPDATED x1 - Rauner react *** AG Madigan seeks dismissal of Rauner’s fair share suit

Monday, Mar 9, 2015 - Posted by Rich Miller

* From a press release…

Attorney General Lisa Madigan today filed a motion to intervene in Governor Bruce Rauner’s federal lawsuit that challenges the constitutionality of “fair share” fees as allowed under the Illinois Public Labor Relations Act. Madigan issued the following statement outlining her role in this litigation:

“Last month, Governor Rauner issued an Executive Order seeking to stop the payment of ‘fair share’ fees used to support non-political union activities such as contract administration and collective bargaining. On the same day, he also sued over two dozen unions in federal court in anticipation of a legal challenge to his Executive Order in state court.

Last week, the unions filed suit in state court seeking to prohibit Governor Rauner from implementing his Executive Order and breaching their contracts and to restore the ‘fair share’ fee payments.

Today, I filed a motion to intervene in the federal lawsuit to defend the constitutionality of Illinois’ law. Along with the motion to intervene, I have submitted a motion to dismiss the case, arguing that the Governor does not have the legal authority to sue to challenge the law in federal court.

As Attorney General, it is my job to represent the state and defend our laws when their constitutionality is challenged in court. Because the Governor’s case questions the validity of the Illinois Public Labor Relations Act, I moved to intervene to provide the court with arguments regarding the law’s constitutionality.”

The motion is here. The accompanying memorandum is here.

*** UPDATE *** Lance Trover…

“As expected, the Attorney General filed a motion in federal court to defend so-called ‘fair share’ union dues in state government, which is why the Governor pro-actively asked the Attorney General’s office to allow the Governor’s office to use pro bono outside counsel. The Attorney General’s actions will have no impact on the Governor’s efforts to protect taxpayers and state employees who don’t want to pay forced union dues.”

…Adding… From AG Madigan’s memorandum

[Madigan’s] motion emphasizes the following points. First, the Governor may not use this suit as a preemptive strike against an anticipated state court law suit against him for violating state law in which he could assert federal law only as a defense to the state-law claims. Second, the Governor is not complaining of any violation of his own First Amendment rights, but instead has claimed the ability to vindicate the First Amendment rights of other persons who are not before this Court. Third, the Governor is inappropriately asking a federal court to declare the scope of his authority to issue executive orders under state law.
.

  40 Comments      


*** UPDATED x4 - Rauner response *** Cullerton: Rauner budget “unworkable” and “unconscionable”

Monday, Mar 9, 2015 - Posted by Rich Miller

* AP

The Democratic leader of the Illinois Senate says Gov. Bruce Rauner’s proposed budget is “as unworkable as it is unconscionable.”

Senate President John Cullerton spoke Monday in Chicago. He says the new Republican governor’s spending plan would hurt the middle class by cutting programs such as public transportation, higher education and substance abuse treatment.

I’ll post more when it becomes available.

*** UPDATE 1 *** The Senate Democrats posted some background info and some videos here.

*** UPDATE 2 *** From Lance Trover…

President Cullerton has met with the Governor repeatedly and has had every opportunity to discuss any issue he wants, including the ongoing negotiations between his office and the Governor’s Office over the $1.6 billion budget hole Governor Rauner inherited. It’s unclear why President Cullerton seems intent on undermining a bipartisan agreement to clean up the fiscal mess that Senate Democrats created.

*** UPDATE 3 *** Sun-Times

“His budget hurts middle-class families. Gov. Rauner sees the budget as merely a math problem. I see the people behind those numbers, people struggling to get ahead,” Cullerton, who leads the Democrat-controlled Senate, said as he one-by-one ran through Rauner’s proposed slashes to health and human services, foster care, higher education and transportation programs.

“I probably could have saved a lot of time and simply told you who’s not hurt in this budget. There’s the wealthy. And then there’s the corporations. The only cuts they received were to their tax rates. This budget is not the shared sacrifice he promised in his inauguration speech,” Cullerton said. […]

“To be fair, there were some bright spots in the governor’s budget. For instance, Gov. Rauner fully embraces President Obama’s Affordable Care Act. It’s a bold move given that so many of his GOP counterparts are talking about repealing Obamacare should they end up in the White House,” Cullerton said. “And I applaud the governor for making early childhood, elementary and high-school education a priority. He proposed a nearly $500 million increase in education funding. He didn’t tell you how he pays for it.”

*** UPDATE 4 *** Even though he said it before the Rauner response, this is basically a response to the governor

“We haven’t actually sat down and had a meeting where the leaders and the governor talk about our (2015) budget,” Cullerton told reporters after making remarks to the City Club of Chicago. “We’ve had our staff people do it. So maybe that’s what they do in Washington or the private sector, but … we haven’t had an actual negotiation.” […]

The way Cullerton describes the situation, Democrats are just waiting for an invitation from Rauner.

“He hasn’t scheduled one, and he’s the governor,” Cullerton said.

  120 Comments      


Question of the day

Monday, Mar 9, 2015 - Posted by Rich Miller

* The Apple Watch. Will you buy it? Take the poll and then explain your answer in comments, please.


online polls

  72 Comments      


Could Illinois import Kentucky’s union idea?

Monday, Mar 9, 2015 - Posted by Rich Miller

* The BGA has an interesting story about what’s behind Gov. Bruce Rauner’s local “right to work” zones idea….

The concept of right-to-work zones has been pushed nationwide by the American Legislative Exchange Council (ALEC), a conservative policy group that drafts model legislation.

Jon Russell is director of ALEC’s program for cities and counties. Russell said that in Kentucky, where ALEC has advised leaders, the measures are meant to cover private sector workplaces like the General Motors Corvette plant in Warren County, the first in the country to pass such an ordinance. […]

Brent Yessin is a Florida attorney who started lobbying and nonprofit organizations promoting right-to-work zones. Proponents will be pushing the zones in Ohio and Pennsylvania, along with Illinois, he said.

“It is a grassroots locally driven process,” Yessin said. “It’s not a cookie-cutter approach. I can’t just take what I did in Kentucky and do it in Illinois. But still there are some lessons that are applicable. It’s a movement that will continue to grow.”

* The Kentucky legislature refused to pass a right to work bill, so some locals did it on their own

The governor could push state legislation meant to enable the local right-to-work laws. Or individual municipalities and counties could pass such ordinances without state legislation. But federal labor law says only states or territories can pass right-to-work legislation, and unions have promised to sue if local bodies try to do it on their own.

In Kentucky, where six counties have passed such legislation, Attorney General Jack Conway, a Democrat, issued an opinion on Dec. 18 that stated the measures violate federal law. Last month a group of labor unions sued regarding the ordinance passed in Hardin County, Kentucky.

* So, keep that in mind when reading this

[Director of the Illinois chapter of the National Federation of Independent Business] Kim Maisch thinks legal challenges to right-to-work zones would be unfair.

“We’ve seen organized labor try to pass a lot of things via ordinance at the local level,” like minimum wage laws and responsible bidders ordinances; those issues are covered under different federal laws than union organizing.

“We find it ironic they oppose the other side utilizing that route,” she said.

  48 Comments      


Absolute pensions

Monday, Mar 9, 2015 - Posted by Rich Miller

* Pension reform proponents are doing a great job of getting their singular message out to editorial boards. Here’s the Dispatch-Argus: “Why Illinois pension clause cannot be ruled absolute”

Rep. Elaine Nekritz, one of the architects who built SB 1, is among those who believe that the authority exists in the right circumstances for the state to curtail those benefits and, if the case against SB 1 is judged on that basis, it would stand. […]

And the court’s ruling in this case could have impact well beyond our own state borders. SB 1 supporters we spoke with, including Rep. Nekritz, said that if the high court provides absolute protection for pensions it “will mark a sea change here and everywhere” because virtually every constitutional provision going back to the Civil War has been found to have limitations through reasonable police powers. For example, standards for search and seizures, the power of eminent domain, the right to bear arms and the free speech rights we already mentioned.

A number of friend-of-the-court briefs offered by constitutional scholars and others detailed the case law that supports upholding such powers regarding pensions. Because justices agreed to expedite the case, those briefs will not be part of the written record, but Ms. Madigan should have no trouble proving the state’s case regarding the need to exercise police powers in the current pension crisis, particularly given that the state’s pension clause makes clear that pension agreements are contractual and therefore subject to contractual law.

We believe that if they view all of the evidence, justices will see that doing nothing about pensions is the equivalent of shouting “fire” in that crowded theater and the fallout will be more than this financially troubled state can stand.

* The Southern Illinoisan: “Pensions and Absolutes”

In reality, few absolutes are really that, and even our most well-known federal amendments to the constitution have restrictions. Our First Amendment right to free speech is not absolute – as evidenced in the oft-quoted “can’t yell ‘fire’ in a crowded movie theater” scenario. Our Second Amendment right to keep and bear arms is restricted each time we go through airport security. And the Eighth Amendment “absolute” prohibition of cruel and unusual punishment allows capital punishment to be decided on a state-by-state basis.

And yet, Judge Belz chooses the state pension funding provision of the Illinois State Constitution as an absolute. We don’t think so.

* Sun-Times

Is the pension clause in the state Constitution, which protects benefits from being impaired or diminished, so absolute and so ironclad, that it trumps all else? In a world of severely restricted public resources and the state’s staggering $110 billion unfunded pension liability, should pension payments always be first in line, ahead of schools, prisons and social services?

A powerful constitutional argument says no. The argument, which we hope will prevail, says that the state’s pension clause is not absolute, that it doesn’t trump all else. In extreme circumstances such as those we find ourselves in today, benefits can — and should — be reduced. Public employees unfairly carry the burden on this, but the law leaves their benefits largely intact while scaling back annual cost of living increases. Most important, the law greatly reduces a very real risk of insolvency for the state’s pension funds, which would be far worse for a retiree. […]

The unions refuse to entertain this view, saying there can be no exceptions. That absolutist view leads to the second, equally convincing argument. In constitutional law, there is no such thing as an absolute right, a right that isn’t subject to exception or cannot be regulated, as a group of law professors wrote in a brief to the Supreme Court. Even the country’s most highly cherished rights – the First Amendment right of free speech and the Second Amendment right to bear arms — are subject to limits. The language is absolute, but the practice never is, with every right potentially subject to regulation for pressing reasons.

* Madeline Doubek

“Constitutions are always subject to interpretation and I think, historically, have not been considered to be absolute,” [Rep. Elaine Nekritz] said, citing the U.S. Constitution’s right to bear arms as one of those examples that show a provision “replete with restrictions.”

* From the Illinois Times

The state points out that prior to the 1970 Constitutional Convention that enacted the pension clause in question, pension benefits were considered “gratuities” that could be changed at any time. Madigan’s office says the convention delegates created a layer of protection around benefits by ensuring they would be considered a contractual relationship. The state claims all contracts are understood to be changeable.

“If the pension clause really bars the state’s exercises of its police powers under every possible circumstance, no matter how dire the consequences, then the ‘contractual relationship’ the clause creates is unlike any other contractual relationship ever recognized in American law,” lawyers for the state wrote.

Madigan’s office is careful to say that accepting the contract theory won’t lead to lawmakers using it to justify slipping out of other contracts at will. The state lawyers claim that police powers only apply in certain circumstances, although they don’t address the threshold for triggering those powers.

* But, unlike everybody else, the IT takes the counter-claims seriously

“What we are trying to merely say,” convention delegate Henry Green said in 1970, “is that if you mandate the public employees in the state of Illinois to put in their five percent or eight percent or whatever it may be monthly, and you say when you employ these people, ‘Now, if you do this, when you reach sixty-five, you will receive $287 a month,’ that is, in fact, what you will get.”

The plaintiffs further bolster their argument by citing a letter from then state Sen. E.B. Groen to delegate Green. In the letter, Groen claims Green’s proposal for what would later become the constitution’s pension clause was “inflexible” and “would only serve to curtail the powers of the Legislature and limit its authority.” Groen urged Green to revise the clause by making the protection “subject to the authority of the General Assembly to enact reasonable modifications .…” Green rejected the idea, and Groen’s proposal was never presented to the rest of the delegates. […]

Illinois’ pension systems have been underfunded since at least 1917, the plaintiffs say, noting that the state commission tasked with overseeing the systems at the time said they were “moving toward crisis” due to insolvency caused by “financial provisions entirely inadequate for paying the stipulated pensions when due.” In 1969, the year prior to the Illinois Constitution and its pension clause being adopted, the state pension systems were only funded at about 41.8 percent, the plaintiffs say. By 2013, when the law in question was passed, the systems were funded at 41.1 percent.

The state’s pension systems have always had enough money available to pay their existing retirees. Instead, pension underfunding refers to the systems’ inability to pay now for all current and future benefits – a distinctly unlikely scenario that would only arise if all existing employees retired at once and began drawing a pension. Illinois’ underfunding is still considered a problem, however, because most other states can cover a significantly higher percentage of their current and future pension obligations, making Illinois look bad by comparison. […]

One of Rauner’s proposed changes hinges on defining benefits as only those already accrued, excluding future benefits yet to be earned. However, Rauner’s plan may be undercut by the plaintiffs’ arguments in the existing pension lawsuit. The plaintiffs cite Constitutional Convention delegate Helen Kinney, who said in 1970 at the convention: “All we are seeking to do is to guarantee that people will have the rights that were in force at the time they entered into the agreement to become an employee ….”

While I agree that this pension clause is unlike any other pension clause or contract, it was purposely drafted to be as rigid as possible. The whole intent behind the clause was to prevent the GA and the governor from doing exactly what they ended up doing with SB1. Delegates rejected a mandate on full government funding, but the clause they adopted was seen as a way of scaring the politicians into doing the right thing. Obviously, it didn’t work.

* And while you can accurately say that all other constitutional rights are limited, that’s because of the way they’re drafted. Here’s the First Amendment

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Let’s take the “freedom of speech” example since it’s cited so often by SB 1 proponents. The founders did not explicitly define what free speech actually is. That’s implicitly left up to Congress and the courts.

Now, the Illinois pension clause

Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.

“Membership…” is what it is. And while “enforceable contractual relationship” may be left open to some interpretation, “the benefits of which shall not be diminished or impaired” is clearly not. It’s gonna be really tough to get around that crystal clear language and its obvious intent.

  103 Comments      


*** UPDATED x1 - No longer chastened *** “Chastened” Schock hit with yet another taxpayer-funded travel scandal

Monday, Mar 9, 2015 - Posted by Rich Miller

* Schock and ten staffers at Manhattan’s Palace Hotel on the goverment’s dime. How delightful

Rep. Aaron Schock, R-Ill., took at least 10 of his House staffers on a $10,053 taxpayer-funded trip to New York last September, where most of them had few official duties, the Chicago Sun-Times has learned.

Schock was in New York for events on Sept. 27 and 28 connected to Indian Prime Minister Narendra Modi’s visit to the U.S. — and given the latitude House members have with their taxpayer allowances – not at issue is whether Schock personally conducted official business.

But a Sun-Times examination has revealed that most of the Schock staffers — who worked in Peoria or Washington — did almost no government work during their taxpayer-funded weekend in New York. […]

He did attend two events where Modi spoke, so some staff assistance is justifiable. Of the three other Illinois lawmakers who also traveled to New York to hear Modi speak, none brought staff with them for that speech.

Sheesh.

Go read the whole thing. There’s an interesting Caterpillar angle as well.

* Meanwhile

A chastened U.S. Rep. Aaron Schock said Friday that he had fallen short on how his office handled record-keeping, and personally on the “out of touch” perceptions he’s created of his travel, as he moved to try to contain a burgeoning scandal into his travel and expenses now in its second month.

At a hastily called outdoor news conference at his campaign office in Central Peoria, the fourth-term lawmaker announced he would be hiring third-party firms to handle his official congressional office spending records and campaign records moving forward. He also said he has hired an East Peoria-based CPA firm to review his office procedures to find other areas that might be falling short. […]

“I know that when I take a trip, and I post photos online, it can create the misimpression of being out of touch, or an image that is not worthy of my constituents,” he said. “I have tried to balance being a young congressman and doing things differently and more open with maintaining a level of seriousness on the issues of the day. I know some days I have failed at this.”

“I get the optics,” he said. “I get the fact that for a lot of people that seems out of touch and unnecessary. So without a doubt I’ll be thinking twice about using that [private charter flights] mode of transportation, and the result will be we’ll have to schedule accordingly and continue to do my best to get to as many places as possible.”

*** UPDATE *** Well, he’s no longer chastened

The Chicago Sun-Times reports Schock made the September trip for events connected to a U.S. visit by the Indian prime minister. But the newspaper says most Schock staffers did almost no government work there.

Schock told reporters Monday it was a “very legitimate trip” and that he was “honored” his staff could be there.

  63 Comments      


Rauner sits for a revealing portrait

Monday, Mar 9, 2015 - Posted by Rich Miller

* Gov. Bruce Rauner sat down with the Wall Street Journal for a wide-ranging and highly flattering profile

Mr. Rauner, a self-made multimillionaire, offered to raise private money for the renovation, but he was told that donations could not be accepted for a state building. “I said, ‘I’m trying to save the taxpayers millions of dollars,’ ” he tells me. “ ‘Why can’t I put in some money? The roof, the basement, the elevator—I’ll fix it.’ They said no.” By the same token, when Mr. Rauner informed the bureaucrats in Springfield upon his election that he didn’t intend to take a salary as governor, he says he was told, “we have to send you a salary, and you can send it back.”

OK, first of all, I’m not sure why he was told that they couldn’t use private money to fix up the mansion. They handle private money at the mansion all the time. Maybe I’m wrong here, but it puzzles me.

Secondly, the “bureaucrats” aren’t responsible for this salary thing. It’s in the Constitution. Emphasis added

Officers of the Executive Branch shall be paid salaries established by law and shall receive no other compensation for their services. Changes in the salaries of these officers elected or appointed for stated terms shall not take effect during the stated terms.

* Back to the story

When we meet, the governor is coming off his Feb. 18 budget address, in which he laid out a slate of tough-love reforms: cuts to state transfers to local governments, adjustments to government employees’ health plans, and structural changes to public-union pensions. The howling from Democrats has been fierce, but Mr. Rauner isn’t backing down. “I’ve been involved in a lot of turnarounds,” he says. “A key lesson in a turnaround is go big, go strong, go fast early. You don’t wait around; you don’t think about it; you don’t wonder.”

The governor was sworn in on January 12th. Today is the 57th day of his administration. Other than the budget, which is chock full of holes and gimmicks, and despite all his big talk about right to work laws, he has yet to propose and then publicly get behind a single piece of legislation.

* Onward

(T)hough Illinois is a deep-blue state, Mr. Rauner feels he has a mandate.

I’ll let you discuss that point.

* And

This month justices will hear arguments on whether a 2013 law cutting retirees’ annual cost-of-living adjustments passes constitutional muster. Whatever the justices decide, Mr. Rauner says, his plan will go forward, even if he has to pass a constitutional amendment by referendum to allow the changes. “I don’t have a Plan B,” he says. “I have a Plan A.”

He’s amazingly confident in his abilities, isn’t he? He thinks he can get three-fifths majorities in both chambers to put an amendment on the ballot? Wow. Rep. Elaine Nekritz, by the way, told Rick Pearson over the weekend that she could only make it about half way through the article, and the “I don’t have a Plan B” was a big reason for that.

* No surprise

“Everywhere I look inside state government, the unions have been running the process, dictating the terms, setting the work rules and setting the agenda inside government,” Mr. Rauner says. “The taxpayers, school children, businesses, homeowners, small business owners have been abused and left out of the process.”

* And finally

As the state’s annual budget debate gets under way, Democrats are pushing for tax hikes. Some of the legislators want higher fuel taxes. Michael Madigan, speaker of the state House of Representatives, is pushing for a 3% surcharge on millionaires. “Talk about a flow of job creators leaving the state if they put that in,” Mr. Rauner says.

The governor is most definitely a supply sider. He’s got the lingo down pat.

  108 Comments      


Rauner appoints “squeaky clean” prison director

Monday, Mar 9, 2015 - Posted by Rich Miller

* From a press release…

Governor Bruce Rauner announced today he has selected Donald Stolworthy, 54, of Arlington, Va. to lead the Illinois Department of Corrections as its next Director. Stolworthy brings 15 years of corrections experience to the position and is a recognized expert in corrections reform.

Currently, Stolworthy works at the U.S. State Department in the Bureau of International Narcotics and Law Enforcement Affairs (INL) as a Corrections Team Leader. He conducts assessments of foreign prison systems to see how the United States can help transform those systems and further U.S. strategic interests. Stolworthy is also the senior corrections subject matter official at the INL and routinely provides policy guidance to senior State Department officials and Assistant Secretaries of State.

Stolworthy also managed the construction of all five prisons in Iraq as the Deputy Director of Operations and Warden Adviser while working for the State Department and U.S. Justice Department. The construction of those prisons was completed on time and under budget by $8 million. In this position, Stolworthy also advised and mentored the Iraqi warden and deputy warden on the best correctional practices.

Stolworthy’s career in corrections began in 1999 as a Probation and Parole Officer with the Alaska Department of Corrections. He was promoted three years later to Deputy Commissioner of Operations where he oversaw a number of reforms to make the department more efficient. For example, he created the position of Chief Time Accounting Officer, revised sentence computation policy to reflect statutory changes, improved accuracy of sentence computations and reduced the department’s liability.

In addition to his corrections experience, Stolworthy worked as the Special Assistant to the Governor of Alaska, as a legislative aide to a member of the Alaska House of Representatives and as the Division Director of the Alaska Charitable Gaming Division.

Stolworthy graduated from the University of Wyoming with a bachelor’s degree in history. He also went through Probation and Parole Officer Basic Academy in Alaska.

He seems pretty darned qualified.

* And the feds believed he was so honest that they recruited him for a sting operation. From a 2007 AP story

A former deputy commissioner of the Department of Corrections was revealed as a government informant during the corruption trial of former state Rep. Tom Anderson. […]

Frank Prewitt, a former Corrections commissioner and later a consultant for Cornell Industries, Inc., a firm that develops and operates private prisons, testified that he worked with Stolworthy in 2004 to develop a compromise on competing legislative bills to build a new prison.

One measure could have led to a Cornell prison in Whittier. The other, supported by the administration of then-Gov. Frank Murkowski, pushed a state-run prison in the Matanuska-Susitna Borough.

Prewitt testified that Stolworthy told him he was worried about losing his job because of union opposition to a private prison.

Prewitt said he assured Stolworthy that “people would be there for him” if that happened. Prewitt told jurors that Stolworthy eventually sought money as a sort of insurance policy if he lost his job.

Stolworthy did so because the FBI asked him to, FBI spokesman Eric Gonzalez said Saturday. Stolworthy was working for the FBI as a “cooperating witness,” he said.

“We approached him out of the blue,” Gonzalez said. “We asked for his help and he said he’d be glad to help us.”

Stolworthy “was squeaky clean,” Gonzalez said.

  19 Comments      


A bump in the road

Monday, Mar 9, 2015 - Posted by Rich Miller

* My weekly syndicated newspaper column

Gov. Bruce Rauner has met with dozens of state legislators both individually and in small groups since his election. By all accounts, every meeting has been cordial and he has scored lots of points with legislators who aren’t accustomed to this sort of gubernatorial attention.

Until last week, that is, when he had the Senate Black Caucus over to the mansion for breakfast.

Things started out well enough, but they turned south in a hurry when Rauner said he couldn’t accept the Senate super-majority party’s stand-alone proposal to patch about $600 million of the current fiscal year’s $1.6 billion budget deficit with transfers from special state funds. He wanted, he said, an “all or nothing” solution.

Rauner repeatedly said he wouldn’t raise taxes to solve this year’s budget problems and therefore absolutely needed to make big cuts. Legislators should “trust me,” Rauner said. “We don’t know you,” was their reply.

And since his proposed budget for next fiscal year, which begins July 1st, demands huge cuts to major social programs, why should they trust him to not go after those same cherished programs in this year’s budget if they give him the carte blanche he is demanding to make whatever reductions he desires?

The governor in turn warned the legislators that up until now he’s been blaming former Gov. Pat Quinn for this mess, but if they didn’t give him what he wanted he’d start blaming the General Assembly. Threats don’t often work too well with that caucus, to say the least.

You may recall that Gov. Rauner’s public criticism of the Senate Democrats after they moved their budget fix bill out of committee last week was pretty harsh. “After weeks of detailed negotiations, including three hours yesterday morning,” Rauner’s spokesman said via a press release, “it is clear that Senate Democrats are more interested in playing politics than solving this problem.”

But Rauner was told by Caucus members that as far as they knew there had been no “real” negotiations. Instead, Rauner’s staff has been meeting with legislative staff. But that staff has no authority to approve any agreements. The legislative “budgeteers” (appropriations committee chairmen) have so far been eliminated from the process. And they, along with the chamber leaders, are the only ones who can negotiate any deals, particularly in the Senate.

Indeed, a spokesman for House Speaker Michael Madigan said last week that his boss did not view the staff talks as “negotiations.” Instead, he said, staff is listening to the ideas presented by the governor’s budget folks and is offering advice on what is doable and what has to be changed to be legal and what isn’t legal.

And speaking of the House, the governor also accidentally stepped on a land mine during the meeting. Rauner had met with a few members of the House Black Caucus the night before, and he chastised the Senate Democrats for not working with him like the House has been.

As anyone who has ever visited with African-American state Senators undoubtedly knows, there is no more “anti-House” group in their entire chamber than the Senate Black Caucus.

“We’re not the House,” the governor was informed.

Making matters somewhat worse, failed African-American Chicago mayoral candidate Willie Wilson showed up in Springfield the day before and asked Senate President John Cullerton to convene a Senate Black Caucus meeting with him that very day.

Wilson essentially offered himself up as a conduit to the Republican governor, whom he supported last year. One member did give him a list of items on her wish list and he apparently took it to the governor. Rauner told the Caucus that he’d read the list and could support almost everything in it for next fiscal year, but he would need them to back him 100 percent this fiscal year. His offer was firmly declined.

At one point, the governor’s demands grew so loud and insistent that one Black Caucus member noted aloud that Illinois voters “didn’t elect a king” last year.

Senate President Cullerton has so far avoided the fate of his Democratic predecessors, who almost constantly battled internal caucus intrigue and coup attempts. He has done this partly by listening respectfully to all sides and not proceeding without consensus. Unless those wounds are healed quickly and the governor begins to accommodate opposing views, he is going to have a really tough time with his budget fix.

  55 Comments      


Protected: SUBSCRIBERS ONLY - Various stuff

Monday, Mar 9, 2015 - Posted by Rich Miller

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Monday, Mar 9, 2015 - Posted by Rich Miller

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Reader comments closed for the weekend

Friday, Mar 6, 2015 - Posted by Rich Miller

* Tweedy will play us out

However close we get sometimes

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Judge denies request to dismiss sexual harrassment charges

Friday, Mar 6, 2015 - Posted by Rich Miller

* Erickson

Sexual harassment allegations against former state Treasurer Dan Rutherford can move forward in a politically charged federal lawsuit that helped doom the Central Illinois Republican’s 2014 bid for governor.

In a 29-page decision issued Friday, U.S. District Judge Joan Lefkow denied Rutherford’s request to dismiss former employee Edmund Michalowski’s claim that he was forced to work in a hostile environment.

In a lawsuit filed in February 2014 — five weeks before the Republican primary for governor — Michalowski alleged his former boss grabbed at his genitals in the guest bedroom of Rutherford’s rural Chenoa home and on two occasions grabbed his arm before making sexual comments.

Rutherford, of Chenoa, has denied the charges, but Lefkow said the claims have merit.

“These allegations go ‘beyond offhand comments and into physical assault’ and raise the possibility of severe or pervasive sexual harassment from a speculative to a plausible level,” Lefkow wrote.

Oof.

  14 Comments      


Protected: SUBSCRIBERS ONLY - Updated fundraiser/event list

Friday, Mar 6, 2015 - Posted by Rich Miller

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Unions file motion to dismiss Rauner’s federal fair share case

Friday, Mar 6, 2015 - Posted by Rich Miller

* AP

Unions late Thursday filed a motion to dismiss the case Rauner filed against them in federal court last month.

Rauner wants a judge in Chicago — and ultimately the U.S. Supreme Court — to declare so-called “fair share” dues unconstitutional. He also issued an executive order ending the requirement that nonmembers pay the dues.

The unions’ motion filed in U.S. District Court says the issue should be decided in state court because it’s a question of state law.

* To the motion

The Court must dismiss this action for lack of jurisdiction. The Governor’s claim does not “aris[e] under” federal law within the meaning of 28 U.S.C. §1331, because the federal question the Governor identifies – whether fair-share fees violate the First Amendment – would be raised only as a defense to a state law proceeding to enforce the fair-share provisions. The Governor also lacks standing to bring this suit in federal court because the state law and state contracts do not affect him in his personal capacity.

Alternatively, the Court should dismiss the complaint for failure to state a claim, because fair-share provisions are a constitutional means of preventing free riding in a system of exclusive representative collective bargaining. “The First Amendment permits the government to require both public sector and private sector employees who do not wish to join a union designated as the exclusive collective-bargaining representative at their unit of employment to pay that union a service fee.” Locke v. Karass, 555 U.S. 207, 213 (2009) (unanimous decision).

* The First Amendment issue explained

The only federal issue identified in the Governor’s declaratory judgment complaint is whether fair-share fees violate the First Amendment. That First Amendment issue would arise only as a defense to the Unions’ hypothetical state law action to enforce the fair-share provisions of their contracts or to set aside the Governor’s Executive Order as inconsistent with the IPLRA.

The Unions’ hypothetical, well-pleaded claim for breach of contract would not present a federal question. See Minn. Elevator, Inc. v. Imperial Elevator Servs., 758 F. Supp. 2d 533, 537 (N.D. Ill. 2010) (elements of a breach of contract claim under Illinois law). The issue whether provisions of the contract are unconstitutional would be raised, if at all, only as a defense to the state-law breach-of-contract claim. See Employers Ins. of Wausau v. Titan Int’l, Inc., 400 F.3d 486, 900 (7th Cir. 2005) (illegality of the contract is an affirmative defense under Illinois law); Am. Buyers Club of Mt. Vernon, Ill. Inc. v. Grayling, 368 N.E.2d 1057, 1059 (5th Dist. 1977); see also Narkiewicz-Laine v. Scandinavian Airlines Sys., 587 F. Supp. 2d 888, 890 (N.D. Ill. 2008) (“Plaintiff brought state-law breach of contract claims. Because the conditions and limits of the Montreal Convention are defenses to the state-law claims raised by plaintiff, they do not provide a basis for federal-question subject matter jurisdiction.”).

Nor would a hypothetical, well-pleaded claim by the Unions to set aside the Executive Order as contrary to the IPLRA present a federal question. The IPLRA states on its face that it prevails over executive orders, 5 ILCS 315/15(a), and state statutes are presumed to be constitutional, see People v. Garcia, 770 N.E.2d 208, 209 (Ill. 2002). An argument that the fair-share provisions of the IPLRA are not valid would be raised, if at all, only as a defense to the Unions’ claim.

* Standing

State officials lack standing to challenge the constitutionality of state law in federal court where the officials are not personally adversely affected – that is, where their interest is official, rather than personal. For example, in Smith v. Indiana, 191 U.S. 138 (1903), a county auditor brought an action alleging that a state property tax statute was unconstitutional. The Supreme Court dismissed the appeal, reasoning that:

    the jurisdiction of this court . . . can only be invoked by a party having a personal interest in the litigation. It follows that he cannot sue out a writ of error in behalf of third persons. . . . It is evident that the auditor had no personal interest in the litigation. He had certain duties as a public officer to perform. The performance of those duties was of no personal benefit to him. Their nonperformance was equally so. He neither gained nor lost anything by invoking the advice of the supreme court [of Indiana] as to the proper action he should take. He was testing the constitutionality of the law purely in the interest of third persons, viz., the taxpayers. . . . We think the interest of an appellant in this court should be a personal, and not an official, interest.

The Seventh Circuit, in D’Amico v. Schweiker, 698 F.2d 903 (7th Cir. 1983), similarly “dismissed for want of standing a suit brought by administrative law judges of the Social Security Administration who were complaining that a directive by their superiors required them to decide social security cases in a manner contrary to law,” because “they did not suggest that compliance with the directive would reduce their pay or benefits or increase their work or anything of the sort.” Cronson v. Clark, 810 F.2d 662, 664 (7th Cir. 1987) (discussing D’Amico). D’Amico determined that “these administrative law judges . . . are the wrong people to be raising with us the question whether the challenged instruction is lawful.” D’Amico, 698 F.2d at 906; see also Finch v. Miss. St. Med. Ass’n, 585 F.2d 765, 774 (5th Cir. 1978) (Governor of Mississippi lacked standing to challenge constitutionality of state law).

Here, the Governor’s complaint does not identify any personal interest in this case sufficient to confer standing. The Governor is not personally subject to a fair-share requirement. Indeed, Governor Rauner is not even a party to the collective bargaining agreements with the defendant Unions; they were entered into by a state agency. See Complaint ¶ 14. Nor would the Governor receive any additional money if he prevailed in this litigation. The complaint, instead, alleges that this litigation is an exercise of the Governor’s “duty to protect the First Aendment rights . . . of all people in the State of Illinois,” and his desire not to “violat[e] his oath of office.” Complaint ¶ 84. But those are classic “official[] interest[s]” long held to be insufficient to confer standing. Smith, 191 U.S. at 149. […]

The Governor cannot confer standing upon himself to challenge the constitutionality of state law by issuing Executive Order 15-13 to instruct his subordinates to disobey the IPLRA. See D’Amico, 698 F.2d at 906 (“[I]f administrative law judges do not have standing to bring such a suit they cannot confer it on themselves, bootstrap fashion, by disobeying the instruction and then complaining that their disobedience laid them open to discipline.”). The Governor is free to rescind his Executive Order at any time. In essence, “[t]he mental disposition of the Governor is all that gives him cause to complain; were he to change his mind tomorrow and decide, rightly or wrongly, that the state statute is valid, he would no longer have any interest in the case. He has no personal stake in the outcome of this case; he will not be affected favorably by a decision that the statute is unconstitutional nor adversely by a decision that it is valid.”

* Failure to state a claim

Even if the Court has jurisdiction, the complaint still must be dismissed for failure to state a claim. The complaint seeks a declaration that “[t]he Fair Share Contract Provisions under the IPLRA are unconstitutional under the First Amendment.” Complaint at 21. At the same time, the complaint accurately states that “[i]n Abood v. Detroit Board of Education, 431 U.S. 209 (1977), the United States Supreme Court considered and approved ‘fair share’ provisions under a public sector labor contract.” Complaint ¶ 71. That concession is fatal to the request that fair share provisions be declared unconstitutional. “If a precedent of [the Supreme] Court has direct application in a case,” the obligation of a lower court is to “follow the case which directly controls, leaving to [the Supreme] Court the prerogative of overruling its own decisions.” Rodriguez de Quijas v. Shearson/American Express, Inc., 490 U.S. 477, 484 (1989). There is no question that Abood squarely held that fair share agreements are constitutional “insofar as the service charge is used to finance expenditures by the Union for the purposes of collective bargaining, contract administration, and grievance adjustment.” 431 U.S. at 225-26. And just recently, the Supreme Court refused to even consider the “argument that Abood should be overruled.” Harris v. Quinn

The governor’s office replied by reiterating yesterday’s comment about the state fair share lawsuit.

  37 Comments      


Question of the day

Friday, Mar 6, 2015 - Posted by Rich Miller

* From the twitters…


* The Question: Caption?

  67 Comments      


Today’s long read

Friday, Mar 6, 2015 - Posted by Rich Miller

* AP

The Illinois Kids Count 2015 report, also released Thursday, found 21 percent of the state’s children were living below the federal poverty line in 2013 — a rate that held steady from the previous year.

The report’s authors say the rate remains higher than prerecession figures, blaming long-term economic issues for prolonging the problem. Meanwhile, they say deep cuts proposed by Rauner during his budget address last month would be “very harmful.” Areas of concern identified by the group include more changes to the state’s already underfunded child care program and Medicaid cuts that could close hospitals. […]

The report from Voices for Illinois Children cites the effects past cuts to state funding have had on programs intended to mitigate the effects of poverty. Joseph warned that possible future cuts would only exacerbate problems for low-income families.

“If they’re not below the poverty level now, it would make it more likely they would slip into poverty,” he said.

Click here to read the full report.

  20 Comments      


CeaseFire funding eliminated

Friday, Mar 6, 2015 - Posted by Rich Miller

* From a 2009 study of the state’s CeaseFire program

CeaseFire’s interventions are “theory driven.” The program is built upon a coherent theory of behavior that specifies how change agents could be mobilized to address some of the immediate causes of violence: norms regarding violence, on-the-spot decision making by individuals at risk of triggering violence, and the perceived risks and costs of involvement in violence among the targeted population. Some of the program’s core concepts and strategies were adapted from the public health field, which has shown considerable success in addressing issues such as smoking, seat belt use, condom use, and immunization.

The evaluation of CeaseFire had both process and outcome components. The process portion of the project involved documenting how the program actually looked in the field. This included issues involved in selecting target neighborhoods, choosing local host organizations, and staffing, training, and management practices. The outcome evaluation used statistical models, crime hot spot maps and gang network analyses to assess the program’s impact on shootings and killings in selected CeaseFire sites. In each case, changes in the target areas after the introduction of the program were contrasted with trends in matched comparison areas. […]

An examination of the impact of CeaseFire on shootings and killings found that violence was down by one measure or another in most of the areas that were examined in detail. Crime mapping found decreases in the size and intensity of shooting hot spots due to the program in more than half of the sites. There were significant shifts in gang homicide patterns in most of these areas due to the program, including declines in gang involvement in homicide and retaliatory killings.

Even so, the program has its detractors. Its funding has always been controversial in the General Assembly, and Mayor Emanuel eliminated its million dollar grant in 2013. Also, the study’s authors admit that some of the crime declines might not be due to CeaseFire’s activities.

* Which brings us to this story

CeaseFire, the highly regarded but sometimes controversial anti-violence program featured in the documentary “The Interrupters,” is losing state funding, the result of Gov. Bruce Rauner’s executive order freezing spending.

The program was budgeted to receive $4.7 million from the state in fiscal 2015, which ends June 30, according to Rauner’s proposed budget for fiscal 2016. The Rauner administration has proposed slashing CeaseFire’s funding almost 60 percent, to $1.9 million, in fiscal 2016. […]

CeaseFire was notified yesterday that its funding was suspended, effective immediately, in a letter sent by John Maki, executive director of the Illinois Criminal Justice Information Authority, which administers the grant. The letter blamed the Illinois Legislature, saying it did not appropriate enough money for the program.

Maki was the former executive director of the John Howard Association of Illinois, a prison reform group, before his appointment by Rauner. Maki did not return a call requesting comment.

In his email, Arthur said CeaseFire will work to restore the state funding but was politic in asking supporters to refrain from “any attacks toward the governor and his administration.”

  20 Comments      


Credit unions serve as not-for-profit cooperatives; Banks elect Subchapter S to avoid taxes

Friday, Mar 6, 2015 - Posted by Advertising Department

[The following is a paid advertisement.]

Credit unions were first exempted from federal income tax in 1917 because of their unique structure as not-for-profit financial cooperatives. Contrary to what some banks may suggest, credit unions pay property, payroll, and sales taxes.

Yet while banks decry the credit union tax exemption, nearly 40 percent of banks in Illinois elect Subchapter S status under the Internal Revenue Code to avoid federal income taxation. That’s $59 million in diverted tax dollars. These for-profit Sub-S banks also pay dividends and fees — not to customers, but to directors/investors/stockholders who may or may not be depositors — to the tune of more than $1.3 billion. This is far in excess of the estimated federal income tax credit unions would pay.

In contrast, credit unions return net revenue to their members. The banker argument against the credit union tax exemption is simply disingenuous. If banks really believed that credit unions operate with an unfair competitive advantage, they would restructure their institutions to credit union charters. None would, however, because doing so would expose them to becoming democratically controlled, locally-owned financial cooperatives governed by their very own volunteer members that put people before profits — all the virtues that define the credit union difference.

  Comments Off      


The consequences of cuts

Friday, Mar 6, 2015 - Posted by Rich Miller

* The Tribune has a story today about Gov. Bruce Rauner’s proposed elimination of DCFS responsibility for 2,400 state wards over the age of 18

The state became Annie Audenas’ substitute parent in the mid-1990s after Illinois child welfare officials said they found evidence of neglect in her family and placed the infant in protective custody.

Audenas was adopted by age 3 but the arrangement soured during her rebellious teen years and she returned to state care. She attended five high schools and became a mother, all by the age of 16.

Despite the odds, Audenas is now a 20-year-old college student working toward a degree in human resource management while raising her daughter in Naperville and holding down a part-time job. She credits Illinois’ long-standing practice of supporting older foster youth for a few extra years beyond age 18 with helping her to succeed.

But, under proposed cuts to the Department of Children and Family Services, thousands of older state wards for whom Illinois failed to find permanent homes before they aged out of foster care will be forced to fend for themselves. […]

But service providers, juvenile court officials and other advocates say the governor’s plan would require statutory changes to state laws that recognize the rights of wards up to 21. And watchdog groups who monitor DCFS’s foster care services under legal consent decrees vowed to go back to court if the aging out population isn’t protected.

Illinois pioneered this program and about half of all states now do the same. Go read the whole thing.

* We’ll close this with a quote from acting DCFS Director George Sheldon

“It’s hard to take issue with the governor’s decision on the budget when there are no good places to cut, particularly when you’re dealing with the kids we serve,” he said.

No good places to cut? Really? And all along I thought Rauner believed “Waste, fraud and abuse are endemic throughout the state.” Turns out, not so much, unless you consider this program to be “waste.”

  79 Comments      


Measure twice, cut once

Friday, Mar 6, 2015 - Posted by Rich Miller

* Finke

Democrats on a Senate budgeting committee criticized Gov. Bruce Rauner’s administration Thursday for what they said are excessive salaries being paid to Rauner staffers.

The criticism came as the Senate Appropriations Committee reviewed Rauner’s budget request for next year, which the administration said would cut spending by 10 percent.

Sen. Dan Kotowski, D-Park Ridge, singled out the $198,000 salary being paid to Trey Childress, Rauner’s deputy governor. Kotowski said it was substantially more than was previously paid.

“That’s an obscene amount of money,” Kotowski said.

* But perhaps Koto should’ve done a little bit of research first. Erickson reports

Republican lawmakers came to Rauner’s defense, saying Democratic legislative leaders also pay their top aides comparable salaries. Tim Mapes, chief of staff to House Speaker Michael Madigan, for example, earned $193,500 in 2014. David Gross, who is Senate President John Cullerton’s top aide, makes $179,000.

State Sen. Chapin Rose, R-Mahomet, said Democrats shouldn’t be critical of Rauner after they pushed through a faulty budget last year that is now threatening to cut off funds for child care providers and a host of other programs.

“Here’s the deal: The hypocrisy is so thick you could cut it with a knife,” Rose said. “The hypocrisy is extreme.”

So Mapes makes more than Rauner’s chief of staff, and almost the same “obscene” amount as Rauner’s deputy governor, with Gross not far behind.

  61 Comments      


*** UPDATED x1 *** Oil train derails near river confluence

Friday, Mar 6, 2015 - Posted by Rich Miller

* Oy

A freight train loaded with crude oil derailed in northern Illinois, bursting into flames and prompting officials to suggest that everyone with 1 mile evacuate, authorities said.

The BNSF Railway train derailed Thursday afternoon in a rural area where the Galena River meets the Mississippi, according to company spokesman Andy Williams. The train had 103 cars loaded with crude oil, along with two buffer cars loaded with sand. A cause for the derailment hadn’t yet been determined. No injuries were reported. […]

Firefighters could only access the derailment site by a bike path, said Galena Assistant Fire Chief Bob Conley. They attempted to fight a small fire at the scene but were unable to stop the flames.

Firefighters had to pull back for safety reasons and were allowing the fire to burn itself out, Conley said. In addition to Galena firefighters, emergency and hazardous material responders from Iowa and Wisconsin were at the scene.

* More

The company says the train’s tank cars were a newer model known as the 1232. That model was designed during safety upgrades voluntarily adopted by the industry four years ago. The improvements were meant to prevent cars from rupturing in the event of derailments.

But 1232 standard cars involved in three other accidents have split open in the past year, leading some to call for tougher requirements.

* From the governor’s office…

Governor Rauner today activated the State Incident Response Center (SIRC) in Springfield to ensure state personnel and equipment are ready to be quickly deployed if needed to help local emergency responders deal with a crude oil train derailment and subsequent fire that occurred this afternoon near Galena in Jo Daviess County.

Governor Rauner also deployed staff from the Illinois Emergency Management Agency (IEMA) and the Illinois Environmental Protection Agency (IEPA) to the scene.

“I activated the State Incident Response Center to ensure we’re ready to act quickly if any local responders need our assistance,” said Governor Rauner.

Representatives from several state agencies are reporting to the SIRC, including IEMA, IEPA, Illinois State Police, Illinois Department of Transportation, Illinois Commerce Commission, Illinois Department of Natural Resources, Illinois National Guard, Illinois Department of Central Management Services, Illinois Department of Public Health, Illinois Department of Human Services, Illinois Department on Aging, Illinois Department of Corrections, Office of the State Fire Marshal and the American Red Cross.

The SIRC will remain activated as long as necessary.

Updates from the governor’s office will be posted here.

* From the twitters…


*** UPDATE *** The governor has proposed some steep cuts to the Illinois Emergency Management Agency, which handles crises like this one. Among the proposed cuts are to local responder training (56.7 percent), recovery and remediation (83.9 percent), operations, (20.15 percent) and equipment (4.4 percent). Click here for the list.

  57 Comments      


« NEWER POSTS PREVIOUS POSTS »
* Isabel’s afternoon roundup
* Indiana's super-sweet Bears offer
* It’s just a bill
* Catching up with the congressionals
* Jackson endorsement mess takes a turn for the worse on Stratton (Updated x3)
* WIU forced to borrow from its foundation to ease cash flow shortage
* C'mon
* Yeah, no
* Unprecedented independent expenditures in state races
* Showcasing The Retailers Who Make Illinois Work
* Isabel’s morning briefing
* Good morning!
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
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* Live coverage
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